Purpose of this study is to evaluate the overall performance of the public and private telecom organizations in Pakistan in the year 2010 on the bases of selected key performance indicators and their manipulation under a valid hypothesis. This study is exploratory and descriptive nature that correlates the selected general key performance indicators which must be taken into account by all telecom companies of Pakistan. For the purposeful study we selected each two telecom companies of Pakistan; PTCL and NTC (public telecom industries of Pakistan), and MOBILINK and WARID (private telecom companies of Pakistan).
There are five key performance indicators are selected for the study that are directly affect and influence the telecom organizational performance, namely coverage, quality, availability, customer satisfaction and frequency of usage. These Key performance indicators tested against a valid hypothesis. As the study is exploratory this is conducted in the Islamabad region which explores the performance level of telecom industry in Pakistan. Customer attraction is an important factor that determines the performance of the industry.
We formulate a questionnaire (see Annexure-1) for general survey surveys to assess performance of telecom industry in Pakistan. We conducted statistical analysis (Co-relation analysis) and descriptive analysis to obtain research findings on a random sample data of 110 telecom customers. Analysis of the data is done by applying nonparametric statistics through S. P. S. S 17. The key conclusion is based upon descriptive and inferential statistical analysis indicated that there is a significant impact on the performance of public and private telecom organizations in Pakistan.
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Key Words:Telecom industry performance, coverage, quality, availability, customer satisfaction and frequency of usage Societies are facilitated by businesses executed by the organizations appropriate to the diverse and mixed needs and want of goods and services that always exist in the societies, in contrast whether the organizations are private or public seek out monetary gains for their owners from the societies 1(Bessey B. Esu, Benjamin J. Inyang, April 2009) except non-for-profit organizations which are not comes in the scope of this study.
In this study performance of private and public Telecommunication Organizations in Pakistan are evaluated and approximated reasons for their success and failures to meet their objectives or purpose of their existence which depends upon number of factors. The key factors indicate strategies formulated by individual private and public telecommunication organizations in Pakistan to achieve their targets, maintain their task level and later on improving performance. 2. PROBLEM STATEMENT
Purposefully it is to be worthwhile to argue what, when and where something incorrect due to ineffective and inefficient structured management performance system apart from whether the organization is owned by government or private sector. 3. OBJECTIVES OF THE STUDY This paper is consequently endeavored to find out the ways to improve the performance of both private and public telecommunication organizations in Pakistan to facilitate their customers in different regions of Pakistan.
The necessary information is formulated through the feedback and data collected from the set of questionnaire distributed in each two private and public telecommunication organizations in Islamabad. The questionnaire is based upon extensive local and international literature review concentrating upon the following key performance indicators: 1. Coverage 2. Quality 3. Availability 4. Customer Satisfaction 5. Usage 4. LITERATURE REVIEW: Key Performance Indicators (KPIs) or Key Success Indicators (KSIs) helps an organization to define and measure the progress toward organizational goals.
The Essay on Organizations Performance
An organization’s performance is vital for their success and it is important that all employees are on board with making sure the performance is of high quality. It differs from other evaluations within the company because the performance evaluation “focuses on the organization as the primary unit of analysis” (Evaluating the Performance of an Organization, 2012). Within an organization’s ...
Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. Key Performance Indicators are those measurements (F. John Rey, 2009; Salma Y. M. Mahmoud, 2001; Albert P C Chan, 2004; RF Cox, 2003).
Key Performance Indicators are quantifiable measurements. They vary organization to organization. Whatever Key Performance Indicators are selected, they must reflect the organization’s goals, and they must be a key to success and quantifiable measurable (Simon Betham, 2004).
telecommunication industry around the globe is facing significant challenges from competition, technological revamps at very short frequencies and never-ending customer demand (Kala Seetharam Sridhar, Telecommunications Infrastructure and Economic Growth: Evidence from Developing Countries, Applied Econometrics and International Development, Vol 7, No 2, 2007).
Telecommunication industry is no longer technology centric these days, instead of that it revolves more around customer relationship, Customer satisfaction and marketing intelligence with innovative promotional schemes and advanced technology are the drivers of business.
Also, cutthroat competition and mammoth investments in the telecom industry churn away profit margins and make intelligent decision making critical (Pekko Vehvilainen*, Kimmo Hatonen**, and Pekka Kumpulainen*, data mining in quality analysis of digital mobile telecommunications network, XVII IMEKO World Congress, Metrology in the 3rd Millennium, June 22 ? 27, 2003, Dubrovnik, Croatia).
In Pakistan the cellular companies are expanding their business very quickly more than that of the PTCL. According to the PTA’s annual report for the year 2009-10 the Total teledensity of country has reached 64. 8 percent in FY 2009-10 with 3. 5 % YoY growth, while the Cellular teledensity reached 60. 4 percent with 11 percent YoY growth rate (PTA’s Annual Report for year 2009-10).
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Following the international trend the fixed line teledensity in Pakistan has also been on decline since last couple of years and stands at 3. 68% at the end of financial year 2009-10. There are a total of 6. 08 million local loop subscribers (PTA’s Annual Report for year 2009-10).
Network coverage of almost 90 percent of the total population has made the cellular industry even more attractive to get the foreign investment.
But there is still margin of growth in this industry. In 2003-04 the industry was offering 400,068 direct and indirect employment which in 2006-07 went to more than double that was 1,366, 698 employment opportunities. An intense competition is seen at the telecom sector and all the companies are trying to take edge at each other which is ultimately benefiting the subscribers as they are getting the advance and new packages at low rates (All the figures quoted have been taken from the PTA’s site: www. pta. gov. pk).
PTCL enjoys high profits because it enjoys monopoly as a single provider of the fixed telephony in the country.
Comparison with other telecoms in the developing countries shows that it is not due to the efficiency of PTCL that is showing good financial results and paying dividends. In the last couple of years the impact of deregulation and increase in competition in telecommunication industry in Pakistan has been increasingly felt by PTCL (PTCL-Performance review and recommendation, Babar Bahtti, April 29).
In recent days the focus of the organization is shifting to customer satisfaction and increase in profit. Performance Management, Planning and forecasting are taking an increasingly more central role.
Forecasting and planning is a specialism and a widely embracing field. Whenever financial executives prepare a budget, plan a strategy or set business goals, they rely on a forecast. (Mario Bunge, Theory and Decision, Volume 3, 1973).
Forecasting is the process by which companies ponder and prepare for the future. It involves predicting the future outcome of various business decisions (Melissa Bushman, 2007).
5. THEORETICAL FRAMEWORK The suggested research objectives and subsequent questions, listed at the beginning of this research paper, require the use of different data sources and research methods.
The Term Paper on Analysis of Pakistan Industry
Ans. Pakistan economy is growing steadily. This growth demands higher energy utilization and accordingly putting high pressure on countries economy. Pakistan mainly depends upon oil and gas resources to fulfill energy necessities. Native resources of Oil are not enough to put out energy thirst of the growing economy. As a result Pakistan has to import large quantity of oil and oil based products ...
Thus the research is expected to employ various methods particular to each facet of the research problem. The research is expected to be done in various stages determined by the achievement of the predefined objectives. The work for this research will include the following methodologies; The above mentioned key performance indicators are defined in the light of study and patterns of questions asked by the users of specified telecom service providers. The definitions of the various predefined performance indicators are as follows: Coverage Coverage is one of the important indicator to which performance of the telecom companies depends.
It includes the availability of the services in the various regions within Pakistan by which a great number of populations benefited. It also includes the easy access of customers to various services offered by the telecom companies. Quality Quality is another indicator that affects the customers in terms of call charges. Telecom customers also prefer fast call time setup and network free from traffic congestion. Availability Telecom customers prefer those telecom service providers which are providing continuous services 24-7. Also easy recharging facilities and high speed internet services attracts the customers.
Customer Satisfaction The telecom customers satisfied from the telecom services when the service providers pay quick attention upon their complaints, offering economical packages and minimum chances of call drops. Usage Usage of telecom services by the customers largely depends upon the above mentioned indicators. If the service provider satisfied its customers then the average call length by the customers may exceed for more than one minute. Similarly customers preferred calls rather SMS and become loyal to the telecom service provider. 6. SCHEMATIC DIAGRAM [pic] . METHODOLOGY Following are the data collection method, sample, and instruments used to evaluate the performance of the telecom industry of Pakistan. Data Collection Method A self designed and administered questionnaire is used for the collection of data to reduce expenses and to obtain instant response in shortest possible time. Sample The sample of the study comprises of 110 users of Pakistan telecom industry within Islamabad region. A total of 110 questionnaires were disseminated and the response rate is100%, which is sufficient for data analysis. 8. HYPOTHESIS
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Following are the hypotheses are devices for the purpose of study. H0:Performance of Pakistan telecom industry is satisfactory H1:Performance of Pakistan telecom industry is not satisfactory 9. DATA ANALYSIS SPSS 17 is employed for the analysis of data. Main characteristics of the sample are represented by obtaining frequencies and percentages. Maximum, minimum, means, standard deviations, and inter-correlations of the main variables were also calculated. 10. CONCLUSION Coverage The performance of telecom industry in Pakistan including public and private telecom service providers are evaluated (Annexure 2-4).
In this exploratory descriptive study it is found that, the telecom services are not available throughout Pakistan and most of the population is not facilitated to obtain telecom services in this modern world. But wherever the telecom services are available the customers have an opportunity of easy access to their customer services. Quality Quality refers to the quality of services provided by the telecom industries to the citizens of Pakistan, from this extensive study it is concluded that the telecom service providers in Pakistan usually do not intimate call charges after each call except few telecom service providers.
