Professional Documents
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ACKNOWLEDGEMENTS
HUMAN RESOURCE DEPARTMENT
First of all, we are thankful to GOD WHO makes us capable to gain knowledge
and after that we would like to say thanks to parents who brought us up and made
us able to face challenges of this dynamic environment. We also thank to
MR.Ghulam Hussain who guides us in developing this project. The main
purpose of this project is to enhance our skills. The project was about Human
Resource Practices at Descon Engineering Company. We went to the Head
Office of Descon Engineering Company at Lahore meet with Irfan Usmani
(HRD Executive) and Ammar Khan (HRD Assistant Executive). They have
cooperated a lot with us. After that we become capable to present this project in
front of you.
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EXECUTIVE SUMMERY
Descon is the one of the leading company in project based business to business
market in Pakistan. This summery is all about the Human Resource Department
of Descon Engineering Company. We will discuss about the introduction of
Descon in first chapter. The second chapter will tell us about the structure of HR
Department in Descon. The third chapter shows planning and job analyzing steps
in the department. The fourth chapter will help us to know about selection and
recruitment of procedures. The fifth chapter is all about training and Development
through implementation and Evaluation. Sixth chapter will creates a knowledge
how Descon conduct its Performance Appraisal System. The second last chapter
defines the compensation management. And the last chapter explains how this
department handles the disputes and procurement procedures.
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DEDICATION:
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TABLE OF CONTENTS
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CHAPTER NO.1
INTRODUCTION
1.1History
Over the last three decades Descon has evolved into a multi faceted Engineering
and Manufacturing concern and has further spawned a group of ventures with a
diverse activities portfolio: Project Management, EPC, Engineering,
Manufacturing, Construction, Maintenance, software development, Mining,
Chemicals and Trading, While the group companies operate independently under
a corporate structure, Descon Engineering remains the flagship company and
provides the associated identity to its affiliates.
The company is unique in its resources base with in house capabilities for Design
Engineering, Manufacturing, Construction and Maintenance Service. These are
applicable to a wide variety of projects related to Industrial plants, Energy and
Infrastructure development for which services are provided selectively or on
turnkey/ EPC basis.
All establishments are system oriented with ISO and OHSAS certifications and
ASME stamps. HSE achievements are reflected in the statistics with over 350
million man hours of work executed. Considerable investment is made in human
recourses focusing on development.
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Descon is project oriented and client driven. Quality and HSE are taken as Value
adders and the company culture encourages teamwork and innovation. With all
these attributes and resources, the company is well placed to compete and succeed
in the local as well as international contracting arena while being recognized as a
quality service provider and manufacturer of capital equipment. The synergy
between various business areas fuels strategic growth by providing cost effective
solutions.
1.2 Vision
"To provide our valued customers with cost effective and reliable
solutions in project implementation and be recognized as the leading
manufacturer of high quality equipment for plants." 2
1.4 Core Values
The purpose of Descon is to bring prosperity and well being to our stake holders
and society at large by adding value through engineering, technology and
management.3
1.4.1 Integrity
1
http://www.descon.com.pk/Company/visionAndMission.aspx
2
http://www.descon.com.pk/Company/visionAndMission.aspx
3
http://www.descon.com/Qhse/corporateSocialResponsibility.aspx
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While operating globally, they touch upon many people. They would set
CSR Objectives in the annual plans to take a leadership position in this
regard. They believe in transparency and giving access to the information to
people about the life cycle of their products and services.
These strategies require commitment from top to bottom level of their employee’s
relationships. Because they want to see a healthy and safe world and trying to
achieve their goal by using best practices at their premises. The annul objectives
for CSR focus on six areas; - Business Integrity, Environment, People,
Community, Human Rights and Suppliers. These all areas are integrated into
Descon’s core values.
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The EPC Business Area is also evolving into an autonomous entity which has its
own engineering expertise for undertaking projects on a turnkey basis. These
range solution for existing plants to ‘Greenfield’ facilities pertaining to process,
utilities and offsite areas.
The infrastructure projects Business Area has developed its own in house design
group for projects related to water reservoirs and irrigation channels. Descon is
the only Pakistani company which has the complete ‘design and construction’
capability for large infrastructure projects.
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• Isometrics
• Project Specifications / Procedures
• Bill of Materials / Bill of Quantities
• 3 D Modeling with PDS
• Pipeline Design
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Civil Design
The civil design group specializes in the following:
• Modeling using PDS
• Steel and Concrete Structures
• Highways
• Industrial Facilities and Process Building
• Pipe Racks, Table Top Structures, and Elevated Structures
• Warehouses
• Bridges and Culverts
Equipment Foundations
• Pile Foundations
• Tank Foundations
• Compressor and Turbines (Including dynamic analysis)
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This department consists on executives who supervise the rules and regulations.
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what time they should complete the project, how to complete the project and all
plans which can be useful to generate efficiency level at maximize position.
This department handles the human power of the Company. Make policies and
procedures and helps to achieve organization’s goals by hiring competent
workforce and retain through training and motivating.
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These areas are further divide in National areas (Pakistan) and International
Business areas.
1.6.2.1National Areas
There are regional and site branches in Pakistan.
• Karachi
• Lahore
• Islamabad
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CHAPTER NO.2
HUMAN RESOURCES DEPARTMENT
Thus Human resource of Descon is not only a critical asset today but has become
an important source of competitive advantage in dynamic industry of engineering
and construction. With the help of HRD, Descon’s rating in Pakistan is No.1 in
Engineering and Construction based industry. They are standing for many years
and no one even touch to their rank because of competent and willing work force.
2.2 Organogram of HRD (Fig 2.1)
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It is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hired for it.
a) Job Description
b) Job Specification
A list of job’s “human requirements” that is, the requisite education, skills,
personality, and so on. They also make job specification hire the right people at
the right place.
• Resourcing refers to internal recruitment the Descon Engineering Co. That is,
they try to attract candidates for vacant jobs from within the organization, and
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The Company holds that orientation program is very necessary for the Company
as well as for the new employee. The unit of Training and Development performs
several important functions for the Company, like orientation training,
performance appraisal and the general Training and Development. Broadly
speaking, Descon Engineering Co. holds a strict distinction between training and
development.
Descon Engineering Co. gives the importance to their employees as well as their
performance. There are certain standards that are set by the Company to check the
performance of staff. They give the incentives and bounces on the base of check
performance. Descon Engineering Co. follows all the international rules when
done performance management.
The amount of bonus and increments depend on the profit of Descon Engineering
Co. world, then Descon Engineering Co. Pakistan, then for each department and
finally for each employee. The Gross salary includes a number of allowances.
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CHAPTER NO.3
MAN POWER PLANNING AND JOB ANALYZING
This chapter tells us about Man Power Planning and Job Analysis are how much
important to select a job and the need for hiring or training the employees in
Descon Engineering Company. The Company allocates the budget through they
are receiving from profit margin. The opportunities find out when they work on
project, and if something is missing in their specialized field. The budget for new
employees and training the employees should be allocated. Then, the jobs and
work is defined and analysis the job and person who can be do that type of job
excellently.
3.1 Criteria for Human Resource Planning
3.1.1HRM Audit
The HRM (Human Resource Management Audit) of Descon uses this framework
to try to answer such questions as: Are the mission and strategy of the human
resource organization designed to match the business strategy of the Descon
Engineering Co.? Does the design of the human resource organization enhance its
ability to accomplish its strategy? Are the kinds of people who run the human
resource function good choices for the ongoing task?
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Job analysis interview guide is a tool that can be used in conducting job analysis
process. It describes list of questions that should be asked to explore the content
of a particular job. What is the job overall purpose? What the inducement does
and, if possible, how he/she does it?
Most widely used job description format contain the following five sections”
(1) job identification
(2) job summary or purpose
(3) job duties and responsibilities
(4) accountabilities
(5) job specifications
The most important thing to remember is that all job descriptions within Descon
Engineering should follow the same format.
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This is one of the most sophisticated and yet easily administered techniques to
analyze job. These elements are of a worker-oriented nature, meaning that they
characterize or imply the human behaviors that are involved in various jobs.
HRD managers must have the ability to plan HRD activities that foster training,
development and education. These activities should be targeted at the needs of
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CHAPTER NO.4
RECRUITMENT AND SELECTION
Resourcing refers to internal recruitment the Descon that is; they try to attract
candidates for vacant jobs from within the organization. Recruitment only refers
to external recruitment that is locating candidates from outside the firm, which
may include fresh graduates of people working in other firms. However, it must
be noted that Descon prefers resourcing to recruitment.
4.1 The Resourcing Process
The resourcing process at Descon is conducted in a well planned in an efficient
manner. Resourcing process can be summarized as:
• Identification of Job Vacancy
• Job Posting
Now we will discuss all the steps involved in the resourcing process in turn.
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If an employee of the company leaves the firm due to any reason. This may be
deliberate resignation to move to another firm. This may also any other reasons
such as, retirement, termination or death, a vacancy is formed at the respective
department of the company. The department, carefully analyzed in all its respects
identifies this vacancy and the job description is forwarded to the workers of the
human resource department.
Then the department, in which the vacancy is created, sends a complete Job
Analysis Information to the HR Department. Thus, the Department forwards a
complete document to HR specialists so that they can analyze the job correctly
and efficiently.
When respective departments have identified the vacancy and the job description
has been sent to HR Department, the HR Department decides on the grade and
designation of the vacancy.
4) Job Posting
This is the most common practice at Descon. Moreover; the reporting time is also
specified within which the candidate should contact the HR Department.
After job has been posted, the candidates who are interested contact the HR
Department via mail, telephone or face to face. The candidates will include
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In Descon recruitment refers to external recruitment only that is people are hired
from outside the firm. The recruitment process involves the following steps:
• Internal unavailability of appropriate personal
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ideally have experience related to plant construction & Maintenance in Oil & Gas,
Fertilizers, Power Plants and Petrochemicals Sector.
2) Incharge Production
B.E/ M.E (Mechanical, Electrical) with 15-20 years of relevant experience. Able
to lead the multi-discipline project team and responsible for the overall
management of the project site to which assigned such that the contractual
requirements and obligations are fulfilled, in accordance with drawings and
specifications and all is completed within in safety goals set for construction,
within budget, and within schedule.
6) Incharge Fabrication
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B.E. Mechanical with more than 10-15 Years Experience in Site Engineering Oil
& gas field construction, refineries, and Storage terminals. Must have sound
Knowledge in plant Storage Tank Fabrication and erection and piping works.
7) Incharge Stores
8) Incharge (E&P)
B.E Mechanical having 5-7 years experience or DAE with 10-15 years experience
in maintenance of hydraulic and pneumatic systems of heavy equipments. They
should be able to lead a team of technical persons and having strong
communication skills. Computer knowledge shall be preferred.
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B.E Mechanical / Civil having 3-5 years of experience. Having Knowledge for
monitoring financial health of the project as compared to approved budget.
Prepares Quarterly Cost/Revenue forecasts.
B.E / DAE Civil, having sound knowledge of related materials, specification and
testing.
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B.E / B.Sc Mechanical / Civil / Electrical with 10 years experience. They must
have worked in same capacity in Mechanical construction Projects, Knowledge
on materials identification and handling.
The employee’s knowledge status and experience is based to do that job. The
Board of Directors selects the vertical promotion of employees who are eligible
for that. If the votes are more than opposition, they select for those employees as
executive level job for new or existing jobs. They give a chance of shareholders
also who are capable to do that job.
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CHAPTER NO.5
TRAINING AND DEVELOPMENT
The unit of Training and Development performs several important functions for
the company, like orientation training, Performance Appraisal and the general
Training and Development.
5.1 Orientation Process and Induction of New Employees
The Descon holds that orientation Program is very necessary for the old as well as
for the new employee. The entire process of orientation is conducted at Descon as
follows:
1) Need determination for orientation program
2) Designing of orientation program
3) Implementation of orientation program
4) Analysis of orientation programming And Development
Need determination for orientation program. When an employee joins Descon, the
HR Department, the department in which the employee has been selected and the
top management determines the need for the orientation program. If the candidate
has been transferred from some other country to Descon Pakistan, it is very
necessary to acquaint him to the culture of the country and the general business
practices. He is of course, aware of the Descon engineering culture but he may be
informed about the new department he has joined and about his new duties and
authority.
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• Head of HR Department
• Training Specialists
• Immediate Supervisor
• Head of the Department in which the employee is selected
In designing the orientation program, the length of the program depends on the
employee for whom the program is conducted. If the employee has joined Descon
from some other country the program is very lengthy as he is not only to learn the
culture of the organization but also the culture of the country as a whole. The
program usually includes
Hence, in this way the new employee is thoroughly acquainted with the Descon
culture and thus can perform his job effectively. Implementation of orientation
program at this step management simply implement the already design orientation
program effectiveness.
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the prose and corns of the orientation Program. If he is comfortable with the
Descon environment, the Program is a success or vice versa.
Management’s View on Orientation Process
Training Policy
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The statement is not enough, so the whole lesson plan is prepared in which each
and every activity is written in this portion.
5.3.3Selecting trainer/leader
The company select the trainer based on the training criteria, No. of employees
and their skill enhancement. If the No. of employees are less or any specific
criteria demands to train through the outside trainer, they outsource the training
program.
5.3.4Preparing material
Descon mainly uses the following training and development methods are:
On-the-Job Training:
Descon give the training to their employees on the job by hiring a trainer from
outside or from within the organization. But company selects the trainer very
carefully and only professionals individuals in field. Training In Institutes Within
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The Country: If the trainees need training in a specific technical skill, which the
company cannot provide economically, it sends the employee to institutes where
they get the requited training. The trainee interacts with new people and can make
contacts for the organization.
Employees are sending abroad for special training and development Program
conducted by the Descon Group. This training Program may be conducted in
other countries Dubai or anywhere else where the Descon exists.
After designing the program, the implementation process is playing Back Bone. If
all the process of designing is complete but the program doesn’t held due to
certain reasons, their will be loss of money, time and efficiency. So Descon’s
HRD convincing their executives to implement the program according to training
design will be benefit to the organization.
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The evaluation design helps employees to set accurate base in which the criteria is
set.
The results of evaluation criteria helps the Descon’s Engineering Company that
how well their training staff learn and enhance their abilities for future role. If one
person get full fledge train in this specific area of training, it is possible that he
may receive rewards like, increase in salary or Promotion. Because he is now the
precious asset of the organization and everyone wants to retain his precious asset.
Descon Has Specific institute (D.T.I) in the employees and especially technical
workers are trained and become company’s dynamic asset. These institutes have
capacity to train all types of technical works done in Pakistan.4
CHAPTER NO.6
PERFORMANCE MANAGEMENT SYSTEM
4
Performa of DTI admission form attach with Project
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5
http://www.scotland.gov.uk/Resource/Img/69582/0017606.gif
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the manager and the HR Department at Descon evaluate the performance of each
employee formally. At some branches of the Company in Pakistan, management
checks the performance on monthly bases.
Descon set the appraisal criteria according to the national and international laws
because it is a Multinational organization. The evaluation process consists of
various techniques which are adopted according to the Hay Methods of
evaluation.
The main Hay Group methodology, Hay Group Guide Chart-Profile Method of
Job EvaluationSM provides you with a consistent and objective framework to:6
The first step of performance appraisal method is to analyze the structure of the
organization and then identify those ways which help to make it more effective.
6
http://www.haygroup.com/ww/services/index.aspx?ID=111
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When the structure of the company is analyze by the HR Managers. They start to
evaluate the people and jobs to match the right individuals to the right roles.
The company defines career progression both from individual roles and across
related job groups and interlinking organizational goals with personal goals.
Reward Program
After the Performance Appraisal Process, the company had develop targeted pay
and reward programs, using Hay Group’s global compensation database
optimize the return on investment in people by paying in proportion to
contribution. All of this ultimately leads to an increased ability to manage your
human resources more effectively.
The reward program is held and employees take reward according to these levels:
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CHAPTER NO.7
REWARDS AND REMUNERATION MANAGEMENT
7.1.1Salaries
Descon pay the salaries to their employees according to their ability, skills and
their experience. Company also considered the national laws of every country in
which it operates regarding to salaries such as minimum salary act.
7.1.2Designations
Like all other organizations Descon also have specific grades and designations for
their employees that show the status, power and responsibilities of job at work
place. These grades start from G-1 to G-9.
G-9 is a executive level grade that shows the high level power and responsibilities
in organization and G-8 show less than as compare with G-9 and so on.
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7.2.1Allowances
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CHAPTER NO.8
INDUSTRY RELATION
The field of industrial relations (also called labor relations) looks at the
relationship between management and workers, particularly groups of workers
represented by a union. Descon treated their employees as partner in delivering
superior customer value. We know that The Company’s operations are project
based and they work in different types of construction, maintenance and
development businesses.
8.1 Procurement for election of labor union
The company has very good system of procurement of labor union. There are
several types of Technical, Engineering, and Managerial employees working in
Descon. When any project is start, the Human Resource Department check all
those workers who can work on that specific project. If the members are not
available, so they are checking those projects which are at completing stage. If
any one is at competing stage, the HRD pull some work force from these areas
and start new project. If the demand does not fill right now, they hire new
workforce for starting the project.
8.2 Dispute Settlements
We now that in any organization, there are different dilemmas’ between
employees. If there is any dispute regarding any issue, the HRD plays an
important roll and settling disputes which are not settling by supervisor. The
climate survey is held to check both parties and some times punish both parties
for their bad work. Some time handling miscommunication through interfere all
those parties which are involve.
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Company at Lahore, which is very clean, well arranged and cool in summer.
Descon provide the following health and safety equipment at all their branches:
In case of any sudden accident Company has First aid at work place
In case of any emergency Company has doors and clear direction toward these
doors through arrow signs.
Smoking alarms also there, which is turn on in case of any smoke in sites and
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APPENDICES
APPENDICES
http://www.descon.com.pk/HumanResources/apply.aspx
2) Performa of DTI:
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