A Study of Different Compensation Plans at PTCL and

Their Effect on Employees Job Satisfaction

By
(Project Managers)

MBE133022
MBE133023

Jabran
Hamza idress

Project Supervisor
Mr. Wasim Ahmed

Department of Management Sciences

Mohammad Ali Jinnah University
Islamabad Pakistan

A Study of Different Compensation Plans at PTCL and

Their Effect on Employees Job Satisfaction
Submitted by
Jabran

MBE133022

Hamza idress MBE133023

has been approved for partial fulfillment of the requirement of the degree
of Bachelor/Masters of Business Administration

Name of the supervisor

Mr. Wasim Ahmed
Internal Examiner

Internal Examiner

(Mr.Arif Vaseer)

(Prof.Dr.Aisha Akber)
Dr. Muhammad Ishfaq Khan
(Project Coordinator)

Department of Management Sciences

Mohammad Ali Jinnah University
Islamabad Pakistan

DECLARATION
We hereby declare that this Project Report titled A Study

of Different Compensation Plans at PTCL and Their

Effect on Employees Job Satisfaction submitted by us to
the Department of Business Management, Mohammad Ali Jinnah
University, Islamabad, is a bonafide work undertaken by us and it
is not submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time
before.

Jabran

________________

Student

Signature

Hamza idress

________________

Student

Signature

CERTIFICATION
This is

to

certify

that the

Project

Report

title

A Study of Different Compensation Plans at PTCL and

Their Effect on Employees Job Satisfaction submitted in
partial fulfillment for the award of MBA Programmed of Department
of Business Management, Mohammad Ali Jinnah University,
Islamabad, was carried out by Mr. Jabran and Mr. Hamza idress
under my guidance. This has not been submitted to any other
University

or

Institution

for

the

award

of

degree/diploma/certificate
Wasim ahmed

________________

Supervisor

Signature

any

Acknowledgement
There is no God but ALLAH and Muhammad (Peace Be upon Him) is HIS messenger. I am
solely obliged to ALLAH ALMIGHTY for HIS countless blessings, my efforts were nothing
but HIS blessings enabled me to complete this business research project.
I express my kind gratitude to my sweet and the most sincere family specially my parents and
mamu & respected Sir Wasim Ahmed, Sir Ishfaq Ahmad Khan, for their continuous support
and care. For sure, this project is nothing but an outcome of their sincere support & prayers. I
also proudly express my feeling filled with love for my all-family members, who always
dreamed superior position for me.
I am deeply thankful for the contributions of my research project supervisor Mr. Wasim
Ahmed in the field of research. His style of teaching and the way he suggest the ideas has
really helped me to define an ideal teacher.
He is my role model in the field of HR research and I know they will always server as a
source of inspiration for me and for many others.
A special thanks to all those friends, classmates, staff-members and students who contributed
on different stages by their back up and encouragement there is a huge list which cant not
mentioned but my heart pays solute of thanks to them.

Dedication
I would like to dedicate this work to my parents who encourage me to complete this wonder
full research project. There is no doubt in my mind that without his continued support and
counsel I could not have completed this process.
I would like to acknowledge the inspirational instruction and guidance of Mr. Wasim Ahmed
Who given me a deep appreciation and love for the beauty and detail of this subject.

Executive summary
The main purpose of this study is to identify the different problems facing by the PTCL
employees. Different employees of PTCL like contract, regular and NCPG were targeted to
measure employees job satisfaction level. We used Questionnaire as a tool and fill 100
questionnaires out of which 75 questionnaire are used for analysis. The finding of this study
is that PTCL employees are not satisfied from the compensation plans so concluded that
employees job satisfaction can be enhanced by increasing the job security, retirement plans,
salaries and better compensation plans. For removal of this contradiction, this report
recommends same HR policies for all types of PTCL employees.

Table of contents
Executive summary...................................................................................................................vi
Table of contents......................................................................................................................vii
1.

Introduction.........................................................................................................................1
1.1.

Compensation..............................................................................................................1

1.2.

Previous findings.........................................................................................................2

1.3.

Psychological Needs and Intrinsic versus Extrinsic Motivation.................................3

1.4.

Telecom sector.............................................................................................................3

1.5.

PTCL...........................................................................................................................3

1.6.

Problem statement.......................................................................................................8

1.7.

Need of research..........................................................................................................8

1.8.

Introduction to Human Resource Management...........................................................8

1.9.

Scope of the project report........................................................................................12

1.10. Benefit of the Report.................................................................................................12

2. Research Methodology.....................................................................................................13
2.1.

Research design.........................................................................................................13

2.2.

Type of study.............................................................................................................13

2.3.

Study setting..............................................................................................................13

2.4.

Time Horizon.............................................................................................................13

2.5.

Unit of Analysis.........................................................................................................13

2.6.

Population..................................................................................................................13

2.7.

Sampling techniques..................................................................................................13

2.8.

Sampling....................................................................................................................13

2.9.

Research instrument..................................................................................................13

2.10. Data Collection..........................................................................................................13

3.

4.

RESULT AND DISCUSSION..........................................................................................15

3.1.

Employee satisfaction related to particular Question................................................16

3.2.

Employee satisfaction related to particular Question in graph..................................18

3.3.

Comparison of different type of employees satisfaction in percentage....................19

3.4.

Summary of different type of employees Satisfaction..............................................21

3.5.

Discussion..................................................................................................................22

Conclusion........................................................................................................................24
8

5.

Future recommendation....................................................................................................25

6.

References.........................................................................................................................26

7.

Appendix...........................................................................................................................27
Questionnaire.......................................................................................................................27

1. Introduction
Employees are the important assets of the organization. Through employees organizations
earn profits; organization productivity needs employees satisfaction and motivation. The
salaries or bonuses are extremely important for the motivation of employees and managers.
Generally, the motivation is not about the compensations, but the compensation should
support the general motivation framework in the organization.
The employees usually know the common levels of salaries in the industry and when the
organization is below the median or the average, it has to compensate the difference in other
area. But, when the difference is too high, the compensation by a different motivation tool
does not work and the employees start to feel de motivated as they receive no equal value for
their effort. There are different ways by which the organization can motivate and satisfied
their employees, one of the best ways is compensation, and compensation has a close relation
with employees satisfaction motivation and retention.

1.1. Compensation
Employees receive compensation from a company in return for work they had done. Most
people think compensation and pay are the same; the fact is that compensation is much more
than just the monetary rewards provided by an employer. Compensation not only provides a
means of sustenance and allows people to satisfy their materialistic and recreational needs, it
also serves their ego or self-esteem needs.
Many survey results demonstrate a significant positive relationship between the perceived
characteristics of the compensation system and extrinsic motivation. Intrinsic motivation is
affected by promotion opportunities. The compensation system also significantly affects other
indicators of motivation, namely work satisfaction and turnover intent.
Compensation and employee satisfaction drive productivity, indirectly creating profit for an
organization. To them, these are also fundamentals for staff retention. Organizations with
higher staff retention rates are naturally better at retaining knowledge, which can lead to
better performance and profit for the business.
Low compensation toward employees will trigger the employee to try to get their own
business or side job. With the side business, it will disturb the quality of employees' work and
concentration. Low concentrations of certain employees have a negative impact on quality
and quality of production of goods in the company. It is clear that the influence of
compensation on employee productivity is very strong. Given reasonable compensation to
employees higher the productivity of employees conversely, given lower compensation for
employees, lower the productivity of the employee.
No one works for free, nor should they. Obviously, employees want to earn fair wages and
salaries, and employers want their workers to feel that is what they are getting. So
organization need to design a cost-effective pay structure that will attract, motivate, and retain
competent employees.

A well designed compensation and benefits plan helps to attract, motivate and retain talent in
your firm. A well designed compensation and benefits plan will benefit your business in the
following ways.
1. Job satisfaction: Your employees would be happy with their jobs and would love to
work for you if they get fair rewards in exchange of their services.
2. Motivation: We all have different kinds of needs. Some of us want money so they
work for the company which gives them higher pay. Some value achievement more
than money, they would associate themselves with firms which offer greater chances
of promotion, learning and development. A compensation plan that hits workers
needs is more likely to motivate them to act in the desired way.
3. Low Absenteeism: if employees enjoy the office environment and are happy with
their salaries and get what they need and want their absenteeism rate will decrease
automatically.
4. Low Turnover: Employees turnover increase due to unfair compensation policy. A
well designed compensation strategy by Human Resources management can decrease
that rate to minimum rate.
5. Innovations: Good compensation for employees will be able to stimulate the advent
of fresh ideas and employees innovation. With so many ideas from employees, it
would be very useful for the company.
6. More productivity: if an organization pays more compensation to their employee for
their work done, they will be more motivated and satisfied. That motivation will bring
productivity to highest level in organization.

The different research suggest and argued that , when you want employees satisfied from the
organization you Should satisfy the basic and intrinsic needs, they are satisfied from the a
good compensation plane ,compensation is basic need of every employees when employees
are satisfied from the compensation they are motivated for longer periods of work.
Some factors that may affect employees job satisfaction include compensation and benefits.
Compensation is one of the biggest factors that might affect employee job satisfaction Many
employees are more satisfied when working for companies that offer employees benefits.
This is especially true with older employees and employees with families

1.2. Previous findings

Regarding the importance of an effective reward strategy, Brown (2001) says that reward
strategy is eventually a way of thinking that one can apply to any reward issue arising in an
organization, to see how he/she can create value from it. Hence we can say that the aim of
reward strategy is to achieve higher levels of organizational, team and individual
performance. Developing and managing a reward system, which is efficient and suited to the
organization, is an essential human resource management function (e.g. Frombrun, Tichy and
Devanna 1984). From an organizational perspective, the aim of a reward system is to attract,
motivate and retain high-quality employees (Lawler 1990)

Rewards plans are significantly associated with extrinsic and intrinsic factors of motivation
are accepted. Because, the result shows that about 80% of the employees in National
Commercial bank (NCB) are directly motivated with rewards offered.
Higher Intrinsic rewards lead to higher employees motivation could not be rejected as well,
because more than half of respondents also preferred the intrinsic rewards.
Employee involvement and empowerment is a way to make your own employees feel good
about working with you as an employee. This can be achieved through keeping the
employees inside the decision making process and providing them autonomy to make on the
spot decisions for certain critical process as well as day to day routine process (Besterfield,
2004).

1.3.Psychological Needs and Intrinsic versus Extrinsic Motivation

Abraham Maslow argued that people have a hierarchy of five increasingly higher level
needs which called physiological security, social, self-esteem, and self-actualization. The
Maslow theory argued that satisfied the employees basic needs and mean give a high salary
when basic need are satisfied then all needs should be satisfied.
Edward Deci also suggest that intrinsically motivated behaviors are those behaviors that are
motivated by the underlying need for competence and self-determination

1.4.Telecom sector
Telecom industry, collection of all companies providing phone services, is the fastest growing
industry in Pakistan. As recently as 1994, trained basically in voice telecomm technologies , a
Divisional Engineer at a PTCL city exchange could not believe that data could also be sent
over a telephone line via some means! In 2003, the government de-regulated Telecom policy
of PTA (See Appendix). This de-regulation of policy allowed access for local and
international companies to invest in telecom industry more flexibly than ever. New
companies came into market and due to high competition rates went cheaper and cheaper,
hence making telecom-oriented services affordable to many. This resulted rapid growth of
telecom. New services are expected to get launched in future. These new services would keep
Telecom in its hay-day at least for next 6-7 years. Therefore for any organization
or individual, intending to invest or any student, intending to choose this sector as career, this
is the juicy field
1.5. PTCL
PTCL is the main communication authority in Pakistan which is partly government owned
and partly privatized. . PTCL also continues to be the largest CDMA operator in the country
with0.8 million V-fone customers. Now PTCL has downsized due to employees
compensation problem, in PTCL employees are not satisfied from the compensation
packages, because in organization there are different types of employees .i.e. Regular
employees, contract employees, and NCPG employees, the contract, NCPG and regular
employees are highly unsatisfied from different packages, the different compensation plans
for regular employees, contract employees, And NCPG employees has affect Job satisfaction
and morale of the employees of PTCL
3

Background of ptcl
Since the establishment of Pakistan in 1947 PTCL has been the major player.
It established and worked under PTC act 1991.
In 1994 it issued six million vouchers exchangeable into 600 million shares
PTCL was listed on all stock exchanges of Pakistan till 1995
These vouchers were converted into PTCL shares in mid-1996.
PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and
Pak Net respectively.
In 2005 Government of Pakistan decided to sell 26 percent of this company to some private
corporation.
History of PTCL
After the partition of Indo-Pak subcontinent in1947, the areas that became part of Pakistan
were mostly neglected in respect of telecommunication services. The supporting organization
and manufacturing telecommunication equipment were almost non-existent in Pakistan
The Pakistan posts and telegraphs department (1947 to 1962)
In 1947, the Pakistan Posts and Telegraphs Department was attached with the Ministry of
Communication. During the first fifteen years, a sound foundation was laid by creating
supporting organizations like telephone stores, workshops, training centers, production and
repair of equipments etc., necessary for running of PT&T Department. However,
telecommunication network systems remained limited to major cities of the country. The
Government of Pakistan started five-year plans to build a proper base for systematic
development of the telecom sector.
Pakistan telegraphs and telephone department (1962-1990)
With the expansion of the postal and telecommunication services, government decided to
split the PP&T Department into two departments i.e. Pakistan Telegraph and Telephone
Department and Pakistan Post Office Department. The process of bifurcation was completed
by July 1962.Significant developments took place during the first forty years in terms of
infra-structure development and transfer of technology from EMD to digital switching
systems and increase in telephone lines from 12,000 in 1947 to 922,000 in 1990, besides
establishment of manufacturing facilities of various types.
Establishment of Pakistan telecommunication corporation (PTC)
In 1990, PT & T department was transformed into a corporation and titled as Pakistan
Telecommunication Corporation. The objective of this initiative was to provide greater
autonomy and flexibility to the organization in achieving its long-term objectives
During the next five years, the telecommunications sector made tremendous progress in the
provision of telecommunication services. It started manufacturing and production of
Telecommunication equipment materials by using the latest technologies. During PTC period
4

the number of lines increased to 21, 26,054 in 1995, an increase of over 230 percent over
1990.
MISSION STATEMENT OF PTCL
A companys mission statement is typically focused on its present business scope-who they
are and what they do mission statement broadly describes an organizations present
capabilities, customer focus, activities and business makeup.
Pakistan Telecommunication company limited statement states that
1.
2.
3.
4.
5.

An organizational environment that fosters professionalism, motivation and quality.

An environment that is cost effective and conscious.
Services that are based on the most optimum technology.
Quality and Time conscious customer service.
Sustained growth in earnings and profitability.

STRATEGIC VISION OF PTCL

Strategic vision is a roadmap of a companys future- providing specifics about technology
and customer focus, the geographic and product markets to be pursued, the capabilities it
plans to develop, and the kind of company that management is trying to create. Strategic
vision of Pakistan Telecommunication Company is to be the leading ICT service provider in
the region by achieving customers satisfaction and maximizing shareholders value.
CORE VALUES OF PTCL
Values are general statements, procedures or understandings that guide or channel thinking in
decision making. It provides direction for action and regularizes the decision making in
certain circumstances.
Pakistan Telecommunication Company limited defines its values as
1 Professional Integrity
1 Customer Satisfaction
2 Teamwork
3 Company loyalty
OBJECTIVES OF PTCL
Objectives are the ends towards which activity is aimed. These are the results to be achieved.
Pakistan Telecommunication Company limited states its objectives as under
1
1.
2.
3.

To provide quality services to its customers in Pakistan.

To provide maximum satisfaction to its customers by using the latest technology.
To increase the worth of owners.
To lead the telecommunication industry in Pakistan.

4.
Carrier Telephone Industries (CTI)
Carrier Telephone Industries (CTI) was incorporated as a private limited company in the
public sector in 1969 in collaboration with Pakistan telecommunication Company Limited
and Siemens AG, Germany. CTI was established to acquire, develop and produce latest stateof-the-art equipment in the field of transmission technologies, electronics and other
telecommunication areas. It provides a sophisticated technology base for the country. Today
CTI is manufacturing SDH transmission equipment, Multiplexing products, Optical Fiber and
Digital Radio Systems. In addition it has also ventured in the manufacturing of Microwave
Gid Parabolic Antennae, PABX and Pai Gain System. It has recently started assembly of
personal Computers, besides selling other Electro-mechanical accessories, measuring
instruments and other products. The company employs latest manufacturing techniques i.e.
Surface Mounting Technology (SMT) for mounting components and its robotics
arms/machines provides excellent support for after sales services. It is equipped to train and
fully support its customers.
CTI was privatized in November 2005 as part of the PTCL privatization commitment.
PTCLs equity investment of Rs.8 million was sold for Rs.500 million to Siemens AG. The
privatization commission has not yet released the proceeds of this sale to PTCL. The
company had earned a current year profit of Rs.2 million before privatization in November
2005.
ORGANIZATIONAL STRUCTURE OF PTCL
Organization is the end result of organizing. So organizing is the part of management that
involves establishing intentional structure of roles for the people to fill an enterprise. It is
process of breaking down the overall tasks of an enterprise into individual
assignments/activities and then getting them put together in units, departments or in groups
along with the delegation of authority to the manger. Organizational structure implies a
formalized intestinal structure of roles/positions.
A well-developed and properly coordinated structure is an important requirement for the
successful operation of any organization. It provides the basic framework with in which
functions and procedures are performed. In PTCL the functions of planning and policy
formulation are carried out by the Board of Directors whereas the management of the
organization is carried out by the executive management.

Organization Structure

Departments OF PTCL
Every organization is divided into definite departments. Each department performs different
kind of jobs and requires staff with specialized skills to handle particular job. This increases
the efficiency of workers.
There are several aspects on which departmentalization in an organization can be based. The
division can be done on the basis of function, product, customers or geographical locations.
The PTCL Head Quarters is comprised of several departments. The division is made on the
basis of function they perform. Hence it can be concluded that PTCL has adopted the policy
of functional departmentalization. The main departments of PTCL are mentioned below.
1
1.
2.
3.
4.
5.
6.

Human Resource Management Dept.

Finance Dept.
Commercial Dept.
Operational Dept.
Technical Dept.
I T Dept.
Corporate Affairs Dept.
7. Special Projects Dept.

1.6. Problem statement

To what extent different compensation plans for regular employees, contract employees, And
NCPG employees affect Job satisfaction and morale of the employees of PTCL.

1.7.Need of research
Research is needed because that is serious problem of the HR department

1.8. Introduction to Human Resource Management

HR management overview
More specifically the Human Resources Department shall perform following functions:
A human resource philosophy which shall govern the companys actions with respect
to human resources management
Prepare a Human Resource Plan to support the short and medium-term goals of the
company
Develop the policies, guidelines and procedures for the following human resources
management concerns: Manpower planning / budgeting.
Recruitment and Selection.
Appointment, deployment, re-deployment / transfers.
Compensation and benefits administration.
Career planning and promotions.
8

 Performance management.
Incentives administration.
Training and development.
Grant of Move over
Grant of permission for higher education.
Sanction leave.
Disciplinary cases.
Human Resource Practices
In every organization the HR has a crucial role in building the organizational culture and also
molding the ethical character of the workforce. Though the role of HR is evolving and
assuming more strategic significance it is still widely recognized as the policing arm of the
executive management. The HR has responsibility for all the functions that deal with the
needs and activities of the employees. Hiring, training, leadership development,
performance management, person new policy framework, salary and benefit programmed all
come under the purview of the HR. Its overbearing presence has tremendous influence on
the workforce.
Therefore organizational culture that supports and encourages
ethical behavior depends to a great extent on the even handedness of HR systems.
The society of Human Resource Management defines a "best practice" in HR as a particular
method, approach, or practice of managing people, which has a positive impact on a
company's overall business performance by improving employee satisfaction, customer
satisfaction, and also the bottom-line business performance. Best practice is a difficult
concept to define because it depends on many variables. These practices are not limited to
what is accomplished, within what framework, within what environment and under what
economic conditions. Studies have identified the major categories for best HR practices as:

Recruitment and Selection;

Training and Development;
Career path Development;
Compensation Management;
Performance Management.

Compensation Management
Compensation management is a collegian of activities that establishes an internally equitable
and externally competitive philosophy and practice for paying employees. Salaries and wages
are often the largest cost to a firm and can be up to 70% of a companys annual operating
costs. Creating a comprehensive and impartial structure is key to attracting and retaining
talent, and therefore fundamentally strategic to the organization.
Elements of Compensation Management
Simply listed the essential elements of a best-in-class compensation management program
include:
Comprehensive Position Analysis Questionnaires / Reviews / Interviews
Complaint and Consistent Job Descriptions
9

Internal and Validated Job Rating System

Employee Data Integration
Market Salary data
Acton-oriented Analysis Capabilities (Pay Equity, Performance, Pay Policy, Human
Capital Planning).
Compensation and job satisfaction
Job satisfaction includes challenging work, interesting job assignments, equitable rewards,
competent supervision, and rewarding careers. The quality of work life and psychological
rewards from employment are very important. It is doubtful, however, whether many of us
would continue working were it not for the money we earn.
Employees desire compensation systems that they perceive as being fair and
commensurate with their skills and expectations. Pay, therefore, is a major consideration in
HRM because it provides employees with a tangible reward for their services, as well as a
source of recognition and livelihood.
Employee compensation includes all forms of pay and rewards received by employees
for the performance of their jobs. Direct compensation encompasses employee wages and
salaries, incentives, bonuses, and commissions. Indirect compensation comprises the many
benefits supplied by employers, and nonfinancial compensation includes employee
recognition programs, rewarding jobs, and flexible work hours to accommodate personal
needs.
Both HR professionals and scholars agree that the way compensation is allocated among
employees sends a message what management believes is important and the types of
activities it encourages. For an employer, the payroll constitutes a sizable operating cost. In
manufacturing firms compensation is seldom as low as 20 percent of total expenditures, and
in service enterprises it often exceeds 80 percent.
A sound compensation program is essential so that pay can serve to motivate employee
production sufficiently to keep labor costs at an acceptable level. The management of a
compensation program, job evaluation systems, and pay structures for determining
compensation payments is covered here. Included will be a discussion of federal regulations
that affect wage and salary rates. Employee benefits that are part of the total compensation
package are discussed later
Compensation Objectives and Policies
Compensation objectives should facilitate the effective utilization and management of an
organizations human resources, while also contributing to the overall objectives of the
organization. A compensation program, therefore, Should be tailored to the needs of an
organization and its employees.
It is not uncommon for organizations to establish very specific goals for their
compensation program. Formalized compensation goals serve as guidelines for managers to
ensure that wage and benefit policies achieve their intended purpose. The more common
goals of compensation policy include:

1. To reward employees past performance

10

2.
3.
4.
5.
6.
7.

To remain competitive in the labor market

To maintain salary equity among employees
To motivate employees future performance
To maintain the budget
To attract new employees
To reduce unnecessary turnover

To achieve these goals, policies should be established to guide management in making

decisions. Formal statements of compensation policies typically include the following:
1. The rate of pay within the organization and whether it is to be above, below, or at the
prevailing community rate
2. The ability of the pay program to gain employee acceptance while motivating
employees to perform to the best of their abilities
3. The pay level at which employees may be recruited and the pay differential between
new and more senior employees
4. The intervals at which pay raises are to be granted and the extent to which merit
and/or seniority will influence the raises
5. The pay levels needed to facilitate the achievement of a sound financial position in
relation to the products or services offered

11

1.9 Objectives of the project report

The main purpose of the report in hand is together relevant information to compile business
research report on PTCL. To observe, analyze and interpret the relevant data competently and
in a useful Objectives of Research Study
To measure, analyze and investigate the value-change in HR practices being followed.
Discuss through study of ptcl
The practical work of HR practice
Know the Environment of the organization
Know the ptcl problems
And learn how to solve the problems
Find the problems
And try to solve the problems
Develop the interpersonal communication

1.9.Scope of the project report

As a researcher in PTCL the main focus of my report research was on HR function on
compensation of the PTCL.
Similarly different aspects overall of PTCL are also covered in this report.
The outcome will help to determine the direction of effect in organizational productivity.
To work practically in an organization.
To develop interpersonal communication.
To seek how to solve the problem
Learn how to find the problems
Learn how to conduct research methodology

1.10.

Benefit of the Report

The report done will benefit the HR students because the HR practice section of this
report comprehensively encompasses all respects of HR practice. Further more,
PTCL may also benefit from the recommendations made at the end of the report.

12

2.

Research Methodology
2.1.Research design

Research design is the arrangement of conditions with regard to collection and analysis of
data in a very manner which aims to combine relevance to the research function with
economy in procedure. Research design included details of study regarding its type, settings,
time horizon and unit of analysis which are discussed below.

2.2.Type of study
Descriptive research was selected for the desired study, from which survey method was
adopted to conduct the research.

2.3.Study setting
This is a field study because participants i.e. PTCL regular employees, contract employees
and NCPG employees have been contacted on their job and they filled the questionnaires in
their natural work environment.

2.4.Time Horizon
The data for this research has been collected in one week. The data is cross-sectional in
nature.

2.5.Unit of Analysis
The unit of analysis for this Business research project individual (Employees of PTCL) i.e.
Regular employees, contract employees and NCPG employees.

2.6.Population
The population of the current study comprises of the employees of the PTCL. The population
consisted thousands employees of the PTCL.

2.7.Sampling techniques
The study is based on convenient sampling due to time limitations. The data was collected
from the employees of the PTCL, the rationale for which is that data collection from this
population was easy and convenient.

2.8.Sampling
Based on convenient sampling, a total of 100 self-administered questionnaires have been
distributed among the PTCL employees in different offices.

2.9.Research instrument
Paper survey was conducted; questionnaires were collected and examined to conclude the
findings.

13

2.10.

Data Collection

A total of 100 self-administered questionnaires have been distributed among the employees of
the PTCL to get data on particular variables of interest. Out of 100 questionnaires, 85 were
received of which only 75 were considered for analysis with a response rate of 75%. While
administering the questionnaires, the respondents were assured that their names will be kept
secret and the data will be used only for this project.

14

3. RESULT AND DISCUSSION

The study was carried-out to ascertain the level of satisfaction among employees of the
company feel satisfied with respect to its HR policies. PTCL management has not been able
to design pay packages for its employees. Thus the employees are neither getting companyscales like many corporate companies, nor they are getting pay and perks offered by the
government to its employees.
PTCL has been hiring people at market-based salaries, but the disparity in the pay-packages
is quite disturbing and at times discouraging for the employees. Two employees working at
the same levels get different packages. This needs to be removed. Also, the gap between
salaries of regular and contract employees needs to be bridged. Employees expect to get at
least the pay-rise announced by the Federal Government to meet the inflation, but the
company has often refused that too. This has created a negative impression among the
employees. Management needs to take some confidence-building measures to undo this.
PTCL shall try to match other companies in pay and benefits so that the employees do not
leave due to this grey area.
Employee dissatisfaction is high due to blockage of channel of promotion, lack of career
growth and less salary. Salaries of PTCL employees used to be too high than the rest of the
government employees, but now the employees are getting far less pay than their compatriots
in other government departments, hence they cannot make their two ends meet in this
towering inflation. Employee Retention is the key to long-term growth and success. If PTCL
management wants to retain the best, it must pay attention to compensation plans and careergrowth so that the turnover ratio is minimized.
The questionnaires result define and explain in three steps, result prepare in the MS excel.
Result relate employees satisfaction .we have developed 25 question in scale is used yes and
no, yes can explain the employees satisfaction and no explain the employees dissatisfaction.
First we must mention the self administrated questionnaires.
These types of questionnaires are used and fill from the 75 employees
The result can show in three different forms
1st we can show the questionnaires result
2nd the employees yes and no
And 3rd over all result of the data

15

3.1.Employee satisfaction related to particular Question

Below table shows the Employee satisfaction related to particular Question. Each question is
asked from total of 75 employees. Their response in YES shows that they are satisfied and
answer as NO shows that they are dissatisfied.
Like 1st question that is Are you satisfied with your current salary? is ask from 75
employees in which 20 answer with yes that realized us that they are satisfied and 55
employees answered No that shows they are Dissatisfied. Here we can know no of employee
which is dissatisfied from salary is more than satisfied employee.
Each and every question is examined to find what satisfied or dissatisfied employee.

16

Satisfi Dissati
ed in sfied in
%
%

obser
vation

Yes

NO

75

20

55

27%

73%

75

17

58

23%

77%

75

22

53

29%

71%

75

17

58

23%

77%

75

12

63

16%

84%

6 Do you have annually increment plan?

7 Do you get overtime payment?

75

35

40

47%

53%

75

68

9%

91%

8 Do you get your salary at time?

9 Do you have facility to reimburse your expense?

75

65

10

87%

13%

75

22

53

29%

71%

10 Do you have family and personal leaves?

11 Do you have job security in organization?

75

51

24

68%

32%

75

30

45

40%

60%

12 Does your organization pay a bonus?

13 Does your organization provide family benefits?
Does your organization provide insurance
14 facility?
I am well satisfied from the non-monetary
15 benefit offered here.
16 I am often bored in my job.

75

51

24

68%

32%

75

35

40

47%

53%

75

15

60

20%

80%

75

14

61

19%

81%

75

57

18

76%

24%

17 I am satisfied from the chances of promotion.

I feel unappreciated when I think about my
18 basic pay.
I feel very satisfactory with performance
19 evaluation term and policy.
I feel satisfied when I think about pension
20 which I well received after retirement.
21 I find real enjoyment in my work.
Organization do reward financial compensation
22 based on performance.
Pay incentive motivates me a lot to perform at
23 optimal level.
Reward should be just base on financial
24 compensation.
25 Benefits are few not satisfactory.

75

15

60

20%

80%

75

23

52

31%

69%

75

12

63

16%

84%

75

66

12%

88%

75

49

26

65%

35%

75

20

55

27%

73%

75

26

49

35%

65%

75

43

32

57%

43%

75

10

65

13%

87%

No
1
2
3
4
5

Questions
Are you satisfied with your current salary?
Are you satisfied connection between pay and
performance?
Are you satisfied with your retirement plan?
Are you satisfied from different allowances i.e.
medical, convince etc.
Do you have a good pension plan?

3.2. Employee satisfaction related to particular Question in graph

17

100%
200%
300%
400%
500%
600%
700%
800%
900%
1000%
1100%
1200%
1300%
1400%
1500%
1600%
1700%
1800%
1900%
2000%
2100%
2200%
2300%
2400%
2500%
100%
87%

90%

76%

80%
68%

70%

68%

65%
57%

60%
47%

50%
40%

29%
30%27%
23% 23%
16%
20%
10%
0%

47%
40%

1 2

3 4

31%

29%
20%
19%
9%
6 7

20%

16%
12%

35%
27%
13%

8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Satisfied in %

The question satisfaction in percent is given for each question at x exes and percentage is
given at y exes. As question no 1 answer by 75 employees that bar graph shows satisfied
employee in % this is 27% which means employee is not satisfied from their salary.

18

NCPG Employees satisfaction

Satisfied
53%

3.3.

Dissatisfied
47%

Comparison of different
type of employees satisfaction in percentage

19

Contract Employees satisfaction

30%

Satisfied

Dissatisfied

70%

Reqular Employees satisfaction

36%
64%

20

Satisfied
Dissatisfied

Above there are three charts are given that is for different type of employee.
That is Regular, Contract and NCPG employees satisfaction. Dark green color part of pie
chart represent satisfaction of employee and
light green shows
dissatisfied
employees. It does explain every group in pie chart; right side chart shows all employees.
Result shows that Regular employees are 36% satisfied, 30% Contract employees are
satisfied and 47% of NCPG are satisfied. Contract employees are one of the first groups of
employee that is not satisfied while regular employees are second one at dissatisfaction rate
in PTCL. The last NCPG group is good from both Regular and contract employees in
satisfaction.

21

Overall Employees satisfaction

Satisfied

Dissatisfied

39%
61%

The overall result is given above that shows 39% employee are satisfied and 61% of PTCL
employees are dissatisfied. This is huge effect of compensation on job satisfaction.

22

3.4. Summary of different type of employees Satisfaction

Type of compensation

Regular

Contract

NCPG

Salary

39%

75%

38%

Allowances

26%

17%

100%

Annual increment

45%

83%

25%

Retirement plan

19%

4%

44%

Promotion

22%

0%

13%

Bonus

39%

33%

38%

Job security

40%

0%

100%

Table shows that the different type of employees satisfaction in percentage which we can
compare Regular, Contract and NCPG employees satisfaction.

Comparison of satisfaction of Employee

Regular

Contarct

NCPG

100%
75%
39% 38%

100%
83%
45%

26%
17%

44%
25% 19%
4%

22%

39%
38% 40%
33%
13%

0%

0%

The percentages of different group of employees show satisfaction of different compensation.

The highest bar shows employee are more satisfied from that particular compensation.

23

3.5. Discussion
PTCL HR department is facing different types of problems. But due to time limitation we are
selecting only one problem i.e. compensation. PTCL HR department told us about
compensation, compensation plan for different employees .i.e. Regular ,contract, And NCPG
employees .for different group of employees they have different rules and regulations.
A total of 100 self-administered questionnaires have been distributed among the employees of
the PTCL to get data on particular variables of interest. Out of 100 questionnaires, 85 were
received of which only 75 were considered for analysis with a response rate of 75%. While
administering the questionnaires, the respondents were assured that their names will be kept
secret and the data will be used only for this project.
In questionnaires we have asked questions about compensation from the all sections of
employees. After collected the questionnaires we prepared the result in MS excel.
Result is divided into three categories
In 1st we define how many questions are yes and how many are no. yes is identified as
satisfaction and no as dissatisfaction.
In 2nd we define each employees satisfaction and dissatisfaction .Total 25 questions for each
employees showing which question is yes and which question is no than explain the entire
question in result.
Result no 3 explains research conclusion.
In result no 3 is 7 main heading .7 heading can explain the 25 question Average result the one
heading ratio and reason can explain with detail.
The 1st heading relate salary satisfaction, the regular and NCPG employees has not satisfied
from the salary why because the Regular employees scale is not update in 2011 and used
2008 scale because the salary of the regular employees is not increase the lead to job
satisfaction
2nd heading explain the allowances, in the ptcl allowances can divided in two option one is
10% of basic salary and two is 5% on performance ,and here the problem of basic salary the
in the first heading the employees is not satisfied they should also not satisfied from the
allowance and the second option performance base allowance they has not paid to the regular
employees and NCPG ,and the contract employees satisfaction ration because increase the
have high basic salary and also allowance in the performance pay it contract employees.
3rd heading is the Annual increment has received every function employees i.e. contract
employees regular employees and NCPG employees .but the basic salary is the main problem
the ration of dissatisfaction is more than 50% .the contracts employees is satisfied from the
annual increment the basic salary is high then the regular employees and NCPG employees.

24

4th heading can explain the retirement plane the contract employees is have no retirement time
they not secure in job because they not satisfied. And the NCPG because satisfied from the
retirement they no pension plane but they only received gratuity fund after one year .in the
ptcl has all the problem face by regular employees more then other function of employees
.the regular employees is promotion chances is very low and also because they have retire in
low grad in low basic salary they received low pensions from which they have not satisfied.
5th heading show the ratio of promotion .the regular employees is not satisfied from the
promotion .the promotion is very slowly of the regular employees and contract employees is
very speedy .the regular employees is not promoted in last 7 year but contracts employees is
promoted from the grad 17 to 20 only in 7 years. Because they lead to job dissatisfaction
6th heading can explain the bonus .the ptcl organization bonus paid on performance they set
category. From A to D in Category A is paid 200%, B is 150%, C100%, D50% and E is 0%
the regular employees is not mention in category A and B that only paid to contract
employees .and the regular employees and NCPG is basic salary is low and the bonus ration
can calculate is low the employees received low bonus they lead to job dissatisfaction.
7th heading can show the job security, the job security is important point because they can
retain employees for longer periods .they contracts employees have no security in the
organization the can dismissed any time without latter and information .regular employees
and NCPG is feel secure in the organization. If the employees feel secure and the
organization they can work relax and motivate for future work.

25

4. Conclusion
Results may be concluded as
Ptcl has more then 60% regular employees they are not satisfied from the
compensation especially basic salary and promotion, for the services organization
employ needs must first be satisfied then employees can satisfy customers.
The contract employees are not satisfied from the job security ,if the organization is
not giving job security ,the employees can not be loyal with organization .For
contract employees define the periods and give the security for the period.
Results and discussion shows that regular employees are not happy from the HR
policy.
Good retirement plan is the dream of every employees .when organization gives a
good retirement plane the employees are motivated for longer periods of work, but in
ptcl employees are not satisfied from the retirement plane.

26

5. Future recommendation
Future recommendations are as under

There should be similar HR policy for all the staff

Compensation benefit Should be same for all type of employees
HR policy Should promote job security
Justified salary package can help to motivate staff
Medical benefit Should be same for every employees
Salary slabs should be defined
Reporting lines Should be clear to staff to improve work efficiency
To promote healthy working environment organization should introduced work flow
charts to departments
Equal employment benefit Should be provided
Favoritism Should be discouraged
Promotion criteria Should be defined on standard basis to compensate employees
Job descriptions Should be reviewed after minimum one year according to the work
flow charts
Circulation of employees should be promoted
Inter department communication Should be improved
Financial rewards can increase work efficiency
For the contract employees Should define the working period
Give a strong security to contract employee of the define periods
For job satisfaction needed promotion of the employees the regular employees need
job promotion ,and should be given to all function of employees equal opportunity
for promotion
For regular employees should be given non financial reward. Trip for different
country, Hajj and umra.
In telecom sector ptcl is one of the best organization ,for the ptcl employees should be
give a unique compensation packages other then indirect competitor

27

6. References
Aguinis. H., Pierce. C. A. (2008). Enhancing the relevance of organizational behavior by
embracing performance management research. Journal of Organizational Behavior. 29, 139
145.
Ahmed. A., Hussain. I., Ahmed. S. (2010). Performance Appraisals Impact on Attitudinal
Outcomes and Organizational Performance. International Journal of Business and
Management. 5, 10.
Spagnoli. P, Caetano. A, Santos. S.C. (2011). Satisfaction with job aspects: Do patterns
change over time? Journal of Business Research.
Chopra, J. K. (2010). Human resource management: A contemporary approach. Delhi: D.P.S.
Publishing House.
Byars, L., & Rue, L. W. (2001) Human resource management (6th ed.). New York: McGrawHill Companies, Inc.

28

7. Appendix
Questionnaire
Name: ____________________________ Age_________________ Gender: ______________
Department: ______________ Experience: _________________ Basic salary______________
Please encircle the appropriate yes/no against each statement, according to the scale given below.

QUESTIONS ON COMPENSATION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Are you satisfied with your current salary?

Are you satisfied connection between pay and performance?
Are you satisfied with your retirement plan?
Are you satisfied from different allowances i.e. medical, convince etc.
Do you have a good pension plan?
Do you have annually increment plan?
Do you get overtime payment?
Do you get your salary at time?
Do you have facility to reimburse your expense?
Do you have family and personal leaves?
Do you have job security in organization?
Does your organization pay a bonus?
Does your organization provide family benefits?
Does your organization provide insurance facility?
I am well satisfied from the non-monetary benefit offered here.
I am often bored in my job.
I am satisfied from the chances of promotion.
I feel unappreciated when I think about my basic pay.
I feel very satisfactory with performance evaluation term and policy.
I feel satisfied when I think about pension which I well received after
retirement.
I find real enjoyment in my work.
Organization do reward financial compensation based on performance.
Pay incentive motivates me a lot to perform at optimal level.
Reward should be just base on financial compensation.
Benefits are few not satisfactory.

29

YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES
YES

NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO
NO

YES

NO

YES
YES
YES
YES
YES

NO
NO
NO
NO
NO