1 AIT Asian Institute of Technology

Behavioral aspects of privatization in telecommunications industry : a case study of Pakistan Telecommunications Company Ltd.

AuthorButt, Mohammad Farhan
Call NumberAIT RSPR no.SM-97-61
Subject(s)Telecommunication--Pakistan
Privatization--Pakistan

NoteA research submitted in partial fulfillment of the requirements for the degree of Master of Business Administration.
PublisherAsian Institute of Technology
Series StatementResearch studies project report ; no. SM-97-61
AbstractPakistan Telecommunications Company Ltd. is owned by the Government of Pakistan and it is responsible for providing fixed line telecommunication services in the country. This company is the sole provider of the fixed line telephone service all through out the country. The company suffers from all the ailments of a typical third world country bureaucracy. The government has been attempting to privatize the company with the strategy of selling the management operations and majority shares to an international service operator. So far, the GoP has been unsuccessful in attracting such an investor. One of the reasons of this inability of the GoP is the number of its employees working in PTC. The company has more than fifty thousand people registered on its payroll. PTC is grossly over-staffed. Their importance cannot be underestimated as they are the people who make up this organization. How will these people react to the changes in their work environment? What will be their response towards the developments that are likely to occur once the government ownership has been replaced by private ownership? This is a first attempt to explore this area of PTC. Until now no effort has been made either by the GoP or any of the interested companies or groups to analyze the behavioral patterns that exist within the organization. The organizational architecture of PTC is made up of a complex web of social and cultural work groups. It's architecture includes the formal structural hierarchy and the design of the practices that have developed over a period of time into organizational system. Understanding this inter-linking of factors is important for bringing about change in PTC. Despite all its inefficiencies and problems, PTC is one the highest revenue earners for the GoP. However, the management of the company is paid a salary on flat rates with the result that the managers have no incentive to make an effort and work harder. The salary structure must be designed along incentive based and performance evaluation methods. A wide gap exists between the duties performed by the managers and the areas in which they specialize academically. There is an urgent need to help these individuals get formal training of management and it's related fields. The management staff category that belongs to the group who are not placed very highly in the hierarchy of the company but are advanced in their age, are not ve1y qualified and are not willing to retrain or relocate. Such stereo-typical managers have to be re-adjusted by the company by offering them more incentives to go into partial retirement in near future. A majority of the individuals at the middle level management feel that they have been left out of the privatization process of the company. A system must be developed by the company to 'share all possible information with its employees.
Year1997
Corresponding Series Added EntryAsian Institute of Technology. Research studies project report ; no. SM-97-61
TypeResearch Study Project Report (RSPR)
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Bechter, Clemens;
Examination Committee(s)Quang, Truong;Tang, John C. S.;
DegreeResearch Studies Project Report (M.B.A.) - Asian Institute of Technology, 1997


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