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Compensation Management

Submitted to Sir Atif Rana Submitted by Ali farooq Farah munir Fatima mehboob Qurat ul aien

Ba-01083-048 Ba-01083-056 Ba-01083-055 Ba-01083-046

Lahore business school

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DEDICATION:

Firstly, we thank Allah for giving us the strength for completing this job.

To all the people who prayed for us and sent us their best wishes and gave us the courage to keep going on and never break in the face of difficulties.

To our respected teacher Sir Atif rana, without whose guidance this project could not have been completed.

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ACKNOWLEDGMENT:

Our teacher, Sir Atif Rana, who provided us with endless and invaluable guidance throughout.

We thank the management of Wateen Telecom for giving us their time and co-operating with us. They treated us with courtesy and provided us with all the information we needed.

We also thank all the individuals who have contributed towards the completion of this project.

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Company Profile
Wateen Telecom was formed under the auspices of the Abu Dhabi Group which is one of the leading business conglomerates in the Middle East and one of the largest foreign investors in Pakistan. The Group has a diverse set of business interests that offer strong financial resources and extensive management expertise, resulting in the commercial success for numerous enterprises. The Abu Dhabi Group's major investments are in the following sectors: Oil and Gas Exploration Banking and Financial Services Automotive Hospitality Services Property Development Telecommunications & Technology Wateen Telecom is a converged communication services provider that fulfils connectivity requirements for organizations and individuals in Pakistan. Wateen Telecom delivers complete solutions for Internet, Voice, Multimedia and Enterprise Solutions that make it the most comprehensive provider for all of Pakistans communication necessities. An Abu Dhabi Group venture, Wateens vision is to take Pakistan into the digital revolution of the 21st Century and to make Pakistan a regional communications hub, connecting the East with the West and Central Asia with the Middle East. Wateen began its operations in Pakistan in 2007, with the deployment of the largest fibre optic network in the country. Moreover, Wateen is the worlds first company to commercially roll out a WiMAX network on a nationwide scale. Wateen currently services over 250,000 WiMAX subscribers, provides enterprise solutions and data services to over 200 leading organizations and its wired (HFC/GPON) network reaches over 15,000 households in Lahore and Multan. [See Exhibit-1] With a new strategic vision and management in place, Wateen has steadily improved its service provision and its corporate structure to adequately reflect its corporate motto and beliefs of Enabling Customer Lifestyles. Wateen is aiming to help shape the education, social and economic development in the country using broad-based internet provision.

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Our vision: To lead Pakistan into the digital revolution Our mission: Deliver high-quality, flexible and innovative solutions that are cost-effective. Provide complete customer satisfaction on time, every time Make Broadband Pakistan a reality [See Exhibit-2]

Product Portfolio:
Currently, Wateen is offering four different types of products/services for everyday customers as well as corporate customers: 1. 2. 3. 4. Internet Telephony Enterprise Solutions Television

Management & Internal alignment Corporate Strategy:

In the Internet and Telephony market, Wateens market share is second only to PTCL. Wateens corporate strategy is growth. They want to become market leaders in their industry. Their basic corporate strategy is growth, which they are trying to achieve by implementing the portfolio strategy. They are trying to capture high market share by providing a diverse range of products and services to customers. Plus, they have the advantage of being first movers of the WiMax technology and have the largest fibre optic network in Pakistan. They are offering a wide portfolio of products in their attempt to capture the highest market share. [Exhibit-3]. A generalized BCG matrix is shown below, giving an overview of their main businesses and their relative positions.

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high

Enterprise solutions Television

Internet

Market Share

Telephony

low low high

Market Growth

BCG Matrix of Wateen Business Level Strategy:

All four of Wateens businesses have different business level strategies. Enterprise solutions are using focused differentiation. Telephony and Internet are using the cost leadership approach, where are as TV is using the targeting niche market approach.

HR Strategy:
Hiring is decentralized; the head each division does its own hiring. Since all the different businesses are working with difference strategies for capturing the market, they all have their different HR strategies accordingly. 1. Enterprise Solutions This business works on a differentiation policy. They provide all their corporate customers with exactly the type of product they require. They have a very large corporate customer base, which includes all the five mobile phone carriers, as well as numerous banks [see Exhibit-1]. This department hires efficient and competent people who can design packages for companies and provide them solutions on time. The strategy of this department is consistent with its business level strategy like the hiring of the employees in a very good manner and the strategy is align with the goals. Source for hire people is electronic media, internet, newspaper To retain their employees they are using performance management system To achieve good targets they motivate their employees and give them special training & development Use by approach to hire top management To check on the performance of their employees they are using proper feedback systems

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Use diversity management to be innovative. Equal employment opportunity is not there. Use downsizing when they fire their employees. And when they need them back then also call them but the moral and satisfaction level falls down.and effect on the profitability. 2. Internet & Telephony: This business works on a cost leadership policy. They have a bad Hr strategy for this product portfolio. They provide the lowest price on their services as compared to their competitors. They are trying to capture the highest market share, which currently belongs to PTCL. This department hires people on contract basis and dont give them proper benefits Rewards & Benefits are given to employees to retain or motivate them but layoffs give a bad imperation to their employees Employees get their rewards on the basis of performance management They give general training to their employees Source of hirring is internal hirring for the middle management For top management hirring they use by approach. And hire people from big multi national companies Training for ccr is only for 4-5 days which was not enough Lay off is very common in wateen thats why there employees dont have job security Wateen Relaunches after every 2-3 years because they dont have loyal employees which have a negative impact on their business and there is no retention of employees. Employees are hire on contract basis There is no equal opportunity in the organization

3. Television: This is a relatively small business, currently operating only in DHA Lahore and DHA Karachi. This department hires people who are can are generally good at dealing with customers. This department has less people because this is a relatively small business unit. This product market is a niche market and also has the same Hr strategies as telephone and internet have.

Culture in Wateen:
Wateen has a unique environment to work for since it houses a diversity of skills, backgrounds, viewpoints and experiences from around the world. It is ensured that hiring is on merit, skill and ability, without regarding to race, colour, religion, sex, national origin, age, marital status, or any other classification. Wateen Telecom is building and integrating the next generation of intelligent, converged networks with a plethora of key services and differentiators in the market. The primal objective is to become a carriers carrier and provide turnkey solutions for all customer requirements and specifications. Wateen Telecom are seeking innovative and intelligent people to help design, market, sell and support an innovative & intelligent product portfolio

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to a diversified evolving market. They strive to hire only the best, create an exhilarating work environment and above all else, respect each individual's unique contributions. An organizational culture has following elements:

Organization environment Organization values Organizational rites, rituals, and customs Cultural transmitter

Wateen tries to provide the best conditions for work. There is a decentralized system but data is recorded at single place that is Lahore, Pakistan. Problems are created by using Bottom-Up strategies. Wateen respect each individuals creative and unique contribution. With all of this Wateen employees expect more.

External competitiveness HR Department Function:

The active role of HR at every level lead towards the enhancement of skills, leadership qualities, operations, interpersonal skills, analytical skills and career development of the employees according to their needs of job. It is the important department in Wateen. It performs the staffing function for the other departments in organizing the employees and make them efficient. HR department is directly involved in managing employee affairs and perform different functions i.e. care about the employees by guidance and support, develop discipline strategies and develop opportunities for the employees and the manager to maintain the developmental goals at individual levels and match that with the overall organizational goals. HR department continuously makes efforts to improve the culture by making considerable change, selection processes of employees, make standards for jobs according to meet the world overall challenges and ensure that the people at every level are devoted and willing to achieve the organizational goals.

Hiring of employees:
Wateen Telecom prefers people that have creative and innovative capabilities with proper skills and education to meet the challenges of the market. It is ensured that hiring is on merit, skill and ability, without regarding to race, color, religion, sex, national origin, age, marital status, or any other classification. Wateen prefer best hiring for best people but devote less resources on their selection procedures. It hires by itself. Wateen prefer diversity; every type of people having different and unique skills and culture reflect this. Over the last years Wateen used different processes to select and hire the people. Job Analysis data may be collected from incumbents through interviews or questionnaires. The product of the analysis is a description or specifications of the job, not a description of the person. The purpose of Job Analysis is to establish and document the 'job relatedness' of employment procedures such as training, selection, compensation, and performance appraisal.

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Compensation Plans:
In the Wateen Telecom compensation is good for higher levels and but lower level staff are not paid very competently according to the industry. For the top level executives, benefits are also given and salary even up to Rs. 500,000/-, but some low level jobs as less as PKR 12,000/-.

Promotional plans:
Promotion is very important for the employees for retaining them in the company. The employees are Wateen are not given promotions that often, even if they deserve.

Performance Appraisal:
There is no proper record of the employees in the Human Resource Department for doing proper performance appraisal. Employees are not very dedicated to achieving organizational goals and turnover rate is high. Applicant appraisal/evaluation forms are used for performance evaluation.

Training and Development Plan:

Training is very normal routine for the employees but it is not very specific in accordance to the job (general training).

Employee Contributions:
Some Employees are not very much motivated like the middle level managers and staff because they are not getting promotions they are so much disappointed about the performance appraisal system but the top level managers are motivated and they are having promotions and other benefits so they contribute towards the company.

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Reference:

Muhammad Tahir
Asistant manager compensation & benefits H/R

Syed omair akbar

Executive recruitment manager H/R

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SEXHIBIT-1

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EXHIBIT-2

EXHIBIT-3

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EXHIBIT-4