Company overview of pakistan telecommunication company limited

Company overview of pakistan telecommunication guild limitedIntroductionPakistan Telecommunication Company limit (PTCL) is the largest telecommunication company in Pakistan. PTCL provides telephonic services to the nation and is the bear outbone for countrys telecommunication infrastructure. The company dwells of some 2000 telephone exchanges across Pakistan. They provide the largest fixed line (land-line) network, currently having 4.8 million fixed line customers. GSM, CDMA and cyberspace argon other(a) services of PTCL. The Government of Pakistan change 26% packets and go steady of the company to Etisalat (U.A.Es telecom company) in 2006. The Government of Pakistan retained 62% of the sh atomic number 18s charm the remaining 12% atomic number 18 with the general public. PTCL too provides radiocommunication Telephonic network by the name of Vfone, having 1.25 million active customers. Ufone, which is the second largest cellular network in the country, is also ingested as a subsidiary of PTCL. Ufone has about 6.5 million mobile subscribers and a trade sh be of nearly 25% currently in Pakistan. PTCL has the potential to be an influential gist in Pakistans economic growth. It has laid the Optical Fiber Access Network technologies in major(ip) metropolitan cities of Pakistan. (Retrieved from http//www.ptcl.com.pk).Privatization of PTCLThe cultivate of the privatization of the state owned and managed PTCL was initiated in November 2004. Early in January 2005, 18 companies registered their EOI (Expressions of Interest), out which 3 childs playders qualified for the closing bidding which held on June 18, 2006. Dubai based company Consortium of Emirates Telecommunication Corporation (Etisalat) and Dubai Islamic Bank, Etisalat International Pakistan (EIP) gave the highest bid US $ 1.96 per sh are, equivalent to PKR 117.01 per share, which translates into US 2,598,960,000 (2.599 jillion) or PKR 155,157,912,000.00. (Retrieved from www.go-pakistan.com ). aft(prenominal) the purchase of shares of PTCL Etisalat was given permission to fully instruction the management, which is against the provisions of Companies Ordinance of Pakistan, 1984.This deal has also created often of a drama within the company as intimately. The employees of PTCL resist this deal and there had been strikes in PTCL offices to oppose this. As many as 40,000 people leave behind quit the job through Voluntary Separation Scheme (VSS) offered by the PTCL management. 60 percent of employees whitethorn opt for VSS. Among the 44,000 employees 26,400 volition quit the services who cede served the organization for as many as 20 years. The cases had been signed by opposition, employees of PTCL against each(prenominal)(prenominal) this scenario and they are still waiting in Supreme Court for hearing. aft(prenominal) privatization of PTCL, the company remained encircled by various controversies and disputes, mainly due to abominable management by PTCL tribunal and lack of interest from Government. wholly this resulted in bringing buck the net profit of PTCL from Rs 29 billion before privatization to mere Rs 10 billion. (http// www. propakistani.pk retrieved dated 16 July, 2008).PTCL employees came to know about a new-fashioned condense named as U.P.S (Unified Pay Scale). U.P.S highlighted that the previous employment agreements were null and void and no previous benefits could be claimed by any of the employee of PTCL. U.P.S also dispossessed the employees of their respective pensions. Until and unless their demands are met, the employees of PTCL are on a protest. As much as 21000 employees of PTCL would be unnatural by U.P.S. Employees believe that U.P.S was bought in PTCL to change the placement of the employees to contractual status, alternatively of their permanent ones which was present before. Government had promised the employees that they would be receiving facilities like, pay scale/ every(prenominal)owances up gradations, but they were never fulfilled, as the event of privatization had effectn place.Signifi apprisece/Rationale of the registerThe significance of this study is to identify the post make of privatization on the employees of PTCL. We volition be identifying the level of contentment of the employees afterward(prenominal) the privatization of PTCL. The performance of their employees and similar other indicators will exuberate the dedication of employees to this organization. There is a need for a study c one timerning how employees perceive changes in their employment system, since this parade will result in the change of the management and the policies that were present in PTCL before privatization. Gener all toldy, a well motivated and a satisfied employee means that the organization is achieving high levels of productivity. Similarly, if the employee has negative reactions for this process, that would result in de-motivation and dis cheer of employees. This is bad for the organi zation as well as its employees in the future.Aim of the studyThe main aim of the study is to analyze post effects of privatization on the satisfactory level of employees. This search will look upon the status of employees in PTCL after privatization, especially those employees who had been working in PTCL for more than than twenty years and on the variables that attain their impact on the PTCL employees. Finding out the consequences that the employees had to face after privatization is also the area of interest.Research objectivesThe research objectives of this study are as followsTo understand the effects of privatization on the PTCL employees.To study how the job atonement of the employees is upholded after privatization of PTCL.To investigate how the employees work- colligate attitudes and strain grant changed after privatization of PTCL.To treasure the needs of PTCL employees at different pecking order level.Research questionsThe questions posed by the researcher in th is study areHow are the employees affected by privatization of PTCL?What are the reasons for triumph/dissatisfaction of the employees of PTCL?How to increase the job satisfaction of PTCL employees after privatization?Delimitations of the studyThe study can non be undertaken on a broad scale because of the following constraints and will be delimited to only the city of capital of Pakistan/Rawalpindi.Time constraint.Resource constraints.Set of variablesLiterature ReviewConcepts and definitionsPrivatization can be simply explained as a process in which the ownership transfers fromGovernment hand to private hand. This term is also known as denationalization. It means transferring the control of a firm from the government sector to the private sector. It can be perfect(a) by sale or lease such as government selling 100% of an try or selling 51% or even by selling a minority plunk for as long as the private sector is given full managerial (management) control. In fiscal terms, privati zation means transferring a company from one whose shares are listed on the derivation exchange and can be bought by the general public to one that is no longer listed or publicly traded because it has been bought by a private group.Privatization takes place to reduce the depletion of Government resources caused by losses of the state owned enterprises, this mostly creates great opportunities for the private sector to expand and modernizethese enterprises. Productivity, efficiency, profitability increases and thedevelopment of a valuable capital food market occurs which releases resources fordevelopment of the social and physical infrastructure. The process of privatization has some disadvantages as well. Private firms tend to be more efficient and cost effective so the excess workers are laid off to minimize costs. Employees do not benefit from paid leaves, which are given to government employees. Employees also dont define contracts for life time job in privatization, which th ey do take on in the public sector.Hassan (2008) stated that Saudi Arabia is experiencing the expenditures of public sector. Privatization does waste an impact on employees in public organizations. When there is a policy of gradual privatization, the old employees are trained in a veritable manner, as to be ready for their new jobs respectively. If the company is sold through selling stocks than some of stocks should be sold to the employees themselves or given it to them (stock options). This increases their interest in the company and they become more motivated and satisfied. The resultant is good governance and profit. During the privatization tip there should be certain specialized organizations who should be allowed to take part in processes in order to find solutions or motility of surplus labor force. Employees should be motivated and trained from specialized trainers before and after the privatization period as it results in better performance and productivity. Bhaskar and Khan (1995) states in the jute industry case, privatization reduced employment considerably, while the create was not much reduced. Reduction in jobs was mainly of managers and the labor or mill-workers were not fired after privatization. The employment of manual (labor force) workers was increased in the privatized firms.Brown, Earle and Telegdy (2008) states that the greatest resistance of privatizing a firm usually comes from the firms own employees, who are afraid of wage cuts and job losses. The new management of privatized firms reduces the organizations labor costs as harder reckon constraints and stronger profit-related incentives are promoted by them. This is called as the Efficiency Effect of privatization. The lower costs increase the firms market share and the total quantity demanded for the industry. New owners may reduce wages in order to cut back costs but if the firm plans to expand, whence they might offer high wages to attract new better and trained workers. Also, the new owners might bring in high tech machinery which does the job of attracting workers with high skills, thus they becharm higher wages.Cunha and Cooper (2005) states that the companies which are undergoing the process of privatization, several issues take place with the employees of that organization. close to of them are, role confusion, role over-load and under load, new-work tattleships, job insecurity, career advancement/future knowledges and deterioration of working conditions. All these factors may lead to physical health symptoms such as headaches, depressions, cardiovascular diseases, tension and anxiety etc, these factors and all of the listed above lead to dissatisfaction of the job subsequently.Falkenberg, Naswall, Sverke1 and Sjoberg (2009) states the employees working at different hierarchic levels take a leak different resources and means to handle uncertainty associated with change (in our case privatization). Employees at a higher level of hierarchy have a greater responsibility in an organization and thus could experience more stress than other employee. Research also suggests that employees at higher positions are better able to handle uncertainty, as they are having more access to resources that help improve the possible negative consequences of privatization. Higher level executives tend to answer for less suffering than other employees during privatization. The employees present at the lower hierarchic levels, who have fewer resources for discourse change disorder, there is an inclination for them to be more negatively affected by privatization. In conclusion, we can observe that dissatisfaction is observed at all levels of the hierarchy, whereas the greatest levels of disarray experienced as we move down from the top to the bottom levels.Critical digest of literatureThe articles in the literature reveal that privatization in the major parts of the world has created dissatisfaction amongst employees. Apart from the adv antages of privatization to the firm itself and the employees, the method causes the firms to become cost effective, which means that downsizing takes place, jobs are lost. Paid leaves were offered to public sector employees along with life-time contractual jobs in most scenarios. All of this is removed once privatization takes place. As the management changes, the existing employees flap confused about their roles, they experience stress, which leads to health problems such as cardiovascular (heart) diseases, depression, headaches etc. Usually, higher level executives are less affected than other employees during privatization. The employees present at the lower hierarchic levels, which have fewer resources, are more negatively affected by privatization.After the careful analysis of literature review, we have identified the following variables that will help us in making out theoretical framework reverence of communication channel insecurityStock-option plan periphery BenefitsEmp loyees coalescence reproduction and developmentRewards to the employeesTraining and developmentRewards to the employeesStock-option planFear of Job insecurityFringe BenefitsEmployee satisfaction level at PTCL after privatization(D.V)(I.Vs)Employees UnionTheoretical FrameworkEmployee satisfaction level at PTCL after privatization This is our Dependant changeable. Other factors will be affecting the satisfaction level of the employees of PTCL after privatization directly. self-sufficient VariablesFear of Job insecurityEmployees will have a never-ending headache of job security which was not present before with the firm when it was owned by the state. This happens because the firms downsize to cut costs.Stock-option planThe employees if given a stock option plan would make them involved in the organization, as they would have a feeling of control and involvement in the firm. If this option is not given to the employees, they would be considerably dissatisfied and de-motivated.Fring e BenefitsFringe benefits such as paid leaves, housing allowances, travel/fuel allowanced etc increase the satisfaction level of employees. In a private firm, paid leaves are cancelled and are declared null and void.Employees UnionThe Employee Unions nurture and safeguard the laws/rights of employees. Basically, its a support and the voice of employees. They are very helpful in resolving the disputes mingled with the employees and the employers. Private firms usually put a stop to all the unions and their activities.Training and developmentTraining (O.T.J/O.T.J) increases satisfaction level of employees, as they are offered a chance in advancing in their careers.Rewards to the employeesRewards, compensations and better earnings packages are the employee essential reasons for the satisfaction levels of employees.Proposed Research Methodology prove Selection sampling involves selecting individual units to stripe from a larger population. The population refers to the set of individ ual units which the research question seeks to find out about. The Sample would consist of the employees that are working in Islamabad only. Our sample will base on both nth employee of PTCL in Islamabad. We will take every 10th employee of PTCL in Islamabad as our sample.Sampling framesThe sampling frame is the group of individuals who had a real chance of macrocosm selected for the sample. Our sampling technique would be Systematic Random Sampling for the masses of the workforce of PTCL in Islamabad. The population will include all employees that are working in PTCL. Total numbers of employees of PTCL are approximately 64000 (It comprises 56,000 level(p) and 8,000 contractual).Unit of AnalysisOur target is not towards the collective communities in the data collection stage, but sort of is focused on the individuals i.e. the employees of PTCL in Islamabad.Type of StudyOur study type is Exploratory as we are exploring the level of employee satisfaction after the privatization of PTCL. We are exploring the impact on employee after the privatization of PTCL.Time HorizonThe total time period for this research is not over a period of time but is specifically at a time. That time is the cross-sectional (snapshot).Researchers StrengthThe researchers are graduates who are pursuing their masters degree presently. This gives them the added advantage of being familiar with report writing and research capabilities. They have access and knowledge to latest methods and tools for academically related research work.Instrument development/selection Questionnaires InterviewsProposed Data-Collection MethodsThe proposed data collection methods are questionnaires. They will be consisting of both, unmortgaged and closed ended questionnaires. Another data collection method would be the use of likert scale, which will consist of responses.SURVEY QUESTIONNAIREMEASURING THE LEVEL OF EMPLOYEE SATISFACTION IN THE PAKISTAN TELECOMMUNICATION COMPANY LIMITED AFTER PRIVATIZATION occupy show your level of agreement by marking tick () against each statementKey5 = SA Strongly Agree 4 = A Agree 3 = N Neither Agree Nor resist= DA Disagree 1 = SD Strongly DisagreeFear of Job insecuritySD D N A SAQ1) I cultism that I will be replaced by another employee who will be hired from the corporate sector.12345Q2) I fear that, while adapting the cost-benefit strategy after privatization the firm might fire me as a downsizing measure.12345Stock-option planSD D N A SAQ3) My Company offers stock-options/shares at a discounted set.12345Q4) My Company gives stock-options/shares instead of hard currency bonuses, so that I have a feeling of increased satisfaction with the firm.12345Fringe BenefitsQ.5) My Company gives attractive benefits in housing allowances for both purchasing and rental.12345Q.6) My Company provides yearly travel and holiday packages for me and my family.12345 SD D N A SAEmployees UnionQ7) My Company has an employees union, which protects and fights for th e rights of employees, when an incident of injustice occurs.12345 SD D N A SATraining and developmentQ8) My Company offers training and development program that helps me in career progression.12345 SD D N A SASD D N A SAQ9) Rewards are offered to employees on a timely basis.12345Q10) Rewards are given in monetary/nonmonetary forms.12345Q11) Project/goal windup in early timeframe and high actionrs get rewards practically.12345Rewards to the employeesEmployee merrimentQ12) I am satisfied with the work designate to me in this organization.12345 SD D N A SA in the flesh(predicate) informationQ13. Gender1 Male 2 FemaleQ14. Age1 15-252 25-353 Below 504 Above 50Q15. Qualification1 Matric-P.T.C 2. FA/Fcs-C.T 3 Grad (B.Ed) 4 Post Grad (M.Ed) 5 OthersQ16. Designation1 Top/Administrative level 2 meat level. 3 Low level / Supervisory / First-line managersQ17. Experience1 1-5 years.2 6-10 years.3 11-15 years.4 16-20 years.5 21 Above.Thank you for your valuable time and input.Best regards,M .B.A StudentsHaseeb RazaAsher ShafqatS.Z.A.B.I.S.T, Islamabad.Results and DiscussionsDescriptive StatisticsDescriptive statistics is used check the nature of the data and its Mean values and Standard deviation.Mean X / N (X = Sum of all Mean)= 31.42 / 30= 1.0473The mean value is 1.0473. This shows that most of the responses are towards potently disagree. It means after privatization of P.T.C.L most of the employees are dissatisfied with their work and other benefits given to them.CorrelationCorrelation coefficient is a measure of the relationship amidst two attributes. It is also known as the Pearson product-moment correlation coefficient. The value of coefficient can range from -1 to +1.Consider the variables x and y If r = -1, then x and y are perfectly negatively fit. If r = 1, then x and y are perfectly positively correlated. If r = 0, then x and y are not correlated.QUESTIONSFear of DownsizingStock-options/shares at a discounted priceHousing allowancesEmployees union remain der conclusion and high achievers get rewards practicallyEmployee propitiationFear of replacing by another employee0.902-0.7873-0.8640Stock-options/shares instead of cash bonuses0.5048 endure and holiday packages0.6621Training and development program0.78970.8518Monetary/Non-monetary Rewards0.6690Fear of downsizing is positively correlated with fear of replacing by another employee.Goal Completion and high achievers get rewards practically is negatively correlated with fear of replacing by another employee. If there will be fear that employee will be replaced then the employee will not complete his goal and will not achieve high.Stock-options/shares at a discounted price is positively correlated with Stock-options/shares instead of cash bonuses.Housing allowances is positively correlated with Travel and holiday packages.Employees union is positively correlated with Training and development program.Employee satisfaction is negatively correlated with fear of replacing by another empl oyee. If there will be fear that employee will be replaced by another employee of corporate sector then employee will be dissatisfied.Employee satisfaction is positively correlated with Training and development program.Employee satisfaction is positively correlated with Monetary/Non-monetary Rewards.RegressionRegression analysis is a statistical technique that is used to survey and represent the relationship between two or more variables. A linear regression model is used to explain the relationship between two or more variables, Using the Formula Y= a + bX.Y= Dependent Variablea= Y wiretap/ changelessb= SlopeX= sovereign VariableDependent Variable Employee SatisfactionIndependent Variable Fear of Job insecurity, Stock-option plan, Fringe Benefits, Employees Union, Training and development, Rewards to the employees. tabularize 1RegressionDependent Variable Employee SatisfactionIndependent Variable Fear of Job insecurity, Stock-option plan, Fringe Benefits, Employees Union, Traini ng and development, Rewards to the employees.TABLE 2TABLE 3As shown in Table 3 the value of unvarying a is 1.853.Fear of Job insecurityFear of downsizingIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Fear of downsizing taking 1.360 as constant then its vend B would be -0.291 displace the values in the Y= a + bX, we getY= 1.360-0.291 XJob Satisfaction = 1.360-0.291 (Fear of downsizing) substance Level = 0.158The value of B Is negative, so the variables have inverse relation with each other. If we increase satisfaction then Fear of downsizing decreases.Stock-option planStock option-shares at a discounted priceIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Stock option-shares at a discounted price taking 1.360 as constant then its set up B would be 0.080 set the values in the Y= a + bX, we getY= 1.360+0.080 XJob Satisfaction = 1.360+0.080 (Stock option-shares at a discounted price)Significance Level = 0. 528The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Stock option-shares at a discounted price also increases.Stock option-shares instead of cash bonusesIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Stock option-shares instead of cash bonuses taking 1.360 as constant then its slope B would be 0.140Putting the values in the Y= a + bX, we getY= 1.360+0.140 XJob Satisfaction = 1.360+0.140 (Stock option-shares instead of cash bonuses)Significance Level = 0.220The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Stock option-shares instead of cash bonuses also increases.Fringe BenefitsTravel and holiday packagesIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Travel and holiday packages taking 1.360 as constant then its slope B would be 0.082Putting the values in the Y= a + bX, we ge tY= 1.360+0.082 XJob Satisfaction = 1.360+0.082 (Travel and holiday packages)Significance Level = 0.610The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Travel and holiday packages also increases.Employees UnionIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Employees Union taking 1.360 as constant then its slope B would be 0.063Putting the values in the Y= a + bX, we getY= 1.360+0.063 XJob Satisfaction = 1.360+0.063 (Employees Union)Significance Level = 0.764The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Employees Union also increases.Training and developmentIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Training and development taking 1.360 as constant then its slope B would be 0.206Putting the values in the Y= a + bX, we getY= 1.360+0.206 XJob Satisfaction = 1.360+0.206 (Training and development)Significance Level = 0.269The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Training and development also increases.Rewards to the employees well-timed(a) basis rewardsIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Timely basis rewards taking 1.360 as constant then its slope B would be 0.198Putting the values in the Y= a + bX, we getY= 1.360+0.198 XJob Satisfaction = 1.360+0.198 (Timely basis rewards)Significance Level = 0.280The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Timely basis rewards also increases.Goal completion and High achieversIf we take dependent Variable Y as Employee Satisfaction and Independent Variable X as Goal completion and High achievers taking 1.360 as constant then its slope B would be 0.024Putting the values in the Y= a + bX, we getY= 1.360+0.024 XJob Satisfa ction = 1.360+0.024 (Goal completion and High achievers)Significance Level = 0.877The value of B is Positive, so the variables have direct relation with each other. If we increase satisfaction then Goal completion and High achievers also increases.RecommendationsOur recommendations are based on the results generated from the questionnaire. Overall we can conclude that the variables identified in out framework do strongly affect the satisfaction level of employees at PTCL after privatization. Employees strongly agree that they have a certain fear of losing their jobs after privatization. Stock option plans, or giving employees stock/share as added benefits instead of cash bonus etc. would increase satisfaction levels and make the employees more productive in the privatized firm. The employees agreed for having regular handing out of the stock options in the company. Fringe benefits are those services that motivate the employees and increase their satisfaction levels considerably. Emp loyees were disagree, when they were asked to assess the fringe benefits as direct measure of their satisfaction levels in PTCL after privatization. Employee unions or those entities that safeguard the rights of employees. Employees responses were strongly disagree that there were no Employees Union present in their organization. Basically these unions prevent unfair measures from hap with the employees. Training and development enhances the careers of employee and grooms them in the corporate world. It also paves way for their promotions in an organization. The employees responses were mostly disagreed because there was no training given to them after privatization. Training should be given to them that help them in their career progression. Rewards should be given to them on timely basis and all kind of monetary/non-monetary rewards should be given to them. To value the employees who complete their Projects/goals before time rewards should be given to them so that they get motiv ated and satisfied and achieve high.