ACKNOWLEDGEMENT

We are very thankful to Mr. Naveed Anjum, the course instructor, who assigned such a
practical project in which we compelled to apply and use all all skills to do this project
successfully. We all are satisfied from our efforts devoted to the compeletion of this
project.

And
To
1. Mr.Jawad Ali

Recruitment & Compensation Officer,

Mobilink

2. Mr.Mumtaz Ali

Staffing and Compensation Associate

Mobilink, Islamabad

3. Mr. Saddat Shah

Compensation Officer

Telenor, Islamabad

4. Mr. Faisal Ameen

People Excellence Officer

Telenor, islamabd

5. Mr. Fahad Jahangir

People Support officer

Telenor, Islamabd

For devoting us precious time, valuable information and kind assistance in this project,
we will remember their kind efforts and saying bundle of thanks.

THANKS
Arif and group members
Barriers in the execution of this project

3
The proposal of this project was about the analyzing the compensation strategies of the

Mobilink, comparing these with the major competitor Telenor. The compensation

strategies of such organizations are very delicate and confidential. We tried all the

possible major as well as minor sources to get the access to their strategies. We are not

told the core strategies which create the edge in the market, but a general overview has

given. So this project finding may not be 100% accurate but we hope best for the

significance of these findings.

The next phase of this project of conducting salary survey of the telecom industry,

targeting the HR people, We are again coming with sorry to expose that no one has

granted the permission to go for salary survey. We this survey is not successful because

of the limitation and business secret policies.

4
 Project out line

Studying the Compensation Strategies, policies and practices of Mobilink

Focusing on
Individual Incentives plans & Group
Incentives Plans

Organizational Incentives Plans & Special

Incentives Plans
Job Evaluation methods of Mobilink

Studying the Compensation Strategies, policies and practices of

Competitor: Telenor

Gap Analysis

Table
Salary Survey of people
of HR Contents
in telecomm Sector

Recommendation & Conclusion

5
Sr. No Topics Page No.
Preface 01
Introduction 02
The Compensation Strategies of the MOBILINK 03
INCENTIVES PLAN
03
• Individual Incentives Plan:
• Group Incentives Plan 04
Organizational Incentives 05
Special Incentives 05
Job Evaluation methods: 05
Point Method 06
Ranking Methods 06
Pay Packages and Employee Benefits
06
Promotion Policies 08
Overview of Performance appraisal in Mobilink
09

Compensation Strategies of Telenor Telecom

11
Incentives Plans
• Individual Incentives Plans
12
• Group Incentives Plan
13
• Organizational Incentives 14
• Special Incentives 15
Job Evaluation in Telenor 15
Pay Packages and employee benefits 16
GAP Analysis 18
Strong & Weak Points of Mobilink
18
Strong and Weak points of Telenor 19
Salary Survey 23
Survey Results 25
Recommendations 26
Conclusion 26
Preface
This project is about analysis of the compensation strategies of Mobilink

Telcomunication Pvt.Ltd. the market leader in telecomm sector and the first GSM Service
6
provider in the area. In this project their compensation strategies of carefully studies,

analyzed critically, explored the methods and process of job evaluation and the pay

structures of the Mobilink.

After that the same procedure is adopted for Telenor in order to conclude the best

practices among them. This is done by going for GAP analysis between the Mobilink and

Telenor compensation strategies.

This project really polished out compensation Mangement skills and we get aware of the

fact that needs to be kept in front while designing the HR strategies.

Hence this was a really enjoyable, learning and practical experience, very much related to

the application of the basic theoretical knowledge.

The Compensation Strategies of the MOBILINK

The Mobilink that claims of the major market shareholder in telecom industry has shown
very traditional approach towards the compensation management. The leading
organizations always try best to have a best-fit strategic approach towards the Human
Resource Management within organization but unfortunately the leading organization
like Mobilink is also use best practice approach in compensating approach. During this
research we also come to conclude that these best practice are not fully implemented in
whole soul but they are either partially implemented or just remained in name.

Lets the incentives Plan being implemented in Mobilink are:

INCENTIVES PLAN
Incentives are designed to encourage employees to achieve objectives. They are intended
to direct motivation for present and future performance, promising “ do this and we will
make it worth your while”

7
Incentives are generally financial but they can promise non-financial rewards such as
recognition, promotion or particularly interesting assignment.

Individual Incentives Plan:

Individual incentives plans are those that are concerned to compensate the individual
efforts that result in organizational outcomes.
In Mobilink the individual incentives plans don’t exist in any form. Although this kind of
incentives plan is only for the sales people in the form of commission on sale. But we
disagree with them because it is individual incentive plan because this is pay at risk and
where risk exists its not incentive.
One other form of incentives plan is that they are paying overtime to the lower
management on the hour’s basis they spent besides the duty hours.
Further discussion revealed that they used to give Departmental objectives that further
divided into level objectives and finally individual objectives, if the whole department
objectives are met and the Company performance enhanced than they pay to all
departments instead of paying right-to-right person. And if the company objectives are
not achieved and individual objectives are achieved, than in this case they don’t use to go
for incentives to individual or group etc.
Group Incentives Plan
The Mobilink prefer to team and group working. People are recognized from their
respective group or team with in organization. Like sales people, marketing team, finance
analysis team, finance allocation team, HR peoples, etc
The group incentives are based on the objectives being assigned to each team or group. If
they successfully achieved within the given constraints and also these achievement led
company performance to enhance than they will be entailed for group incentives in
following manner:
• Per unit incentives
• Monthly incentives
• Continuous incentives
• Remote areas incentives

8
The per-unit incentives are given mostly to the sales and production teams, the units they
produced and similarly to those the unit sold per/day or week. These per unit incentives
are not paid to individual but to the whole team.
The monthly incentives are for marketing team, Human Resource Management, and
Finance for achieving their excellent performance. The monthly incentives are mostly in
the form of a bonus salary, house rent or some other cash-based rewards, but mostly it is
in the form of a bonus salary for every member within the team.
The continuous Incentives are for those teams whose maintained and improved
performance with increasing rate for three or more than three months. These are in the
form of cash bonus, salaries and other benefits according to the impact of performance on
overall organizational achievements.
The remote areas where the basic facilities are limited, has little security etc like
mountains, deserts and or like FATA.
The group incentives pattern is widely spread in Mobilink and they say that we are
concentrating on group incentives because to ensure internally and externally that we are
unite and the culture is collectivism not individualism.
Organizational Incentives
The organizational performance is measured in the form or increase in Annual sales, No
of subscribers, and increase in market share.
The individual objectives are sequentially tied with the company performance. When
company succeed in achieving these objectives.
These incentives are in the form of
Upper Management: Three Gross Salary in a year
Lower management: Two gross salaries

Special Incentives
According to the Mobilink Compensation Officer, “There are very few and rare special
incentives because the group incentives and organization incentives plan are designed in
such a way that each and every individual is performing special”. But few types of special
incentives plan are:
• Recognition:

9
 If some one extra ordinary perform in sales or production department, they
various types of recognition like
1. “Man of the year” which contain certificate and some other prizes.
2. Excellence certificate
3. Placing the name and Picture in organization top performers gallery
• Appreciation: the individual is appreciated personally by the General manager
either meeting personally or through call or through email etc
• Special Cash Amount is given on the occasion when someone (mostly given to
HR) for attracting and hiring top performers of Competitors.

Job Evaluation methods:

Mobilink uses two methods for evaluating job in order to know the worth of the job.
1. Point method
2. Ranking method

The reason that Mobilink uses two methods is the importance being given to the level of
management.
Point Method
The point method is used to evaluate the middle level management. The importance is
given more to critically know each and every job worth because
• The middle level is act is a bridge between upper level and lower level
management. If this level is enough strong to get the stress of the upper
management as well as to be enough competent to supervise and motivate the
lower management to work effectively.
• The middle level jobs are mostly technical and coordination nature, that’s why
point method is best to know the level of competency required for each job.
In this point method besides other compensating factors more and large portion of
weighed is given to the “Technicality” and “Coordination” this two components or
factors weight-age is about 70% in all-compensable factors.

10
Ranking Methods
In the top level management the Mobilink is using ranking methods because these people
have higher professional profile, what the market is paying, the Mobilink tries to pay
them some higher than the market, therefore the point method seems very conflicting in
designing the pay structure. And there is a risk if point method is used result in decrease
in the current pay, so he/she may leaves.
In the lower management the ranking method is used because these jobs are mostly entry
level having the specific level of skill requirement, so all jobs at entry level are ranked
equally.

Pay Packages and Employee Benefits

Mobilink like other organization has three level of management.
• Lower Management
• Middle Management
• Upper Management

The pay package and benefits are as under:

Lower management
1. Basic Pay (unknown/confidential)
2. Utilities (foods, Cell phone connection and monthly allowance)
3. Transport facilities (only for females)
4. Annual Increment
5. Subsidized rate (discount at company products)

Middle Management
1. Basic Pay (unknown/confidential)
2. House rent
3. Utilities (foods, Cell phone connection and monthly allowance)
4. Transport facilities
5. Annual Increment
6. Medical allowance

11
 7. Subsidized rate (discount at company products)
8. Cell phone (Blackberry)
9. Learning and growth opportunities
10. Training & Development
11. Promotions

Upper Management (Managerial)

1. Basic Pay
2. Annual Increment
3. Annual Bonus
4. Medical allowance
5. Car (limited Fuel & Maintenance)
6. Utilities (foods, Cell phone connection and monthly allowance)
7. Cell Phone (Black berry)
8. Laptop
9. Learning and growth opportunities
10. Training & Development
11. Life insurance
12. Promotions
13. Subsidized rate (discount at company products)

Upper Management (Directors & VP)

1. Basic Pay
2. Annual Increment
3. Annual Bonus
4. Car (unlimited Fuel & maintenance)
5. House
6. Cell phone (Blackberry +postpaid connection)
7. Laptop
8. Training & Development
9. Promotion
10. Medical Allowance

12
 11. Life Insurance
12. International trips
13. Social clubs memberships

The annual increment is subjected to the annual performance appraisal results. Therefore
this increment varies from individual to individual working on same position in same
department or other.

Besides these package following facilities are provided

1. Effective working environment
2. Office facilities
3. Flexibility
4. Learning environment
Promotion Policies
The new company structure is in five layers, comprising associates, specialists, managers,
directors and chief officers------in that order starting from the bottom and working
towards the top rung of the ladder.
Until approved otherwise, it would be mandatory for the employees to spend the
following maximum period at each level before a promotion to the next level depending
upon availability of a slot:

Associate 3-4 years

Specialist 3-4 years
Manager 2-3 years
Director According to the president decision
Chiefs According to the president decision
However, employees who may not get a chance of promotion due to the non availability
of an existing slot, will be compensated by being “moved over” within the new salary
range specified by the company

13
Overview of Performance appraisal in Mobilink
The top management decides the company objectives for the particular session. The
objectives are translated into the departmental objectives that are further divided and sub-
divided into group and individual objectives respectively.
The individual performance is measured against the pre-defined objectives given
individually. The individual appraises self first, than the concerned supervisor appraises it
and the concerned supervisor is supervised/evaluated by other supervisor. Similarly the
manager measures the supervisor’s performance, the Directors evaluate the manager’s
performance and the Vice Presidents measure Director’s performance and Vice-
presidents are by President.
Performance Appraisal in Mobilink

Company Objectives
Objectives Standards

Deptt: 1 Objectives Deptt: 2 Objectives Deptt: 3 Objectives

Objectives Standards

Team.1 Objectives Team.2 Objectives Team.3 Objectives

Objectives Standards
In order to decide which individual, team and team was well performer to achieve the
company objectives in order to facilitate the process of employee compensation in term
Individual.1 Individual.2 Individual.3 Individual.4 Individual.5
of pay raise, increment level, incentives, training and development, a performance
appraisal process is carried out to improve the compensation system fairness.
Performance Appraisal Process in Mobilink

Individual’s Performance

Self-Appraisal

Supervisor

Sr.Supervisor

14
Manager

V.President
President
Director
Mobilink Main purpose behind the above stated strategies and job evaluation and
performance appraisal is to ensure Business Excellence in order to create competitive
edge enabling Mobilink to sustain the market leader status.

Let’s have a brief overlook to the compensation strategies of Telenor, a leading

competitor and threat to Mobilink.

Compensation Strategies of Telenor Telecom

The Telenor entered the market with aggressive strategies at all level, never compromised

on quality service and positioned as self as “Better Quality at lower possible rates”

services provided in the market, succeed in capturing major market share in a very short

time. The Mobilink availing the market leader status didn’t succeed in defending it status.

All this credit goes to the Human Resource Management, which strategically aligned all
HR practices with the core Business strategies of becoming market leader. We will here
discuss only the compensation strategies of Telenor as a tool for attracting, retention and
motivation of productive employees.
The Telenor from the very first stages concentrated on the “Best fit approach” rather the
traditional and “Best Practice Approach”.
Following are the few compensation strategies because their strategies are strictly
confidential and the information provider may get lost his/her job.

15
Incentives Plans
The Telenor uses various incentives plan. Different packages and plan are deisgned for
different people and groups according to the nature of the job and the impact on the
organizational achievement. The commonly used plans are
• Individual incentives plan
• Group incentives plan
• Organization incentives plan
• Special incentives plan
• Motivation incentives plan
• Coordination Incentives plan

Let’s discuss the features of these incentives plans and the outcomes created from these
outcomes.

Individual Incentives Plans

In Telenor they strongly give importance to the individual performance because it is the
individual performance that enhances the group performance and ultimately
organizational performance. According to their words, if we fail to identify the individual
performance level, it will leads to the unfair compensation which will definitely result in
de-motivation and leg-pulling in the organization which is very dangerous for
organization on such stage where it has reached to the stage to take over. The individual
incentives plans are based on the successfully achievement of the individual predefined
goals and objectives. These incentives are in various forms like
• Commission
• Bonus pay
• Cash rewards
• Over-time payments
• Bonus one month cell phone charges
• Leaves in cash

16
 • Days off
• Shift payment and unsocial hours

The commission incentive is tied with the sales performance or performance in

production and also in customer services where the individual incentive is given for
effectively treating the customer. This commission is not like a exposure of employee
more pay to risk. If an employee doesn’t succeed in meeting the target, his/her she
training needs are identified, trained accordingly and if not achieving performance
standards after that, than job rotation technique is applied in order to make employee feel
secure.
Bonus pay is granted to those individual who achieve the targets which more prominent
results. Bonus pay is the more successful tool for motivating each and every employee to
do some thing extra ordinary.
Cash rewards are also subjected to the individual performance in the group. These are
given besides the group incentives for the purpose to make differentiation between the
higher performer and low performer within the group but it is managed in such a way that
eliminated discrimination. These cash bonus are given when group rewards are also
granted.
One month bonus cell charges are also used as a incentives plan to recognize the
individual efforts to all the people in organization. This will act as tool for motivation.
Leave in cash and day off are those incentives plan that are mostly granted to mostly
every individual but the days off are only granted to those employee who over perform
the performance targets.

The Telenor incentives plans are not strictly tied with the company objectives
achievement, if the individual objectives are achieved within given constraints than they
are eligible for their individual incentives.
The shift incentive plans are for those people whose service is for 24/7 times, like the
customer representative officer. And unsocial hours like working on the specific festivals
like Eid, Sunday etc

Group Incentives Plan

17
Group incentives plan are mostly designed for the technical staff, engineers, sales team
and marketing teams. These group incentives plans are
• Project rewards
• Group rewards
• Group trips
• Remote areas incentives
• Group annual bonus
• Special assignment or project provision
• Special group meal

Projects rewards are for the project teams for completing the projects in the given
deadlines of time, resources and quality. These rewards are subjected to the extent of the
quality and the nature of the projects. These are huge cash bonuses for each and every
member but due to individual incentive plan a slight difference may be possible.

Group rewards are similar to the project rewards but its amount is lesser and it is given
frequently to the technical group, Marketing team and sales team for achieving the
monthly targets successfully. These are mostly in the form of cash rewards.

The group trips are also used a group incentive but as tool of recognition, these trips are
fully financed by the organization either national or international level. Here employees
are also paid some amount of cash to go for personal enjoyment there, like shopping,
playing etc.

Remote area incentives are those cash and facilities provision to those teams or groups
working in remote areas like mountains, FATA etc.

Group annual bonus is in the form of bonus salaries to all the member of the group for
showing extra-ordinary result crossing the boundaries of targets given. These are mostly
given to the sales groups and production teams.

Special Assignment or project provision is also a group incentive plan in the form of
career development opportunities, learning and exposure in order to be eligible for the
higher position in near future. It is also the form of recognition.

18
Special Meal is also a form of group incentives used as a tool of recognition the group
efforts. The group members are served with a special lunch or dinner in five stars of
seven stars Hotel.

Organizational Incentives

These are those incentives granted to almost all employees when organization meets the
set objectives either financial or strategic.

These includes
• Bonus pay Payments
• Cash Bonus
• Annual Cash Bonus
These organizational incentives in not limited to the one or two level of management but
it is subjected to all employees according to the position and pay structures because all
these incentives plans are streamed out from the pay grades.

Special Incentives
The Telenor has a very distinct special incentives plan in comparison to other
competitors. Following are the few effective special incentives plan not exist in Mobilink.
• Golden Hellos
• Golden Handcuffs
Golden Hello is that incentive plan that is used to attract the cream from the competitors.
It is either in the form of lump sum payment or in phases and some times for couple of
years depending on the nature of the people aimed to attract.
Golden handcuffs are also special individual pay incentives used to lock the best
employee within organization and eliminate the fear of being attracted or hired by other
competitor. These are also in the form of lump sum; phase, couple or years cash
payments.

Management Incentives Plan

Management incentives plan are those only for managers for achieving excellence in the
management and optimal utilization of organizational resources. These incentives may
19
cover two-three years gross salaries payment or a certain amount of cash payment for
fixed time period. The objective of this incentive plan is to keep the managers at optimal
level.

Job Evaluation in Telenor

The job evaluation in Telenor is used in three different ways, its usage is depend on the
nature of the job, demand of that job, supply of people, time and cost constraints.
Generally the following three methods are used from time to time:
1. Point-methods
2. Straight ranking method
3. Paired comparison
The point method is widely used method for almost all jobs evaluation for technical,
coordination, production, customer services, managerial, Directors level jobs. The entry-
level jobs, sales jobs and other level jobs, the paired comparison method is widely used
because of easiness and cost effective but when there is any thing wrong in such jobs
evaluation is also used for confirmation. The higher jobs like Vice-presidents and present
jobs are evaluated only through the job ranking method.

Pay Packages and employee benefits

Due to hierarchical and nature of jobs the pay packages and benefits plans also varies
from level to level and even from employee to employee.

Lower Level Management

1. Base pay
2. Annual increment
3. Variable pay
4. Individual incentives (varies due performance)
5. Medical allowance
6. Transportation
7. Location charges
8. Utilities (cell phone, limited free service, food etc)
9. Subsidized products
20
Middle Management
1. Base pay
2. Annual increment
3. Individual incentives (varies due performance)
4. Medical allowance
5. Transportation
6. Location charges
7. Utilities (cell phone, limited free service, food etc)
8. Subsidized products
9. Life Insurance
10. Annual bonus
11. House allowance
12. Training and development

Upper Management (Managerial)

1. Base pay
2. Annual increment
3. Management Incentives
4. Medical allowance
5. Location charges
6. Utilities (cell phone, free service, food etc)
7. Subsidized products
8. Life Insurance
9. Annual bonus
10. House allowance
11. Training and development
12. Projects payments
13. Car (Fuel & maintenance)
14. Social club Membership
15. Annual international trips
16. Laptops

21
Upper Management (Directors and above)
1. Base pay
2. Annual increment
3. Annual cash bonus
4. Medical allowance
5. House
6. Car (fuel & maintenance)
7. Utilities Expenses
8. International trips
9. Life Insurance
10. Social club membership
11. Two days off in a week
12. Children welfare allowance
13. Laptops
14. Cell phone and unlimited post paid connection
15. Limited shares option

GAP Analysis
Strong & Weak Points of Mobilink

Strong Points
The employee satisfaction level is higher in comparison to the expected range. The
Mobilink has established a competent HR department consists of 40 HR professional in
order to maximize the motivation and commitment level of the human resource.
The Mobilink has started modifying the management style from the traditional towards
modern style in which they can be able to recognize and reward individual efforts in near
future.
The continuous incentive plan has a positive impact on those employees who has
received, trying their best to sustain this incentive for longer time and also a tool for
motivation to bring up with more innovative efforts to gain this incentive that has not
received.

22
One other organizational incentive of “three gross salaries” compel every employees to
go for best effort impact in order to ensure the achievements of organizational goals for
the specific time period.

Weak points
• Mobilink currently ignores the rewarding of individual efforts. They reward
individual efforts when the company meets the targets. If the company fails to do
so, they don’t rewards those individual who successfully achieved their individual
objectives. Here it may be possible that the objectives assigned by their respective
department are not properly aligned with the organizational goals. So here the
individual suffers on the cost of their upper management.
• The reward system is not properly directed or aligned with the business
objectives; the goal here should be to bring all employees to a common point in
order to create synergy. Because they pay in comparison to the some international
company or findings survey firm.
• The incentives plans are very narrow and limited. It needs to be extended in order
to gain the loyalty and commitment at individual, group and organizational level.
• The base of individual incentives plan is very week and some time non-existing.
• The middle management’s incentive is also not to the extents it is expected from
them.
• The job ranking method is the widely used method in Mobilink, although point
method is also used but limited. The job ranking method doesn’t give enough
information in deciding how much should be given to the individual.
• The performance evaluation is also traditional; no proper performance appraisal
feedback is given to the employees at the end. The training needs assessment is
not tied with the performance results at lower management level.
• The performance evaluation is linear process where is such dynamic organizations
leaner performance evaluation is not effective because the employee’s
performance is measured from multifaceted directions.
• Mobilink don’t go for the implication of “Best-fit approach” but it is stuck with
the initial and old ”Best practice approach”. And one thing more the “Best-
Practice approach” is also used partially.
23
 • Mobilink strategic approach is focused on to sustain or maintain the current
market share in this tough competition, where is such scenario it is unwise to go
for such approach. It should be focused on growth improvement.

Strong and Weak points of Telenor

Telenor has proved itself as real dynamic a firm who has adapted itself in the tough
competition, got major market share from the existing company Mobilink in a very short
time. The Telenor has large number of strong points and few weak points.

Strong points
• Telenor focused on individual performance, have made the reward system in such
a way to recognize the efforts and effectively remunerate these. Therefore the
incentives plans are very diverse and up-to-date.
• The arrangement is very concise in such manner that it even rewards the marginal
higher efforts of individual within the teams or groups.
• The special incentives like “Golden Hellos” and “Golden handcuffs’ are very
efficient in given them the best professional from the market and also the ability
to retain them for life time.
• The performance of individual is even rewarded if the organization fails to
achieve its goal. Once the individual succeed in its targets their rewards are due.
• The Telenor has specific incentives plan for every level and for every nature. The
Management incentives plan is one of the example. This incentive doesn’t exist in
Mobilink.
• The job evaluation method widely used is Point-method. And that’s the reason the
employee satisfaction in Telenor is more than Mobilink because the pay structure
created from the point method are very concise and reflects the efforts granted.
• The pay packages and incentives plans are attractive and gives more
remunerations at all level. Wide range of incentives keeps the employees satisfied,
committed, loyal and productive all the time.

24
 • It’s the outcome of compensation strategies that attracted the competent and key
professional of Mobilink, and retained them for lifetime. Here the Telenor got
competitive edge to have such professional whose have sufficient knowledge of
competitor in deciding which business strategies can result in overtake.
• The performance appraisal in Telenor is multifactor and multifaceted that ensures
the proper and true evaluation of employee.
Weak Points
• The employee’s interrelationship is not strong as it is in Mobilink. The culture in
Telenor is going towards isolated environment where every individual will be
concerned for its own self-interest.
• There are two types of employees. Permanent and contract employees. The
Telenor approach towards the contract employee is not so much devoted as it is
for permanent employees. This may leads to the employee discrimination and the
disloyalty might be result in.
• Their employees are not aware of the reward policies. This is some time good but
some time creates problem. The Telenor has kept confidential the compensation
strategies even from the employees.

Gap Analysis (comparison) of Mobilink and Telenor Compensation Strategies

25
 Incentives Plan Mobilink Telenor Favorable

Individual Incentive Plan

• Commission 75% 50% Telenor
• Bonus pay 5% 80% Telenor

• Cash rewards 10% 65% Telenor

99% 99% Both
• Over-time payments
10% 60% Telenor
• Bonus one month cell phone charges
75% 75% Both
• Leaves in cash
50% 50% Both
• Days off
20% 70% Telenor
• Shift payment and unsocial hours
Group Incentives Plan
• Per unit incentives 80% 10% Mobilink
• Monthly incentives 60% 5% Mobilink

• Continuous incentives 50% 5% Mobilink

40% 80% Telenor
• Project rewards
30% 55% Telenor
• Group cash rewards
80% 90% Both
• Group trips
90% 99% Both
• Remote areas incentives
50% 75% Telenor
• Group annual bonus
30% 75% Telenor
• Special assignment or project provision 70% 80% Both
• Special group meal

This comparison has been drawn in order to magnify the impact or magnitude of each
Incentives Plan Mobilink Telenor Favorable
incentive in both organizations. The Telenor has advantage over Mobilink in Individual
Organizational Incentives
incentives. The reason is that Telenor is paying more attention towards the recognition of
• Bonus pay Payments 99% is that70%
individual efforts. Its main concern Mobilink
if individual efforts are maximized, the
• Cash Bonusorganization will grow that why50%
it has a very85% Telenor incentive plan from the
distinct Individual
• Annual Cash Bonus
Mobilink. 60% 65% Same
Special Incentives
In all other organizational, group and special incentives both organization are almost
• Golden Hellos 30% 85% Telenor
similar in practices. But due to individual incentives it has attracted competent people
• Golden Handcuffs 65% 70% Telenor
from Mobilink.
• RecognitionFurther clarity will be seen from90% 65% Mobilink 26
the salary survey. This is mentioned in next chapter.
90% 65% Mobilink
• Appreciation
 Salary Survey
In order to know the market rate of Human resource in the telecom industry, we
conducted a salary survey in the following telecom organizations
• Mobilink
• Telenor
• Ufone
• Warid
• Zong

Neither of the above organization provided sufficient information to make successful this
survey, because of their information confidentiality issues. However the Mobilink and

27
Telenor has showed very little response to our salary survey questionnaire. The
questionnaire is attached at the end of this report.
The findings of the salary survey in both organizations are as under.
Total number of respondents:
Telenor: 06
Mobilink: 04
Let’s summarize the questions and responses
Respondent Job Position in the Management hierarchy

Upper Middle Lower

Telenor 2 4
Mobilink 3 1
Respondent’s satisfaction from his/her efforts

Yes No Don’t Know

Telenor 4 1 2
Mobilink 4 0 0
Provision of case bonus

Yes No
Telenor 3 3
Mobilink 4 0
Frequency of cash bonuses

Once Twice Three times Irregular

Telenor 4 1 0 1
Mobilink 4 0 0 0
This bonus based on…?
Individual Company Performance 1st and 2nd Pre-decided Don’t know
performance
Telenor 5 0 0 0 1
Mobilink 0 1 2 0 1
Other non-cash benefits
Medical House Allowance Mobile allowance Insurance Food Transport Pension

Telenor 6 4 6 6 0 3 0
Mobilink 4 2 4 3 0 4 0
Organization paying level in comparison to market

Above Middle Below

Telenor 1 4 1
Mobilink 2 2 0

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 Pay fairness

Yes No Don’t know Justified

Telenor 1 3 2 0
Mobilink 2 0 0 2
If employee were the employer than he/she will pay employees

Same More Less

Telenor 1 5 0
Mobilink 4 0 0
Other facilities
Comfortable working Office facilities Flexibility Development opportunities Learning environment
environment
Telenor 5 6 6 4 5
Mobilink 4 2 3 3 3

Comments:
This salary survey indicates that Mobilink has a more stable Human resource system. The
employee satisfaction is higher as comparison to the Telenor. The reason may be that in
Telenor, they are only paying attention towards the individual environment where in
Mobilink the team work culture is more prevailing, It’s may be also concluded from this
survey that the financial rewards is not the only tool for employee satisfaction and
commitment. A combination of intrinsic and extrinsic reward package should be deigned
accordingly keeping the limitation of organizational policies and resources.
Mobilink’s employees have the confidence in Mobilink pay rate that it is externally and
internally equitable while in Telenor where a large number of employees are on contract
based, are paid differently.

Recommendations
• Mobilink should not tied the individual reward with the company performance but
the rewards of individual is should be based on individual efforts and results.
• Mobilink pay structures grow more seniority. This trend may cause de-
productivity in the new innovators and highly active competent people. Therefore
Mobilink should minimize this rate and increase the rate of pay for performance.
• The performance appraisal process of Mobilink should be more concise in the
way where the employee evaluation continues for the whole year. It should

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 replace the linear performance appraisal with the multi-directional performance
appraisal. This appraisal process may be set like
o Planning work and setting expectations
o Monitoring and measuring performance
o Developing the capacity to perform
o Periodically rating performance in a summary fashion
o Recognizing and rewarding good performance
Practicing good performance management requires proficiency in certain
competencies. Competencies are observable, measurable Patterns of skills,
knowledge, abilities, behaviors and other Characteristics that an individual needs
to perform work roles or Occupational functions successfully. Performance
management Competencies that all supervisors (and team leaders) at Mobilink
Should develop and demonstrate include
• The individual incentives plans should be extended up to the competitor scale in
order to lock the exit of the talent from the company. And the individual goal
setting should be aligned properly with the organizational goal, in order to make
effective decision in giving rewards for individual goal achievements.
• The job evaluation method should be set according to the culture and need of the
market. The old fashion of ranking method practice should be reduced by
replacing it with the point-method. This will introduce a culture of performance.
• Mobilink should increase the special incentives plan and incentives for the lower
management as well. Because the lower management carry out the directions of
upper management accordingly.

Conclusion
It is concluded from this report findings that Mobilink is no doubt the market leader in
HR systems but it needs upgrading, renovation and improvement in order to effective
defend the competitors aggressive strategic actions. Mobilink is loosing its market share
as well as key employees to Telenor because Telenor is providing attractive packages.
The Mobilink should start moving towards the culture of pay for performance instead of
paying for tenure of skills. This can be achieved by implementation of effective
performance management and compensation system. Mobilink shouldn’t believe on its
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current workforce but also seek for the best people in the market, because if these best
people are hired by the competitors, this would result in further hardship to defend.
Therefore proper performance appraisal, feedback and rewards should be ensured.

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