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This research document is written to show the lack of Management in an organization with respect to a privatization of a Govt. Organization due to lack of management and poor policies of the Govt. This document is complete study on the PTCL (Pakistan Telecommunication Ltd).
With the total number of employees 30,000 and 5.7 million consumers, PTCL is one of the largest telecommunication service providers in the Pakistan. This organization is also one of the largest provider of CDMA operator the Pakistan with the 0.8 million V.Fone consumers. The company is still in a position of maintaining to provide the infrastructure to other telecom service providers. PTCL is the only one company who laid its optical fibre in most of the cities of Pakistan. In Pakistan PTCL is the sole provider of the landline telephone means PTCL have the monopoly in this area of service. Pakistan Telecommunication is offering both National and International services all over the Pakistan and all the equipment interrelated to the manufacture of telecommunication. Pakistan Telecommunication Company Ltd, have the monopoly till the year of 2002 to provide the basic services of Telephone. In 2003 Pakistan has announce the deregulation police in which Pakistan has given rights to private sector to provide the facilities to the customers.
PTCL (Pakistan Telecommunication Ltd.) has the really vast history in telecommunication industry in Pakistan. PTCL has started the operations in 1947 with the name of Post and telegraph department with the time passed this department made progress and started services in Telephone under the name of Pakistan Telephone & Telegraph department in 1962 that was the first step towards the glorious establishment. On the glorious voyage PTCL started operations as Pakistan Telecommunication Ltd. And started operations under the act of Pakistan Telecommunication Corporation act 1991 working under the act the PTCL got the opportunity to capture the market as monopolist organization in Pakistan. In 1995 the reorganization ordinance that afterward became the reorganization act 1996 establishes the Telecom sector in Pakistan and created the different departments 1. Pakistan Telecommunication Authority (PTA) 2. Pakistan Telecommunication Company Ltd (PTCL). National Telecommunication Corporation (NTC). Frequency Allocation Board (FAB). By dividing the PTCL into different departments was a good step to establish the telecom sector in Pakistan. Being the monopolist organization having fully sported from the government PTCL is working at satisfactory level in the telecom sector in Pakistan. There were lot of problems the people are facing from PTCL because the consumer has no choice. In 2003 the PTCL deregulation policy introduce in Pakistan.
DEREGULATION POLICY 2003
The limited rights to endow with fixed telecommunications services of PTCL came at closing stage in 2003, which necessitated opening up of antagonism in the fixed telephony. The Telecom Deregulation Policy covered the way for bringing rivalry in the fixed telephony.12 it seeks to recover thecae's paths/ 100 individuals by promoting competition in the condition of telecom services and by ensuring that countryside areas get allied (worldwide service). It also laid out details on certify fees, performance obligations, interconnection, and co-location requirements.
TELECOMMUNICATION INDUSTRY IN PAKISTAN
"Telecommunication deals with the service of providing electrical communication at a distance. The service is supported by an industry that depends on a large body of increasingly specialized scientists, engineers, and craftspeople" ( Freeman, 2004)
"According to Nassar, (nd) when information is transmitted from one place to other place using technical support is known as telecommunication.
Pakistan Telecommunication Authority (PTA) is responsible for the operations to promote the telecom industry in Pakistan. Before the Pakistan Telecommunication (Reorganization) Act 1996 was introduce in Pakistan the only organization PTCL was given the basic telephonic services and in cellular mobile services Mobilink, Paktel & Instaphone was in the market.
In Pakistan Telecommunication industry is consist on six sectors.
Payphone Services Sector.
Voice over IP.
After the deregulation Act the Pakistan Telecommunication Sector has grown up very sharply and became a major participator in the economy of Pakistan. By breaking the monopoly of Pakistan Telecommunication Ltd. and giving licence to other cellular companies Pakistan is generating a high volume of investment in the telecommunication industry. In 2007 overall teledensity of Pakistan reached at 52.8% in December 2008 (Source PTA). During the financial year of 2006-07 total revenue generated by telecom sector in Pakistan was Rs.236 billion total investment made during the year was $4.12 billion and telecom sector shared 2.0% to the GDP and telecom sector receiving FDI is US $1.8billion which is the 35% of total FDI . Mobile sector paid approximately paid Rs.63 million taxes during the financial year and the growth ration of the cellular subscriber is 2.3million every month. Telecom sector is covering almost the 90% of the total population of Pakistan. (Source PTA).
Telecom Teledensity in Pakistan.
The telecom dependency in Pakistan is growing very fastly in the above table it is clearly shows that in eight years time period telecom sector capture the major market and in 2004 to 2007 was the major boom of the market. After the deregulation act the cellular subscriber in Pakistan increased rapidly.
Fixed Line Subscribers
The purpose of this research on the PTCL is evaluating the organizational miss management and to show the problems accurse when the management is not fully interested with the organization and to see the poor strategies adopted against the competitors.
RQ1. Critical analysis of Deregulation act and PTCL's failure in this regard ?
RQ2. Analysis on demotivation factor and its results on organizational failure ?
RQ3. Critically evaluation if monopoly could be the reason for success.
The basic objective of this research to get the outcome and explore the problems that happens due to mismanagement and lack of motivation of the employees The area that in which I am going to focusing in this research document is that in governmental organization due to the government support they have a monopoly into the market and the management is not work effectively because of the workforce is not so much motivated and passionate to work they do not have any such targets the monitoring level is not so much high these area are the lacking in the PTCL which I have described. And how the strategies play an important role in the organization to develop the organizational infrastructure.
To explore the causes of demotivation of employees.
To explore the poor marketing strategies of PTCL.
To explore the mismanagement of PTCL.
To explore the causes of Privatization of PTCL.
This research is based on three different lines of the business world. In this research we will come to know the different operations of the business that are the key factors for business to stay in the market for a longer period of time. In this research we will come to know that how much strategies of motivation of the employees are necessary for a business to run their operations and also about the factor of monopoly.
"There is a rather lack of knowledge of how to make use of labour when there is a shortage of same" (Meron,2008)
"The effective use of information technology, and increased productivity in information age industries, will depend on major changes in the way business are organized. In particular, many call for a flattened hierarchy of authority. Rapidly changing technical content, tools, and skills will require a more involved, less specialized, continuously learning work force. Such people will be highly valuable specialists who must be given adequate authority and access to the parts of the organization that depend on them. In return the increased flexibility and directness of the communication tools that information technology provides make obsolete the deep hierarchical command and control structures that originated in preelectronic military organizations"( Landauer,1999)
"Business performance is a collection of strategies that involve enterprise resource planning and linked with customer services and technological innovations. Business process management has different levels that when in sync with one another will allow a company to come up with wise implementation decisions and move in closer to the way their business process management involve a lot of aspects, mostly managerial in nature"(Gerard,2008 )
"In this emerging competitive environment, the ultimate success of the single business will depend on the management's ability to integrate the business intricate network of business relationships" (Nieuwenhuizen,2008) the businesses in this highly competitive environment need the special abilities of the management to work on the market and do the right things on the right time. And a strong grip on the market to check the needs of the customers that are changing day by day due to the innovations and creations that are happening very rapidly in the business world.
"Management learns to see and appreciate the rich environment of opportunities that grow from cooperative relationships with other contributors to the ecosystem. Rather than trying to force suppliers into low prices or customers into high prices" (Draft, 2008).
"It is the responsibilities of the management to look forward to the problems that might accurse in the future and also needs to design a strategy to solve the problems and look for the opportunities and put simply planning in deciding as to what is to be done in future and to determine the for the whom it is to be done (Gitman, 2009).
"The management is responsible for the team functioning, although this responsibility is obvious and must be shared by the group itself. It is management task to develop a work group that can regularly analyze and diagnose its own effectiveness and take appropriate actions if it shows signs of operating difficulty or stress" (Worley,2009)
"Organizations need the skill full management to perform and stay in the market. Management needs to create an environment and developed the leader ship concepts in to the organizations. The management needs to develop the task oriented skills into the organizations like organizational structure, design, and control to attain the organization objective and management also needs to work on the person oriented skills and they should enhance the behaviour that promote collaborative interaction among the organization members" (Battilana et al. 2010)
Lack of motivation of the employees is one of the major reasons for the failure of the organizations the employees are the key role of the organizations they are the human capital for the organization which needs to be addressed with care.
"Organizations cannot be all things to all people. They can only accommodate a range of divergent interests and aspirations among the staff insofar as these can be made to accord which divergences and conflicts of interests are most common in multinational hierarchies, and public and health services, where the organization style and structure is either inefficient, or irrelevant, to the true purpose of the organization concerned" (Pettinger,1998).
"The theory of reinforcement on learning and motivational theories skinner presented the association between the behaviour and rewards. Positive reinforcement occurs when behaviour is followed by a reward, which increases the probability that the behaviour will be repeated. As a learning mechanism, positive reinforcement is useful in pointing out when the correct behaviours and skills are demonstrated in training and on the job" (Land, 2007)
"McClelland's theory postulates that people are motivated by achievement, power, and affiliation, and motivation can be internally or externally mediated. People who are motivated by achievement are competitive, value success, and take pride in accomplishing goals with distinction. They want to do "something better for its own sake, for the intrinsic satisfaction of doing something better" (Zepeda,2007)
"According to Maslow, human being is an organism which drives into action to satisfy its needs. The hunger driver any other physiological drive cannot become a central point in explaining the theory of motivation. A sound theory of motivation centres on the basic goals of human beings. Human behaviour is a reflection of more than one need. Classification of motivations must be based on goals rather than on instigating drives or motivated behaviour. He further says that the situation in which a human organism reacts is a valid point in motivation theory, but the emphasis should always be on the behaviour of the organism rather than on the field of situation" (Sapru,2008)
" The objection to monopolies is that once they exist, even though they may have lower unit costs that smaller firms, they can exploit their position by restricting output and thus raising prices"(Chrystal,1983)
"It is difficult for the owner of the firm to keep control over its cost when the firm has monopoly power on the product market. Thus, a monopolist may produce given outputs at a higher cost than a competitive firm" (Tirole,1988). Being the monopolist firms the management and the employees of the organizations are not really much interested in the towards the operations of the business because the customers are forced to get the goods from the respective firms and customers have no choice to go for alternative.
"Similar different theories discredited the free market monopoly because the primary one concerns the actual ability of monopoly firms or a group of colluding firms to restrict the market supply and realize monopoly prices and profits. Although a firm may intend to restrict market supply and garner monopoly profits the ability of free-market monopoly to achieve that result is questionable"(D.T.Armentano,1986) Organizations are failed when we try to break the monopoly because the management that is working in monopolist organization are not very much aware of market segmentations because they have not to do much more than selling of their products because people bought their products actually they are not selling their products.
To answer research question and objectives one needs to collect data and it requires a proper research methodology. Saunders et al (2003) has proposed 'The research process Onion' which has different layers, which describe how through different layers one explains the issues underlying the choice of data collection.
The Research Process Onion
Source: "Research methods For Business students", Saunders (2003)
According to Saunders (2003) the research philosophy depends upon the way of thinking of the researcher about the development of the knowledge in the complete research process. The three main type of research philosophies are positivism, Interpretivism and realism. I have followed Interpretivism philosophy for my research as Saunders (2003) argues that different interpretations of people affect their social interactions with others so these actions can be seen as being significant. According to Saunders (2003) "The Interpretivism is associated with the social constructionist which views reality as being socially constructed. And the role of Interpretivism seeks to understand the subjective reality of those that they study to make sense and understand their motives, actions and interpretations in a meaning full way". Interpretive follows a more inductive research approach, where theory isn't the starting point but it's the result of observations and other findings. Interpretivism doesn't agree that human nature is like a natural science but says that human nature is very subjective. According to Bryman, (2004) the study of social phenomena is subjective one and can neither be deduced down to laws nor considered definitive.
RESEARCH APPROACH AND STRATEGIES
According to Saunders at el (2003) research is of two types one is deductive approach which involves the development of theory and hypothesis and designs a research strategy to test the hypothesis and the inductive approach the data is collected and theory is developed as a result of data analysis. The main difference between these two approaches is that in deductive approach there is a collection of quantities data and approach moves from theory to data where as in inductive approach there is close understanding of research context. I would be following inductive research approach because the issues like mismanagement cannot be simply deduced into some casual law or model. These issues are very subjective and should be interpreted as such.
According to Saunders et al (2003) a research strategy is a plan of how researcher can answer his research questions and objectives. The most widely used research approaches are experiment, case studies and surveys. . As I have used interpretive research approach so I have different research methods available to carry out my research. As my research will discuss the issue of mismanagement so i would use the case study approach. In case study approach we can use many data collection methods like questionnaires, interviews, observations and documentary analysis. I'll be using interviews and questionnaires to collect data. According to Saunders et al (2003) interviews can help to collect valid and reliable data which is relevant to research questions and objectives. Interviews can be structured, semi structured and unstructured. I have conducted structured interviews. It would not be possible for me to interview every single person in the PTCL office so ill also use questionnaires.
My research is about the case study. " A specific instant that is frequently designed to illustrate a more general principal". Case studies can establish cause and effect, indeed one their strengths is that they observe effects in real contexts, recognizing that context is a powerful determinant of both causes and effects.
Researcher of this paper has applied case study research method because the results are more easily understood by a wide audience (including non-academics) as they are frequently written in everyday, non-professional language. Furthermore, it is immediately intelligible; they speak for themselves and catches unique features that many otherwise be lost in large scale data( e.g. surveys); these unique features hold the key to understanding the situation. Moreover, it is strong on realities and case, thereby assisting interpretation of other similar cases and can be undertaken by a single researcher without needing a full research team. Finally, it can be embraced and built in unanticipated events and uncontrolled variables . The case study method has verities of strengths, however, it has suffered from various drawbacks where the results may not be generalized except where other reader/researcher see their problems, and are not easily opened to cross-checking, hence they may be selective, biased, personal and subjective. Once again, this method prunes to problems of observer bias, despite attempts made to address reflexivity. Researcher has applied this case study method minimizing the limitations and maximizing its strengths(Morision,2007)
QUALITATIVE & QUANTITATIVE RESEARCH METHOD
In my research I have used both research methods. There are popular methodologies like mixed methods, quantitative methods and qualitative methods. However, In my research I have applied quantitative approach because quantitative methodology is systematic, scientific investigation of quantitative properties and phenomena and their relationships. Moreover, it is typically considered to be the more "scientific" approach to do research in social science. Furthermore, quantitative research enjoys widespread heightened respect in the discipline and lies in the predictive advantages because quantitative methodology has the ability to make correct predictions (Carol,2000) and seeks measurements and analyses that are easily replicable by other researchers. In the mean time, quantitative data is more easily gernalizeable than qualitative data. However, quantitative methodology has its own limitations which are lack of depth study, lack of meaning, lack of focusing on the individuals and distorts reality because quantitative methods sometime do not give people opportunity to say what they really mean. On the other hand when the data is summarized collectively and statistically, the true picture can be distorted. Moreover, outcome of research can be affected by personal opinions, experiences and biases of the sociologist in quantitative methods. But the qualitative research methods like observations often depend on personal relationships being established between the respondents and the researcher and helps to deepen the subject but it is difficult to be repeated by other researchers with similar results. In the meantime qualitative data includes feelings and opinions which are not measureable statistically.
" Primary data are obtained from the organization or institution that originally collected the information"(Barber,2009)
" The data that we are originally collect for another purpose"(Mcgivern ,2006)
According to Saunders et al (2003) the Sampling techniques provide a range of methods that enable you to reduce the amount of data you need to collect by considering only data from a subgroup rather than all cases or elements. I'll be using purposive sampling technique. It will help me to use my own judgment to select samples which will be able to answer my research question and objectives. I have taken minimum 01 interview and questionnaires have been sent to minimum 50 people.
RELIABILITY, VALIDITY, GENERALISABILITY.
According (Marilynn J wood, Janet c Ross, (2011).Reliability can be checked by asking three questions. The first question is will the measures yield the same results on other occasions? The second question is will similar observations are reached by other observers and the third question is there transparency in how sense was made from the raw data? The four main threats to reliability are participant error, participant bias, and observer error and observer bias. As a researcher I have kept a number of things in mind that when I go for interview the participant have enough time so that they show keen interest and their responses are not affected by lack of time or inappropriate time. I have also made sure that all the participants in my research clearly knows that the research work I am doing is purely for my study and the and the views of all the participants will remain confidential. As I know few of my friends working in the company but it will not make my researched biased. I have kept all friendship relationships on a side so that my research is not affected by any kind of feelings.
According to (Carol Aubory, et al, 2000) are terms of a code of behaviour appropriate to academics and the conduct of research. As a researcher ill make sure right ethical behaviour is followed while conducting my research. As a student ill not only be representing but will also be interacting with my potential employer. So ill make sure the privacy of participants. And the purpose of research will be made clear at the start and it will be made sure that all the information and data collected will be used and reported as anonymous participant's views.
I am highly obliged to Ms. Saima Mustafa (Assistant HR executive Punjab) that she gave me time for interview and provide me the access to the resources that I needed to complete this document.
RESULTS AND FINDINGS
RESULTS AND FINDINGS
Q1. What changes have been brought in PTCL management with regards to its privatization?
Response. After the privatization of PTCL there were lot of protest made from the employees and some political parties because PTCL was the first Pakistani company that was privatized. That's why PTCL first aim was to solve the problems of the employees and to give them surety about their jobs. Second was the major part of PTCL that needs to be changed was the cellular sector of the PTCL. After the deregulation act there were many companies that came into the market. After the privatization of PTCL new management decided to capture the market over in that field to sustain their position into the market. The new management made reforms into U.Fone and gave the competitive prices and packages against their competitor. Before the privatization PTCL was working on the mass market and was not able to produce the innovations into the market but after the privationzation they again made changes in this and formed research department after that PTCL brought up lot of innovative things into the market like broadband, V.Phone.
Q2. Do you think centralization of decision making would affect the performance of PTCL?
Response. After the privatization in PTCL the red-tape culture is almost finish but still in the PTCL the decision is making by higher management and their decision making policy is still centralized which cause some time later decision making. In my point of view there should be empowerment of employees to a certain level so the management and employees can work with responsibility and still in PTCL there are many areas which are influenced by the previous culture.
Q3.The redundancy caused due to privatization has caused a demotivation in existing workforce? How far is it true?
Response. It is true in this regards that lot of people are laying off from the company by giving them golden handshake. PTCL was a government organization and there were lot of employees were in PTCL that are not capable to do their work and there were lot of labour unions are working in PTCL. Because PTCL was the first company in Pakistan that was privatized so the first reaction of the people was very much negative but after the assurance of jobs and providing healthy working environment makes the people to be devoted to their organization and employees are very much satisfied working with PTCL.
Q4. The skilful management can lead to success, how far do you think PTCL have been able to achieve this objective?
Response. In this current market situation organizations need to be strong and they have to be capable to develop their business motive into the minds of the consumers. After the privatization there are lot of reforms that came in management. Because of unbiasness in recruitment and fair selection process PTCL hired lot of skilled workers those are truly professional into their fields. People like Mr. Farhan Malik and Mr. Neguibullah Malik they are the people who bring the innovation and made the strategies that are really helpful for PTCL to come at the peak into telecom sector.
Q5. 'Organizations cannot be all things to all people', do you agree with regards to motivation?
Response. Organizations need to motivate their employees to run the operations smoothly. In PTCL after privatization there were lot protest were made to stop the privatization in this regard company started the approach to employees by giving them healthy working environment and those people who are not eligible for the company they gave them golden handshake as a reward but companies have to follow the strategies. Companies cannot solve the problems for each and every employee because in every origination change cannot be welcome by the employees companies needs to implement the change by keeping in mind the reaction of the workforce by giving them intrinsic and extrinsic rewards and thus carry an effective change management.
For the purpose of survey I have distributed the questioners in public to get the statics to show the current situation and analyse the public view point about the PTCL.
Did you feel better services in PTCL after privatization?
In response of the public answers 70% people are agree with that the PTCL has changed their strategies towards the customer and now they are getting the better services from the PTCL the 30% people have still conflicts with the PTCL so the company needs to improve their customer services and approach to that areas where customer are not satisfied.
Qu2.Do you prefer PTCL broadband as compared with Wateen and other broadband services providers?
By the sample of 50people 60% of customers are preferring PTCL broadband services because of the PTCL is covering 90% areas of Pakistan and PTCL using the DSL services which makes the faster internet speed and the packages offered by PTCL are less than the other services providers and they have the edge to being the pioneer of the market.
Qu3.Does PTCL give you competitive packages in comparison to other cellular service providers
80% people are satisfied the rates that PTCL offering as compare to the other cellular companies and PTCL is also not giving cheap callas within the Pakistan it also offering very cheap international call rates as compare to the other cellular companies that are operating in Pakistan PTCL have the best packages for the international calls.
Qu4.Was PTCL concern with retaining the customers when the organization was working as monopolist?
Total the sample 70% of the total says that PTCL was really not interested in retaining the customer before the privatization. Because the despite the fact that they are customers the employees of the PTCL are behaving very badly to the customers and the queries of the customers are not addressed on time.
Qu5.Is PTCL is successful in promoting its mobile sector in Pakistan?
In mobile sector PTCL in owned U.Fone which was neglected before the privations of PTCL the resources are properly not used by the management. Budget was not properly allocated to the different sectors U.Fone in mobile sector needs to be promoted when the era of mobile sector was at the peak but the management was failed to achieve their targets but the new management is successfully management its mobile sector and became the tough competitors in the market.
Qu6.Do you think having the monopoly in being the only landline service provider is still a trademark for PTCL?
90% people are agreed with this that PTCL sill having the edge over the other telecom sectors because PTCL is only company have its own fibre optics and monopoly in the field of landline services. World call is competing with PTCL in the sector of wireless phones but they are still behind the PTCL.
In this section of this document I am going to discuss the briefly about the new management strategies towards the organization.
(Source: www.ptcl.com.pk )
By the same share capital of 51,000million rupees PTCL is acquired by the Etisalat group of companies in 2006 . Before the privatization the companies was main focus on the telephone services that the company is only working in the department of fixed phones. In the above figure of 1.1 the percentages of revenue changes are shown the revenue generated from the fixed landline was 85% in 2005 which is gradually reduced in the in following years against the trade debts are 15% in 2005 which up and down in following years in figure 1.2 the profit before tax and after tax is higher in the 2005 and are slowly reduced in following years in graph 1.3 the same situation is shown the return on operating assets and return on the equities are decreased Gr1.4 shows the reason of reduction on the gr1.1,1.2,1.3 the reduction are basically because of two reason first one the that the new management is more keen towards to increase the assets of the company to establish the business for the long term sustainability into the market. The second reason which is (detailed under) is the diversity in the business that is more important for the business in the current market situation the total assets are the PTCL are increased in following years as compare to the shareholders equity that is flat in the following years.(www.ptcl.com)
Market Approach Analysis.
(source: www.pta.com.pk )
In the graph2.1 is clearly shown that the U.Fone is competing very aggressively after the privatization the subscriber are in the market are increasing because of the competitive packages that are offered by the U.Fone in the FY2009 the company generated the total revenue is Rs.73.6billion which is 7%higher than the last year and the share of the U.Fone in this is 22%higher than the last year.
Services Analysis .
(source : www.pta.com.pk )
PTCL introduce the its broadband services in Pakistan with the latest technology of DSL and capture the major market of the Pakistan after the privatization of PTCL the Etisalat group of companies introduce their Wateen broadband services by using the PTCL fiberoptics. PTCL has spraded its fibre optics in almost 90% area of Pakistan that is the biggest area of succession of PTCL broadband.
Financial Analysis of Telecom Sector.
( www.pta.com.pk )
In the above table 3.1 shows the that the telecom sector contribution is increasing very aggressively GST was only 26.8billion in the year of 2005-06 which grown in the four year and became at 70billions in the table 3.2 where the foreign direct investment shows that the telecom sector is playing very important role in the FDI. In table 3.3 telecom revenue is very mush profitable for the government and if we see in table number 3.4 where the investment is investment is welcomed by the market and the response of the market is good for the products . In the above four table the analysis of the several years is taken to just show the Govt. Approach towards its resources after the complete study on it I came to an end that the privatization at this time when the telecom sector at its peak and all companies are fighting
with each other to sustain their current position into the market and the privationzation at was at the time that was a great question on the privatization of the PTCL. The lack of management and employees performance into the originations leads to close down any originations. During the research I came to know that employees are not just needs money to fulfil their needs they need intrinsic and extrinsic rewards. Proper monitoring and timely taking decisions are helpful to the company to be at the front. Originations cannot run by the money to get the results from the company the workforce should be motivated.
"Management responsibility to ensure the pursuit of an intended strategy through administrative and cultural mechanisms that couple operational-level strategic initiatives with the intended strategy. Doing so makes it possible for the organization to build on past success and to exploit the opportunities associated with the current domain"(simons,1995). It is the management responsibility to use the resources at its full capability to get the maximum results by putting the minimum efforts. " Management needs to understand the budgeting is not only way to use the resources to influence an organizations behaviour. Of almost equal importance is the process of monitoring resource use. Financial tracking provides a critical idea to the management about the activities the organization"(Cohen, at al. 2008). Globalization is bringing the about tremendous change in the size ,structure, compositions, and style of functioning organisations so as to meet an intensified global competition(Durai,2010). PTCL working as an governmental organization was successful because of the fact of no competition into the market after the privatization of PTCL the new management took over the charge they use the resources and of the company very effectively they strongly came back into the telecom sector which shows the inefficiency and poor strategies of previous management because the company is working with the same issued capital. By diversifying the areas of the business makes the business to be at the succession point.
On the base of above findings and conclusion below are the few recommendations that PTCL could review for its betterment.
PTCL needs to analyse as per the above stats the unsatisfied 30% of population in review its strategies to provide better services.
Apart from its provision of telephonic services PTCL has strong network and financing to consider and work on other horizons like broadband services. Since there is a huge market available in other areas PTCL has a strong position to capture in those markets.
Having its U.Fone as its subsidiary PTCL can make progress towards its competitors in GSM sector.
From the statistical analysis we can see there has been a decline on the financial performance PTCL has to consider its implications in the long run.
Not only the above analysis reveal the factor discussed above to consider PTCL has to have a better management and be able to fulfil not only the external customers but also need to focus on internal employees satisfaction and motivation factors.