Compensation Structure Development

A Comparative Study of HBL Mobilink Bank Alfalah

By:

Qadeer Ahmad Maria Hafeez Muhammad Iftikhar Sehrish Irshad Sabahat Naheed

ACKNOWLEDGMENT
We thank Allah almighty for helping us in learning and understanding. We owe our utmost tribute to Him for His blessings and showers of knowledge which He bestowed upon us. And we express all of our gratitude to Prophet Muhammad (peace be upon him) who took us out of the webs of ignorance and showed us the light of truth and virtue. He is an unlimited source of knowledge and he is our beloved guide and leader forever after.

We owe special thanks to Mr. Ali Shan for giving use the opportunity to conduct this research and enhance our knowledge. Without his affectionate help, we couldnt do this job. Hes been so much supporting in search of the ideas and making it possible for us to shape them.

We are obliged to pay homage to all those persons who supported us in this study; including our parents, friends, colleagues, members of different organizations and other individuals who anonymously helped us.

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EXECUTIVE SUMMARY
This document is the comparative study of the compensation structures of three business organizations, HBL, Mobilink and Bank Alfalah. HBL and Bank Alfalah are financial institutions while Mobilink belongs to telecommunication sector. All three are private companies.

In this report, we have given all the sufficient required information of the above mentioned companies; their introduction, history, job opportunities, compensation policies and performance appraisal and management methods and approaches.

The purpose of this research is to find the compensation policies that prevail in private sector of business. It is important to know because compensation is the vital part of an organizations human resource system. If not properly structured, the whole organizational system may be in jeopardy. Employees give value to the organization and in return they need and demand value.

The comparison, which is given at the end of this document, shows significant difference in the above mentioned organization. HBL was once a nationalized bank, so its compensation policies are dominated by bureaucratic approaches. Mobilink is a telecom company, therefore its compensation is based on the ups and downs of market situation. Bank Alfalah is operated by multi national network, thus it gives more flexible and relatively better pay structure.

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Table of contents
Executive Summary .. Compensation .. Performance Appraisal . HBL .. Compensation of HBL . Performance Appraisal of HBL . Mobilink .. Compensation .. Performance Management . Bank Alfalah Compensation . Performance Management .. Comparison . Conclusion .. References .. 2 4 6 7 11 17 20 27 33 37 41 43 45 46 47

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Compensation
Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources. Compensation may be used to:

Recruit and retain qualified employees. Increase or maintain morale/satisfaction. Reward and encourage peak performance. Achieve internal and external equity. Reduce turnover and encourage company loyalty. Modify (through negotiations) practices of unions.

Recruitment and retention of qualified employees is a common goal shared by many employers. To some extent, the availability and cost of qualified applicants for open positions is determined by market factors beyond the control of the employer. While an employer may set compensation levels for new hires and advertize those salary ranges, it does so in the context of other employers seeking to hire from the same applicant pool. Morale and job satisfaction are affected by compensation. Often there is a balance (equity) that must be reached between the monetary value the employer is willing to pay and the sentiments of worth felt be the employee. In an attempt to save money, employers may opt to freeze salaries or salary levels at the expense of satisfaction and morale. Conversely, an employer wishing to reduce employee turnover may seek to increase salaries and salary levels. Compensation may also be used as a reward for exceptional job performance. Examples of such plans include: bonuses, commissions, stock, and profit sharing, gain sharing. Compensation will be perceived by employees as fair if based on systematic components. Various compensation systems have developed to determine the value of positions. These systems utilize many similar components including job descriptions, salary ranges/structures, and written procedures. The components of a compensation system include:

Job Descriptions A critical component of both compensation and selection systems, job descriptions define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs. Descriptions may be developed for jobs individually or for entire job families.

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Job Analysis The process of analyzing jobs from which job descriptions are developed. Job analysis techniques include the use of interviews, questionnaires, and observation. Job Evaluation A system for comparing jobs for the purpose of determining appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking, Classification, Factor Comparison, and Point Method. Pay Structures Useful for standardizing compensation practices. Most pay structures include several grades with each grade containing a minimum salary/wage and either step increments or grade range. Step increments are common with union positions where the pay for each job is pre-determined through collective bargaining. Salary Surveys Collections of salary and market data. May include average salaries, inflation indicators, cost of living indicators, salary budget averages. Companies may purchase results of surveys conducted by survey vendors or may conduct their own salary surveys. When purchasing the results of salary surveys conducted by other vendors, note that surveys may be conducted within a specific industry or across industries as well as within one geographical region or across different geographical regions. Know which industry or geographic location the salary results pertain to before comparing the results to your company. Policies and Regulations

Different types of compensation include:

Base Pay Commissions Overtime Pay Bonuses, Profit Sharing, Merit Pay Stock Options Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

Performance appraisal
Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development. Performance appraisals are regular reviews of employee performance within organizations Generally, the aims of a performance appraisal are to:

Give feedback on performance to employees. Identify employee training needs. Document criteria used to allocate organizational rewards. Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. 5|Page

Provide the opportunity for organizational diagnosis and development. Facilitate communication between employee and administration Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager, peers, subordinates and customers while also performing a self assessment. This is known as 360 appraisal forms good communication patterns The most popular methods that are being used as performance appraisal process are:

Management by objectives 360 degree appraisal Behavioral Observation Scale Behaviorally Anchored Rating Scale

Trait based systems, which rely on factors such as integrity and conscientiousness, are also commonly used by businesses. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are twofold: 1) Because trait based systems are by definition based on personality traits, they make it difficult for a manager to provide feedback that can cause positive change in employee performance. This is caused by the fact that personality dimensions are for the most part static, and while an employee can change a specific behavior they cannot change their personality. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone. 2) Trait based systems, because they are vague, are more easily influenced by office politics, causing them to be less reliable as a source of information on an employee's true performance. The vagueness of these instruments allows managers to fill them out based on who they want to/feel should get a raise, rather than basing scores on specific behaviors employees should/should not be engaging in. These systems are also more likely to leave a company open to discrimination claims because a manager can make biased decisions without having to back them up with specific behavioral information. In the PTF Report it was claimed that although annual Reports by ministries and departments are obligatory, they are hardly ever prepared and submitted to government, and where they, they are scanty and hardly confirms with any standards, either in terms of contents or format. The recommendation was that there should be target setting by ministries where concrete and measurable achievement can be inferred (PTF Report Section 10 Sub10.1).

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HBL
INTRODUCTION
HBL was the first commercial bank to be established in Pakistan in 1947. Over the years, HBL has grown its branch network and become the largest private sector bank with over 1,450 branches across the country and a customer base exceeding five million relationships. The Government of Pakistan privatized HBL in 2004 through which AKFED acquired 51% of the Bank's shareholding and management control. HBL is majority owned (51%) by the Aga Khan Fund for Economic Development, 42.5% of the shareholding is retained by the Government of Pakistan (GOP), whilst 7.5% is owned by the general public i.e. over 170,000 shareholders following the public listing that took place in July 2007. With a presence in 25 countries, subsidiaries in Hong Kong and the UK, affiliates in Nepal, Nigeria, Kenya and Kyrgyzstan and rep offices in Iran and China, HBL is also the largest domestic multinational. The Bank is expanding its presence in principal international markets including the UK, UAE, South and Central Asia, Africa and the Far East. Key areas of operations encompass product offerings and services in Retail and Consumer Banking. HBL has the largest Corporate Banking portfolio in the country with an active Investment Banking arm. SME and Agriculture lending programs and banking services are offered in urban and rural centers.

Rating
HBL is currently rated AA (Long term) and A-1+ (Short term) and has a balance sheet size of USD 10.2 billion. It is the first Pakistani bank to raise Tier II Capital from external sources.

HISTORY
HBL established operations in Pakistan in 1947 and moved its head office to Karachi. Our first international branch was established in Colombo, Sri Lanka in 1951 and Habib Bank Plaza was built in 1972 to commemorate the banks 25th Anniversary. With a domestic market share of over 40%, HBL was nationalized in 1974 and it continued to dominate the commercial banking sector with a major market share in inward foreign remittances (55%) and loans to small industries, traders and farmers. International operations were expanded to include the USA, Singapore, Oman, Belgium, Seychelles and Maldives and the Netherlands.

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On December 29, 2003 Pakistan's Privatization Commission announced that the Government of Pakistan had formally granted the Aga Khan Fund for Economic Development (AKFED) rights to 51% of the shareholding in HBL, against an investment of PKR 22.409 billion (USD 389 million). On February 26, 2004, management control was handed over to AKFED. The Board of Directors was reconstituted to have four AKFED nominees, including the Chairman and the President/CEO and three Government of Pakistan nominees

CULTURE
HBL has created a challenging environment that encourages creativity and commitment. In their pursuit of excellence, we are focused on attracting, developing and retaining the best talent in the marketplace. Their dynamic culture offers diverse growth opportunities across Pakistan and in 25 countries around the world. HBL fosters a work environment where employees can realize their potential whether locally or in the international arena. Thus, they enable their employees to achieve their professional goals while keeping in synch with the banks overall objectives.

Brand
Our brand identity is the outward expression of what we stand for as an organization. This is summarized in our vision, mission and is supported by our values.

Vision
Enabling people to advance with confidence and success

Mission
To make our customers prosper, our staff excel and create value for shareholders

Values
Our values are the fundamental principles that define our culture and arebrought to life in our attitudes and behaviour. It is our values that makeus unique and unmistakable. Our values are defined below: Excellence This is at the core of everything we do. The markets in which we operate are becoming increasingly competitive, giving our customers an abundance of choice. Only through being the very best - in terms of the service we offer, our products and premises - can we hope to be successful and grow. Integrity

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We are the leading bank in Pakistan and our success depends upon trust. Our customers - and society in general - expect us to possess and steadfastly adhere to high moral principles and professional standards. Customer Focus We understand fully the needs of our customers and adapt our products and services to meet these. We always strive to put the satisfaction of our customers first. Meritocracy We believe in giving opportunities and advantages to our employees on the basis of their ability. We believe in rewarding achievement and in providing first-class career opportunities for all. Progressiveness We believe in the advancement of society through the adoption of enlightened working practices, innovative new products and processes, and a spirit of enterprise.

ORGANIZATION SIZE
Total number of employees in HBL is 22,700.

HIERARCHY
Senior Executive Vice President Executive Vice President o Senior Vice President Vice President Assistant Vice President o Officers Grade 1 Grade 2 Grade 3 Junior Officer o Assistants or Clerks Security and Maintenance

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JOB OPPORTUNITIES
At HBL, they empower you to explore your highest potential, work in areas you are passionate about, build specialist knowledge, hone your expertise and more.

ENTRY LEVEL PROGRAMS

Our Entry-Level Programs are structured to ensure that you will quickly assume responsibility for concrete tasks and important projects. Rotational assignments across different business units provide a comprehensive and valuable experience in a relatively short amount of time. Our Entry-Level Programs are defined below. Please click on the relevant link to learn more. Management Trainees Our Management Trainee (MT) program looks for highly motivated individuals who exhibit the potential to excel as future leaders. The program is geared towards providing challenging work assignments complemented by a learning component for select individuals from reputable universities. At HBL, the MT program offers extensive interactive classroom training, on the job rotations and personal mentoring from senior management to provide a comprehensive learning experience. The objective of the program is to realize potential and translate the experience into a successful banking career.

Management Associates Our Management Associate Program is a training and rotational program focused on dealing with branch banking requirements. It provides accelerated development opportunities across our branch network of Retail, Corporate & Commercial banking. During this program, candidates are assigned with challenging business scenarios to enhance their critical and analytic skills. Another crucial element of the program ensures that managerial skills are honed and developed. This provides associates with the expertise required to handle supervisory and administrative tasks that will result in the development of successful business managers

Cash Officers HBLs Cash Officers Program catapults successful candidates to the front lines of the bank. Candidates in this program are the banks ambassadors and must have exemplary skills in dealing with clients. The program involves an extensive one-month training period based on branch banking operations before placement in the branches. Energetic and focused graduates from HEC recognized institutions with good communication and interpersonal skills qualify for our Cash Officers Program. Before

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being placed at our branches, these individuals must exhibit a proven ability to add value and act as agents of change. Internships Our Internship Program offers promising students with the exciting opportunity to apply their classroom learning experience to real life corporate assignments. Through the program, internees can support their career goals by using the internship as a launching pad for creating contacts with professionals in the field and identifying their own competencies to build a successful career with us.

EXPERIENCED PROFESSIONALS
We recruit experienced professionals in all areas of the bank and encourage the creation and pursuit of innovative ideas. Our dynamic work environment offers diverse opportunities to stimulate ongoing employee needs and supports career enhancement opportunities. We encourage you to explore this section to find out about current job openings and how to submit your resume.

COMPENSATION & BENEFITS

At HBL growth is not a function of time but rather of performance. As your performance improves, the role that you play within the organization will accelerate to reflect your input. Our focus is on attracting, developing and retaining the best in the business by market driven compensation and benefits packages. Our compensation and benefits combines the need to maintain a high performance culture along with competitiveness. Annual benchmarking exercises are conducted to stay abreast with standards. offering strategy market industry

PERFORMANCE MANAGEMENT
HBLs performance management and reward systems ensure that goals are met in an effective and efficient manner. We define a clear path for you to contribute to the organizations overall goals, peppered with regular reviews and feedback to help you gauge your progress.

HBLs compensation and performance appraisal details are given below.

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Mobilink
INTRODUCTION
Mobilink, a subsidiary of the Orascom Telecom Holding, is Pakistans leading cellular and Blackberry service provider. With more than 31.6 million subscribers, Mobilink maintains market leadership through cutting-edge, integrated technology, the strongest brands and the largest portfolio of value added services in the industry, a broadband carrier division providing next generation internet technology as well as the countrys largest voice and data network with over 8,000 cell sites. Housing Pakistans largest distribution and contact centre networks and an unparalleled 6,500 kilometers fiber optic backbone, Mobilink has already invested over US $3.3 billion in the country to date and provides uninterrupted countrywide connectivity, unmatched customer services and international roaming in over 140 countries. The company is also the official cellular partner of the Pakistan Cricket Board. As a responsible corporate citizen, Mobilink also offers a range of socially inclusive products and services dedicated to enhance access to information. Through Mobilink Foundation, the company supports education, health and environmental initiatives and promotes sustainable business practices. Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporate and multinationals. To achieve this objective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. In addition to providing advanced voice communication services that makes the lives of millions that much easy, we also offer a host of value-added-services to our prized customers. At the same time, Mobilink places high importance to its coverage, which is why we cover you in 10,000+ cities and towns nationwide as well as over 140 countries on international roaming service. In other words, we speak your language, everywhere.

HISTORY
Orascom Telecom Holding S.A.E. ("Orascom Telecom") or ("OTH") was established in 1998 and has grown to become a major player in the telecommunication market in the world. OTH is considered among the largest and most diversified network operator in the Middle East, Africa and Pakistan. Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, was awarded a license in July, 1992 and started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in, Pakistan - a base of over 24 million and growing.

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Mobilink provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than 5,000 cities, towns, villages, and countless remote destinations, including International Roaming in 110 countries through 300 partner operators. There are about 5000 employees currently working in Mobilink of which 4500 are working on permanent basis and 500 on temporary basis, with average of more than 800 employees hired every month. Among them approximately 5% are managers and operatives are 40%, rest are either contractual or not directly related to core business. In April 2001, when the OTH (Orascom Telecom Holding) took over management control of the company, the market share was only 40% but as of March, 2006; Mobilink served over 14 million subscribers, representing a market share of approximately 56.2% of total mobile subscribers in Pakistan. However, during the past two years the market share of Mobilink has gone down to 41% (As of March, 2007). The head office of Mobilink is located at KULSUM Plaza, blue area, Islamabad. Its branch offices are located in Lahore, Karachi, Faisalabad, Rahim Yar Khan, Sukkur, Peshwar, Quetta, Swat, and Kohat. Moblink has three main contact centers in three regions of Pakistan. As for the customers centers there are about 2000-2500 customers service centers all over Pakistan.

Principal area in which Mobilink Telecommunication is working is that it provides its customers, a wide range of postpaid (Indigo) and prepaid (Jazz) solutions. Keeping in the mind their customer convenience they have also bundled mobile handsets, sold either independently or bundled in Set so Go Get Pack. Competition faced by the company is from al the operators in telecom that includes all the face SGM (Global System of mobile) operators, CDMA operators and LDI operators and land line operators. All these telecom companies Human Resource Departments are in constant need of new employees. So there is stiff competition in the telecom market for Mobilink. Comparison with competitors in the market is shown as in the table.Mobilink is using high IT based technology for operations. Mobilink uses Motorolas infrastructure mostly at radio based stations, but now it has been exceedingly using Alchatel equipment too. Switching equipment is of Siemens and Alchatel, billing system from Telesens KSCL and Ericsson, Intelligent network from Siemens, Microwave equipement DMC. The GSM (Global System of Mobile communication) band that is used by Mobilink is in 900/1800 MHz.

CULTURE
Vision
"To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations".

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Values
Mobilinks corporate values serve as the foundation for its culture, behavioral norms, and decision making. These values have always been at the heart of our business principles and success. Each of our values guides the way we work as an organization and ensures that we not only meet the needs of our employees and stakeholders today, but work towards sustaining and enhancing human and financial capital for the future. These values sum up the culture at Mobilink, and aim to ensure a workplace that necessitates open and respectful communication and exceptional quality of service to internal and external stakeholders. 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. Respect for People Our relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honor. Trust and 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. 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. 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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JOB OPPORTUNITIES
There are various career choices for you at Mobilink. The perfect synergy of each of our divisions fuels our success and fosters commitment and dedication. To find out where you fit best, take a look at the overview of our key business functions.

MOBILINK DIVISIONAL FUNCTIONS

The organization is divided into divisions, which are further divided into departments and sub departments. The divisions, their sub-functions and their roles in the organization are mentioned below:

Technical Installs, maintains and operates the GSM Cellular Network. It is also involved in planning and rolling out network expansion as per business targets while working closely with other departments, especially commercial and IT, to launch new services and cities. It is the second largest division in the organization. Engineering Access Network (EAN) Operations Access Network (OAN) Operations Core Network (OCN) Engineering Core Network (ECN) Production and Deployment Fiber Optics Operations Technical Budget PMO and Operations Technical Special Projects Network Operations Center Technical Logistics Quality of Service

Marketing Anticipates, and satisfies the customers communication needs. This includes consumer behavior research and translating this research into services and pricing plans. The Marketing team helps identify new business opportunities and develops plans to exploit these profitably. It also designs and implements brand strategies and communication plans. Marketing Strategy & Pricing Brand Management Public Relations Value Added Services, LDI and International Roaming Post Paid Solutions

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Sales & Distribution Employs direct and indirect channels to augment sales. They are also responsible for extending post sales support to ensure customer convenience. Indirect Sales Enterprise Solutions Distribution Sales Operations

Customer Care Provides services to customers pre and post purchase to ensure that customers expectations are met. It is the largest division in the company. Customer Operations Support Centers Contact Centers Quality Assurance, Standardization and Training Business Planning and Customer Retention Credit & Collection

Finance Prepares and monitors financial plans and budgets. Arranges timely funding to meet business requirements and for maintaining accounting records. Sourcing and qualification of items and vendors and handling custom clearance of imported goods also falls into the responsibility areas of this division. Reviews risk management procedures and compliance with existing policies and procedures. Focuses on the strategic objective of coordinating, streamlining and institutionalizing the planning, sourcing, warehousing and distribution of SIMs and Scratch Cards, manages operations and procurement and contracts. Corporate accounting Finance Logistics Treasury Business Support & Revenue assurance Planning, budgeting and reporting Procurement and contracts Internal Audit

Information Technology Enables secure and efficient information sharing to meet the business needs. It facilitates conversion, storage, protection, processing, transmission and retrieval of information to and from various channels.

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Planning, Implementation and Technologies Management IT Strategy, Innovation and Service Management Business Intelligence and Billing Enterprise System Integration & Support IT Governance & Information Security IT Operations Technology Solution Planning

Human Resources and Administration The human resources function at Mobilink comprises four main areas. The staffing and compensation function is responsible for meeting the companys recruitment requirements along with developing, implementing and maintaining companywide compensation and incentive plans. The function is also the custodian of the HR Employer Brand. Organizational Development is primarily responsible for initiatives tied to employee development and organizational capability enhancement. HR Operations looks after employee services and employee relations. It also maintains and updates employee records. The employee excellence function aims to enhance HR performance through value creating activities focusing on wellness and diversity management initiatives. Overseeing nationwide facilities management, the Administration department ensures that employees are provided with a comfortable working environment that is conducive to high performance. Security department Aims to meet the security needs of the entire organization by covering people, property and assets nationwide. HR Staffing and Compensation Organizational Development HR Operations

Administration Office Maintenance, Travel & Accommodation arrangements Stationery requirements Courier, Janitorial services Vehicle maintenance, Build outs Event management Cafeteria arrangements PMO

Corporate Affairs Corporate Affairs constitutes Legal affairs, Government relations and Interconnect. Legal affairs provide legal and corporate support and advice at all levels to ensure effective decision making and strategizing. The department also engages in policy-making, overseeing contracts and transactions, ensuring compliance with applicable rules, regulations and laws. Regulatory matters and assistance and support to the holding company and subsidiaries also 25 | P a g e

fall within Legal Affairs purview. The Government Relations department liaises with Government authorities and the Pakistan Telecommunication Authority on regulatory aspects like government rules, policies and SOPs. It interacts with other telecom operators and cellular mobile operators on matters of common interest, and also plays an advisory role for all Mobilink departments in guiding them through procedures involving government agencies. Interconnect department makes arrangements for providing connectivity between Mobilink and other operators in coordination with engineering and billing departments. Government Relations Inter Connect Legal Affairs

Office of Strategy Management (OSM) Formulates business strategy and works with other divisions for alignment and implementation. The department also identifies and recommends new business opportunities for revenue generation and strengthening strategic advantage Business Intelligence Program Management Special Projects Security

Mobilink Infinity (Broadband Business Unit) Mobilink, the pioneer of GSM Technology in Pakistan, brings Internet access combined with telephony services that are exponentially better than the average dial-up. Its Next Generation Broadband technology breaking the norms by allowing easy and affordable access to get connected where conventional telephone networks fail; always-on connectivity to the Internet while simultaneously using the phone; and high-quality Technical and Customer Services that deliver upon expectations. It is your seamless connection to everything and everyone.

Business Analysis & Planning This division is responsible for company-wide business parameters and their implications on the business and company plans.

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ORGANIZATION SIZE
Total Strength of Employees: Top Managers Middle Managers Line Managers Human Resource Department: Director Vise President Middle Managers Line Managers 4500 75 750 3675 47 01 04 16 26

COMPENSATION & BENEFITS

Mobilink has shown very traditional approach towards the compensation management. The leading organizations always try best to have a best-fit strategic approach towards the Human Resource Management within organization but unfortunately the leading organization like Mobilink is using best practice approach in compensating approach. During this research we also come to conclude that these best practices are not fully implemented in whole but they are either partially implemented or just remained in name. The incentive plans being implemented in Mobilink are:

INDIVIDUAL INCENTIVES
Individual incentives plans are those that are concerned to compensate the individual efforts that result in organizational outcomes. In Mobilink the individual incentives plans dont exist in any form. Although this kind of incentives plan is only for the sales people in the form of commission on sale. But we disagree with them because it is individual incentive plan because this is pay at risk and where risk exists its not incentive. 27 | P a g e

One other form of incentives plan is that they are paying overtime to the lower management on the hours basis they spent besides the duty hours. Further discussion revealed that they used to give Departmental objectives that further divided into level objectives and finally individual objectives, if the whole department objectives are met and the Company performance enhanced than they pay to all departments instead of paying right-to-right person. And if the company objectives are not achieved and individual objectives are achieved, than in this case they dont use to go for incentives to individual or group etc.

GROUP INCENTIVES
Mobilink prefers team and group working. People are recognized from their respective group or team with in organization. Like sales people, marketing team, finance analysis team, finance allocation team, HR peoples, etc. The group incentives are based on the objectives being assigned to each team or group. If they successfully achieve within the given constraints and also these achievement lead to enhance company performance then they will be entailed for group incentives in following manner: Per unit incentives Monthly incentives Continuous incentives Remote areas incentive

The per-unit incentives are given mostly to the sales and production teams, the units they produced and similarly to those the unit sold per/day or week. These per unit incentives are not paid to individual but to the whole team. The monthly incentives are for marketing team, Human Resource Management, and Finance for achieving their excellent performance. The monthly incentives are mostly in the form of a bonus salary, house rent or some other cash-based rewards, but mostly it is in the form of a bonus salary for every member within the team. The continuous Incentives are for those teams whose maintained and improved performance with increasing rate for three or more than three months. These are in the form of cash bonus, salaries and other benefits according to the impact of performance on overall organizational achievements. The remote areas where the basic facilities are limited, has little security etc like mountains, deserts and or like FATA. The group incentives pattern is widely spread in Mobilink and they say that we are concentrating on group incentives because to ensure internally and externally that we are unite and the culture is collectivism not individualism.

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ORGANIZATIONAL INCENTIVES
The organizational performance is measured in the form or increase in Annual sales, numbers of subscribers, and increase in market share. The individual objectives are sequentially tied with the company performance. These incentives are following Upper Management: Three gross salaries in a year Lower management: Two gross salaries

Special Incentives/Intrinsic Rewards

According to the Mobilink Compensation Officer, There are very few and rare special incentives because the group incentives and organization incentives plan are designed in such a way that each and every individual is performing special. But few types of special incentives plan are: Recognition: If some one extra ordinary performance in sales or production department: the various types of recognition are Man of the year which contain certificate and some other prizes. Excellence certificate Placing the name and Picture in organization top performers gallery Appreciation: the individual is appreciated personally by the General Manager either meets personally or through call or through email etc. Special Cash Amount is given (mostly to HR personnel) for attracting and hiring top performers of Competitors.

JOB EVALUATION
Mobilink uses two methods for evaluating job in order to know the worth of the job. 1. Point method is used to evaluate the middle level management. The importance is given more to critically know each and every job worth because The middle level actsas a bridge between upper level and lower level management. If this level is strong enough to get the stress of the upper management as well as to be enough competent to supervise and motivate the lower management to work effectively. The middle level jobs are mostly technical and coordination nature, thats why point method is best to know the level of competency required for each job. In this point method besides other compensating factors more and large portion of weightage is 29 | P a g e

given to the Technicality and Coordination; these two components or factors weight-age is about 70% in all-compensable factors.

2. Ranking Methods are used in the top level because these people have higher professional profile, what the market is paying, the Mobilink tries to pay them some higher than the market, therefore the point method seems very conflicting in designing the pay structure. And there is a risk if point method is used then result is decrease in the current pay, so he/she may leave. In the lower management the ranking method is used because these jobs are mostly entry level having the specific level of skill requirement, so all jobs at entry level are ranked equally.

PAY PACKAGES AND EMPLOYEE BENEFITS

The pay packages and benefits are as under: Lower management 1. Basic Pay (unknown/confidential) 2.Utilities (foods, Cell phone connection and monthly allowance) 3.Transport facilities (only for females) 4. Annual Increment 5.Subsidized rate (discount at company products)

Middle Management 1. Basic Pay (unknown/confidential) 2. House rent 3.Utilities (foods, Cell phone connection and monthly allowance) 4. Transport facilities 5. Annual Increment 6. Medical allowance

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9.Learning and growth opportunities 10. Training & Development 11. Promotions

Upper Management (Managerial) 1. Basic Pay 2. Annual Increment 3. Annual Bonus 4. Medical allowance 5.Car (limited Fuel & Maintenance) 6.Utilities (foods, Cell phone connection and monthly allowance) 7.Cell Phone (Black berry) 8. Laptop 9.Learning and growth opportunities 10. Training & Development 11. Life insurance 12. Promotions 13. Subsidized rate (discount at company products)

Upper Management (Directors& VP) 1. Basic Pay 2. Annual Increment 3. Annual Bonus 4.Car (unlimited Fuel & maintenance) 5. House 6.Cell phone (Blackberry +postpaid connection) 7. Laptop 8.Training & Development

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9. Promotion 10. Medical Allowanc 11. Life Insurance 12. International trips 13. Social clubs memberships

ANNUAL INCREMENTis subjected to the annual performance appraisal results. Therefore this increment varies from individual to individual working on same position in same department or other. Besides these package following facilities are provided 1.Effective working environment 2. Office facilities 3. Flexibility 4. Learning environment

PROMOTION POLICIES
The new company structure is in five layers Chief officers directors managers specialists associates 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: Chiefs: According to the president decision Director: According to the president decision Manager 2-3 years Specialist 3-4 years Associate 3-4 years

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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.

PERFORMANCE MANAGEMENT
At Mobilink, our belief is that "Our people are our greatest asset. We take great pride in acknowledging the contribution each one of us makes. We focus on People Development and for that we ensure: Staff Mobilink with world class Professionals and ensure that the right systems are in place to encourage them to develop to their full potential. Create a collaborative and mutually supportive work environment that encourages people to grow. Build a team of professionals who deliver expertise by participating in business decisions. Develop Performance Management and reward systems underlying our Business strategy. We aim at making Mobilink a great place to work Mobilink provides a formal review program to evaluate work performance and to promote communication and discussion of job performance w.r.t. past performance at Mobilink. Mobilink asses the employee on: Leadership. Communication skills. Team work and Co-operation. Problem solving & decision making. Initiative and drive. Flexibility. Customer focus

Performance appraisal: is done on an annual basis (from January 1st to

December 31st)

To give a chance to subordinates to evaluate their seniors a 360 degree

evaluation is conducted at the tome of the performance evaluation The immediate supervisor prepares an annual report in December of each year of each employee. Increments are also given at the end of the year, increments are percentage of salaries.
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 Promotions are given on good performance after completing two years in the

current grade. Bonuses are given but the employee must have to complete 6 months in the company service

POLICY GUIDELINES
The performance appraisal is done on an annual / basis (from January 1st to December 31st). Every employee should know what is expected from him / her through direct supervisors. He / She should participate in & agree with the goals & objectives set by himself / herself in accordance with the Companys business plans & objective goals. Everyone should have the opportunity to perform & develop according to the set objectives & agreed upon duties. He / she should also expect self-assessment and take actions to develop his / her competency level & increase his / her participation in the achievement of the Companys objectives. To ensure openness, consistency & objectivity, the agreed competency framework covering all aspects of the job should be used as the basis for performance planning appraisals. Accordingly, it should be well known & clear for both the Employee and the Manager covered. Department Heads & Managers involved in performance appraisals should be well trained & familiar with the applied performance appraisal system & the appraisal interviewing techniques. The performance evaluation program requires that an annual meeting be held with each employee; however, Coaching, Counselling and Guidance must be an on-going process for the desired improvement and development to be achieved. To give a chance to Subordinates to evaluate their seniors a 360 Degree Evaluation will be conducted at the time of the Performance Evaluation.

PERFORMANCE APPRAISAL FORMS

The performance appraisal forms are filled once in a year to get a clear picture of the employee performance.

PRACTICES AT MOBILINK FOR PERFORMANCE APPRAISAL SYSTEM

Mobilink conducts performance appraisal in order to evaluate their employees current performance or past performance relative to companys performance standards. Mobilink try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feed 34 | P a g e

back, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par. There are many performance appraisal methods. Mobilink uses the computerized performance appraisal method. In Mobilink the performance appraisal of employees is conducted in December. The Mobilink HR department has developed a performance appraisal sheet and has downloaded it on the intranet of Mobilink so that the supervisor performs the evaluation of the employees. When the supervisor completes the evaluation, he will send the performance appraisal sheet to the employee for the affirmation with the ideas of the supervisor if the employee does not agree with the supervisor he will not sign the PA sheet. When the last date of submission of PA sheet is passed then the HR department asks the supervisor and the employee about the problem and resolves the problem.

Performance Review
At MOBILINK a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.

APPRAISAL CATEGORIES
Appraisal category Definition of category % Of total numbers of employees which can be rated in this category 15% 10%

1.expert
2.very Good

Indicates exceptional performance Indicate performance that consistently meets the requirements of the position, very good indicates the individual is on track for advancements Indicated performance that requires improvement (i.e. meet requirements without initiative or advancement)

3. Good

8%

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4. Basic

Performance to be improved (hardly meets requirements)

5%

Sources of Performance Appraisal: At MOBILINK the primary sources of performance appraisal are the managers and secondary sources are employees themselves. Though the peers also give their opinion but it usually does not have any weightage unless a conflict arises between the manager and the employee.

Feedback:
Workers at MOBILINK are informed of their performance and given the opportunity to express their opinion over their own level of performance against each competence. This serves the following two main purposes: It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist that the reviewer is unaware of. By asking the worker what he sees to be his own strengths and development areas often help to reduce negative responses and makes planning training needs/inputs activities easier if the person is able to express for himself the areas in which he feels he can improve.

Online 360 degree approach of performance appraisal is adopted at Mobilink for evaluating employee performance. In the past only 180 Degree approach for performance appraisal was adopted but now 360 Degree is also in action. This is a very supportive strategy by the organization because if an employee is not happy with the evaluation by his supervisor then he has the authority to challenge.

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Bank Alfalah Limited

INTRODUCTION
Bank Alfalah Limited was incorporated on June 21st, 1992 as a public limited company under the Companies Ordinance 1984. Its banking operations commenced from November 1st,1997. The bank is engaged in commercial banking and related services as defined in the Banking companies ordinance, 1962. The Bank is currently operating through various branches in Pakistan, Bahrain, Bangladesh & Afghanistan, with the registered office at B.A.Building, I.I.Chundrigar Road Karachi. Since its inception, as the new identity of H.C.E.B after the privatization in 1997, the management of the bank has implemented strategies and policies to carve a distinct position for the bank in the market place. Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals set out by its board of management, the Bank has invested in revolutionary technology to have an extensive range of products and services. The portfolio concentrates on all aspects of conventional banking as well as the financial needs of corporate sector. Dynamic and high value product includes Car Financing, Home Financing, Rupee Travellers Cheques, Credits Cards, Debit Cards, On line Banking, ATM and consumer Durables. In addition to this, Islamic Banking Division is a recent initiative, which operates as separate branch. It offers Shariah Compliant products. This facilitates our commitment to a culture of innovation and seeks out synergies with clients and service providers to ensure uninterrupted services to its customers. We perceive the requirements of our customers and match them with quality products and service solutions. During the past five years, we have emerged as one of the foremost financial institution in the region endeavoring to meet the needs of tomorrow today.

CULTURE
Vision
To be the premier organizations operating locally and internationally that provided the complete range of financial services to all segments under one roof.

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Mission
To develop and deliver the most innovative products, manage customers experience, deliver quality service that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank.

MANAGEMENT

Chief Executive Officer Executive Incharge Strategic Planning & Global Marketing Executive Incharge Human Resources Division Executive Incharge Credit Division Executive Incharge Establishment & Administratration Executive Incharge Business Development Division S.A.M./ Car Finance/ Leasing Executive Incharge Audit & Inspection Division Executive Incharge Corporate Banking, SME Financing & Home Loans Executive Incharge New Products &Service Quality Division Executive Incharge International &Treasury Division Executive Incharge IT Division Executive Incharge System & Operation Division. Executive Incharge Credit Monitoring Division

Executive Incharge Legal Affairs Division.

Executive Incharge Finance Division

Executive Incharge Islamic Banking Division

Executive Incharge Cards Division

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ORGANIZATIONAL STRUCTURE
President (CEO) o Senior Executive Vice President Executive Vice President Senior Vice President o Vice President Assistant Vice President Officers Grade I Officers Grade II Officers Grade III o Clerical Staff Cashier Typist Clerks Assistants o Non-Clerical Staff Guards Messengers

DEPARTMENTS
Account Opening Department Human Resource Department Trade Finance Credits Accounts Department Administration / Personnel Special Asset Management (SAM) MIS Department Marketing Cash & Deposits Foreign Currency Accounts

JOB OPPORTUNITIES
Direct induction of fresh candidates Through direct induction of fresh candidates, Bank Alfalah is able to employ fresh postgraduate candidates for its organization and the process is as follows:

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Experienced professionals Based on requirements of experienced staff, Bank Alfalah also recruits talent from the marketplace. Bank Alfalah offers competitive salary / benefits to worthy professionals at all levels who wish to join hands with Bank Alfalah. The procedure for selecting such professionals is as follows:

Executive Recruitments: In Bank Alfalah, Executive recruitments are done by CEO.

Recruitment of MTOs (Management Training Officers): In Bank Alfalah, recruitment of MTOs is done on Yearly Basis

Recruitment of Internees: In Bank Alfalah, recruitment of Internees is on.. > Walk-ins > Letter of recommendation from college

ORGANIZATION SIZE
No. of Employees 2001-2008
8000 6000 4000 2000 0 2001 2002 2003 2004 2005 2006 2007 2008 959 1504 3352 2133 5218 6543 7371 7584

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COMPENSATION & BENEFITS

Pay plans Alfalah are establish on the basis of job ratings. All jobs are ranked from top to bottom, on the bases of compensable factor. Employee with higher rank gets highest pay and incentives.In Bank Alfalah, compensation plan for employees includes: Basic Salary Bonuses Medical Facilities Allowances

INCENTIVE PLANS:
In Bank Alfalah, incentive are provided to Managers and Executives Middle and Lower Level Employees

EMPLOYEE BENEFITS & SERVICES

The employee benefits & services provided by Bank Alfalah are Health & Life Insurance Paid Annual Vacations, Leaves, Holidays Health Insurance Of Parents Pension & Provident Fund Discount On Company Products Annual Bonuses Educational Plans Social Events Customized Services Creative, Learning & Healthy Environment Highly Qualified, Experienced & Committed Staff Profit & Gain Sharing Plans

Financial Benefits:
The financial benefits provided by Bank Alfalah to its employees are

SEVERANCE PAY
Severance Pay is given according to Policy Give Full & Final Settlement 41 | P a g e

Half Salary As A Complementary (Optional)

SUPPLEMENTAL UNEMPLOYMENT BENEFITS

Supplemental Unemployment Benefits are given During Annual Routine Audits Other Privileges

INSURANCE BENEFITS:
Bank Alfalah gives insurance benefits on Workers Compensation Complete Life Insurance Hospitalization & Medical Insurance

OTHER BENEFITS:
Other benefits provided by Bank Alfalah to its employees are Pregnancy Compensation 2 Bonuses For Each Employee Faster Promotion Introduction Of MENTORS Bank Alfalah MOHTISIB Staff Suggestion Scheme Family Community Concept Salary Of Own Choice Job Rotation Facility Prizes & Gifts Refreshment Packages Short Courses & Trainings + Training Material Traveling & Stay Allowances Communication Benefits

RETIREMENT BENEFITS:
Bank Alfalah gives retirement benefits on the basis of Age Pension Plans Provident Fund Facility Early Retirement Window No-golden Offerings & Defined Contrib. Plan 42 | P a g e

No-social Security & Deferred Profit Sharing

SERVICES BENEFITS:
Following services benefits are provide by Bank Alfalah to the employees: Introduction Of MENTORS (HR REPRESENTATIVE) Counseling Services -Financial, Career, Job-placement, Grievances Bank Alfalah Mohtisib Lunch & Learn Program Employee Transportation Educational & Training Subsidies Flexible Benefits Programs (Few-limitations) No-subsidized Child & Elder Care

PERFORMANCE MANAGEMENT
The performances of employees are appraised yearly at Alfalah Bank. HR head said that Performance appraisal helps us in estimating employees current performance, setting work standards and then providing feedback to employees with the aim of eliminating performance deficiencies.

APPRAISAL METHOD AT ALFALAH

The Appraisal Methods at Bank Alfalah are Self Appraisal Method o Ratting o Evaluation Problems During Appraisal o Unfair Assessment (Bias)

BEHAVIOR APPRAISAL
In this service oriented industry behavior is as important as performance on job. To manage behaviors and appraise company has devised a managing behavior system to evaluate their core values. Each employee in such a system is rated against the behavior performance achieved, against the required benchmark applicable, depending on the Job Grade. 43 | P a g e

PERFORMANCE STANDARDS AT ALFALAH

Alfalah Bank Has laid down the following Performance Standards: 1-Demonstrates Commitment 2-Aligns Activities 3-Promotes Alfalah Long Term Objectives

MANAGING CAREER & FAIR TREATEMENT

In Bank Alfalah, Managing Career & Fair Treatment is based on: Promotion Decision How To Handle Transfer Communication At Alfalah Manage Dismissals

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COMPARISON
Items Based on Base Pay Increments Bonuses Utilities Allowance HBL Performance & Competitiveness Confidential Annual - Performance Mobilink Team & Group Confidential Annual - Performance Bank Alfalah Job Ratings Confidential N/A 2 Bonuses Refreshment

Ramadan, Hajj, February - for all Annual Bonuses GM, DGM, AM, M, Officers Meals phone connection Blackberry (mgr) Laptop (Up Mgr)

House Rent Petrol & Car Discretionary Benefits Children Education Health

45% House financing for All

Managers Transport (females) N/A Middle Mgt Upper Mgt Foreign Trips (Dir) Clubs Membership

N/A Unknown TA/DA

GM, DGM, AM, M, Officers TA/DA (GM, DGM, AM, M, Officers) Clubs Membership (GM)

M AM - Officer Maternity Chronic Diseases 80% for GM, DGM, AM, M, Officers

N/A Maternity Life Insurance Hospitalization & Medical Insurance Pension Provident Fund Referrals Paid Annual Vacations Discount On Own Products Profit & Gain Sharing Plans Severance Pay Short Courses Trainings Performance Fast Promotion

Retirement Benefits Other Benefits

Medical Facility Provident Fund 6%

Unknown

Allowances for Treasury MIS Staff

Cash for Referrals Life Insurance Mgr

Growth Opportunities Promotion

Unknown Performance based Process is very Low

Learning Training

Seniority

Intrinsic Rewards Unknown

Task Variety Man of the year Excellence certificate

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Conclusion
There is a significant difference in HBL, Mobilink and Bank Alfalah.

HBL was once a nationalized bank, so its compensation policies are dominated by bureaucratic approaches. o o o HBL needs to be more flexible It should give more opportunities Promotion process should be made more dynamic

Mobilink is a telecom company, therefore its compensation is based on the ups and downs of market situation. o o Mobilink should consider individual requirements as well Its work environment is some what hostile, it needs to consider the family life of employees and give suitable retirement benefits.

Bank Alfalah is operated by multi national network, thus it gives more flexible and relatively better pay structure. o o o Bank Alfalah needs to better the work-life balance Increments should be properly formulated Regional HR practices should be carried by a proper department.

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References
www.hbl.com Manager HBL http://www.dawn.com/2006/02/16/ebr16.htm en.wikipedia.org http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/menu-eng.html www.bankalfalah.com HR Manager Bank Alfalah www.sbp.org.pk www.Google.com Annual Report of Bank Alfalah Mobilink Managers Annual Report www.mobilinkgsm.com

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