Evaluating Human Resource Management in Pakistan Telecommunications

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The Human Resource Management (HRM) includes a lot of activities related to staffing, recruiting, training and dealing with performance issues. It also include making employees compensation and benefit packages and also maintain employees record The role of human resource management in organization is at counter stage. Managers are aware that HRM is a function that must play a vital role in the success of organization. It is an active participant in planning the strategic course an organization must take place to remain competitive, productive and efficient. Its focal point is people; people are the life blood of the organization. The uniqueness of HRM lies in its emphases on the people in work setting and its concerns for the well living and comfort of the human resources in an organization. The HRM function is much more integrated and strategically involved. HRM and every other functions must work together to achieve the level of organization. Effectiveness required competing locally and internationally.

Role of Human Resource Management in Telecom:

The role of HR in telecom is of utmost importance as numerous competitors have entered the arena.HR plays a pivotal role to remain competitive in the environment.

HRM increase the communication, coordination and involvement so that chances of misunderstanding will be minimum. Even in organizations with educated and experienced staff, due to the lack of cooperation on part of the management, the department cannot carry out its functions.

The basic concept of HRM is to attract and retain the right person at right place in right time with right salary. In telecom, HRM should appoint the skillful employee at the right place where he expresses his capabilities, because if we place non-qualified people at the call centers then he will face so many problems. For telecom, it is compulsory that the company treat the employee as an asset of the company. In telecom, a major issue is the wages and salary with time, so HR takes care about that and make structure in such a way that it satisfies both; employees and management .HR play just like a bridge between management and employees.

In telecom, proper training of employees is mandatory; the HR department makes sure that the employee is given adequate training before asked to perform the job.

Overview of Telecommunication Sector of Pakistan:

Pakistan telecommunication authority was formed to bring telecommunication sector of Pakistan at par with other developed countries PTA is working to promote investment in telecommunication sector, encourage and regulate competition and protect consumer's interest and to work in best interest of both customers and companies. It started with the implementation of deregulation reforms in the telecommunication sector so that the monopoly of Ptcl should be reduced which helped in bring more foreign investment and encouraged competition.

In July 2004 deregulation policy was introduced which was done in order to stop the monopoly of Ptcl and further in January of 2004 cellular network regulation was introduction in order to give licenses to mobile phone operators.


The first phase of deregulation was completed successfully due to that a lot of new licenses were issued including 12 long Distance and International, 76 Fixed Local Loop and 92 Wireless Local Loop licenses.

Due to deregulation whole telecommunication industry has been revolutionized, which has changed the complete telecommunication scenario and different landmark are achieved. Now all the telecommunication giants of the world are operating in Pakistan which is done by breaking the monopolies. This has significantly increased the quality of the services provided and the prices are decreased by many fold.

A huge increase of investment is seen in the telecommunication sector since 2004 which has made this sector mode competitive and efficient and a lot of job opportunities are opened and this has helped in contributing to elevate poverty in the country.

Role of Compensation in Telecom Sector:

Employee compensation has a very role in the lives of employees and their families by helping in health needs, future financial security, needed absences from work, and more. This compensation includes different factors like medical insurance, retirement benefit, educational plan for children, training and commissions and maternity leaves for women.

In telecom, employee benefits play a vital role because firms tend to have a mix of part time and full time employees. Part-time employees are rarely offered benefits. This could create an impression of discrimination in the minds of the part time workers and would demotivate them. To tackle this issue, the companies have started designing compensation packages for them also.

In telecom, generally the benefits that are given are health benefits, phone allowance, fuel, sick leaves and bonuses. Rewards are given to employees on the basis of their performances and dedication towards the organization. These benefits really help the employee morale and make them feel enthusiastic at work

Background Information

Past compensation research has largely reflected organizational characteristics and personnel practices that had an internal rather than an external focus. Internal labor markets typically characterized organizations following WWII up until the 1980s. Consequently compensation research focused on issues related to managing compensation in this type of structure that emphasized areas such as internal equity, job evaluation, and individual reactions to pay. Recent changes in the environment have resulted in a greater role of external factors, such as external labor markets, market pricing, and external competitiveness, on compensation practice. While practitioners today have more of an external focus in compensation system design, present compensation research has not kept pace. In the following paper we argue there is a need to redirect future compensation research to include a consideration of external factors.

As the time has passed, the compensation system has witnessed a drastic change in the past two decades including "job classification system, salary ranges, and pay policies and procedures. For example, in Telecom industry dissimilar jobs were often found in the same salary range. Today there is a set of 8 to 10 salary ranges for every role. The salary range is assigned based on market data for that job. If no market data is available for a specific job, the job is slotted into a range based on other factors, such as other jobs in the department, similar jobs in the company, or recruitment and hiring experience" (Mark A Thomsan 2004). These are the set of changes that have changed place according to Mark A Thomsan (2004).

In the older days, the employees were given limited benefits, which included pay raise or job promotion. In today's world, the salary packages are fully loaded with fringe benefits which include medical, sick leaves and other allowances. Nowadays, it has become very hard to recruit and retain skilled employees, so these measures offer the motivation to stick with a particular job.

Today every firm is involved in head hunting of its competitor's employees. The firm offers them a better salary package then what they are getting in their current job to attract them towards their company.

Research Significance with respect to Pakistan and World:

Success of any organization rests on the contribution of its Human Resource. As the time has passed, the contribution of employees is considered a pivotal source of success of an organization. Therefore, employee satisfaction should be a company's main goal to recruit and retain employees.

One of the ways to ensure that the employees are satisfied and committed towards the job is to compensate them on a regular basis. This would not only motivate them towards the work but also save high costs of the company which could arise because of high turnover if otherwise. Commitment and dedication towards the work can make an average employee work better than the one who is highly skilled but demoralized. This study aims to provide the policies to compensate and reward the employees that would help the companies with an environment which would foster creativity and motivation. If the employees are not motivated they would not be giving their 100% at work as a result the organization's performance would have an adverse effect.

As employees are the largest cost and the largest human capital source of an organization, understanding factors which contribute towards building commitment is necessary for an organization to prosper.

It is clear that compensation/benefit policy can have a sizable impact on employee turnover, motivation, performance, and attitudes. However, because of changing employee and employer needs, coupled with stagnant reward systems and outdated benefit plans, most compensation/benefit programs are far from optimal and almost all programs will undergo substantial redesign in the next decade.

This research will help the telecommunication companies in Pakistan in such a way that the human resource department of different companies will know that how they should formulate their compensation package and what are the main factors that are influence the employees of the telecommunication sector. In this way companies can reduce their employees turn over hence employees will be committed to their work hence will generate profits for the company and company will not have to spend on hiring new employee and spending time and money on training them.