Human Resources Management Of Engro Foods:

The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment
process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of
candidates are carefully filed and documented for current or future reference. The department,
besides carrying out succession planning, maintains and implements HR policies pertaining to
employment, retention and superannuation. Assessing training needs of employees and ensuring
adequate training is also carried out by the professional HR team at Engro Foods. The company
believes that the best way to become integrated into their organization is to start contributing to it
and to become accepted as part of its working community. For this reason the company
concentrates on:
Placing an employee in an initial job which starts to use strengths and matches stated interests.
Providing an orientation program which helps understand the Company and its Environment.
Introducing an employee early in the career to the people development system and giving him/
her feedback on own performance from the first year. In cases where traineeships are provided,
these are designed to bring employee up to the standard of skill and knowledge required in the
shortest practicable time. The principle of early job responsibility is followed wherever the
company can.

THE RECRUTMENT PROCESS:

The recruitment process is taken very seriously. It is vital that Engro select people with qualities
essential for its continued success. Its human resource team is comprised of experience
recruitment professional with diverse backgrounds. During the recruitment process objective
view is taken and best practices are followed. Engros recruitment methodology is based on
examining capabilities or competencies. These capabilities are sets of behavior skills and
knowledge that can be determinants of job success and focus on the role requirements. Thereby
insuring consistency and accuracy in assessments and increasing the reliability of the selection
process. The recruitment is different for two different categories of people. First is the
Management Profession and Technician and the second is Non Management Profession and
Technician. There are seven different division of Engro. All have separate HR departments which
evaluate the candidates for respective positions in their division

IDENTIFICATION OF NEED:
The first step is to check whether there is a requirement for new selection. If there is a new
position to be developed then COED checks for that. If an already existing position has become
vacant due to any reason, then the department notifies the Human Resource Department to place
advertisement in the newspapers.

ADVERTISEMENT:
After the identification of need, the Human Resource department places the advertisement in the
newspaper to call for resumes. The advertisement specifies the job description and the job
specification.

JOB DESCRIPTION:
These are the listing of duties as well as desirable qualifications for a particular job e.g. the
advertisement also specifies number of years worth of experience to apply for the job.

JOB SPECIFICATIONS:

These are the characteristics and the abilities required from a person to work in that position such
as leadership and teamwork qualities or command over English.

APPLICATION FORM SUBMISSION OF RESUME:

Application forms enable the candidates to present a complete picture of their talents, interests
and ambitions. It is the first stage of evaluation and the basic criteria for initial selection. The
candidates must present a resume which makes the person stand out.

EVALUATION OF RESUME:
After the resumes of hopeful candidates have been received, the HR department checks all the
resumes of the people who have applied. In its evaluation the HR department checks the
experience and the qualities of the individual and matches them to the requirement of the job.

SHORT LISTING:
After the evaluation of the resumes the HR shortlists the candidates who have fulfilled the
minimum requirement of the job description and specification.

TEST:
The test is conducted by the HR department. In the test the managers check the IQ level, English
Composition and Logic. The duration of the test is exactly one hour. The test is checked manually
and is done by the HR department.

INTERVIEW:
The candidates who have successfully cleared the tests and have scored above than relevant mark
are then called for interview. The interview is conducted by four people, on executive and three
managers. All the four interviewers should preferably be from within the department but often
that is not the case.
The purpose of the interviews is to check the persons subjective skills which are difficult to
measure such as attitude, communication skills, abilities and personality. During the interview all
four person mark the candidate individually and then put forward a cumulative mark. These are
the marks against which different candidates are differentiated.

RECOMMENDATION TO HUMAN RESOURCE DEPARTMENT:

Following the interview the employee of the particular department goes to the HR and gives
recommendation to the HR manager regarding the interview of the candidate. The HR then
conducts an interview with the candidate where they decide the Grade scale of the candidate, the
different benefits and the pay scale.

MEDICAL:
After the terms of contract is agreed upon, the candidate is asked to have a medical test.

HIRING:
After the medical test, the candidate is referred back to the relevant department with the contract.
If the department agrees upon it, then the candidate is hired.

TRAINING AND DEVELOPMENT MODEL:

The HR department, besides carrying out Succession planning maintains and implements HR
policies pertaining to employees training, retention and superannuation. Assessing training needs
of employees and ensuring adequate training is also carried out by the professional HR team at

Engro Foods. In year 2005, the Ministry of Industries and Production also established Olpers
(Dairy Pakistan Company) on the lines and the main objectives of the company are to promote
training and skills development of human resources associated with the dairy sector.

On-the-Job Development at Olpers:

The Engro foods company believes strongly that people grow and learn most effectively through
experience. Therefore, every opportunity is sought to try to develop an employee through work
related experience. Such development implies an expansion or stretching of abilities or aptitudes.
It has to be based on the knowledge, skills, and aspirations within oneself. This form of
development needs to be understood and actively supported by the employee and the supervisor.
Candid discussion in all employee interactions is encouraged and serves as an effective
communication tool. Relative to other dairy companies, Engro places a lot of emphasis on
development of its technical resources also. This has resulted in Engro being able to efficiently
develop and implement large technological projects successfully.

Training and Education at Olpers:

The Engro Foods Company has a range of training programs, both core management and
technical, which are used on a regular basis to develop skill and knowledge. In addition ENGRO
FOODS COMPANY do need assessment of training programs and leads to inputs into the overall
training plans of the company to help them work towards realizing their full potential and then
after that they do formularize evaluation of those programs and also uses different Training
methods for their employees which are as follows:
Continuous learning.
Cross training
Distance learning
Multimedia training
Near transfer training
On-the-job training (OJT)
Team leader training.etc
Alternatively, individuals may attend externally run programs and there may be cases where
learning by planned job experience is the best answer according to different circumstances within
the company. Employees contribution to assessing own training needs are welcomed as are the
suggestions for suitable programs. To address future manpower needs of the company, employee
career, training and succession planning activities are undertaken on an annual basis.

Training and Resource Centre at Olpers:

Training and Resource Centre is the only teachers training facility in Ghotki district. Since its
inception in 1999, more than 2500 teachers of Ghotki district have been trained at the centre. A
team of 4 full time PDTs carryout general and subject specific training sessions.

Sahara Welfare Society:

The reach of vocational training program was increased with co-funding of USAID and
(International Youth Foundations) program (Education and Employment Alliance). Sahara
Welfare Society, a non- profit voluntary organization managed by company employees at
Daharki, runs a primary school, vocational training school and a free clinic.

HR MODEL:

Engro Foods Company uses this HR Organizational model which basically describes the
difference between main HR actors in their company to makes sure, on the one hand, that the
company acts in the interests of employees by giving them opportunities to advance their careers;
and on the other hand, that employees bring as much value-added as possible during their stay in
the company. There are two different roles within the HR department of Engro Foods Company:
The organizational ones and the operational ones.
The organizational roles of HR department of Engro Foods Company include:
Human Resources management, including HR support to business and HR design & delivery and
Legal obligations including employee relations and well-being programs. The operational roles of
hr department of Engro Foods Company includes: People management, including company
manager and Personnel management, including industrial relations managers (HR local
specialists) who maintain relationships with other dairys HR specialist in order to remain
competitive in this global world and to sustain long-term growth for the company. Both roles are
in fact involved in the HR process as far as they are responsible for the day-to-day HR
management in the Engro Foods Company.

COMPENSATION
APPRAISALS:

AND

BENEFITS/

PERFORMANCE

The Company's Total Remuneration package is competitively aligned to the best in the industry
and is appropriately balanced between providing cash compensation and benefits, including,
medical and retirement benefits. The annual salary rewards are linked to employee performance.
An Employee Share Option Scheme operated by the Employees Trust offers new employees the
opportunity to acquire ownership in the Company.

Highest Salaries:
The salary packages Engro foods offer its employees the highest remuneration package thats far
above the industry average. And that's a major part of its compensation philosophy to always
keep employees above their profile's market value. So be you an experienced professional or a
fresher, at Engro foods, you'll get the highest salaries ever.

Gain Sharing:
On top of their highest salaries and outstanding benefits are their performance based bonuses.
And its performance gauge is very different. They don't base employees performance on defined
targets - they base it on a certain percentage of the top performers among you. So every quarter,
the top 50% performers qualify for bonuses.

Benefits:
At Engro Foods, they value quality human resource. Their employees lend the creativity and
passion to meet business challenges with bold new ideas. It offers unparalleled employee
benefits, ranging from medical, to financial and recreational. They want to keep their most
important asset - their people - healthy and happy.

Travelling and Subsistence Expenses:

All employees will be reimbursed for any travel and subsistence expenses incurred in the course
of their duties. Holiday: Each employee is entitled to a basic 23 days holiday per year. However,
for some people this amount is either too much or not enough. For this reason, all their employees

have the flexibility to trade salary and holiday. Employees can choose between 15 days and 30
days holiday per year, with the maximum rising to 40 days per year after two years' service.

Car Allowance:
For consulting positions a car allowance is included in the package.

Pension and Life Assurance:

After three months' service, every employee has the option to join the company's group personal
pension scheme, or to take a cash alternative. All employees are covered under Life Assurance
from their first day with Engro foods. The company contributes to the scheme and reviews its
contributions on a periodic basis, to ensure that these remain suitable, attractive and fair.

Permanent Health Insurance:

Engro Foods provides Permanent Health Insurance to all employees from their first day.

Health Scheme:
After six months' service, an employee can elect to join the company's VIP

Private health :
To ensure employee participation and commitment to the system, the format draws
heavily on the employees own assessment of his job performance, training and developmental
needs, career aspirations and any other employee related item that needs to be addressed. Candid
discussion in all employee interactions is encouraged and serves as an effective communication
tool. The system also focuses on the employee's training needs and leads to inputs into the overall
training plans of the company to help them work towards realizing their full potential. Relative to
other chemical companies, Engro places a lot of emphasis on development of its technical
resources. This has resulted in Engro being able to efficiently develop and implement large
technological projects successfully. To address future manpower needs of the company, employee
career and succession planning activities are undertaken on an annual basis. Engro values people
with passion, creativity, leadership, strong communication skills and the drive to deliver and
compensates them according to their relative performances. Engro Foods Limited carried out
certain compensation and performance

APPRAISAL PROJECTS:
REWARD MANAGEMENT:
The reward management however are strictly performance driven and every opportunity is used
to reinforce the culture of reward for performance. To promote and strengthen a keenly
competitive environment within the organization for enhanced quality and productivity, en
elaborate performance assessment and employee development system has been institutionalized
which by design forces objectivity in employee appraisal against given dimensions of
performance evaluation.

PROJECT HOPE TELEMEDICINE INITIATIVE:

The Project Hope Telemedicine initiative by Engro makes available doctors in no less than fifteen
medical specialties ranging from neonatology to cardiology on a daily basis - and free of cost, to

the communities. The project has provided online consultation by specialist doctors to about 1400
patients to date

CONCLUTION
Human Resource at Engro believes in learning by doing. Therefore adequate arrangements are
made at the organization to impart training to the staff. It can take the shape of internal (inhousetraining) or external training depending on the specific need of the target audience. Staff is
made to do things so that they get a firsthand experience. Engro Food is one of the few
organizations that have through training contributed not only to the employees but to the
community at large. Social investment projects were organized and more than 1,30,000 people
from a cross-section of society benefitted from it. The concept of a big organization involved not
only in producing excellent products like Olper but also involved in community welfare has had a
very positive impact on the image of Engro Food. All these factors helped Engro Food not only to
enter the market but capture 22% of the market is a very big achievement against any local or
international benchmark. It had to fight against an image of chemicals, fertilizers to that of quality
milk, not an easy transition, still they belief where there is a will there is a way. The result of
effectively managing human resources is an enhanced ability to attract and retain qualified
employees who are motivated to perform, and the results of having the right employees motivated
to perform are numerous. They include greater profitability, low employee turnover, high product
quality, lower production costs, and more rapid acceptance and implementation of corporate
strategy. These results, particularly if coupled with competitors who do not have thigh people
motivated to perform, can create a number of competitive advantages through human resource
management practices.
HUMAN RESOURCE MANAGEMENT (Last reviewed by Board of Directors in December
2009)
It is the policy of Engro Corporation Limited to attract, induct, develop, retain and
motivate high caliber talent who are qualified, capable and willing to contribute
their best towards accomplishment of Company objectives. To achieve this, Engro
will pursue high standards of Human Resource Management practices
encompassing following principles:
Equal Opportunity Provide equal opportunity to all job applicants through clearly
defined and consistently applied induction standards. Create a work environment
where every employee has an equal opportunity to develop his or her skill and
talents.
Training and Development Provide opportunities to employees to acquire
knowledge and develop technical and managerial skills through class room training
and on the job development that meets employee and Company needs.
Performance Management Have a transparent and merit based performance
management system in place. Have a formal career development and succession
planning system. Clearly defined system for career progression based on merit and
potential.

Compensation & Benefits Rewards policies aligned with best companies in the
market that compete for high quality talent. Clear linkage of rewards policies with
performance and potential.
Diversity & Non Discrimination Provide an environment free from all forms of
discrimination and harassment at workplace. Policies aimed at creating flexible and
conducive working arrangements for all.