Professional Documents
Culture Documents
MANAGEMENT(823)
ASSIGNMENT NO. 2
By:
Muhammad Amjad Baig
508195520
Submitted to:
Respectable Tutor
Mr. Kanwar M. Anwar
H. No.158-B, St No. 94,
G-6/1-4, Islamabad.
AIOU, ISLAMABAD
Assignment No. 2 Project Management (569)
ACKNOWLEDGEMENT
All praise to Almighty Allah, the most merciful and compassionate, who give
me skills and abilities to complete this report successfully
I am greatful to our respectable tutor Mr. Kanwar M. Anwar, for his kind
guidance and support. And also the support & guidance of Mr. Asad Hussain, PA
to SM HR, PTCL, Headquarters, Islamabad for providing me relevant information
to prepare & complete my case study.
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Assignment No. 2 Project Management (569)
ABSTRACT
This report is based on the theoretical and practical research on the future of
wage & salary administration function.
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Assignment No. 2 Project Management (569)
CONTENTS
• TITLE PAGE 1
• ACKNOWLEDGEMENT 2
• ABSTRACT 3
• TABLE OF CONTENTS 4
• HUMAN RESOURCE MANAGERIAL FUNCTIONS 5-6
• COMPENSATION MANAGEMENT 7
• CLASSIFICATION OF WAGES 8
• INTRODUCTION TO WAGES AND SALARY ADMINISTRATION 9
• FACTORS INFLUENCING WAGE AND SALARY STRUCTURE 10-
13
AND ADMINISTRATION FUNCTION
• ADMINISTRATION OF WAGES AND SALARIES 13
• PRINCIPLES OF WAGES AND SALARY ADMINISTRATION 14-
15
• PRACTICAL STUDY OF THE ORGANIZATION
INTRODUCTION 16
• COMPANY PROFILE 17
VISION 18
MISSION 18
CORE VALUES 18
• BOARD OF DIRECTORS 19
MANAGEMENT 20
ORGANIZATIONAL STRUCTURE 21-23
• NUMBER OF EMPLOYEES IN FINANCE SECTION 24
FINANCE & ACCOUNTING SYSTEM OF PTCL 25
• ACCOUNTING SYSTEM OF PTCL 26-
27
• FINANCE SYSTEM OF PTCL 28-
31
• WAGE & SALARY ADMINISTRATION FUNCTION OF PTCL
• ROLES AND RESPONSIBILITIES 31
• REVIEW AND APPROVAL REQUIREMENTS 32
o ONE-LEVEL-UP SUPPORT
o WING/DEPARTMENT REVIEW AND SUPPORT
o REVIEW AND APPROVAL MODIFIED STAFF WAGE AND SALARY
o GUIDELINES
• PRINCIPLES 32-34
o MINIMUM PAY
o ACCOUNTABILITY
o PAY PRACTICES
o PAY COMPARISONS
o FUNDING
o ANNUAL PAY INCREASES
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Assignment No. 2 Project Management (569)
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Assignment No. 2 Project Management (569)
1) - Planning:
2) - Organizing:
3) - Directing:
4) - Controlling:
Operative Functions:
Human resource manager’s tasks are concerned with specific activities of
the recruitment and selection training, compensation and maintenance an
efficient workforce.
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Assignment No. 2 Project Management (569)
It is concerned with the aim of the selecting right person for the right job. It
consists of the following activities.
a – Job analysis
b – Human resource planning
c – Recruitment
d – Selection
e – Placement
f – Induction and orientation
2) - Training Functions:
Human resource manager has to improve the knowledge, skills aptitudes and
values of employees so that they can perform the present and future jobs more
effectively. It consists of the following activities,
a – Performance Appraisal
b – Training
c – Executive Development
d – Carrier Planning and Development.
3) – Compensation Function:
It deals with the equitable and fair remuneration to employees for their
contribution to the attainment of organizational objectives. It consists of the
following activities,
a – Job Evaluation
b – Wage and Salary Administration
c – Bonus
4) – Coordinating Functions:
It is the process of reconciling the goals of the cooperatives with those of its
members. Coordination involves motivating employees through various financial
and non-financial incentives, providing job satisfaction, handling employee’s
grievances through formal grievance procedures, collective bargaining, and
worker’s participation in management, conflict resolution, developing sound
relation employee counseling improving quality of work life, etc.
5) – Maintenance Functions:
It deals with protecting and promoting the physical and mental health of the
employees. For this purpose several types of fringe benefits such as housing,
medical aid, educational facilities, conveyance facilities, etc. are provided to
employees. Social security measures like provident funds, gratuity, and maternity
benefits, injury, disablement allowance, group insurance, etc., are also arranged.
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Assignment No. 2 Project Management (569)
COMPENSATION MANAGEMENT
Total Compensation =
Wages
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Assignment No. 2 Project Management (569)
Salary
• Meaning Oxford Dictionary - meaning “ Fixed periodical payment to a person
doing other than manual or mechanical work”
• It refers to monthly rate of may, irrespective of the number of hours put by an
employee
• Compensation to an employee for service rendered on a weekly, monthly or
annual basis.
Incentives
• Are paid in addition to wages and salaries. Incentives depend upon
productivity, sales, profit or cost reduction efforts
• Individual incentive scheme
• Group Incentive Scheme
Fringe benefit
• This include such employee benefits as provident fund, gratuity, medical care,
hospitalization, accident relief and group insurance, canteen, uniform
recreation
Perquisites
• These are allowed to executives and include company car, club membership,
paid holidays, furnished homes, stock option schemes and the like
• Perquisites are offered to retain competent executives
Dearness Allowance
• Dearness allowance (D.A.) is part of a person's salary. D.A. is calculated as a
percent of the basic salary. This amount is then added to the basic salary
along with house rent allowance to get the total salary. Rates vary as per
rural/urban areas
Non-Monetary Benefits
• This include challenging job responsibilities, recognition of merit, growth
prospects, competent supervision, comfortable working conditions, job sharing
and flexi-time
CLASSIFICATION OF WAGES
• The International Labour Organization (ILO) in one of its publication, classified
wages as under :
A) Minimum wages
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Assignment No. 2 Project Management (569)
B) Fair Wages
C) Living Wages
Minimum wages
• It has been defined by the committee as “The wage which must provide not
only for the bare sustenance of life, but for the preservation of the
efficiency of the worker.
•
• The minimum wages must provided for some measure of education medical
requirements and amenities
•
• It should provide fro the substances of worker’s family members, for the
medical care and for some amenities
Fair Wage
• According to committee of Fair Wages : “ It is the wage which is above the
minimum wage but below the living wage”
• The lower limit of fair wage is obviously the minimum wage. The upper limit
is set by the “capacity of the industry pay”. Between these two limits, the
actual wages should depend on considerations of such factors as
Living wages
• It defined a Living Wage as “One which should enable the earner to provide
for himself and his family not only the bare essential of food, clothing and
shelter but a measure of frugal comfort, including education of his children,
protection against ill health, requirement of social needs and a measure of
insurance against the more important misfortunes including old age”.
Job evaluation results in fixing salaries and allowances etc. for the post(s) in an
organization. This is not a one-time job. Posts keep on changing according to
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Assignment No. 2 Project Management (569)
One of the more complex functions under this element is to authorize ad-hoc or
special allowance to persons doing some special work or working under certain
circumstances. The main difficulty here is that such allowances should not upset
the salary structure or create discontentment among others who handle similar
work or works under similar circumstances without the benefit of additional
allowances (such as " secretariat allowance" "unattractive area allowance" etc).
The Task of personnel management, in this respect, is to compensate the
deserving persons without upsetting the prevailing balance in salaries and
allowances well in time.
The first and the most important problem in wage and salary administration is the
establishment of base compensation for the job. This problem is enormously
complicated by such factors as Supply and Demand, Labor organization, the
firm’s ability to pay, Variations in productivity and Cost of living, Government
legislation, Including CIVICS RIGHTS ACT.
In order to attract and retain needed personnel for the organization, employees
must perceive that compensation offered is equitable in relation to their inputs
and relative contributions. The most likely to be used method to solve this
problem at present would be job evaluation, a systematic and orderly process for
establishing the worth of job.
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Assignment No. 2 Project Management (569)
these units pay minimum wage rates required by labour legislation, and recruit
marginal labour. At the other extreme, some units pay well about going rates in
the labour market. They do so to attract and retain the highest caliber of labour
force. Some managers believe in the economy of higher wages. They feel that, by
paying high wages, they would attract better workers who will produce more than
average worker in the industry. This greater production per employee means
greater output per man hour. Hence, labour costs may turn those existing in firms
using marginal labour. Some units pay high wages because of a combination of a
favourable product market demand, higher ability to pay and the bargaining
power of trade union. But a large number of them seek to be competitive in their
wage programme, i.e., they aim at paying somewhere near the going rate in the
labour they employ. Most units give greater weight to two wage criteria, viz, job
requirements and the prevailing rates of wages in the labour market. Other
factors, such as changes in the cost of living the supply and demand of labour,
and ability to pay are accorded a secondary importance.
A sound wage policy is to adopt a job evaluation programme in order to establish
fair differentials in wages based upon differences in job contents. Beside the basic
factors provided by a job description and job evaluation, those that are usually
taken into consideration for wage and salary administration are:
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Assignment No. 2 Project Management (569)
If the demand for certain skills is high and supply is low, the result is a rise in the
price to be paid to these skills. When prolonged and acuter, these labour market
pressures probably force most organizations to reclassify hard to fill jobs at a
higher level” that suggested by the job evaluation. The other alternative is to pay
higher wages if the labour supply is scarce; and lower wages when it is excessive.
Similarly, if there is a great demand for labour expertise, wages rise; but if the
demand for manpower skill is minimal, the wages will be relatively low. The
supply and demand compensation criterion is very closely related to the
prevailing pay, comparable wage and on going wage concepts since; in essence,
all of these remuneration standards are determined by immediate market forces
and factors.
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Assignment No. 2 Project Management (569)
Wage and salary administration should be controlled by some proper agency. This
responsibility may be entrusted to the personnel department or to some job
executive. Since the problem of wages and salary is very delicate and
complicated, it is usually entrusted to a Committee composed of high-ranking
executives representing major line organizations. The major functions of such
Committee are:
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Assignment No. 2 Project Management (569)
This Committee should be supported by the advice of the technical staff. Such
staff committees may be for job evolution. Job description, merit rating, wage and
salary surveys in an industry, and for a review of present wage rates procedure
and policies.
Alternatively, the over all plan is first prepared by the Personnel Manager in
consultation and discussions with senior members of other departments. It is then
submitted for final approval of the top executive. Once he has given his approval,
for the wage and salary structure and the rules for administration, its
implementation becomes a joint effort of all heads of the departments. The actual
appraisal of the performance of subordinates is carried out by the various
managers, who in turn submit their recommendations to higher authority and the
latter, in turn, to the personnel department. The personnel department ordinarily
reviews recommendations to ensure compliance with established rules of
administration. In unusual cases of serious disagreement, the president makes
the final decision.
The generally accepted principles governing the fixation of wages and salary are:
a) There should be definite plan to ensure that differences in pay for jobs are
based upon variations in job requirements, such as skill effort, responsibility or
job or working conditions and mental and physical requirements.
b) The general level of wages and salaries should be reasonably in line with that
prevailing in the labour market. The labour market criterion is most commonly
used.
c) The plan should carefully distinguish between jobs and employees. A job
carries a certain wage rate, and a person is assigned to fill it that rate. Exceptions
sometimes occur in very high level jobs in which the job holder may make the job
large or small, depending upon his ability and contributions.
d) Equal pay for equal work, i.e., if two jobs have equal difficulty requirements,
the pay should be the same, regardless of who fills them.
f) There should be a clearly established procedure for hearing and adjusting wage
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Assignment No. 2 Project Management (569)
g) The employees and the trade union, if there is one, should be informed about
the procedure used to establish wage rates. Every employee should be informed
of his own position, and of the wage and salary structure. Secrecy in wage
matters should not be used as a cover up for haphazard and unreasonable wage
programme.
h) The wage should be sufficient to ensure for the worker and his family
reasonable standard of living. Workers should receive a guaranteed minimum
wage to protect them against conditions beyond their control.
i) The wage and salary structure should be flexible so that changing conditions
can be easily met.
j) Prompt and correct payments of the dues of the employees must be ensured
and arrears of payment should not accumulate.
l) The wage and salary payment must fulfill a wide variety of human needs,
including the need for self-actualisation. It has been recognized that “money is
the only form of incentive which is wholly negotiable, appealing to the widest
possible range of seekers. Monetary payment often acts as motivation and
satisfies interdependently of other job factors.
Desire to maintain or enhance the company’s prestige has been a major factor in
the wage policy of a number of firms. Desires to improve or maintain morale, to
attract high caliber employees, to reduced turnover, and to provide a high living
standard for employees as possible also appear to be factors in management’s
wage policy decisions.
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Assignment No. 2 Project Management (569)
INTRODUCTION
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Assignment No. 2 Project Management (569)
The year 2006-07 in the telecom sector was marked by the phenomenal
growth in the mobile sector in Pakistan, which doubled its subscriber base to 60
million. The teledensity increased from 26% to 40%, helping to spread the
benefits of communication technology across the country. PTCL ’s mobile phone
subsidiary Ufone’s subscriber base grew by more than 87%, from 7.49 million to
14 million. The year also witnessed the entry of major telecom companies, most
notably China Telecom and Singtel, into market.
The privatization of the company was completed in the FY06, following the
purchaser of 26% ‘B’ class ordinary shares by Etisalat International Pakistan L.L.C.
EIP took over management control on 12th on April 2006.
In short PTCL has been working vigorously to meet the dual challenge of
telecom development and socio-economic uplift of the country. This is
characterized by a clearer appreciation of ongoing telecom scenario wherein
convergence of technologies continuously changes the shape of the sector.
COMPANY PROFILE
With employee strength of 30,000 and 5.7 million customers, PTCL is the
largest telecommunications provider in Pakistan. PTCL also continues to be the
largest CDMA operator in the country with 0.8 million V-fone customers.
PTCL has laid an Optical Fibre Access Network in the major metropolitan
centres of Pakistan and local loop services have started to be modernized and
upgraded from copper to an optical network.
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Assignment No. 2 Project Management (569)
Vision
The future is unfolding around us. In times to come, we will be the link that allows
global communication. We are striving towards mobilizing the world for the
future. By becoming partners in innovation, we are ready to shape a future that
offers telecom services that bring us closer.
Mission
Core Values
• Professional Integrity
• Customer satisfaction
• Team Work
• Company Loyalty
• Corporate Information
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Assignment No. 2 Project Management (569)
Board of Directors
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Assignment No. 2 Project Management (569)
Management
• Walid Irshaid
President & Chief Executive Officer
• M. Mashkoor Hussain
S.E.V.P (Operations)
• Fazal Hussain
S.E.V.P (Corporate Affairs)
• Sikandar Naqi
S.E.V.P (Special Projects)
• Farah Qamar
Company Secretary
Organizational Structure
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Assignment No. 2 Project Management (569)
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Assignment No. 2 Project Management (569)
At this level there is one head SEVP (Finance) who controls the
functions of FINANCE, ACCOUNTS, and REVENEU with the assistant of EVP in their
respective within the Region, Director Accounts has Senior Revenue Officers in his
area of Finance Jurisdiction on Division Level. The Senior Revenue Officer, usually
the head of Finance Division and Revenue Officers then supervised on District
level.
SEVP (Finance)
EVP (Finance), (Accounts) & (Revenue)
The Director (Finance),(Accounts) & (Revenue)
On the Regional Level comprising two or three Divisions.
The Senior Revenue Officers on Division Level
The Revenue Officers on District Level
In view of the challenging scenario PTCL has to take bold steps regarding its
organizational structure in order to demonstrate that PTCL has set-up arms-length
relationships among the staff. There should be separation of Finance Wing from
the Engineering Wing. Finance Wing should give liberty to take the decision in
their favor. Management has to take the strategic decisions, the clear and
institutionalized arrangements.
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Assignment No. 2 Project Management (569)
SEVP (FINANCE)
EVP
EVP (Finance) EVP(Revenue)
(Accounts)
GM
GM (Finance) GM (Revenue)
(Accounts)
Director
(Finance)
General Manager of the
Director Region. He will report to the
(Revenue) SEVP (OPS) as well as any
officer designated by C.E
Director
(Accounts)
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Assignment No. 2 Project Management (569)
There are about 15987(2006-2007) employees are working in the PTCL, which
are being divided into categorically here under
The PTCL FINANCE & ACCOUNTING system is actually divided into three wings.
1- FINANCE
2- ACCOUNTS
3- REVENUE
1) FINANCE
The SEVP (FINANCE) is concerned with the makeup of the all type of
financial decisions especially in the context of acquisition, financing and
management of all assets with some goal in mind. The EVP (Finance) with the
General Manager (Finance) extend their expertise in the decision making process.
2) ACCOUNTS
3) REVENUE
Here the SEVP (Finance) is once again concerned by heading the EVP
(Revenue) and General Manager (Revenue) to deal with all Revenue matters. One
Director Revenue within the Region assist to implement and control the inflow of
Revenue and Reconcile it with the PTCL Headquarters Islamabad.
The PTCL is actually the Revenue Generation organization. PTCL Collect the
Revenue from the following modes.
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Assignment No. 2 Project Management (569)
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Assignment No. 2 Project Management (569)
In PTCL the rules contained in the special volume of the PTCL under which the
SEVP (FINANCE) is responsible for creating the procedure of Accounting matters.
CAPITAL EXPENDITURES
MINOR EXPENDITURES
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Assignment No. 2 Project Management (569)
SALARIES OF STAFF
The monthly salary of the staff is rest with the approval of PTCL H.Q Islamabad.
PTCL is spending lot of amount on the salaries.
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Assignment No. 2 Project Management (569)
Finance planning
On PTCL HQ Islamabad, SEVP (Finance) is, who with the concurrence with
the CEO for making all the Finance Planning that’s way the PTCL has to inject the
money in order to boost up the business and in order to complete the stiff
competition faced in the telecomm sector. Before taking any decision regarding
financial planning the draft could be presented before the Board of Governors. In
this section there is need of financing either in the WLL (wireless local loop)
sector or wire-line or mobile operator services.
PTC is very organized organization and it has also its fixed as well with the
current asset. So there are many experts in order to keep the eye watch on the
PTCL infrastructure, for example Director (Fixed Assets) is responsible for the
maintenance and repair of the building and machinery on the Regional level.
PTCL financial structure is in the safe hands the basic qualification for the
post of Assistant Accounts Officer is MBA (Finance) and for the SEVP (Finance) the
incumbent should possess the degree of MBA with ACMA & CA. Due to such fresh
blood the young and energetic financial management taking some bold decision
the results of which are awaited up till.
FUNDING OF PTCL
MOBILIZATION OF FUNDS
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Assignment No. 2 Project Management (569)
GENERATION OF FUNDS
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Assignment No. 2 Project Management (569)
Security deposits
Various pay card companies like Dancom, World call, Pearl Tel, Soft tech,
deposited huge amount as the securing deposit in the books of PTCL for the
media that is being used by these companies. PTCL is utilizing these security
deposits.
Return on deposits
After payment the dividend to the share holders and having paid the
income tax on the profit the surplus amount is being used in the deposits of
various national and multinational banks from where ROD is received accordingly.
Dividend Income
PTCL some time itself purchases the share from the open market and earn the
dividend income thereof. It is also possibly that PTCL if applicable may detain the
shares of different other companies and earn the dividend.
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Assignment No. 2 Project Management (569)
ALLOCATION OF FUNDS
Against all purchase orders issued by the PTCL H/Q’s Islamabad payment
made after allocation of Funds which further allocated by the Regional offices.
The funds usually allocate in order to manage the following: -
These Staff Wage and Salary Guidelines provide departments with a framework
around which those internal procedures must be developed and executed. From
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Assignment No. 2 Project Management (569)
time to time, the Staff Wage and Salary Guidelines may be modified because of
special circumstances that require additional restrictions, changes in procedure,
or levels of approvals.
Failure to comply with the requirements set forth in university and department
policies will be cause for disciplinary action, up to and including termination.
The Executive Vice President reviews request and determines final approval
for all discretionary bonuses, mid-year pay increases, overload compensation,
merit increases in excess of 3% for eligible staff
Principles
1. Minimum Pay –
All departments must comply with Govt of Pakistan law including minimum pay
requirements, minimum wage and salary rates, time and record
keeping, overtime pay requirements and pay periods
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Assignment No. 2 Project Management (569)
2. Accountability –
3. Pay Practices –
Supervisors are accountable for and expected to establish and maintain pay in
accordance with these staff wage and salary guidelines and the additional
requirements which are prescribed by the president, executive vice president and
senior vice president for administration. When determining wage or salary rates
or other compensation, perquisites and non-standard benefits, factors such as
marketplace comparisons, the education and experience of the individual, fair
and equitable distribution among employees in the same or similar position
classifications, individual performance, and available funding must be considered.
4. Pay Comparisons –
The compensation staff in Payroll Section is available to assist departments in
reviewing compensation on a case-by-case basis. The compensation staff will
provide departments with salary/wage averages by position.
5. Funding –
Funding for staff compensation is allocated during the budget approval process
each fiscal year. Changes to this allocation may only be made during the annual
budget approval process or through a specific mid-year budget amendment or
modification request, which has been reviewed and approved by the competent
authority.
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Assignment No. 2 Project Management (569)
merit-based and should vary according to individual performance and the amount
of funding available.
Every employee should be informed, in writing, of his or her annual merit increase
and new rate of pay, if applicable, before July 1. The reason for the amount of the
increase, or lack thereof, should be described and documentation must be
retained in the employee’s file.
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Assignment No. 2 Project Management (569)
SWOT ANALYSIS:
Strengths
Weakness
Opportunities
Threats
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Assignment No. 2 Project Management (569)
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