Abstract

This case deals with basic Human Resource issues in the company, like issue of
recruitment and selection, early retirements and performance appraisal inadequacy.
The case revolves around the issue of an inappropriate recruitment and selection of
employees and early retirement issues. Moreover unjust and opaque performance
appraisal system is also the theme behind writing this case study. This ultimately
affects the corporate culture, employee commitment and flow of innovative ideas in
organization.

Subject area of the case

Corporate Culture and Employee Commitment

Key words
Employee recruitment and selection, Corporate culture, Annual Confidential Report,
Employee commitment.

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Zahid Iqbal was over filled with joy when he sat on the seat, after which he was for
one long year surreptitiously. At last his efforts were fertile because this become
possible after the transfer of the former accounts officer Taimoor Shahid to the other
center.

The whole transfer case was a plot because the General Manager Mrs. Bushra Riaz
was supporting Zahid and striving hard to make him take over his seat. She in return
was proceeding with the aegis of the Managing Director, Tauqeer Razzaq.

Taimoor was on vacations when he received the call disclosing the decision of his
transfer and was mildly alarmed, as he had anticipated the action in advance. There
and then he thought how would this corporate politics and hypocrisy would come to
an end.

COMPANY HISTORY

TV3 is a public limited company. The government of Pakistan controls it. Government
holds all its shares. The decision to establish a general-purpose television service
with the participation of private capital and under the general supervision of the
Government of Pakistan (GOP) was taken in October 1963. Subsequently the GOP
signed an agreement with Nippon Electronic Company of Japan, allowing it to operate
two pilot stations in Pakistan. On November 26 1964 the first pilot station went on air
from Lahore. On the completion of the experimental phase, a private limited
company, called Television Promoters Limited was set up in 1967, which was
converted into a public limited company in 1969.Television centers were established
in different cities.

TV3’s existing work comprises of five TV centers at Islamabad, Lahore, Peshawar,

Quetta and, Karachi and an educational TV center at Islamabad and 29 RE-
Broadcasting stations throughout the country, extends TV coverage to 87%
population and 36% area of country through TV3 and 56.5% population and 23.6%
area through TV3-2.

The Board of Directors is appointed by the Government of Pakistan to manage its

affairs. The Managing Director of the corporation, duly appointed by the Government
of Pakistan and approved by the Board of Directors (BOD) is the administrative and
executive head of corporation. It is competent authority to implement rules for the
corporation and its employees.

ROLE OF HRM IN TV3

There is no separate Human Resource Department in TV3. The Administration and
Personnel Division are presently performing the functions of HR management. The
Administration and Personnel Division takes care of HRM functions like recruitment,
training, promotion, placement, performance appraisals, establishment,
appointments, Salary administration and pay packages, transfers, staff facilities,
pension and old age benefits, group insurance, grievance matters, disciplinary
matters. Basically their duty is to select the employees, train them and to devise the
policy for training the existing employees. The training, which is given to the
employees, is for the better performance. Academies are created under human
management to give the training to people. One academy is to train the
photography, how to operate the cameras and how to focus the picture and scene.

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The role of HRM in TV3 is to link the performance of the individuals towards the
achieving goals and objectives of the Corporation through suitable remuneration,
rewards, incentives, and pay

packages to meet the challenge of retention of its experienced professionals who are
real assets and have market value in the field of broadcast management.

The present era of automation computerization and specialization demands creation

of a separate independent HR Department in TV3 to meet the emerging challenges of
the day. However, keeping in view the importance of HR Department, TV3 has
recently hired HR Trainees to meet the present growing needs and realization of a
separate HR Department. TV3 is keen on the following steps of the government
policies in which they are working to HR Departments in all the major organizations.

SITUATION BACKGROUND
TV3’s profits started declining since 2000. The reason behind this decline was the
entry of private channels as arc rivals, fierce and ever growing competition of the
industry and the low quality TV3 productions supplemented by purchases of
substandard privately made serials and programs.

A meeting was called of Board of Directors, Managing Director, General Managers

and selected officers from all departments of different centers all over Pakistan. This
meeting had the agenda to find the reason for declining position of TV3 in market
and ever losing customer base.

But during the meeting besides quality many other reasons came to lime light and
quality shortcoming was seen to be an offshoot of them
.
BASIC PROBLEM AREA

The basic problem was that the corporate culture of GMT was not up to the mark.
These cultural flaws were because of the over priority given to “hiring from within”
policy.

GMT is short of well-educated employees and when these employees without proper,
current and up-to-date information, if promoted to higher position cannot take over
and own the responsibilities. Similarly this practice inhibited hiring of new fresh
graduates. Thus TV3’s culture was depriving creativity.

Another problem that came to light was the early retirements of higher officials,
which had the positions of controllers, deputy controller or other. These employees
are offered higher than the market rate salaries, ranging from Rs. 70,000—90,000.
They took early retirement from the organization and joined TV3 as consultants,
which then were compensated in the range of Rs.100, 000-200,000.

Thirdly another problem area identified was the performance appraisal system known
as Annual confidential report, ACR. This was a highly confidential and biased form of
evaluating the employees. It did not evaluated employees on the basis of their
performance but rather on the basis of the relationships they had with their
immediate supervisors. Better the employee-supervisor relationship better the ACR.

Proposed solution

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In the meeting Taimoor Shahid along with the five officers from the department of
accounts and administration & personnel presented the idea of re-hiring the finance
director. Muti-ur-Rehman

Mirza who resigned in 1999 due to his personal clashes with managing director. His
exit was a great blow to the TV3.

Muti-ur-Rehman Mirza was a chartered accountant, CA and was the Director of

Finance in TV3 in 1989. He took TV3 to its height. According to the group of officers,
rejoining of Mirza will take TV3 to its heights again as they had previously worked
under his direction and had a very deep understanding with him.

Board of directors and majority of the officer’s consent is with the proposed idea. But
the G.M, Mrs.Bushra Riaz and M.D. Tauqeer Razzaq were worried and not favoring it.
Rather they are thinking of possible remedies to get out of this current scenario and
an alternative to this solution with greater weightage.