Stress: Effect on employee performance

BACKGROUND

People at work worry about all sorts of things like increasing competition for careers, change in culture, globalization, terrorism, new technology, looking after aging father or mother and relatives, annual performance appraisals, outsourcing of jobs along with an increase of demand of company for higher production. At times, these plus some other different factors make the employees to undergo certain stresses when they have to meet deadlines, cope up with some kind of unusual but critical situations. They have to become familiar with the ethnic changes of the organization, learn new steps and timely attend meetings along with being impressive. Looking at these circumstances, at first hands, appear to be the crucial part of any job but when we look deeper and closer at all these, they are only stressors which cause hindrance to the performance thus triggering harm to the productivity and performance of the organization overall. All the good organizations take necessary concern and exercise extreme good care and foresight with regards to job stress. So they, in their own bigger interest, take very good care of their employees, value them, spend money on them and work extra mile to cope their problems and match their needs.

Work place pressure is growing day by day, people face changing economical and business situations, changing customer prospects and changing expectations from their own role and position in the business (Moten, 2009). Therefore, there are three conditions that occur in considering aftereffect of job-related stress on individual organizations and the economy in general which can be: how should work-related stress be specified, what can determine its presence at the workplace and what is its importance as a predictor of individuals' patterns?

Job stress Or Work environment stress

Job stress Or Workplace stress is the damaging physical and emotional response occurring when there's a poor match between job requirements and the functions, resources, or needs of the worker. MEDICAL and Safety Executive (HSE) (1995) described work stress as 'pressure and extreme demands positioned on a person beyond his potential to cope. ' In 1999, the Health and Safety Percentage (HSC) stated that 'stress is the reaction that folks have to abnormal pressure or other type of demands placed after them. '

Nearly everyone agrees that job stress results from the conversation of the staff member and the conditions of work. Views are different, however, on the value of staff member characteristics versus working conditions as the primary cause of job stress. These differing viewpoints are important because they suggest various ways to avoid stress at the job.

Performance

Performance is thought as the results and accomplishments cherished by the organization or system that one works in. It really is natural that the working environment of the system where people work immediately affects performance of humans. People need work that motivates them with healthy working conditions, and the opportunity to play a part in social area of work and to feel valued. Tense working situations and conditions, arising from any of previously listed factors, can straight or indirectly effect on job performance of the staff.

Work place pressure impacts the performance at a greater level and it need to be dealt with carefully. Stress at a greater level on the other hand is dangerous and has a poor influence on performance of employees in the long-term as it wears down an individual and underutilizes his or her energy resources. High degrees of stress can cause, low morale at the job, fatigue, late comings, absenteeism and trouble in getting and also other associates or co-workers.

Recently many organizations have become responsive towards increasing cost of occupational stress, not only in human and financial terms but also to the countrywide economy in general. The expense of replacing a worker who's underperforming owing to stress is between 50 to 90 % of his salary (Workers Management, Factsheet 7, July 1998). Job stress is really as much a commercial business concern as it is a ailment for organizations. Job stress fee American businesses billions of dollars per year in staff burnout, low morale, turnover, higher absenteeism, lower performance and increased healthcare costs. The American Psychological Association quotes that 60 percent of most absences and overdue comings are because of issues related to stress, costing American companies about $57 billion in a time.

Thus the study aims to find the impact of job stress on employee's performance. Since it is clear that no one could work to its optimum level when s/he is under stress. Under severe stress, a person fails to take clear-cut decisions, reevaluate and reassess the priorities and life-style, and ultimately, have a tendency to fall under unproductive distractions. This can be described as a vintage circumstance of 'burnout'. The 'burnouts' often engage in reckless or risk-taking behaviors. Beginning with glamour and sport stars to common men, 'burnouts' are found almost everywhere. Often burnout will express itself in a reduction in motivation, level and quality of performance, or in dissatisfaction with or departure from the experience altogether.

PROBLEM STATEMENT

Moten advised that worker performance is declining because of the on the job activities and managerial guidelines.

On the foundation of her findings we are exploring that "Work activities and culture result the work performance and behavioral performance in positive or negative way"

OBJECTIVES WITH THE STUDY

The macro objectives of this research are:

  • To determine the sources of job stress in a place of work.
  • To find out the result of job stress on the performance of the employees.
  • To determine the factors that can reduce the job stress at PTCL.
  • How can Stress at the job be prevented or reduced

The micro targets are:

  • To determine the result of work activities on the task performance and behavioral performance of employees of PTCL
  • To determine the effect of culture on work performance and behavioral performance of employees at PTCL.

RESERCH DESIGN

Independent variables Dependent variables

Identification of Effect on

Factors creating Stress Performance of employees

Work activities

Deadlines

Work Load

Culture

Support from Employer/Supervisor

Management Style of Supervisor/ Supervisor

Work Performance

Completion of given tasks

Sense of responsibility

Behavioral Performance

Satisfaction level

Low Morale

Independent Variables

Work activities and culture were the independent variable of the study. All the job conditions that can lead to stress will be the result of stressors and may be used to measure the stress.

Work activities

Includes multi-tasking, strict deadlines and work insert on employees

Culture

It includes support from Supervisor/ Supervisor and Management design of Boss/ Supervisor.

Dependent Variables

Dependent varying for the study is Work Performance and Behavioral Performance of the employees. Performance is the outcomes and achievements of the employees that are appreciated by the business. It establishes the success of the business or we can say that success of any company depends upon the performance of its employees. The various measurements of work performance are:

Completion of given tasks

Sense of Responsibility

And the proportions of Behavioral Performance are:

Satisfaction level

Low Morale

MODELS / RELATIONS OF CAUSE AND IMPACT OF INDEPENDENT VARIABLE ON DEPENDANT VARIABLES

Work Activities

Deadlines

Work Load

Work Performance

Behavioral Performance

Culture

Support from Supervisor/Supervisor

Management Design of Boss/ Supervisor

Independent Variables

Dependent Variables

Dimensions

Dimensions

Work Performance

Behavioral Performance

Completion of given tasks

Sense of Responsibility

Completion of given tasks

Sense of Responsibility

Satisfaction level

Low Morale

Satisfaction level

Low Morale

RATIONAL FOR THE STUDY

The framework of this project is influenced by the work of Moten's research conducted in '09 2009. Her work consisted of several variables and its own effect on employees. Our try to conduct the study is to validate the result of work activities and culture on the work and behavioral performance of employees. These parameters have several sizes. Thus it will help PTCL, specifically, and other firm to find the reasons of the difference in actual performance and the expected performance.

RESEARCH METHODOLOGY

Type of Study

The study being conducted is descriptive in character. Using this setting of evaluation is favored to steady the improvement of study, create and be able to illustrate the characteristics of a group in times. Descriptive analysis used helped to present and analyze the info in significant form. In addition, it helped to understand the consequences of job pressure on the staff performance at PTCL.

Type of Investigation

The research is co-relational. The researcher determined the factors that cause stress among employees in PTCL and subsequently the way the performance of these pressured employees gets result. Many factors were known as vital reason of the strain with respect to the variety as well. Any of these factors can cause stress but at times they all become stressors.

Sampling Method and Kind of data collected

Non-Probability sampling method was picked to collect the info from the populace and the data accumulated was qualitative in characteristics.

Population

The study is approximately the performance of employees under job stress. The population for this study will be employees of PTCL.

Sample size

The planned test size because of this study is 100 employees of PTCL.

Research approach

Research procedure was in essence qualitative. But data was analyzed by both quantitative and qualitative techniques. Research subject was related to the Worker Performance under Job Stress. The study type was quantitative because after getting the response from sample through questionnaire the results lengthened from data were in numerical form and provided in the form of graphs and graph. The research type was qualitative since it included books review commercial and organizational analysis along with study analysis.

Study Area

Field work of the study will be completed in the City of Islamabad.

LITERATURE REVIEW

This area of the study supplies the literature available on the research topic. It includes the citation from the prior works and theories done by different researchers. This helps to assist the study process and increases information and in-depth understanding of the subject and issues that are believed critical to the complete work. The sources of literature, studies, information, research and information through articles have indeed enlighten and given us as a researcher proper way to work and move into. By the help of the review the main fact that arrived to researcher's knowledge is the fact that hardly any has been done in regard to manage Job/place of work stress in Pakistan. To the researcher's best knowledge, the existing research is the first in depth and comprehensive review that shows the effect of job stress on employee performance in the business field of Pakistan.

Occupational stress can be defined as the "hazardous physical and psychological responses that occur when certain requirements of the job do not match the functions, resources or need of the staff member" (Sauter and Murphy. 1999).

Porter and Streers, (1973) offered the study of occupational stress and its own health outcomes. It takes its major portion of research in the behavioral sciences. Studies of specific stress-related illnesses feature prominently in the medical literature, while in occupational psychology work-related stress has been associated with both physical and internal health issues across a broad section of the working human population. Individuals under stress are reported to suffer negative personal health, including ulcers, high blood pressure, heart attacks or even death and studies in the behavioral sciences show that poor employee performance, absenteeism and high labor market turnover are all linked to staff member stress.

According to Wayne Tighe (June 2000) in his article "Stress affecting mental health and physical health" contributes that when people experience and feel under impossible pressure at the job, meeting deceased lines, unsupportive boss, being undervalued and insufficient control over the task they slim to work harder and harder to attempt to close the gap between what they're reaching and what they think they should be achieving. They stop taking breaks and lose touch with their own needs which creates stress not only in the business but also disturbs their personal lives.

Due to the increased popularity of Call centers Ruyter, K. & et al. (2001) examined the causes and benefits of role stress in a call middle setting consequently of the conflicting requirements of the company, supervisors, and customers. The participants of the analysis were 1200 employees of Insurance industry of Netherlands. The studies were that role stress is an originator of job satisfaction that, subsequently, can be an originator of poor job performance and turnover intention. Both empowerment/autonomy and competence were found to be antecedent conditions for role stress. They also found that while autonomy causes role stress that contributes to job satisfaction, competence does not have any direct impact on role stress. Another finding was that authority had less impact in the model. Therefore the researchers claim that empowerment autonomy seems to have a comparatively strong impact in conditions of role stress lowering. Thus the employees should be given the independence to influence rate, working method, and collection of tasks in dealing with customers. In difficult work environments, it has been emphasized that job rotation and reinforcement of employees' trust in their own competencies and skills are specifically useful in increasing job satisfaction. Worker acceptance by management as well as conditioning employees' confidence in their competence through task-related training programs may be the main element to keeping high-performance call centre employees.

Another research by Lambert, Alysa D. & et al. (2008) suggest that employees are so much strained due to different stressors that they readily give up some part of these salary even job. The analysis was conducted by firmly taking 211 employees of two different organizations as sample. It was a two part on-line review. Data was analyzed by using regression analysis. End results were that lots of work related factors induce employees to imitate the behavior of these co-workers to get ways that can make the task schedule a lttle bit flexible. The idea that people who are employing flexible working agreements were more profitable is supported by this research also.

Mubashir T. and Ghazal, S. (NA) conducted a study identify role of different contributing factors of job stress and to investigate degree of stress on those factors among different departments of Wall's Unilever Pakistan. And also to find that how job performance is afflicted by job stress. The test for the analysis contains 65 employees having different degrees of job in five different departments of Wall's ICF. The info from the sample was collected through questionnaires. They concluded that Workload, co-workers and repetitive work are the major factors causing stress however a peculiar finding was that there was no have an effect on of stress on job performance in the determined organization.

Moten (2009) is of the view that work place pressure comes from various factors which is expressed by employees in various behaviors. Regarding to her, job stress is designed through a range of ways so on interpersonal needs, role demands. Though the sources of these aforementioned types are different, their impacts will be the same i. e. Low degree of performance. She discovered that employees are often considered to complete certain jobs which normally are not their job necessity. Most organizations impose multitasking upon their employees to handle the downturn and cut costs but unintentionally they are doing vice versa. Posing rigorous deadlines, demanding them attend conferences in very short notice, forcing them work overdue time and making them prone to cut-throat competition and attached work can result in stress and anxiety. Personnel may show signs of fatigue, absenteeism, and low morale. So at workplaces, friendly relationships are extremely much important. Bosses should give their workers some space to help them manage the pressure and deciding success at the job.

Stranks (2005) states in his book that stress is a pressure positioned on a person beyond his capability to handle. It has a major concealed cost to employers. There are numerous immediate and indirect causes of stress. Nervousness and unhappiness is manifestations of stress so employer should become aware of the fact that employees experience certain types of stress in their lives. Particularly female employees can be subject to many stressors that male co-workers are not susceptible to. Changes in the organization can be considered a major reason behind stress. There are techniques available for the measurement and analysis of stress in organizations. So employers must give attention to various kinds of human errors and violation at work place and must find way to recognize the traces of stress amongst their employees. This may be done by inspecting the criteria of performance, staff attitude and habit, relationships at the job and sickness absence levels. His investigations in this brand area brought out the fact that there is a direct romance between stress-related individual failure and crashes occurring at work. Strategies must be designed and considered at both specific and organizational level. Stress management programs and trainings should be introduced.

Glazer & Gyurak (2008) completed a cross-cultural analysis to get the resources of stress on the list of nurses of varied countries regarding and free from the cultural effect. They loaded a questionnaire regarding stress options. Results were obtained by carrying out Chi-square analyses and t-tests. They discovered that quantitative workload might be a way to obtain stress or stress in each country. In the same way leadership, lack of resources, low salary, negative rewards, certain patients and carrying out certain tasks can result in stress. So there's a need to tailor occupational stress interventions to cope with the needs of nurses in a specific country, by addressing the specific stressors.

Stress management includes caring for organizational issues like authority, peer support, organizational culture and regulations, work design and reporting arrangements as well as job analysis, staff selection and training to improve role clarity in a way that there is a balance between your person and his work place. Effective systems for determination and performance management are crucial (Jennifer et al, 2006).

Kim (2002) conducted a research to show that participative management has positive effects face to face satisfaction and better communication can improve the performance of employees. The questionnaire was circulated among 4, 097 employees of municipality agencies. After running the regression analysis on the info collected, researcher found that employees who believe that their professionals use participative style of management were more content with their careers. Also those mangers who applied proper planning process found their employees to become more successful and easy to cope with. By the end, the researcher relates his conclusions with job stress and says that if employees are definitely more satisfied they will eventually be less stressed and more productive.

Zahavy & Freund (2007) examined team efficiency under stress. The author says that in case of stress team can lose cohesion, customers may become dependent on others to avoid faults or lay down off their burden or that they could become less effective. To avoid these troubles, team structure must be considered a vital aspect. For this purpose, data were gathered from 643 associates of 73 principal healthcare teams randomly preferred from 1200 key care clinics of the largest health maintenance firm in Israel. Members loaded the questionnaires as recommended by the researcher. Because of this this review differentiated among qualitative and quantitative stress, recommended that quantitative stress holds back team performance, it also suggested that qualitative stress can boost team effectiveness. Furthermore, the results also establish the fact that framework of the team really issues. Researcher suggests that organizations must support standardized regimens to obstruct the negative impact of quantitative stress on team dedication and performance, and put into practice the ways that encourage self-sufficiency and a systems method of enhance the positive effects of qualitative stress on team effectiveness.

Glazer & Beehr (2005) conducted a research to discover the correlation between stressors and exactly how it leads to absenteeism or induce an individual to leave the work. These stressors can include workplace conditions, role ambiguity, role overload and role conflicts or any other conditions that can cause anxiousness and stress among employees at work environment. The purpose of study was to observe the effect of the stressors from social aspect. So nurses working at nursing homes of varied countries were the populace. Researchers sent out questionnaire among the list of sample through mail. After filling, nurses mailed back again the questionnaires. The results supported the hypothesis that turnover relates to stress at some degree. However culture affects the tolerance level of the strain. Researcher is of the view that some ethnicities are more susceptible to stress but people take it for awarded and within their job. But at some places stress has a great influence over employee and it affects their performance as well as targets from their workplace. Whatever the reason may be to this truth, researcher suggests more research in this series.

Anxiety Disorders Connection of America (2006) conducted a survey research and noticed the effect of nervousness disorders and the level of everyday stress in the workplace also. Studies of survey demonstrated that most Americans experience stress and anxiety on a regular basis. Which stress is not without impact. For the four in five working persons who say they experience it daily, job stress often takes a toll on performance, quality of work, associations with bosses and connections with coworkers. Several factors were mentioned by employees that cause stress. Included in these are deadlines, interpersonal romantic relationships (i. e. , interacting with superiors, coworkers, subordinates), staff management and dealing with problems. In addition they discussed that stress impacts their performance, relationship with co-workers/peers, quality of work and human relationships with immediate superiors. Survey results suggested that people found sleeping a typical comfort practice for stress. Others are eating, speaking with friends, or/and taking drugs. The only thing that people avoid is chatting and asking their bosses. That is due to concern with being perceived as incompetent person, poor performer.

Pearsall, M. J. & et al. (May 2009) investigated the situations where both challenge and hindrance stressors coexist. They took involvement in this subject because on the grounds that the positive motivational ramifications of task stressors might to some extent balances the hazardous effects of interruption stressors on team results. In an extremely nerve-racking situation, team members will be incapable to divided a variety of stressors into negative and positive facets, and take into account multiple methods of coping. They are also of the view that in the existence of obstacle and hindrance at the same time, associates will appraise the problem as strongly intimidating and withdraw to perform their job and team tasks, reducing their determination, effort and emotional link with the team. This response will further hamper the recognition and exchange of experience- specific information within the team as communication programs turn off and team members struggle to control their own responsibilities and requirements. 332 students from Southwestern College or university participated in the study and were grouped into 83 four-person groups. Teams had to use an integrated, computerized, multi-person Distributed Active Decision-making (DDD) simulation job. The results supported the utilization of the challenge hindrance framework at the team level as well as the central role of transactional ideas of stress. That concern stressors and hindrance stressors induce different kinds of coping. The results also imply that team members' adoption of your collective coping response signifies the team-level techniques root the differential effects of obstacle and hindrance stressors on behavioral, cognitive, and affective final results.

The aforementioned line of investigation supported the study conducted by Umiker (1992) which illustrated that "Those who feel that they are in charge of their careers and their futures, are better in a position to cope with stress. Also that these empowered workers are more productive out to be in charge".

Results of another research shown by Bushe & et al. (1996) authenticate the positive and encouraging affects of staff empowerment which were congregated from increased customer satisfaction and innovation irrespective of occupational grouping. Further he says that stress was reduced when a person did no more have to report to someone daily. When employees are empowered, they take the control over their work gives them an increased sense of fulfillment. The goal of empowered work clubs in Bushe et al. (1996) research was to reduce costs through fewer overheads and increase problem resolution. The organizational results were increased output and efficiencies due to the fact of quicker response rates through empowerment and removal of organizational obstacles. The research also concluded that automation has still left workers virtually on call 24 hours a day and has shortened the turnaround time from job conception to completion. Many staff work ten hours per day and corporate restructuring makes them anxious about their job security. Symptoms of the stressed workers included drops in efficiency, changes in work frame of mind, low morale and increased absenteeism.

Reese (1997) Stress is a mental and health, which have an effect on a person's productivity, success, personal health and quality of work. Job stress's patients go through decreased quality of work life and job satisfaction. The hazardous and costly implications of stress demonstrate the need of strategies to limit stressors within the business. Organizations that not adopt ways of alleviate stress could find their workers looking in other places for better opportunities. The impact of stress from overwork, long hours at work and work intensification has already established a major and often devastating influence on organizations of developed nations. In America job stress together costs American business around $200 billion each year, the united kingdom 63 billion and Australia $15 billion. This is the cost for payment claims, reduced productivity, absenteeism, added medical health insurance costs and immediate medical bills for stress related illnesses. A recent North american Management Association study of 292 member firms unveiled that per capita disability claims have a tendency to increase when positions are taken out. The review, which dealt with layoffs between 1990 and 1995, discovered that the ailments disabled workers searched for treatment for gastrointestinal problems, mental disorders and substance abuse, hypertension and so on were stress related.

Shahu & Gole, (2008) have conducted a report to examine the effect of job stress and job satisfaction on performance. The members for this study were those managers who either currently or previously presented a manager's post at different creation companies. Altogether 100 managers from 15 private processing companies completed assessments. The tools for this research were two different assessments. The first tool is job satisfaction tool (produced by Mishra, R. S. , Tiwari, and Manorama). The second tool is occupational stress index. The scale includes 46 items with 5 different replies. The other tool was a current (2005) performance evaluation that was completed by the executives of the each company. The participants were asked to fill the questionnaire and performance evaluation form. The evaluation was conducted through multiple regression research and ANOVA. Results confirmed that job stress is adversely correlated to performance. He found working conditions and role overload to be major agreed upon stressors in various organizations and business industries and low stressed employees tend to give maximum outcome when compared with high stressed teams. He laid great stress on organizations to get remedies and work in this particular area to be able to improve efficiency.

According to Melissa Bushman (2007) the common factors behind low morale include stress, negativity and gossip within the place of work along with insufficient motivation programs. The projected answers to offer with low morale is increasing worker attitudes and increasing attendance. Stress is the most frequent cause of low employee morale. Numerous factors may improve the stress levels of employees, however the major reason that employees experience stress is their relationship with their supervisor, and it has been proven that highly authoritarian managers will probably cause an increase in degree of absenteeism. Therefore, when absenteeism rates are saturated in a certain team of company, poor worker associations with the administrator or bosses is highly recommended. For this function management training could be used resolve the issue and avoid problems.

Jamal (2005) noticed the partnership of job stress and Type-A patterns routine with employees' personal and organizational benefits in Canada and mainland China. It mentioned that job stress is significantly related to burnout, low morale, health problems, job satisfaction, organizational commitment and turnover motivation. Results also replicated the conclusions that job stress is related to personal and organizational outcomes. The results also indicated that job stress factors such as work overload, ambiguity and issue were significantly related to overall burnout.

The economic facet of job stress was examined by Leontaridi & Ward (2002). They discussed the factors that can have impact on the performance of employees in an economics context by combining all the relevant personal and socio-economic variables while working environment and career conditions were regarded as adding to work-related stress leading to absenteeism, motives of quitting action and turnover. Especially, the nerve-racking impact of occupation, hours of work and workplace relations on staff member with give attention to the labor market costs of stress by estimating the value of work-related stress as a predictor of individuals' quitting behavior and rate of absenteeism. The respondents were from 15 OECD countries. Results see that certain physical and mental job characteristics such as working hours, physical needs of the job, non-pecuniary advantages of the job, and working relations provide an important role that can be played in identifying work-related stress. Females article higher stress levels than men. Stress is significantly increasing with working time, income, educational level, when committed, when managing people, being a trade union member, but lowering for public sector workers for many country groups as well as for men and women while significant research is available that experienced stress levels differ by profession. Those individuals confirming to endure as the very least some stress in their existing position are twenty five percent more likely to hold intentions to give up and have considered periods of absence from work than those without, with the possibility increasing with successively higher job stress.

Bakker, A. B. and et al (2004) explored the relationship between job characteristics, burnout, and performance by using a theoretical model. The main purpose in back of was to research how exhaustion may be related to other scores of performance that integrates the core sizes of burnout and by using adequate measures to capture in-role and extra-role performance. The participants were employees of a number of different sector and job position. A complete of 274 questionnaires were sent out but 146 employees filled out the questionnaire. Than experts performed structural equation modeling (SEM) analyses using the AMOS software package. The results reinforced their hypothesis and exhibited that job demands and job resources start two psychological techniques, which eventually impact organizational benefits. Therefore careers with high demands and limited resources can increase fatigue and detachment among employees that is, burnout.

Khan, M. A. & et al. (2007) looked into the strain and job satisfaction degree of Pharma's at Korangi, Karachi. In addition they investigated the mechanism implemented by the individuals to deal the stress. They analyzed five potential work area stressors (Task Demands, Role Requirements, Interpersonal Demands, Organizational Structure and Organizational Command). The sample was of 93 supervisors from 17 pharmaceutical companies situated in Korangi and other industrial regions of Karachi. All of the respondents completed a questionnaire to provide information about the research concern. They presented the fact that individuals who try to improve their quality of life have high job satisfaction level and have a tendency to be under low stress. They also found that supervisor's job is tougher and cause high level stress. The researcher concluded that pharma industry should redesign the work, enhance the organizational structures and interpersonal demands in order to prevent the stress among employees.

Siu & Cooper (1998) found how locus of control impacts job stress, stopping intentions and job satisfaction. The prospective population for the analysis was employees in Hong Kong professional firms had by different nationals. 170 questionnaires were allocated to employees of several trading organizations. They discovered that there can be many factors behind stress that can also benefit job satisfaction. They further discuss that those who think that the reason behind the problem has gone out of the control, they don't really approve interpersonal connections. Similarly they'll get direct impact from the stressors which may be seen using their outcomes. So we can say inner locus of control helps handle stress. It was also found that folks with low locus of control are mostly dissatisfied with their jobs however, not with their workplace.

CHAPTER 3

PTCL ANALYSIS

With the beginning of Pakistan In 1947 Pakistan's Telecom sector inherited the British Post, Telegraph & Telephone [PTT] Departments with a miniscule base of 7000 telephone lines. For 30 years, this entity lumbered and slumbered using its old mechanised, analog 'Much better" switches and analog mobile phone lines, safeguarded in its monopoly, both local and global. By 1962 this PTT Office was split into the Phone & Telegraph Section and the Postal Departments. By 1991 this was further re-organized thorough the PTC Function 1991 starting this public sector to the private sector companies. We were holding Data Network Services, Paging, and Creation of Small Telephone Exchanges.

PTCL became the company limited (Pakistan Telecommunication Company Small) in 1994 by six million vouchers given exchangeable into 600 million stocks of the PTCL in two independent placements. The par value for every of the talk about was Rs. 10. In mid-1996 these vouchers were changed into PTCL shares.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance shaped the basis for PTCL monopoly over basic telecommunication sector in the united states which paved just how for the founding of an independent regulatory program.

The season 2006-07 in the telecom sector was designated by the exceptional growth in the mobile sector in Pakistan, which doubled its subscriber bottom part to 60 million. The teledensity increased from 26% to 40%, assisting to extend the benefits associated with communication technology across the country. PTCL's cellular phone subsidiary Ufone's subscriber base grew by more than 87%, from 7. 49 million to 14 million. The year also witnessed the entrance of major telecom companies, especially China Telecom and Singtel, into market.

The privatization of the business was completed in the FY06 following the purchaser of 26% 'B' school ordinary shares by Etisalat International Pakistan L. L. C. EIP got over management control on 12th on Apr 2006.

In short PTCL has been working energetically to meet the dual concern of telecom development and socio-economic raise up of the united states. This is characterized by a clearer approval of ongoing telecom circumstance wherein convergence of technology continuously changes the profile of the sector.

A way of measuring this understanding is progressive measures such as establishment of the company's mobile and Internet subsidiaries in 1998. As telecommunication monopolies mind towards an imminent end, services and infrastructure providers are place to face even bigger problems. Pakistan also came into post-monopoly period with deregulation of the telecom sector in January 2003. PTCL is in full awareness of the same, and future procedures include a strong conviction of healthy competition

TECHNICAL AND OPERATIONAL MILE STONES

PTCL is continuously growing by improving its set of networks. Evaluating with the year 2007 PTCL installed capacity (4940154) has increased by 100% digitalization in current year.

Computerized Fault Management System

This feature of PTCL is utilized to boost network & has been used to join up & repair land series defects in a computerized way. Before, this system was working only in few metropolitan areas but now it is accessible all around the Pakistan.

Launch Of IN Platform

To expand the capability and generate extra value added services PTCL launched a new Intelligent Network (IN) System in October 2003. The main good thing about this feature is that they have higher capacity for prepaid calling cards and provision for benefits of new services.

Optical Fibre Junction Gain access to Network

To further contain the launch of new latest services the optical fiber junction gain access to network has been around the stage of implementation. This system further provides supports the future future project of PTCL WLL (line less local loop), Large Music group Services & IPTV.

Products and Services

PTCL is within a perfect position to redefine the traditional boundaries of the telecommunication industry and is shifting the production boundary to new heights. Due to increase in technology and technology millions of men and women demand instantaneous access to services and ideas. PTCL is likely to be first of all choice for its customers in the forthcoming years as well, equally as it's been over in the last past six decades.

PTCL is retaining and boosting its customers' satisfaction by providing them with impressive features and services which include proper network coverage, better performance, validity, dependability & security at their respective locations. It is providing services to two types of clients including customer as well as corporate services.

For clear and timely communication the first choice of big business circles is PTCL telephone for not only local but also nationwide and international getting in touch with. In today's world businesses can have 10-100 lines with up to date services to meet the needs and requirements of customers. Now, customers get variety of services like call-forwarding, Call Barring, Caller-ID and call-waiting, to mention a few. Other business related services include Digital Phone Facilities with Adjustment Charges, 0900-Preminum rate services, UAN, Virtual Private Network (VPN), Digital Combination Connect (DXX), ISDN (Policy), Teleplus (ISDN/BRI), 0800-Toll free quantity, Audio Discussion Service, UIN.

Carriers Services

As carriers-carrier, PTCL provides all type of carrier services, starting from telehousing and inter-connects to a range of DPLC and IPLC connection. It provides the key central infrastructure services to the LDIs, payphone providers, Local Loop operators, cellular, mobile and call centers. Its interconnect services are given from exchange locations of 3200 that hook up carriers systems domestically. Allowing you to connect internationally it offers IPLC bandwidths through its four different international gateways.

Broadband Pakistan:

The greatest and the speediest growing Broadband service in Pakistan is PTCL Broadband. The company initiated to open up a broadband culture in Pakistan by creating this service in the market. It is because almost a year or two back there is hardly any responsiveness and consciousness in the united states about broadband & broadband internet products and services. This broadband technology was made affordable to customers by minimizing the barriers to entry and also by taking and offering the service within the reach of public across Pakistan by continuous improvements and advancements in customer care for the service.

IPTV Service (Smart Television set)

Using its Broadband network, PTCL inserted the press sector on 14th August 2008, by successfully introducing an electronic interactive television service for the first time. Utilizing the IPTV (Internet Standard protocol Television set) technology, PTCL earned the list of a few countries throughout the world that offers this kind of interactive Television set service to its users.

V-fone

PTCL also continues to be the largest CDMA operator in Pakistan with around 1. 25 million V-fone customers. It offers fixed wireless telephone for both homes & business. The system is already allowed for Voice, Dialup-Internet gain access to (153. 6kbps) and EVDO Broadband.

PTCL Landline

Since the deregulation of the telecom sector, a big number of foreign investors chosen licenses in LL, LDI and cellular operations, discovering Pakistan as an appearing market. Investors moved into the marketplace forcefully in the cellular segment, introducing heated competition for PTCL. In this example PTCL's counter technique for landline service, during the year 2007-08 was directed to increase ARPU, acquire new readers and contain churn.

Being well aware of the challenges submit by other mobile companies, PTCL shifted from its standard duration based mostly charging system to value structured options, like 'Pakistan Offer' that offered 5, 000 minutes for on-net nationwide telephone calls at Rs. 199/month. PTCL also launched 'International Plus' offer to facilitate affordable international cell phone calls at unmatchable rates alongside offering Tone of voice messaging and Phone n World wide web services, adding more value to the landline service. To improve customers' base, 'order on phone' was released, allowing customer to use for a fresh connection by simply getting in touch with 0800-80800. To deal with the churn, PTCL founded an outbound call center to attain out to customers with an objective to attain higher level of brand commitment.

Ufone

(Pakistan Telecom Mobile Ltd) a wholly managed subsidiary of PTCL commenced its functions on 29th January 2001 as a GSM 900 company. Because the outset, it has expanded its coverage and customer foundation at an instant pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now regarded as one of the very most active, intense and impressive players in the mobile sector of Pakistan. Ufone managed to improve its earnings and operating profit by 35% and 47% respectively, when compared with the last year through aggressive insurance policies and exercising rigorous control over expenses.

Consumer Services

Corporate Services

PSTN (Open public Switch Mobile phone Network)

UAN (General Access Quantity-111)

PTCL Calling Cards

DPLC (Domestic Private Leased Circuit)

V Fone

Audio Conference

IPTV (Ptcl Smart Tv set)

UIN (General Internet Quantity-131)

Voice email Service (VMS)

IP Connect

Broadband

V-Connect

Kehdo SMS

VPN (Virtual Private Network)

Evo Wi-fi Brodband

Co -locations

Business DSL

Payphones

ISDN BRI (Integrated Services Digital Network Basic Rate Interface

International IP services

DXX Connectivity

Premium Rate Service (0900)

ISDN PRI Integrated Services Digital Network Main Rate Interface

Call Centers

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