reward management of Mobilink

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					Reward Management


First of all, we would like to thank Almighty Allah for granting us the
wisdom and knowledge to do this project.

We express our sincere gratitude to our teacher Sir Syed Ali Abdullah
Mahboob who inculcated the basics of Staffing Management that guided
us all through our work.

We would like to extend our special thanks to Mr. Massoud Shaffi
(Electrical Engineer) for lending us his support and providing us with all
the valuable information in due course of time.

The account of acknowledgement will remain incomplete if we do not
express our sincere appreciation, indebtedness and gratitude to our
parents. They have always been a source of encouragement for us.

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Reward Management


Man in his natural psychological state wants or needs to interact with
other people; it’s his inborn desire. As the world is progressing towards a
faster and a quicker pace, communication now is of vital importance. In
today’s world, time is money and with efficient and less time consuming
communication, money is being saved.

In the complex and ever growing world of communication, cellular
technology is of great importance. It surely shrinks the world as it is in
true sense “global”. Our report is about a major cellular company that
provides a global access in the world of communication. It’s Mobilink.
This report contains in depth analysis of company’s compensation and
reward structure and strategies.

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Reward Management

                        TABLE OF CONTENTS

              ACKNOWLEDGEMENT                    PAGE 01

                      ABSTRACT                   PAGE 02

                    INTRODUCTION                 PAGE 05

                  MISSION STATEMENT              PAGE 06

                  MOBILINK'S VISION              PAGE 06

                  MOBILINK'S VALUES              PAGE 07


      TOTAL STRENGTH OF EMPLOYEES                PAGE 09

       HIERARCHY OF HR DEPARTMENT                PAGE 10

                  HRM DEPARTMENT                 PAGE 11

          HR DEPARTMENT SECTIONS                 PAGE 12
                                                 PAGE 13
                   REWARD SYSTEM
                                                 PAGE 15

         SETTING STARTING SALARIES               PAGE 17

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                                              PAGE 18


                MOBILINK                      PAGE 20



                  CRITICAL REVIEW             PAGE 25


                    CONCLUSION                PAGE 27

                  RECOMMENDATIONS             PAGE 28

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Today, the telecommunications industry is exposed to fierce competition.
National and geographical borders no longer coincide with those of
telecommunications. The same products and services are developed and
offered in a number of different countries. Since, the invention of
telephone as a medium of communication, the telecommunication has
been growing by leaps and bounds. Competition among different firms
has led to creative and innovative solutions regarding the usage of
phones all over the world. Mobile phone is one such creation, in this
regard, that had taken the telecommunication industry to new heights.

Therefore, keeping the importance of mobile industry in mind, we have
chosen a mobile company as our focus of study i.e. Mobilink.

A multinational, Mobilink was incorporated in 1990 in Pakistan as a
private limited company and subsequently commenced operations in
1994. Since then, it has been expanding enormously and has successfully
captured a major market share in Pakistan despite of the tight

We would be particularly focusing on the organizational compensation
and reward management.

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Reward Management

                        MISSION STATEMENT

“To be the unmatchable mobile system of communications in Pakistan
this provides the best value to its customers, employees, business partners
and shareholders.”

                         MOBILINK'S VISION

“To be the leading telecommunication services provider in Pakistan by
offering innovative communication solutions of our customers while
exceeding shareholder value and employee expectations”

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                        MOBILINK'S VALUES

Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust
and confidence in us. In return, we strive to anticipate their needs and
deliver service, quality and value beyond their expectations.

Business Excellence:

We strive for excellence in all that we do. We aspire to the highest
standards and raise the bar for ourselves everyday. This commitment to
delivering world-class quality translates into unmatched service and
value for our customers and all stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in
an open and honest environment, and by honoring our commitments. We
take personal responsibility for our actions, and treat everyone fairly,
and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our
employees and all stakeholders. We believe in teamwork, empowerment
and honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards
our country and the environment we operate in. We contribute to worthy
causes and are dedicated to the development and progress of the society.

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                  Over all           (Total 4500)

                  Top Managers       75

                  Middle Managers    750

                  Line Managers      3675


              Director              01

              Vise President        04

              Middle Managers       16

              Line Managers         26

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                        HRM DEPARTMENT

HR Mission Statement

“To lead the organization in enhancing its human capital and creating a
winning environment where everyone enjoys contributing to the best of
one’s ability.”

Mobilink will achieve this by:

    Inspiring and motivating its people.
    Developing its people to strive for higher standards.
    Driving an open minded and enterprising corporate culture where
     people through leadership at all levels dare to dream, dare to try,
     dare to fail and dare to succeed.
    Attracting and recruiting the best talent

Mobilink has a very defined and well structured department and its
various policies of keeping each employee productive part of the
organization are intoned with the corporate world’s requirement.

Employees in the company are largely committed to their organization
and have shown progress in the company. Employees are satisfied with
the HR department of Mobilink GSM Company.

Humans are the basic tool for having competitive edge in the market for
most of the organizations and Mobilink is one of these. Mobilink has one
of the best HR systems in Pakistan that gives it an edge over its

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                    HR DEPARTMENT SECTIONS

HR department of Mobilink has three sections.

Employee services

      Payroll information
      Leave and medical record
      Final settlements and provident fund
      Policies and procedures
      Employees record and recreation

OD and Effectiveness

      Training plan
      Talent management
      Performance management
      Employees retention
      Orientation employee communication

Staffing and compensation

      Staffing plan and HR budgeting
      Management trainee and internship program
      Interviewing and selection
      Headhunters
      Compensation, benefits and incentive

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                        REWARDS SYSTEM

Policies on Reward system at Mobilink:

MOBILINK considers its employees not just as a cost but also as a
resource in which the company has invested from which it expects
valuable returns. Pay policies and programs are one of the most
important human resource tools for encouraging desired employee
behaviors. The advantage of paying above the market average is the
ability to attract and retain the top talent available, which can translate
into highly effective and productive work force.
The incentive schemes and incentive objective have been clearly
communicated to all individuals and weekly progress report is also
communicated to all concerned.

There is a list of policies regarding the reward system at Mobilink. It
offers both kinds of rewards: Intrinsic and Extrinsic. Following are the
main reward related policies:



The purpose of this policy is to have salaries subject for review in
January of each calendar year in the light of merit and inflation.
An employee, who is employed on a job with title and specifications, will
receive compensation that is relevant to field experience matching with
approved salary structure of his / her position.

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Policy Guidelines:

The Company will pay salaries of the employees and all other amounts
due to them during office hours and on the job site as follows:

All New Employees have to open bank accounts in specified banks
prescribed by the Company so that their salary will be credited at the end
of each month.

Upon termination of service (end of service), the employee will receive
his / her salary within 15 working days up to the time of date of his / her
last working day.

Upon resignation, the employee will be paid his / her dues during a
maximum period of 15 working days from the date he / she left the job.

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Salary Objective:

The salary administration program is designed to meet the following

1. Attract & retain the services of competent qualified employees.

2. Provide fair and equitable compensation to each employee and to
ensure that the value of each job relative to all other jobs within the
Company is established and maintained on a fair and equitable basis.

3. Provide annual performance appraisal for employees to improve their
job performance and to encourage them to aspire for promotions to jobs
with greater responsibilities i.e. fairly compensate employees based on
individual accomplishments and annual performance appraisals.

4. Ensure that salaries are competitive and in line with salary levels that
prevail in the industry.

5. Instill employee confidence in the Company’s compensation policies
and practices.

Salary Outline:

The “Basics” of the salary administration program can be summarized in
the following manner:

    The VP Human Resources & Administration and the concerned
   Department Head will analyze each job classification.

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    The HR Department determines an appropriate salary range in
     relation to similar jobs at other well respected companies (salary

    The HR Department will analyze each job and assign a job code,
     hire rate, minimum, mid and maximum point rate. (Salary

    The HR Department will prepare the salary structure to be
     reviewed and approved by the Director & VP HR.

Salary Scale:

Each job is assigned a minimum salary, established according to the
salary survey results, which specifies the minimum salary that may be
paid to incumbents in each job.

Minimum through maximum scales is built on a system of mathematical
calculations to allow for overlapping between levels as a result of salary,
merit or promotional increase.

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To ensure that each employee is given the starting salary of the title level
in which his / her position and experience fall. Also to ensure that
consideration is given to past experience and qualifications when setting
starting salaries

Factors to be put into consideration for setting salaries within the range
determined by the departmental Head & the HR department

The starting salary offered to new candidates by Mobilink will be
dependent on two factors:

    The particular job level for which the job offer is being made
    The candidate’s education, experience, qualifications as compared
     to the minimum qualifications required by the job specification
     and prevailing industry rates.

Salary Administration Procedures:

Human Resource Department:

Prepare all documentations and their summary affecting salaries, and
forward payroll section for processing that includes:

      Recruits, transferees
      Promotion and increments
      Allowances, bonuses and incentives
      Discipline
      Review the all documents affecting salaries.
      Entry of all salaries based on Salary, allowances, deductions and

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Besides there are other intrinsic and extrinsic awards that leads towards
one objective only and that is: To compensate employee sufficiently so
that he may be motivated and constitutes an integral part of Human
resource of organization.


Mobilink has a separate department for compensation. That department
deals in staffing and compensation planning. First of all this department
has all the information regarding who is being employed and how it is
performing. What so ever promises are made to the employees, they know
that. So it’s easy for them to design compensation plans because they
know every employee which is being hired.

Compensation and benefit plans are particularly based on performance.
If performance is up to the standards of Mobilink and the employee has
good conducts he is rewarded. After performance evaluation, results are
rechecked and matched with the standards. Based on that, proper
compensation plans are designed.


The employee may receive 1 to 3 month bonus subject to evaluation of
accomplished objectives.
In Mobilink the reward system is based on the individual performance
and individual employee performance is judged for the reward. The
manager of respective departments recommends a candidate from his
section for the reward purpose to HR.

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Intrinsic and Extrinsic rewards include:

      Smart/Quality work
      Exceptional performance in a project
      Targets achievements
      Special assignments
      Medical care
      Life insurance
      Vacations
      Relocation
      Credit advance policy provident policy/advance against provident
       fund and a capping of gratuity
      Recreation
      Club Policy Travel
      Education assistance policy
      Mobile phone
      Business mobile phone policy
      Official Blackberry Policy
      Life insurance
      Medical entitlement

Other intrinsic and extrinsic rewards include:

      Life insurance
      Vacations
      Relocation
      Credit advance policy provident policy/advance against provident
       fund and
      gratuity
      EOI
      Recreation
      Club Policy Travel

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      Education assistance policy
      Mobile phone
      Business mobile phone policy
      Official Blackberry Policy


Policies regarding the reward systems are practiced quite strictly at
mobilink. Employees are paid when they are supposed to pay. Other
rewards are also fast but they are mostly tenure based rather than
performance based. In policies it is mentioned that the rewards are
totally performance based.

However, this policy is not that much followed strictly. Rewards are
mostly determined by the organizational membership and seniority rather
then by performance. Promotion is given on the basis of performance, as
well as tenure.


Promotions are also reward management technique to motivate
employees. In MOBILINK promotions are based on the merit and
seniority (experience) basis. The one who performs well consistently over
time gets reward in the form of promotion.

Promotion Policies

The new company structure is in five layers, comprising associates,
specialists, managers, directors and chief officers------in that order
starting from the bottom and working towards the top rung of the ladder.

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Until approved otherwise, it would be mandatory for the employees to
spend the following maximum period at each level before a promotion to
the next level depending upon availability of a slot:

Associate 3-4 years
Specialist 3-4 years
Manager 2-3 years
Director According to the president decision

Chiefs According to the president decision

However, employees who may not get a chance of promotion due to the
non availability of an existing slot will be compensated by being “moved
over” within the new salary range specified by the company.


Mobilink faces much competition in the telecom industry so now they are
focusing on career Management of their employees in which they enable
the employees to better understand and develop their career skills and
interests and to use these skills and interests most effectively both within
the company and after they leave the firm. Career planning is the
deliberate process through which someone becomes aware of personal
skills, interests knowledge, motivation, and other characteristics;
acquires information about other opportunities and choices; identifies
career related goals and establishes action plans to attain specific goals.

Career development is the lifelong series of activities (such as
workshops) that contributes to a person career exploration,
establishment, and success ad fulfillment.

Mobilink gives promotion to their employees on the performance basis.

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The Mobilink HR department develops the employee’s career
development plans in which the HR department predicts the next logical
step for their employees within five years.

Importance of Career planning in today’s competitive world is as
important as any other HR function. Retaining your valuable Human
resource today is one of the biggest challenges that organizations are
facing. So, HR needs to come up with new strategies. Career planning
and development is one of the basic tool and strategy organizations are
using for retaining their employees. This function actually makes
employees feel that they are important to the organization and Mobilink
wants them to be at the top in their careers.

However, at Mobilink this function is not fully performed or we should
say this function is not performed satisfactorily. There are some policies
on these but those are not recognized that well. One point of policy is
found along with the compensation other with the recruitment. There
should have been separate head for these policies.

As far as the practices are concerned, all the employees were reluctant to
talk about this during our interview. However, what we analyzed is that
career development is practiced but not that openly. Specially, in case if
some employee is considering of joining the competitor’s firm. If such is a
case then organization has discipline policies for that even.

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There is no need for such measures at Mobilink as maximum jobs do not
expose you to the health hazards and are not such that require safety
measures. However, there is a tendency of being safe in every human and
that shows when you visit some Mobilink officer to meet someone of a
high designation level. You need to fulfill various safety measures.

Health & Safety Policies

The safety of employees is everyone’s responsibility. Accidents,
precaution and efficient work go hand in hand. All levels of employees
have a primary responsibility for the safety and well being of all of us.
Therefore, interest in practicing safety prevention must be encouraged

a) Setting good examples.
b) Acting upon safety records.
c) Reviewing safety programs.
d) Holding personal interviews or group conferences.
e) Starting activities that will stimulate and maintain employee’s

No phase of operation of administration is of greater importance than
accident prevention. It is the policy of the Company to provide and
maintain safe and healthy working conditions and to follow operating
practices that safeguard all employees and result in safe working
conditions and efficient operations.

Proper First Aid Kit will be available at all Mobilink Offices including
remote locations.

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Reward Management

There is no need for such measures at Mobilink as maximum jobs do not
expose you to the health hazards and are not such that require safety
measures. However, there is a tendency of being safe in every human and
that shows when you visit some Mobilink officer to meet someone of a
high designation level. You need to fulfill various safety measures.

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                         CRITICAL REVIEW

Reward system at Mobilink is quite complicate. The reason for this is that
there are many intrinsic and extrinsic, direct and indirect, compensating
and non-compensating rewards. There is even a department that looks
after the motivational aspect of the employees. How motivation level of
employees can be kept to a level so that they can be more productive.
PMO (Project management office) introduces many club memberships,
game shows, lunch arrangement and many more for employee to be
motivated. Similarly, there are special achievement awards at each
individual level. Then there are even team awards, department awards
and division awards.
One thing to mention is criteria for rewards. As mentioned earlier in
policies, rewards are performance based. But this is true only in case of
achievement awards, group awards etc. If we observe basic pays and
increments then those are not performance based. Those are more of
tenure based. Mobilink does say that all rewards are performance based.
However, it is not the case in practice.

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Well the answer is simple. Policies are going pretty well. Numerically, I
can say more than 90%. How? Well because these are being practices in
the same manner as was expected during the policy formulation time.
Moreover, see the results. Mobilink is considered to have the best HR in
Pakistan and they have retained this edge. So, it’s so obvious that all
overall policies are good and they are also being followed exactly the
same way as required to achieve organizational goals.

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To conclude Mobilink has a strong HR system. That is the reason we
didn’t found much discrepancies in what management says, what policies
state and what employees say. 90 % of the times they were same. There
are some minor discrepancies but they are adjustable with little effort.

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Reward Management


Mobilink has a strong HR system. That is the reason we didn’t found
much discrepancies in what management says, what policies state and
what employees say. 90 % of the times they were same. However, there
were some discrepancies that need attention and their adjustment can
make this HR system best in Pakistan.

Following are some of the recommendations based on those

1. Human resource department is not fully authorized to take all the
decisions. Though HR department claims to have the overall management
of the company but that actually is not the case. There are many HR
decisions that are taken by the other department. So, there should be a
clear delegation of authority regarding decision making for HR

2. One thing we observed during our project was that employees were not
aware of the in depth policies. The main reason that we have understood
for this is their lack of knowledge about policies formulation. Employees
are not encouraged to give suggestions in policy formulation. So, our
suggestion is that employees should be consulted while policy
formulation stage.

3. Benefits and rewards are too complicated for anyone to understand.
Though there are many of these but most of employees even have not
information as to for what benefit they can go for. So, Mobilink should
simplify its reward system for its employees to understand well.

4. The decision making is delegated to managers with goals set for each
term promotion, hiring and firing is virtually in the immediate boss’s
hand. This practice can cause disharmony among employees for power.
Team based structure (like the one at PMO) should be preferred in all

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Reward Management

5. Mobilink pursues Zero-tolerance policy for disciplinary actions. This is
good but not in all cases. Mobilink should look towards its discipline
polices and try to be a bit more lenient.

6. Mobilink HR lacks in terms of career planning and development. This
important function of HR does not have recognition in Policies’
statement. Mobilink should have a look at this.

7. Mobilink uses only policy specified sources for recruitment which are
only 5. In this way it can loose some potential applicants that can be
asset to organizations, just because they were not well communicated.
So, Mobilink should increase its recruitment sources. During an HR
specialist interview, we posed the same question and the answer was
“that’s what policy says; on ground level we do use as many sources as
possible”. If this is the case then our recommendation is that Mobilink
should adjust its policy accordingly.

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