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 way is compensation, 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.
1

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 must 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
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 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

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.

4
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

Customer Satisfaction

Teamwork

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

To provide quality services to its customers in Pakistan.

1. To provide maximum satisfaction to its customers by using the latest technology.

2. To increase the worth of owners.
3. To lead the telecommunication industry in Pakistan.
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 state-of-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.
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

10

"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
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

11

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, must 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.
2.
3.
4.
5.
6.

To reward employees past performance

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

12

7. To reduce unnecessary turnover

To achieve these goals, policies must 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
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

13

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.

14

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.

15

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.

16

3. RESULT
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 company-scales 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 career-growth 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

17

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.

18

NO

Satisfi
ed in
%

Dissatis
fied in
%

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?

75

51

24

68%

32%

75

35

40

47%

53%

14 Does your organization provide insurance facility?

I am well satisfied from the non-monetary benefit
15 offered here.
16 I am often bored in my job.

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 basic
18 pay.
I feel very satisfactory with performance evaluation
19 term and policy.
I feel satisfied when I think about pension which I
20 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%

N
o
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?

19

observ
ation

Yes

75

3.2. Employee satisfaction related to particular Question in graph

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.

20

3.3.Comparison of different type of employees satisfaction in percentage

Reqular Employees satisfaction

36%

Satisfied
Dissatisfied

64%

NCPG Employees satisfaction

Satisfied

Dissatisfied
47%

53%

21

Contract Employees satisfaction

30%

Satisfied
Dissatisfied

70%

22

On previous page 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.
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.

Overall Employees satisfaction

Satisfied

Dissatisfied

39%
61%

23

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%

24

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.

4. 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 all the 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

25

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.
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.

26

5. 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.

27

6.0 Future recommendation

Future recommendations are as under

Similar HR policy for all the staff

Compensation benefit must be same
HR policy must promote job security
Justified salary package can help to motivate staff
Medical benefit must be same
Salary slabs should be defined
Reporting lines must be clear to staff to improve work efficiency
To promote healthy working environment organization should introduced work flow charts
to departments
Equal employment benefit must be provided
Favoritism must be discouraged
Promotion criteria must be defined on standard basis to compensate employees
Job descriptions must be reviewed after minimum one year according to the work flow
charts
Circulation of employees should be promoted
Inter department communication must be improved
Financial rewards can increase work efficiency
For the contract employees must 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 is give a
unique compensation packages other then competitor

28

6. References
Aguinis. H., Pierce. C. A. (2008). Enhancing the relevance of organizational behavior by
embracing performance management research. Journal of Organizational Behavior. 29, 139145.
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: McGraw-Hill
Companies, Inc.
Human Resource Management (Twelfth Edition) by Gary Dessler and Biju Varkkey

29

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.

30

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