Chapter # 1: Introduction of the Project

1968

1. Purpose: -

The purpose of this project enables me to understand the

Human Resource Management and shows practically how every
step is organized and how an organization is run in a systematic
way using the core functions of the Human Resource
Management. It also helps me to understand the functional areas
of an organization that enables it to run successfully in the world
of competition. Such sorts of activities are very much helpful for
the sake of students in different ways; it helps them to
understand the subject more clearly and efficiently as the
students are able to see practically what they had studied in their
course. Secondly it makes the subject more interesting and the
students are not bored. Further it helps and teaches the students
how to communicate in a professional way and they, with the
help of such activities can make there communication more
effective and professional which helps a lot in their future when
they go in the market for job search.

2. Selection of the Company: -

I had selected a national company named as “Sabro”. It is

electronics based company which means that it manufactures
different electronics products including a wide range of air
conditioners and home appliances such as televisions, DVD
players, microwave ovens geysers and stabilizers. The main
reason to choose Sabro to work is that Sabro is the first and only
company of Pakistan who is manufacturing a single product line
very successfully and is having a great number of motivated and
skilled employees which shows the strength of their Human
Resource Department. Secondly, it is the first company in
Pakistan that started on its own dealing in air conditioners and
different home appliances. They were the pioneers who brought
the concept of air conditioning system in Pakistan. Since 1968 till
now, Sabro is running very effectively and it was a great owner
for us to have the privilege to work on Sabro and seek out that

1
how they had managed such a unique and successful
environment that is still in progress.
1968

3. Scope of study: -

The scope of this project shows how a company (Sabro) has

built up its Human Resource Department and had covered the
areas including how the recruitment is done, what are the
methods of recruiting, how do Sabro train its employee, what are
the evaluation criteria, what are the compensation structure of
Sabro, What are the policies of Sabro and what is the SWOT
(strength, weakness, opportunity, threat) analysis of Sabro.
Chapter # 2: - Brief Introduction of the
Company;

“Sabro group of companies”, the biggest Air-Conditioning

manufacturer in Pakistan having biggest product range in South
East Asia. The history of manufacturing air-conditioning
equipment in Pakistan started some thirty-nine years ago when
three brothers “Ashiquue Ali, Sadiq Ali Rayee and Muhammad
Siddiqui” assembled their first equipment by designing their own
bits and pieces and achieved considerable success. The effort
continued for some time and as usual the pioneers in any human
endeavor, the hard work pay in the end. The company was
formed in 1968 and the first ten years were the hardest to
survive with the foreign competition in the local market. But the
hard work continued with the development in the manufacturing
process, offered by the team of three brothers were very much
need at those times, such as, the late sixties and the early
seventies trend of air-conditioning cinema buildings boosted the
overall sales of the air-conditioning industry. The beginning was
tough but firm determination ultimately paved the way for
success. Today, Sabro air-conditioning company is considering
being the pioneer and the biggest manufacturing organization in
Pakistan.

Since the past few years, Sabro has been test exporting to the
Middle and Central Asian countries and is directly facing the
Japanese as well as the American competition. In Pakistan
2
“SABRO” is not the only logo that has been the leader for the
domestic competitor but it has been continuously successful in
beating the foreign competition. The introduction of some
different Split type series of air-conditioners in 1989 made Sabro
1968
visible to the general public. The secret of Sabro’s success is
rather general to a management student but the two slogans
under Sabro’s flag made Sabro an organization of its kind in
Pakistan, i.e., total quality management and the network of after
sales services. Sabro is very conscious in having long term
commitment with its customers.

Inside Sabro is very experienced management team. Its strategy

and mission has also made them very distinctive from other
organizations. In Pakistan, Sabro’s mission is not only to serve its
clients for quality products worth their price but also to serve the
society with fervor and act as a model for its uplift. Another
aspect of Sabro’s long-term goal is to contribute in the
development and promotion of hi-technology in the country. At
present 75% to 90% components of Sabro products are said to be
manufactured in Pakistan and, with the passage if time this ratio
definitely will be increasing at a very rapid rate.

1. Mission Statement: -

At Sabro, by will of Allah Almighty are on the mission;

♦ To abide by Islamic rules and ways.

♦ To fulfill our customers desire for quality

products worth their price.

♦ To support our employees through better career

opportunity.

♦ To sincerely backup our business alliances.

3
 ♦ To provide highest possible return on
shareholders investments.
1968
♦ To serve the society with fever, and act as model
for its uplift.

♦ To contribute in the development & promotion of

hi-technology in the country.

2. Vision: -

“We will strive to exceed customer’s expectations

through continuous improvements in the quality of our
products and services”

Sohail Sadiq
President S.a. Brothers
(Pvt) Ltd

3a. Slogan Of the company: -

“Thinking Ahead”

3b. Logo: -

3c. Core Values: -

(We are aware);

We recognize and respect our customer’s right to receive
safe, efficient and quality product in time all the time, so that
they take pride in ownership of our product and Sabro become
their Instinct Choice.

4
(We also realize);
For us, Quality means to integrate human, technical and
material resource in a manner that evolves in optimum
production, coupled with highest possible standards, not only to
1968
meet the customer’s requirement but to exceed their
expectations.

(We Desire);
We desire to excel as a market leader in the field of HVACR,
within an atmosphere of fairness, integrity, dignity and courtesy
towards customers, suppliers, employees & competitors.

(We are Determined);

We shall always strive to achieve our above goals by
creating a quality culture in order to continuously improve upon
our processes, products & systems.

4. Divisions of the Company: -

The company is divided into ten (10) departments, which

are struggling to serve the best for the company & for their loyal
customers. Each department is equipped with highly specialized
& skilled personnel and with the modern technologies used now a
day. But before this, like all other multinational and national
companies all these departments are supervised under the
supervision of the Chairman who is the owner of the company,
the President & the COO (Chief Operating Officer). Following are
the departments which are working under Sabro.

a. Department of Sourcing.
b. Designing Department.
c. Department of Corporate Sales.
d. Finance Department.
e. Marketing Department
f. Human Resource Department.
g. HVACR Department.
h. Export & Import Department.
i. Department of Home Appliances.
j. Quality Assurance Department.
a. Department of sourcing: -

5
 The department of sourcing is the department which mainly
deals in the supply of goods inside and outside the organization
for the continuation of the organizational operations.
1968
Sourcing department is dependent on the following personnel;

 General Foreman.
 In charge of TV department.
 Production engineer.
 Manager MRP.
 In charge of P & D.
 In charge of Fan shop.
 Foreman Concordia.
 Foreman coil shop.
 In charge of paint shop.
 In charge of Con. Store
 In charge of Metal sheets.

b. Designing Department: -

The designing department as showed by its name deals

with the shaping and designing of the air conditioners and the
home appliances. Sabro tries its level best to develop new ideas
and innovate new designs which would be liked by the
customers. For the purpose of designing and shaping, Sabro is
equipped with the latest software which helps them a lot while
designing their product.
The designing department consists of the following;

 Designing manager/ head of designing.

 Trainee and Assistants.

c. Department of corporate sales: -

The department of corporate sales is dependent on the

following administration;

 Head of corporate sales.

 Manager corporate sales
6
  Assistant manager.

d. Finance Department: -
1968

The finance department deals with all the financing and

budgeting occurred in the organization. It includes all the
transactions done whether it deals in the purchasing of raw
materials or in the selling of the product to the customers.
The finance department consists of the following personnel;

 Head of finance.
 Finance Manager.
 Assistant finance manger.
 Accounts manager.
 Assistant manager budgeting.
 Assistant budgeting and monitoring.
 AO receivable senior management.
 AO cash Management.
 AO bank Management.

e. Marketing Department: -

Just like every other multinational and national, Sabro also

has its own marketing and sales department. The task of
marketing department is to promote their creation into the
market and in front of the customers.
The marketing department includes;

 Head of marketing
 Assistant Manager Marketing
 Marketing Executive.

f. Human Resource Department: -

Sabro has a separate, fully functioned human resource

department, equipped with the skillful and hard working
personnel. Human resource department has a very important role
to run the whole organization as it deals with all those major

7
functions which are required by a business to keep on running
successfully:
The Human Resource Department consists of the following;
1968

 Head of Human Resource.

 HR Manager.
 HR Officer
 Assistant Human Resource.

g. HVACR Department: -

Department of HVARC is the department which deals with

the out shore facility of the company. As Sabro has spread itself
in different parts of the country this department has an important
role to look over its franchises.
Includes the following personnel;

 Country manager
 General Manager
 Regional Manager

h. Export and Import Department: -

This department deals with the shipment or the

import/export of the product which are manufactured by Sabro.
The region to which Sabro export its products are East & South
Asia, Middle East, Central Africa & Europe.
This department is dependent on the following personnel;

 Manager Export (Europe)

 Manager Export (Africa & Gulf)
 Assistant Export.

I. Department of Home Appliances: -

It is that department that deals in the home appliances. This

department includes;

 Head of home appliances.

 Assistant Manager

8
j. Quality Assurance Department: -

Sabro tries its level best to provide its customers with the
quality product. Rather to be a quantity conscious, Sabro
1968
emphasizes on quality.
So to maintain it qualities following personnel are working in
quality assurance department;

 Head of Quality
 QA Assistant
 QA Production
 A Dispatch
 PMEL Technicians.
 QA Inspectors
 Helpers
5. Basic Aims & Objectives: -

Just like any other national or multinational organizations,

Sabro also has its own aims, its own objectives which they
consider there responsibility to fulfill them. Sabro group of
industries abide very firmly the Islamic rules, laws and
regulations which is one of the major aim of the company as it is
an Islam based company and though it is running in a Islamic
country. Secondly considers maintaining healthy environment as
its social and ethical responsibility.

Sabro is quite quality conscious as they are the pioneers in

there field, they think that producing quality products is there
main and the only strength which if not improved can harm there
company a lot. And because of the quality production, they have
maintained there powerful status their main aim is to maintain
this status in future so that they could not lose there loyal
customers as well as there reputation in the market.

One of there objective is also to provide the highest possible

return on the stake holder’s investment. Sabro is too much
curious about this fact because they do not want their
stakeholders to be dissatisfied of there investment in Sabro. So

9
for this sake they care a lot for there stake holders and count this
factor as there aim and objective.
1968
Finally, the main aim of Sabro is to extend there world class
quality production all over the world. They have a keen interest
to make there business globalize and wants it to compete in the
international market regardless to the national market only.

Chapter # 3: - Human Resource Planning

Human Resource Planning is a process in which an

organization forecasts or predicts about the future supply or
demand of the employees and matches the demand with supply.
Sabro has a unique Human Resource Planning. Basically in
Human Resource Planning a company Future supply and demand
of the workforce that is available in the market. Keeping this
thing in mind, Sabro has organized some proper steps for the
recruitment and downsizing of the employees.

First of all as Sabro is dealing in manufacturing of technical

electronics, so they do not recruit that much because of the
workforce available in there company is good enough and they
have that much expertise that there is no use of downsizing or
firing them and hire new one instead of them. But this fact is only

10
extended to limited departments and limited employees such as
Manufacturing Department, Human Resource Department,
Sourcing Department, Finance Department, Import and Export
Department etc. But there is one factor which can change the
1968
whole infrastructure of the company that is the change in the
technology.

Let suppose if a company installs any new software in any

of there department so they have to either train there old
employs so they could use that software properly or they have to
either hire new employs who are aware with the knowledge of
that software. But some time the HR planning is of great worth
when any employ resign or he is retired. At this stage there are
different plans of the company but each planning is again
dependent on the nature of the department and on the nature of
the employees that what the job he was performing was.

• If an employee who is working as a labor or helper and he is

fired, resigned or retired, then at this stage the company
has different contractors or you can say an agent who helps
the company to provide the labors. The job the contractor is
to bring labors in bulk amount. The company then chooses
the best labors who can work in there company and can
adjust themselves in the environment.

• Secondly, if an employee of middle or top level is fired,

resigned or retired, then they have a process that, as Sabro
has an online form available on there web site where
different persons can apply, the company saves the data of
each and every candidate who has applied. Then if they
need any employee, they just give a call to those persons
who had applied and offer them a job.

Hierarchy of the Human Resource Department

11
 1968
President

COO
Chief Operating
Officer

HR Manager

HR Officer

Assistant HR
Manager

Chapter # 4: - Recruitment and Selection:

12
 Sabro Group of Industries is equipped with skilled and
motivated labors and highly qualified management. But still with
the passage of time many skill labors and managers are retired
and new ones are required. So for that purpose Sabro hires
1968
employees internally as well externally. But they prefer external
recruiting more than as to internal recruitment. This is so
because there concept is that if they hire new employees, it
would be more better as the new generation has more innovative
ideas and excellent business concepts that would help the
company to be at a competitive edge.

Recruitment and Selection is the major activity at Human

Resource division. Being in the most delicate segment and in the
delivery of Quality products, every effort is made during
Recruitment and Selection process to place a right person for the
right job. Talent is drawn from diverse background via,
universities and open market with formal training that match
their job profiles.

Internal Recruitment: -

For the internal recruitment, Sabro has its own criteria that
they evaluate their employees and then decides that which
employee is eligible for which job. Each department demanding a
vacant post to fill, will initiate a request on prescribed form
signed by manager/foreman of the related department and will
send to the president for approval after the recommendation of
COO. After the approval of president, the forms are then sent to
the Human Resource Department for further recruitment process.

There are different processes used by Sabro to hire

employees, but it varies the job. If Sabro wants labor power, they
have different contractors to whom they concern. The contractor
is concerned if the company wants an employee for the post
between Scale 1 to Scale 5.Sabro has categorized into four major
components that what types of employee they require.

Advantages & disadvantages of Internal

Recruitment: -

Advantages Disadvantage

13
 1. Less time consuming and 1. Remain unaware of the
much cheaper. updated employees/candidates.
2. Employees are well aware of -----
the organization’s culture.
1968

3. A motivation for employees -----

to work hard for the next time.
External Recruitment: -

For external recruitment, Sabro has built up its web site

where the candidates can apply online. Secondly Sabro had
also organized different job fairs on several occasions which
is also a sort of a recruitment method. While

 Permanent Employees: -
A permanent employee is one who has been engaged on a
work of permanent nature which is likely to be continued for
more than nine months and he has satisfactorily completed
probationary period.

 Probationers: -
An employee who is provisionally employed to fill a
permanent place of post and has not completed his
probation period.

 Replacement: -
A replacement is a worker who is appointed in the post of a
permanent workman or probationer who is temporarily
absent.

 Contractual/Temporary Worker: -
A temporary worker is one who has been engaged for a
work which is of essentially temporary nature, liked to be
finished within a period not exceeding nine months.

Advantages & disadvantages of External

Recruitment: -

ADVANTAGES DISADVANTAGES

14
 1. Bulk/ wide variety of
candidates.
2. Highly qualified and up to
date candidates.
3. Equal Employment
opportunities even for
handicaps
4. People of different
characteristics.
1. Non availability of urgent
requirement.
2. Wastage of time and is
1968
costly.
3. Employee Demotivation
4. Have to make researches

HIRING REQUEST FORM

Department Name:
Suggested Post Title:
Suggested Salary:
FORM # SAB/HR-02
Issue No. 02
Issue Date: 06/02/07
______________________________
______________________________
______________________________

Job Description and Responsibilities:

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

Required Qualification/Experience/Skills:
_____________________________________________________________
_____________________________________________________________

15
Remarks:
1968
_____________________________________________________________
_____________________________________________________________

Deptt. Manager: ____________________ COO: ________________________

HOD Name/Signature: _______________ Director Admin: ________________
Manager HR: ______________________ President: _____________________
Date: _____________________________ Approved/Not Approved:

Chapter # 5: - Training & Development

Every company has a training plan, so as Sabro do. The products

which Sabro manufactures are highly technical and complicated while
they are designed, produced and assembled. So they train there
employees with a great attention, full enthusiasm and complete
motivation. Sabro has a well qualified staff of trainers who train and
guide the employees in a well organized and in a systematic way.

Training Plans: -

Sabro has its own training plan which they conduct on annual
basis; so that they could train there employees about the new and the
latest technologies which they could use and take the maximum
advantage of them in there work. This also helps the employee to
make them updated with the latest happenings around them.

Each department has its own and separate training plan. It

depends on the nature of the department that which sort of work they
are dealing in. let suppose if the manufacturing department is in need
of training, so the training personnel will train there employees with
the machinery handling techniques and different solutions to the
problems which they might face while working on a machine or if the
I.T department is in need of training, the training will be completely
different as compare to that of the manufacturing department as the
16
I.T department will train the employees about the new soft wares and
the latest technology using nowadays to be efficient.

Sabro simplifies its training plan by a way which involves that

1968
they will first appraise or evaluate the whole performance of the
company including all the departments and there employees. After this
step they will seek out that which department needs to be train as they
will be able to know this through the performance of that specific
department. Through this process they will be able that what the areas
where the department is lacking are. After there research, Sabro than
organizes a training session to over come all those flaws and the
drawbacks which the department has done and after the completion of
the training they then try not to do the same mistakes again.

Methods of Training: -

Sabro use several different methods which they use to train there
employees but there are two main methods that they use very
frequently so that they could overcome the drawbacks which there
employees has done.

Following are the methods;

1. Direct Training Method: -

The first method for training which is used by Sabro is called as

direct method, in which the company train the new recruit with there
own trainers. These trainers are those people who are already working
in the company i.e. those who are the old employees. These old
employees are much experienced then the new one that is why they
are chosen to train the new employees. But the trainer depends on for
which post or job the recruitment is done, like if a person is hired for a
post vacant in the manufacturing department, than he will be trained
by his seniors who have been working there before him. And if a
person is hired for a post of any manager level, then he will be trained
by director and other senior personnel’s. For the company, the method
of direct training is much cheaper as the trainers are there own
employees and the company faces less expense will training new
employees directly.

2. Consultant Training Method: -

17
 The second method of training that is been used by Sabro is
Consultant Training Method. In this method what company use to do is
that they hire some consultant or trainers which are basically an
1968
employee who is working in an other organization? They hire such
people because they think that they have more expertise then there
own employees. But is this method, Sabro only hirers those trainers
who are working in a more superior company than Sabro. Sabro use
this method of training very rarely because firstly it is much expensive
as compare to Direct training method, secondly as being the pioneers
in there field they do not think that there is any company which is
superior than Sabro.

Training of New Employees: -

The basic problem for the company is to train the new recruit
because as they are new, and some of them are also freshly graduated
student, so they are unaware to the company’s environment and its
culture. So as the training process is a time consuming and much
expensive process for a company to conduct that’s why it is a bit
difficult for the company to train the new employees but still they train
there employees very well.

The training of new employees includes the orientation of the

company which tells them about the history of the company, there
presidents, Board of directors, Chairman, Chief Operating Officer Etc.
In this training session the company also train them for the job which
they are hired for. After this, the company further train there new
recruits about different things such as Total Quality Management, ISO
Familiarization, basic RAC concepts and many other things which they
should follow while doing there jobs. Further during the probationary
period, the new employees are assigned to watch the work of the old
employees that how they are working and learn from it.

Training Old Employees: -

Comparatively to training the new employees, it is much easier
for Sabro to train there old employees. As these types of employees
are old they are well aware of the companies’ rules and regulations.
They are just trained for there new job which there are promoted for.
Further the training session for the old employees is much shorter than
that of the new employees training session.

18
 1968

SA BROTHER’S PVT. LIMITED

ORIENTATION CHECKLIST

19
 Welcome Message:

1968
Working Hours:

Leave Policy:

Office Introduction:

Factory Visits:

Joining Reports:

Job Description:

Personal Data Sheet (Submitted To HR):

Provide HR Photocopies of all Documents:

Name: ___________________________

Designation: ______________________

Deptt: ___________________________

Signature: ________________________

HR Signature: ____________________ Date: ____________________

20
 Chapter # 6: - Performance Appraisal

1968

Performance appraisal is very important step in any organization,

whether the organization nature is to provide services or
manufacturing product. Same is the case with Sabro, as the field
at Sabro is highly technical, so is the performance appraisal of
the company. It is very important for Sabro to appraise their
employees because each and every single employee has a very
important role in manufacturing .a single unit of their product .if
any employee, doesn’t perform its duty well , then whole process
of manufacturing will be disturbed , in short each employee and
department is interlinked with each other.

Time of Appraisal:-

Sabro evaluate its employees and then department

annually , but some times they do appraise bi-monthly and
monthly, it depends if the employee is not performing well , but
in the case of probation period , Sabro evaluates the on daily
basis to keep check that whether the employee which they have
hired is productive or not .

Basis of Appraisal:-

The only base at which they do the appraisal of the

employee is their performance, so that they could keep their
records up-to-date. Sabro’s performance appraisal and
compensation system is aimed at increasing employee
performance. Involvement in the achievement of the goals and
objectives of the organization and encouraging individuals to go
beyond their scope of the work and to voluntarily contribute in
achieving the targets of the organization.

Methods of Appraisal: -

1) Strategic methods

1
 Link employee activities to corporate goals, this involves
“match game’ we observe that which job he can better
perform then assign that job to the employee , so that he
efficiently perform that job and provide better output , this
1968
also relax the employee with the job.

2) Administrative methods

Salary, legal documentation, termination of employment,

identify potential, this is all used for the better security of
the employee so that he fell safe at work ,and also
because to stop the violation of the rules and regulations
and ethics of the organization and to provide the salary
packages more efficiently to the employees.

3) Development methods
.
Develop employees who are effective at their job, promotion,
training, recognition, motivation, this is the very important
method of the organization to make the employee more
productive and to make him loyal to the organization, the nature
of the person is so like that if he is little appreciated or
encouraged he perform better next time, even the “person
nothing become some thing” in this method we emphasize on
this sentence.

Our major emphasize is on the employee, because if

they are well equipped with the skill and knowledge he can
perform better in giving output, and can add so much to the
prosperity to the organization.

Performance appraisal form is given at the end.

2
 1968

PERFORMANCE APPRAISAL FORM

SAB/HR/PA/20
SA Brothers (Pvt) Ltd
Employee Appraisal Form for
Conformation/Special Increment/Transfer/Promotion

Type of Review

Mid Probation Probation Annual Other

Name of Employee_________________________ Designation_____________________

Department_______________________________ Date of Joining__________________

Present Salary_____________________________

Recommended Salary/Increment: ____________________________________________

NOTE: Please evaluate the employee on job being performed during above mentioned
period. For each factor, clearly express your judgment.

KEYS OF GRADING:

EP = Exceptional Performance AA = Above Average

AV = Average BA = Below Average

PART 1: Personality

3
 S# Trait Model Description EP AA AV BA Remarks
01 BEARING Well Dress, create
excellent impression
02 BEHAVIOUR Courteous & Helpful 1968

03 HEALTH Energetic, Vigor & Very

rare Illness

NARATIVE COMMENTS:

_______________________________________________________________________
_

_______________________________________________________________________
_

PERFORMANCE APPRAISAL FORM

SAB/HR/PA/20

PART 2: Nature

S# Trait Model Description EP AA AV BA Remarks

01 HONESTY Honest & Straight
Forward
02 TRUSTWORTHY Trust & Reliability in
work & other matters

NARATIVE COMMENTS:

_______________________________________________________________________
_

_______________________________________________________________________
_

PART 3: Job & Performance

S# Trait Model Description EP AA AV BA Remarks

01 PUNCUALITY Always on time & very
rare take leaves
02 DICIPLINE Observe rules &
regulation very strictly

4
03 JOB Has sound knowledge
KNOWLEDGE of relevant job
04 QUALITY OF Neatness & Accuracy
WORK of the individual 1968
05 QUANTITY OF Ability to meet
WORK performance required
by maintaining
standards
06 DEFENDABILITY Always prepare to take
on responsibilities
even in difficulties
07 COOPERATION Always corporative to
complete work
smoothly

NARATIVE COMMENTS:

_______________________________________________________________________
_

_______________________________________________________________________
_
OVERALL COMMENTS

_______________________________________________________________________

_______________________________________________________________________
_

Performance % of Grading Grading Marking Point

EP 80% to 100% A+ 4.0
AA 70% to 79% A 3.0
AVG 60% to 69% B 2.5
BA 50% to 59% C 2.0

TOTAL MARKS 48
MARKS OBTAINED _________

OVERALL GRADING
A+ A B C

REMARKS
_______________________________________________________________________
_

5
RECOMMENDED BY MANAGER/HOD
1968
___________________________________ Signatures: ___________________________

COMMENTS:

COO
_______________________________________________________________________
_

__________________________________ Signature: ____________________________

DIRECTOR ADMINISTRATION
_______________________________________________________________________
_

__________________________________ Signature: ____________________________

PRESIDENT
_______________________________________________________________________
_

_________________________________ Signatures: _____________________________

APPROVED NOT APPROVED

Chapter # 7: - Compensation Structure of
Various levels of Management

What is compensation administration?

The process of managing a company’s compensation program.

The goals of compensation are to design a cost-effective pay
structure that will attract, motivate, and retain competent
employees.

In SABRO there is also the compensation administration that

looks after all the compensation structure and related matters.

Types of employee rewards: -

6
 There are several ways to classify rewards. We have selected
three of the most typical dichotomies: 1968

I. Intrinsic versus extrinsic rewards

• Intrinsic rewards
Rewards one receive from the job itself, such as pride in
one’s work, a feeling of accomplishment, or being part of a
team this employee reward is also practiced in the SABRO.

• Extrinsic rewards
Rewards one gets from the employer, usually money, a
promotion, or benefit. This employee reward is also
practiced at all levels of management in SABRO.

II. Financial versus non-financial rewards

• Financial rewards
Rewards may or may not enhance the employee’s financial
well being. If they do, they can do this directly, for instance,
through wages, bonuses, or profit sharing, or indirectly,
through employer-subsidized benefits such as retirement
plans, paid vacations, paid sick leaves, and purchase
discounts.

• Non-financial rewards
Non-financial rewards cover a smorgasbord of desirable
extras that are potentially at the disposal of the
organization, this is not practiced in the SABRO.

III. Performance-based versus membership-based

rewards

• Performance-based rewards

7
 Rewards exemplified by the use of commissions, piecework
pay plans, incentive systems, group bonuses, or other forms
of merit pay. This is also practiced in SABRO.
1968

• Membership-based rewards
This include cost-of-living increases, benefits, and salary
increases attributable to labor-market conditions, seniority
or time in rank, credentials (such as college degree or a
graduate diploma), a specialized skill or future potential
some of the features of this are included and some are not
included.

Some of the above employee rewards are practiced in the SABRO except the non-
financial rewards there is the administration that look after all theses matters and
fulfilled them successfully.

Pay structure

The pay structure in the SABRO is of that sort, that the pay rates
or ranges are compatible with the ranks, classifications, or points
arrived at through job evaluation.

Incentive compensation plans

This is typically given in addition to---rather than in place of----the

basic wage, incentive plans are viewed as an additional
dimension to the wage structure this is also practiced in the
SABRO.

Paying for performance

Rewarding employees based on their performance, this is also

important as it is also a motivational factor for the employee and
this is also practiced in the SABRO.

Performance Appraisal
8
Sabro’s performance appraisal and compensation system is
aimed at increasing employee performance. 1968
Involvement in the achievement of the goals and objectives of
the organization and encouraging individuals to go beyond their
scope of the work and to voluntarily contribute in achieving the
targets of the organization.

1) Strategic purpose

Link employee activities to corporate goals

2) Administrative purpose

Salary, legal documentation, termination of employment,

identify potential

3) Development purpose
.
Develop employees who are effective at their job,
promotion, training, recognition, motivation

Performance appraisal form is given at the end.

Compensation at different levels of management

Compensation system in SABRO Is annual based and compatible

with the rank means level of management; there are three
different levels of managements given below:

• Upper management

In SABRO upper management is provide with the car, mobile

with balance, laptop, and other facilities common among three
of the management levels like medical, rent and etc.

• Middle management

Middle management is provided with motor cycle,

personal load, medical and etc.

9
 • Lower management

Lower management is provided with the zakat, social

1968
security card, medical and etc.

LEVEL OF SALARY COMPENSA

MANAGEMENT TION
Chairman Percentage of ---
the Profit
President Percentage of ---
the Profit
Chief Operating Officer Rs. 70,000 + Car 2000cc,
Cell Phone
Head of the Rs. 50,000 + Car 1600cc,
Departments Cell Phone
Managers Rs. 39,000 + Car 1000cc,
Cell Phone
Assistant Managers Rs. 21,550 – Motor Bike,
24,550 Cell Phone

Supervisors Rs. 20,550 – Cell Phone,

22,550 Transport
Allowances
Lab Assistants Rs. 16,350 – Transport
18,350 Allowances
Helpers Rs. 10,000 - Transport
15,000 Allowances
Labors/Workers Rs. 8000 - Transport
11000 Allowances

10
 1968

Chapter # 8 Job Analysis;

Job Description: -

A written statement of what the job holder does, how it is

done & why it is done.

Job Specification:-

Statement indicating the minimal acceptable qualifications

incumbents must possess to successfully perform the essential
elements of there jobs.

Job Evaluation: -

Specifies the relative value of each job in the organization.

“Human Resource Officer (M. Latif)”

Job Description: -

Human Resource Officer is responsible for the following to

Manager Administration;

• To hire quality staff through an effective recruitment

process and an attractive employment environment.

• To train for quality staff through relevant and motivating

professional growth opportunities that meets the needs of
the employee and organization.

11
 • To retain quality staff through a comprehensive approach
reflecting best practices in employee relation that
encourages commitment to the employer and employee.
1968

• To prepare monthly payroll of employees.

• To prepare work permit cards for employees performing

special processes in the organization and to maintain the
records of permits issued.

• To prepare training schedule of whole year, make

necessary arrangement relating training and to maintain its
record.

• To involve in hiring activities of employees, according to the

given authority and policy of the company.

• To prepare personal files of new staff.

• To maintain computerized record of employees of the

company.

• To make necessary arrangements regarding internship

according to the policy of an organization.

• To conduct visit of personnel of various organization as

approved by the competent authority.

• To conduct factory visit/ orientation of newly hired

employees.

• To do correspondence about training, internship, visits and

administrative matters.

• To deal with the personal problems of employees.

Job Specification:-

12
 The job specification of the Human Resource Officer is that
is must be a qualified person in his related field. As he is the
Human Resource Officer so his minimum qualifications at the
point of hiring should be a master degree holder in Human
1968
Resource Management with a minimum experience of 3 years
working in the related field.

Mr. Latif is a well qualified Human Resource Officer as he is

working in Sabro for 7 years and serving his efforts as an HR
Officer for past 4 years. He is a qualified graduate from Quaid-e-
Azam University and has an experience of 3 years working in his
related field in a national company before he joined Sabro.

Job evaluation: -

Mr. Latif evaluates his job very clearly. As he is the only

Human Resource Officer of the company, his job is of great worth.
All the HR responsibilities of the company are on his shoulders
after the Human Resource Manager.

“Head of Sourcing ( Ahmed Siddiqui)”

Job Description: -

• Interact with existing clients in the national market, respond

to the queries in consultation with the President and
enhance business relationship.

• Keep well informed on company products, Increase

Company’s export to other cities by searching new clients.

• Maintain record of letters, faxes, telephonic regarding

enquiries and their follow ups.

• Keep in liaison with concerned departments through the

president to communicate the client’s special requirements
(if any), order specification and time frame etc

13
 • Informing the President on the current order status.

• Keeping the clients update on status of orders as necessary.

1968

• Communicate with operations staff for preparation of

documents and making arrangements as required.

• Arrange for after sales service for the clients and resolve
quality related issues in consultation with Quality Assurance
Department.

• Ensure implementation of departments standard operating

procedure review and update it periodically.

• Maintain and control of relevant records.

• Arrange training for the staff regarding QMS as appropriate.

• Suggest corrective actions, preventive actions for potential

non conformities and suggestions for improvement in work.

• Perform any special duty assigned by the president.

Job Specification: -

The Job Specification of the Head of Sourcing is also on the

main job which runs the organization. The minimum qualification
for the post of Head of Sourcing is masters degree in Business
Administration and a minimum experience of 5 years in the
purchasing and selling of goods.

Job Evaluation: -

The job of sourcing is of great worth as it is the department

that deals with the purchasing of raw materials and selling of the
manufactured products which is basically the main reason why

14
the business is running. So this shows that how much great worth
does the job of Head of Sourcing has.
1968

Chapter # 9 Occupational Health and Safety

(Policies)

Policy statement

The SABRO is firmly committed to developing, implementing and

observing a safe observing a safe and healthy work environment

15
for staff members and other visitors and to continually improving
the systems, practices and appropriate resources to achieve this.
Sabro is already working on Environmental Management System
ISO 14000. A safe and healthy work environment is achieved
1968
through the co-operation and compliance of every staff member
with Sabro procedures and relevant work standards which are
developed through a participatory approach. Contractor’s health
and safety policies are compatible with this policy.

• Purpose

To set out the Sabro’s commitment to a safe and healthy work

environment and to outline responsibilities for pro-actively
managing risk and preventing accidents.

• Responsibilities

The Manager Human Resource & COO have ultimate

accountability for providing and maintaining a safe and healthy
work environment. Mangers, Foremen, Supervisor of staff and
others in positions of responsibility share the accountability for
managing health and safety within their areas of control as an
integral feature of their day-to-day activities.

Managers & Foremen will take all practicable steps to provide

and maintain a safe and healthy work environment by:

• Establishing and implementing appropriate standards and

procedures;

• Establishing and insisting upon safe methods, safe

equipment, proper materials, and safe practices at all
times;

• Providing effective training for staff as appropriate and;

• Complying with current Sabro’s policy, legislative

requirements and relevant standards.

16
Supervisors / In charge are responsible for the health and
safety of staff members in the same way that they are
responsible for quality, efficiency and maintenance. Safety will
take precedence over short cuts and expediency at all times.
1968

Staff members are responsible for observing safe work

practices, following procedures and complying with relevant work
standards and statutory obligations. Staff will be encouraged to
participate in health and safety forums.

17
 Chapter # 10 SWOT Analysis of the 1968

HR System;
SWOT Analysis: -

SWOT Analysis is the analysis of an organization’s

strengths, weaknesses, and opportunity of threats that they
believe they have or might have. The SWOT of a company varies
from time to time and through the condition and situation of the
company. There are different are different factors that could
affect the company or be a company’s SWOT.

SWOT Analysis of the HR system of Sabro: -

Strengths:-

a) Loyal intelligent and technical workers: -

One of Sabro’s strength is the loyal and the intelligent workers which
are well trained to work efficiently and produce good quality work for the
organization.

b) Internationally reorganization: -

Sabro thinks that the major strength of there organization is that they
are the first company of Pakistan who is dealing in the manufacturing of air
conditioners and different home appliances as well as they are exporting
there products in different countries too.

c) Modernize technology: -

The work or the field in which Sabro is dealing is highly technical

and requires a lot of perfection in there work. So for good production and t
satisfy the customers need, Sabro is equipped with the update
technologies used in the world which is one of the strength that over there
competitors.

d) Good, efficient workforce: -

18
 Having a good efficient work force is obviously counted a strength of
an organization, which Sabro think that they have a lot.
1968

Weaknesses:-

a) Weak Infrastructure: -

The main and the only weakness of Sabro is that they have a weak
infra structure in a sense that in some areas the company lacks a decision
making power. Like if the company has an idea of manufacturing a
product, they are not sure about it. They just keep it as an idea and do not
work on it practically. Sabro thinks that this weakness is because that they
are very much conscious towards a fact that there product might not be a
success in the market,.

Opportunities:-

a) More and more employment opportunities: -

Sabro has a good opportunity that ore and more newly graduates
will apply for different posts vacant in Sabro. This will provide the new
generation an opportunity to make a carrier and will bring an opportunity
for Sabro to have new well qualified employees.

b) Availing new technology for training programmers: -

Availing new technology for the training programmers is also an

opportunity for Sabro as such types of opportunities strikes the door step
very rarely. As this is the era of new technology and innovation, there are
different new soft wares which are being introduced in the market. If the
company avail the opportunity to purchase such soft wares, they can make
there training process much easier and more efficient.

Threats:-

a) High competition: -

One threat that the company has is that as the market is

19
growing very rapidly, more and more companies are getting into
this business, which is a great threat for the company that it
might be possible that any company in future might come over
the Sabro.
1968

b) Technology cost: -

Technology cost is also a treat for Sabro as the technology

is enhancing day by day so do the prices of different
commodities.
c) Government Laws: -

The final threat the Sabro has is from the government. As in

Pakistan, the political condition is very bad and no one knows
about the future that who will be the next leader of the country
and what law and regulation he will implement. So this is the
major threat hat Sabro has from the Government.

20
 1968

AWARDS AND HONORS:-

1985
• -1st prize in 2nd National Industrial Exhibition
Islamabad

1986
• Merit Trophy for best Industrialist by ICCI

1989
• Special prize in National Industrial Exhibition Lahore by
Ministry of Industries Punjab

1991 • Merit Trophy for Export Performance by FPCCI

• Excellence Award by ICCI

• Shield of Valuable Tax Payer by Pakistan Customs

• Special Prize in National Industrial Exhibition Lahore by
Ministry of Industries Punjab
1992
• Special Prize in Science and Technology Fair in
Islamabad by Pakistan Science Foundation

• RCCI export trophy 19992 for excellent performance in

Export of Split Air Conditioners.
1993

21
 • Gold Medal in 10th International Industrial Exhibition by
ICCI RCCI Shield 1993 for best performance in AC
Industry. 1968

• Excellence Award by Pakistan Science Foundation.

1994 • Award in 11th Annual International Industrial Exhibition
of Islamabad Chamber of Commerce.

• Trophy Expo 94 by Pakistan Scientific and

Technological information center.

• RCCI Export Trophy for excellent performance in export

of Split Air Conditioners.
• Award in 6th All Pakistan Software Competition and
1995
Exhibition
• Excellence Quality Award 95 in Industrial Fair Lahore.

• Award RAC 95 Second National Conference and

Exhibition on Air Conditioning Refrigeration Technology.

1996
• Award in 3rd National Conference on Air Conditioning &
Refrigeration Technology Pakistan GVACR society,

1997 • Achieved ISO – 9002 Certificate.

• Award in 4rth National Conference Exhibition on PRC

• Excellence Award by Islamabad Chamber of Commerce

1998
& Industry.

• Award in 5th National Conference Exhibition RAC

1999
• Award in 6th National Conference Exhibition on RAC.

22
 23
1968