The paper evaluates the impact of changing HR practices over employee’s productivity and performance in Pakistan Telecommunication Company Limited (PTCL). From being a pure government department to being a company being run on corporate lines and eventually being privatized has made it an interesting entity for study for students and researchers in the field of Human Resource Management. Foremost, the threat or the fear of being deprived of the job has been the primary reason why employees in abundance left the organization as a result of Voluntary Separation Scheme or resigned. Employees are subjected to a continuous stress as a result of repeated strikes and the attitude of the management towards the employees. Management has not been able to win the heart of the people. Training, no doubt has improved a lot, so has the recruitment, becoming faster and marketoriented. But compensation has not improved. Employees are paid less than their counter-parts in government contrary to prior privatization. Mode of Performance Appraisal has been changed by introducing the concept of Online Performance Appraisal, linking the promotions and increments to the cores earned by employees. This has made employees unhappy with that. Career-growth has also suffered because employees have not been promoted for the last many years despite expanding company workforce and business.To create a healthy relationship with employees, management needs to work on better compensation package and a policy for promotion of employees.
Keywords: HR Practices, Recruitment and Selection, Compensation, Career Growth, Privatization.