A comparative study of compensation in CTI Islamabad and PTCL

Abstract

This project undertakes the study of compensation element of Human Resource Management in two IT organizations of Pakistan , namely, CTI and PTCL. The main instrument used in this research is a questionnaire. It aims at finding out how the employees perceive the compensation they receive and how satisfied and dedicated they think they are. The population in this research consists of all the employees [excluding top management] . In case of CTI, the sample was a random sample. In the case ofPTCL, random sampling did not seem feasible because the organization is very large. A cluster from PTCL was selected on the basis of convenience. Five sources were used to collect data: office records of the Companies, unstructured interviews, a specially prepared questionnaire , publications ofCTI and PTCL, the web sites of the companies, and the internet. The employees in the two organizations were compared with respect to Education, Experience, Pay, Health Care, House Rent, Contributory Provident Fund, and Bonuses. The comparison yielded the following results: On the whole the educational qualifications of CTI employees are higher than those in PTCL. For example, no employee in CTI is below Matric. Employees who possess academic or professional degrees are relatively less satisfied with compensation than those who possess lower qualifications. The average length of experience in both sets of employees is not significantly different. Employees with over 8years of experience are more satisfied than those with less experience. The number of pay scales in CTI is smaller than the number of pay scales in PTCL. The employees in both the institutions give high importance to pay scales. On the whole pay scales in CTI are better than pay scales in PTCL. The two organizations provide equally good health care and this is a benefit that very few organizations offer to their employees. The employees in both the organizations consider health care very satisfying and to be a great motivating force, There is a small difference between the organizational shares in the C P Fund. The CTI is more liberal. But employees in both the organizations are unhappy about the size of the share. The house rent allowed by the two organizations is different but neither the employees in CTI nor in PTCL are satisfied with it. In each case they think the rent paid by the organization is insufficient . CTI employees receive bonus as explained in an earlier section. The employees in PTCL too want to get bonus that has never been given to them. On the whole the CTI employees are more satisfied than employees in PTCL. Recommendations have been made to improve productivity in the organizations under study. Motivation is very important. Both monetary and non monetary measures should be adopted to motivate the employees . Emphasis should be laid on training, supervision and discipline in order to increase productivity .