6. HR PRACTICES AT ZONG
INTRODUCTION
• OBJECTIVE
– The objective of this research is to analyze Human
Resource (HR) practices in Zong. The research
project is a requirement for the award of degree
”Masters in Human Resource Management”
(MHRM) by SZABIST.
6
7. HR PRACTICES AT ZONG
INTRODUCTION
• METHODOLOGY
– Interaction with concerned HR personnel of Zong,
and other employees.
– E-mails.
– Consulting HR Text Books.
– Zong Website/Internet.
7
8. HR PRACTICES AT ZONG
INTRODUCTION
• SCOPE
– Scope of this research is limited to Zong’s HR
Department only.
8
9. HR PRACTICES AT ZONG
ZONG INTRODUCTION
• In 2004, Paktel was the first mobile
telecommunication company which launched
GSM services in Pakistan.
• In 2003, Millicom, bought Paktel.
• In January 2007 Millicom sold Paktel for $284
million to China Mobile (CMPak).
• So far CMPak has invested more than US$
2500 million in telecom sector in Pakistan.
9
Con’t
10. HR PRACTICES AT ZONG
ZONG INTRODUCTION
• CMPak’s edge comes from the experience and
expertise of running the world’s largest
telecom service.
• In 2007 China Mobile Company introduced its
new brand in Pakistan called “ZONG” formally
“Paktel” with introductory slogan “Say
everything” or “Sub Kah Do”.
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11. HR PRACTICES AT ZONG
ZONG INTRODUCTION
• VISION
– “Making Communication Exciting”
– Deliver continuous innovation and exceptional
quality services.
– In doing so, CM Pak will become our customers’
partner of choice, our industry’s employer of
choice and our shareholder’s investment of
choice.
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12. HR PRACTICES AT ZONG
ZONG INTRODUCTION
• MISSION
– To be the leading mobile Operator of Pakistan by
continuously innovating and offering exceptional
quality services; to be a good corporate citizen
and envoy of friendship between China and
Pakistan.
12
13. HR PRACTICES AT ZONG
ZONG INTRODUCTION
• CORE VALUES
– Commitment to Customer Satisfaction.
– Passion for Business Excellence.
– Trust and Integrity.
– Respect for People.
– Responsible Corporate Citizen.
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14. HR PRACTICES AT ZONG
ZONG INTRODUCTION
14
CTO
(Mr Yan)
HR HEAD
(Mr Zhang)
DIR SALES &
DISTRIBUTION
NPI
O & M
S &D M A.S.M
IT
B.D.O B.D.O
CEO
(Mr Fan Yun Jun)
CFO
(Mr Feng)
COO
(Mr Fan)
CIO
(Mr Sajid)
LEGAL &
REG:
ADMIN
PMO
NPI
DIR
MARKETING
DIR
CORP SALES
DIR
FINANCE
16. HR PRACTICES AT ZONG
ENVIRONMENTAL ANALYSIS
• EXTERNAL ENVIRONMENTAL ANALYSIS
– Immense competition with other cellular
companies like Mobilink, Ufone, Warid and
Telenor.
– Other companies have huge market shares.
– The ZonG external-environment includes their
external customers, agents and distributors,
suppliers, our competitors, etc.
– Other forces affecting the environment e.g.;
Political forces, Economic forces, Socio-cultural
forces, and Technological forces.
16
17. HR PRACTICES AT ZONG
ENVIRONMENTAL ANALYSIS
• INDUSTRIAL ANALYSIS
– Zong is doing good since its fairly new in the market and still giving
competition to the old telecommunication members.
– The data below shows the comparison of last 5 years subscribers of
different telecommunication organizations.
17
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
2007 - 08 2008 - 09 2009 - 10 2010 - 11
MOBILINK
UFONE
ZONG
TELENOR
WARID
Subscribers
Con’t
23. HR PRACTICES AT ZONG
ENVIRONMENTAL ANALYSIS
• HEADCOUNT – FEB 2011
23
Con’t
Total Permanent Employees 788
Total Outsourced Employees 1704
20-30
55%
31-40
36%
41-50
7%
51-64
2%
Age Analysis Avg. Age
32 Years
24. HR PRACTICES AT ZONG
ENVIRONMENTAL ANALYSIS
24
Con’t
Diploma
Engineer
1.14%
Engineering
Graduate
23.33%
Finance
Professional
2.99%
Graduation
29.16%
M.Phil.
0.28%
MBA
26.17%
Post
Graduation
15.08%
Under
Graduate
1.85%
Qualification Analysis
HQ
48%
North
15%
Central
I,II,III
23%
South
14%
Staff at Locations
31. HR PRACTICES AT ZONG
SWOT ANALYSIS
• STRENGTHS
– China mobile is a Strong Historical and trusted
Brand.
– Continuously improving its Network Services.
– Backing of World’s Largest Mobile Company.
– Strong relationship with the Government and
PTA.
31
Con’t
32. HR PRACTICES AT ZONG
SWOT ANALYSIS
• STRENGTHS
– Lowest rates nationwide rates.
– Strong image of parent company.
– Network portability.
– Huge location and geographic coverage(has around
6000-7000 sites all over Pakistan).
– New talent & fresh graduates are preferred .
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33. HR PRACTICES AT ZONG
SWOT ANALYSIS
• WEAKNESSES
– Weak brand image - still fairly new to the market.
– Fresh graduates are preferred over senior and
experienced ones.
– Acquisition from Paktel with its beurocratic
environment.
– Work environment is very casual.
– Label of “Chinese Brand”.
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34. HR PRACTICES AT ZONG
SWOT ANALYSIS
• OPPORTUNITIES
– Can expand globally from Pakistan.
– Opportunity of grow its customer base due to
increasing trend of using mobile phones.
– Can win the customers of its competitors by providing
them superior service on lower price.
– Zong can be a pioneer in southern Punjab, Northern
areas and Baluchistan.
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35. HR PRACTICES AT ZONG
SWOT ANALYSIS
• THREATS
– Threats of new entrants.
– Threat from other cellular brands.
– Bad economic/security conditions of the country.
– Electricity & Energy Problems.
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37. HR PRACTICES AT ZONG
HR DEPTT AT ZONG
ZONG HR STRUCTURE
37
HEAD OF HR DEPARTMENT
Sr. Manager HR
(Human Capital & Compensation)
Sr. Manager HR
(OD, Performance Management &
HR Operations)
38. HR PRACTICES AT ZONG
HR DEPTT AT ZONG
• ZONG HR MANAGEMENT
38
Fayyaz Hussain Hashmi
Sr. Manager HR, (Human Capital & Compensation)
• Qualification: MBA, Post Graduate Diploma in Strategic HRM,
Diploma in Global HR Management.
• Experience: 17 Years total HR Experience. 05 Years at Zong.
Shumaila Afzal
Sr. Manager OD, (Performance Management & HR
Operations)
• Qualification: MBA
• Experience: 6.5 Years total HR Experience. 2 Years at Zong
39. HR PRACTICES AT ZONG
ZONG HR OBJECTIVES
• Build Capacity To Grow
– Short - Medium - Long Term
• Strengthen Organization & People
Capability
• Institutionalize H.R Processes
/Interventions
• Partner in Successful Transformation
• Become Employer Of Choice
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40. HR PRACTICES AT ZONG
FUNCTIONS OF HR DEPARTMENT
40
COMPENSATION
AND BENEFITS
HR OPERATIONS
OD &
PERFORMANCE
MANAGEMENT
HUMAN CAPITAL
ACQUISITION
41. HR PRACTICES AT ZONG
HR DEPTT AT ZONG
• KEY RESPONSIBILITIES OF HR DEPARTMENT “AT HQ”
– HR Budgeting & Headcount Planning
– Recruitment & Selection
– Employee Record Management
– Salary & Benefits Planning & Processing
– Training & Development
– Performance Management
– Employee Relations, Employee’s Grievances
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42. HR PRACTICES AT ZONG
HR DEPTT AT ZONG
• KEY RESPONSIBILITIES OF HR DEPARTMENT “REGIONS”
– Employee Communication and Support
– Support in Recruitment & Selection
– Handle Employee Logistics , exit interviews & even
management
– Support in Training & Development & Performance
Management
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44. HR PRACTICES AT ZONG
HR STRATAGY & PRINCIPLES
• STRATEGIC ROLE OF HR
– Source
• Staffing Strategy and Capability
• Employer Branding & Marketing
• People Planning
– Perform
• Performance Development
• Productivity/Effectiveness
– Develop
• Talent Management
• Learning & Development
• Leadership Development
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45. HR PRACTICES AT ZONG
HR STRATAGY & PRINCIPLES
• STRATEGIC ROLE OF HR
– Affiliate
• Reward and Recognition Philosophy
• Reward
• Diversity
• Employee Engagement and Culture
– Initiate
• Change Management – Cultural Transformation
• Organizational Development
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46. HR PRACTICES AT ZONG
HR STRATAGY & PRINCIPLES
• ZONG HR GUIDING PRINCIPLES
– Align – Integrate – Innovate
• With Business – H.R Interventions – H.R Practices
– Facilitate Change Effort
• Build Interventions That Support Change & Growth
• High On Touch – Advise & Support Line
• Train People on Change & Transformation
• Benchmark Best Practices
– Create Impact
• Tangible Results - Work Culture – People
• Lead in H.R Innovation
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48. HR PRACTICES AT ZONG
HR PLANNING PROCESS
Need for a new job is analyzed by a
Department
Need is conveyed to HR Department
HR Deptt analyze Job responsibilities &
competencies required
Job Description encompassing Job title,
Deptt, SKA, Gender and Working
location is devised
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49. HR PRACTICES AT ZONG
REC & SELECTION PROCESS
49
Preliminary
• Cost of Recruitment
• Time required for recruitment process
• Approval CEO and Dir HR & Finance
Add
• Newspapers
• Official Web Site
Applications
• Receive Applications
• Sift Applications as per requirement
• Call letters
Interview • Competency based interview by a panel of HR and
Line manager
Offer • Offer and acceptance letters are given to the
candidates
Checks • Back ground checks are conducted
Joining • Joining letters and instructions are given
to successful candidates
50. HR PRACTICES AT ZONG
PERFORMANCE MANAGEMENT
• PROCESS OF PERFORMANCE MANAGEMENT
50
Step-I
Setting up of
SMART
objectives
and
competencies
Step-II
Agreeing T&D
and resource
requirements
Step-III
Interim/ Half
Yearly
Step-IV
Annual
Reviews
Step-V
Appraisal
Decisions
51. HR PRACTICES AT ZONG
PERFORMANCE MANAGEMENT
• ASSESSMENT RATINGS AND EFFECTS
51
(Performance Improvement Program)
52. HR PRACTICES AT ZONG
PERFORMANCE MANAGEMENT
• ASSESSMENT RATINGS AND EFFECTS
52
Scoring
Grade
Increment
Percentage
Annual Performance Bonus
Disbursement
A 16-20% of Gross Salary 100% of the bonus declared
B 11-15% of Gross Salary 80% of the bonus declared
C 07-11% of Gross Salary 60% of the bonus declared
D 02-06% of Gross Salary 40% of the bonus declared
E 00-03% of Gross Salary 0%
53. HR PRACTICES AT ZONG
PERFORMANCE MANAGEMENT
• ASSESSMENT RATINGS
53
Scoring Grade Bell Curve distribution percentages
A 10%
B 15%
C 50%
D 15%
E 10%
A 10% B 15% C 50% D 15% E 10%
62. HR PRACTICES AT ZONG
OBSERVATIONS
• Adherence to organizational HR policies/ processes is not as
required.
• Female induction is less.
• Senior and experienced employment candidates are ignored.
• Less efforts for Branding Zong .
• Negligible services available in Southern Punjab, Baluchistan
and Northern Areas.
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64. HR PRACTICES AT ZONG
RECOMMENDATIONS
• Good HR policies/processes have been devised by the
organization and strict compliance may be practiced at all
levels.
• Female induction may be increased for ensuring equal
opportunities.
• Senior and experienced employees may also be given due
preference and developed accordingly.
• Strong Branding be done to make Zong.
• Expansion in Southern Punjab, Baluchistan and Northern
Areas may be undertaken at the earliest.
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67. CONCLUSION
Zong offers several promotions, services and packages to cater
to different needs of a wide variety of customer base. They
have done considerable research In order to understand
customer needs of this country based on their cultural as well
as religious compulsions. For the first time users will get what
they want, rather than being made offers that suit operational
needs more than user needs. China mobile has proven itself as a
brand now and it seems like they are going to give competitive
environment to other cellular companies in coming days. The
hardest part of china mobile is to rebuild the image that had
been lost by Paktel. They are still a fairly new brand and their
customer base is limited in comparison to the market giants so
they need to be really innovative and use young/experienced
talent in order to reach the top.
