Acknowledgement

We have the pearl of our eyes to admire blessing of the compassionate and
omnipotent because the words are bound, knowledge is limited and time is short to
express His dignity. It is one of the infinite blessings of almighty ALLAH that He
bestowed us with potential and ability to complete this report and make a material
.contribution towards the deep oceans of knowledge

First we avail this opportunity to bow our head before ALLAH almighty in humility
.who given us the wisdom and perseverance for completing this piece of report

We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We
feel highly privilege to ascribe the most and ever burning flame of my gratitude and
deep scene of devotion to the Prof. Mehroo Humayun who taught us “Human
Resource Management” with heart and also gave a guideline to this report. It would
be an honor for us to thank Mr.Nadeem Anjum, Human Resource Manager of Nishat
Mills LTD and Mr.Khalid Mahmood Chohan Company Secretary for their nice
.and cooperative behavior
 Table of Contents
.Serial No Topics Pages
1 Chairman Message 3
2 Company Profile 4
3 Introduction 5
4 Mission & Vision Statement 6
5 Organizational Structure 7
6 Nishat textile 8-9
7 HUMAN RESOURCE MANAGEMENT 10-11
8 HR In Nishat; Classification 12-13
Recruitment Process 15
Job Analysis 15
Selection Process 19
Training and Development 23
Retention and Motivation 25
9 Performance Appraisal 26
10 Retrenchement 26
11 Questionnaire for HR Manager 27-28
12 Questionnaire for Employees 29-30
13 Result of Employees Interviews 31-32
14 interview 33
15 Criticism 34
16 Recommendations 35
17 Appendix

Chairman's Message
We continue to strive to be a better group today than what we were yesterday, for our
clients, for our shareholders, for our investors, for the environment, for the
community and for our employees, for it is with them that we have achieved what we
have. It is with them that we will continue to surpass our past achievements.

Mian Mohammad Mansha

(Board of Directors: Mrs. Naz Mansha (Chief Executive

Mian Raza Mansha
Mian Hassan Mansha
(Mr.Muhammad Nawaz Tishna (NIT
Mr. Faisal Ehsan Elahi
(Mr. Khalid Qadeer Qureshi (Chief Financial Officer
Mr. Muhammad Azam
Rana Muhammad Mushtaq

Company Secretary: Mr. Khalid Mahmood chohan

,Mills: Nishatabad, Faisalabad (Spinning, Processing

(Stitching Units
(K.M. Faisalabad Road (Weaving unit -12
.Sheikhupura

(K.M Feroezpur Road, LHR (Stitching unit -21

& K.M Nishat Avenue (Weaving, Dyeing 5

(Off 22 K.M Ferozepur Road, Finishing Unit
.Lahore

(K.M Sheikhupura Faisalabad (Spinning unit 20

Road, Ferozewatwan

,Registered Office & Nishat House

Shares Department 53-A, Lawrence Road, Lahore
Tel: 042-6367812-16
Fax: 042-6367414

.Head Office 7-Main Gulberg, Lahore

Tel: 042-5716351-9
Fax: 042-5716349-50
E-mail: nishat@nishatmills.com
Website: www.nishatmills.com

,Liaison Office 1st Floor, Karachi Chambers

.Hasrat Mohani Road, Karachi
Tel: 021-2414721-23
Fax: 021-2412936

Nishat Group
Nishat is playing a significant role in the private sector by adding value to cotton and
the cotton based economy, Nishat Group ranks among the top five business houses in
Pakistan in terms of sales and assts

Nishat has grown from a cotton export house into the premier business group of
Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles,
Cement, Banking and Power Generation. Today, Nishat is considered to be at par with
multinationals operating locally in terms of its quality products and management
.skills

Annual turnover 17 billion Rupees •

Billion from textiles 14 •
Earn foreign exchange US $ 236 million •
Taxes and levi of 2,080 million Rupees annually •

Nishat Mills Limited

Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern,

which was converted into private Limited company in 1959. In 1961, the company
.went public and was listed on the Karachi Stock Exchange

Flagship Company established in 1951

Most Modern, Biggest Composite unit of Pakistan •
Professional and Client Oriented Marketing •
Green Company •
Employees 9000 •
ISO 9001 and IKO-TEX100 Certified •
.SA 8000 Certification currently in process •

NML started out as a weaving unit with 500 semi-automatic looms. Later on 10,000
spindles were added, laying the foundation of nation's biggest textile composite
project. NML today, has 177,000 spindles, 284 Sulzer shuttle-less looms and 244
TSUDAKOMA air jet looms. The company's production facilities comprise of
.spinning weaving, processing, stitching and power generation

All together NML has 17 Manufacturing units, each specializing in a specific product
rang. The spinning Division produces 120 Tons of yarn per day in a product range
from Ne 3 to Ne 120 using different cotton sources like Supima, Egyptian Giza and
.Australian

Nishat Sectors
Textile-1
Cement-2
Banking-3
Power Generation-4

NISHAT
TEXTILES
Processing

An ISO 9001 certified unit, which is one of the largest

and most modern processing facilities of Pakistan. With
an array of custom-made machinery, it has the capacity
to produce 3 million meters of fabric /month. To ensure
that our customers get the very best we use more than
75% dyes and chemicals that are of European origin. To
maintain quality and international standards, an on-line
Quality department has been setup. The QC department
has the backing of a fully equipped Laboratory, which
.scrutinizes the fabric process flow at all levels

Spinning
NML spinning is operationally organized into eight
spinning units, each with a distinctive product range and
capacity to keep a check on the quality standards. Every
cone undergoes inspection before packing to ensure that
.our buyer gets only the best out of the lot

Spinning production capacity for both Cotton and

Blended
Yarns in 130 Tons / Day

Weaving
:Operationally divided into

:NML Faisalabad

Machinery: 188 Sulzer Ruti Looms

Capacity: Approximate 2.1 Million Meters per
Month.

This Unit has been producing top quality fabrics for export as well as for the
consumption of our own processing unit. Awarded with ISO-9002 Certification, the
.facility is highly regarded for the production standards and quality controls

:NML Sheikhupura

NML Sheikhupura is one of the most advanced units in the country equipped with
state-of-the-art machinery and it is also awarded with ISO 9002 Certification. Future
Programs for the Unit include the purchase of Jacquard Looms, which will add to the
.variety of product range that Nishat is offering to its customers

Stitching
With an array of 500 modern new generation machines,
the stitching department has an average capacity to
process up to 1.3 million meters of fabric per month.
The product line is customized to manufacture products
of various styles and sizes according to the requirements
of our customers, wholesalers, retailers and contract
.textile business

Mission Statement
"To provide quality products to customers and explore new
markets to promote/expand sales of the company through good
governance and foster a sound and dynamic team, so as to
achieve optimum prices of products of the company for
sustainable and equitable growth and prosperity of the
company."

Vision Statement
"To transform the company into a modern and dynamic yarn,
cloth and processed cloth and finished product manufacturing
company with highly professionals and fully equipped to play a
meaningful role on sustainable basis in the economy of
Pakistan."

"To Transform the company into a modern and dynamic power

generating company with highly professionals and fully
equipped to play a meaningful role on sustainable basis in the
economy of Pakistan.”

Organizational Structure
Human Resource and Management
Introduction
The policies and practices involved in carrying out the “
“People” or Human Resource aspects of a management
position, including recruiting, screening, training, rewarding,
"and appraising

HUMAN RESOURCE department exist to help people and organizations reach their
goals. Along the way, they face many challenges arising from the demands of the
employees, the organization, and society. The domestic and international
environments are particularly turbulent because of the growing diversity of the
workforce and the globalization of businesses. Challenges also result from ever
changing laws, especially laws that address the need for equal employment
opportunity. Within these constraints, the human resource department must contribute
to the organization's "bottom line" in ways that are
.both ethical and socially responsible

Purpose
The purpose of human resource management is to improve the productive
contribution of people to the organization in ways that are strategically, ethically, and
socially responsible. This purpose guides the study and practice of HR management,
which is also commonly called personnel management. The study of HR management
describes the HR-related efforts of operating managers and shows how personnel
.professionals contribute to those efforts
Objectives of HRM
Managers and HR departments achieve their purpose by meeting objectives.
Objectives are benchmarks against which actions are evaluated. Sometimes they are
carefully thought out and expressed in writing. More often objectives are not formally
though out and expressed in writing. More often objectives are not formally stated.
.Either way, they guide Hr function in practice

Organizational Objective

To recognize that HR management exists to contribute to organizational

effectiveness. Even when a formal HR department is created to help managers, the
managers remain responsible for employee performance. The HR department exists to
help managers achieve the objectives of the organization. HR management is not an
end in itself; it is only a means of assisting managers with their human resource
issues. For example, NISHAT HR department found that it could enhance it
contribution to the organization through sophisticated information systems that
allowed the department to cut #35 million a year from its budget. Simply stated, an
.HR department exists to serve the rest of the organization

Functional Objective

To maintain the department's contribution at a level appropriate to the

organization's needs. Resources are wasted when HR management is more or less
sophisticated than the organization demands. Realizing that the HR department had
grown too large, NISHAT changed its ratio of HR staff members to employees from 1
per 53 down to 1 per 75 without violating the company's long-standing "no-layoffs"
."policy

Role of HR Department
Human Resource department play a very important role in Nishat Mills LTD. New
talent has a thirst for opportunity and that they are seeking such jobs which enhance
there capabilities and to gain some experience. Due to these facts the HR department

Of Nishat is looking for these kinds of people who want to excel in life and are highly
motivated to achieve some goals. The HR department of Nishat is working day and
night to make this Organization a better organization by hiring people who are self
.motivated and there main aim is to make the company more profitable

JOBS OF HRM

 Conducting job analysis

 Planning needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Appraising performance

HRM in Nishat Mills

• Employing over 9000 people.

• Lowest Employee Turnover.

• Seeks to fulfill the highest practical degree in

administering its welfare and compensation program.

• Apprenticeship and other training schemes at all levels.

• To obtain, manage, develop, motivate and gain the

commitment of company's key resource- the people
who work in and for it.
• To develop a positive corporate culture to promote
commitment to excellence and quality through out
the company.

• To identify training needs and provide required training

to all categories of employees.

• To make best use of the skills and abilities of all those

employed in the organization.

• To ensure that the company meets its social and legal

responsibilities towards its employees, with particular
regard to the conditions of employment, quality of
working life provided for them and the need to
promote environment, occupational health and safety.

• To ensure industrial peace and harmony through

excellent employee relations to achieve optimum level of
employee, productivity and to contribute towards
company’s aimed quality standards.

Classification of HR Department in NISHAT

Human Resource
Department

&Recruitment & Training Compensation and

Selection Development Benefits
:Responsibilities of HR Manager

-:Following are the responsibilities of HR Manager in Nishat Mills

• Recruitment And Selection

• Policy Making

• Retention Program

• Improve Working Relation Of Employees

:Competitive Advantages

:Nishat Mills has following competitive advantages over its competitors

• Strong Pay Structure

• Retention Program

• No Firing

• After retirement contract basis job

Recruitment Process

The Process of seeking and attracting a pool of qualified"

."applicants from candidates for job vacancies can be selected

Recruitment Policy
An organization's recruitment policy provides the framework for recruiting action and
reflects the organization's recruitment objectives. It details the overriding principles to
.be followed by management in general and by HR manager in particular
In Nishat Mills the recruitment process starts when a there is a vacancy and employee
is required. The job requirement is forwarded to the HR Department by the head of
the particular department. Hr department then use two approaches to hire the
.employee internal recruitment and external recruitment

Job Analysis
The procedure for determining the duties and skill“
requirements of a job and the kind of person who
”should be hired for it

Nishat is one of the largest textile manufacturers in Pakistan having lots number of
different sectors o/departments working in it. It has many employees who are working
on different posts and are working hard according to their own capacity. Nishat Mills
.conducted job analysis in order to hire new employees at every year
This also enables management to have a better understanding of the jobs and duties
being performed at every level and also helps them in training the people who are
.freshly recruited

In job analysis, firstly we specified two pillars which are

 Job description
 Job specification.

Uses of Job Analysis Information

The information collected during the process of job analysis is used by the company
:in taking decisions regarding affairs like

 Recruitment & Selection

decisions
 Compensation
 Performance Appraisal
 Training
Methods of Collecting Job Analysis Information

-:There are two methods of collecting Job Analysis Information

• Interviews
• Observation

:Internal Recruitment-1

:Job Posting
Advertising of job openings to current employees via bulletin boards,
newsletters, or personal letters. Filling a job opening from within the firm has the
advantages of stimulating preparation for possible transfer, or promotion and
.increasing the general level of morale
The first and foremost preference of Nishat Mills is to hire the employees through
internal recruitment and giving existing employees more chances to develop their
career. For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the
.vacant seat

:Replacement charts
A visual representation of which employee will replace the existing incumbent in a
designated position when it becomes vacant. In Nishat Mills replacement charts are
.used rarely

External Recruitment-2
To search the employee to fulfill the vacant seat outside the organization is called
external recruitment. HR Department can use various approaches to locate and attract
external candidates like Government agencies, private employment agencies,
.recruiting consultants, executive search firms, and educational institutions

Nishat Mills run the external recruitment campaign itself and do not use the other
.sources like agencies and search firms
Sources used for external job recruitment

:Following are the some sources of Job Recruitment in Nishat Mills

• By Newspapers

• By Website

• By Universities

:Advertising-1
Advertisements are placed in various newspapers. More information about the
company and job specification is included in the ad to present some self-screening.
.The advertisement is placed in Jhang and Din
Nishat Mills use print media for advertisement because they think most of the people
don’t have knowledge about computer or internet and they can easily find job
.advertisement in newspaper

:Casual Applications/Unsolicited Applications-2

Unsolicited applications are also welcomed in Nishat Mills; they are not neglected as
whole. If candidate have excellent performances throughout his career he can be hired
.or these applications can be used for future references

:University Recruitment
Nishat Mills used the university recruitment only once in LUMS but the result was
.not such a good and only one candidate was hired that time
:(Equal Employment Opportunity (EEO
Nishat Mills provides jobs on Equal employment opportunity as they do not
make any discrimination in job description .The Company provide Equal
.Employment Opportunity is also mentioned in the job advertisement

Selection Process
Following steps are followed in the selection process
Reception of Applicant-1
Preliminary Interview-2
Application Form-3
Tests-4
Interview-5
Background-6
Preliminary screening by HR Department-7
Final selection by line managers-8
Medical Examination-9
Placement on the Job-10

:Reception of Applicant-1
The importance of giving the applicant a favorable impression at this stage
cannot be overemphasized. Rudeness, disinterest or discrimination at reception may
cost the organization a good applicant and foster negative attitudes about the company
.and its products
Nishat Mills give high importance to the first step in selection process which is
reception of applicants. The staff makes such a friendly environment at this stage that
does not make any negative thinking about the company even if the candidate is
refused for further processing. The usually use the indirect way to inform candidate
.about refusal

:Preliminary Interview-2
In Nishat Mills preliminary or initial screening interview is used to check
quickly on language skills, qualifications, willingness to do shift work, union
.membership and the like

In Nishat Mills preliminary interview is typically brief and centered on very specific
job requirement. However has carried out in a courteous, non-discriminatory and
.efficient way

:Application Form-3
After preliminary interview or initial screening Nishat mills receives the applications
from the candidates who have cleared the initial screening step. The application form
.of candidate is a valuable tool in screening out unqualified applicants
The HR Manager considers the qualification, experience and other job related data
.provided in application form

:Test-4
In Nishat mills test is used to access the match between application and the job
.requirement
The most used types of test in Nishat Mills are following
Aptitude Test-1
Intelligence Tests-2
Personality Tests-3

The most frequent method used to take the tests is computer based tests but written
.tests are also taken rarely in Nishat Mills
:Interview -5
There are three types of interviews take by the Nishat Mills

:Initial Interview
The initial screening interview is taken by the HR Manager. The only purpose
of initial screening interview is to access the language skills, qualifications,
.willingness to do shift work

:Panel Interview
In Nishat Mills the Panel interview is the next step for the candidates who
have successfully passed the tests. In Nishat Mills panel interview is taken by three
managers
General Manager-1
HR Manager-2
Head of the Department-3

:Unstructured Interview
Nishat Mills do not use a predetermined outlines or questions to be asked from
candidate but the take the unstructured interview and interviewer can ask anything
.which he thinks is necessary

:Criteria for Selecting Candidate in interview

:Following is the criteria for selecting candidates in Nishat Mills based on

• Communication Skills

• Present Personality

• Educational
Background (etc.)
 • Skills And
Competency

:Background-6
After interview the Nishat Mills HR Department staff checks the backgrounds of the
successful candidates through the references provided by them. The background is
investigated to ensure that candidate have a fair character and is not involve in any
.criminal activity

:Preliminary screening by HR Department-7

HR Department completes all the works assigned to it and finally do a preliminary
screening. This screening is based on the overall results of the candidates. A list of
successful candidates is made and the maximum no of toppers are screened as per
required by the head of department. The list of selected candidates is than forwarded
.to the particular Head of the Department

:Final selection by line manager-8

The list of selected candidates by HR Manager of Nishat Mills is given to the Head of
the particular department and now Head of the department is the final authority to
.select the candidate

:Medical Examination-9
After the candidates have been selected by the head of department, medical
examination of the selected candidates is taken by Dr. of the Nishat Mills. This is a
check to ensure that employees do not have any contagious disease and to save other
.employees from this disease

:Placement on the Job-10

After passing each and every selection step Nishat Mills the successful candidates are
given the job letter which indicated their job title, work timing, starting date and
.salary package

Training and Development

Training

Training is an activity that results in learning .it seems important than to consider
what learning is and what trainers can do to positively influence it. There is
.considerable disagreement over which theory best explains how learning occurs
This is however consensus on the definition of learning and the goals of learning
process

Methods of training

The Nishat Mills adopts many different training programs for enhancing the skills of
its employee. In Nishat Mills following methods are used for employee training

 On job training
 Off the job training

:On Job Training

• Making teams of new employees with a few old specialized

Employees.

• Acquaintance with day to day procedures

• Contribution to overall productivity.

• Lower cost

• Lower Time
Off Job Training

• In-house training ,done at least once a year

• Specialist trainers are hired

• Provide a proper learning environment to the employees

For employee training and development to be successful, Nishat Mills do following

things:

• They provide a well-crafted job description- it is the foundation upon

which employee training and development activities are built
• Provide training required by employees to meet the basic competencies
for the job. This is usually the supervisor's responsibility
• Develop a good understanding of the knowledge, skills, and abilities
that the organization will need in the future. What are the long-term goals of
the organization and what are the implications of these goals for employee
development? Share this knowledge with staff.
• Look for learning opportunities in every-day activity. Was there an
incident with a client that everyone could learn from? Is there a new
government report with implications for the organization?
• Explain the employee development process and encourage staff to
develop individual development plans.
• Support staff when they identify learning activities that make them an
asset to the organization both now and in the future.

In the development process Nishat aligns the interest and skills with the need of
organization. It means carrier must be managed strategically so the skills demanded
by the organization’s strategic business objectives are understood and a work force
with the matching profile of skills is developed.

Performance Appraisal
 Performance appraisal concerned with determining how well“
employees are doing, communicating that information to
employees and establishing a plan for performance improvement

The jobs are evaluated on yearly basis under superior evaluation method. The
competent employees are rewarded in shape of promotions, bonus, increments and

annual holidays. The results of an appraisal can be used to identify areas for further
.development of the employee
The method used to evaluate employee’s performance consists of 20-25 questions
about the behavior of the employee, and then on the basis of these answers personality
.of the employee is judged
There are two possible sources of errors of performance evaluation in Nishat

Halo Effect
Recency effect

Compensation and Benefits System

Nishat Mills use compensation process in which Nishat Mills wants to satisfy the
individual need of employees and to make the employees work with the organization.
The company use cash and non cash rewards to motivate its employees.

The company uses the following ways to retain the employee

 Promotion
Promotion is direct shift only to the next level from the current grade, the
Employee’s performance is evaluated and if his performance is above average he is
.given promotion
In Nishat Two things are counted to give promotion

Experience-1
Performance-2
 Increments
The company decides at the end of the financial year, according to its financial
condition, whether increments should be given or not. Once the increment is
.decided, it is effective from January of each calendar year
 Free transport
Nishat Mills provide free transport to local employee and also to their children for
school

 Medical facility
Nishat Mills provide free medical facility to workers depending upon the
.position/rank of the employee
 Free housing
They give the facility of free accommodation for all level of employees, again the
.facility is provided according to the position
Recommendations
In Order to solve the problem the company must fire those
employees who are giving continuous poor performance in spite
of job rotation and training. Company must use external
recruitment firms like Personnel consultancies, Management
recruitment consultants, and Executive search firms to hire the
best employees as these companies are the expertise. The Nishat
Mills must not hire the retired employees on contract and give
more and more chances to the new talent.

Nishat Mills needs to improve its advertisement campaign as the

results shows that the comany advertisement process is not very
effective and the best candidates are not attracted.Company also
needs to motivate its employees in a better way like
bonus,commissions,promotions and increment at the same time.

The result of performance appraisal should be discussed directly

with the employees and should be kept uptodate with their both
negative and positive aspects.This can be done by arranging
meetings etc.s