HR Practices

ADVANCE HUMAN RESOURCES PRACTICES
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Advance Human Resource
practices

Submitted by:
MUSTANSAR ALI BAGRI 11-111
FAISAL SAJJAD 11-122

MS. MADIHA RIAZ
Submitted to:

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Acknowledgment

First of all we thank Allah Almighty the most beneficent and merciful who
gave us strength, patience and inspiration needed to complete this task,
which is essential requirement for the completion of our project we
would like to acknowledge,
MS. MADIHA RIAZ
It was only due to her guidance, we had the opportunity to gain the
latest hand-on knowledge conducting ON
PEPSI CO & GOURMET
We are also very thankful to all our fellows who Guide us in all
The manners we required.


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Executive summary

PepsiCo, Inc., incorporated in 1919, manufactures, markets and sells
soft drinks and concentrates, and snack foods. PepsiCo and its divisions
and subsidiaries operate in three business segments: Worldwide Snacks,
Worldwide Beverages and Quaker Foods North America (QFNA). The
Company's snack food business is comprised of two business units:
Frito-Lay North America (FLNA) and Frito-Lay International (FLI). The
Company's beverage business is comprised of three business units:
Pepsi-Cola North America (PCNA), Gatorade/Tropicana North America
(GTNA) and PepsiCo Beverages International (PBI). On August 2, 2001,
the Company completed a merger transaction with The Quaker Oats
Company (Quaker) whereby Quaker became a wholly owned subsidiary
of PepsiCo.


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EXECUTIVE SUMMARY

Gourmet a name that needs no introduction at least for the people living in
Lahore, with over 85 outlets throughout the city and still growing in
numbers they are referred to as undisputed leader in Bakers and
confectioners in Lahore. Keeping hold of their image in the bakers and
confectioners field they also entered the beverage industry by first
launching Mineral water giving Nestle a serious headache and then by
launching carbonated drink successfully.
The successful launch of gourmets carbonated drinks the industrial analysis
showed that the trend for juices is on a high because of increase awareness
of health consciousness among people. Taking this into account and
cashing onto the repute that gourmet has established will surely going to
help a lot. The competitive analysis identified that the intense competition
within the industry as the industry has some humongous names in it (Pepsi,
Coke, Nestle etc). Then applying Porters five forces to the Pakistani
beverage industry gave us a view of the potential attractiveness in terms of
profitability of the industry. By doing PEST analysis we learnt that although
the political situation of the country is not very good but the GDP and per
capita income has increased and raised demand of FMCGs. Also awareness
about health consciousness has increased a lot and people are accepting
juices as a social drink rather than a child drink and there are no
technological barriers to enter the industry as well. Then the SWOT analysis

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reflected that the industry is full of opportunities obviously with some
weaknesses and threats but these using our current strengths these
opportunities can also add up to our strengths and overcome our
weaknesses. At the end the strategies for launching juices will be quite
similar that were used while launching carbonated drinks. The juices will
initially be launched only in flavors that are commonly accepted by the
public (orange, apple, pineapple, mango and mixed fruit). Will be delivered
to the customer in three different sizes 250ml, 500ml and 1liter and initially
be sold only on gourmet outlets. Penetration pricing strategy will be used
with different pricing methods. Competition base pricing strategy will be
applied on 250ml juices for the other ranges cost plus strategy will be used
to get hold of the market. Along with these strategies and the competitive
advantages such as quality, price, distribution and brand image it seems to
be a fruitful venture. But in case it doesnt work out as planned a
contingency plan is also there, in which the juices will be distributed to local
retailers and general stores as people might be finding it inconvenient not
to find it easily and visit to the outlet for purchasing a juice. Further high
intense promotion will be done for causing awareness of nutritious diet.
This will surely help in increasing sales. We also have future plans to launch
these juices in other major cities of Pakistan and capture market share.


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DEDICATION

Our Honorable Teachers & Loving Parents
Whose,
Love, Affection, Motivation, Patience, Support
&
Spiritual Inspiration
Give us Encouragement,
To all those People who have quenched for Knowledge,
To all those who have dedicated their lives to others,
To all of those who have served and sacrificed for
Sake of Freedom
To all of those people, they may be gone now
But they will never be
Forgotten....


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MISSION STATEMENT

The mission is to produce PepsiCo quality beverages,
maintain market leadership by growing our sales
volumes, strengthen our market share, delivering ROI
to all of its stakeholders and fulfill its responsibilities in
the community.

VISION STATEMENT

The Vision of the company is to continue to build a strong
company which is the number one beverage company in
Pakistan and provides value to all of its stakeholders.


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PEPSI
IN PAKISTAN

Pepsi cola is also very popular in Pakistan thats why its market share
is about 90% in the soft-drink market. Pepsi Cola International, a
remarkable name in the cola industry is doing its business in Pakistan
through franchising. PCI has developed following bottlers in Pakistan till
now. Naubahar Bottling Company
is the largest manufacturer and distributor of
Pepsi Cola soft drinks in Pakistan.

These franchises are located in PAKISTAN
Karachi
Lahore
Multan
Faisalabad
Gujranwala
Peshawar
Islamabad
Sukkher
Hyderabad


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HISTORY

T TH HE E S SU UM MM ME ER R O OF F 1 18 89 98 8, , A AS S U US SU UA AL L, , W WA AS S H HO OT T A AN ND D H HU UM MI ID D I IN N N NE EW W B BE ER RN N, ,
N NO OR RT TH H C CA AR RO OL LI IN NA A. . S SO O A A Y YO OU UN NG G P PH HA AR RM MA AC CI IS ST T N NA AM ME ED D C CA AL LE EB B B BR RA AD DH HA AM M
B BE EG GA AN N E EX XP PE ER RI IM ME EN NT TI IN NG G W WI IT TH H C CO OM MB BI IN NA AT TI IO ON NS S O OF F S SP PI IC CE ES S, , J JU UI IC CE ES S, , A AN ND D
S SY YR RU UP PS S T TR RY YI IN NG G T TO O C CR RE EA AT TE E A A R RE EF FR RE ES SH HI IN NG G N NE EW W D DR RI IN NK K T TO O S SE ER RV VE E H HI IS S
C CU US ST TO OM ME ER RS S. . H HE E S SU UC CC CE EE ED DE ED D B BE EY YO ON ND D A AL LL L E EX XP PE EC CT TA AT TI IO ON NS SB BE EC CA AU US SE E H HE E
I IN NV VE EN NT TE ED D T TH HE E B BE EV VE ER RA AG GE E K KN NO OW WN N A AR RO OU UN ND D T TH HE E W WO OR RL LD D A AS S P PE EP PS SI I- -C CO OL LA A. .
Caleb Bradham knew that to keep people returning to his pharmacy, he
would have to turn it into a gathering place. He did so by concocting his
own special beverage, a soft drink. His creation, a unique mixture of kola
nut extract, vanilla and rare oils, became so popular his customers named it
"Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and
advertised his new soft drink. People responded, and sales of
Pepsi-Cola started to grow, convincing him that he should
form a company to market the new beverage
In 1902, he launched the Pepsi-Cola Company in the back
room of his pharmacy, and applied to the U.S. Patent Office
for a trademark. At first, he mixed the syrup himself and sold it exclusively
through soda fountain.
He mixed the syrup himself and sold it exclusively through soda fountains.
But soon Caleb recognized that a greater opportunity existed to bottle
Pepsi so that people could drink it anywhere.

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1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office.
That year, Caleb sold 7,968 gallons of syrup, using the theme line
"Exhilarating, Invigorating, Aids Digestion." He also began awarding
franchises to bottle Pepsi to independent investors, whose number grew
from just two in 1905, in the cities of Charlotte and Durham, North
Carolina, to 15 the following year, and 40 by 1907. By the end of 1910,
there were Pepsi-Cola franchises in 24 states.
Pepsi-Cola's first bottling line resulted from some less-than-sophisticated
engineering in the back room of Caleb's pharmacy. Building a strong
franchise system was one of Caleb's greatest achievements. Local Pepsi-
Cola bottlers, entrepreneurial in spirit and dedicated to the product's
success, provided a sturdy foundation. They were the cornerstone of the
Pepsi-Cola enterprise. By 1907, the new company was selling more than
100,000 gallons of syrup per year.
1898 Caleb Bradhams, a New Bern, North Carolina, pharmacist, renames
"Brad's Drink," a carbonated soft drink he created to serve his drugstore's
fountain customers. The new name, Pepsi-Cola, is derived from two of the
principal ingredients, pepsin and kola nuts. It is first used on August 28.
In 2000 PepsiCo sales are $20 billion and the company has 125,000
employees at year
Now Pepsi is available in more than 200 countries of the world.


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Organizational structure

Director
General Manager
Sales Manager
(Local Sales)
Sales Manager (Out
Sales)
Plant Manger
Marketing & Services
Manager
S & D
Mangers
Assistant Manager
Marketing & Services
Publicity
Manager
Store
Manager
Shipping
Manager
MIS
Manager
Finance
Manager
Purchase
Manager
Audit
Manager
HR
Manager
Production
Manager
QC
Manager
Managing Director
Store
Manager
Shipping
Manager
Purchase
Manager

Audit
Manager

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STRUCTURE OF HR DEPARTMENT

Number of employee working in the H.R.M Department:
Almost three employees working under the Human Resource
Manager but on the other hand 2500 employees working in PEPSI also
manage the H.R department with the coordination of the each department.

Assistant to H.R Manager
(H.R Executive)
Assistant to H.R Manager
(H.R Officer)

H.R Helper

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Major Functions
Human Resource Planning and Forecasting
1 1. . H HU UM MA AN N R RE ES SO OU UR RC CE E P PL LA AN NN NI IN NG G: :

Human Resource Planning Parallels the plans for the business as a whole.
HRP focuses on questions such as these:
i. What do the proposed business strategies imply with respect to
human resources?
ii. What kinds of internal and external constraints will (or do) we face?
iii. What are the implications for staffing, compensations practices,
training and development, and Management succession?
iv. What can be done in the short run (tactically) to prepare for long term
(strategic) needs?
Although HRP means different things to different people, general
agreement exist on its ultimate objective-namely the most effective use of
scarce talent in the interest of the worker and organization. Thus we may
define HRP broadly as 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. This general view
suggests several specific. Interrelated activities that together constitute an
HRP System.
They include:

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A talent inventory:
Human Resource Forecast:
Action Plans:
Control and evaluation:
Human Resource Planning Process

Issues Analysis
Business needs
External Factors
Internal supply
Management implications
Forecasting Requirements
Staffing levels
Staffing mix
(Qualitative)
Organization and job design
Available projected resources
Net requirements


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Human Resource Forecasts:
The purpose of human resource forecasting is to estimate labor
requirements at some future time period. Such forecasts are two types.
The external and internal supply of labor and
The aggregate external and internal demand for labor.
JOB DESCRIPTION
Job description also provide on the basis of the designation. Job description
form also provides in the written form to the each department according to
the designation of the employees then each department provides job
description to their employees.
Action Plans
Staffing authorizations
Recruitment
Promotions and transfers
Organizational changes
Training and development
Compensation and benefits
Labor relations

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Here the pay professional should standardize and complete the job
description that were found to be lacking or missing during the initial audit
and review.
Job description will serve as an anchor for the pay professional .They will
provide a comprehensive understanding of the organization and will serve
as the initial basis for job evaluation.
A written statement of what the worker actually does how he or she does
it and what the jobs working conditions are
Section of a typical job description;
Job identification
Job summary
Responsibilities and duties
Authority of incumbent
Standards of performance
Working condition
Job specification
Job description use for:
New position
For promotion
Recruitment
Transfers
Performance Management
Career Planning
Staff Planning

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Training and Development
Steps in the Job Description Process

Determine Method
of collecting Data
Design the
Questionnaire
Identify the Appropriate
incumbent
Conduct the Interview
Write the Draft
process or Results
Review and Rewrite
Obtain Approval of Incumbent and
supervisor

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JOB SPECIFICATION
Specification for trained personnel
Specification for untrained personnel
Specification based on judgment
Specification based on statistical analysis
Recruitment and Selection;
A. Recruitment as a Strategic Imperative:
Recruitment is a form of business competition. Just as corporations
complete to develop, manufacture, and market the best product or service,
so they must also complete to identify, attract, and hire the most qualified
people. Recruitment is a business and it is big business. It demands serious
attention from management, for any business strategy will falter without
the talent to execute it. Certainly, the range of recruitment needs is broad.
A small manufacturer in a well-populated rural area faces recruitment
challenges that are far different from those of a high technology firm
operating in global markets.

B. The Employee Recruitment and Selection Process:

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Specification of people/task
Requirements of jobs

Specification of human resources
Requirements

A pool of qualified candidates

A smaller pool of qualified candidates

New Employees
Job analysis
Human Resource
Planning
Recruitment
Initial Screening
Selection

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Understanding of Company /
Departmental policies, procedures
And benefits

Optimal match of employee talents
With organizational needs

Competence to perform present or
Future Job requirements

Feedback regarding
past and
Present job performance supervisor/
subordinate plans for the future.

Placement
Orientation
Performance
Appraisal
Training


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RECRUITMENT PROCEDURE IN
PEPSI
Major sources of potential job candidates are
Newspaper Adds
Internal Search Advertisement
Employees Referrals (Permanent Employees of PEPSI)
Types of Recruitment
Permanent Recruitment (Minimum Requirement
Intermediate)
Daily Wages (At least Metric)
Contract (Graduation and Master for one year)
The candidates are selected on the basis of
Interview by HR Manager
Interview by Factory Manager
Interview by Concerned Department Head
Final Interview by MD/Director
Check list for newly hire employees
N.B.C application form
Application (own hand written)
Original Resume
Attested copies of academic certificates
Four number of photographs (passport size)
Salary evidence

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Two reference with complete name, address, Designation and contact
number
Driving license of the employee
Interview evaluation form and test result
Training and Development
Training Need Assessment
A. Basic Model
It shows that in defining training needs we have to start by identifying and
comparing two levels of performance: the standard (desired, optimum, future,
planned) performance level (PS) and the current (existing real) performance
(pc). The difference between these two levels is the performance gap.
B. Defining the gap between current and desired performance
The identification of current performance starts by fact-finding, which consists of
collecting information indicative of performance, describing and measuring it. For
example, the plant utilization may be chosen and measured as global indicator of
performance. The related competence problems of production managers may be in
areas of production scheduling and control, maintenance management, quality
improvement and purchasing. Factors other than the production managers competence
(calling for non-training solutions) may include a shortage of foreign exchange, the absence of
any bonus systems for stimulating better utilization of plant, and so on.
C. Structure of the needs
In applying the approaches described above, it is useful to be able to refer to clear and
generally acceptable ways of structuring the training and development needs. This help to avoid
confusion in what is meant by needs, and endless debates on the differences between
performance and competence, and so on. In particular, it is useful to differentiate between the
levels of organizational performance, individual behavior and performance, and competence,
this consist with the postulate that training must be performance and result oriented.

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APPLICATION PROCESS

Application
Form
Fill up and
Signature of
Department
Head
Transfer in
Attendance
&
Leave Register
Check by time
office
availability of
leaves
Submitted in
Time Office
Application Process

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Model of results oriented needs
assessment

Spotting organizational
problems
Tracing problems to their
main causes and areas
Recognizing individual
(group) performance
problem
Job analysis
Performance appraisal
Determining performance
improvement needs
Training needs and solutions Non-Training needs and solutions
Separating Training from
non training solutions

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COMPENSATION MANAGEMENT
Compensation
At a broad level, and organizational reward system includes any thing and
employee values and desires that an employer is able and willing to offer in exchange
for employee contribution. More specifically, the reward system includes both financial
and no financial Rewards. Financial rewards include direct payments (e.g. salary) plus
indirect payments in the form of employee benefits.
Compensation program also manage in the time office. Salaries are paid to the
daily wages, contract and permanent employees according to their designation. Salaries
and plus benefits also provide to the employees.
REWARD SYSTEM

1. Pension (60 years) 1. Petrol +
Maintenance
2. Direct Payments (Salaries) 2. Protection Program
3. Bonus (Three Basic Pay Annually) 3. Effective Supervision
4. Accommodation
5. Utilities bills
6. Vehicles
Financial
Non Financial

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SALARY
Salary of all the workers permanent and temporary (Daily Wages) is prepared in
time office with the help of attendance register. Salary of permanent employee is
prepared at the last of month and the salary of daily wages workers twice a month. The
increment is made when a worker complete one year in service. Following deductions
are made for preparation of salary. The increment is made when a worker complete one
year in service. Following deductions are made for preparation of salary.

Daily Wages Permanent

Basic (daily wages) Rs. 81
Basic Pay 66.7 % of gross
pay
CLA- 1 Rs. 4
House Rent 40% of basic
Pay
CLA- ii Rs. 2
Convene Allowance
Rs.3oo/-
CLA- iii Rs. 7
Salary Preparation


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Other Allowances
Rs.3oo/-
Special Excreta Rs. 7
EOBI Rs. 30/- (Deduct)

Adhock Relief Rs. 14
EOBI& ESSI 6%
(Company)

PROBATION PERIOD
In the Pepsi the probation period of new employee is three to six months in the
probation period employee work routine wise. There is no leave granted during the
probation period.
In the probation period employee efficiency and effectiveness has been check the
permanent recruitment depends on the efficiency and effectiveness of the employee.
The probation period is necessary for the newly hire employee it is the basis for
permanent employee if the probation period of the employee is satisfactory the
employee will be hire permanently if the probation is not satisfactory level then the
employee will be dismiss.
During the probation period the salary will be given to the selected candidate the
salary will be start from the first month.
Total Rs. 116

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RENT OR RESIDENCE FACILITY:
Rent or resident facility is given by company to those employees who are from out of
station/town/city. And their rent is paid by company.
MEDICAL CARE:
The company provide the facility of Social security card to the employee both
permanent and daily wages. This card is issued by the Employee Social Security Institute
(ESSI). With this card an employee gets a lot of benefits with pay anything. The social
security card is allotted to these candidates whose pay is up to 5ooo/-. Following
documents are required to achieve the social security card.
TRANSPORTATION:
Transportation allowance is given to only permanent employees which is included in
their salary. The amount of conveyance allowance vary from job to job depend on status of
job. Transportation allowance is included in their salary in the name of CONVEYANCE
ALLOWANCE.
CHANGES WITHIN THE ORGANIZATION
Promotion
Transfer
Demotion
Promotion in PEPSI
An employee Promoted after three years services in PEPSI but only on
permanent basis.
On the other hand if an employee has intermediate qualification and during the
job he complete his graduation he will be promote
2. Transfer
Transfer function performs in PEPSI. There are two types of Transfer

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Transfer With NOC
If an employee transfer from department to any other department NOC is necessary
for transfer. For example an employee transfer from production to shipping NOC is
necessary for transfer.
Transfer without NOC
An employee can transfer from sale department to sale department without NOC.
For example an employee transfer from Gujranwala to Gujarat in sale department NOC
is not necessary
2. Demotion
Employee demotions usually involve a cut in pay, status, privilege, or opportunity,
they occur infrequently since they tend to be accompanied by problems of employee
apathy, depression, and inefficiency that can undermine the morale of a work group.
For these reasons, many managers prefer to discharge or to move employees laterally
rather than demote them.
SEPRATION
1. Layoffs
How safe is my job? For many people that is the issue of the late 1990s. It is
becoming clear that corporate cutbacks were not oddity of the 1980s and 1990s, but
rather are likely to persist.
Involuntary layoffs are never pleasant, and management policies must consider the
impacts on those who leave, on those who stay, on the local community, and on the
company
2. Retirements (PENSION)

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For selected employees, early retirement is possible alternative to being laid off. Early
retirement programs take many forms, but typically they involve partial pay stretched
over several years, along with extended benefits. Early retirement programs are
intended to provide incentives to terminate; they are not intended to replace regular
retirement benefits. Any losses in pension resulting from early retirement are usually
offset by attractive incentive payments.
In PEPSI no early retirement is not possible pension are paid after retirement to those
employees who are more than 60 years of age.
3. Resignations
Resignation, or voluntary worker turnover, has been increasing steadily over the past 15
years, particularly among white-collar and professional workers. Employees who resign
should avoid burning their bridges behind them, leaving anger and resentment
In their wake; instead, they should leave gracefully and responsibly, stressing the value
of their experience in the company.
In PEPSI early resignation is possible who will resign from the company; he must deprive
from the benefits of the company.
WEAKNESSES IN HR DEPARTMENT
1. Policies have been developed but not implement.
2. The employees did not promote soon thats why employees leave
the factory.
3. New employees salary is more than old employees.
4. Lose the key employees because of the reference.
5. One person handles all the recruitment procedure of the N.B.C which
may be burden for him.

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6. HRM department in PEPSI is not working professionally .Only two to
three persons are handling all the work.
H.R.M functions are more but employees working in H.R.M Department are
less.
RECOMANDATIONS
In PEPSI (PEPSI) Human Resource Department must expand the strength of
its employees
Assess current human resource standards & generate human
resources inventory.
Assess future human resources needs by organizations strategies &
future programs.
To know development & training needs of employees.
Anticipate direction for future performance
Formal training conduct with the planning/efforts of HR department.
Perform all the functions of Human Resource Department more
efficiently and effectively.


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HISTORY
Gourmet Bakers and Sweets is the largest food retail chain of
Pakistan. It is based in Lahore, the second largest city of Pakistan known for
its traditional foods and passion for eating. With 2 processing units and 30
sales outlets Gourmet outreach to a huge population for their food needs.

The company has shown an explosive annual growth of more than
25% in its business since 1987, when Mr. Muhammad Nawaz Chatha
started this unique business with only one sale outlet. With his
commitment and strenuous efforts to provide the consumers with best
quality food products in a convenient and unmatched displaying manner,
Gourmet has become a success story of business growth in Pakistan. At
moment, Gourmet has more than 1700 employees working in the
organization.
Mission statement:
Our mission is to provide quality products at lowest prices
Vision:
Leader of quality juice providers in the region by offering products enjoyed
in every home. This will be achieved from the dedication of each employee
in conjunction with supportive participation from management at all
levels.

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Strategic Goals:
The strategic goals are considered when company is thinking of the long-
term objectives. However, they are reviewed every year in the annual
meeting to make sure that they are in line with the changing environment.
To project an outstanding product image by providing best quality
in our products.
After successful launching in Lahore we intent to grow our
distribution network of juices in all major cities of Pakistan.
being an agriculture country there is sufficient demand for
Pakistani juices in international market. Therefore, after studying
international beverage market well plan to introduce our product in
international market.
To increase the market share from the preceding year.
STRUCTURAL HIERARCHY:-
The structural hierarchy of Gourmet is not very complex one. On the
top of management is a General Manager. Under General Manager is a
Zonal Manager. Then at the outlet level, Gourmet has Shift Managers, Shift
Supervisor and at the bottom level are the Employees.


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General Manager

Zonal Manager

Shift Supervisor

Employees

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HUMAN RESOURCE MANAGEMENT
INTRODUCTION
HUMAN RESOURCE departments 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.
RECRUITMENT AND SELECTION
Recruitment is the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.
ROLE OF HRD IN RECRUITMENT PROCESS
HRD of Gourmet is responsible for designing the selection system and
managing its everyday operation. Human resource managers in
cooperation with other managers largely set the overall strategy; they are
likely to be influential in deciding, e.g., whether the department should
focus on choosing people who are best qualified for current vacancies of for
those who have the greatest long term potential. The personnel managers
also decide how the guidelines for equal employment opportunities met
and whether the company needs outside legal assistance in formulating its
affirmative action plan.
JOINING THE COMPANY
On joining the Company the following formalities must be completed:
a) The documents listed below shall be forwarded immediately to Human
Resource Division for completion of their record.
i) Duplicate copy of appointment letter duly signed by the employee in
acceptance of the terms and conditions embodied therein.

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ii) Four copies of recent passport size photograph.
iii) Photocopies of all academic certificate especially metric certificate.
iv) Photocopies of testimonials from previous employers.
v) Fitness certificate as per Clause (4) of the letter of appointment.
vi) Photocopy of National Identity Card.
vii) Clearance letter from previous employer.
RECRUITMENT PROCESS
Recruitment of employees, in general the sources of recruitment can be
classified into two types.
I) Internal Job Posting:
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.
ii) External Job Posting:
Gourmet Foods also go to external sources for positions whose specification
cannot beam by present personnel. Gourmet Foods uses following outside
sources.
1) Advertising:
Advertisement are placed in various newspapers. More information about the
company, and job specification are included in the ad to present some self-
screening.
2) Employment Agencies:
Additional screening is affected through the utilization of private employment
agencies.
This Horizon agency has specialized in various types of workers and job e.g.
sales office, execution or engineer.

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3) Casual Applications
Unsolicited applications both at the gate and through the mail constitute a much
used source of personnel. These have been developed through permission of
attractive employment office facilities and prompt and continuous replies to
unsatisfied letters.
4) Leasing
To adjust short term function in personnel needs. The possibility of leasing by
the hour or day is considered. Gourmet Foods not only obtains well trained and
selective personnel but avoids any obligation in pension, and other fringe
benefits.
THE HIRING PROCEDURE
In the hiring procedure, Gourmet Foods are following steps to discover
significant information about an applicant.
1. Call for application
2. Preliminary interview
3. Applications blank
4. Check of References
5. Psychological lest
6. Employment interview
7. Approval by the supervisor
8. Physical examinations
9. Induction or orientation
TRAINING AND DEVELOPMENT
ORIENTING AND TRAINING OF EMPLOYEES
Once employees are "on board" their personal growth and development
overtime become a major concern. Change is a fact of a organizational life and
to cope effectively with it.

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In Gourmet Foods both human resource directors and other managers play a
critical role in the development of orientation programs. Human resource
directors have assumed leadership in developing such programs.
ORIENTATION OF NEW EMPLOYEES
After the selection of successful employees the first step in their introduction to
company policies, practices and benefits is an orientation program.
In 1997 an orientation programme is conducted by the management. The main
objective of this programme was to get familiarize with the organization culture
of both organizations.
The Orientation program in Gourmet Foods is completed in three phases.
The first phase is usually conducted by the staff personnel unit. Subjects
covered include products of the company, employee benefits, salary schedules,
safety, probationary period, timed recording and absence, holidays equal
employment opportunity programs, packing and the grievance procedure.
The second phase of most organized induction program is performed by the
immediate supervisor. The inductee is introduced to fellow employees, given a
tour of the department, and informed about such details as locker and rest
rooms, supply procedures, hours of work overtime, call in procedures, rest and
lunch periods, and lunching facilities.
The complete in action program will provide for phase three follow up some
week later. The interview, conducted by either the supervisor or a personnel
specialist is concerned with
1) Employee satisfaction with the job and organization.
2) Supervisor satisfaction with the employees.
TRAINING NEEDS ASSESSMENTS:
In Gourmet Foods there are three level of analysis for determining the needs
training can fulfill.
1. Organization analysis:
Focuses on identifying where within the organization training is needed.

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2. Operation analysis:
Attempts to identify the content of training - what an employee must do to
perform competently.
3. Individual Analysis:
Determines how well each employee is performing the task that make up his or
her job.
At this level, training needs may be defined in terms of a simple equation.
Desired performance - Actual Performance = Training need.
MANPOWER PLANNING
In Gourmet Foods basic purpose for which HRD in relation to HRP serves are
as under:
1. Balancing the cost between utilization of plant & manpower:
This theme involves comparing costs of these two resources in different
combinations and selecting the optimum.
2. Determining recruitment needs:
It is an essential prerequisite to the process of recruitment. It means that HRD
unexpected shortages, wastage, blockages of unexpected shortages, wastage,
blockages in promotion flow and needless redundancies.
3. Determining training needs:
HRD plans fundamental training programmes for which it is necessary to
assess not only quantity but also quality in terms of the skills required by
Gourmet Foods.
4. Management Development:
HRD provides succession of trained and experienced manager which is
essential to the effectiveness of the organization and this depends on accurate
information about present and future requirements in all management level in
Gourmet Foods.
5. Industrial Relation:

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In Gourmet Foods plan are made on the assumption about productivity and the
human resource implications of mergers, acquisition and divestment decisions
that have an impact on Gourmet Foods industrial relations.
A system of HRP in Gourmet Foods:
A system of HRP in Gourmet Foods has some specific points on which
company act.
1. Defining or redefining organizational objectives.
2. Determining and implementing the basic requirement to sound planning.
3. Assessing future requirements to meet objectives.
4. Assessing current resources and availability of resources in the future.
5. Producing and implementing the plan in detail i.e. balancing the forecast for
demand and supply related to short term and long term time.
6. Monitoring system and amending as indicated.
REASONS FOR HUMAN RESOURCE PLANNING
The formal personnel planning is essential for Gourmet Foods because it is
moderate to large in size, that experiences changes in technology, products,
markets and utilizes a lot of high talent personnel. Following are specific
reasons for which Gourmet Foods management is carrying on systematic
human resource planning.
1) Future Personnel Needs:
2) Coping with Change:
3) High-Talent Personnel:
4) Strategic Planning:
5) Equal Employment Opportunity:
6) Foundation for Personnel Functions:
THE PLANNING PROCESS:

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Planning for human resources is tied in with overall Gourmet Foods long range
planning. The process of planning in itself forces management to think through
objectives of firm and people problem relating to achieving those objectives
through planning.
1) GOALS AND PLANS OF ORGANIZATION:
Human resource planning is a part of overall strategic planning for Gourmet
Foods. A personnel vice-president and his staff cannot make useful plans for
period of one or three or five years, unless they have data on possible corporate
expansions new products, new plants, new markets and so on.
2) CURRENT HUMAN RESOURCE SITUATION:
The second phase of the planning process for Gourmet Foods is the preparation
of an inventory of personnel presently within the organization. This is also
called a skills inventory or manpower information system. A skill inventory
consists of up-to date information regarding the qualifications of the selected
categories of personnel.
Skill inventory contain many information but some of them are as
- Personnel data
- Education
- Employment History
- Performance and potential
- Career goals.
SALARY ADMINISTRATION
* All confirmed employees are allowed annual increments in the month of July.
* All normal increments are granted to employees who have completed one
year with the company. If service is less than one year then increment is
granted in proportion of the length of service during the year.
* Full normal increment is equal to the time scale of the grade in which the
concerned employee is placed.

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* An employee can only be promoted when there is a vacancy in the higher
cadre of the organizational chart or position in which he is working is being
upgraded.
* Merit shall be the only criteria for promotions. Seniority will be taken into
consideration only when everything else is equal.
* Promotion shall normally be considered at the time of granting the increments
i.e. 1st of July. In case of an opening that needs to be filled immediately;
* Up to supervisory level employees, General Manager concerned and General
Manager shall decide.
* In order to give importance to the event, the employee concerned shall also
be interviewed.
* For promotion of officer cadre and above, on the receipt of case, General
Manager shall arrange a meeting of Management Committee where the
candidate may be interviewed.
DIFFERENT TYPES OF DISPUTES IN ORGANIZATION
There are some signs of disaffection with organization such as strikes,
confrontation leading to lockouts and various forms of withdrawal of
cooperation by workers in furthermore of their claims. And other conflicts such
as poor training, turnover, absenteeism. But management tries to solve all
disputes and conflicts. But the typical conflicts which are taking place in the
organization are overtime bans, working to rules, refusal to use new machinery
have all seen in different sectors of Gourmet Foods.
To solve all disputes Gourmet Foods, management take action which is very
right and then all the employees are happy ad are more committed to their
work.
ROLE OF HRD IN SOLVING PROBLEMS
* Supportive behavior on manager's part.
* A work group problem solving.
* To design job techniques in such a way that gives satisfaction for individual
and opportunity for improving performance.

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* To overcome lack of commitment to work.
TERMS & CONDITIONS OF EMPLOYMENT
The term `employee' as use in the rules, regulations and benefit plans
enumerated covers all non-unionized employees i.e. Junior Officer up to
Managing Director
The company reserves the right in its discretion to modify, alter or discontinue
any rule, regulation or plan.
These rules, regulations and plans further clarify the conditions laid down in
the employment letter and cannot be interpreted contrary to or outside the scope
of the specific the terms of the employment letter signed and accepted by the
employer..
1. PROBATIONARY PERIOD
The period of probation is six months which may be extended at the description
of the management.
During this period, the employee will not be entitled to avail any leave, benefits
of the medical scheme, and coverage under Group insurance Policy and
member ship of the Provident and Gratuity Funds except coverage under the
Accident Insurance Policy.
During probation an employee's services are liable to termination without
notice or any payment in lieu thereof. This term shall apply to either side.
2. DUTIES AND OBLIGATIONS
Every employee is required to discharge his duties and obligations honestly and
diligently, and to observe strict secrecy concerning remuneration, performance
rating, increments or other terms of service and/or business affairs of the
Company whether in relation to other employees, companies, firms, institutions
or third parties engaged in business with the Company. The Company has
discretion with regard to the duties to be performed by an employee in keeping
with the terms of his appointment.
An employee shall devote the whole of his time to the business of the Company
and not be engaged, interested or concerned with any other business or
commercial activity of any kind whatsoever, whether directly or indirectly
without the prior written consent of the Company, nor to publish any book,

45 | P a g e

brochure or pamphlet or to contribute any article/communicate to any
newspaper or other publication whatsoever whether for remuneration or
otherwise.
3. COMPENSATION AND BENEFITS
On the successful completion of the probationary period an employee's services
will be confirmed in writing and then an employee will be entitled to avail
benefits of:
> Medical scheme
> Leave Entitlements
> Coverage under Group Life Insurance
> Membership of Provident Fund
> Gratuity Fund
> Pension Fund (Wherever Applicable)
As specified under each benefit plan.
4. SALARIES, INCREMENTS AND PROMOTIONS
Salaries are disbursed to all employees on the 26th of the month or, if a
holiday, the next working day.
Salaries are remitted directly to the Bank Account and it is therefore necessary
that details of Name, Account Number, Branch and Place should be intimated
to H.R.D/S.P.C. on joining or if any change occurs.
No advance against salary is given by the Management.
If any employee is availing Privilege Leave/Maternity Leave for 14 days or
month in any month, then the employee can request a refund for that period by
returning the unused coupons to H.R.D.
Expectations and Complaints
1. A technically trained management.
2. An organization with scientific reputation.

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3. Competitive salaries.
4. Travelling Facilities
The employees used to make fictitious receipts to get payment of travelling
expresses. They take extra advantage of this facility.
Suggestions by Employees
Suggestions are always encouraged but no extra award or recognition is given
to the employees if the suggestion or a creative idea benefits the organization in
terms of reduced cost, increase in profit etc.
RECOMMENDATIONS
1. Recruitment in HRD
In HRD, the Human Resource Manager should have some technical knowledge
in the field of engineering so that they can easily understand the problems of
engineers.
2. Suggestions Plans
For effective perception, employees should be rewarded if they offer useful
ideas for reducing costs increasing safety improving product.
Suggestion boxes should be placed at convenient locations throughout the
workplace. If the suggestion is accepted then employee should be given cash
reward based on some percentage of first years saving resulting from the
suggestion.
CONCLUSION
In the this competitive environment, where Gourmet Foods is facing tough
competition with national and multinational companies, HRD has been
successful in retaining its employees by off offering a clearly defined reward
and incentive system.

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ADVANCE HUMAN RESOURCES PRACTICES

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