1. Compensation
Management
& Benefit
Class project
Submitted To: Sir. Abid Waseem
Group Members:
Akbar Lakhani 55071
Fahad Sahghal 55540
M. Sufiyan Saba 54195
Khizar Khatri 55588
Sufyan Wazir 55380

2. EXECUTIVE SUMMARY
This project has been undertaken in order to highlight the Human Resource Practices of
“Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken of
these days. A company paying more attention to its customer’s delights rather then the
customer’s satisfaction. Ufone is a company starting from scratch and has shown utmost
performance in the last seven years. Ufone owes its success to its employees believing
that providing employees with job satisfaction motivates them to work hard and provide
better results.
Company Introduction
Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular
telephony. The company commenced its operations, under the brand name of Ufone,
from Islamabad on January 29, 2001
During the year, as a consequence of PTCL’s privatization, 26% of its shares were
acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the
management of Ufone has also been handed over to Etisalat. During the year July 2005 to
June 2006, Ufone continued on the path to success. The Company further expanded its
coverage and has added new cities and highways. Ufone has network coverage in more
than 3475 locations and across all major highways of the country.
Ufone currently caters for International Roaming to more than 200 live operators across
121 countries and introduced International roaming facility for Prepaid subscribers in
Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand,
Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no
security deposit and activation charges. GPRS Roaming facility is available with more
than 100 Live Operators across 80 countries.
Mission Statement
To become the best cellular communication option available in the country for “u”.
Vision Statement
In order to evolve with our customers and to keep pace with your needs, we rejuvenated
and revamped our image by changing our visual identity. At Ufone we understand the
value of words and the need to communicate effectively and efficiently at all levels of

3. society, which is why our primary focus is on U, our valued customers bring strength to
our company.
With a fresher look than is accepted and appreciated across the board by people of all
ages, we aim to connect with you and provide you state of the art services. No matter
who you are, where you are, what you want to say, how you want to say it or how you
feel, you are our focus. Because at Ufone, it’s all about U,
Services line of Ufone
There are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. Both of
these products are available at their franchise for public.
Prepaid
Post paid
COMPANY ANALYSES
Structure of Ufone
When a company wants to compete in innovation, it needs to maximize flexibility.
Flexibility is maximized by aggregating work into larger, holistic pieces that are executed
by teams of higher wages, high skilled workers. Giving the units their own support
systems and decision-making authority to take advantage of local opportunities in
regional or specialized product markets also enhances flexibility.

4. Corporation
Engineer-
ing
Administ-
ration &
Procurem
ent
CEO
Secretariat Commerci
al
Customer
Care
Human
Resource
Finance IT
Access
Networkin
g Planning
Administr
ation
Corporate
Business
Analysis Marketing
Customer
Care
(MNP
Human
Resource
T&D
Financial
Control
IT
Corporate
Core
Networkin
g Planning
Administr
ation
Procurem
ent
Internal
Audit
Commerci
al
Corporate
Quality
Assurance
&
Retention
Human
Resource
Operation
s
Finance
Corporate
Data ware
House &
Software
Support
Corporate
Engineeri
ng
General
Administr
ation
Governme
nt
Relations
Corporate
Sales
Customer
Coordinati
on
Finance
Legal &
Taxation
Enterprise
Solution
&
Security
Operation
BSS Dealer
Sales
Customer
Care
(Service
Centre)
Perman-
ent
Finance
Operation
Enterprise
Solution
&
Security
Operation
NSS Retail
Sales
Customer
Care
(Franchise
)
Outsour-
ced
Finance
Treasury
&
Planning
Mediation
& Client
System
Site
Acquisitio
n
RGM
Support
Customer
Care
(Corp
Services)
Finance
Accounts
Network
Operation
Sales &
Distributi
on
Customer
Care
(Billing)
System
Administr
ation
Credit
Manage-
ment
Call
Centre
Customer
Care
Training

5. Keeping in view of all these factors the structure of Ufone is designed i.e. the overall
Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has
four regions and within those regions the structure is functional .The decision making
authority is centralized at the top but within the regions it is decentralized i.e. regional
heads have to inform top management before making any decision.
Departmental Division
In order to give a jump-start to the company, a comprehensive initiation plan has been
made along with aggressive customer acquisition, care and retention strategies. Ufone has
the best integration of eight departments each project director.
Engineering
Administration
Business Analysis
Marketing & Sales
Customer Care
Human Resource
Finance
Information Technology

6. Human Resource Department at Ufone
UFONE considers their employees to be the asset of the company, so in order to retain
their employees following practices are followed in the company.
HR PRACTICES
Recruitment and selection
Orientation
Training and development
Compensation and Benefits
Performance Appraisal
WORK FORCE
HR at UFONE is divided into the following two major categories
 Permanent Employees (1500-2000 Approximately)
 Outsourced Employees (2000 Approximately)
Permanent employees
HR Permanent employees are further divided into following two categories.
 Operation
 Training and Development
Operational Department
It covers all the areas including hiring recruitment, selection and payroll etc. HR
operation team manages all the employee activities gathers all the information and make
use of it for further processes.

7. Training and Development
HR team of training and development make a performance evaluation of all the
employees and the see where the gap occurs between the actual performance and the
desired performance. Then training is designed for area which needs to be improved. On
the job and off the job both the trainings are given according to the need of the employee.
Employee Benefit & Compensation
Training & Development
Employee Motivation
Retention of Employees
Career Planning/ Succession Planning
Employee Relations/ Communication
Employee Awards
Employee Events Management
Medical & Life Insurance
COMPENSATION AND BENEFITS
Ufone follow the performance base pay structure and pay for their performance and work
output.
Compensation
The total returns which an employee gets against his or her work.
It maybe:
Employee Health Plans
Employee Insurance

8. Employee Leave
Employee Retirement Income Security Act
Executive Compensation
Maternity & Paternity Benefits
Pension & Retirement Plans
Wages & Salaries
Workplace Programs
Compensation strategies are usually market based and is linked with the performance
with a greater emphasis on variable pay. Salary adjustment is based on the performance,
market movement and internal/ external equity adjustment. Revision of compensation is
based on total pay and monetization of benefits.

9. UFONE focuses on providing a large number of the compensation and benefits to its
employees in a form of the following categories:
Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” it
is Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is
Rs.20000 and for Engineering it is Rs.20000 to 25000.
Medical Allowance: 1 gross salary per year is given to each employee; half is
given in mid of the year and remaining half will be given at the end of the year.
Health Insurance: Like all other cellular companies Ufone also provides health
insurance policy to its employees.
Loan Insurance: At Ufone loan insurance policy is also provided to their
employees through banks.
Transport allowance: Rs 2500 are given to female employees only, if they travel
on local transport.
House Rent: 10% of the basic salary is given to each senior/ executive level
employee.
Overtime: All employees are entitle for the overtime more then 130 hours per
month .For overtime UFONE have specific formula that apply on the employees
gross salary, due to which every employee have different per hour overtime rate.
EOBI: EOBI is contributed as per the standard

10. Children Education allowance: 1 gross salary per year
Provident Fund: All permanent confirmed employees are eligible for
membership of Ufone Employee Provident Fund Scheme. An employee
contributes 8.33% of month basic salary in a year and an equivalent amount is
being contributed by the employer.
Leaves: 7 Casual and 10 sick leaves are given to each employee at all level.
Travel Policy: Revised and categorized different levels such as the senior level,
the middle level and the junior level staff.
Meal deduction Claims: Meal books are to be maintained of each employee who
issues it, their name, employee number, designation, signature and number of
book and date at which it is issued has to be recorded. The reason for maintaining
the record is that the company pays 60% of the expense came over the food while
40% has to be deducted from the employee’s salary.
Expense Claim: The expense Claims are the expenses which an employee make
on the behalf of the company E.g. fuel used for business travel, overnight stays on
a business tour etc, such claim are made while returning back to the office , after
the whole process the HR pay them back the next month along with their salary.
Overtime Claim: If an employee has worked for more than the regular time, they
claim for the overtime amount other than their salary which they receive the next
month. Overtime claim have to be approved through HR department.
Medical Claim: Different medical facilities are provided to employees at
different level of hierarchy, so if any employees make use of this facility they can
claim for the amounts to be return next the month while submitting the hospital
receipt. Their medical clearness is done by the HR department.
Mobile deduction Claim: Such an expense claims which are made if an
employee has made long duration call for the official purpose and they have
exceeded the limit given to them then they can make a claim by attacking a copy
of mobile bill and if its valid then HR department approved it and pay the
employee their claimed amount along with their monthly salary of the following
month.
Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to
the HR department, further HR head office send it to the regional HR departments

11. their concerned employees salary slip and they either give their employees
through cash or transfer to their accounts.
Job Analysis
Job analysis is systematic exploration of activities within a job. It is a technical procedure
used to define the duties, responsibilities, and accountabilities of job. It is proved that job
analysis is almost first activity of HR department to be done. Because on this, pay
packages, compensations, job descriptions, job specifications, job evaluation etc are
made. So at Ufone experts do job analysis. They construct “Job Analysis form”.

12. Ufone Job Analysis
Following steps should be taken by the Ufone.
Step1: Obtain Documentary information such as procedure manuals and written
instruction.
Step 2: Ask about more general aspect such as the job purposes, the main activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.
Information Collected in Job Analysis
Work activities
Worker-oriented activities
Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles
Work performance
Job content
Personal requirements for the job
Why Ufone conducts job analysis
The Ufone conducts the job analysis to get the right person for the right job at the right
time. If the Ufone does not conduct the job analysis then there will be a huge chance of
selecting the wrong person or to reject the right person who is suitable for the job.
Knowing Who Does What
Major duties or activities required
Conditions under which the job is performed
Job analysis procedure of the Ufone
There are mostly following procedure of the Ufone about analysis of a job:
Direct Observations
Interviews
How Ufone formulate job description and specification
In Ufone most of the announcements for jobs are being done through newspapers having
wide circulation in the country. Whenever Ufone offers any job it also describes the

13. responsibilities and duties with in a job to be performed. The HR people after analyzing
any job that has become vacant makes a job description defining clearly what the
jobholder will do and how it will be done. On the whole job description defines
characteristics of job, environmental conditions and responsibilities of the job.
The HR people define the job in such a way that it clearly describes the job and guides
new employees what to do etc. now they are moving towards E-Recruitment also to
ensure best candidates apply for the jobs and professional people are employed in the
Organization.
Job specification
Ufone also has well developed criteria for each job in term of the job specification. In all
the area of the jobs the pre- requisite for the job are defined for example:
Qualification required for a job
Skill required for a job
Experience required for a job
Job Description
Human Resource Division analyzes each job and its required outcomes. Job analysis is
done by analyzing the past experience and emerging trends.
Ufone holds documents about terms, duties responsibilities, and specifications about each
job. In job description Ufone define the following:
Duties of HR manager is to select, hire and train employees
Responsibilities are to update records and processing insuring claims
Task is to complete the job related activity

14. PERFORMANCE MANAGEMENT SYSTEM
Objective of the Performance Management:
The basic objective for performance UFONE employees circles around the following:
To look at Performance system as a means to an end
Setting an individual’s goal
Aligning goals across the company
Ensuring employees get coaching from managers
Determining merit pay
Identifying training and development needs
Providing data for promotion decision
Input from multiple source on worker performance
The Performance Appraisal Process:
The Performance appraisal system used by UFONE for reviewing the performance status
of its employee starts with identifying specific appraisal goals set by each Group for each
cadre. After this a detail job analysis is done with looking in account the job expectation
and then matching the actual performance with the desired performance. Afterward the
performance is appraised according to the set standards and this appraisal is not done by
the supervisor alone, their major focus is on taking into the account the employee’s
perspective as well. Therefore whenever the appraisal is done employee is fully
participative in the process.
Performance Appraisal Method Use by UFONE
UFONE is using 180-Degree Performance Appraisal Method. Within this method,
managers, peers, customers or colleagues are asked to complete questionnaire on the
employee being assessed. In UFONE, performance of an employee is appraises twice a
year. Once in June while other in December.
In the questionnaire there are five sections and in each section there are five questions
related to the performance of employee. There are total 100 points from which an
employee gets.

15. Rewards Related to Performance
There is also a reward related to performance of the employees. For “Customer
Facilitation Agents” there 50% pay is based on their performance which is assessing
every moth by their managers. For other employees like in administration, engineering,
finance, marketing, etc their performance is assessed after every six and they get
increased Rs.5000 in their salary as a reward. In each case employee have to show
consistent performance to win reward next time