telephone industries of pakistan internship report minhas

95
INTERNSHIP REPORT TELEPHONE INDUSTRIES OF PAKISTAN Submitted By Haider Ali Minhas REG.No.MBA-HRP-2201 Supervised By Sir. Mehfooz Ali Department of Management Sciences Hazara University Haripur Campus, 2010-2012

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TRANSCRIPT

Page 1: Telephone Industries of Pakistan Internship Report Minhas

INTERNSHIP REPORT

TELEPHONE INDUSTRIES OF PAKISTAN

Submitted By

Haider Ali Minhas

REGNoMBA-HRP-2201

Supervised By

Sir Mehfooz Ali

Department of Management Sciences

Hazara University Haripur Campus 2010-2012

TELEPHONE INDUSTRIES OF PAKISTAN

(PERSONNAL amp ADMINISTRATION DEPARTMENT)

Started 8082012

INTERNSHIP REPORT

Specialization Human Resource Management

Supervised By Mehfooz Ali

Submitted to

Department of Business Administration

Submitted by

Name Haider Ali Minhas

Roll 2201-HRP

Registration REGNoMBA-HRP-2201

Email Address haiderminhasgmailcom

Mailing Address House No1919 Mohallah Ramzani Haripur

Contact +923465615580

Date of Submission

INTERNSHIP TIP HAIDER ALI MINHAS

2

INTERNSHIP REPORT

ON

Telephone Industries Of Pakistan HaripurAPPROVAL SHEET

I certify that i have read this internship report on rdquo Telephone Industries

Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work

meets the criteria for approving a internship report in partial fulfillment of

the requirement for the MBA at Hazara University

SUPERVISED BY

Name MAHFOOZ ALI

Signature

Designation Lecturer Haripur University

DEPATMENT OF MANAGEMENT SCIENCESHAZARA UNIVERSITY HARIPUR CAMPUS

INTERNSHIP TIP HAIDER ALI MINHAS

3

CERTIFICATE OF INTERNSHIP TRAINING

INTERNSHIP TIP HAIDER ALI MINHAS

4

ContentsAPPROVAL SHEET3

DEPATMENT OF MANAGEMENT SCIENCES3

CERTIFICATE OF INTERNSHIP TRAINING4

ldquoACKNOWLEDGEMENTrdquo8

DEDICATION9

EXECUTIVE SUMMARY10

Chapter 113

Objective Of The Internship13

Background Of Study13

Purpose Of Study14

Scope of study14

Methodology of the report15

Scheme of the Report16

Chapter Two17

Telephone industries of pakistan17

History of TIP17

Mission18

vision19

Ceo message19

Organizational structure of TIP19

TOP MANAGEMENT21

Nature of Organization21

Services provided by TIP21

General Product Division22

Digital Switching Unit23

Branches or Offices23

Code of Ethics-24

Dress Code-24

Timing and Attendance-24

INTERNSHIP TIP HAIDER ALI MINHAS

5

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 2: Telephone Industries of Pakistan Internship Report Minhas

TELEPHONE INDUSTRIES OF PAKISTAN

(PERSONNAL amp ADMINISTRATION DEPARTMENT)

Started 8082012

INTERNSHIP REPORT

Specialization Human Resource Management

Supervised By Mehfooz Ali

Submitted to

Department of Business Administration

Submitted by

Name Haider Ali Minhas

Roll 2201-HRP

Registration REGNoMBA-HRP-2201

Email Address haiderminhasgmailcom

Mailing Address House No1919 Mohallah Ramzani Haripur

Contact +923465615580

Date of Submission

INTERNSHIP TIP HAIDER ALI MINHAS

2

INTERNSHIP REPORT

ON

Telephone Industries Of Pakistan HaripurAPPROVAL SHEET

I certify that i have read this internship report on rdquo Telephone Industries

Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work

meets the criteria for approving a internship report in partial fulfillment of

the requirement for the MBA at Hazara University

SUPERVISED BY

Name MAHFOOZ ALI

Signature

Designation Lecturer Haripur University

DEPATMENT OF MANAGEMENT SCIENCESHAZARA UNIVERSITY HARIPUR CAMPUS

INTERNSHIP TIP HAIDER ALI MINHAS

3

CERTIFICATE OF INTERNSHIP TRAINING

INTERNSHIP TIP HAIDER ALI MINHAS

4

ContentsAPPROVAL SHEET3

DEPATMENT OF MANAGEMENT SCIENCES3

CERTIFICATE OF INTERNSHIP TRAINING4

ldquoACKNOWLEDGEMENTrdquo8

DEDICATION9

EXECUTIVE SUMMARY10

Chapter 113

Objective Of The Internship13

Background Of Study13

Purpose Of Study14

Scope of study14

Methodology of the report15

Scheme of the Report16

Chapter Two17

Telephone industries of pakistan17

History of TIP17

Mission18

vision19

Ceo message19

Organizational structure of TIP19

TOP MANAGEMENT21

Nature of Organization21

Services provided by TIP21

General Product Division22

Digital Switching Unit23

Branches or Offices23

Code of Ethics-24

Dress Code-24

Timing and Attendance-24

INTERNSHIP TIP HAIDER ALI MINHAS

5

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 3: Telephone Industries of Pakistan Internship Report Minhas

INTERNSHIP REPORT

ON

Telephone Industries Of Pakistan HaripurAPPROVAL SHEET

I certify that i have read this internship report on rdquo Telephone Industries

Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work

meets the criteria for approving a internship report in partial fulfillment of

the requirement for the MBA at Hazara University

SUPERVISED BY

Name MAHFOOZ ALI

Signature

Designation Lecturer Haripur University

DEPATMENT OF MANAGEMENT SCIENCESHAZARA UNIVERSITY HARIPUR CAMPUS

INTERNSHIP TIP HAIDER ALI MINHAS

3

CERTIFICATE OF INTERNSHIP TRAINING

INTERNSHIP TIP HAIDER ALI MINHAS

4

ContentsAPPROVAL SHEET3

DEPATMENT OF MANAGEMENT SCIENCES3

CERTIFICATE OF INTERNSHIP TRAINING4

ldquoACKNOWLEDGEMENTrdquo8

DEDICATION9

EXECUTIVE SUMMARY10

Chapter 113

Objective Of The Internship13

Background Of Study13

Purpose Of Study14

Scope of study14

Methodology of the report15

Scheme of the Report16

Chapter Two17

Telephone industries of pakistan17

History of TIP17

Mission18

vision19

Ceo message19

Organizational structure of TIP19

TOP MANAGEMENT21

Nature of Organization21

Services provided by TIP21

General Product Division22

Digital Switching Unit23

Branches or Offices23

Code of Ethics-24

Dress Code-24

Timing and Attendance-24

INTERNSHIP TIP HAIDER ALI MINHAS

5

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 4: Telephone Industries of Pakistan Internship Report Minhas

CERTIFICATE OF INTERNSHIP TRAINING

INTERNSHIP TIP HAIDER ALI MINHAS

4

ContentsAPPROVAL SHEET3

DEPATMENT OF MANAGEMENT SCIENCES3

CERTIFICATE OF INTERNSHIP TRAINING4

ldquoACKNOWLEDGEMENTrdquo8

DEDICATION9

EXECUTIVE SUMMARY10

Chapter 113

Objective Of The Internship13

Background Of Study13

Purpose Of Study14

Scope of study14

Methodology of the report15

Scheme of the Report16

Chapter Two17

Telephone industries of pakistan17

History of TIP17

Mission18

vision19

Ceo message19

Organizational structure of TIP19

TOP MANAGEMENT21

Nature of Organization21

Services provided by TIP21

General Product Division22

Digital Switching Unit23

Branches or Offices23

Code of Ethics-24

Dress Code-24

Timing and Attendance-24

INTERNSHIP TIP HAIDER ALI MINHAS

5

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 5: Telephone Industries of Pakistan Internship Report Minhas

ContentsAPPROVAL SHEET3

DEPATMENT OF MANAGEMENT SCIENCES3

CERTIFICATE OF INTERNSHIP TRAINING4

ldquoACKNOWLEDGEMENTrdquo8

DEDICATION9

EXECUTIVE SUMMARY10

Chapter 113

Objective Of The Internship13

Background Of Study13

Purpose Of Study14

Scope of study14

Methodology of the report15

Scheme of the Report16

Chapter Two17

Telephone industries of pakistan17

History of TIP17

Mission18

vision19

Ceo message19

Organizational structure of TIP19

TOP MANAGEMENT21

Nature of Organization21

Services provided by TIP21

General Product Division22

Digital Switching Unit23

Branches or Offices23

Code of Ethics-24

Dress Code-24

Timing and Attendance-24

INTERNSHIP TIP HAIDER ALI MINHAS

5

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 6: Telephone Industries of Pakistan Internship Report Minhas

Finance amp Personal Division25

Chapter three27

Personal and Administration Department (HRM)27

Human Resource Department34

Recruitment and Selection37

The Selection Process39

Training and Development41

Compensation and Benefits42

Retirement Of Employees44

Disciplinary Policy44

Social Security and Welfare Fund44

CAREER PLANNING CELL45

Career Planning45

Performance appraisal45

Performance appraisal process46

FUNCTIONS OF PERSONNEL DEPTT47

PERSONNEL (HR) DEPARTMENT FUNCTIONs47

Maintenance of personnel files47

Correspondence47

Pay Scale and Fixation48

PENSION AND WELFARE SECTION48

Welfare Section48

Functions of Welfare Section48

PENSION SECTION49

Chapter No 450

SWOT ANALYSIS OF TIP50

STRENGTHS50

WEAKNESSES51

OPPORTUNITIES51

THREATS52

CRITICAL ANALYSIS53

LACK OF MOTIVATION53

INTERNSHIP TIP HAIDER ALI MINHAS

6

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 7: Telephone Industries of Pakistan Internship Report Minhas

LACK OF JOB ANALYSIS AND EVALUATION54

FINANCIAL ANALYSIS54

OBSERVATION FINDINGS AND RECOMMENDATION55

Main Findings55

OBSERVATION56

RECOMMENDATION57

CONCLUSION64

BIBLOGRAPHYError Bookmark not defined

PLAGIARISM REPORT 67

INTERNSHIP TIP HAIDER ALI MINHAS

7

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 8: Telephone Industries of Pakistan Internship Report Minhas

ldquoACKNOWLEDGEMENTrdquo

ldquoIn the Name of Allah most Merciful and most Beneficent rsquorsquo

First and foremost I would like to express my thanks to God because of His love and strength that He has given to me to finish this logbook as my internship report I do thank for His blessings to my daily life good health healthy mind and good ideasThis internship report is important to fullfill part of the programme criteria that is a requirement to fulfill the masters Program in management sciences with telephone industries of pakistan I thank to those who have supported me to perform the job training up to carrying out this report In scripting this report i was guided by my experience knowledge and interest in the specialization field ldquoHRMrdquo

Hereby I want to give my special thanks to

Sir Mehfooz - excellence in supervision and devotion to inspired during my intership Without his untiring assistance direction encouragement comments suggestions continuous guidance support ideas and constructive criticism throughout this internship this internship program could not be well

Teachers - my beloved lecturers for their kindness advice knowledge patience and time to teachings to be more confident person that I am going to use in work world

Friends - Special thanks to all my friends for sharing their experiences time and commitment especially during finishing this internship program I am grateful because I have a lot of friends were helps and support me throughout the course of completing the internship program

INTERNSHIP TIP HAIDER ALI MINHAS

8

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 9: Telephone Industries of Pakistan Internship Report Minhas

DEDICATION

I dedicate this report to my parents who always loved me to my teachers who have been my source of inspiration my siblings and finally my friends who have always supported and encouraged me in my endeavourrsquos amp all those who have soft corner for me in their hearts

INTERNSHIP TIP HAIDER ALI MINHAS

9

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 10: Telephone Industries of Pakistan Internship Report Minhas

EXECUTIVE SUMMARY

TIP was established to meet the requirements of Telecommunication Switching Equipment of

the country Itrsquos aim is to plan produce install test and commission the telephone exchanges

and supply telephone instruments

Telephone Industries of Pakistan Haripur is the result of the efforts done to promote and

spread telecommunication in the country and to minimize the dependence on foreign

countries The industry was established in 1953 in collaboration with SIEMENS Germany at

Haripur Hazara (KPK) and since its establishments it has contributed alot to the development

of telecommunication in the country

This internship report on the Telephone Industries of Pakistan (TIP) Haripur is written to fulfill

the requirements of MBA course The reports cover all the departments of the TIP but focuses

mainly on the Personnal amp Administration Department ( PampA )

TIP have machinery for the production of many different products but most of this machinery

is technologically old and needs extra time and efforts for production Due to this reason its

cost of goods sold is increasing which has resulted in the decrease in its profitTelephone

industries of Pakistan has huge production capacity but it has never produced at its full capacity

due to which its per unit cost is high The financial position of the TIP is not sound enough all

the indicators like liquidity profitability and the solvency are showing the bad financial position

of the TIP

TIP has been involved in research and development (R amp D ) but the organization has never

been able to capture so much capable resources (human amp physical) to introduce the best

quality products at the cheaper rates Personnel department of the telephone industries of

Pakistan has got some very devoted and skilled employees and workers but they are not

sufficient enough to meet the demands of such a large organization therefore it is very

difficult for the organization to employ its limited staff on new the development projects The

managers at the top and middle level are not controlling the employees efficiently and have

INTERNSHIP TIP HAIDER ALI MINHAS

10

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 11: Telephone Industries of Pakistan Internship Report Minhas

developed a culture in which there is no motivation and role modeling of the superiors and no

share of the subordinates in the Decision Making process

Following recommendations are given to improve the performance of TIP

There is need for Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become profitable for the

organization This is necessary for the long-term survival of the organization and for decreasing

long term marginal cost

Telephone industries of Pakistan are unable to take all the orders from Pakistan

Telecommunication Company Limited Now PTCL purchases its products by calling tenders or

quotations in which TIP participates as a member Many a time TIP is unable to receive the

orders because the other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order from its sister

concern PTCLIn the downsizing operation a lot of loyal and skilled workers and engineers left

the organization TIP should try to retain the remaining skilled and devoted employees and

workers because the workers are the most powerful asset of any organization and at difficult

times the organization needs the people who are more committed and loyal to the

organization

TIP should also change its organizational culture The existing culture in which there is no

motivation no job rotation and employees development should be changed for a better

culture in which there should be good and effective communication motivation and feedback

for the employees It is necessary for the betterment of the organization for the achievement

of the organizational goals for the reduction of cost and expenses and for increasing the

efficiency of the workers and profit as well TIP should show the actual and fair picture of its

financial statements according to the rules and regulations of International Accounting

Standards It should also show all the necessary information in which the stakeholders are

interested

Telephone Industries of Pakistan totally depended upon only one buyer ie PTCL and sold all of

INTERNSHIP TIP HAIDER ALI MINHAS

11

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 12: Telephone Industries of Pakistan Internship Report Minhas

its products on it This is not good policy and TIP has suffered a lot because of it TIP should

expand its business beyond PTCL and should try to find out new markets for its productsFor

expanding the market it is necessary for Telephone Industries of Pakistan to evolve effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

12

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 13: Telephone Industries of Pakistan Internship Report Minhas

Chapter 1

Objective Of The Internship

Management students are always required to undergo the internship program of six to eight

weeks in national or an international organization So it is the academic requirement to justify

the MBA program Being the student of Business Administration it was an essential need to

undergo any organization for the internship program of required given period It is the better

for any student to join any well known organization to enhance hisher knowledge skills and

attitudes Thatrsquos why I decided to join the well reputed organization that is TIP (Telephone

industries of Pakistan) that makes the fruit full for me as HR manager in the future The

Telephone Industries of Pakistan (TIP) Haripur-Hazara

The present report is about this factory the TIP It is based mainly on a six

weeks Internship in TIP

Background Of Study

At the time of independence Pakistan had almost no industries and

infrastructure The economy was mainly dependent on agriculture but this

sector was also underdeveloped and was using the old techniques which

were time consuming and less productive Due to these and many other

reasons the development of industrial sector has remained the top priority

of all the governments

Industries of Pakistan (TIP) established in 1952 as a private limited company

in the public sector to produce telecommunication equipment in Pakistan in

Haripur Hazara in the province of Khyber Pakhtoonkhwa (KPK) This was

one of the largest factories of Pakistan with diverse production facilities but

INTERNSHIP TIP HAIDER ALI MINHAS

13

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 14: Telephone Industries of Pakistan Internship Report Minhas

the management of TIP could never be efficient enough to utilize the

resources up to their full extent So the industry which emerged as a great

asset of Khyber Pakhtoonkhwa could not contribute its due share to the

economy and general well-being of the province and the country

The company is a joint venture of Pakistan Telecommunication Company

Limited (PTCL) and Siemens GermanyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are

nominated by the Government of Pakistan while 2-members are nominated

by MS Siemens AG Germany The administrative responsibility rests with

the Federal Ministry of Science amp Technology Government of Pakistan TIP is

a complex with more than 800 employees amp workers The factory is built on

total area of about 150000 sq meters having covered area of nearly 63000

sq meters comprising of 5-buildingblocksThe present authorized Capital of

the Company is Rs1000 million 70 shares held by PTCL and 30 by

Siemens AG Germany

Purpose Of Study

Purpose of the study was to convert the knowledge gained in the internship into theoretical

form

This study attempts to

Provide an overview of the TIP

Analyze TIP management structuresystem

Analyze Tip Personnal amp Administration Department

Appraise the organizations performance

Recommend policies measures for making the organization more

viable

INTERNSHIP TIP HAIDER ALI MINHAS

14

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 15: Telephone Industries of Pakistan Internship Report Minhas

Scope of study

This work is an effort to introduce the Telephone Industries of Pakistan in

terms of its recent and past performance This can be very useful for those

interested in knowing about the organization in terms of its history and

performance

The performance has further been analyzed by using different techniques

This analysis gives a true picture of the organization and shows its strengths

and weaknesses The people interested in this organization can make a true

image of the organization in their mind by reading it It can also be helpful

for the management of TIP who can easily know about their strengths and

weaknesses

The opportunities for the organization and the threats it faces have also

been discussed and these have been used to make the recommendations for

the improvement of the performance These recommendations can be very

helpful for the top managers of the organization to remove the defects and

to improve the performance

Methodology of the report

Data can be collected in the various ways which are as follow

Primary data

Secondary data

The report is based on my six weeks internship program in TIP of Pakistan

The methodology reported for collection of data is secondary data The main

source of information is my personal observation during work with staff and

having discussion with them

INTERNSHIP TIP HAIDER ALI MINHAS

15

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 16: Telephone Industries of Pakistan Internship Report Minhas

Following secondary sources for data collection have been used for this report

Brochures

Companyrsquos orientation manual

Factorys Articles and Memorandum of Association

Internship Reports and assignments written on TIP in the past

Internet

Scheme of the Report

The scheme of the report is in such a way that

Chapter One

Gives brief objectives of reportbackground purpose scope methodology amp

scheme

Chapter Two

Gives an overview of the organizational structure of TIP

Chapter Three

Is about Personal and Administration Department ( Human Resource

Management ) About its functions amp strategies followed by the TIP

Chapter Four

Critical Analysis amp feasible and constructive recommendations for

different departments of TIP

INTERNSHIP TIP HAIDER ALI MINHAS

16

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 17: Telephone Industries of Pakistan Internship Report Minhas

Chapter 2Telephone industries of pakistan

History of TIP

TIP Located at Haripur Hazara (Khyber Pakhtoonkhwa) 80 kilometers north-

west of Islamabad Telephone Industries of Pakistan (Private) Limited (TIP) was

incorporated as a private limited company in 1952 with joint venture of

Pakistan Telecommunication Corporation and German vendor Siemens to

produce telecommunication equipment in Pakistan with the agreement of SIEMENS AG ( German

word AG means Aktiengesellschaft (Aktien = stockshares) Gesellschaft = Company)

After that it started its work very efficiently The main functions of the company are to plan

produce install test and commission Telephone Exchanges and supply other allied

telecommunication equipment including telephone instruments Other different products like

Energy Meters Container Shells Fire Alarm and Drop Wire etc The company is currently

engaged in manufacturing and sale of Telephone Sets Telephone

Exchanges and associated equipment Energy Meters and providing services

for setting up and commissioning of exchanges

INTERNSHIP TIP HAIDER ALI MINHAS

17

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 18: Telephone Industries of Pakistan Internship Report Minhas

From the year 1987 an agreement was signed with SIEMENS to induct new technology of digital

exchanges and latest models of telephones Thus both the partners made additional investment

of sizeable amount at the time of TIP formulation the authorized capital was Rs600 million

Now it has risen to Rs1000 million the foundation stone of industry lay by Governor General of

Pakistan Mr Ghulam Muhammad on 2nd October 1952 in a colorful ceremony This small

factory of 1952 has now grown into a technological complex with more more than 800

employees and workers

The installed capacity of the factory during 1954-55 was only 7000 line units and same number

of telephone sets which has now increased to 500000 Digital Exchange line units (EWSD) and

450000 telephone sets

Telephone Industries of Pakistan an ISO certified company the only local

manufacturing company in telecommunication sector in the real sense As a

contributory to PTCL it is engaged in providing state-of-the-art

manufacturing and installation services for last 50 years Its contribution

towards the growth of telecommunication in the country is most significant

Even today when more multinational companies have entered into telecom

sector its contribution is 50 to the total installed network of PTCL It is

equipped with state of the art technologies and unmatchable product

quality

The Authorized Capital of the company as on 2003 is Rs 1000 million

whereas the issued subscribed and paid up capital is Rs 759753 million

There are two shareholders of the telephone industries of Pakistan Pakistan

Telecommunication Company Limited (PTCL) and Siemens AG of Germany

with 70 and 30 shareholdings respectivelyThe management is vested in a Board

of Directors having 8-members including the Chairman Six members are nominated by the

Government of Pakistan while 2-members are nominated by Siemens AG Germany The

administrative responsibility rests with the Federal Ministry of Science amp Technology

Government of Pakistan

INTERNSHIP TIP HAIDER ALI MINHAS

18

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 19: Telephone Industries of Pakistan Internship Report Minhas

TIP is a complex comprising of 1500 employees amp workers The factory is built on total area of

about 150000 sq meters It has5-building blocks which has covered the area of nearly 63000

sq It is situated at a beautiful amp green valley of Haripur-Hazara ldquoThe city of Nurseriesrdquo which is

located 78-KM north west of Islamabad the capital and 4 km towards east of Abbottabad ldquoThe

city of Pinerdquo

Mission

A leading Telecomm Manufacturer that deliver quality technology and service which exceed

our customers expectations We provide our customers a One-stop manufacturing solution for

quick turn-around high quality and cost competitive Electronic Mechanical and Electro-

mechanical components and assemblies by using our own extensive variety of manufacturing

resources a one of the most qualified rapidly expanding manufacturing source in Pakistan

vision

To provide industry-leading products and services based on our expertise based on our in-

depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955

Ceo message

We will work to ensure a greater understanding by key stakeholders for innovative telecomm

manufacturing and other TIP Products We will continue our contributions to finding new

solution in the telecomm sector and other sectors of manufacturing

Organizational structure of TIP

The administrative responsibility of TIP lies under the federal ministry of science and

technology After the reformation of the recent past TIP has been divided into three major

INTERNSHIP TIP HAIDER ALI MINHAS

19

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 20: Telephone Industries of Pakistan Internship Report Minhas

subdivisions ie General products (GP) division Digital Switching (DS) division Finance and

Personnel (FampP) division

INTERNSHIP TIP HAIDER ALI MINHAS

20

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 21: Telephone Industries of Pakistan Internship Report Minhas

INTERNSHIP TIP HAIDER ALI MINHAS

21

BOARD OF DIRECTORS

MD

General Manager Finance

DGM Finance Corporate amp DS

DGM Finance

DGM (MP)

DGM (ELECTRONICE)

DGM PROCUREMENT

P amp A

AGM (SampS)

MANAGER TRAINING

MANAGER STORE

MANAGER QAD

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 22: Telephone Industries of Pakistan Internship Report Minhas

Managing Director

DGM Internal Audit

GM Production GM Finance GM PA amp P GM Marketing

TOP MANAGEMENT

Nature of Organization

Telephone Industry Pakistan is a well known amp distinguished industry of its own nature in the

South East Asia region in the field of producing telephone and other equipment such as energy

meters tool designing and tool making sundry products etc This industry (TIP) has a key role

to the development in the field of Telecommunication Although China has captured the whole

market but yet it cannot compete with TIP especially in telephone sets it telephone sets are

very durable thatrsquos why its demand is more as compare to any other company We can

Services provided by TIP

TIP only provides services for installation and commissioning of exchanges

Division as in terms of UnitDepartment

The beautiful building of TIP has been divided into following groups or departments

A Finance Department

The finance department deals with the purchases and sales receipts and payments and the

income and expenditures etc

INTERNSHIP TIP HAIDER ALI MINHAS

22

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 23: Telephone Industries of Pakistan Internship Report Minhas

B Personal or Human Resource department

The personnel department deals with the employees and workers recruitment to

retirement policy that includes the selection placement training and development Salaries

and wages and the welfare policies among the many others The basic purpose of both

divisions is to run an organization most successfully

General Product Division

General product division (GPD) has its own general Manager under whose supervision all the

departments work In this division energy meters telephone sets drop wires and other

products (excluding digital switching) are made The General manager works under the

supervision of the Managing Director and the board of directors and controls the whole

division

This division is organized in such a manner that it has own Finance Department to fulfill all its

financial needs The Finance department of this division provides funds Salaries wages and

other allowances are also paid to workers and employees by this department Other

departments in General product division include sales and services planning procurement and

store production personnel and administration and the Quality Assurance

The sales of this department mainly depend on the production and sale of telephone sets Drop

wires and energy meters Personnel section keeps track of the activities of the staff in the

department and handles different administrative matters related to the department This

department also controls annual reports of employee welfare activities and the record related

to medical facilities

The sales and services department of General Product Division makes arrangements for the

sales of the goods produced by the production department The quality of the products

produced by the production department is checked and controlled by Quality assurance

Department

INTERNSHIP TIP HAIDER ALI MINHAS

23

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 24: Telephone Industries of Pakistan Internship Report Minhas

Digital Switching Unit

Digital switching division has significant role in the development of the telephone industry of

Pakistan This division produces the digital telephone Exchanges that include both permanent

and the containerized exchanges This division is control by General Manager as the head of the

division who works under the Managing Director

This division is further divided into different departments such as

Sales and Services department which handles all matters related to the purchase and

sale of the digital exchanges

The planning procurement and store department decided about what and when to

produce And what procedure will be use to produce the product most efficiently

Production department handles matters related to production operation

Quality assurance deportment assures that production is according to the standards

The Personnel department handles matters related to the human resources while the

finances

Finance department provided needed finance to the all these departments and

controlled the finance

Branches or Offices

The branches or offices of TIP have a wide range all over the Pakistan In well known places

which is a good marketing tool ie

Head Office

Head office of TIP is in Haripur Hazara

Regional Offices

Karachi 5th Floor Farid chamber Abdullah Haroon road Sadar

Islamabad Plot No 181 ndash 186 Sector 19 industrial area

INTERNSHIP TIP HAIDER ALI MINHAS

24

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 25: Telephone Industries of Pakistan Internship Report Minhas

Lahore TIP House 40- Abu Bakker Block New Garden Town

Code of Ethics-Because the right may not always be obvious we must be guided in our every action by a set of

well-defined values governing our decision

So the employees of TIP are order to abide the rules which are restricted and obey the law full

orders and directions given by the management

Dress Code

a For Employees and Workers

All the Employees are order to wear neat and clean dress There is no any hard and fast rule for

dressing but not unethical But it is necessary to wear white color overhaul and their ID card

should be attach on their overhaul

b For Managers and Executives

No any formal dress id necessary for the managers and executives but the dress which shows

seniority respect like shalwar suit with waistcoat or pent coat suit (2-3 piece suits)

Timing and Attendance

The timingthe whole schedule for the day is like that

Starting Time 0600 am

Closing Time 0200 pm

Lunch Break 1100 am ndash 1130 am

INTERNSHIP TIP HAIDER ALI MINHAS

25

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 26: Telephone Industries of Pakistan Internship Report Minhas

Finance amp Personal Division

Finances or the monetary resources and personnel or the human resources are the most

important assets and resources of any business without which the existence of an organization

is impossible In the Telephone Industries of Pakistan therefore there is a separate division for

handling the financial and human problems The basic aim of this division is to monitor and

control the actions and to make certain the smooth operations of the other two divisions (ie

the GP and DS divisions)The finance department deals with the purchases and sales receipts

and payments and the income and expenditures etc The personnel department deals with the

employees and workers recruitment to retirement policy which includes the selection and

placement guidance and development salaries and wages and the welfare policies among the

many others

INTERNSHIP TIP HAIDER ALI MINHAS

26

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 27: Telephone Industries of Pakistan Internship Report Minhas

MANAGEMENT STRUCTURE HUMAN RESOURSE DEPARTMENT (P amp A)

INTERNSHIP TIP HAIDER ALI MINHAS

27

General Manager PA amp P

DGM PampAExecutive Personne

l GP

Executive Personne

l DS

Executive Personne

l FampP

DGM Procurement

Executive Procureme

nt GP

Executive Procureme

nt DS

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 28: Telephone Industries of Pakistan Internship Report Minhas

Chapter 3Personal and Administration Department (HRM)

The personnel section of TIP is concerned with the planning organizing directing and

controlling of the recruitment and selection development compensation maintenance and

separation of human resources to accomplish organizational as well as individual objectives

The personnel section deals with the policies and procedures of personnel selection while

administration section deal day-to-day operationalization of personnel policies

Personnel section make policies for the selection of personnel therefore job description is the

main for the administration work there are graduate engineers which are the main

requirement of the TIP for clerical job TIP require matriculates of scale-5 The procedures for

selection so simple in which applications are send to the administrative officer who put them in

the specified categories to make them feasible for interview purposes They issue letter to the

candidate then selection committee sits for the selection of their own departmentrsquos jobs

Normally the selection committee consists of the head of departments After selection the

candidate is sent for medical examination If he has cleared that test physically they send him

to the superintendent of police for verification Finally the candidate is capable for the job

therefore on appointment letter with all of the details about work salarywages and other

necessary briefings is send to him that appointment letter must be approved by the General

Manager of Telephone Industries of Pakistan Whenever any department wants any staff then

administrative officer call the explanations from that department about that vacancy and then

advertised it in newspapers The grade-17 employees are selected on the all Pakistan basis

Personnel section not only make policies for selections but it also define disciplinary procedures

for TIP when a manrsquos character is not according to the codes of conduct or either he

misconduct then the TIP takes the disciplinary actions against himher West Pakistan

Industrial and commercial Employment ordinance of 1968-15 (3) deals with the disciplinary

procedures Misconduct in following acts

INTERNSHIP TIP HAIDER ALI MINHAS

28

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 29: Telephone Industries of Pakistan Internship Report Minhas

i Willful in subordination or disobedience to a lawful and reasonable order of a superior

ii Theft fraud or dishonesty in connection with the employeersquos business or property

iii Wilful damageloss of employerrsquos goodsproperty

iv Taking or giving bribe or any illegal gratification

v Habitual absence with leave or absence without leave for the more than ten days

vi Habitual late attendance

vii Striking or insisting others to strike etc

The method of action against these grievances depends upon these three necessary witnesses

a) The time of that misconduct

b) The date of that misconduct

c) The place of that misconduct

The inquiry officer gives him a charge sheet At first time it is only mentioned that on such

date place amp times you do this misconduct etc And informed him to follow the procedures

otherwise they will be punished or reported to the concern department The inquiry officer is

not responsible or allowed to punish but simply forward the report along with his remarks that

what or not the charges against a man have proved the final decision about punishment is only

taken by the General Manager The main or extreme punishment is dismissing but others are

as follows

a) With holding of increment or promotion for a specified period not exceeding more than

one year

b) Reduction to lower post or distiller without any payment of compensation without any

notice

The procedure for any of the above punishment is as follows

They write a letter to the concerned man about above punishment whichever is

applicable on himher

The dismissal letter s only issued with the approval of competent authority

The personnel and administration section also deal with promotional policy and

procedures

The promotions made on the basis of

INTERNSHIP TIP HAIDER ALI MINHAS

29

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 30: Telephone Industries of Pakistan Internship Report Minhas

Seniority cum fitness

Length of services prescribed

Shouldering of high responsibility

Availability of a higher post

If there is no higher post available but a man is eligible for the promotion then ldquoup gradationrdquo

is given to him by it we mean that the grade not the post in increased with all the facilities of

that higher grade is given to that man

At the age of 60 years department bring a notice to the General Manager that he will be

retired The general Manager issues a letter of retirement to that man In case of death of any

worker TIP sends a letter of sympathy to his family and always pays the insurance as soon as

possible

A man on job also takes leaves for different occasions There is well-defined system about the

leave eg a man hired on job at 18-12-1998 and at the date of 18-07-2002 he want leave for

210 days from 19-7-2001 If he can attend 16 days of month than he get 4 leaves month If a

man wants leave from 31-07-2001 to 01-08-2001 then the four 4 leaves of the next month will

be dismissedThe compensation programme of TIP consists of two type of compensation

a) Direct compensation including salary and wages

b) Indirect compensation comprises of number of schemes the payroll section of finance

and personnel department deals with direct compensation

The TIP offered following indirect compensation to its employees including

Medical

TiP provides free medical facility to its employees For this purpose there is 40 bed hospital

situated in colony Serving this hospital 10 doctors including three specialists and nearly 75 Para

medical staff The hospital contains all facilities such as X-ray laboratories to carryout

blood urine etc The hospital also caters emergency room in the factory premises with

A dispensary also well equipped ambulances In the cases where outside treatment is

necessary refer is also allowed

INTERNSHIP TIP HAIDER ALI MINHAS

30

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 31: Telephone Industries of Pakistan Internship Report Minhas

Accommodation

TiP allows accommodation to married persons

Workers employees are living within 12 Km are not entitled for accommodation

The accommodation is allowed according to entitlement of employees

1 BPS UPTO 10 HG

2 BPS UPTO 15 GF

3 BPS UPTO 16 EF

4 BPS EDC 17 AND ABOVE

20 quotas of each type available are also allowed to General Manager for entitlement

Retirement gift

The retiring persons of grade 1 to 15 on retirement are allowed a gift of Rs 2000 etc

Education grant

TiP employees workers room grade 1 to 15 are allowed education grant The said grant is

allowed to the students of class 8th and above

Education cess

Apart from the above the TIP is contributing towards Govt education cess and a large no of

employees are benefited in the scheme

Daughter marriages

The factory is allowing an interest free loan of Rs 10000 on daughter marriages of employees

once in service and recovered in easy installments

child birth

The factory is paying Rs 1000 for birth of a child where the medical bill is not allowed

INTERNSHIP TIP HAIDER ALI MINHAS

31

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 32: Telephone Industries of Pakistan Internship Report Minhas

Hajj

The factory is sending 4 persons to perform Hajj every year They are chosen by ballot from

different categories

Welfare fund

The welfare fund is kept in the welfare budget for allowing financial assistants to the law paid

employees The fund is distributed by committee

Funeral expenses

The factory is allowing Rs 1400-as funeral expenses on the death of an employeeworker

Arrangement is also made for transportation of dead body of the deceased to his home town

Special allowance

Special allowance of Rs 38 is allowed to the workers who are working in the workshop and

Rs 17 whose are in officesworkes working in hazardous shops are also allowed payment for

milk butter and fruit on attendance basis

Canteen

A canteen inside the factory premises is maintained under the factory rules 1962The canteen is

being runner by subsidy basis Rs 45000 is being paid as subsidy to the canteen on monthly

basis

Provision stores

The factory is maintaining a provision store in the colony where groceries are sold on no

profit no loss basis

Fair price shop

Affair price shop is maintained on no profit no loss basis

Uniform

TiP is allowing uniform to different categories of employees

INTERNSHIP TIP HAIDER ALI MINHAS

32

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 33: Telephone Industries of Pakistan Internship Report Minhas

Housing scheme

TiP has own housing society for its employees and plots of one canal 107 5 marlaare allowed

to employees through ballot system

Social security

Under the provision of social security ordnance 1965 all employees whose wages are unto

Rs3000pmincluding allowances are covered irrespective of their designation status or nature

of work

Group insurance

Group insurance is a mandatory requirement under standing order 10-B and workers

employees are covered during employment for death and disability Coverage Rs100000

and premium for the insurance of Rs100000is being paid by the TiP

Workmen compensation

Under workmen compensation act 1923amended up to date all the workmen are covered for

Rs 100000 for death and disability coverage during duty hours and in case if some accident

accord then he is being paid accident compensation on the basis of assessment of loss of

earning capacity by a surgeon

EOBI

EOBI act 1976 is a legal requirement It is enforced WEF All the staff from BPS1 to 20 including

contractual staff is covered under this act minimum contribution is 5 of the basic payment

and maximum contribution is Rs 150 Per month Retirement benefit is maximum Rs 1440per

month

INTERNSHIP TIP HAIDER ALI MINHAS

33

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 34: Telephone Industries of Pakistan Internship Report Minhas

TIP ORGANIZATION CHART

HUMAN RESOURCE DEPARTMENT ORGANIZATIONAL CHART

INTERNSHIP TIP HAIDER ALI MINHAS

34

Vice President

ManagerCompensation amp benefit

Recruiter HRIS analyst

Employment Manager

Compensation analyst Benefit

specialist

Training and Development

Manager

Career development

specialist trainer

Employee relation manager

ER specialist safety

specialist

MD

MANAGER P amp A

ASMANAGERWELFARE UNITS

EXECUTIVE P amp A

SEN ASSISTANTP amp A

KPO ASSISTANTP amp A

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 35: Telephone Industries of Pakistan Internship Report Minhas

Human Resource Department

ADMINISTRATION

Administration is process of organizing directing human resources with In an organization so

that to meet defined objective there are following main function performance by

administration departments

Planing

Organizing

Staffing

Leading

Controlling

It is the duty of administration to establish and maintain an environment for performance that

individual will contribute to group objective with least cost in money time effort and material

discomfort to create a surplus value or profit

This department is the like a backbone of any organizationbecause this department manage all

the organization

After the initial plan for the establishment of an organization is ready to use there is a need of

the skilled and unskilled men for the implementation of these plans The Human Resource

Department therefore is the back bone of every organization which is needed to administer

and control the affairs of the most important asset of the organization ie the human beings

The personnel or the human resource management existed in the organizations of the past but

it was not organized as a proper department The department was formally established as the

Health and Happiness Department which aimed at the general well being of the employees It

then became the personnel department and now-a-days it is generally called the Human

Resource Department

The department of the present times has a broad area of responsibilities and it deals with the

affairs of the human resources from their recruitment selection and placement in the

organization to the salaries benefits and the retirement

INTERNSHIP TIP HAIDER ALI MINHAS

35

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 36: Telephone Industries of Pakistan Internship Report Minhas

The personnel section of TIP is concerned with the management of human resources ie the

recruitment and selection training and development compensation and benefits and the

Maintenance of human resources to accomplish organizational as well as individual objectives

Different functions performed by the Human Resource Department are

PEROSNNEL

Personnel refer to those individuals who are employee of organization an each individual has

some needs which he has to satisfy So to handle all activities regarding administration and

personnel TIP has an A amp P department

FUNCTION OF A amp P

MAINTAIN PERSONAL FILES

It is duty of A amp P to maintain files of all employees In these information and whole bio data

could be formed in this department

PROMOTIONS AND TERMINATION

A amp P also deals with

Promotion

Termination

Suspension

Passport

ACR PREPARATION

This department also prepares annual confidential report of all employees

ARC consists of following section

INTERNSHIP TIP HAIDER ALI MINHAS

36

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 37: Telephone Industries of Pakistan Internship Report Minhas

Bio data information

Performance evaluation

Personality profile

Recommendation pen picture

Instruction for countersigned officer

INQUIRY CELL

A amp P Include an inquiry cell which makes investigation in case of any fraud theft and

disobedient or any interruption occur in the organization functioned operation

STAFFING

When every some staff is required in organization this department calls for application and

select then for interviewing Those candidates who fulfill requirements are selected for a

specific job

The personnel department of TIP is concerned with the management of human resources that

is ie the recruitment and selection training and development compensation and benefits and

the maintenance of human resources to accomplish organizational as well as individual

objectives

The personnel section deals primarily with the policies and procedural work The administration

section on the other deals with the day-to-day implementation of personnel policies Different

function perform by the personnel and administration department are

Recruitment and Selection

Training and Development

Computer Training

Apprentice ship Training

Compensation and Benefit

Disciplinary Policy

Payroll and Pay Structure

INTERNSHIP TIP HAIDER ALI MINHAS

37

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 38: Telephone Industries of Pakistan Internship Report Minhas

Recruitment and Selection

Being a manufacturing concern TIP mostly needs the services of engineers or the factory

workersThe procedure for the selection of the clerical staff and the factory workers is simple

and no lengthy procedures for the recruitment and selection are followed It is usually done on

the basis of the recommendation or referring of some existing employee The basic

qualifications needed for such candidates is SSC or intermediate The selection of the workers

and employees up to grade 15 is done inside the concerned division while the grade 16 and

above people are dealt in the central PampA Division The process that often TIP adopted is follow

Two types of recruitment procedures are used in the organization

1External

2Internal

1 External

External recruitment concerns recruitment from outside the organization This method can

facilitate the introduction of new ideas and thinking into corporate decision making Two

methods of external recruitment at TIP are

i Advertising

Majority of advertising is done through newspapers TIP uses both local newspapers and

national renowned newspapers The ads are mostly of simple classified category(as per

annexure B)

Advertising is also done through the internet But it is limited to the site of TIP only The other

websites for ads are not used

ii Head hunting

INTERNSHIP TIP HAIDER ALI MINHAS

38

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 39: Telephone Industries of Pakistan Internship Report Minhas

Head hunting method of recruitment is used only when therersquos urgency for hiring of new

employees This type of recruitment method is mostly used in case of unexpected initiation of

some project or program by the organization ie this method is most frequently used for

project-based employment

2 Internal

Internal recruiting seeks applicants for positions from among the ranks of those currently

employed in the organization The main source of internal recruiting at TIP is the interns

working currently with TIP

After publishing the ads in the newspapers CVs of the applicants start coming in This process is

continued till the deadline of collecting CVs is met The CVs collected after the deadline are kept

in the data bank but are not considered for including in the list of applicants These CVs can be

later used in case of immediate requirement of candidates for a job

A panel of experts for the relevant job is made The duty of this panel is to short list the CVs

The procedure for short listing the CVs can be given as follows

1 A short listing criteria form prepared by the HR department is given to the panel of the

relevant job experts

2 According to the information given in the CVs the short listing criteria forms are filled by

the panel when they go through each and every CV

3 These CVs (both short listed and the rejected ones) are returned to the HR department

along with the forms which provide the reasons for acceptance or rejection of each CV

4 The short listed CVs are separated from the rejected CVs by the HR department and the

selection process begins from here

INTERNSHIP TIP HAIDER ALI MINHAS

39

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 40: Telephone Industries of Pakistan Internship Report Minhas

The Selection Process

An interview panel is required in order to conduct interviews of the candidates whose CVs are

selected in the short listings A panel may contain more than three members but may not have

less than three members These members are

1 1One person from the relevant program

2 2One person from the HR department

3 3One person (acts as neutral) and can be taken from any department

a Responsibilities of the Interview Panel

The duty and responsibilities of this panel are

1 1To decide who will conduct the interviews

2 2To find out when all the members of the interview panel would be available

3 3On which date should the interviews be conducted

After fulfilling the duties mentioned above the candidates selected for interviews are

informed through letters and also through a telephonic call

b Interviews

Before the interview of candidates a Pre-employment form is filled by the applicants through

which certain information is collected This information may include

References

Copy of CV

Copy of NIC

Personal address

Previous organization

Previous employer and his contact number etc

INTERNSHIP TIP HAIDER ALI MINHAS

40

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 41: Telephone Industries of Pakistan Internship Report Minhas

After filling the forms the candidates are given a written test according to the job and are then

interviewed During the interview an assessment form is provided to each member of the

panel conducting the interview These forms are filled for each interviewee by each member of

the panel At the end of each assessment form a separate section for the comments of

interviewers is also given in which the interviewers write their recommendations about each

interviewee The assessment forms have scoring sectors in which scores are given by each

member of the panel through personal observation of the interviewee At the end of interview

of each interviewee HR personnel prepares a summary for each candidate based on the

assessment forms collected from all the members of the panel These assessment forms are

then submitted to the HR personnel by all the members in the interview panel

After conducting interviews of all the candidate a ranked list is prepared that contains the

names of the candidates who have scored the highest scores This list is signed by all the

members of the interview panel

The list is then sent to the Managing Director along with certain details such as

How much of time was consumed in interviewing the candidates

Names of the members of interview panel

Assessment forms

Reference check process starts once the Managing Director approves the list of the selected

candidates This is done with the help of references given in the Pre-Employment forms Usually

previous employers of the candidates are contacted but it is already known to the candidates If

the feedback given by the previous employer sounds unbiased and unsatisfactory then other

references such as that of previous colleagues are used

Sometimes if required the Pre-employment forms are sent back to the selected candidates for

getting more references

After getting information through different references once it is made sure that the candidate

is appropriate for the organization and is acceptable salary is negotiated with himher by the

HR manager through a telephonic conversation with the candidate (During the interview

INTERNSHIP TIP HAIDER ALI MINHAS

41

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 42: Telephone Industries of Pakistan Internship Report Minhas

salary range is asked which is finalized after the selection of candidate) Negotiation takes place

before final hiring of the candidate After going through all this process an offer letter is

prepared

c Offer Letter

The offer letter contains a welcome note regarding the selection of the candidate and joining

the organization It also contains information about the salary and the date for joining TIP The

offer letters are then posted on the obtained addresses for calling the candidates in order to

make them join the organizationOnce the candidates receive offer letters they are called to

the office in order to fill some forms and for getting some information regarding different issues

such as staff benefits candidatesrsquo dependents etc

After joining TIP a detailed contract is issued to the selected candidates which includes all

information regarding the benefits terms and conditions of employment

Training and Development

For the workers and employees under grade 16 there is no specific time limit set for the

training and development Usually the first three-month of the employment are considered as

the training period in which the person is attached with the experienced people of the

concerned department in which they have to work The other factors which are considered for

the training are the need of training and the time available for it Keeping in view these factors

the training period can be shortened or extended

1TYPES OF TRAINING

Internal Training

Arranged inside TIP by the training Department through internal resources

External Training

INTERNSHIP TIP HAIDER ALI MINHAS

42

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 43: Telephone Industries of Pakistan Internship Report Minhas

Arranged outside TIP through different training institutions both government and private by PA

Department on the request of heads of the Departments

Following training programs are offered in TIP

1 APPRENTICESHIP PROGRAMS

2 COMPUTER TRAINING

b IDENTIFICATION OF TRAINING

A training need arises when

Hiring a new employee

Promotion

Introduction of new system technology

Rotation of jobsemployees

The training needs will be identified by the respective heads of the departments through

assessing the employee by observing his work to notice any lack in skill or deficiency found due

to rotation of employeespromotion to next higher rankNon conformities detected in process

during internally quality auditDepartmental Heads will identify the specific training needs of

their staff foe basic advanced and refresher courses and pass it on to training department for

internal training and PA Department for the external training

Compensation and Benefits

The compensation program of TIP consists of two type of compensations ie

1 Direct Compensation

2 Indirect Compensation

INTERNSHIP TIP HAIDER ALI MINHAS

43

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 44: Telephone Industries of Pakistan Internship Report Minhas

Direct compensation includes salary and wages of the employees and the

workers The payroll section of finance and personnel department deals with direct

compensation The salaries and wages are awarded on the basis of the Basic Pay Scale- 2001

Indirect compensation comprise of a number of schemes usually called the benefits The

payroll section of personnel and administration section is directly involved in indirect

compensation

TIP offers following indirect compensationsbenefits to its employees

Medical facilities

Education

Recreation facilities

Housing facility

Group insurance

Workmen compensation

Special allowances

PROMOTION

The personnel and administration section also deal with promotional policy and procedures

The promotion is made on the basis of

Seniority

Length of service prescribed

Shouldering capability of high responsibility

Availability of a Higher post

If there is no higher post available but an employee is eligible for the promotion then

the Move-over is given to him meaning that the grade not the post is increased and

all the facilities of that higher grade are given to that employee

INTERNSHIP TIP HAIDER ALI MINHAS

44

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 45: Telephone Industries of Pakistan Internship Report Minhas

Retirement Of Employees

P amp A department keep the record of the employees service which include the date of birth

joining and the retirement dates of the workers and employees As an employee reaches the

age of 60 the department brings a notice to the General Manager that how many employees

arc near the retirement age GM then issues the retirement letter

In case of death of any worker TIP sends a letter of sympathy to his family and always 5 the

insurance as soon as possible

Disciplinary Policy

Personnel section not only makes policies for selections but it also defines disciplinary educes

for TIP When a mans character is not according 10 the codes of conduct then TIP takes the

disciplinary actions against himher property

Social Security and Welfare Fund

SOCIAL SECURITY

Under the provision of Social Security Ordinance 1965 all employeesworkers whose wages arc

up to Rs3000- per month (inclusive of all allowances) are covered irrespective of their

designation status or nature of work An employee once covered remains forever even if

subsequently his monthly wages exceed Rs3000- per month Contribution shall not be payable

on wages which are in excess of Rs 3000- per month

WELFARE FUND

The welfare fund is kept in the welfare fund budget for allowing financial assistance to the low

paid employeesworkers There is a committee to distribute this fund The fund allowed to a

person who remains on leave without pay due to illness or due to family problems The welfare

fund is also allowed in medical cases for purchase of medicines which are not covered under

INTERNSHIP TIP HAIDER ALI MINHAS

45

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 46: Telephone Industries of Pakistan Internship Report Minhas

the medical rules and are deducted from the bill of employeesworkers The committee

consists of Chief Engineer (production) Executive Personnel and Executive Administration

CAREER PLANNING CELL

Career Planning Cell attained independent status in 1992 Before it was the Personnel

department dealing in

Career Planning

Career planning is basically career orientation and career development Career planning section

is under the control of personnel manager It informs the employees of TIP about their future

planning That what he performs his duty and also they prescribed to the employees their

operational set up It informs the employees that what they will do after 5 years And 10 years

Promotion is main figure of career planning section The elaboration is as under-

The promotion and recruitment criteria of the corporation was notified vide O MNAA 0103-

15 dated 12 November 1984 where after a few clarifications were also issued from time to

time However there have been some problems in application of the promotion criteria in

some cases Therefore to remove these difficulties the promotion criteria has been reviewed

and revised under the guidance of the executive directors

The revised promotion criteria are notified herewith which shall be effective from first July

1991

Performance appraisal

Yearly performance reviews are critical Organizations are hard pressed to find good reasons

why they canrsquot dedicate an hour long meeting once a year to ensure the mutual needs of the

employee and organization are being met Performance review help supervisors feel more

honest in their relation ship with their subordinates and feel better about themselves in their

supervisor roles Subordinates are assured clear understanding of what expected from them

their own personal strengths and areas for development and a solid sense of their relationship

INTERNSHIP TIP HAIDER ALI MINHAS

46

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 47: Telephone Industries of Pakistan Internship Report Minhas

with their supervisor Avoiding performance issues ultimately decrease morale decrease

credibility of management decreases the organizations overall effectiveness and wastes more

of managementrsquos time to do what isnrsquot being done properly

The scoring system is also having a major impact on effective performance appraisals The

accuracy and reliability of any scoring system increases with full descriptionsdefinitions and

better still with examples for each score band This gives everyone the same objective scientific

reference points and reduces subjectivity

Performance appraisal process

The performance appraisal process typically consists of four related steps as follows

Establish a common understanding between the manager (evaluator) and employee

(evaluate) regarding work expectations mainly the work to be accomplished and how

the work is to be evaluated

Ongoing assessment of performance and the progress against work expectation

Provisions should be made for the regular feedback of information to clarify and modify

the goals and expectations to correct un acceptable performance before it was too late

and to reward superior performance with proper praise and reorganization

Formal documentation of performance through the completion of a performance and

development appraisal form appropriate to the job family

The formal performance and development appraisal discussion based on the completed

appraisal form and ending in the construction of a development plan

All the departments at TIP are enforce to follow following performance rating

Outstanding 05

Very Good 20

Normal 50

Marginal 20

Poor 05

INTERNSHIP TIP HAIDER ALI MINHAS

47

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 48: Telephone Industries of Pakistan Internship Report Minhas

FUNCTIONS OF PERSONNEL DEPARTMENT

1 Maintenance of service record of employees from their induction to retirement and

beyond

2 Transfers ndashPostings

3 Maintenance of seniority

4 Handling of Personnel grievances

5 Processing of Pension EOBI and retirement cases

6 Implementation of Managementrsquos agreementrsquos after every two yearrsquos duration

7 Maintenance of Database-Computerization

8 Responses to Senate National Assembly Questions Other Government Agencies

PERSONNEL (HR) DEPARTMENT FUNCTIONs

Maintenance of personnel files

As we have mentioned above that every section is related to the concerned department So

whenever any new employees recruit TIP the concerned section maintained this personnel

record from the first day Every employee have their own personal file in personnel

department

Correspondence

The personnel department also maintained the record of each employee for promotion the

minimum time for promotion is five years So at the end of every year they check the record of

each employee his ACR (Annual Confidential Report) experience qualification etc Similarly if

any employee want to leave more than 48 days which are Official than concerned department

will approval them and send to t6he personnel section In short any type of personal problem

or work will maintain in his personal files with personnel department Itrsquos called

correspondence

INTERNSHIP TIP HAIDER ALI MINHAS

48

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 49: Telephone Industries of Pakistan Internship Report Minhas

Pay Scale and Fixation

It is also the function of personnel department that they fixed the pay scale for employees

There are three types of employees in TIP

1 Executive Group (EGI - EGIII)

2 Staff (1 - 16)

3 Contractual Staff

Recently personnel department has computerized the whole process to reduce the burden

whenever they want any type of data immediately call to computer They have their own

computer section

PENSION AND WELFARE SECTION

Welfare Section

It is just like a bridge between the union and management It is also a proper channel between

the two bodies

Functions of Welfare Section

Various types of functions performed by the welfare section are as under-

To deal with union matters

To provide facilities to the staff members of their families

Grant of house building advance

Conveyance advance to give amount to the staff members after five years in TIP for

conveyance

Distress grant at the time when any staff member die the amount will be given to his wife

Benevolent fund in extra fund by pension ie deducted every monthRs15- by their

income

INTERNSHIP TIP HAIDER ALI MINHAS

49

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 50: Telephone Industries of Pakistan Internship Report Minhas

Similarly large number of facilities they provide to the staff member due to the arrangement

with management The union and management make on agreement after every two years

Welfare section negotiates with union from the management side

PENSION SECTION

Pension was introduced in TIP after 1984 After 10 years in TIP the staff member qualified for

pension and after 25 Years he can demand for pension The super innovation of the pension is

maximum 60 Years After 60 years he can not stay more Accommodation allowance is 50 of

the growth monthly pension supposes that on the age of 25 years of service his pension will be

counted of the 14th scale employee

As a whole it means that TIP will provide pension till 15 years and something After that the

pension allowance will be counted again

INTERNSHIP TIP HAIDER ALI MINHAS

50

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 51: Telephone Industries of Pakistan Internship Report Minhas

Chapter Four SWOT ANALYSIS OF TIP

SWOT analysis is the management technique to measure the organizations strengths

weaknesses opportunities and threats

This analysis helps the organizations management to get the position where the organization is

standing and what will be the future position of the firm

STRENGTHS

TIP is a private limited company in public sector so government can intervene in its financial as

well as managerial problems

Good will is an important resource for any organization and TIP has a well established

good will because of its quality production and brilliant performance records in the

history

TIP is the organization well known for

Its good quality products

Long life of the products and

Easy availability of spare parts

TIP can have an advantage of this established goodwill of its products

TIP has got the advantage of vast technical and infrastructure resources which provide

a good opportunity for its expansion

TIP is equipped with modem technology It can manufacture almost all kind of tools

and machinery of common use

The two shareholders of the company ie Pakistan Telecommunication Corporation

Limited (PTCL) and Siemens AG of Germany are well established organizations with

efficient management and technical staff They can provide managerial and technical

INTERNSHIP TIP HAIDER ALI MINHAS

51

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 52: Telephone Industries of Pakistan Internship Report Minhas

assistance to this firm

WEAKNESSES

TIP has nothing to do with the fraud deductions while an organization is run by the

people and if the management is corrupt than organization nothing can done this is

the big weakness of the TIP is that it is not a privatize organization rather it is a semi

Govt organization

Bureaucratic style of management is a big hurdle in the way of development The

employees are not given a chance to participate in decision-making process which

creates frustration among them

Most of the employees and workers are appointed on contract basis which needs to

be revised after every three months Due to this uncertainty of the job they dont

develop interest in the organization The regular workers on the other hand are very

careless because there is no check on their performance

TIP has been affected badly by the downsizing policy of the government

During VSS (Voluntary Separation Scheme) in 1998 most of the skilled people left

the organization (nearly 1200 employees)

There are also stories absolute corruption of top level management

Red tapism has badly affected the companys performance Even a simple job takes

time to complete because of the formalities and lengthy procedures it has to follow

Labor union of TIP is also ineffective because it doesnt represent all the employees

and the temporary workers are not given participation in the union at all

OPPORTUNITIES

With the introduction of chord less and mobile technologies the conventional

telephone sets are becoming less popular Even in these conventional desk

mounting sets many new features have been introduced TIP can enter these areas

to expand its product line and to capture new markets

INTERNSHIP TIP HAIDER ALI MINHAS

52

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 53: Telephone Industries of Pakistan Internship Report Minhas

TIP has the production facilities available for almost all the electrical appliances as

the energy meters air conditioners ovens refrigerators etc but it is producing

much lesser than its capacity and potential It has an opportunity therefore to

expand its business in these areas

TIP has an opportunity to sell its products in the foreign markets if they are properly

designed and marketed

THREATS

The market share for the production of military telecommunication equipment has

finished due to the establishment of NRTC (National Radio and Telecommunication

Corporation)

PTCL since 1988 has adopted the policy of open bid tenders for the supply of

equipment The foreign companies including SIEMENS participate in tender and

most of the times they remain successful in getting the orders as they offer low

prices

TIP loses tender due to its high cost of production which is a serious threat to the

company

All these foreign companies import installation equipment from their home

countries which affects TIP as its products go unsold

Smuggled goods from China and other countries having latest technology and

beautiful designing at much lower rates and are also posing a threat to the

companys business

Invasion of foreign companies in the field of telecommunication in Pakistan has

adverse effects on the firms business like Z- TEL ALCA TEL

There is working Carrier Telephone Industry in Islamabad is big competitor and big

threat to the TIP

One serious threat to the company is its declining sales due to the bad economic

conditions of country

INTERNSHIP TIP HAIDER ALI MINHAS

53

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 54: Telephone Industries of Pakistan Internship Report Minhas

CRITICAL ANALYSIS

LACK OF MOTIVATION

Motivation Refers To Forces That Energizes direct and sustain a person effort Lack of

appreciation performance appraisal participation in decision making employee counseling

and unequal distribution of work result in greater level of de-motion

Some of the reasons of low motivational level in TIP are

a) CENTRALIZATION OF AUTHORITY

Centralization refers to the situation in which a significant number of job activities and a

maximum amount of authority vested with some hands Centralization in large

organization like TIP affects the duties and responsibilities of manager as his task and

responsibility increases He is unable some time to concentrate on important matters

and operation

b) CEILING EFFECT

Ceiling is another flow which persist and affect the employeesrsquo motivation level for the

job This problem remains in practice even if the staff members undergo training and

acquire some additional qualification They can never be a part of the line hierarchy For

instance an account assistant cannot move upward in the hierarchy whatever

qualification and experience he gets

c) HIRING

The practice of nepotism has also been observed in the appointment of officers An

inappropriate person is appointed to a certain position It adversely effected the quality

of work and evenly the over all performance of TIP This situation becomes worse when

inappropriate individuals are appointed on sensitive post

INTERNSHIP TIP HAIDER ALI MINHAS

54

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 55: Telephone Industries of Pakistan Internship Report Minhas

LACK OF JOB ANALYSIS AND EVALUATION

Considering this case of TIP Job Analysis as will as Evaluation presses in not Practice that result

is unequal distribution de-motivation boredom and burden on some employees among the

same hierarchy of line managers in absence of these no performance appraisal can be given to

specific staff member It is the case in TIP that many of employees suffered because of the

workload and burden

a) NO JOB ROTATION

Job rotation might play a key roll to motivate the employees Job rotation is the process

of moving workers from one job to another job Boy job rotation management can

expand their employeesrsquo current skills knowledge amp abilities Since In TIP job rotation is

missing so that creates boredom among the employees This thing affects the

organization to operate smoothly

b) EMPLOYEES TRAINING

THE training of new and current employees is vital for the successful operation of any

business because training educate the staff members about their worked It guides

employees that how they should work It might helpful to change their attitudes

towards their work In the specific case of TIP training is missing or not done properly

Due to missing the proper training newly employed candidates take log time to

understand the culture of TIP as a result the problems are created

FINANCIAL ANALYSIS

INTERNSHIP TIP HAIDER ALI MINHAS

55

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 56: Telephone Industries of Pakistan Internship Report Minhas

Financial analysis is a distilling process uses a number of ratios and formulas to extract and

interrelate the elements included in financial statements thereby identifying the firmsrsquo strength

and weaknesses In addition it also evaluates the financial performance of the firm Keeping in

view the extensive operations of TIP in different sectors analysis has been made on internal

COMPARATIVE CRITERION INSTEAD OF INDUSTRIAL CRITERIONS If focuses on changes

apparent in the TIP financial circumstances across successive operating periods

Previous year the company has incurred a loss of Rs13 million whereas its accumulated losses

across to Rs1043 million The shareholders equity has been completely in eroded over the

years due to heavy accumulated losses and the net equity as at June 30 2004 Reflects a

negative balance of Rs134 million in these

FINANCIAL STATEMENTS The company is also facing pressure from its key lender National

Bank of Pakistan to improve its equity position so as to qualify for the continuous renewal of

loans under the prudential regulations of State Bank of Pakistan

OBSERVATION FINDINGS AND RECOMMENDATION

Main Findings

The study of the organizational structure systems and the performance of

an organization and then the analysis of its different departments reveal

some important facts about the company These are the facts revealing the

true picture of the organization including all the positive and negative points

on the basis of which the position of the organization is determined and the

management can decide about the future of the organization eg about the

change in the management structure systems and processes etc

This report is also organized on the same patters where the beginning

sections discuss the historical background departmental review and

INTERNSHIP TIP HAIDER ALI MINHAS

56

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 57: Telephone Industries of Pakistan Internship Report Minhas

Pakistan while the current section deals with the Findings and

Recommendations Findings are given on the basis of my personal

observations during my time spent in the Telephone Industries and the

written material reflecting the performance of TIP which I have collected in

this period While Recommendations are based on the analysis and findings

about the organizational performance and are solid points given to overcome

the problems and weaknesses of the organization (TIP)

The analysis of TIP tells that there are some basic problems with the

organizational design human resource RampD and some other departments

which should be removed immediately for the successful working of the

organization The details are given as under

OBSERVATION

By analyzing the different departments of Telephone Industries of Pakistan

for their functions and processes I come across certain facts which are given

below

Telephone industries of Pakistan has huge production capacity but it has

never produced at its full capacity due to which its per unit cost is high TIP

has been involved in research and development but the organization has

never been able to capture so much capable resources (human amp physical)

to introduce the best quality products at cheaper rates

Personnel department of the telephone industries of Pakistan has got some

very devoted and skilled employees and workers but they are not sufficient

enough to meet the demands of such a large organization It is therefore

very difficult for the organization to employ its limited staff on new

development projects

The managers at the top m1d middle level are not controlling the employees

efficiently and have developed a culture in which there is no motivation and

INTERNSHIP TIP HAIDER ALI MINHAS

57

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 58: Telephone Industries of Pakistan Internship Report Minhas

role modeling of the superiors and no share of the subordinates in the

Decision Making process

Telephone industries of Pakistan depend mostly upon only one buyer that is

Pakistan Telecommunication Company Limited and WAPDA and has not sold

its products in open market Tip has never been involved in any type of

marketing activity

The Quality Assurance Department of TIP has remained active in the past

when the RampD was efficiently working but now it has also become inactive

and the rate of defects in the products or their performance have increased

TIP has the machinery for the production for different products but most of this machinery is

technologically old and takes extra time amp efforts to Achieve the required production level Due

to old technology cost of production is increase that affect its profit

Marketing departments are the basic requirement of every Organization in the modern age

But although Telephone Industry of Pakistan is a very big organization but it has not its

marketing department so for TIP has huge production capacity but it has never produced at its

full capacity due to which its per unit cost is high

TIP has not handling well with the fraud cases like the example of recently occurring the sales

of old machinery on a very low price on result of that huge loss born by TIP

There is no contribution of lower level of employees in the decision making process As a result

problem of motivation is created

TIP has research and development department but the organization has never been able to

capture so much capable resources (human ampphysical) introduce the best quality product at

cheaper rate

In the financial statement of TIP it has not disclosed all the fact and figures about profit and

some other important matters

INTERNSHIP TIP HAIDER ALI MINHAS

58

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 59: Telephone Industries of Pakistan Internship Report Minhas

RECOMMENDATION

HANDLING TO MOTIVATIONAL PROBLEM

Considering the case of TIP the motivation process will bring a change in the

employeersquos behavior attitude and willingness toward the job enormously Motivation

is the inner state that causes an individual to behave in a way that ensures the

accomplishment of some goal

Nepotism should be eliminated right job for a right person appraisal for the work

performance and equal opportunity to grow should be regarded as de-motivating

factors if absent

The second part emphasizes on different factors that should be raised and improve for

the motivation of employees For instance employee training and development

appraisal for the performance job rotation equal opportunity of growing equal right

to get the equal opportunity fulfillment of the employee need that very from

individual to individual

Another main factor that will extremely increase the motivation level of employees is

the employee counseling Employee counseling is a process whereby employees are

guide in overcoming performance problem The basic aim behind This is to find out

the reasons of poor performance or unwillingness to work Job satisfaction can be

increase by getting some feedback and counsels for the whole TIP and also for the

specific operation of their own sectiondivision

Performance appraisal will determine the contribution of the employees toward the

organizational objectives If these factors are considered based for the promotion and

INTERNSHIP TIP HAIDER ALI MINHAS

59

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 60: Telephone Industries of Pakistan Internship Report Minhas

rewards TIP management will get higher results in the productivity and motivation

towered the job of the employees that will contribute the overall performance of TIP

EMPLOYEES TRAINING AND DEVELOPMENT

To overcome the problem of employees training and development TIP management

must take into consideration the following steps

Determining the Training needs

Designing the Training program

Administering the Training program

Evaluation the Training programs

The main problem that was observed at TIP is the training evaluation Although huge

amount is spent on the training program but the evolution of the employees is nit

taken into consideration Evaluating refers to the out come of the Training for which it

is made To make the evaluation process more effective the management should

confirm that the training has brought the required changes

As development being a process of future-oriented training that focuses on the

personal growth of the employees top level management should concentrated on the

development of the employees that will also results in higher career development

satisfaction and loyalty toward the job Management should focus on tow main

methods to develop employees

JOB ROTATION

To develop employees to coup with different situation best Feasible way is the

implementation of the job rotation Program horizontally (same bench mark

position)

INTERNSHIP TIP HAIDER ALI MINHAS

60

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 61: Telephone Industries of Pakistan Internship Report Minhas

By this way the employees will expose to new responsibilities which will lower

the boredom routine interaction with their work For the successful

achievement of the goals of organization top management has to take into

Performance level overall TIP also the motivation level devotion to the job and

job satisfaction of employees

ASSISTANTS TO POSITION

The staff members should be given an opportunity to grow with the organization by being

assistant to a well skilled and experienced senior employee to work under his supervision This

will provide the employee the opportunity to handled different non-routine job and exposure

to new tasks and assignments

INTERNEE TRAINING PROGRAM

It has been observed that the traineeintern program is lacking effective planning A well-

planned training program will improve good will of TIP as a helpful organization to the new

generation coming out from different educational institutions Training of Interneestrainees

should be considered as an investment in the future of TIP by the personal and admin section

This will also make easy the job of the recruiting committee of TIP to the already trained

candidates who are also aware of the organization culture of TIP

Downsizing

In the downsizing operation a lot of loyal and skilled workers and engineers

left the organization TIP should try to retain the remaining skilled and

devoted employees and workers because the workers are the most power

full asset of any organization and at difficult times the organization needs

the people who are more committed and loyal to the organization

Research and Development

INTERNSHIP TIP HAIDER ALI MINHAS

61

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 62: Telephone Industries of Pakistan Internship Report Minhas

TIP aims at self-sufficiency and has therefore set-up its own Research and

Development wing This wing has already done considerable work in the

development of new circuits and equipment and in exploring possibilities of

applying new scientific knowledge Various other activities are striving for

the provision of more environmental procedures to manufacture equipment

suitable for the local condition and requirements

Organizational culture

TIP should also change its organizational culture The existing culture in

which there is no motivation no job rotation and employees development

should be changed for a better culture in which there should be good and

effective communication motivation and feedback for the employees It is

necessary for the betterment of the organization for the achievement of the

organizational goals for the reduction of cost and expenses and for

increasing the efficiency of the workers and profit as well

Marketing

Telephone Industries of Pakistan totally depended upon only one buyer ie

PTCL and sold all of its products on it This is not a good policy and TIP has

suffered a lot because of it TIP should expand its business beyond PTCL and

should try to find out new markets for its products

For expanding the market it is necessary for Telephone Industries of

Pakistan to involve in the effective marketing campaign The website

developed by TIP is not meeting to the needs of global world they should try

to provide more information and make it interactive from the customer

point of view Tip was established as a production unit of PTC but after

privatization of PTCL TIP facing order problem due to lack of effective

marketing campaign

INTERNSHIP TIP HAIDER ALI MINHAS

62

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 63: Telephone Industries of Pakistan Internship Report Minhas

Fraud cases ( corruption )TIP should have a proper system to deal with the fraud corruption by the

upper management so that these types of events can never be happen

again As soon as possible TIP should start its on full fledged marketing

department as it is age of marketing and competition

Telephone industries of Pakistan we found that telephone industry of

Pakistan have old machinery and insufficient workers With the passage of

time new technologies are brought in the market and the organizations

which adopt new and better technologies have cost of production much

lower than the other firms having old technologies There is need for

Telephone Industries to install new machinery and overhaul old machinery to

work properly It should also give training to its unskilled workers to become

profitable for the organization This is very necessary for the long term

survival of the organization

Telephone industries of Pakistan are unable to take all the orders from

Pakistan Telecommunication Company Limited Now PTCL purchases its

products by calling tenders or quotations in which TIP participates as a

member Many times TIP remains unable to receive the orders because the

other companies offer their products at lesser rates There is need for TIP to

minimize its cost of goods sold so that it may be able to take all the order

from its sister concern PTCL

COMMUNICATION

Communication is the transfers of information from a sender to a receiver with the information

being understood by the receiver The communication process begins with the sender who

encodes an idea that is sent in oral written visual or some any other form to the receiver The

receiver decodes the message and gains an understanding of what the sender wants to

communicate This in turn may results in some change or action But the communication

process may be interpreted by noise that is by anything that hinders communication In an

organization managers should have the information necessary for doing a good job The

INTERNSHIP TIP HAIDER ALI MINHAS

63

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 64: Telephone Industries of Pakistan Internship Report Minhas

information may flow not only downward or upward in the organization structure but also

horizontally or diagonally Communication can be in written form but more information is

communicated through gestures and facial expressions

Barriers and breakdowns in the communication process hinder communication Understanding

the barriers making a communication audit and applying the guidelines for effective

communicating and listening facilitate not only understanding but also managing Electronic

media can improve communication as illustrated by teleconferencing and the application of

computers two of many approaches to handling the amount of information in the

organizations

PRODUCTIVITYAND OTHER TECHNIQUES AND TOOLS FOR IMPROVEMENTS

Besides operation research there are other techniques Discussed below is the application of

time-event networks value engineering work simplification quality circles total quality

management computer aided design and manufacturing and the manufacturing automation

protocol

TIME EVENT NETWORKS

As discussed in a previous chapter that time even network analysis is a logical extension of the

famous Gantt chart Often referred to as the Program Evaluation and Review Techniques (PERT)

and in its essentials as the Critical Path Method (CPM) this technique of planning and control

has wide potential use in many applications But PERT and its various refinements like

PERTCOST have considerable potential for use in many aspects of planning and controlling

operations

VALUE ENGINEERING

A product can be improve and its cost lowered through value engineering which consists of

analyzing the operations of the product or service estimating the value of each operation and

attempting to improve that operation by trying to keep costs low at each step or part The

following specific steps are suggested

Divide the product into parts and operations

INTERNSHIP TIP HAIDER ALI MINHAS

64

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 65: Telephone Industries of Pakistan Internship Report Minhas

Identify the costs for each part and operation

Identify each part relative contribution value to the final unit or product

Find a new approach for those items which appear to have a high cost and low value

WORK SIMPLIFICATION

Work methods can also be improved through work simplification which is the process of

obtaining the participation of workers in simplifying their work Training sessions are conducted

to each concepts and principles and techniques such as time and motion studies Work flow

analysis and the layout of the work situation

CONCLUSION

Telephone Industry of Pakistan was established in 1952 by Pakistan telegraphy amp telephone

department in partnership with the well known SIEMENS of west Germany to meet the growing

demand of telephone facilities in the country

The factory has RampD department that is helping in the introduction of the advancement of the

technology and changes modification in the running productsResearch and development wing

has already done considerable work in the development of new circuits and equipment and in

exploring possibilities of applying new scientific knowledge The workers are paid according to

their Piece-rate systems which enables to earn according to their efficiency amp skills

TIP created facilities for apprentice training in its premises at a very early stage The normal

period of apprenticeship is 3 year Every candidate is responsible to pass the apprenticeship

with good result This was necessary because the rural area of HAZARA did not offer sufficient

number of technically experiences workers

INTERNSHIP TIP HAIDER ALI MINHAS

65

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 66: Telephone Industries of Pakistan Internship Report Minhas

TIP manufacturing all parts according to the merit system For maintenance

of standards of precision TIP Measuring Laboratory The production process

is started after proper pre-planning by the Production Planning Branch and is

finalized by a strict quality Control The production process itself is carried

out by using means of modern techniques

TIP has qualified staff huge production facilities and vast areas and

opportunities to grow and expand There is need to adopt the suggestions

given in this report if TIP wants to regain its lost strength With the proper

implementation of these suggestions effective control and efficient

management there will be the existence of fair organizational culture the

commitment of workers with the organization will increase resources will be

used efficiently product line will expand market share will increase and all

the resources will prove to be much more profitable than ever before

If all this can be made possible and these precious human and non human

resources are used with vigilance and proper planning TIP can certainly

reach a point where it will be next to no other company in the country and

Pakistan will be among the world leaders in the field of telecommunication

INTERNSHIP TIP HAIDER ALI MINHAS

66

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 67: Telephone Industries of Pakistan Internship Report Minhas

BIBLOGRAPHY

Books And Refrences

1 Annual Report of Telephone Industries of Pakistan for the period 2003-2004

2 Publication of Telephone Industries of Pakistan ldquoAbstract of TIPrdquo

3 Quality Manual ISO 90012000

Internet

httpwwwptclcompk

httpwwwpakistangovpk

httpwwwpakistaneconomistcom

httpwwwzumbeelnetbetanewsdetailsphprev_param=6808

httpwwwtiporgpk

INTERNSHIP TIP HAIDER ALI MINHAS

67

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 68: Telephone Industries of Pakistan Internship Report Minhas

httpwwwalibabacommemberajtiphtml

INTERNSHIP TIP HAIDER ALI MINHAS

68

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 69: Telephone Industries of Pakistan Internship Report Minhas

PLAGIARISM REPORT

INTERNSHIP TIP HAIDER ALI MINHAS

69

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 70: Telephone Industries of Pakistan Internship Report Minhas

INTERNSHIP TIP HAIDER ALI MINHAS

70

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences
Page 71: Telephone Industries of Pakistan Internship Report Minhas

INTERNSHIP TIP HAIDER ALI MINHAS

71

  • APPROVAL SHEET
  • I certify that i have read this internship report on rdquo Telephone Industries Of Pakistan ldquo by Haider Ali Minhas and that in my opinion this work meets the criteria for approving a internship report in partial fulfillment of the requirement for the MBA at Hazara University
    • DEPATMENT OF MANAGEMENT SCIENCES
      • CERTIFICATE OF INTERNSHIP TRAINING
      • ldquoACKNOWLEDGEMENTrdquo
      • DEDICATION
      • EXECUTIVE SUMMARY
      • Objective Of The Internship
      • Background Of Study
      • Purpose Of Study
      • Scope of study
      • Methodology of the report
      • Scheme of the Report
        • Telephone industries of pakistan
          • History of TIP
          • Mission
            • A leading Telecomm Manufacturer that deliver quality technology and service which exceed our customers expectations We provide our customers a One-stop manufacturing solution for quick turn-around high quality and cost competitive Electronic Mechanical and Electro-mechanical components and assemblies by using our own extensive variety of manufacturing resources a one of the most qualified rapidly expanding manufacturing source in Pakistan
              • vision
                • To provide industry-leading products and services based on our expertise based on our in-depth knowledge in Telecomm Manufacturing as TIP is providing services since 1955
                  • Ceo message
                    • We will work to ensure a greater understanding by key stakeholders for innovative telecomm manufacturing and other TIP Products We will continue our contributions to finding new solution in the telecomm sector and other sectors of manufacturing
                      • Organizational structure of TIP
                      • TOP MANAGEMENT
                      • Nature of Organization
                      • Services provided by TIP
                      • General Product Division
                      • Digital Switching Unit
                      • Branches or Offices
                        • Code of Ethics-
                        • Dress Code
                        • Timing and Attendance
                          • Finance amp Personal Division
                          • Personal and Administration Department (HRM)
                          • Recruitment and Selection
                          • The Selection Process
                          • Training and Development
                          • Compensation and Benefits
                          • Retirement Of Employees
                          • Disciplinary Policy
                          • Social Security and Welfare Fund
                          • CAREER PLANNING CELL
                            • Career Planning
                              • Performance appraisal
                              • Performance appraisal process
                              • FUNCTIONS OF PERSONNEL DEPARTMENT
                              • PERSONNEL (HR) DEPARTMENT FUNCTIONs
                                • Maintenance of personnel files
                                • Correspondence
                                • Pay Scale and Fixation
                                  • PENSION AND WELFARE SECTION
                                    • Welfare Section
                                    • Functions of Welfare Section
                                    • PENSION SECTION
                                      • SWOT ANALYSIS OF TIP
                                      • STRENGTHS
                                      • WEAKNESSES
                                      • OPPORTUNITIES
                                      • THREATS
                                      • CRITICAL ANALYSIS
                                      • LACK OF MOTIVATION
                                      • LACK OF JOB ANALYSIS AND EVALUATION
                                      • FINANCIAL ANALYSIS
                                      • OBSERVATION FINDINGS AND RECOMMENDATION
                                      • Main Findings
                                      • OBSERVATION
                                      • RECOMMENDATION
                                      • CONCLUSION
                                      • BIBLOGRAPHY
                                      • Books And Refrences