PEL…Change your life

PEL PROFILE................................................................................................................................................2
MISSION STATEMENT........................................................................................................................................3
HR VISION.....................................................................................................................................................3
HR MISSION...................................................................................................................................................3
ORGANIZATIONAL STRUCTURE............................................................................................................................4
RECRUITMENT............................................................................................................................................5
JOB ANALYSIS.................................................................................................................................................5
WRITING JOB SPECIFICATIONS............................................................................................................................5
EMERGING TALENT ..........................................................................................................................................7
QUALIFICATION INVENTORIES (DATABANK)..........................................................................................................7
APPLICATION PROCEDURE..................................................................................................................................8
SELECTION...................................................................................................................................................8
BACK GROUND & REFERENCE CHECK................................................................................................................9
REJECTION.......................................................................................................................................................9
JOINING REPORTS AND PERSONAL FILE DOCUMENTATION..........................................................................................9
EMPLOYEE HANDBOOK PROVISIONS....................................................................................................................10
HUMAN RESOURCE DEVELOPMENT (HRD).....................................................................................10
TRAINING......................................................................................................................................................10
SAFETY TRAINING OF EMPLOYEES......................................................................................................................10
EMPLOYEE DEVELOPMENT PROGRAM..................................................................................................................10
PERFORMANCE APPRAISAL.................................................................................................................11
MAIN FOCUS OF PERFORMANCE APPRAISAL ......................................................................................................11
DIRECTION OF PERFORMANCE APPRAISAL..........................................................................................................11
REWARDS & BENEFITS...........................................................................................................................11
BONUS..........................................................................................................................................................11
LEAVES.........................................................................................................................................................12
PROVIDENT FUND...........................................................................................................................................12
ZAKAT & TAXES...........................................................................................................................................12
MEDICAL ALLOWANCE....................................................................................................................................12
UNIFORM AND LOCKER FACILITY.....................................................................................................................12
PERFORMANCE AWARDS..................................................................................................................................12
LOANS..........................................................................................................................................................12
WORKERS CONCESSION SHOP..........................................................................................................................13
INSURANCE....................................................................................................................................................13
CANTEEN FACILITY.........................................................................................................................................13
MOTIVATION AND INCENTIVES FOR EMPLOYEES......................................................................13
MOTIVATION.................................................................................................................................................13
JOB DESIGN...................................................................................................................................................13
PERFORMANCE APPRAISAL...............................................................................................................................13
GOAL SETTING..............................................................................................................................................14
INCENTIVE SYSTEMS.......................................................................................................................................14
SHORT RUN INCENTIVES..................................................................................................................................14
LONG RUN INCENTIVES...................................................................................................................................14
UNION AND LABOR LAWS.....................................................................................................................15
UNION..........................................................................................................................................................15
LABOR LAWS................................................................................................................................................15
FINDINGS.....................................................................................................................................................16
 PEL…Change your life
PEL Profile
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It
was established in 1956 in technical collaboration with M/s AEG of Germany. In October
1978, the company was taken over by Saigol Group of Companies. Since its inception,
the company has always been contributing towards the advancement and development of
the engineering sector in Pakistan by introducing a range of quality electrical equipments
and home appliances and by producing hundreds of engineers, skilled workers and
technicians through its apprenticeship schemes and training programmes.
The company comprises of two divisions

APPLIANCES DIVISION
REFRIGERATORS
AIR CONDITIONERS
MICROWAVE OVENS
WASHING MACHINES
WATER DISPENSERS
GENERATORS
POWER DIVISION
POWER TRANSFORMERS
DISTRIBUTION TRANSF.
DRY TYPE TRANSFORMERS
ENERGY METERS
SWITCHGEAR
TRANSFORMER SERVICES
 PEL…Change your life

Mission Statement

To provide whole some value to society and share holders by developing leadership in
operational excellence, commitment to preserve environment and to rich the life-style of
our people.

HR Vision

To achieve excellence through innovative HR practices and continuously exceeding our

PEOPLE Expectation

HR Mission

There mission is two fold

To manage Talent and build capabilities of our people thus enabling them to deliver
sustained performance

To facilitate them in creating a collaborative work environment that develops a culture

of continuous learning
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Organizational Structure

The organizational hierarchy of PEL represents both flat and tall spans of administration.
In case of the lower levels of the hierarchy (the workers and their supervisors) the span is
wide but as the level of administrators goes up, the span structure becomes tall and
narrow. The top position is held by the Managing Director who is answerable to the
chairman of the board of directors. General Managers report to the MD and are
responsible for respective divisions, Some departments are being headed by Managers,
some by Deputy Managers and others are being led by Assistant managers, There are
Senior Engineers and Engineers who are section in charges. Supervisors and foremen
report to them.

At worker's level, usually 10 to 30 workers report to a foreman. This means two or three
task teams are supervised but a foreman. Three to seven foremen report to a Section In
charge who is an engineer. At executive level three to five engineers report to a manager,
and almost the same number of managers reports to a General Manager. Whereas at top
management level four general managers report to the Managing Director.

In PEL, there are two types of employees hired

1. Permanent Workers
2. Temporary Workers

For critical jobs, skilled workers are employed and most of them are permanent. During
layoffs, they are transferred to other departments to bring the number minimum in each
section. There are 1500 permanent workers in the organization and temporary workers
are hired on need and requirement basis

Temporary workers are employed for about 4 months, and when the season concludes the
temporary workers are laid off. Temporary workers are employed as helpers and assigned
those jobs where skills are not required. Sometimes it happens that a very sharp and
intelligent worker is employed among temporary workers, so he is preferred over those
permanent workers who have been made permanent only on the grounds of time spent in
the organization.

Workers are divided into different teams based upon their skills and nature of job. A head
worker who is responsible for the work assigned to his team by the supervisor leads the
team; here the basic stress is upon group assignments in case of the workers level as it
has already been proved that a worker is more productive if he is working in a group. The
head worker has to procure raw material for his team and direct the fellow workers to
perform the assigned task. These teams are masters of their jobs. Within a team tasks
have been assigned in a sequential order and every individual is assigned a specific task.
However within a team task assignment changes as per head worker's discretion. This
activity not only helps productivity but also helps the quality standards of the workers as
 PEL…Change your life
each of them tries to keep an eye on the other to see that he is performing correctly
because if anything goes wrong, the blame goes to the whole group.

Number of workers varies in different teams depending upon the nature of jobs. For
example pre-assembly team has more workers than the cleaning team.

Plastic section has machine operators, machine helpers, packing helpers, trimming
helpers, etc. These specific teams are expert at their work and lot of time is saved plus
rejection rates are minimum in all areas.

Recruitment

Job Analysis

In PEL the HR department performs a detailed procedure for the recruitment and
selection of its employees. First the HR department list down all the activities which are
necessary to perform that job. For that purpose they have prepared a Job Analysis
Information Sheet which covers all the activities of that job. HR managers give this form
to a number of employees performing the identical jobs for which the new recruitment is
to be done.

The HR managers also conduct interviews from the employees to get to know that
whether they are performing their duties well or not and to get the information about the
job by asking employees about the following

• Job identification
• Job summary
• Responsibilities and duties
• Authority of employee
• Standards of performance
• Working condition
• Job specification
• Job description

Writing Job Specifications

After the HR managers identify the job duties and the authority of the incumbent, they
write the job specifications to better understand the qualities which they require in their
employees and the new comers to perform that job. This is also helpful for the HR
managers while they are conducting the “Selection Interviews”. They can better judge the
interviewee whether he is competent to perform that job or not. This can also prevent the
HR managers from “Negligent Hiring”. They also come to know that whether there is a
need to provide a complete, comprehensive and cohesive training to the employees in
 PEL…Change your life
order to get the optimum result and output from them for the attainment of the strategic
goals of the PEL Electron Ltd.
 PEL…Change your life

PEL has a well structure recruitment policy. The company uses two different types of
recruitment channels. These are

• From internal source

• From external source

The basic purpose and aim of this policy is not only to provide equal opportunity to the
internal staff, but also to the outsiders and fresh candidates. For this purpose, people are
recruiting on the basis of job structure. The company develops and design the job before
the recruitment process and to recruit person the company offers the job to both sources.
Internal selection is made on the basis of personal abilities, hard work and outstanding
performance.

For recruitment from external sources company uses the following techniques

• Advertisement in the newspapers

• From business schools

Emerging Talent

It requires the following area...

Electrical engineering B.Sc/B.E Electrical engineering

Mechanical engineering B.Sc/B.E Mechanical engineering
Sales and marketing MBA Marketing
Human resource MBA/MS in HR
Finance/audit MBA/MS. Finance ACMA/CA
IT professional OCP(DBA developers & BI
CCNA,linux)

Qualification Inventories (Databank)

PEL has its own databank where almost 8 to 10 CVs are daily received. Candidates are
selected for test and interview from this databank when needed.

99% of the employees are taken from the external sources. For every job the company
made a criteria for requirement. Eligibility is made on the basis of the full information
provided by the candidates. For higher job, the company hires well educated; and
 PEL…Change your life
experience people. Similarly for lower jobs a develop criteria is in the organization.
Manager interview’s the candidates and appoint it and give the confirmation letter

The procedure for hiring the Management level employees is described below: -

• First of all the demand is created at a particular Department.

• Then after the permission of related authorities the job is advertised in the three
local Newspapers.
• Then they collect the applications. Then applications are sorted out.
• Then the selected candidates are called for the interview. The interview panel
comprises of four persons (for executive job mostly)
1. Managing Director
2. Admin Manager
3. Departmental Head

• Manager fills an Employment Requisition Form and sent it to the admin

Department.
• After conducting the interview, the selective candidate will receive the
appointment letter and is supposed to report in the office within 6 Days.

The successful candidate is afterwards introduced with his peers and the Head of the
Department

Application Procedure

PEL has basically three different types of application forms.

1. Official forms
2. Staff forms
3. Worker forms

In the case of selection of workers of PEL, experience is must, but at official level, they
also consider qualification along with experience. The company prefers fresh graduates
like MBA's, CA's and Engineers for the selection, only interview takes place. During
selection in the stage of interview, questions; related to family background, qualification
and experience are discussed. It means that selection is made purely on the basis of the
candidate’s physical out look, confidence, qualification and experience (if needed).
Application form has been attached at the end of the report

Selection
PEL is very careful about the selection procedure. It is the policy not exploit the
opportunities for each candidates. Selection is made on pure merit basis. PEL use some
basic techniques for its selection process. These include
 PEL…Change your life
• Written Test (For workers only)
• Preliminary Interview (For all levels)

For higher job, the administration took and interview of the applicant, but for lower
management, factory manager take the interview. One-to-one or panel interview is
conducted in which questions related to job are asked. Interview is semi-structured one

Back Ground & Reference Check

If applicant fulfill all requirements of the company to enter into the organization and have
the appropriate qualification and experience for the specific job, then before the final
decision made the company check background and references provided by the applicant

Rejection

If the company found any fake information provided by the applicant then company do
not recruit the person

Joining reports and personal file documentation

On the day of joining PEL Communications, every joiner will be given the appointment /
contract letter and other personal file-related documentation will be completed at this
stage. On selection the following information will be forwarded to HR to be kept in the
Employee's Personal File

• Job Description.
• Duly filed application form with pictures.
• Interview evaluation form duly completed.
• Medical report of the applicant.
• Copy of orientation checklist signed by employee and supervisor.
• Salary recommended.
• Any other special clause.
• References.
• Original matriculation certificate for age verification.
• An authorized original of the education or technical certificate &/or a copy of
experience certificate.
• Copy of N.I.C.
• Marital status & address.
• Two Passport size photographs.
 PEL…Change your life
Employee handbook provisions

Every new joiner will be given provided an Employee Handbook. This document
contains information about the company history, list of offices & office addresses, list of
managers, employment rules and regulations etc.

Human Resource Development (HRD)

“Empowering your career” is the PEL’s slogan for high caliber, individuals. To achieve
this goal they offer them the opportunity to carve out a successful career and become
their next generation of business leaders

Training

To develop the skills of individuals the company provides training program both for the
workers and executives every year.

The workers are given training for the better ability of handling operations and to
compete with the latest technology of the market. When new machines and equipment are
used then the workers are familiarized with the proper use of those machines.

Pakistan Institute of Management Sciences usually arranges these types of training

programs in order to develop the career of individuals.

Lecture courses, seminars, simulations and outdoor training are the part of the off-the-job
development techniques. Analysis of strengths and weaknesses of an employee is done
and training is provided to remove his weaknesses

Safety training of employees

Workers are also given a pertinent training regarding their safety while working on the
plant and dealing with the heavy equipment in order to save them from any hazardous
situation and keep them in fully secure condition because the according to the HR
department and company management regarding to their workers, they say that

“Our employees are our assets”

Employee development program

In the Employee Development Program, the company uses “Job Rotation, Promotion of
Employees and Assistance To Positions As On-The-Job Techniques.” In job rotation, the
workers are transferred to other Departments for getting the exposure or promote a
worker in a new position. While in assistance to position, few employees are assisted by a
supervisor. After a long period these workers are fully trained to perform the same work.
 PEL…Change your life
Performance Appraisal
After training, a performance appraisal is given and after that performance appraisal,
promotions are decided. Performance appraisal is conducted once in a month to test the
performance of the employees.

Main Focus of Performance Appraisal

The main focus of performance appraisal is to determine the performance of employees,

and to reward them according to their performance. Performance appraisal is conducted
by Graphic Rating Method in which different traits are listed. Traits refer to the quality
and reliability of the employees. Because the traits of every employee can not be equal so
the traits are given some ranges so that they can distinguish different employees with the
help of those ranges according to their capabilities.

Direction of Performance Appraisal

The direction of the performance appraisal is inline with the strategic goals of the
company and the HR managers check whether the performance of the employees is
according to the company goals or not, because to achieve the strategic goals of the
company is the first priority of the HR managers and the top management of the
company, to grow successfully and to compete in the market as Leader in the industry

Rewards & Benefits

For the purpose of attracting a productive human resource and ensuring his positive
contribution to the organization's success over an extended period of time, the companies
offer a variety of facilities, benefits and welfare programs to its personnel.

Likewise, Management at PEL, in addition to giving basic pay to its employees, also
cares for many employer benefit schemes and programs some of which are the distinction
of large corporations only. Here are important mentions in this respect

Bonus

In order to motivate the workers and gain optimal efficiency, incentives and increments
in salary programs are offered both to workers and officers. Every worker can be
promoted to supervisory level. Bonus is given in reference to the persons performance
and contribution towards the organization. From executives up to general manager level,
two bonuses are given equal to two months basic salary. From workers to junior
executives level, bonus equal to 156 days of basic salary are given on yearly basis.
 PEL…Change your life
Leaves

Leave for allowance is offered to officers and higher level staff. This leave fair allowance
consists of a package of 6 days leave along with the one basic salary per year.To relax the
stress of job, people are facilitated with 30 days leave per year, including earned, sick and
casual leaves. For workers, this package consists of 14 earned leaves, 8 sick leaves and
10 casual leaves.

All leaves allowed by the government of Punjab are sanctioned in PEL. To reduce job
stress of the workers alternate Saturday is off. Company has its own guesthouse in
Murree and employees have options to spend one week there at company expenses.

Provident Fund

For provident fund the company has scheme of 10% contribution by employees and 10%
contribution by the company.

Zakat & Taxes

Income tax deduction is made under section 50 of the 1979, called "deduction of tax at
source". Zakat is also deducted if liable.

Medical Allowance

Workers with salary Rs. 6000 per month have medical facility under the Social Security.
The personnel having salaries more than Rs. 6000 monthly are paid Rs. 250 per month as
medical allowance. For officers and high cadre personnel there is no limit for medical
allowances.

Uniform and Locker Facility

Workers are given two uniforms in one year and they are provided with lockers in order
to provide safety to their personal things in the factory premises.

Performance Awards

In order to keep up the morale of the workers up to executive level, 24th of December is
celebrated every year as annual day when gifts are given to the best attendants and the
most regular person. A special performance award is also given to the employee who
performs an extra ordinary job.

Loans

Loans are given from the provident fund of the employee. Car loans are given to
executive level officers and the employees make 10% contribution too.
 PEL…Change your life
Workers Concession Shop

There is a workers concession shop where flour, ghee, sugar, soap, etc is provided to the
workers at subsidized rates.

Insurance

The Company insures workers. The company provides two sorts of insurances.

1. Health related insurance

2. Life Insurance

Canteen Facility

The Management of PEL believes that primary condition for good health is nutritious
food. So it is prepared under most hygienic conditions in the company and is served at
highly subsidized rates.

Motivation and incentives for employees

Motivation

Considering the following areas can assess the level of motivation among the
organizational participants

• Job Design
• Performance Appraisal
• Goal Setting

Job Design

The designing of jobs at PEL offers the incumbents an opportunity to use their skills with
a fair degree of autonomy. This enables the individuals to view their jobs as interesting,
important and challenging and consequently, they pour in a lot of hard work at work
place. However the feedback exists only at moderate levels that need further
improvement.

Performance Appraisal

Annual Appraisal system is followed at PEL in order to ensure successful achievement of

set objectives and to motivate the employees. During evaluation, the superiors usually
offer friendly attitude to their subordinates. However, a considerable number of
respondents were not satisfied with their superiors’ attitude during performance appraisal.
The same respondents further cited that they only get identification of their mistakes out
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of such review. Others were satisfied that they not only get identification of mistakes but
also the possible solutions to avoid those in future which helps them to keep on the right
track.

Goal Setting

In most cases, the superiors and the subordinates set the goals mutually. Moreover, these
goals are not such that offer the employees an ample time to accomplish them; rather the
goals are made somewhat difficult to stretch the employees’ efforts.

Incentive Systems

The incentives can be split into two categories

• Short Run Incentives

• Long Run Incentives

Short Run Incentives

The company offers different types of short run incentives to motivate its employees.
Among them, the more important are listed below;

• Bonus (Normally given once a year)

• Increments (Normally given once a year)
• Promotion (Based on performance)
• Traveling allowance (For those who go out for company's business)
• Leave fair allowance (Annual leave with one month's extra salary)
• Pilgrimage Facility.

Long Run Incentives

Apart from the above-mentioned short run incentives, the company also provides long
run incentives like

• Provident Fund
• Group Insurance
• Old Age Benefits
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Union and labor laws

Union

The employees of PEL elect a labor union every year. The union consists of one
president, vice president, general secretary, finance secretary, propaganda secretary, and
joint secretary. The union takes active part in all activities. It arranges functions at
important occasions and negotiates with the management for employees’ problems. All
labor disputes are settled through the union.

Labor Laws

Labor laws applicable in the country are also applied at PEL. All benefits imposed by the
Government of Pakistan and Government of Punjab is granted to employees.
 PEL…Change your life

Findings
As compare PEL with other business organization, we found that the policies and
organizational culture is according to standard. Good working condition, clear corporate
objectives and the most important thing, the policies about the human resource
management may not only improve the performance but also make the manpower up to
date and will equipped with the new challenges and future development. The company
don’t check the criminal record of the applicant before recruitment which is dangerous
for the company. The organization is fully in the hand of qualified and skilled people.
Reward and incentive as well as promotion is made on the basis of personal qualities,
skills and performance. HR Department of the organization is performing its duties quite
effectively and efficiently. Employees are very much satisfied by the compensation
package, incentives and benefits provide to them by the organization.

To solve some of these problems, some of the recommendations are underline.

• Employees and workers should be provided opportunities to give suggestions for

the betterment of the organization as well as themselves.
• Make the policy flexible. Environment should be made friendlier and the distance
between the bosses should be reduced. This will result higher work productivity
and better performance.
• Try to reduce the over crowding in the departments because it creates disturbance
and the efficiency of workers is reduced.
• Increase lower management participation in the decision making process.
• The Company should add test system in the recruitment process such as
psychological, knowledge, performance, graphic response attitude and medical
test to select the best candidate.
• The company should have its own website where candidate should be given a
opportunity to drop their CVs. This will reduce the workload of HR Department.

The company should also check criminal back ground to avoid any risk of criminal action