Company overview of pakistan telecommunication company limited

family overview of pakistan telecommunication company limitedIntroductionPakistan Telecommunication Company Limited (PTCL) is the largest telecommunication company in Pakistan. PTCL provides telephonic services to the nation and is the backbone for countrys telecommunication infrastructure. The company consists of around 2000 telephone transmutes across Pakistan. They provide the largest repair line (land-line) ne 2rk, currently having 4.8 million fixed line customers. GSM, CDMA and Internet argon other(a) services of PTCL. The Government of Pakistan sold 26% sh ares and control of the company to Etisalat (U.A.Es telecom company) in 2006. The Government of Pakistan retained 62% of the shares while the re main(prenominal)ing 12% are with the general public. PTCL also provides Wireless 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 owned as a subsidiary of PTCL. Ufone has abo ut 6.5 million mobile subscribers and a market share of nearly 25% currently in Pakistan. PTCL has the potential to be an influential means in Pakistans economic growth. It has laid the Optical Fiber Access Network technologies in major metropolitan cities of Pakistan. (Retrieved from http//www.ptcl.com.pk).Privatization of PTCLThe process 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 bidders qualified for the final bidding which held on June 18, 2006. Dubai establish company Consortium of Emirates Telecommunication Corporation (Etisalat) and Dubai Islamic Bank, Etisalat International Pakistan (EIP) gave the highest bid US $ 1.96 per share, equivalent to PKR 117.01 per share, which translates into US 2,598,960,000 (2.599 billion) or PKR 155,157,912,000.00. (Retrieved from www.go-pakistan.com). After the purchase of shares of PTCL Etisalat was give on the wholeowance to fully control the counmerchandising, which is against the provisions of Companies Ordinance of Pakistan, 1984.This deal has also created much of a drama within the company as well. The employees of PTCL resist this deal and in that respect had been strikes in PTCL offices to oppose this. As many as 40,000 people pull up stakes quit the job through Voluntary Separation Scheme (VSS) offered by the PTCL management. 60 percent of employees may opt for VSS. Among the 44,000 employees 26,400 testament quit the services who dumbfound served the organization for as many as 20 years. The cases had been signed by opposition, employees of PTCL against all this scenario and they are still waiting in Supreme Court for hearing.After privatization of PTCL, the company remained encircled by various controversies and disputes, mainly due to bad management by PTCL administration and lack of interest from Government. All this resulted in bringing down the net profit o f 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 rising contract named as U.P.S (Unified Pay Scale). U.P.S highlighted that the anterior 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 alter by U.P.S. Employees believe that U.P.S was bought in PTCL to qualifying the status of the employees to contractual status, or else of their permanent ones which was present before. Government had promised the employees that they would be receiving facilities like, pay home/allowances up gradations, save they were never fulfilled, as the event of privatization had taken place.Significance/Rationale of the studyThe signif icance of this study is to identify the post effects of privatization on the employees of PTCL. We ordain be identifying the take of mirth of the employees by and by the privatization of PTCL. The executing of their employees and similar other indicators pull up stakes exuberate the dedication of employees to this organization. There is a need for a study concerning how employees perceive changes in their employment system, since this process will result in the change of the management and the policies that were present in PTCL before privatization. Generally, a well prompt and a fulfil 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 contentment of employees. This is bad for the organization 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 l evel of employees. This research will look upon the status of employees in PTCL after privatization, curiously those employees who had been working in PTCL for to a greater extent than twenty years and on the variables that invite their squeeze on the PTCL employees. Finding out the consequences that the employees had to face after privatization is also the field of view of interest.Research objectivesThe research objectives of this study are as followsTo down the stairsstand the effects of privatization on the PTCL employees.To study how the job satisfaction of the employees is affected after privatization of PTCL.To investigate how the employees work-related attitudes and make down changed after privatization of PTCL.To assess the needs of PTCL employees at different hierarchy level.Research questionsThe questions posed by the researcher in this study areHow are the employees affected by privatization of PTCL?What are the reasons for satisfaction/dissatisfaction of the empl oyees of PTCL?How to augment 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 Islamabad/Rawalpindi.Time constraint.Resource constraints.Set of variablesLiterature ReviewConcepts and definitionsPrivatization can be entirely 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 inviolable from the government pixilatedament to the private sector. It can be accomplished by sale or lease such as government selling 100% of an enterprise or selling 51% or even by selling a minority stake as long as the private sector is given full managerial (management) control. In financial terms, privatization means transferring a company from one whose shares are listed on the stock exchange and can be bought by th e 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 subvert the depletion of Government resources caused by losses of the state owned enterprises, this mostly createsgreater opportunities for the private sector to expand and modernizethese enterprises. Productivity, efficiency, profitability increases and the information of a rich capital market occurs which releases resources for instruction of the social and physical infrastructure. The process of privatization has some disadvantages as well. Private firms tend to be more efficient and cost telling 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 prepare contracts for life time job in privatization, which they do commence in the public sector.Hassan (2008) stated that Saudi Arabia is experiencing the expenditures of public sector . Privatization does have an impact on employees in public organizations. When there is a policy of gradual privatization, the old employees are trained in a certain 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 pickaxes). This increases their interest in the company and they become more motivated and satisfied. The resultant is good governance and profit. During the privatization period there should be certain specialized organizations who should be allowed to take part in processes in order to breakthrough solutions or relocation 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 output w as 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 lucre cuts and job losses. The new management of privatized firms reduces the organizations labor costs as harder budget 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, past 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 higher skills, thus they get 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. Some of them are, role confusion, role over-load and under load, new-work relationships, job insecurity, career advancement/future trainings and deterioration of working conditions. All these factors may lead to physical health symptoms such as headaches, depressions, cardiovascular diseases, tensity 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 have 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 t hat employees at higher positions are better able to handle uncertainty, as they are having more access to resources that jock improve the possible negative consequences of privatization. Higher level executives tend to report less suffering than other employees during privatization. The employees present at the lower hierarchic levels, who have fewer resources for handling 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 Analysis of literatureThe articles in the literature betray that privatization in the major parts of the world has created dissatisfaction amongst employees. Apart from the advantages of privatization to the firm itself and the employees, the method causes the firms to become cost effective, which means that dow nsizing 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 get 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 military service us in making out theoretical frameworkFear of hypothecate insecurityStock- resource planFringe BenefitsEmployees Union cooking and developmentRewards to the employees facts of life 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 multivariate. Other factors will be affecting the satisfaction level of the employees of PTCL after privatization transferly.In mutualist shiftingsFear of Job insecurityEmployees will have a eonian fear 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 sensation of control and involvement in the firm. If this option is not given to the employees, they would be considerably dissatisfied and de-motivated.Fringe BenefitsFringe benefits such as paid leaves, housing allowances, travel/fuel allowanced etc increase the satisfaction level of employees. In a private fi rm, paid leaves are cancelled and are declared null and void.Employees UnionThe Employee Unions protect and safeguard the laws/rights of employees. Basically, its a upkeep and the voice of employees. They are very helpful in resolving the disputes between the employees and the employers. Private firms usually put a stop to all the legal jointures 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 salary packages are the employee essential reasons for the satisfaction levels of employees.Proposed Research MethodologySample SelectionSampling involves selecting individual units to measure from a larger population. The population refers to the set of individual units which the research question seeks to remember out about. The Sample would consist of the employees that are working in Islamabad only. Our sample will base on every nth employee of PTCL in Islamabad. We will take every 10th employee of PTCL in Islamabad as our sample.Sampling framesThe ingest frame is the group of individuals who had a real chance of being 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 regular and 8,000 contractual).Unit of AnalysisOur target is not towards the collective communities in the data collection stage, but instead 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 penning 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, open 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 PRIVATIZATIONPlease show your level of agreement by marking tick () against each avermentKey5 = SA Strongly Agree 4 = A Agree 3 = N Neither Agree Nor Disagree= DA Disagree 1 = SD St rongly DisagreeFear of Job insecuritySD D N A SAQ1) I fear that I will be replaced by other 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 price.12345Q4) My Company gives stock-options/shares instead of cash 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 the 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 pr ogression.12345 SD D N A SASD D N A SAQ9) Rewards are offered to employees on a timely basis.12345Q10) Rewards are given in pecuniary/nonmonetary forms.12345Q11) Project/goal culmination in early timeframe and high achievers get rewards practically.12345Rewards to the employeesEmployee SatisfactionQ12) I am satisfied with the work assigned to me in this organization.12345 SD D N A SAPersonal 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 Middle 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 worth(predicate) 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 va lues 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 strongly 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 between two attributes. It is also known as the Pearson product-moment correlation coefficient. The value of coefficient can revolve from -1 to +1.Consider the variables x and y If r = -1, then x and y are perfectly negatively correlated. 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 unionGoal completion and high achievers get rewards practicallyEmployee SatisfactionFear of replacing by some other employee0.902-0.7873-0.8640Stock-options/shares instead of cash bonuse s0.5048Travel 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 employee. 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. reversalRegression analysis is a statistical technique that is used to analyze 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 intercept/ constantb= tipX= In symbiotic VariableDependent Variable Employee SatisfactionIn subject Variable Fear of Job insecurity, Stock-option plan, Fringe Benefits, Employees Union, Training and development, Rewards to the employees.TABLE 1RegressionDependent Variable Employee SatisfactionIndependent Variable Fear of Job insecurity, Stock-option plan, Fringe Benefits, Employees Union, Training and development, Rewards to the employees.TABLE 2TABLE 3As shown in Table 3 the value of constant 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 fetching 1.360 as constant then its shift B would be -0.291putt the values in the Y= a + bX, we getY= 1.360-0.291 XJob Satisfaction = 1.360-0.291 (Fear of downsizing)Significance take aim = 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 slope B would be 0.080Putting 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 occupy 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 getY= 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 oth er. 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 employeesTimely 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 Satisfaction = 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 satisfacti on 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. Employees 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 sa feguard the rights of employees. Employees responses were strongly disagree that there were no Employees Union present in their organization. Basically these unions proceed unfair measures from happening 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 appreciate the employees who complete their Projects/goals before time rewards should be given to them so that they get motivated and satisfied and achieve high.