History Of Broadcasting Industry

Published Date: 02 Nov 2017

The main purpose of the study in hand is to gather relevant information to compile internship report on Apna TV Network.

The report is structured with keen observation, analysis of data gathered and its meaningful interpretation. This report helps to emphasize on practical approach in an organization and to enhance interpersonal skills of communication.

Scope of Work

As an employee in Apna TV Network the main focus of my study research was on general Marketing, Human Resource and finance procedures in one of the area office of Apna Channel. These operations include decision making process, conflicts and its resolution, marketing process, marketing issues, new campaigns, brand loyalty and problems and its solutions, request ordering from clients, finance recoveries from advertising agencies and other advertisers, training of employee, job evaluation process, and other accounts matters.

Similarly different aspects of overall of Apna TV Network are also covered in this report.

1.4 Research Methodology

The report is based on my career spanning Seven Years working in Apna TV Network as senior program producer. The research methodology was a mix of primary research and secondary research for data collection. The major source of information is the personal interaction with the organization�s employees which gave me valuable information regarding Apna TV. Few interviews were arranged formally to discuss in a more collaborative and specific way.

Primary data:

o Personal observation and interviews of the staff members

Secondary data:

o Company reports, company evaluation reports, marketing presentations, and research reports generated by marketing research companies.

1.5 Scheme of Report

SECTION 1

Chapter 1:

The first chapter of this masterpiece is about introduction of this internship report which includes different sections like purpose of study, background of study, scope of this project, research methodology adopted, research limitations and expected outcomes.

SECTION 11

Chapter2:

This chapter concludes History of Broadcasting Industry as a whole.

Chapter3:

This chapter concludes brief history of Apna Channel in general, History of Apna TV Network, mission statement, and its objectives, functions of Apna TV Network.

Chapter4:

In this chapter the marketing process and problems and their solutions will be discussed.

SECTION III

Chapter5:

It tells about Strengths, Weaknesses, Opportunities and Threats of i.e. SWOT analysis of Apna TV Network.

Chapter6:

It consists of Human Resource Management and tools and techniques regarding the training and development, recruiting proves etc.

SECTION IV

Chapter 6:

It covers the critical analysis of the Apna TV Network and its market position in broadcasting industry.

Chapter 7:

In this chapter financial reports of last 7 Years and their important analysis and comparisons and ratios are given.

Chapter 8:

In this chapter recommendation and conclusion of the study for improvement on all aspects of the Apna TV Network are given.

CHAPTER # 2

History of Broadcasting Industry

2.1 Origins and Evolution

Pakistan launched its first television station in 26 November 1964 from Lahore. Broadcasting mediums especially television remained under government�s exclusive control until 1990 when Shalimar Television Network (STN) and Network Television Marketing (NTM) launched Pakistan�s first private TV channel utilizing government�s terrestrial resources. In mid-90s other private channels added on the main stream media launched from foreign satellite stations which were broadcasted through Dish antennas and cable networks.

Even though Pakistan has now more than 80 licensed channels (both government and private owned) but still Pakistan Television Corporation (PTV) is the major player in broadcasting industry due to its satellite and other terrestrial resources. During the last 12 years other networks like Geo TV, Ary TV, Hum TV, Dunya TV along with regional channels like Apna TV Network, Kaawish TV Netwokr (KTN), Khyber TV, Awaz TV have also positioned themselves significantly in advertising share from the advertisers.

On 1st March 2002, government established a regulatory body for the electronic media naming Pakistan Electronic Media Regulatory Authority�(PEMRA)�aiming to improve the standard of information, education and entertainment with perspective of Pakistani ideology.

According to the industry experts, Pakistan�s TV media is a Rs.17 billion industry at the moment followed by print media which is at Rs. 9,750 milllion, Radio and outdoor advertising are Rs. 1200 million each while digital medium as a Rs.600 size.

*Statistics taken from Synergyzer in which research conducted by Media Track

2.2 Environmental Analysis (PEST)

Technological advancements, tighter regulatory-compliance overheads, conscious decline in advertising budgets from advertisers due to economic challenges, and less advertising campaigns of government due to political instability, and less new foreign entrants (potential advertisers), broadcasting industry is facing frequent challenges and thus having increasingly tough and competitive environment. Below is an analysis of the structure of the broadcasting industry using the PEST (political, economic, social and technological) model.

Political Analysis:

The government regulatory body for electronic, PEMRA has stopped issuing new satellite TV licensing due to saturated market position, causing a resistance for new entrants.

Although there is no such formal intervening from the government in terms of content and advertising but at times the broadcasting companies are directed to sweeten up some issues due to political nature.

Few years back the major revenue generator for the television industry was government campaigns in form of advertising, but due to political instability the federal and provincial governments aren�t announcing much government campaigns.

Economic Analysis:

Pakistan is facing though times as far as economy is concerned, the global economic setup has influenced Pakistan a lot, that�s why new foreign companies aren�t investing in Pakistan, which is a potential loss to advertising industry.

Due to energy crisis, and long load shedding hours, advertisers are mostly relying on outdoor advertisements and BTL activities and avoiding television medium because viewership has affected a lot due to electricity shortage.

Social Analysis:

Society of Pakistan has warmly accepted the arrival and evolution of TV media in the country as the reachability of information and awareness is lot more easier than it was before, but due to exceptional number of channels the content of these channels are losing its credibility that�s why affecting the brand loyalty of these organizations, which might be a potential threat to the advertisers as far as their own brand reputation is concerned.

Technological Analysis:

With the rapid growth in the technology and the accessibility of internet the face of broadcasting medium has changed a lot. Now content can not only be distributed by Dish antennas and cable networks but also through web streaming. Now audience don�t have to sit and wait for their programs to go air they simply wait for the programs of their choice to upload on sites like Youtube, again resulting in challenge for advertisers. As the social media has gained popularity, its quite hard to manage the reputation of brand of both the advertising medium and the advertising product.

2.3 TV Broadcasting Industry Analysis

2.3.1 Increasing Political Attention:

During the last decade, the broadcasting industry has witnessed increased political attention due to its penetration in the lives of masses and its influence on their opinions. Political interest has also been generated because of its economic aspect as it has grew to a industry worth of 17 billion and is attracting foreign investors a lot to promote their products.

2.3.2 The Social Dimension:

Having up to date social information is an important personal and social requirement and the unique role of broadcasting media. Due to many news channels operating in Pakistan the flow of information has become quite fast and the urge to have an opinion has attracted more viewers to view TV than ever. Any crisis, scandal, important government decisions, entertainment programs, music from and other recreation based programs from all over the world are the reasons to gain viewership at a specific time. Last year the match of Pakistan Vs India in ICC world cup had drawn the most attention compare to the other events occurred in the year 2011. Not only audience were watching the match due to their emotional desires but also the advertisers utilized the opportunity to promote their message at such a time when the rate of viewership is highest at its peak. So obviously the two forces determines the success of television industry, first the willingness of masses to watch something and the willingness of advertisers to promote something via television channel.

Also the airtime timings also influence the viewership according to the social setup. Three of the major peaks times i.e, Morning, Afternoon and Prime time, are the ones which gain attraction both from the viewers (due to their feasibility to watch TV) and from the advertisers (due to higher viewership), TV channels strive to make such kind of content which can create continuous attention for the viewers and eventually benefit from the advertisers.

2.3.3 Technological Advancements:

Rapid technological advancements and scientific inventions are pressurizing all the industry participants to update themselves accordingly to keep in pace with the market competition. Every organization is stressing on developing its own research and development departments to advance their operations and come up with new innovative ideas. Internet, due to its archival nature, had facilitated the content providers to utilize the resources to provide latest updates and also comparative information in such a manner which was not possible before without have expensive subscription of research and data centers. Also, the flow of information due to internet has increased the canvas of decision making aspects for all forces involved in the industry e.g. TV channels, advertisers, viewers etc.

2.3.4 Legal Environment:

The Television sector is the most regulated industry in Pakistan due to the emerging importance of role played by media. For this very reason, television industry has to abide by strict regulations and laws. There are many set compliance procedures in this industry. These legal restrictions hinder the dynamism of media because it is highly dependent on government resources like landing rights, cable distribution system (though it is also private but highly influenced by local governing bodies) and government advertising campaigns.

2.3.5 Structural Industry Analysis (Porter�s Five Forces)

This section provides a summary positional analysis of the TV channel industry using

Porter�s Five Forces model

Barrier to entry: High, PEMRA is stricting its rules and regulations regarding current organizations, also the regulatory body has stopped issuing licenses to new TV channels, plus its is strictly monitoring the foreign operated Pakistani channels in view of Landing rights.

Industry Competition: High. Advantages are gained by the market leaders.

Suppliers: Competitive, Ongoing development in technology are forcing TV channels to consistently upgrade their equipment, human resource, their technical skills along with the talent shown in front of the camera.

Buyers: Challenging, Advertisers aren�t increasing their advertising budgets due to socio-economic challenges.

Substitutes: High (radio, internet, outdoor, BTL activities etc)

Overall, the TV industry of Pakistan is going through turbulent transformation. Organizations are constantly revising their strategies and updating for continuous quality improvement for growth. During the last decade this industry has witnessed drastic changes in the intensity of competition. The usage of audio text services (0900 campaigns, SMS text campaigns), branded reality shows, audience interaction, and other incentives are used as promotional tools have been deployed by the players. According to industry experts, more entrants are still yet to come, but they need focus more on experimentation and content trading in order to attract advertisers. As the advertising chunk of television channels is more than 55 percent as compare to other mediums of advertising, they still be divided into more smaller pieces due to new entrants and market repositioning of channels due to their strategies.

2.3.6 Increased Competition:

The biggest concern for the industry participants is the hyper competition in the market and the race for continually upgrading the advertising market. The industry has witnessed a mass of new participants in TV industry, increased competition among key players. Although the network of channels have increased a lot but the advertising budgets from the advertisers haven�t increased proportionally, that�s why the share of advertising revenue has sliced into many smaller pieces, thus resulting a desperate need by TV channels to stand unique in the market. Though the competition has resulted in making channels utilize the technological advancements to provide incentives for the viewers but it has also resulted in some very unethical practices, need to provide exclusive content whether it is suitable for the masses or no it is just broadcasted in order to gain the attention of the viewers. Though practices of yellow journalism, highlighted scandals, bold subjects especially adult oriented gains viewers attention (either in positive manner or negative) but it had certainly made the advertisers think about their brand reputation.

2.3.7 Changing Consumer Profile:

The profile of the television audience has changed a lot with the coming of more than 100 channels. Until late 90�s the TV channels used to provide general entertainment and information to their viewers while the airing slots were divided according to the viewership minutes. But as the licensing of the channels made easier for the private firms, more and more entrants focused on genre based TV channels like exclusive news channels, drama channels, kid�s channels, sports channels etc. thus targeting the audience according to their genre. As a result advertisers had the opportunity to promote their products according to their target market and not general viewers; economically it was more viable as negotiation for the pricing of airtime became easier with the TV channels. Also, the advertisers had the opportunity to buy cheap air time in bulk for branded programs, small and big campaigns apart from buying regular commercial time.

CHAPTER # 3

About Apna TV Network

3.1 Introduction

Apna TV network�came into existence in 2003, when launched Pakistan�s first 24 hour Punjabi Channel. It was a satellite channel launched from Thailand as infotainment channel to be telecasted in 126 countries around the world. The target market of Apna TV network is Punjabi speaking people who belong to various Punjabi community regions and the Punjabis residing in Middle East, Gulf, Europe, Australia and Africa. The head office of the channel is in Karachi while there are 105 offices spread country wide.

3.2 Basic History

Apna TV was established in 2003 as Pakistan�s first Punjabi infotainment channel, representing the culture, languages, and attitudes of people of Punjab. Earlier programming of this channel was comprised of

1. News

2. Entertainment

3. Drama

4. Infotainment

5. Current Affairs based programs

6. Movies

As the popularity grew and the financial goals of the companies was achieved, the management decided to launch another channel named KOOK in 2006, Pakistan�s first Saraiki based channel to target the 20% of the total population of the country, the strategy of programming and marketing were the same as it was in Apna Channel. After launching their two successive brands, the management of Apna TV network decided to launch its third entity and that was of separate news channel, which was to be world�s first news based Punjabi channel.

In 2012 the group introduced another channel by the name of 8XM but this time it was in national language but the genre was music. After the few months of operation, 8XM became the top most watched music channel in Pakistan and gained immense popularity, according to the report of Media Logic.

Now our case study is about the launching of this channel with respect to strategic analysis and how the goals of the organization were planned also we will be observing that how this network is maintaining its strategy in present circumstances.

The data collected for this document is due to the reports generated by Media Logic, Media Trek, analytical firms working on broadcasting channels for their ratings and advertising share.

* According to the report generated by Media Logic of 25th august 09 to 14th September 09, Apna TV maintained number 1 position among the other channels like Hum TV, PTV Home, ATV, Geo entertainment in Punjab by securing 0.5 points in terms of time consumed. This rating was scored by analyzing the regions of Lahore, Islamabad and Faisalabad , targeting Female gender of age 18 to 45.

3.3 MISSION STATEMENT:

�Our Mission is to become a CHANNEL of happenings and events narrowing rural and urban gap.

Our Vision is to provide fresh, crisp & healthy entertainment along with news updates & Current affairs programs to keep the viewers updated on the national & global happenings, with round the clock transmission. To achieve these objectives, we have developed a core team of technicians and creative individuals, Anchor persons, whose experience is spread over decades in their respective professional disciple. The channel has its Head office in Karachi and 105 offices spread all over the Pakistan Operating round the clock with dedicated and time efficient work force.

We believe in quality and excellence as media broadcasting house focused on creating an edge over our competition in quality programming and contents for our viewers and advertisers in Pakistan and overseas�.

3.4 STRUCTURE OF THE ORGANIZATION:

In Apna TV Network the organizational structure is very formal and centralized as the main company is on the top of all. All the major operations and decisions are performed at the upper level. The whole organizational reporting goes upward to the top management which then makes strategies and decisions for further operations. Whereas at the departmental level the hierarchy is not top to down but decentralization prevails.

The chairman of Apna TV Network is Syed Sarfraz Hussain Shah.

The managing director of Apna TV Network is Syed Fahad Ali Shah.

The head office of the organization is in Karachi

CHAPTER # 4

Marketing Strategies of Apna TV Network

4.1 MARKETING DEPARTMENT

Marketing department handles all the marketing activities concerning all Apna TV network�s programming and branding. A recent marketing survey conducted by a prominent marketing research company showed that Apna TV Network has considerably increased its brand visibility and image through its vibrant marketing strategies.

?Currently country head of marketing is Syed Abbas Ali Shah.

?Marketing department�s hierarchy is as follows:-

Chairman

Director Marketing

GM Marketing

Marketing Manager

FIELD MANAGER

4.2 MARKET SEGMENTATION

�A marketing technique that targets a group of customers with specific characteristics.�

Process of defining and sub-dividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Few firms are big enough to supply the needs of an entire market, most must breakdown the total demand into segments and choose the one or few the firms is best equipped to handle. Four basic factors that affect market segmentation are (1) clear identification of the segment, (2) measurability of its effective size, (3) its accessibility through promotional efforts, and (4) its appropriateness to the policies and resources of the firm. The four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.

4.7.7 DIFFERENTIATION

In these days of intense competition marketers find it hard to differentiate their products from those of competitors. Now customer care about only price. An unsatisfied customer will immediately go for brand switching. Thus leaving a customer unsatisfied and not meeting his/her demands is out of question for marketers.

4.8 TOTAL MARKET ORIENTATION

Total Market Orientation is about understanding and meeting customer�s expressed and latent needs.

4.8.2 COMPETITORS

4.8.3 COMPETITVE STRATEGY:

4.9 MARKETING MIX

4.9.1 PRODUCT

4.9.2 Strategy:

4.9.3 PRICE

4.9.4 PLACE

4.9.5 Strategy:

4.10 PROMOTION

4.10.1 Strategy:

Advertising

Sales Promotion

Personal relations with doctors

Direct Marketing

4.12 Valuing Diversity

We endorse a culture which reflects the idea of �unity in diversity.� An all inclusive work environment helps create the spirit of respect and collaboration amongst employees, which is essential to our aim of effectively serving diverse communities and people.�

Our culturally rich environment welcomes professionals of varied backgrounds, age groups, race, nationality, beliefs, religions and perspectives in one place and motivates them to jointly pursue common goals. We value individuality, cultural, ethnic and lingual diversity and let them steer us to unite and work towards our company�s objectives. Our environment is such where colleagues share their unique experiences and expertise with each other and look beyond all differences.

4.13 Work-Life Balance:

4.14 Flexi working arrangements

We have introduced flexible office hours for our male and female employees. This provides our employees a choice to select a time slot which is most suitable for them.

4.15 Medical Policy

4.16 Bank at work

4.17 Family Picnic and Events

We also organize annual events and picnics especially for colleagues� families, which is a great way to celebrate family life and further engage colleagues and their families.

4.18 On-Site Gym Facility

To help our colleagues get the much deserving break from the hectic work routine, we have established on-site gyms for male and female staff. We have equipped the gym with a selection of fitness machines to promote a healthy lifestyle.

4.19 Movie Sessions

Under an initiative called �Edutainment�, our corporate training department selects and plays a movie with a message on a regular basis to provide an entertainment break to our colleagues.

4.20 Rewards:

Our belief is that to retain the best talent, we must reward talented and dedicated individuals who deliver excellent results and contribute towards achieving business priorities and organizational goals. We have introduced several incentives to reward high-performing individuals. We have well-defined parameters to measure and reward performance.

We have introduced both monetary and non-monetary rewards and incentives for the deserving, dedicated individuals who perform to the best of their abilities and create an impact on our overall business.

4.21 Training and Development Programs

4.22 Job rotation and Secondments

4.23 Training sessions

Our HR organizes training sessions on a continual basis on a variety of topics, the purpose of which is to maximize the performance of employees and enhance their skills. Our customized Training Calendar is formulated keeping in mind the organizational and individuals� needs. We invite both in-house and outsourced, professional trainers for our training sessions/workshops.

4.25 Corporate Social Responsibility

chapter # 5

SWOT ANALYSIS and strategy review

5.1 Introduction

5.1.1 Apna TV Network � SWOT Analysis and Strategy Review

SWOT analysis is an overall evaluation of the company�s

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

5.2 STRENGTHS

Strengths include internal capabilities, resources, and positive situational factors that may help the company to serve its customers and achieve its objectives.

Apna Tv is currently one of the major regional channel in Pakistan

Having more than 105 regional offices makes it easier to penetrate on the local of level of punjab

Apna TV isnt facing major competition in regional channels

Advertisers interested in specifying Punjabi target audience prefers Apna TV as their medium

They are simultaneouly running an infotainment based channel, news channel and a Saraiki infotainment channel

Apna TV is Pakistan�s first Punjabi infotainment Channel.

Strong Representative of Punjab and Punjabi Culture.

Emphasize on development of Punjabi Language.

High viewer ship in inner Punjab.

Integrity level of employees is high.

Unlike other channels the date of salary is fixed.

5.3 WEAKNESSES

Weaknesses include internal limitations and negative situational factors that may interfere with the company�s performance.

Distribution of tv channels of this network is not consistent

Lack of good rapport with cable operators

Insufficient facilities of production in regional sub-offices makes it little difficult to manage productions apart from regional headoffices

Due to Punjabi Language their viewer ship is limited.

Conveyance problems are often faced by the employees.

Due to field work there is no specific break time.

There are no holidays on special events because of lack of alternatives.

Office timings are often exceeded in result of special event without any rewards.

5.4 OPPORTUNITIES

Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage.

Local and close regional export.

Expand the market through further new product variant development such as doctor & dentist napkins etc.

Many subjects and areas of information are still new to Punjabi language

Being First Punjabi Infotainment channel, they can create more loyal viewers.

The problems of various inner Punjab cities and villages can be highlighted to media.

Fresh students of masters of mass communication mostly feel comfortable during training thus resulting as an permanent asset to the organization.

5.5 THREATS

More TV networks are considering to launch their channel in Punjabi language

Increasing viewership of News Channels may affect their infotainment based channels

Monoply of news channel may devalue the air time of Punjabi news channel.

In, near future, there will be a strong competition among Punjabi channels as new Punjabi channels are being launched.

Due to new channels, the expertise of Apna TV is continuously transferring in other channels.

Some basic facilities like, tight time constraints, undistinguished and unrewarded high office hours (i.e more than 10 hours) sometimes demotivate the employees.

chapter # 6

HUMAN RESOURCE MANAGEMENT AND FINANCE DEPARTMENT

Like many other TV channels, Apna TV channel is a Karachi based TV network, and due to that the HR department is mainly formed at the head office. The regional offices have only office co-ordinators working for HR department in Karachi. Certain disadvantages are there of not having a HR department in regional offices like Lahore, Islamabad, Multan. In recent months, due to the enormous evolving in TV media and launching of new channels, Apna TV was facing a high turnover rate because of certain demotivated aspects like:

1. Many newly launched TV channels were paying above the market resulting in radical changes in the pay standards of markets.

2. Newly launched channels were introducing the latest technologies related to coverage of news thus giving great performance efficiencies among the employees.

3. As many new channels are news oriented, some channels had maintained a high shift standards.

In above mentioned aspects Apna TV was not competing with other TV channels, resulting in job dissatisfaction and high turnover. Due to this situation APNA TV introduced a two year contract system which was done in order to bound the employees for two years with limited benefits.

As the organization exists with non-unionize settings therefore the rate of dissatisfaction became more high than in past. Thus, employees, who were not involve in the turnover process but were in highly dissatisfied conditions formed a collective interest and present it to HR department in Karachi, those interests were:

The pay scales of employees should be graded by a standard and according to the new market standards.

The shifts of employees should be reduced to 8 hours rather than 10 hours.

Rewarding system should be there for working overtimes.

After presenting the above mentioned proposals, the HR department tried to resolve the situation because of the danger of more turnover by introducing a labor consultant in Lahore, installing a grievance system and introduced a culture of speaking freely in perspective of positive changes in the organization. The pay scales were revised but again not to the standards of markets but introduced other intrinsic benefits for the employees such as, Employee of the month, leave system, paid vacations etc.

6.1 Human Resource Planning & Forecasting

Determining the objectives

Defining required skills to meet objectives

Determine additional Human Resource requirements

Develop action to meet the anticipated Human Resources needs.

5.3.1 Selection & Recruitment

Although the Company believes in merit but in practice the selection of employees is not done on merit. Most of the employees are low educated. This shows that candidates with some strong family background or political pressure are given preference in recruitment and qualified candidates are sometimes left behind.

6.6.1 Performance Appraisal

The performance of employees of the Company are appraised though their annual confidential reports at the end of each year. This has become an outdated method of performance appraisal and no longer used due to the following reasons:

The performance of employees is evaluated after quite a long time.

Element of subjectivity is involved in this method.

Employee�s participation is not ensured in the process of evaluation.

Objectives of employee�s are not quantified.

Different types of compensations includes:

Medical insurance

Sick leave

Vacations

Provident and pension funds

Promotions

Overtime pay

Profit sharing

Bonuses

Travel/ Meal/Housing Allowances etc.

6.7 Promotion:

The criteria for promotion for specified job is usually the merit cum seniority base. Person is eligible for promotion if:

Satisfactory Record of service

Meets the criteria for promotion

Clear recommendation for his promotion is ACR

If there are any departmental proceedings against him or any penalty within last 3 years. Then he will not be promoted.

6.7.1 Demotion/Expulsion:

On joining, employee is provided with the organizational rules.

A person is demoted to lower rank if the performance required, remains same for 3 years without any improvement.

A person may be expelled on course of bad conduct in law, convicted by law or fraudulent activities.

6.8 Resignation:

When employee wants to resign, he has to submit his resignation in HR department in 1 advance. If he fails to inform 1 months prior to resignation, then he has to pay1 months gross salary amount.

After employee put his resign, HRD query all branches if this person has any transactions left with any branch or not? If not, head of HRD query all branches if this person has any transactions left with any branch or not? If not, head of HRD approves his resign and send that to employee�s branch manager.

6.9 Retirement:

HR Department writes to employee, CC to line manager, advising retirement date.

Line manager arrange informal meeting with employee to discuss plans and confirm with to request continued working.

Line manager writes to employee confirming meeting, CC HR.

Employee chooses to retire at 60 years.

Normal retirement procedure applies.

6.10 Labor Management Relations

The society for labor welfare is formed within NBP, which functions with the help of Management, so form a good relationship and provides:

Immediate relief ot any accidental causality.

Some benefits to on job deceased.

Arranges variety shows for the families of employees.

Arrange Educational funds or benefits for the employees.

Improve General banking facilities

Change the mind of the old employees to adapt IT

Unclear brand image of the bank.

People�s perception that its Government Bank with lack of facilities.

Customers wants fast and innovative service.

HR management is less existent.

Motivational Tools are not followed.

Promotion of employees is not done regularly.

6.10.2 Lack of Communication

Lack of communication is for the biggest reason for conflicts. Not only it is due to the failure to send a massage but to an interpretation given to the massage by the receiver is different from that intended.

6.11 Management Trainers for Human Resources

Management Trainees for General Issues, Corporate & Investment issues, Marketing, Risk Management, Compliance, Commercial & Retail issues and Treasury Management. MBA or equivalent degree (Finance/General Management/Marketing Banking).

6.12 GPA Requirements:-

Minimum GPA.3.0 out of 4 or 3.7 out of 5.0 where GPA system is applicable, where GPA system is not in practice candidates must have secured a minimum of 70% aggregate marks in the examination. Only those who have already received final results are eligible to apply (Executive MBAs are ineligible).

Age Limit:- Maximum age limit 26 years as on 31.07.2010.

Compensation:- Management Trainees will be appointed as Sales, admin and finance Officer in regular cadre and will receive a gross compensation of around Rs.30,000I- per month plus bonuses, liberal perks and end service benefits.

Training & Development:- They will receive comprehensive training in company and management to groom them as professional managers.

Career Growth:- Management Trainees on completion of three years will be promoted as Officer Grade-I and in next three years as Assistant Vice President on the basis of their performance.

Selection Process:- Candidate will be required to appear for written test on the pattern of GMAT/GRE. Successful applicants will participate in group discussion and final interview

6.14 MOTIVATING OUR EMPLOYEES

We expect a lot from our employees. Their integrity should be beyond doubt. They should be part of a dedicated work force, committed to the uplift of the Company. On the other hand we also try to motivate them adequately. They are offered handsome salaries and adequate perks. Various schemes of group insurance coverage have been introduced for the benefit of our employees and their dependents.

We also take care of their health and that of their dependents. Comprehensive medical facilities are available to them. Employees in lower grades are allowed reimbursement for the educational expenses up to two children. Similarly, incentives for acquiring professional qualifications are available to employees so that they can elevate themselves to next grade. The day scholars are also granted study leave to relieve them from official responsibilities. The employees are also offered cash rewards for acquiring a Masters degree in a marketing, finance or HR related subject and on becoming associate of professional institutes, like IBP, ICMA, ICAP etc.

6.15 PROMOTION POLICY

The promotion policy introduced in 1979 was based on three parameters i.e. (i) qualification, (ii) length of service and (iii) standard of service. Separate marks were prescribed for each of the three parameters and, after obtaining the minimum qualifying marks varying from cadre to cadre; one could be promoted to the next higher position. While formulating the merit based promotion policy introduced in 1999, the considered opinion was that separate points should not be prescribed for qualification and length of service.

The simple reason for this thinking was that the minimum qualification stood, as prescribed at induction for different levels of hierarchy. The other consideration for such views was that in case the employee had increased his qualification for his better performance as compared to other colleagues, then the said qualification would be reflected on his performance and this would obviously have him rated better than others. Views regarding the seniority of an employee were similar. Thus under the merit based policy of 1999 the overall assessment of an employee was based on the combination of

(a) average of points earned by the employee in his PERs during previous three years and (b) the points that he would earn in an evaluation by the Promotion Committee.

(b) The awarding of points by the Promotion committees, however, again reduced the exercise to a mechanical process as 60% points were fixed for qualification, length of service & standard of service and only 40% points could be awarded on objective criteria. Further improvements in the policy are being planned.

6.16 TRANSFER/JOB ROTATION POLICY

Like promotion, a well-defined Transfer/Job Rotation Policy and its judicious implementation can provide an environment where employees may get greater satisfaction and contribute their best efforts to their work.

Transfers on request, however used to take place only on compassionate and medical grounds while another reason was that these were initiated by the Company for meeting its business or administrative requirements i.e. filling up the vacant positions. Maintenance of office-wise seniority lists up to OG-1 (on the General Side) and up to OG-2 (T.O) (on the Cash side) had also contributed to the lack of movement of employees from one office to another. Resultantly all the employees become permanently positioned in their place of work, whether the head office or the field offices of the Bank. At the same time, there was much movement within the unit/division of posting.

Although instructions provided that an employee can remain posted in one unit for up to 3 years and in a division for up to 6 years, yet some offices used to frequently transfer their employees from one unit/division to another. On the other hand, transfers from one department to another at the Head Office were rare. This had further deteriorated the level of efficiency both at the head office and the field offices.

With the objective of preparing staff to accept new challenges, acquire new skills and diversified experience, the following transfer/rotation policy has been framed for all categories/sides of employees.

Rotation of employees from one desk to another in a unit will be made by the concerned unit-in charge on a regular basis. This is being done so that no one is allowed to stay on one desk for more than 2 years at a stretch.

Rotation of employees from one unit to another in a division will be made by the concerned Divisional Head on a regular basis so that no one is allowed to remain posted in one unit for more than 3 years at a stretch.

The HOD/Office in-charge will make rotation of employees from one Division to another in a planned way so that no employee is allowed to remain posted in one Division for a period exceeding 4 years at a stretch.

Rotation of employees from one department to another department at HOK shall be made by the Administration Department, HOK, in a planned way so that no employee is allowed to remain in one department for more than 4 years at a stretch.

Rotation of employees in the Cash department shall be made as per instructions contained in I.D.

An employee transferred from one office to another shall be allowed to seek his posting back to his parent office or to the office of his choice subject to administrative convenience immediately after completion of 3 years. Such period has been reduced at certain places i.e. this period will be 2 years for Sukkur, D.I.Khan, Muzaffarabad and Bahawalpur.

The Chief Manager shall not remain posted at one office for a period of more than 3 years.

The shortage of employees at an office because of review of staff position will be made good after calling options from the interested employees of the company. If no such employees are available, the vacant positions will be filled through transfers of employees from the offices where sufficient/surplus staff is available. Duration of such transfers would be for a period of two years to avoid inconvenience.

6.17 ELIMINATION OF REDUNDANCIES

While focusing on the agenda of improvement in business processes for the sake of increasing efficiency and productivity, redundancies in policies, procedures and reporting systems have been eliminated through the various steps detailed below:

Review/revision of various instructions and streamlining of obsolete procedures.

Reviewing of the organizational setup/structuring of field offices and developing a standardized organizational chart (organogram) to realign the same with new business activity.

Empowering chief managers to accelerate the process of disposal of cases at their level without referring these to the HOK.

Implementation of job rotation policy for middle managers and above.

Introduction of transfer policy of Assistant Treasury Officers from Cash Side to General Side.

Introduction of the scheme for grant of study leave.

Introducing policy for promotion of graduate and postgraduate clerical and non-clerical staff as middle management through competitive test.

6.18 RECRUITMENT - RIGHT PEOPLE AT THE RIGHT TIME

6.18.1 Recruitment of IT Auditor

Steadily increasing automation in the organization has made it critically important to hire the services of IT auditors. An IT auditor, having relevant skills and qualifications, has been hired through an open and competitive recruitment process.

6.18.2 Hiring of Female Batch in the Cadre of middle management

A batch of 24 female officers has been inducted in the organization with a view to give them a fair representation and address the gender imbalance that exists in the company. This batch has undergone extensive 24 weeks (6 months) training at National Institute of Training and management, in Karachi and a subsequent follow up with intensive orientation in the field offices of the company.

6.18.3 Recruitment of Security Officers on contract basis

In order to strengthen the security system and to equip our system with trained and skilled officers and staff, 6 security officers have so far been recruited on contract basis. The adequate support staff services of 73 security guards are also at the disposal of our team

.6.19 HUMAN RESOURCE DEVELOPMENT

After the first year of its operations, company has started concentrating on the training and development of its human resources. A number of in-house training and orientation courses were arranged for employees in order to improve their operational skills. The overall direction of the company has been set towards nurturing the strength of the human capital at its disposal. This will help to create a progressive environment with a thorough commitment of staff to meet challenges of the ever-changing business requirements and customer needs.

Training was imparted through institutions like National Institute of Training & Development.

6.20 RECREATIONAL ACTIVITIES

Following the deliberations that took place in the Change Management Conference 2003, the company has taken a number of steps to promote a lively and healthy environment in the bank, by arranging cricket tournaments and evening programs like Mushairas and dinner evenings. During the past two and half years, sports activities were progressively increased. Cricket teams of the Platinum were formed and tournaments were arranged between different offices. An overview of these activities is presented below: