ASSIGNMENT HUMAN RESOURCE MANAGEMENT HRM DEPARTMENT OF UFONE

SUBMITTED BY: ALI IBRAHIM PARACHA ROLL # 08 MBA EVENING

SUBMITTED TO: ABDUL QAYUM KHAN

INSTITUTE OF MANAGEMENT STUDIES ( IMS)UNIVERSITY OF PESHAWAR

HUMAN RESOURCE DEPARTMENT OF UFONE

Human Resource department is being headed by the HR executive designated as Chief of Human resource department. The department is working for the personnel in the organization. There are 3 main sub-heads in the department

RECRUITMENT AND COMPENSATION BENEFITS

Ufone has this policy of not mentioning the name of the company in a job advertisement. Usually hiring takes place through outsourcing with a help of a third party. Final selection takes place after the candidate has been interviewed by the Manager of the department who requires the new employee and then the HR Manager. A very effective way to retain an employee is to give him compensation and benefits. At Ufone following benefits are given: Medical Facility to employee and his/her parents and Paid Vacations, Gratuity, Provident fund etc.

HR OPERATIONS
HR operations at Ufone include the working over all Human resource Functions that are Orientation Human Resource Planning HR hiring / recruitment Selection Process Compensation and benefits Training and Development Human Resource Information system

RECRUITMENT & SELECTION

Recruitment is the process of gathering a pool of candidates for an organizational vacancy. Selection is the process of short listing only the qualified candidates who are fit for the job. In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. And HR at Ufone follows these criteria. Ufone policy of recruitment is very simple, if at any time there is a vacancy, due to retirement, resignation, if employees opted for the golden handshake or the death of an employee, the management of the branch will inform the head office about the vacancy. The head office will place an advertisement in all major newspaper with the all necessary information required to be furnished by the applicant. Ufone has this policy of not mentioning the name of the company in a job advertisement. Usually hiring takes place through outsourcing with a help of a third party. Ufone mostly hires employees through Pioneer

Services and Sydiat Haider Associates. Final selection takes place after the candidate has been interviewed by the Manager of the department who requires the new employee and then the HR Manager. On the joining day, the employee has to submit the following documents to the HR Department: Joining Report Copies of educational and professional degrees/certificates Reference Letter Three copies of recent passport size photographs

HUMAN RESOURCE ANALYSIS

Currently there are over 1500 permanent employees working in Ufone nationwide. On the entry level the HR Department is mostly taking MBA graduates. According to Ufone their belief is that "Their people are their greatest asset. The HR team takes great pride in acknowledging the contribution of each employee. Ufone focuses a lot on HR Development and for that the HR team ensures: Staff of Ufone consists of world class Professionals and Ufone ensures that the right systems are in place to encourage people to develop to their full potential Collaborative and mutually supportive work environment is created that encourages people to grow Team of professionals is built which delivers expertise by participating in business decisions Performance Management and Reward Systems are developed which underlies the Business strategy of Ufone A clearly defined Recruitment & Selection policy is defined The need for Training & Development of employees is assessed Compensation & Benefit plan is developed which ensures that employees are motivated Ufone is basically equal employment opportunity organization. Almost 70% of its employees are male and 30% are female. The job description of each and every employee is predefined. Performance appraisal is done on annual basis. Average age of Ufone employee is 32 years. This shows that they prefer young and energetic people for their middle and lower level management. High profile well experienced persons are considered for top level management. Average Salary is 12000 for a Ufone employee.

MANAGEMENT
In Ufone the hierarchy is very lean, in general the whole setup is centralized all the matters are to be reported to the head office and all the policies and targets are approved at the higher level. But at the branch level the structure is decentralized.

PERSONNEL
There are about 150 employees who are working in the Ufone Head Office and 2500 employees serving nationwide. All of them are very devoted as they are given a

wonderful learning environment to work, pay offered to them is also very attractive and ample chance of progress motivates them to work more. The job analysis is done on targets assigned and daily routines. The employees are indeed very satisfied and motivated.

HUMAN RESOURCE PRACTICES AT UFONE

The HR department of Ufone is functioning very efficiently, there are in total nine employees in which there is one head who is the Human Resource Manager, Mr.Umair Arif.

HISTORY OF HRM DEPARTMENT

Ufones human resource department is in the head office, which is in Jinnah Super, Islamabad. The HR department of Ufone is functioning very efficiently, there are in total nine employees in which there is one head who is the Human Resource Manager, Mr.Umair Arif. He is the one who deals with all the matter related to HR in the organization. HR department in any organization is very significant, no one can deny from its importance. Because human beings working in an organization are the most precious asset of that organization. Ufone also knows that the secret of success of there business lies in their human resources. The basic and core function of HR Department is to select and keep the right person for the right job. Because there is a man behind machine.

ROLE OF HR DEPARTMENT
Role of human resource department are, 1. Policy initiation and formulation. 2. Advice (on personal policy, labor agreement, needs and welfare of company and employees) 3. Service (employment, training, benefits functions, recruiting, interviewing, testing of applicants, maintenance of adequate employee records etc.) 4. Control (monitoring performance and conformance of other departments to personal policy, procedures and practices)

FUNCTIONS OF HR DEPARTMENT
Functions of HR departments are

Employment (recruitment, selection and induction into the organization) Transfer, promotion, layoff, (checking conformity of skills with new department in case of transfer)

Training and development (coaching, performance appraisal, post appraisal counseling, job rotation, understudies, special broadening assignments, feedback) Compensation administration (designing and installing job evaluating program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market) Health and safety (health programs, safety programs) Discipline and discharge (Discipline = training that mould or corrects, punishments of wrongdoers. Training people to abide by rules of behavior and punishing those who do not, formulating list of rules and penalties for each offence, approval for discharge. Labor relations (wages, rates of pay, hours of work, condition of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime) Benefits and services (pensions, insurance program, sick leave pay plans, loan funds social programs, recreational programs) Organization planning (increase level of trust and supportiveness among people open and direct, directly confronting problems, tap the knowledge of all who can contribute to problems solutions wherever they may in the organization) Human Resource Planning (right number of qualified people available at the proper times, performing jobs that are useful to the organization and which provide satisfaction for the individuals involved, goals and planes of organization, current human resource situation including comparison of projected future demand for employees with projected supply, designing programs to implement the plans of recruitment, selection, performance appraisal, transfer, promotion, training, motivation, compensation, audit and adjustments) Equal Employment Opportunity (no discrimination in terms of gender, race, age, national origin, religion, involves complaint investigation, interpretation and policy, monitoring performance) Personal And Behavioral Research (improving worker productivity and also increasing the quality of working life, employees attitudes and motivation, predicting success in management and organizational relationships)

Personal Information System (HR planning, skills inventories, employee benefits analysis productivity studies)

EXECUTIVE SUMMARY
This project has been undertaken in order to highlight the Human Resource Practices of Ufone. Its all about YOU its all about Ufone, a company very highly spoken of these days. A company paying more attention to its customers delights rather then the customers satisfaction. Ufone is a company starting from scratch and has shown utmost performance in the last seven years. Ufone owes its success to its employees believing that providing employees with job satisfaction motivates them to work hard and provide better results.

COMPANY INTRODUCTION
Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001 During the year, as a consequence of PTCLs privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 3475 locations and across all major highways of the country. Ufone currently caters for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 100 Live Operators across 80 countries.

MISSION STATEMENT
To become the best cellular communication option available in the country for u.

VISION STATEMENT
In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity. At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company. With a fresher look than is accepted and appreciated across the board by people of all ages, we aim to connect with you and provide you state of the art services. No

matter who you are, where you are, what you want to say, how you want to say it or how you feel, you are our focus. Because at Ufone, its all about U, There are two basic products of Ufone Ufone Prepaid and Ufone Post pay. Both of these products are available at their franchise for public. F Prepaid F Post paid

STRUCTURE OF UFONE
When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers. Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility.

Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has four regions and within those regions the structure is functional .The decision making authority is centralized at the top but within the regions it is decentralized i.e. regional heads have to inform top management before making any decision.

DIVISION OF BRANCHES GEOGRAPHICALLY (LOCATION)

This is what Ufone looks from the organizational hierarchy point of view. There are eight different departments each headed by a Project Director. They report directly to the CEO. There are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs are divided geographically into three divisions F BU North (Peshawar to Jehlum) Islamabad (Head Office) F BU Central-1 (Gujranwala till Sialkot) F BU Central-2 (Multan till Rahim Yar Khan) F BUM South (Sindh and Balochistan)

DEPARTMENTAL DIVISION
In order to give a jump-start to the company, a comprehensive initiation plan has been made along with aggressive customer acquisition, care and retention strategies. Ufone has the best integration of eight departments each project director. F Engineering F Administration F Business Analysis F Marketing & Sales F Customer Care F Human Resource F Finance F Information Technology Provision of quality service to the customers is of utmost importance for the progress of any service-based company. At Ufone the management is mindful of the same and has been constantly endeavoring to enhance the existing facilities. Therefore operations at Ufone are all planned and carried out in such a way so as to maximize operational efficiency, customer satisfaction and employees motivation. Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL), Ufone carries out its operations autonomously under the license of Pakistan Telecom Mobiles Limited (PTML). The company head office is established in Islamabad (F-7 Markaz), which serves as the center for all its strategic activities. Human Resource Department at Ufone UFONE considers their employees to be the asset of the company, so in order to retain their employees following practices are followed in the company.

HR PRACTICES

F Recruitment and selection F Orientation F Training and development F Compensation and Benefits F Performance Appraisal

WORK FORCE
HR at UFONE is divided into the following two major categories

Permanent Employees (1500-2000 Approximately) Outsourced Employees (2000 Approximately)

PERMANENT EMPLOYEES
HR Permanent employees are further divided into following two categories.

Operation Training and Development

OPERATIONAL DEPARTMENT
It covers all the areas including hiring recruitment, selection and payroll etc. HR operation team manages all the employee activities gathers all the information and make use of it for further processes.

TRAINING AND DEVELOPMENT

HR team of training and development make a performance evaluation of all the employees and the see where the gap occurs between the actual performance and the desired performance. Then training is designed for area which needs to be improved. On the job and off the job both the trainings are given according to the need of the employee.

EMPLOYEE BENEFIT & COMPENSATION

F Training & Development F Employee Motivation F Retention of Employees F Career Planning/ Succession Planning F Employee Relations/ Communication F Employee Awards F Employee Events Management F Medical & Life Insurance

Ufone follow the performance base pay structure and pay for their performance and work output.

COMPENSATION
the total returns which an employee gets against his or her work. It maybe: Employee Health Plans Employee Insurance Employee Leave Employee Retirement Income Security Act Executive Compensation Maternity & Paternity Benefits Pension & Retirement Plans Wages & Salaries

WORKPLACE PROGRAMS
Compensation strategies are usually market based and is linked with the performance with a greater emphasis on variable pay. Salary adjustment is based on the performance, market movement and internal/ external equity adjustment. Revision of compensation is based on total pay and monetization of benefits.

LEVELS OF UFONE: HIERARCHY

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. C.E.O V.P G.M Senior Manager Manager Assistant Manager Senior Executive Permanent Executive Outsourced Executive M.T

INDIVIDUAL SALARY FIXATION:

The Ufone seeks the market trend and try to compete with market for individual salary fixation but they also analyze their own financial positions and budgeting, it also varies from department to department.

CURRENT BASE PAY: (JOB BASED STRUCTURE AND COMPETITIVE)

The Ufone follows the job based structure, and compensate its employees for the work they have done, for their tasks and duties they performed, their work content, behaviour and for their responsibilities. To develop this structure Ufone conducts some surveys, to compete with others in the same industry. Work Analysis Evaluation & control Market trends Employee J.D Surveys Policy Lines

TOTAL COMPENSATION:
Example: 60% Basic Pay 30% House Rent 10% Utilities OPD Hospitalization 15-k 7.5-k 2.5-k 2 Gross salaries Employee siblings, Parents, Wife / Spouse and childrens 50% Employee, 50% Org If work for 10 Months 1.4% Of Gross salary Only Sales department depend upon their performance.

Provident Fund Gratuity Bonuses Incentives

ASSISTANT MANAGER LEVEL:

25000 Car allowance + 200 Liters petrol / Month

MANAGER LEVEL:
Car + Blackberry

SENIOR MANAGER:
Islamabad Club Membership + BMW Car + House + Foreign Tours Further Ufone has developed some grades for employees. AH A is the minimum grade and H is the maximum grade and they compensate their employees on the basis of their grades.

Grade A 500 minutes + 500 Rs mobile usage. Same like this all other benefits. After every Two years Ufone give the amount of Rs 6000 to lower level employees if they want to purchase a new mobile and this limit increases as grade increases. At each stage the amount is different.

FOOD SUBSIDY:
S.E, Exe, M.T so on Rs 65 Rs 95 Company A.M and Above 160 RS

INCREMENTS:
The increments are totally based on the performance of the employees and their seniority level. If the scale is 15000-20000 then the increment is the 20% of the base pay, but if any employee shows the performance then this may increase up to 35% to 50%. Managers: Innovative ideas Silent Warriors

RECOGNITION OF THE WORK:

On Jan 29 (anniversary of Ufone). Employees who is working in Ufone for seven years or more then seven years gets Cash Rewards, Trophy, badges and other things. Leave fair assistance 1 year 20 holidays 1 Gross salary 40 leaves 2LFAs Permanent Employees: Number of employees: Around 1500 2000 Minimum scale starts from 15000 20000 Maximum C.E.O (Not disclosed by the organization) UFONE focuses on providing a large number of the compensation and benefits to its employees in a form of the following categories: F Minimum wage: The minimum salary for Drivers is Rs.7000 for Tea Boys it is Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is Rs.20000 and for Engineering it is Rs.20000 to 25000. F Medical Allowance: 1 gross salary per year is given to each employee; half is given in mid of the year and remaining half will be given at the end of the year. F Health Insurance: Like all other cellular companies Ufone also provides health

insurance policy to its employees. F Loan Insurance: At Ufone loan insurance policy is also provided to their employees through banks. F Transport allowance: Rs 2500 are given to female employees only, if they travel on local transport. F House Rent: 10% of the basic salary is given to each senior/ executive level employee. F Overtime: All employees are entitle for the overtime more then 130 hours per month .For overtime UFONE have specific formula that apply on the employees gross salary, due to which every employee have different per hour overtime rate. F EOBI: EOBI is contributed as per the standard F Children Education allowance: 1 gross salary per year F Provident Fund: All permanent confirmed employees are eligible for membership of Ufone Employee Provident Fund Scheme. An employee contributes 8.33% of month basic salary in a year and an equivalent amount is being contributed by the employer. F Leaves: 7 Casual and 10 sick leaves are given to each employee at all level. F Travel Policy: Revised and categorized different levels such as the senior level, the middle level and the junior level staff. F Meal deduction Claims: Meal books are to be maintained of each employee who issues it, their name, employee number, designation, signature and number of book and date at which it is issued has to be recorded. The reason for maintaining the record is that the company pays 60% of the expense came over the food while 40% has to be deducted from the employees salary. F Expense Claim: The expense Claims are the expenses which an employee make on the behalf of the company E.g. fuel used for business travel, overnight stays on a business tour etc, such claim are made while returning back to the office , after the whole process the HR pay them back the next month along with their salary. F Overtime Claim: If an employee has worked for more than the regular time, they claim for the overtime amount other than their salary which they receive the next month. Overtime claim have to be approved through HR department. F Medical Claim: Different medical facilities are provided to employees at different level of hierarchy, so if any employees make use of this facility they can claim for the amounts to be return next the month while submitting the hospital receipt. Their medical clearness is done by the HR department. F Mobile deduction Claim: Such an expense claims which are made if an employee has made long duration call for the official purpose and they have exceeded the limit given to them then they can make a claim by attacking a copy of mobile bill and if its valid then HR department approved it and pay the employee their claimed amount along with their monthly salary of the following month. F Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to the HR department, further HR head office send it to the regional HR departments

their concerned employees salary slip and they either give their employees through cash or transfer to their accounts. Salary Surveys Collections of salary and market data, it includes average salaries, inflation indicators, cost of living indicators, salary budget averages. Ufone conducts its own market survey and match its standards with other telecommunication companies specifically with Mobilink and telenor. (Research firms and personally) The job evaluation method of Ufone is lined to appraisal system. Whenever the appraisal report of any employee is generated he is being paid according to his performance. The job is evaluated on the basis of appraisal reports. If any post is vacant those past performance on that post is evaluated and the market conditions are observed and then the job is evaluated. The value for the job is concerned with the performance report. The value of any job can be increased if the employee on certain post has performed very well and his appraisal report is very outstanding then according to his performance value of job is increased and this process is carried out by the HR department of Ufone. Moreover, the job evaluation is linked with the merit. Any person who is employed on merit and is performing very well will be given salary on the basis of his performance and merit. The job evaluation method was not very much good in the past but now it is linked to appraisal system of Ufone. The present basic salary structure of Ufone is based on Job description (Tasks and duties performed). Job Analysis Job analysis is systematic exploration of activities within a job. It is a technical procedure used to define the duties, responsibilities, and accountabilities of job. It is proved that job analysis is almost first activity of HR department to be done. Because on this, pay packages, compensations, job descriptions, job specifications, job evaluation etc are made. So at Ufone experts do job analysis. They construct Job Analysis form. Following steps should be taken by the Ufone. Step1: Obtain Documentary information such as procedure manuals and written instruction. Step 2: Ask about more general aspect such as the job purposes, the main activities. Step 3: Ask the jobholders about the job. Step 4: Observe the jobholders to see what they actually do.

Work activities Worker-oriented activities Machines, tools, equipment, and work aids used Job-related tangibles and intangibles Work performance

Job content Personal requirements for the job Why Ufone conducts job analysis The Ufone conducts the job analysis to get the right person for the right job at the right time. If the Ufone does not conduct the job analysis then there will be a huge chance of selecting the wrong person or to reject the right person who is suitable for the job. Knowing Who Does What Major duties or activities required Conditions under which the job is performed There are mostly following procedure of the Ufone about analysis of a job:

Direct Observations Interviews

HOW UFONE FORMULATE JOB DESCRIPTION AND SPECIFICATION

In Ufone most of the announcements for jobs are being done through newspapers having wide circulation in the country. Whenever Ufone offers any job it also describes the responsibilities and duties with in a job to be performed. The HR people after analyzing any job that has become vacant makes a job description defining clearly what the jobholder will do and how it will be done. On the whole job description defines characteristics of job, environmental conditions and responsibilities of the job. The HR people define the job in such a way that it clearly describes the job and guides new employees what to do etc. now they are moving towards ERecruitment also to ensure best candidates apply for the jobs and professional people are employed in the Organization. Ufone also has well developed criteria for each job in term of the job specification. In all the area of the jobs the pre- requisite for the job are defined for example: Qualification required for a job Skill required for a job Experience required for a job Human Resource Division analyzes each job and its required outcomes. Job analysis is done by analyzing the past experience and emerging trends. Ufone holds documents about terms, duties responsibilities, and specifications about each job. In job description Ufone define the following: Duties of HR manager is to select, hire and train employees Responsibilities are to update records and processing insuring claims

Task is to complete the job related activities.

PERFORMANCE MANAGEMENT SYSTEM OBJECTIVE OF THE PERFORMANCE MANAGEMENT:

The basic objective for performance UFONE employees circles around the following: F To look at Performance system as a means to an end F Setting an individuals goal F Aligning goals across the company F Ensuring employees get coaching from managers F Determining merit pay F Identifying training and development needs F Providing data for promotion decision F Input from multiple source on worker performance

THE PERFORMANCE APPRAISAL PROCESS:

The Performance appraisal system used by UFONE for reviewing the performance status of its employee starts with identifying specific appraisal goals set by each Group for each cadre. After this a detail job analysis is done with looking in account the job expectation and then matching the actual performance with the desired performance. Afterward the

performance is appraised according to the set standards and this appraisal is not done by the supervisor alone, their major focus is on taking into the account the employees perspective as well. Therefore whenever the appraisal is done employee is fully participative in the process.

PERFORMANCE APPRAISAL METHOD USE BY UFONE

UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers, peers, customers or colleagues are asked to complete questionnaire on the employee being assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while other in December. In the questionnaire there are five sections and in each section there are five questions related to the performance of employee. There are total 100 points from which an employee gets.

REWARDS RELATED TO PERFORMANCE

There is also a reward related to performance of the employees. For Customer Facilitation Agents there 50% pay is based on their performance which is assessing every moth by their managers. For other employees like in administration, engineering, finance, marketing, etc their performance is assessed after every six and they get increased Rs.5000 in their salary as a reward. In each case employee have to show consistent performance to win reward next time.

COMPENSATION RESPONSIBILITIES OF UFONE HR DEPARTMENT

F Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market). F Health and Safety (health programs, safety programs, Medical facility). F Employee relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime). F Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for achieving high targets).

EMPLOYEES REACTION TO THE SYSTEM

As mentioned above that Ufone follow the job based and competitive structure, so this thing is in the nature of human that to react against any system because by implementing structure every body in the organization thinks that he or she is doing much and organization is not treating them well with the comparison of others. But at Ufone as we observed mostly of the permanent employees are quite satisfied with this system as compared to the contractual employees. Their reaction towards the system is cooperative because of their appraisal system; the Ufone performance appraisal system is very effective after every six months every body knows that what their score is. Ufone is a performance oriented organization so they compensate their employees on the basis of their performance so every body know that if they show the results then the organization will compensate them good if not then they will never expect, This is a good approach for performance oriented organizations to implement the system like this because of this system every body interests involves in it. And the Ufone also adopted the Competitive approach for compensation, because of this system every employee know what the other organizations are paying for the same job and what they are getting is fair or not. Some are not satisfied because they think that we are very senior and the organization should have to compensate us for our seniority not for our work done, (Loyalty factor involves).

PRINCIPAL FAULT LINES AND SOME SUGGESTIONS FOR IMPROVEMENT

While answering a question the manager of H.R expressed his thoughts that the employees who are hired by third party and working in organization on contractual basis, the manager answered we dont want them so we are not bound to compensate them equally in comparison with our permanent employees. In our point of view as we see the organization size figures that show there are more then 2000 employees are on contractual basis which are more then the 55% of the overall size of the organization. And all those employees are not much satisfied because of these criteria and they are a big part of the organization, they are stressed with their job because

they are getting only salary not benefits or any other compensation tools against their work. This thing shows that there is a lack of motivational factor among contractual employees and cause increase in turnover rate. These things increase the cost of new hiring and training of new employees. We observed another important point with the prospective of Human Resource practices that in organization the concept of relational return is not very satisfactory but this matter a lot in organizations like Ufone. Third setback is that they have some problem with their payroll; the organization size is more the 4000 employees but they have only two executives who are working for the pay roll and on the compensation so there are many troubles to run the payroll accurately and compensate every one fairly on the basis of their performance, because of work burden. We think the Ufone should have to focus on the contractual employees and needs to motivate them by compensating fairly, with communication and make them understand that what they are getting is fair. They have to provide them some necessary benefits, bonuses and incentives according to their J.D. Ufone should have to start some career development programs to attract and retain most valuable employees, once if the employee feels that they have some career growth in the organization they are motivated and loyal to the organization. HR Department must also forecast for long-term Human Resource needs. It is also found that no referral bonus was given to contractual employees who refer competent, skilled and knowledgeable candidate. The HR Department must convince the higher management to give such bonus which not only motivated the employees but the organization can in this way get competent, skilled and experienced worker which may participate in the success of the organization. Ufone HR Department must clearly communicate its promotion policy to all employees.