Privatization is an important part of structural reform programs including both developed and developing world. The privatization of Pakistan Telecommunication Company Limited (PTCL) an important telecom player in Pakistan was also a part of reform. The research studies before and after privatization condition of organizational performance in case of PTCL. Organizational performance measured in terms of profitability, retention rate, compensation and benefits, numbers of subscribers and environmental changes. To increase efficiency and create healthy competition among competitors were main objectives of privatization. In 2006, Government of Pakistan privatized PTCL to Dubai Based company Etisalat 26% shares with management control. Instrumental perspective has been used as theoretical evidence. It explains that structure of an organization is being designed in accord with means-ends evaluations. However we find that bureaucratic structure is still followed in PTCL after privatization. After privatization overall profit of the company has decreased in each consecutive year Retention rate is also not pleasing, before privatization it was good enough. Numbers of subscribers are decreasing in land lines but in Broad Band and Evolution (EVO) Wireless customers are increasing. Compensation and benefits for the employees have little improved after privatization but mostly permanent employees are on same scales. Organizational environment has positively affected such as information technology (IT) advancement, product expansions, customer oriented culture etc. Human Resource Department has now gained strategic importance in the organization. Before privatization it was under administrative branch. Union is weak now and has to follow the decisions of management of the company for its survival after privatization. Privatization enhances the organizational performance if it is implemented in its original form. For example in case of PTCL Etisalat accepted the demands of workers in 2008 but later on detached from it. According to workers there was an agreement between Government of Pakistan (GOP) and Etisalat for workers jobs and benefits before the privatization in the year 2005. Moreover Etisalat did not purchase all shares according to the deal. Etisalat is still liable of Rs. 80,000,000 to GOP. This research suggests that to improve organizational performance, first of all to retain the employees in the company it is needed to establish attractive salaries packages and give autonomy to employees in decision making that will increase motivational level and satisfaction of the workers. Keywords: Privatization, Pakistan Telecommunication Company Limited (PTCL), organizational performance, profitability, retention rate, compensation and benefits, environmental changes, numbers of subscribers, instrumental perspective, Government of Pakistan (GOP), Etisalat

TITLE - Before and After Effects of Privatization on Organizational Performance: A Case Study of Pakistan Telecommunication Company Limited ( PTCL)
AUTHOR - Adeeba Naz
••••••IJSER Edition - December 2015

UNIVERSITY - University of the Punjab, Quaid-e-Azam Campus, Lahore, Pakistan
GUIDE NAME -
Lecturer Ms. Saba Yaseen
Dr. Prof. Nasira Jabeen
Dr. Prof. Sarwar M. Azhar