Pakistan Telecommunication Limited

Submitted to:
Ms. Asma Nisar

Submitted by:
Muhammad Waleed 10-4665
Rida Tariq 10-4758
Mamoona Razzaq 10-4677
Qurrat-ul-Ain 10-4775

Submission Date:
07-05-2013

Contents List of Visuals 3 Executive Summary 4 Introduction 5 Methodologies 5 Data collection: 6 Methods: 7 Measures: 8 Results 8 Qualitative Analysis: 8 Quantitative Analysis: 9 Analysis of Findings 9 Conclusion and Recommendations 10 Appendix 11 Questionnaire Survey 15 Interview Guide 16

List of Visuals
Figure#1: For how long you are working here?
Figure#2: What was the main reason for leaving your previous job?
Figure#3: Are you satisfied with your current salary?
Figure#4: What are the satisfying factors for you other than salary?
Figure#5: If you are offered a job with more incentives, would you go for it?

Executive Summary
The purpose of this report is to focus on the attitudinal outcomes of employee’s regarding their salaries and their satisfaction level by using both qualitative and quantitative methodologies. There are two variables in our research salary and job satisfaction. Job satisfaction is measured by the respondents’ responses as asked in our data collection process. We asked various questions relating it by factors other than salary also such as promotion opportunities, growth chances, working conditions and organization recognition. From the responses we get we generalized the feedback as to support the hypothesis as a whole. Our findings are measured from the various questions asked which were related to how salaries create a feeling of satisfaction among the employees. Is salary the major reason of employees ‘satisfaction? We are relating Job satisfaction with salaries. We collect qualitative data by conducting interviews to explore the Relationship between Compensation and job Satisfaction. We collect quantitative data by conducting surveys. Our findings of this report are that salaries are positively related to job satisfaction i.e. low salaries lead to dissatisfaction. But only if the financial condition of an employee is not adequate. Other finding is that Job satisfaction of an employee who places extreme importance on pay would be positively impacted if he or she receives a salary within expectation i.e. If Current salaries of employees cannot meet their expectations then dissatisfaction will be outcome attitude of employees. But, the overall findings are limited to just one organization. It cannot be generalized to overall industrial scenario in the country so further research is required in order to find justifiable results.

Introduction
Compensation is the reward received by a worker in return for his/her input to the organization. It is an essential part of Human Resource Management which helps in motivating the workers and improving organizational effectiveness. Motivation is a human psychological characteristic that contributes to a person's degree of commitment, (Adeyinka, 2007). In our report we focus on the relationship between compensation and job satisfaction. Salary as a part of compensation, it has an effect on job. (Cathrine, 2008). According to Herzberg theory low salaries lead to job dissatisfaction not to satisfaction, (hezberg, 1956). We will put this theory in Pakistan’s telecommunication company (PTCL). We will further put emphasis on the reasons behind this problem. This study responds to three calls for research to include: (1) low salaries and dissatisfaction, (2) Current salaries of employees and their expectations, (3) underpaid employees feelings and outcome attitude.
Methodologies
The research on which this report is based drives from survey and relates to Pakistan telecommunication company limited employing approximately twenty two thousand people in 2012. The company is located in all over the Pakistan. PTCL is leading information and technology service provider in the region they are the link that allows global communication. They are striving towards mobilizing the world for future, by becoming the partners in innovation, as they are ready to shape a future that offers telecom services to bring the world closer. As their mission statement is stated that they have to achieve their vision by having “an organizational environment that fosters professionalism, motivation and quality; an environment that is cost effective and quality conscious; Services that are based on the most optimum technology; "Quality" and "Time" conscious customer service; Sustained growth in earnings and profitability”.
They have 90% of market capitalization with their product like wireless and wire line broadband services. There 200 branches are spread in allover Pakistan. They are market leader in telecommunication sector. In 1962 PTCL was establish as first Pakistan’s telecommunication company. It was state owned company but in 1994 govt. of Pakistan sold its share,26% of shares and control was owned by Etisalat Telecommunications and 12% to the general public in under an “intensified Privatization Program“ of prime minister Shaukat Aziz. However 62% of shares are still remain under the management of govt. of Pakistan. The company has been seen as good employer with some improved human resource policies but still they have low degree of organizational commitment from their employees. Most other employees are dissatisfied with their pay level and other benefits that are given to employees. however period of 1990s to onward was characterized by ongoing change due to both technology advancement and coming govt. to semi-govt. organization. These changes were accompanied by increased efforts and expenditure in specific areas of training such as new technology continues improvement and team working. Company started to downsize its employment level to about 22,000. The downsizing had been done by voluntary redundancies and early retirements. From the PTCL’s perspective this reduction would not have been traumatic; nor would it have been costly. They reduce their employment level from 60,000 to 22,000 employees. The period of 1990-2010 witnessed a difficult time for company. Over 70% demand of their land line service was dropped and profits were significantly down from 30 million to 3 million. The new management brought significant change but employees feel unsecure regarding their job. When the technology change PTCL need less employees because now most of their operations are automated. So they reduce their employment level and train employees which were left. New Management reduce Union power, now union is not enough strong to defend workers benefits. Employees are not satisfied their salary; and all worker make strike on 2010.result of this strike is that PTCL increase their employee’s yearly salary increment from 20% to 30% in this 20% is basic increment and other 10% will be based on their performance.
Data collection:
An important contribution of this study is its cross sectional study, this offer a unique insight into the feelings of employees. The research design has adopted questionnaires as well as in-depth interviews. There were three parts of data collection survey; analysis of dissatisfaction data; and interview. The purpose of the survey was to test statistically the relationship between compensation and job satisfaction. It was conducts in April 2013 using random sample. We use questionnaire survey for our quantitative data collection tool. The survey questioners were distributed among the employees of PTCL at human recourse department of PTCL. The response rate was high at 99 percent.
The aim of our qualitative phase was to explore the relationship between the salaries and job satisfaction. We use in depth interview method for our qualitative data collection tool. We conduct two interviews with manger and with senior manager of HR department of PTCL. we start interview by introducing our self to interviewee by our name, our identity as student of FAST (national university of computer and emerging sciences) our purpose of research, that is, in which way compensation effects the satisfaction of employee. After that we define our variables satisfaction and dissatisfaction.
According to Herzberg theory he focused on two things; motivation and hygiene. These factors do not lead positively to satisfaction for longer tenure, but in the absence of these factor at work place, lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate/reasonable in a job, appease the employees and do not make them dissatisfied. These factors are extrinsic to job not intrinsic. Hygiene factor describe the job circumstances. The hygiene factor represents the physiological needs which the individuals wanted and expected to be fulfilled. Hygiene factors include Pay and benefits. The pay or salary structure should be appropriate and reasonable and according to employee’s satisfaction. Compensation must be equal and competitive to those in the same sector in the same area.
Methods:
Our research includes both quantitative and qualitative methodology. For our Quantitative portion we conducted a questionnaire survey which included seven questions in which we asked the time duration of their previous and current job, asked the reasons for leaving their previous job, their overall satisfaction with their current salaries and asked other factors that contribute to the employees job satisfaction. The sample size of our survey was thirty. We asked questions from 13 females and 17 males. We went to PTCL and distributed the questionnaires amongst the employees and got their feedback.
For our qualitative portion we made an interview guide, face sheet and conducted the interview from three managers; HR Manager, Senior HR manager and two employees in PTCL. It was a prolong discussion in which we asked similar questions like we asked in the questionnaire, we took an in-depth interview from all the managers as well as the employees.
(The copy of questionnaire survey & interview guide is attached in the appendix)
Measures:
* Job Satisfaction: This is measured by the respondents’ responses as asked in our data collection process. We asked various questions relating it by factors other than salary also such as promotion opportunities, growth chances, working conditions and organization recognition. From the responses we get we generalized the feedback as to support the hypothesis as a whole.

* Salaries: This is measured from the various questions asked which were related to how salaries create a feeling of satisfaction among the employees. Is salary the major reason of employees ‘satisfaction? We are relating Job satisfaction with salaries. From the responses we got we supported the hypothesis.
Results
Our result consists of two sections: * Qualitative Analysis * Quantitative Analysis
Qualitative Analysis: The result suggests that the salary is the most contributing factor to the actual employee’s job satisfaction. In a question the HR manager replied;
I’m here because the current condition job market scenario is in deep recession. It’s not easy to find a new job here, although my salary is enough to overcome my expenses but it is not at my satisfaction level.
Another employee said;
I value my self-respect more in an organization but it doesn’t mean that I won’t pay attention to other things as well. Overall your main focus is your salary you are receiving. If you are only hand to mouth than this self respect won’t mean a lot to me.

The above statement supports our point of financial conditions currently faced by the person so it does a play an important role. And the other respondents have the same views as well.
Quantitative Analysis: Our questionnaire responses were as follows: * 65% employees were on their jobs for more than 5 years. * 50% employees left their previous jobs because of low salaries. * 67% employees are not satisfied with their current salaries. * 53% employees are not satisfied with their current job. * 79% employees don’t consider salaries the most important factor if they are financially stable. * 81% employees consider recognition the most satisfying factor after salaries. * 93% employees would shift to new job if they are given more incentives.
The above analysis supports our view that the PTCL’s employees are currently facing low job satisfaction level.
(For graphs, refer to the appendices section)
Analysis of Findings
By combining both the results of our quantitative and qualitative data, we can analyze that the overall effect on an employee’s job satisfaction mainly depends on the salary it receives. Whether, the employee is financially not well or it is well the main focus of its job satisfaction mainly relies on the financial incentives it is to receive. The only difference lies here that whenever an employee gets economically well he starts to lay little importance on his salary and starts to focus on other achievement factors such as organizational recognition, promotion and growth opportunities and working conditions, etc. But this does not abolish the overall importance of the person’s salary only its importance scale varies along.
But, there are certain limitations to our conducted research that: * The sample sizes for both the quantitative and qualitative analysis was small as per the availability * The organization’s policies did not gave us complete consent and access to fulfill our research requirements * There were time and budget constraints
Conclusion and Recommendations
The main focus of our report was on the effect of compensation on the satisfaction of employees. Our report includes data collection and both Qualitative report; In-depth Interviews, and Quantitative report; surveys and questionnaires. After doing all the research we came to a conclusion that Yes compensation pays a vital role in job satisfaction. If employees get good compensation plan they would work much harder and would be willing to stay in that organization. After compensation, recognition also plays a very important role in job satisfaction because when you are appreciated for the work you do, you become satisfied with your job. Employees of PTCL are not satisfied with the compensation they are getting that’s why they are willing to shift to another company where they would receive a better compensation plan. But, the findings further need to be refined in order to have pure and relevant results.

Appendix

Questionnaire Survey
Name: Age:
Gender: No. of Households:
______________________________________________________________________________
Q1: For how long you are working here? * Less than 1 year * 1-2 years * 2-5years * More than 5 years
Q2: What was the main reason for leaving your previous job? * Low Salary * Poor working environment * Low recognition of work done * Less promotion & growth opportunities
Q3: Are you satisfied with your current salary? * Yes * No
Q4: Are you satisfied with your current job? * Yes * No
Q5: If you are financially well, then will you still consider salary the most important factor? * Yes * No
Q6: What are the satisfying factors for you other than salary? * Promotion & Growth opportunities * Working environment * Recognition * Non-financial benefits
Q7: If you are offered a job with more incentives, would you go for it? * Yes * No

Interview Guide
Name:
Age:
Gender:
No. of Households:
______________________________________________________________________________
Q1: For how long you are working here?

Q2: What was your last job?

Q3: Why did u leave your previous job? (If the person had the last job)

Q4: Are you satisfied with your current salary?

Q5: Are you satisfied with your current job?

Q6: If you are financially well, then will you still consider salary the most important factor?
(Further why/why not questions?)

Q7: What are the satisfying factors for you other than salary?

Q8: If you are offered a job with more incentives, would you go for it?

Q9: Anything else you would like to tell us about your job?