CompensationManagement& BenefitClass projectSubmitted To: Sir. Abid WaseemGroup Members:Akbar Lakhani 55071Fahad Sahghal 55540M. Sufiyan Saba 54195Khizar Khatri 55588Sufyan Wazir 55380
EXECUTIVE SUMMARYThis project has been undertaken in order to highlight the Human Resource Practices of“Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken ofthese days. A company paying more attention to its customer’s delights rather then thecustomer’s satisfaction. Ufone is a company starting from scratch and has shown utmostperformance in the last seven years. Ufone owes its success to its employees believingthat providing employees with job satisfaction motivates them to work hard and providebetter results.Company IntroductionUfone PTML is a wholly owned subsidiary of PTCL established to operate cellulartelephony. The company commenced its operations, under the brand name of Ufone,from Islamabad on January 29, 2001During the year, as a consequence of PTCL’s privatization, 26% of its shares wereacquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, themanagement of Ufone has also been handed over to Etisalat. During the year July 2005 toJune 2006, Ufone continued on the path to success. The Company further expanded itscoverage and has added new cities and highways. Ufone has network coverage in morethan 3475 locations and across all major highways of the country.Ufone currently caters for International Roaming to more than 200 live operators across121 countries and introduced International roaming facility for Prepaid subscribers inSaudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand,Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring nosecurity deposit and activation charges. GPRS Roaming facility is available with morethan 100 Live Operators across 80 countries.Mission StatementTo become the best cellular communication option available in the country for “u”.Vision StatementIn order to evolve with our customers and to keep pace with your needs, we rejuvenatedand revamped our image by changing our visual identity. At Ufone we understand thevalue of words and the need to communicate effectively and efficiently at all levels of
society, which is why our primary focus is on U, our valued customers bring strength toour company.With a fresher look than is accepted and appreciated across the board by people of allages, we aim to connect with you and provide you state of the art services. No matterwho you are, where you are, what you want to say, how you want to say it or how youfeel, you are our focus. Because at Ufone, it’s all about U,Services line of UfoneThere are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. Both ofthese products are available at their franchise for public.PrepaidPost paidCOMPANY ANALYSESStructure of UfoneWhen a company wants to compete in innovation, it needs to maximize flexibility.Flexibility is maximized by aggregating work into larger, holistic pieces that are executedby teams of higher wages, high skilled workers. Giving the units their own supportsystems and decision-making authority to take advantage of local opportunities inregional or specialized product markets also enhances flexibility.
Keeping in view of all these factors the structure of Ufone is designed i.e. the overallStructure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone hasfour regions and within those regions the structure is functional .The decision makingauthority is centralized at the top but within the regions it is decentralized i.e. regionalheads have to inform top management before making any decision.Departmental DivisionIn order to give a jump-start to the company, a comprehensive initiation plan has beenmade along with aggressive customer acquisition, care and retention strategies. Ufone hasthe best integration of eight departments each project director.EngineeringAdministrationBusiness AnalysisMarketing & SalesCustomer CareHuman ResourceFinanceInformation Technology
Human Resource Department at UfoneUFONE considers their employees to be the asset of the company, so in order to retaintheir employees following practices are followed in the company.HR PRACTICESRecruitment and selectionOrientationTraining and developmentCompensation and BenefitsPerformance AppraisalWORK FORCEHR at UFONE is divided into the following two major categories Permanent Employees (1500-2000 Approximately) Outsourced Employees (2000 Approximately)Permanent employeesHR Permanent employees are further divided into following two categories. Operation Training and DevelopmentOperational DepartmentIt covers all the areas including hiring recruitment, selection and payroll etc. HRoperation team manages all the employee activities gathers all the information and makeuse of it for further processes.
Training and DevelopmentHR team of training and development make a performance evaluation of all theemployees and the see where the gap occurs between the actual performance and thedesired performance. Then training is designed for area which needs to be improved. Onthe job and off the job both the trainings are given according to the need of the employee.Employee Benefit & CompensationTraining & DevelopmentEmployee MotivationRetention of EmployeesCareer Planning/ Succession PlanningEmployee Relations/ CommunicationEmployee AwardsEmployee Events ManagementMedical & Life InsuranceCOMPENSATION AND BENEFITSUfone follow the performance base pay structure and pay for their performance and workoutput.CompensationThe total returns which an employee gets against his or her work.It maybe:Employee Health PlansEmployee Insurance
Employee LeaveEmployee Retirement Income Security ActExecutive CompensationMaternity & Paternity BenefitsPension & Retirement PlansWages & SalariesWorkplace ProgramsCompensation strategies are usually market based and is linked with the performancewith a greater emphasis on variable pay. Salary adjustment is based on the performance,market movement and internal/ external equity adjustment. Revision of compensation isbased on total pay and monetization of benefits.
UFONE focuses on providing a large number of the compensation and benefits to itsemployees in a form of the following categories:Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” itis Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it isRs.20000 and for Engineering it is Rs.20000 to 25000.Medical Allowance: 1 gross salary per year is given to each employee; half isgiven in mid of the year and remaining half will be given at the end of the year.Health Insurance: Like all other cellular companies Ufone also provides healthinsurance policy to its employees.Loan Insurance: At Ufone loan insurance policy is also provided to theiremployees through banks.Transport allowance: Rs 2500 are given to female employees only, if they travelon local transport.House Rent: 10% of the basic salary is given to each senior/ executive levelemployee.Overtime: All employees are entitle for the overtime more then 130 hours permonth .For overtime UFONE have specific formula that apply on the employeesgross salary, due to which every employee have different per hour overtime rate.EOBI: EOBI is contributed as per the standard
Children Education allowance: 1 gross salary per yearProvident Fund: All permanent confirmed employees are eligible formembership of Ufone Employee Provident Fund Scheme. An employeecontributes 8.33% of month basic salary in a year and an equivalent amount isbeing contributed by the employer.Leaves: 7 Casual and 10 sick leaves are given to each employee at all level.Travel Policy: Revised and categorized different levels such as the senior level,the middle level and the junior level staff.Meal deduction Claims: Meal books are to be maintained of each employee whoissues it, their name, employee number, designation, signature and number ofbook and date at which it is issued has to be recorded. The reason for maintainingthe record is that the company pays 60% of the expense came over the food while40% has to be deducted from the employee’s salary.Expense Claim: The expense Claims are the expenses which an employee makeon the behalf of the company E.g. fuel used for business travel, overnight stays ona business tour etc, such claim are made while returning back to the office , afterthe whole process the HR pay them back the next month along with their salary.Overtime Claim: If an employee has worked for more than the regular time, theyclaim for the overtime amount other than their salary which they receive the nextmonth. Overtime claim have to be approved through HR department.Medical Claim: Different medical facilities are provided to employees atdifferent level of hierarchy, so if any employees make use of this facility they canclaim for the amounts to be return next the month while submitting the hospitalreceipt. Their medical clearness is done by the HR department.Mobile deduction Claim: Such an expense claims which are made if anemployee has made long duration call for the official purpose and they haveexceeded the limit given to them then they can make a claim by attacking a copyof mobile bill and if its valid then HR department approved it and pay theemployee their claimed amount along with their monthly salary of the followingmonth.Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it tothe HR department, further HR head office send it to the regional HR departments
their concerned employees salary slip and they either give their employeesthrough cash or transfer to their accounts.Job AnalysisJob analysis is systematic exploration of activities within a job. It is a technical procedureused to define the duties, responsibilities, and accountabilities of job. It is proved that jobanalysis is almost first activity of HR department to be done. Because on this, paypackages, compensations, job descriptions, job specifications, job evaluation etc aremade. So at Ufone experts do job analysis. They construct “Job Analysis form”.
Ufone Job AnalysisFollowing steps should be taken by the Ufone.Step1: Obtain Documentary information such as procedure manuals and writteninstruction.Step 2: Ask about more general aspect such as the job purposes, the main activities.Step 3: Ask the jobholders about the job.Step 4: Observe the jobholders to see what they actually do.Information Collected in Job AnalysisWork activitiesWorker-oriented activitiesMachines, tools, equipment, and work aids usedJob-related tangibles and intangiblesWork performanceJob contentPersonal requirements for the jobWhy Ufone conducts job analysisThe Ufone conducts the job analysis to get the right person for the right job at the righttime. If the Ufone does not conduct the job analysis then there will be a huge chance ofselecting the wrong person or to reject the right person who is suitable for the job.Knowing Who Does WhatMajor duties or activities requiredConditions under which the job is performedJob analysis procedure of the UfoneThere are mostly following procedure of the Ufone about analysis of a job:Direct ObservationsInterviewsHow Ufone formulate job description and specificationIn Ufone most of the announcements for jobs are being done through newspapers havingwide circulation in the country. Whenever Ufone offers any job it also describes the
responsibilities and duties with in a job to be performed. The HR people after analyzingany job that has become vacant makes a job description defining clearly what thejobholder will do and how it will be done. On the whole job description definescharacteristics of job, environmental conditions and responsibilities of the job.The HR people define the job in such a way that it clearly describes the job and guidesnew employees what to do etc. now they are moving towards E-Recruitment also toensure best candidates apply for the jobs and professional people are employed in theOrganization.Job specificationUfone also has well developed criteria for each job in term of the job specification. In allthe area of the jobs the pre- requisite for the job are defined for example:Qualification required for a jobSkill required for a jobExperience required for a jobJob DescriptionHuman Resource Division analyzes each job and its required outcomes. Job analysis isdone by analyzing the past experience and emerging trends.Ufone holds documents about terms, duties responsibilities, and specifications about eachjob. In job description Ufone define the following:Duties of HR manager is to select, hire and train employeesResponsibilities are to update records and processing insuring claimsTask is to complete the job related activity
PERFORMANCE MANAGEMENT SYSTEMObjective of the Performance Management:The basic objective for performance UFONE employees circles around the following:To look at Performance system as a means to an endSetting an individual’s goalAligning goals across the companyEnsuring employees get coaching from managersDetermining merit payIdentifying training and development needsProviding data for promotion decisionInput from multiple source on worker performanceThe Performance Appraisal Process:The Performance appraisal system used by UFONE for reviewing the performance statusof its employee starts with identifying specific appraisal goals set by each Group for eachcadre. After this a detail job analysis is done with looking in account the job expectationand then matching the actual performance with the desired performance. Afterward theperformance is appraised according to the set standards and this appraisal is not done bythe supervisor alone, their major focus is on taking into the account the employee’sperspective as well. Therefore whenever the appraisal is done employee is fullyparticipative in the process.Performance Appraisal Method Use by UFONEUFONE is using 180-Degree Performance Appraisal Method. Within this method,managers, peers, customers or colleagues are asked to complete questionnaire on theemployee being assessed. In UFONE, performance of an employee is appraises twice ayear. Once in June while other in December.In the questionnaire there are five sections and in each section there are five questionsrelated to the performance of employee. There are total 100 points from which anemployee gets.
Rewards Related to PerformanceThere is also a reward related to performance of the employees. For “CustomerFacilitation Agents” there 50% pay is based on their performance which is assessingevery moth by their managers. For other employees like in administration, engineering,finance, marketing, etc their performance is assessed after every six and they getincreased Rs.5000 in their salary as a reward. In each case employee have to showconsistent performance to win reward next time