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Strategic Human resource management Project report on wateen telecom

Submitted to Mam Aqsa akbar

Submitted by Ali farooq Farah munir Fatima mehboob Qurat ul aien Ba-01083-048 Ba-01083-056 Ba-01083-055 Ba-01083-046

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Lahore business school

Contents:
Sr # Topic name Page #

1 2 3 4 5 6 7 8 9 1 0 1 1 1

Dedication Acknowledgment Objectives Introduction Company profile Vision & mission Product portfolio Corporate staregy Business level and Hr strategy Culture in wateen Hr department functions Current situation

3 4 5 6 8 9 10 10 11 12 13 14

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2 1 3 1 4 1 5 Recommendations References Exhibits 16 17 18

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.

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To our respected teacher Maam Aqsa Akbar, without whose guidance this project could not have been completed.

ACKNOWLEDGMENT:

Our teacher, Maam Aqsa Akbar, 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.

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

OBJECTIVE:

In this project we have tried to observe an organization and see how it is run. The main objectives were:

To observe and study their HR strategies regarding staffing, etc.

Observe the effectiveness of current HR

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Assess the degree to which the HR strategies are aligned with the corporate strategy.

INTRODUCTION
An organization is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment. A manager is the person responsible for planning and directing the work of a group of individuals, monitoring their work, and taking corrective action when necessary. For many people, this is their first step into a management career. Any organizations human resource is an asset, and it is very important to maintain and retain that asset. HR is a face value for any organization. Right from when the candidate walks for interview in the organization till he leaves the premises of the organization the way they treat a candidate the way the entire recruitment activity is schedule tells lots about the company. HR plays a pivotal role in any organization. They ensure that each individual in a company is properly utilized as per his/her ability to perform his/her duties as well as act as a devils advocate so that problems and issues are resolved immediately to ensure smooth functioning of workflow, good working environment etc. An HR manager is a very high and prestigious post. As an employee sponsor or advocate, the HR manager plays an integral role in organizational success via his or her knowledge about and advocacy of the employees. This advocacy includes expertise in how to create a work environment in which people will choose to be motivated, contributing, engaged, and happy.

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Fostering effective methods of goal setting, communication and empowerment through responsibility, builds employee ownership of the organization. The HR professional helps establish the organizational culture and climate in which people have the competency, concern and commitment to serve customers well. In this role, the HR manager provides employee development opportunities, employee assistance programs, gain sharing and profit-sharing strategies, organization development interventions, due process approaches to employee complaints and problem solving, and regularly scheduled communication opportunities. The constant evaluation of the effectiveness of the organization results in the need for the HR professional to frequently champion change. Both knowledge about and the ability to execute successful change strategies make the HR professional exceptionally valued. Knowing how to link change to the strategic needs of the organization will minimize employee dissatisfaction and resistance to change. The HR professional contributes to the organization by constantly assessing the effectiveness of the HR function. He or she also sponsors and supports change in other departments and in work practices. To promote the overall success of his or her organization, the HR professional champions the identification of the organizational strategic plan: mission, vision, values, goals and action plans. Finally, he or she helps determine the measures that will tell the organization how well it is succeeding in all of this. A human resources manager is responsible for managing and overseeing the personnel department within a company, organization or agency. This includes posting advertisements or approving advertisements for new employees, screening resumes and applications, setting interview appointments and being involved in the hiring process. In most agencies the human resources manager is also responsible for employee supervision and evaluations, retraining employees, offering mediation services for struggling employees as well as firing employees that are not meeting standards. Human resource managers must be aware of local, state and federal employment guidelines, manage payroll issues, maintain employee records, complete and record insurance and other programs offered to employees and be able to assist employees in understanding and evaluating the participation in these programs. Human resource managers may also be actively involved in retraining or training new employees or existing employees or answering questions that employees may have on policies or procedures within the company or agency. Workplace safety, employee absenteeism and health issues are also addressed by the human resources manager. The manager may be able to work directly with outside agencies to provide on-site counselling or even specialized programs for additions or crisis intervention counselling or services. Many human resource managers act as the bridge between management and workers in non-union companies. Conflict resolution and improving overall workplace moral is a key part of the role of a human resource manager. Common work activities include: Posting advertisements for new employees in newspapers, on the internet or in trade specific magazines. Contacting employment services or even executive recruiters for very specialized postings. Ensuring all record keeping with regards to workman's compensation, health and medical insurance, and other state and government regulations is completed as required.

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Overseeing the human resources department staff and handling all issues involving employee complaints or questions that cannot be answered by other staff. Managing office or agency health, safety and mental health and well-being issues. Working with employers and employees in training and in-service presentations as required. Hiring, supervising, training, monitoring and firing of staff. Involving in the resource hunting and recruitment process of an individual. Maintaining the records of all employee details. Gathering information from other departments and employees. Arranging various training and development programs. Ensuring about the employee safety, security, welfare, wellness and health. Administering the duties of the performance appraisal and motivating the employees. Providing response to the general HR enquiries verbally and written. Maintaining the routine correspondence and providing the employee satisfaction and feedback reports. Manage & control the departmental expenditure that exists within the budgets. To manage & develop reporting staff.

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

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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.

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]

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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

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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Telephony Television Internet Enterprise solutions

hig h

Market Share
lo w

lo w

Market Growth

hig h

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

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To check on the performance of their employees they are using proper feedback systems 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. 1. 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 1. 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 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.

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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.

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

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employment procedures such as training, selection, compensation, and performance appraisal.

Recruitment and Selection at Wateen:

Procedure is started when different departments communicate with the HR department for the specific job requirement person that they required. Selection of the best people for the specific job selection is performed by different formal and informal methods. But few resources are devoted to selection procedures because the company, currently, is not in a very good financial position. Selection procedure includes:

Minimum requirements (education and/or experience) for screening applicants Interview questions Selection tests/instruments (e.g., written tests; oral tests; job simulations) Orientation materials for applicants/new hires

Internet sourcing: Wateen advertise jobs on their website and collect data on that. It also gives advertisements on other sources on the internet. Internal sourcing: For the selection of higher level staff, internal sourcing is used. If an employee is available for the job then he is promoted and the vacant job is fulfilled by other sources. Employees referrals: Staff having referred friends and family members for the vacant job at middle and lower level positions in the company. But it is not very effective for the overall performance of the business. Newspaper advertisement: Wateen gives newspaper advertisements for vacancies.

Compensation Plan:
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:

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

CURRENT SITUATIONS:
HR department is playing good role for selecting the employees. In 2005 Wateen was established as a part of Warid telecom and functions are same in the single HR department. In mid 2007 it was separated from Warid as a subsidiary. Tariq Malik was the CEO of Wateen at that time. After having a separate identity, Muhammad Farukh Saddique was manager of the HR department and made a policy to hire new and competitive employees. He hired a large amount of people at Wateen. But at the same time they outsource the services for the new projects i.e Huawei for the instalment of the network in the Pakistan. In 2009 company made the decision for expansion by declaring IPOs in the Karachi Stock exchange. In mid 2009 before IPOs declaration, 50% employees were fired after the exit interview conducted from those employees. After that, the company listed was in KSE as a private limited company. This period of downsizing brought with it an incredible anxiety for everyone. Both managers and employees had to "get through" this period where downsizing was announced and individuals are notified. In 2010, after IPO of the company, 200 employees resigned from the company and it includes the top management of the company, who stated: No salary yet, fuel cards blocked since months, bonus not yet transferred, we are in big problem CEO Mr. Tariq Malik also resigned from his position. He was honored with one of Pakistans highest civilian awards, the Sitara-e-Imtiaz in 2005 in recognition of his role in various facets of banking, financial advisory and investments in Pakistan. Members Board of Directors, Warid Telecom and Wateen Telecom and the key players of Dhabi Group, Mr. Bashir Tahir and Pervez Shahid have reportedly resigned from their positions. On other side, Mr. Pervez Shahid was the top person for Warid, Wateen and Bank Alfalah in Pakistan. Officially he was executive in-charge of strategic planning division, Bank Alfalah and was authorized power of attorney holder for Warid Telecom. Both of the brothers were running all the Dhabi Groups business activities in Pakistan, which includes: Wateen, Warid, Bank Al Falah, UBL, Raseen Telecom, Razi Health Care, a Sugar Mill, a construction company and more. A message, coming directly from Sheikh Nahyan bin Mubarak Al Nahyan, Chairman Abu Dhabi Group, has been sent to media, which explains the situation after ongoing changes in the group at management level. Chairman Dhabi group said that Mr. Zouhair A. Khaliq will serve as Executive Director and represent the Group on the boards of Warid Telecom, Wateen and WinCom, while Mr. Naeem Zamindar will hold the position as the CEO of Wateen. The main problems the company is currently facing are very high turnover rates. The company, in their struggle to be the best, lay off a lot of people. In the last one year, they have fired 40 percent of their top level executives. Employee motivation is very less, because there is no job security. Hiring is mainly internal reference-based; first priority is given to people recommended by the existing workforce.

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Plus, in the year 2009-2010 the company has been spending too much on their marketing and promotions, which has lead to a considerable drop in the profits. [Exhibit-4]

Analysis & Recommendations:

The companys current HR policies are not aligned with their corporate strategy of growth and diversification. This is achieved by a creative and competent workforce who is dedicated to their work and organizational targets. Our recommendations are that the company should work more towards retaining and developing their employees, are hiring and training are activities which are generally costly. Employees should be trained and compensated according to the amount of work that they do, and a proper performance appraisal system should be implemented in order to analyse employee performances and give them bonuses/promotions accordingly. Such activities motivate employees and make them realise their personal as well as organisational goals.

Turnover and its solution

In wateen the turnover rate is very high due the following reason Layoffs Terminations Poor reward and benefits No job security Wateen should retain its employees in order to get good profits and to achieve its corporate goals wateen should have use the following ways to reduce the employee turn over Use the proper reward system Give proper compensation benefits to retain their employees Give them a job security

Diversity management use in all departments

As a telecom company wateen shoul use the diversity management approach in their company to be an innovators and take the first mover advantages

Reduce status differentials

Staus differentials should be used in the company so the employees get motivated and retain and be loyal to their company

Downsizing with restructuring

Wateen when downsize also restructured there company so there cost will be less as compared to the normal downsizing situation

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Job security

Wateen should give its employees job security so the employees are motivated and loyal to the company

Training & development

Wateen should give its employees a proper training and development so the employees can work with more effort and experience

Compensation & benefits Counter cyclic hiring

Company give proper compensation and benefits to its employees give their 24 hours operation staff a good meal to eat so they feel considered Wateen should use counter cyclic hiring and hire their employees in the downturn so they have a good bargaining power.

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Reference:

Muhammad Tahir

Asistant manager compensation & benefits H/R Executive recruitment manager H/R

Syed omair akbar

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SEXHIBIT-1

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EXHIBIT-2

EXHIBIT-3

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EXHIBIT-4