Reward management of Mobilink

8/8/2019 Reward management of Mobilink

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ACKNOWLEDGEMENT

First of all, we would like to thank Almighty Allah for granting us thewisdom and knowledge to do this project.

We express our sincere gratitude to our teacher Sir Syed Ali AbdullahMahboob who inculcated the basics of Staffing Management that guidedus all through our work.

We would like to extend our special thanks to Mr. Massoud Shaffi(Electrical Engineer) for lending us his support and providing us with allthe valuable information in due course of time.

The account of acknowledgement will remain incomplete if we do notexpress our sincere appreciation, indebtedness and gratitude to our

parents. They have always been a source of encouragement for us.

Page 1 of 28 University of Gujrat


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ABSTRACT

Man in his natural psychological state wants or needs to interact withother people; its his inborn desire. As the world is progressing towards a

faster and a quicker pace, communication now is of vital importance. Intodays world, time is money and with efficient and less time consumingcommunication, money is being saved.

In the complex and ever growing world of communication, cellulartechnology is of great importance. It surely shrinks the world as it is intrue sense global. Our report is about a major cellular company that

provides a global access in the world of communication. Its Mobilink.This report contains in depth analysis of companys compensation and

reward structure and strategies.



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TABLE OF CONTENTS

ACKNOWLEDGEMENT PAGE 01

ABSTRACT PAGE 02

INTRODUCTION PAGE 05

MISSION STATEMENT PAGE 06

MOBILINK'S VISION PAGE 06

MOBILINK'S VALUES PAGE 07

MOBILINK -ORGANIZATIONAL CHART PAGE 08

TOTAL STRENGTH OF EMPLOYEES PAGE 09

HIERARCHY OF HR DEPARTMENT PAGE 10

HRM DEPARTMENT PAGE 11

HR DEPARTMENT SECTIONS PAGE 12

REWARD SYSTEM

PAGE 13

SALARY ADMINISTRATION PROGRAM

PAGE 15

SETTING STARTING SALARIES PAGE 17

PAGE 18



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COMPENSATION AND BENEFIT PLANS

REWARD CATEGORIES AT MOBILINK PAGE 19

PRACTICES ON REWARD SYSTEMS ATMOBILINK PAGE 20

CAREER PLANNING & DEVELOPMENT P AGE 21

OCCUPATIONAL HEALTH AND SAFETY PAGE 23

CRITICAL REVIEW PAGE 25

HOW WELL THESE POLICIES AND PRACTICESARE ACHIEVING THE ORGANIZATIONAL

GOALS?PAGE 26

CONCLUSION PAGE 27

RECOMMENDATIONS PAGE 28



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INTRODUCTION

Today, the telecommunications industry is exposed to fierce competition.

National and geographical borders no longer coincide with those oftelecommunications. The same products and services are developed andoffered in a number of different countries. Since, the invention oftelephone as a medium of communication, the telecommunication hasbeen growing by leaps and bounds. Competition among different firmshas led to creative and innovative solutions regarding the usage of

phones all over the world. Mobile phone is one such creation, in thisregard, that had taken the telecommunication industry to new heights.

Therefore, keeping the importance of mobile industry in mind, we havechosen a mobile company as our focus of study i.e. Mobilink.

A multinational, Mobilink was incorporated in 1990 in Pakistan as a private limited company and subsequently commenced operations in1994. Since then, it has been expanding enormously and has successfully

captured a major market share in Pakistan despite of the tightcompetition.

We would be particularly focusing on the organizational compensationand reward management.



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MISSION STATEMENT

To be the unmatchable mobile system of communications in Pakistanthis provides the best value to its customers, employees, business partnersand shareholders.

MOBILINK'S VISION

To be the leading telecommunication services provider in Pakistan by

offering innovative communication solutions of our customers whileexceeding shareholder value and employee expectations

MOBILINK'S VALUES



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Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trustand confidence in us. In return, we strive to anticipate their needs anddeliver service, quality and value beyond their expectations.

Business Excellence:

We strive for excellence in all that we do. We aspire to the higheststandards and raise the bar for ourselves everyday. This commitment to

delivering world-class quality translates into unmatched service andvalue for our customers and all stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards inan open and honest environment, and by honoring our commitments. Wetake personal responsibility for our actions, and treat everyone fairly, andwith trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem ouremployees and all stakeholders. We believe in teamwork, empowermentand honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards

our country and the environment we operate in. We contribute to worthycauses and are dedicated to the development and progress of the society.



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MOBILINK -ORGANIZATIONAL CHART

TOTAL STRENGTH OF EMPLOYEES

Over all (Total 4500)

Top Managers 75



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Middle Managers 750

Line Managers 3675

HUMAN RESOURCE DEPARTMENT

HIERARCHY OF HR DEPARTMENT


Director 01

Vise President 04

Middle Managers 16

Line Managers 26


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HRM DEPARTMENT

HR Mission Statement

To lead the organization in enhancing its human capital and creating awinning environment where everyone enjoys contributing to the best of

ones ability.

Mobilink will achieve this by:

Inspiring and motivating its people.

Developing its people to strive for higher standards.

Driving an open minded and enterprising corporate culture wherepeople through leadership at all levels dare to dream, dare to try,

dare to fail and dare to succeed.

Attracting and recruiting the best talent

Mobilink has a very defined and well structured department and itsvarious policies of keeping each employee productive part of theorganization are intoned with the corporate worlds requirement.

Employees in the company are largely committed to their organizationand have shown progress in the company. Employees are satisfied with

the HR department of Mobilink GSM Company.

Humans are the basic tool for having competitive edge in the market formost of the organizations and Mobilink is one of these. Mobilink has oneof the best HR systems in Pakistan that gives it an edge over itscompetitors.



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HR DEPARTMENT SECTIONS

HR department of Mobilink has three sections.

Employee services

Payroll information

Leave and medical record

Final settlements and provident fund

Policies and procedures

Employees record and recreation

OD and Effectiveness

Training plan

Talent management

Performance management

Employees retention

Orientation employee communication

Staffing and compensation

Staffing plan and HR budgeting

Management trainee and internship program

Interviewing and selection

Headhunters Compensation, benefits and incentive



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REWARDS SYSTEM

Policies on Reward system at Mobilink:

MOBILINK considers its employees not just as a cost but also as aresource in which the company has invested from which it expectsvaluable returns. Pay policies and programs are one of the mostimportant human resource tools for encouraging desired employeebehaviors. The advantage of paying above the market average is theability to attract and retain the top talent available, which can translate

into highly effective and productive work force.The incentive schemes and incentive objective have been clearlycommunicated to all individuals and weekly progress report is alsocommunicated to all concerned.

There is a list of policies regarding the reward system at Mobilink. Itoffers both kinds of rewards: Intrinsic and Extrinsic. Following are themain reward related policies:

SALARY

Objectives:

The purpose of this policy is to have salaries subject for review inJanuary of each calendar year in the light of merit and inflation.



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An employee, who is employed on a job with title and specifications, will

receive compensation that is relevant to field experience matching withapproved salary structure of his / her position.

Policy Guidelines:

The Company will pay salaries of the employees and all other amountsdue to them during office hours and on the job site as follows:

All New Employees have to open bank accounts in specified banks

prescribed by the Company so that their salary will be credited at the endof each month.

Upon termination of service (end of service), the employee will receive his/ her salary within 15 working days up to the time of date of his / her lastworking day.

Upon resignation, the employee will be paid his / her dues during amaximum period of 15 working days from the date he / she left the job.



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SALARY ADMINISTRATION PROGRAM

Salary Objective:

The salary administration program is designed to meet the following

objectives:

1. Attract & retain the services of competent qualified employees.

2. Provide fair and equitable compensation to each employee and to

ensure that the value of each job relative to all other jobs within theCompany is established and maintained on a fair and equitable basis.

3. Provide annual performance appraisal for employees to improve theirjob performance and to encourage them to aspire for promotions to jobswith greater responsibilities i.e. fairly compensate employees based onindividual accomplishments and annual performance appraisals.

4. Ensure that salaries are competitive and in line with salary levels thatprevail in the industry.

5. Instill employee confidence in the Companys compensation policies

and practices.

Salary Outline:

The Basics of the salary administration program can be summarized inthe following manner:

The VP Human Resources & Administration and the concerned



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Department Head will analyze each job classification.

The HR Department determines an appropriate salary range inrelation to similar jobs at other well respected companies (salary

survey).

The HR Department will analyze each job and assign a job code,hire rate, minimum, mid and maximum point rate. (SalaryStructure)

The HR Department will prepare the salary structure to bereviewed and approved by the Director & VP HR.

Salary Scale:

Each job is assigned a minimum salary, established according to thesalary survey results, which specifies the minimum salary that may bepaid to incumbents in each job.

Minimum through maximum scales is built on a system of mathematicalcalculations to allow for overlapping between levels as a result of salary,merit or promotional increase.



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SETTING STARTING SALARIES

Objective:

To ensure that each employee is given the starting salary of the title levelin which his / her position and experience fall. Also to ensure thatconsideration is given to past experience and qualifications when setting

starting salaries

Factors to be put into consideration for setting salaries within the rangedetermined by the departmental Head & the HR department

The starting salary offered to new candidates by Mobilink will bedependent on two factors:

The particular job level for which the job offer is being made The candidates education, experience, qualifications as compared

to the minimum qualifications required by the job specificationand prevailing industry rates.

Salary Administration Procedures:

Human Resource Department:

Prepare all documentations and theirsummary affecting salaries, and

forward payroll section for processingthat includes:

Recruits, transferees

Promotion and increments

Allowances, bonuses and incentives

Discipline

Review the all documents affecting salaries.



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Entry of all salaries based on Salary, allowances, deductions and

commissions.

Besides there are other intrinsic and extrinsic awards that leads towardsone objective only and that is: To compensate employee sufficiently sothat he may be motivated and constitutes an integral part of Humanresource of organization.

COMPENSATION AND BENEFIT PLANS

Mobilink has a separate department for compensation. That departmentdeals in staffing and compensation planning. First of all this departmenthas all the information regarding who is being employed and how it is

performing. What so ever promises are made to the employees, they knowthat. So its easy for them to design compensation plans because theyknow every employee which is being hired.

Compensation and benefit plans are particularly based on performance.If performance is up to the standards of Mobilink and the employee has

good conducts he is rewarded. After performance evaluation, results arerechecked and matched with the standards. Based on that, propercompensation plans are designed.

Bonuses

The employee may receive 1 to 3 month bonus subject to evaluation ofaccomplished objectives.

In Mobilink the reward system is based on the individual performance

and individual employee performance is judged for the reward. Themanager of respective departments recommends a candidate from his

section for the reward purpose to HR.



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REWARD CATEGORIES AT MOBILINK

Intrinsic and Extrinsic rewards include:

Smart/Quality work

Exceptional performance in a project

Targets achievements

Special assignments

Medical care

Life insurance

Vacations

Relocation Credit advance policy provident policy/advance against provident

fund and a capping of gratuity

Recreation

Club Policy Travel Education assistance policy

Mobile phone

Business mobile phone policy

Official Blackberry Policy

Life insurance

Medical entitlement

Other intrinsic and extrinsic rewards include:

Life insurance

Vacations

Relocation Credit advance policy provident policy/advance against provident

fund and



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gratuity

EOI Recreation

Club Policy Travel

Education assistance policy

Mobile phone

Business mobile phone policy Official Blackberry Policy

PRACTICES ON REWARD SYSTEMS AT MOBILINK

Policies regarding the reward systems are practiced quite strictly atmobilink. Employees are paid when they are supposed to pay. Otherrewards are also fast but they are mostly tenure based rather than

performance based. In policies it is mentioned that the rewards are totally

performance based.

However, this policy is not that much followed strictly. Rewards aremostly determined by the organizational membership and seniority ratherthen by performance. Promotion is given on the basis of performance, aswell as tenure.

Promotions

Promotions are also reward management technique to motivateemployees. In MOBILINK promotions are based on the merit and

seniority (experience) basis. The one who performs well consistently overtime gets reward in the form of promotion.

Promotion Policies



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The new company structure is in five layers, comprising associates,

specialists, managers, directors and chief officers------in that orderstarting from the bottom and working towards the top rung of the ladder.Until approved otherwise, it would be mandatory for the employees to

spend the following maximum period at each level before a promotion tothe next level depending upon availability of a slot:

Associate 3-4 years

Specialist 3-4 years

Manager 2-3 years

Director According to the president decision

Chiefs According to the president decision

However, employees who may not get a chance of promotion due to the

non availability of an existing slot will be compensated by being movedover within the new salary range specified by the company.

CAREER PLANNING & DEVELOPMENT

Mobilink faces much competition in the telecom industry so now they arefocusing on career Management of their employees in which they enablethe employees to better understand and develop their career skills andinterests and to use these skills and interests most effectively both withinthe company and after they leave the firm. Career planning is thedeliberate process through which someone becomes aware of personal

skills, interests knowledge, motivation, and other characteristics;acquires information about other opportunities and choices; identifiescareer related goals and establishes action plans to attain specific goals.

Career development is the lifelong series of activities (such as workshops)that contributes to a person career exploration, establishment, and

success ad fulfillment.



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Mobilink gives promotion to their employees on the performance basis.

The Mobilink HR department develops the employees careerdevelopment plans in which the HR department predicts the next logical

step for their employees within five years.

Importance of Career planning in todays competitive world is asimportant as any other HR function. Retaining your valuable Humanresource today is one of the biggest challenges that organizations are

facing. So, HR needs to come up with new strategies. Career planningand development is one of the basic tool and strategy organizations are

using for retaining their employees. This function actually makesemployees feel that they are important to the organization and Mobilinkwants them to be at the top in their careers.

However, at Mobilink this function is not fully performed or we should

say this function is not performed satisfactorily. There are some policieson these but those are not recognized that well. One point of policy is

found along with the compensation other with the recruitment. Thereshould have been separate head for these policies.

As far as the practices are concerned, all the employees were reluctant totalk about this during our interview. However, what we analyzed is thatcareer development is practiced but not that openly. Specially, in case if

some employee is considering of joining the competitors firm. If such is acase then organization has discipline policies for that even.



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OCCUPATIONAL HEALTH AND SAFETY

MEASURES:

There is no need for such measures at Mobilink as maximum jobs do notexpose you to the health hazards and are not such that require safetymeasures. However, there is a tendency of being safe in every human andthat shows when you visit some Mobilink officer to meet someone of a

high designation level. You need to fulfill various safety measures.

Health & Safety Policies

The safety of employees is everyones responsibility. Accidents,precaution and efficient work go hand in hand. All levels of employeeshave a primary responsibility for the safety and well being of all of us.Therefore, interest in practicing safety prevention must be encouraged by:

a) Setting good examples.b) Acting upon safety records.c) Reviewing safety programs.d) Holding personal interviews or group conferences.e) Starting activities that will stimulate and maintain employees interests.

No phase of operation of administration is of greater importance thanaccident prevention. It is the policy of the Company to provide and

maintain safe and healthy working conditions and to follow operating practices that safeguard all employees and result in safe workingconditions and efficient operations.

Proper First Aid Kit will be available at all Mobilink Offices includingremote locations.



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There is no need for such measures at Mobilink as maximum jobs do not

expose you to the health hazards and are not such that require safetymeasures. However, there is a tendency of being safe in every human andthat shows when you visit some Mobilink officer to meet someone of ahigh designation level. You need to fulfill various safety measures.



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CRITICAL REVIEW

Reward system at Mobilink is quite complicate. The reason for this is thatthere are many intrinsic and extrinsic, direct and indirect, compensatingand non-compensating rewards. There is even a department that looks

after the motivational aspect of the employees. How motivation level ofemployees can be kept to a level so that they can be more productive.

PMO (Project management office) introduces many club memberships, game shows, lunch arrangement and many more for employee to bemotivated. Similarly, there are special achievement awards at eachindividual level. Then there are even team awards, department awardsand division awards.One thing to mention is criteria for rewards. As mentioned earlier in

policies, rewards are performance based. But this is true only in case of

achievement awards, group awards etc. If we observe basic pays andincrements then those are not performance based. Those are more oftenure based. Mobilink does say that all rewards are performance based.

However, it is not the case in practice.



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HOW WELL THESE POLICIES AND PRACTICES ARE

ACHIEVING THE ORGANIZATIONAL GOALS?

Well the answer is simple. Policies are going pretty well. Numerically, Ican say more than 90%. How? Well because these are being practices inthe same manner as was expected during the policy formulation time.Moreover, see the results. Mobilink is considered to have the best HR in

Pakistan and they have retained this edge. So, its so obvious that alloverall policies are good and they are also being followed exactly the

same way as required to achieve organizational goals.



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CONCLUSION

To conclude Mobilink has a strong HR system. That is the reason we

didnt found much discrepancies in what management says, what policiesstate and what employees say. 90 % of the times they were same. Thereare some minor discrepancies but they are adjustable with little effort.



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RECOMMENDATIONS

Mobilink has a strong HR system. That is the reason we didnt foundmuch discrepancies in what management says, what policies state and

what employees say. 90 % of the times they were same. However, therewere some discrepancies that need attention and their adjustment canmake this HR system best in Pakistan.

Following are some of the recommendations based on thosediscrepancies:

1. Human resource department is not fully authorized to take all thedecisions. Though HR department claims to have the overall managementof the company but that actually is not the case. There are many HRdecisions that are taken by the other department. So, there should be aclear delegation of authority regarding decision making for HRdepartment.

2. One thing we observed during our project was that employees were not

aware of the in depth policies. The main reason that we have understoodfor this is their lack of knowledge about policies formulation. Employeesare not encouraged to give suggestions in policy formulation. So, our

suggestion is that employees should be consulted while policy formulationstage.

3. Benefits and rewards are too complicated for anyone to understand.Though there are many of these but most of employees even have notinformation as to for what benefit they can go for. So, Mobilink should

simplify its reward system for its employees to understand well.

4. The decision making is delegated to managers with goals set for eachterm promotion, hiring and firing is virtually in the immediate bosss

hand. This practice can cause disharmony among employees for power.Team based structure (like the one at PMO) should be preferred in alldepartments.



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5. Mobilink pursues Zero-tolerance policy for disciplinary actions. This is

good but not in all cases. Mobilink should look towards its disciplinepolices and try to be a bit more lenient.

6. Mobilink HR lacks in terms of career planning and development. Thisimportant function of HR does not have recognition in Policies

statement. Mobilink should have a look at this.

7. Mobilink uses only policy specified sources for recruitment which areonly 5. In this way it can loose some potential applicants that can be asset

to organizations, just because they were not well communicated.So, Mobilink should increase its recruitment sources. During an HRspecialist interview, we posed the same question and the answer wasthats what policy says; on ground level we do use as many sources as

possible. If this is the case then our recommendation is that Mobilink

should adjust its policy accordingly.

Reward management of Mobilink

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