MBA INTERNSHIP REPORT
PAK ELEKTRON LIMITED (PEL)
Specialization: Human Resource Management
Presented to:
Chairman
Department of Business Administration Submitted by:
Name: Muhammad Fahim Ashraf
Roll #: T520867 Registration #: 06-PKR-0043
Mailing Address: S.O. Section, Punjab Assembly, The Mall, Lahore.
Contact #: 0321-6576724, 042-9200322
(Department of Business Administration)
ACKNOWLEDGEMENT
All thanks and praises to be Allah, who is the only source of knowledge and wisdom bestowed to mankind. The researchers seek peace from Prophet Muhammad (PBUH), who has always a hope and source of knowledge for humanity.
First of all I admit a receipt of all those who inspire and support me in a strengthened and groomed way, what I am today. I wish to place on record my indebtness to my parents for their continuous support and encouragement which I received during my academic career. I would like to express my gratitude to those people who pray for my success and help me throughout in study.
I thank to my tutor Muhammad Azeem who always being with me and provide me the academic, Islamic and moral lessons during my MBA study.
I am great and much obliged to Mr. Waqar Khadim (Head HR Department) who supported me in a very nice and sophisticated manner. I must say thanks also to HR Recruitment and Selection team, Performance Management team, Training & Development team and Industrial Relations team who guided me to share my theoretical concepts with practical training.
LIST OF CONTENTS
Sr. No.
TOPIC
Page No.
1
Introduction
1
2 Overview of the organization 2
3 Vision Statement / Mission Statement 5
4 Organizational Structure 6
5 HR Structure 6
6 PEL HR vision and mission 7
7 HR Planning and Forecasting 11
8 Recruitment 19
9 Selection 26
10 Training and development 34
11 Training need assessment (TNA) 37
12 Employee Development 38
13 Performance Management 43
14 Employee Compensation and Benefits 53 15 Organizational career Management 63
16 Labour Management Relations 68
17 Critical analysis of theoretical concept relating to practical
experience 70
18 Conclusions 72
19 Recommendations 74
20 References and Sources 77
OBJECTIVES OF STUDYING THE ORGANIZATION
• To analyze my HR concepts practically in a well esteemed organization like PEL and compare it with other organizations
• To review the functional hierarchy of the PEL and its Human Resource Management Department
• Analysis of HR Mission / Vision / Strategy/ Objectives and diverse function of HR Department
• To look into the special assignment carried out by HR team like advancement in Recruitment and Selection process, Performance Management process, Training & Development process and Compensation Benefits of the PEL.
• To conduct strength, weaknesses, opportunities and Threats (SWOT) analysis of HR Department policies
• To put the suggestions and recommendations for further improvements of HRM initiatives
INTRODUCTION
SAIGOL GROUP PROFILE
In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited. The Saigols set up the first major textile unit - The Kohinoor Textile Mills under the umbrella of Kohinoor Industries Limited. Currently Saigol Group consists on the following companies:
• Kohinoor Textile Mills
• Pak Elektron Limited (PEL) • Saritow Spinning Mills
• Azam Textile Mills
• Kohinoor Power Company Limited • Kohinoor Energy Limited
PAK ELEKTRON LIMITED (PEL)
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited. Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programmes. At that juncture, the company was only manufacturing transformers and
switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing.
OVERVIEW OF THE ORGANIZATION
PEL has spread its business in all over the Pakistan by its display centers for electric and electronics goods. Basically the company has divided its goods in two following divisions:
A. Appliances Division B. Power Division
A. APPLIANCES DIVISION
This Division of PEL consists of appliances manufacturing.
Air Conditioners
Window-type air conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With the shift of users preference from window type to split type air conditioners, PEL has started manufacturing split type air conditioners.
PEL Refrigerators
demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by SGS Switzerland.
PEL Deep Freezers
PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Because of durability and high quality, PEL deep freezers are the preferred choice of companies like Unilever.
B. POWER DIVISION
PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods are manufactured under strict quality control and in accordance with international standards.
PEL is one of the major electrical equipment suppliers to Water and Power Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the largest power utilities in Pakistan.
Over the years, PEL electrical equipment has been used in numerous power projects of national importance within Pakistan. PEL has the privilege of getting its equipment approved and certified by well-reputed international consultants such as:
Preece, Cardew and Rider, England
Harza Engineering Company, USA
Snam Progeti, Italy
Miner & Miner International Inc. USA
Ensa, France
In spite of stiff competition from emerging local and multinational brands, PEL Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products.
OFFICES LOCATION
REGISTERED OFFICE 17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore. Tel: 042-5718274-5, 5717364-5 Fax: 042-5715105 E-mail: [email protected] WORKS 14Km, Ferozepur Road, Lahore Tel: 042-5811951-7 (7 Lines) Website: www.pel.com.pk ISLAMABAD Room # 1404, 14th Floor Green Trust Tower, Blue Area Tel: 051-2273858
Fax: 042-2273858
KARACHI Kohinoor Building 25-West Wharf Road Tel: 021-2200951-4 Fax: 021-2310330
CHINA
910, No. 1007, Zhong Shan Naun Er Road
AFGHANISTAN
Flat # 103, 1st Floor, Block A Qaiser Market, Kolola, Pushta,
Shanghai, china Tel: 86-21-64567533 Fax: 86-21-54109971
Kabul
VISION STATEMENT
“To excel in providing engineering goods and
services through continuous improvement.”
MISSION STATEMENT
• To provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources.
• To focus on personal development of our employees to meet future challenges.
• To promotes good governance, corporate values and a safe working environment with a strong sense of social responsibility
HUMAN RESOURCE MANAGEMENT PROCESS IN THE
ORGANIZATION
The Human Resource Department at PEL is engaged in the areas of Recruitment & Selection, Training & Development, Performance Management, and Organizational Development, and strives to align these functions with overall Business Strategy. This organization place great emphasis on People Development so that people and the organization perform at maximum capacity in a highly effective manner.
HR Vision
To achieve the Excellence through innovative HR Practices and continuously exceeding our people expectations.
HR Mission
Our Mission is two-fold:
• To manage Talent and build capabilities of our people thus enabling them to deliver Sustained Performance
• To facilitate them in creating a Collaborative Work Environment that development that develops a culture of continuous learning
Definition of Planning
“A process that involves defining the organization's goals, establishing an overall strategy for achieving those goals, and developing a
comprehensive set of plans to integrate and coordinate organizational work.”
HUMAN RESOURCE MANAGEMENT PROCESS IN PEL
Activities necessary for staffing the organization and sustaining high employees performance.
Human Resource Planning (HRP)
“An effort to anticipate future business and environmental demands on an organization and to provide qualified people to fulfill that business and satisfy those demands; HRP includes talent inventories, human resource forecasts, action plans, and control and evaluation”
Planning is done to achieve the objectives positively according to vision and mission statement of the organization with time management. We can also say that HRP is parallels to general business planning. It is a process by which managers ensure that they have the right numbers and kinds of people in the rights places, and at the right times, who are capable of effectively and efficiently performing assigned tasks.
PEL Planning and Forecasting basis on Fiscal Year
In PEL planning is done on the basis of fiscal year. Firstly, the Budget is prepared in HR Department by each Manger of each section (Recruitment & Selection, Training & Development, Performance Management and Organizational Development) of HR and after that Head HR make the finalize the budget for the approval of owner via Managing Director.
In PEL Human Resource Planning is done on the basis of Objectives or we can say in PEL management by Objectives (MBOs).
Management by Objectives (MBOs)
A management system in which specific performance goals are jointly determined by employees and their managers, progress toward accomplishing those goals is periodically
reviewed, and rewards are allocated on the basis of this progress.
PEL Planning Year 2008-2009
Planning of this organization basis on MBOs. Some of the main objectives of HR planning which have been targeted in last year planning are as follows:
Enhancement of RMS (Recruitment Management System)
PEL has it own RMS which is used for hiring process and it is also used as a internal source of recruitment. Now the objectives of Recruitment and selection is completion of listing within RMS(listing module), contact information / consultant information, system generated alerts, system generated correspondence and letters and reference check, generating the pool of 20,000 resumes, (target: 5000 resume in each quarter) etc. (Annexure-I).
Personal Development
Third main objective of PEL R&S department is to implementation of productivity tools and techniques, personality assessments, improving communication skills, job analysis techniques, implementing stress management and time management and techniques.
Recruitment Cost
Every organization want to reduce the cost and enhance/ maximize profit so for the same purpose PEL is doing calculation of recruitment cost/other ratios related to R&S (Research) and implementation.
RMS Self service Module
Another objective of PEL is the implementation of online short listing and Interview scheduling, alerts & proactive notifications to HOD / GM, interview evaluations and testing & implementation
HUMAN RESOURCE MANAGEMENT PROCESS
The relationship of job analysis to HRP
PEL has the total strength of 5,000 employees and its strength increased in season upto 6,000. In job analysis, HR Department analyze each department with the help of head of department that employees are working at their competencies level further at related or non-related positions. If the employees are at low competencies for that position they are trained so that they can be share their maximum skills for that position. Like, by identifying the behavioural requirement of a positions in a section, HR department said that total six employees are required in that section, in which, first is at manager level, and second an assistant manager level and remaining four are at executive level as well as the qualification and experience for that position holders. We can say that this planning is human resource planning at short time period.
It has severance 50 employees on 19 September, 2008 for the right size of the organization by doing the job analyses. More understanding that to meet the challenges of the modern age, PEL hire new employees from different universities and some experienced and senior employees will hired form market in 2009. Their competencies will enhance the business opportunities.
Types Of Plans
There are three main types of planning which are as follows: 1. Strategic
2. Tactical
1.
Strategic Planning Hunan Resource Planning
An approach to human resource management that has the goal using people most wisely with respect to the strategic needs of the organization, ensuring that people from all levels of the organization are working to implement the strategy of the business effectively. This type of planning relates to long-range process of setting organizational objectives and deciding on action programs to achieve those objectives. This strategy effects also by the forecasts of economics; technology and market; and planning of organization; investment and operations. As PEL is opening five new display centers for home appliances (Air Conditioner of Window type and Split type and deep Freezer) and for power industry (energy meters, transformers, switchgears, Kiosks, compact stations, shunt capacitor banks etc.) distribution in different city of Pakistan in summer 2009. For these new centers 30 people in number will be recruited and their skills will at managerial level, executive level and fresh graduates also. With opening five new display centers how much budget and number of manpower will be required by keeping in mind changing in industry or creating tomorrow for that most important points are:
Philosophy: In home appliances industry it will make a contribution that people will get these appliances the same requirements which they required at economical prices.
Formulating identity of statement, purpose and objectives: According to mission statement of PEL display centers are have the same mission to providing electric goods and services by getting the customer satisfaction and maximum returns to all stakeholder with optimal uses.
Evaluating strengths, weaknesses, and competitive dynamics: In appliances division Strength of the PEL is that it is providing the same capacity and power appliances as compare to its competitors (WAVES & DAWLANCE) and have low prices also. Similarly in power division major competitors are Simens (Pakistan), Climax limited, Elmetec, Alstom Pakistan, Escorts Pakistan Limited. These strengths meet the needs of middle level people as well as elite
and its brands are at growing level. Overall world crises will also affect the import and local purchase of raw material. Changing in demographics and the future composition of the workforce.
Determining design: In head office all components have completed in January 2009 and plans are at the end of the stage in January 2009. Each display center is connected with other center to coordinate with one another. In case of any deal, sale (credit sales), shortage of supply and transportation they can coordinate with one another under company rules.
Developing strategies: Objective of the organization is measured in terms of quality as well as quantity. To enhance the sales of the organization PEL is going to enhance the sales and to increase the value of share in market.
Devising programs: Regional Manger will visit the area to locate the best place in the city and understanding the nature, capacity (purchasing power) of people and will make a requisition which will include the procurement, sales, I.T. HR, marketing and other related management matters. National Sales Manger, Director General Marketing, Head HR and concerned authority is included in all management and budget will approved by the GM Finance. Head HR will plan the number of people required at what level etc with prescribed time period i.e. January 2009.
2.
Tactical Planning
This second type of planning relates to normal, ongoing growth of current operations or with specific problems that temporarily disrupt the pace of normal growth. Annual budgeting decisions provide specific timetables, allocations of resources and implementations standards. The shorter the planning time frame, the more specific the planning details compulsory.
3.
Human Resources Planning
PEL HR department plans parallel to the business plans. Like according to the business strategies of PEL that 30 candidates are required for new display center. For hiring new candidates in respective of internal sources, first of all HR department will see its Recruitment Management System (RMS) i.e. internal pool of qualified candidates on its
Human Resource Management System (HRMS) (Annexure-G & H). Secondly, mostly used approach in PEL is employees referrals. After that third approach is that HR department move to external sources i.e. supply of fresh technical graduates and business graduates (requirement of the PEL). After that all the implication for the candidates that includes staffing, training and development, performance evaluation, compensation practices, and other management matters. This short run (tactically) planning leads to long run (strategic) needs. PEL has a general view that several interrelated activities that together make up an integrated HRP system that includes:
The relationship of Human Resource to Strategic, Tactical or Operational and Annual Budget Planning:
As mentioned above that strategic planning perspective is the long-rang planning (2 to 5 years). In PEL plans are made on the basis of strategic planning and relates with HRP. The main focal point is to analyze the issues like assessing the management implication of future business needs, factors assessing external to the PEL (e.g. demographic and social) and estimating the internal supply of the employees over the long run. In this strategy detailed programmed are not made.
Business Planning Process Human Resource Planning Process Strategic Planning: Long-Range Perspective Corporate Philosophy Environmental Scan Strengths and constraints Objectives and Goals
Strategies Operational Planning: Middle-Range Perspective Planned Programs Resources Required Organizational Strategies Plans for entry into
new business, acquisitions divestitures Budgeting: Annual Perspective Budgets Unit, individual performance goals Program Scheduling and assignment Monitoring and control of results Issue Analysis Business Needs External Factors Internal Supply analysis Forecasting Requirement Staffing Levels Staffing Mix (Qualitative) Organization and job design Available/Projected Action Plan Staffing Authorizations Recruitment Promotions and transfers Organizational changes
Tactical Operational planning relates with HRP as forecasting of employees and employee demand. The next step after the process of forecasting is actions plan undertaken.
Annual budgeting decision provide specific timetables, allocations of resources, and standards for implementing strategic, and operational plans. As the time frame shortens,
planning details become increasingly specific.
HR PROCESS ALSO INCLUDES:
The general view suggested several specific, interrelated activities that together constitute an HRP system, they include:
a) Talent Inventory
b) Human Resources Forecast c) Actions plans
d) Control and evaluation
(a) TALENT INVENTORY: Human Resource Information System (HRIS) of PEL helps to collect the talent inventory in all over the organization. Talent inventory is attention on accessing the current human resources (skills, abilities and potential) and attention to analyze how they are currently being used so that actual HR forecasting is composed on record. It contains the record of all employees including managerial and non-managerial.
HRIS contains all the competencies of the employees which include:-• Current position information
• Previous position in the company
• Other significant work experience (e.g. other companies) • Education (including degrees, licenses, certifications) • Languages skills and relevant international experience
• Training and development programmes attended • Community or industry leadership responsibilities • Current and past performance appraisal data • Disciplinary actions
• Awards received
So against the HRP of the PEL HRIS provide the talented inventory also.
(b) FORECASTING HR REQUIREMENTS The human resource planning activity that predicts future human resource requirements, including the number of workers needed, the number expected to be available, the skills mix required, and
the internal versusu external labour supply.
In PEL forecasting is done on the basis of one year planning instead of employees turnover ratio. How much employees in the organization will remain and after how much new employees to be hired/recruited by HR department.
In fact, this organization is managing all the HR related issues with respect to objective of the organization and the hiring new people on the basis on requisition form received from any department. It has a small focus on predicting the future HR requirements (the number of characteristics, the skills mix required, internal versus external labour supply). Less focusing on long term needs i.e. strategic planning.
METHODS TO FORECAST HR NEEDS
There are two main methods to forecasting the HR Needs which are as follows:-
The most common approach for new hiring and recruiting employees is forecasting internal human resource supply. Cruuent employees of PEL reflect the future supply of employees/labour. Performance Management Development (PMD) Section of HR department is working for internal human resource supply of management level and Industrial Relations & Administration (IR&A) Section is forecasting for non-management employees (labour also). The process for developing such a plan including setting a planning horizon, identifying replacement candidates for each key position, assessing current performance and readiness for promotion, identifying career development needs, and identifying the career goals of individuals with company goals, the overall objectives, of course, is to ensure the availability, of competent executive talent in the future or, in some cases, immediately, as when a key executive dies suddenly. All this process is played in action by the PMD Section with the compliance of the Recruitment and Selection (R&S) Section.
Current Strength: Talented inventory for forecasting internal human resource supply is provided by the plans of PMD Section (executive level) and IR&A (lower than executive level) also maintain the corporate level planning of the PEL.
Loss Coverage: Under this method of forecasting losses are made up of resignations, dismissals, transfers, and retirements and these losses are assessed by historical data, modified by the current and future trends. Retirements figures are based on a review of individual retirement rages. PEL make the succession plans by cutting cost of this loss. Feedback: It is determined by PMD Section by two ways:
(1) As a part of the annual appraisal
process, mangers identify those employees who are considered promotable with the next 1 years planning cycle; and
(2) In a separate annual process, mangers identify high-potential individuals who have the ability to progress to two responsibility level higher – in more than one function—during 4 year forecasting. By forecasting the specific position requirements are the specific knowledge and skills, for the said purpose PEL make the individual careers as well as for the development of its career also.
Naturally, PEL required electrical graduates, business graduates and labour. So the distribution of the work depends upon the pre-described criteria. PMD and R&S section (PEL HR department) give the second preference to this approach of forecasting. But recruiting and hiring new employees is virtually essential for PEL as well as all the firms at least over the long run. In case of loss of internal supply of HR forecasting external supply helps also. R&S section further make HR supply in case of expansion of operations to normal workforce attrition.
(iii)- Forecasting HR Demand
In PEL, HR department (PMD and R&S Section) also have keep in mind forecasting HR demand as well as supply. It depends on changes in technology; consumer attitudes and patterns of buying behavior; local, national and international economics; number, size and types of contracts won or lost; and government regulations that might open new markets or close of old ones, just to name a few. Consequently, forecasts of HR demand are often more subjective than quantitative, although in practice a combination of two is often used.
This forecasting is done by experts (Managers) who estimate the level of future demand for human resources. PEL select expert managers form corporate level planners like Head HR, National Sales Manger, DG Marketing and GM Procurement etc.
Matching Forecast Results to Action Plan
Action plans: PEL is doing its best efforts to complete the project with prescribed time period and to enlarge the pool of qualified candidates by such action plans like R&S section for recruitment, selection, and transfer; and PMD section for promotion, placement and development; T&D section for training and development; whereas IR&A for all labour issues and compensation also. Training programmes are designed to enhance the individual employee competencies as well as for group employees. The competent employees in PEL also train the other colleagues competencies by given the special assignments under reporting officer.
Control and Evaluation of HRP System
The last and most important step which provides the feedback on the overall effectiveness of the HRP system is done by monitoring the degree of attained HR objectives. Feedback works as a backbone of the HR system. The main purpose of this step is to guide the HRP activities, identifying deviations from plans and causes of those deviations. PMS section monitors the performance under the performance evaluation tenure (quarterly). Quantitative objective maker the control an evaluation process more objective and measure deviations from desired performance more specifically.
EMPLOYEE RECRUITMENT AND SELECTION IN PEL Recruitment
“The process of locating, identifying, and attracting capable applicants.”
Decruitment
“Techniques for reducing the labour supply within an organization.”
PEL EMPLOYMENT POLICY
PEL recruit and staff the organization with competent, trained and motivated individuals. Selection is done on merit and capacity to perform the duties and accept the responsibilities of the job.
Equal employment Opportunities
PEL provides equal employment opportunity for all applicants and employees. It maintain a policy of selecting, analyzing, training, training compensating and advancing employees on the basis of ability, education, training, performance and experience with regard to race, color, religion, sex or age.
Employee conduct or conservation, whether intentional or unintentional, that result in verbal or physical harassment, abuse or intimidation against any person on the basis of race, sex sexual, orientation, age or disability is unacceptable. Inappropriate remarks and jokes based on these or other personal characteristics are particularly offensive and unacceptable. Such conduct will result in disciplinary action up to and including discharge.
Grievance Resolution
PEL has an “OPEN DOOR” policy. The objective is to build and promote an open, productive working relationship between employees, supervisors and management where their opinions and may be expressed openly, without fear of ridicule or reprisal.
There is a time when an employee has a problem the needs to be resolved- PEL expects employees to the first take the matter directly with their immediate supervisor. If the problem is not handled or resolved at that level, the problem or complaints is forwarded to the Human Resources Department who listens to the problems and attempts to work out a satisfactory.
However, on certain occasions when it is imperative to employees to directly take up the problem to the Managing Director due to the nature of the problems then he can do the same.
EMPLOYEE RECRUITMENT
PEL recruitment system is centralized on HR department which look after all recruitment activities and provides coordination to other departments in this regard.
Designation Cadre Wise (Management Level)
M6: MD M5: GM & Director M4: Sr. Manager M2-M3: Manager M1: Assistant Manager E1: Sr. Executive E2-E3: Executive JE: Junior Executive
Job Analysis:
“An Assessment that defines jobs and the behaviors necessary to perform them.”
Head of department do the analysis of the section as well as his/her subordinates. He knows very well where gap for proper or completer working is. To fulfill the requirements of his section objective which lead to company objectives as well company mission statement and vision statement, he fulfills the Man-Power Requisition Form.
Types of Vacancies
There are two main types of vacancies in PEL which are as follows: •New Vacancy
•Replacement (Existing position) Man Power Requisition Form
A requisition is approved Man-Power Requisition Form (MRF) in PEL and it is a formal document that authorizes the HR department to initiate recruitment process for the filling of all requests for professional employees, permanent or temporary, the vacant positions.
Section Incharge who required candidate or candidates for a position, either based on new vacancy or replacement for productivity of the work, will fill the company requisition form. This form contains all the information about the criteria of the required position such as number of position, title of position, grade, education, experience, age etc. Now this form is sent to HOD/GM of the concerned department for and HOD/GM will forward this form to HR Department (Annexure-D).
Requisition Form Submitted to HR Department
In HR Department Manager Recruitment and Selection (Manager R & S) do the analysis of the required position criteria mentioned on requisition form. Now this
form will be forwarded for approval to concerned authority. If the position Grade is Junior Executive to Executive 1 (JE - E1) then that position is approved by Head HR. If the position is for a Manager (M1 to M5) then that position is approved by the Managing Director (MD). After the approval of vacancy or vacancies, requisition form is marked to Manager (R & S). Now he will start to search the candidate.
Source for Vacancies filling
Manager (R & S) is using two main sources for filling of the candidate which are as follow:
a) Internal Source b) External Source
a) INTERNAL SOURCE • Employee Referrals
Employee referrals mean current employees provide names of potential employees in exchange for a referral fee. In PEL, mostly recruitment is on basis of employees referrals but they do not pay fee to employees on their willing.
• Internal Hiring (RMS software of PEL)
PEL has its own software for Hiring named as Recruitment Management System (RMS). It contained about 20,000 resumes of all sectors related to company (Annexure-I).
b) EXTERNAL SOURCE
Firstly, HR department do its best efforts to recruit employees through internal source because the cost is saved in this source otherwise PEL HR is using the following external sources for recruitment.
• Colleges/Universities
Fresh graduates of Engineering Line are hired from University of Engineering, Taxila and Lahore, Ghulam Ishaq Khand (GIK). But most of the students are hired from UET Taxila.
For Management Line, students are hired from National University (NU-FAST), Lahore University of Management Science (LUMS), Institute of Business Administration (IBA), University of the Punjab (PU), Quaid-e-Azam University, Islamic University, Islamabad.
Internee: The second way to hire the fresh Graduates/Master degree holder students from universities is Internee. During the internship, students are assigned special assignments; if the students qualify the assignments successfully they are also offered for job.
• Advertisement in Print Media
Print Media is also used in PEL for Hiring through external sources. Ads are given in "Daily Jang", "Daily Dawn" newspapers and also at international newspaper like "Khalige Times". (Annexure - B & C).
• Company Web Site
New vacancies are also uploaded on web site of the PEL (www.pel.com.pk\career). So third way to fill the position is the company web site.
• Employment Agencies
PEL is hiring the employees through employment agencies. It prepare the job description and job specification according to their required candidate and forward to recruitment agencies. The main responsibility of the recruitment agency is to hire the candidate for PEL and the next all working responsibility depend on PEL. The agency demand about one month salary of the candidate for payment.
Sorting received Resumes/Applications
After the closing date of the submission of resumes/applications, R & S section Executives will sort the resumes on the basis of mentioned Criteria for Job description and Job Specification in Man Power Requisition form. (Qualification, Experience, Specified working experience).
Job Description: A written statement of what a jobholders does, how it is done, and why it is done.
Job Specification: A statement of the minimum qualifications that a person must possess to perform a given job successfully.
(Annexure-J).
Whenever executives prepared the sorting list of qualified candidates the list is given to Manager R & S.
Sorted List of Candidates forwarded to HOD/GM
Manager R & S will forward the sorted list of candidates to concerned HOD/GM. He/she will recommend the candidates and HR department will calls to sorted candidates.
Telephonically Interview
An experienced person is selected in such type of interview. It about taking the views of the candidate and he is finalized by the same process which is described below after the recommendations of the interview panel. Manager (R & S), HR department is conducting the telephonically interview in PEL. First of all the profile description is described by candidate after that Manager asked the relevant questions of his job and he calls him/her for further interview/salary fixation etc.
Call for Interview/Test to short listed candidates
Test:
Fresh candidates enter in PEL through a standard test which includes: • Mathematics
• English Grammar • General Knowledge • Current Affairs
• Related Filed Questions
In some exceptional cases like experienced candidates are not examined by test, they are selected by interview for same post.
SELECTION PROCESS
The process of screening job applicants to ensure that the most appropriate candidates and hired.
Criteria for selection:
Candidates are selected of the basis of Job Description and Job Specification. Interview Detailed Form
This form is just like a Resume/C.V. of candidate which contained personal profile, qualification, Salary information, major assignment and achievements, computer proficiency, Personal career vision, inspirations, personal S.W.O.T. and personal life etc.
Initial Interview by Manager R& S
On the said date and time the candidates will come for interview in HR Department then HR department will give him Interview Detailed form.
JE to E1: First interview is conducted by the Manager (R & S) with HR representative (not below the ranked of the Assistant Manager) and concerned
HOD. At the end of interview it is decided that the candidate has recommended for selection or he/she is recalled for a nominated panel interview.
M1 and above: the above motioned interview process (JE to E1) is same for M1 and above cadre (Excluding Test). Initial is conducted by the concerned GM /HOD, Head HR Department and Manager (R & S). The interview evaluation form is same.
In some exceptional cases (An Aptitude Test) can be conducted by the candidate.
Interview Evaluation Form
PEL is conducting a very good approach to evaluate the candidates through a written criteria (IEF) form and this form (Annexure-E & F) is filled by the HR Representative in that Interviewer which includes like name of candidate and position applied for and
others:-• Personal Traits Observation: At the time of the interview the candidate is observed in personal traits like:
Appearance Observable traits Skills
Competencies
• Salary and Benefits: It include the questions related to experience of candidate such as;
Last salary drawn Expected salary Joining Date
• Rating: The evaluation is done on the basis of rating in a numerical form like; 1 = Poor 2 = Satisfactory 3 = Good 4 = Very Good 5 = Excellent
The most important points are also kept in mind which
is:- Recommendation for candidates: Additional Comments
Final Approval
Recommended Salary and Grade
DISC Analysis:
DISC is probably the most widely used behavioral profiling system in the world. In this guide, we explore the history and workings of the DISC technique, and look at some of the ways that it can be make a significant difference to the way you deal with people. In PEL the candidate is analyzed on the basis of DISC that the selected candidate will stay, if remain, for how much time, or not.
D = Dominance I = Influence S = Steadiness C = Compliance
Panel Interview
Successful candidates in initial interview are called for the next interview on basis of merit list which is called nominated panel interview. Only the recommended candidates by the first interviewer or short listed candidates are called for the nominated panel interview.
JE to E1: After the initial interview the Manager (R & S) and concerned HOD will recommend to GM / Head HR and Manager (R & S) panel for selection or he/she is recalled for a final interview.
M1 and above: After the initial interview by the GM / Head HR / Manager (R & S) will recommend to MD/ Director for selection or he/she is recalled for a final interview.
If the candidate is finalized in all aspects of the interview he is finalized at same time otherwise he is recommended for the final interview.
Final Interview
JE to E1: If the candidate is not finalized in all aspects of the interview in panel interview, he is finalized in this interview. After the nominated panel interview the Head HR /Manager (R & S) and concerned HOD will take final decision for confirmation or rejection of the candidate.
M1 and above: If the candidate is not finalized in all aspects of the interview in panel interview, he is finalized in this interview. After the nominated panel interview the Head HR will recommend to MD / Directors and 2/3 GMs for final selection or rejection of the candidate. Interviewee called from outstation is paid by bus/rail return fare.
Reference Checking
After the confirmation of the employees the candidate can also be checked by his/her given reference in C.V. so that his behavior, attitudes and habits can be accessed. The best way to analyse the on-the-job employee candidate is that ask the last organizations about his employment history and his SWOT analysis questions.
Confirmation of Candidates
JE to E1: At this level of candidate is confirmation or rejection of the candidate for employment is done by Head HR and GM.
M1 and Above: At this level of candidate is confirmation or rejection of the candidate for employment is done by MD/ CEO.
Salary Fixation:
-Head of HR Department in consultation with the concerned General Manager / -Head of Department will determine the salary of new inductee. Following factors may be kept in mind while determining the
salary:-• Qualification • Experience • Grade
• Existing salary structure of the company / Department Job Offer Letter
On the final recommendation of HR Department, the candidates are offered a standardized and confidentional offer letter for the selected which includes the followings:
• Position Title • Grade
• Probation/training for the period of 3/6 months • Name of Reporting Manager
• Policies & Procedures
• Provident fund as per Company Policy This letter is valid for 3 days offer letter.
Acceptance of Job
The candidates will give the acceptance of the agreement and his period of employment start and his/her probationary period as well as for confirmed employment.
Medical Examination
The selected candidate after the acceptance is examined by the doctor of the PEL for a successful future with them. After the positive report the candidate will continue his/her service or is rejected, if he/she is on negative report. The candidate is rejected because at the initial stage as well as continuously will does the loss of the company.
Employment Form
Profile of the employee is recorded on the employment form which is normally mention in his Resume.
Letter of Appointment
The most important rules and regulation of the company is mentioned same as in letter of appointment like:
• Position Title • Grade
• Probation/training for the period of 3/6 months • Name of Reporting Manager
• Policies & Procedures
• Provident fund as per Company Policy JOB DESCRIPTION
With the issuance of letter appointment, a proper letter is issued by Recruitment & Selection Section of HR department which includes the job title, grade/level, department, reporting officer, location, working condition, and level of authority. All the duties and responsibilities are headed by the said section. This letter also includes the job specification (Annexure- D).
Joining Report:
On acceptance of the offer letter Job Description and Job Specification the candidate will give the joining report in writing.
Orientation
Introduction of a new employee to his or her job and the HR Policies of the organization. Concerned Manager explain about the Job Description and introduce with department. It includes the orientation of the unit of the PEL which is introduced by HR representative.
Probation Period for Executive/Senior Executives Positions:
-For employees up to Executive level the probationary period shall be 3 months with one-month notice period for separation. But the probationary period of trainee for management level i.e. Management Trainee Officer (MTO) and Trainee Engineer (T1/T2) is for 6 months.
Probation Period for Managerial Staff:
-For Management cadre the probationary period are 6 months with 3 months notice period for separation.
Employee Probation Report:
-In order to make assessment of the new entrants, HR Department shall initiate Employee Probation Report, this report shall be sent under confidential cover to respective GM/Head of the Department, for assessment and views. The same is returned to HR Department for issuance of confirmation letter as endorsed by the GM/Head of Department.
Trainee Salary
The salary of trainee is mentioned only as Basic salary in their software and he/she is not entitled to gain any benefits of the organization.
Extension in Probation Period:
-Normally the probation period is not extended, however, in some cases it may be considered. If the probationary period is extended of any trainee he will received the same basic salary and no any other benefits by the company.
Confirmation/Termination
A letter is issued by HR which titled as “CONFIRMATION” after that the employee will get all the benefits of the organization. i.e.
• Basic Salary
• House Rent Allowance • Utilities
• Conveyance Allowance • Special Pay
This letter is also contained his cadre, designation, salary amount and provident fund contribution declaration.
Group Life Insurance (Metropolitan Company)
Whenever the employee is declared as permanent, on the same day, his insurance day is start and his name is forwarded to Metropolitan Company in the list of insured Group employees of the PEL.
Human Resource Management System (HRMS).
All the activities of the Human Resource Department is recorded and in PEL on their on Human Resource Management System (HRMS).
TRAINING AND DEVELOPMENT
Training
Planned programs designed to improve performance at the individual, group, and/or organizational levels.
Development
The managerial function of preserving and enhancing employees competence in their jobs through improving their knowledge,
skills abilities, and other characteristics
Training and development Phase of Training
The phase whose purpose is to design the environment in which to achieve the objectives defined in the assessment phase by choosing methods and techniques and by delivering them in a supportive environment based on sound principles of learning.
There is proper working in PEL HR department named as Training and Development (T & D) Section headed by Assistant Manager (T&D) with assistance of 3 executive level employees. During my internship I observed that PEL has two types of employees, one is at management level (JE to M6) and second is technical staff (S1 to NG). The source of training is performance evaluation report of employees in which reporting officer has mentioned that his subordinates required training or not.
1. Align learning with business
After assessing the TNA form, type of programme is finalized and his/her learning programme is aligned with business objectives. Such as Sales Forecasting programme is aligned to enhance the business of PEL automatically.
2. Integrate learning with HR and other business processes
During my internship, I observed that the Sales Forecasting programme was integrated with business objectives that sales will increase the profit of PEL and it will also increase its share value in market. Similarly the HR vision will vision will meet its expectation like excellence people through innovative HR practices. People become talented and their competencies increased through training.
3. Create a learning culture
This learning programme (Sales Forecasting) was arranged in Auditorium of PEL. They set the mind of the employees that learning is activity will also be favourable in their own career. Employees are given certificate after the completion of training
programme which build his/her career. So the employees automatically take interest in learning.
4. Provide appropriate learning options
In case of appropriate learning, PEL is offering only two options. One is in its factory position and other outside the organization. Other option is off-the-job training programme which also make the future of the employees independently to PEL.
5. Manage learning effectively
An agenda is finalized in which time period is mentioned and implementation is made accurately. During the training programme practical study case, business games and critical incidents etc. are given as assignments and their weighted is added in final marks. So the employees focus on their Grade on Certificate.
6. Support application of skills in workplace
During the training programmes employees are purely focused on its implementation on workplace. The result of the training programme outcome with at least 6 months. Application of training programme fully support the work.
Training Design, Implementation Methods and Evaluation
On the recommendation of the reporting officer training programmes are designed and Design of the programmes according to the level of employees and budget for training. Training programmes have also different methods for implementation. According to designed programmes and budget aspects trainers are hired and internal section do the planning. Most of the groups training is given in the Auditorium of PEL and individual training are given through external sources like LUMS, UMT and foreign countries. The best method is used for training for best learning of employees. Training channels used in PEL are Presentations of computer slides, audio visual and latest equipment and technology for technical staff.
After the completion of the training employees are Evaluated through Evaluation form and normally training results outcome after 6 months at least.
TRAINING NEED ASSESSMENT (TNA)
To assess the employees that what type of training employees need. In PEL, T&D section has a from to asses the employees for training needs called Training Need Assessment (TNA) form e.g. form of Communication Skills (Annexure-G). After TNA forms collection T&D section adjust the employees either for on-the-job or off-the-job training. TNA form contain competencies of the employees like knowledge, skills (technical also), values, attributes and communication skills.
Types of Training
The following 16 main types of On-the-job Training adjust all the employees in PEL because these training programmes lead to mission and vision statement of the PEL. (Annexure-L)
• HR Skills for Line Manager • Leadership
• Total Quality Management Communication Skills • Strategy Making
• Problem Solving / Decision Making Skills • Communication Skills
• Financial Skills
• Supply Chain Management
• Building managerial Competencies • Lean Manufacturing
• Sales forecasting
• Time / Stress Management • Team Building
• Negotiation Skills
• MS- Advance Level
EMPLOYEES DEVELOPMENT
The major techniques are using in PEL to develop employees are given below:
(A) Techniques for Individual Development
(B) Techniques for Group Development
(A) TECHNIQUES FOR INDIVIDUAL DEVELOPMENT
1) Job Analysis and Description: PM section of PEL HR department do assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an organization.
Job Analysis Components
PEL is focusing on following two major components which defines as:
• Job description
A written statement of what a job holder does, how it is done, and why it is done
Tasks, duties and responsibilities that the job entails.
• Job specification
• A statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully
Knowledge, skills, and abilities required of the job
holder
2) Test and examinations: After given the training for the management development of the individual development trainer take the test by written test of the employees mean that by adopting this simple method is to write a narrative description and employee’s
strengths, weaknesses, past performance potential, and suggestions for improvement. The written essay requires no completes forms or extensive training to complete special test are
Aptitude
Intelligence Ability
interest test batteries
3) Questionnaires: During and after training impel PEL trainer also ask questions which is also a good techniques for the development of management. The fist type provides a list of times to ticked, alternative answers to be selected, and blanks to be filled in. it could also have a scaled structure or require “yes/no” responses. The second type offers an opportunity to give a more complete and comprehensive picture of a situation.
4) Interviewing: In PEL as well as in all the organization in the world this technique is used for the development of the management and different purpose and many different ways. This purpose is to get information may concern
Events Work results Knowledge behavior Attitudes Opinions values Habits Perceptions
5) Observation: This Company has also solution of the development problems apparent only through systematic care observations is done which help for development. Observing a regular management meeting, watching a Supervisor/Manger/HOD dealing with people or problems, or observing manager full time.
6) Critical Incidents: PEL also developing its employees individually by critical incidents, it is defined as:
“Evaluating the behaviors that are key in making the difference between executing a job effectively and executing it in ineffectively.”
For the management development a Supervisor/Manger/HOD see critical incidents by which the evaluator attention on the behaviors that are key in main the difference between executing a job effectively and executing it ineffectively. That is, the appraiser writes down anecdotes that describe what the employees did not vaguely defined personality traits. A list of critical incidents provides a rich set of examples from which the employee can be shown the behaviors that are desirable and those that call for improvement.
7) The Diary Method : In this company Supervisor/Manger/HOD also record the activities over given period of time, selectively or be confined to events regarded as critical incidents can be done by diary method. So this approach is also a good development technique to achieve the objectives of PEL.
8) Management by Objectives (MBO):
Basically in PEL employees are evaluated by how well they accomplish a specific set of targeted/assigned objectives to be critical in the successful completion of their jobs.
9) Self Assessment:
This is a method in PEL by the order of HR department for self-assessment through which an individual will save his/her career by availing the opportunity to test present skills in an environment where he/she fails. So it helps to develop existing skills.
10) Career Planning:
Where the Supervisor/Manger/HOD of the PEL, compulsory to described objectives; there he has to also described the performance, behavior, competence and training need or the individuals for career planning.
11) Action Learning: In real life experiential learner is using real-life experiences to change behavior or attitudes, also uses element of action learn learning. However, when describing experiential learning we have in mind not a set of techniques or a type of program but a broad concept of utilizing real-life experience to learning. Action learning comprises a set of logically interconnected activities that are structured specifically of achieving personal learning and organization change.
12)
Training from abroad:
In PEL Employees are also trained by international training seminars, session and institutions in respect of off-the-job training. Only GM level (M4) employees go to abroad for training to remain in-touch with latest technologies and according to the requirements of the organization. All the expenses are compensated by the PEL. In October, 2008 Mr. Waqar Khadim, Head HR went to abroad to attend the International HR Seminar in Germany for 10 days.
(B) TECHNIQUES FOR GROUP DEVELOPMENT
After the sorting and analysis of TNA forms most of the employees fall in the same category training. So T&D section design the group plans for development of the employees which are as follows:
1) Group Meetings
An evaluation method that places employee into a particular classification, such as quartiles meeting in PEL . It requires the evaluator to place employees into a particular classification, such as top one-fifth or second one-fifth.
2) Group Projects: During on-the-job training in PEL groups are assigned a project like to opening a new unit for sale. Then SWOT analysis of the unit. Such a group projects serve a wide range of company objectives. In PEL two tend to prevail (i) a temporary group is established on a part-time basis, with the agreement and support of senior a management, (ii) a group is established with the combined objective of working on a practical problems and of learning specific skills in the course of this process.
4) Business Games
A situational test in which candidates play themselves, not an assigned role, and are evaluated within a group.
During my internship, I observed that trainer from UMT trainer the employees by the same practice. Firstly a group of 30 employees stand in an unshaped form not in proper circle and they catch the ball to each other. After 5 minutes trainer make a group of only 15 employees and they catch ball each other. In last, a group of only 5 boys stand in a circle shape and said to catch the ball in a circle shape also. Trainer drew the result if the employees work according to plan and direction they will have a clear objective and will get their target with prescribed time period. So this approach also develops the employees in management.
5) The case Method
During the training of sales forecasting program, I observed that employees were assigned a case to enhance their sales by doing the SWOT analysis that how they forecast their sales with competitors. This method stimulates and synthetic work involved in preparing and proposing solution to business problems.
PERFORMANCE MANAGEMENT
Performance Management System
“A process of establishing performance standards and evaluating performance in order to arrive at objectives human resources decisions as well as to provide
PEL Company makes the personnel movement to place employees in positions where their effectiveness is best utilized within the organization. This is achieved thorough proper matching of skills, capabilities individual aspirations of current employees against the current and potential manpower needs of the organization.
Internal Advancement / Promotion
PEL encourages internal advancement for advancement for employees. Seniority is not necessarily a factor in promotions. The ability to perform required duties well is the main consideration.
Regular performance evaluation
PEL holds regularly scheduled performance evaluation. The first evaluation takes place in 3 months after an employee’s start dated to give the employees a feel for who things are going early enough to make any necessary adjustment. If the evaluation goes well the employees is awarded regularly full time status. The next evaluation takes place one year after the employee’s start date and annually after that. Possible salary adjustments are considered at every annual performance evaluation.
PERFORMANCE REPORTS WRITING STYLE
In PEL performance report are written online in PMDP. Online forms are filled in its internal website and finally rating is done on the basis of competencies.
Performance Management & Development Process (PMDP) in PEL
Online forms are filled in PEL. They have their own internal online system which includes the following characteristics like: Performance reports include the following important particulars like:
General Information of Employee: It includes the profile of the employee, appraisal status last year and name, ID, designation, cadre, section, education, joining date, previous experience, last promotion (Last/ No. of promotion).
SETTING PERFORMANCE STANDARDS AND EXPECTATION
All the companies have different standard for performance appraisal. In PEL, Performance Standards are set on the basis of numerical rating form e.g.
4 = Outstanding 3 = Very Good
2 = Good
1 = Need Improvement
Perromance reports writing include all competencies of the employee mentioned below are filled by the Reporting Officer of the employee and forwarded to Manager (Performance Management and Development) in HR Department. 1. Leading & Developing - Collaboration
Executives Work or act jointly with others and establish a high level of motivation commitment and productivity among them.
Managers
Work or act jointly with others and provide supportive environment by securing necessary resources and removing blocks to effective working. Helps individuals think through issues for themselves.
2. Change Management
Executives
Implementation of change initiatives. Supports innovation and creativity and able to face challenges. Remains flexible to meet constantly changing and sometimes opposing demands.
Managers Plans and implements change initiatives. Supports innovation and creativity by encouraging staff to accept and resolve challenges. Remains flexible to meet constantly changing and sometimes opposing demands.
3. Work Coordination
Executives Follows instructions through a standard work process; performs routine tasks; checks work for accuracy before completion of tasks
subordinates and empowers them to perform. Manages his own annual leaves (enjoys time out).
Managers
Able to assign responsibilities according to the capabilities of individual subordinates and empowers them to perform. Manages his own annual leaves (enjoys time out). Encourages/organizes leave plan for his/her subordinates and department.
5. Team work
Executives Involve others in own area and ideas. Keeps others informed. Utilizes team member's skills. Helping the team members for enhancing their skills.
Managers Involve others in own area and ideas. Keeps others informed. Utilizes team member's skills. Helping the team members for enhancing their skills.
6. Strategic Thinking
Executives Give the suggestion for strategies.
Managers Anticipates needs, forecast conditions and plans keeping the overall business strategy importance in mind.
7. Planning & Organizing
Executives Plans ahead and demonstrates good organizing skills. Managers Plans ahead and demonstrates good organizing skills.
8. Communication
Executives Able to clearly communicate with others verbally and in written form. Good in developing the relation with others.
Managers Able to clearly communicate with others verbally and in written form. Good in developing the relation with others.
9. Negotiation
Executives Exchange views and proposals with an eye to reach agreement by sifting possibilities, proposals and pros & cons.
Managers Exchange views and proposals with an eye to reach agreement by sifting possibilities, proposals and pros & cons.
10. Initiative & Efforts
Executives Able to come up with ideas to improve business and work practices where opportunity arises.
11. Self Learning
Executives Manages self to learn new things at work place and away from it. Managers Manages self to learn new things at work place and away from it.
