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Human Resources Management Report

MBA-IV

GROUP MEMBERS
AMMARA MEHMOOD HAWA BI IBRAHIM MAYET KULSOOM ZAFER SHEBA TAHIR NADIA FARHEEN ANAM

REGISTRATION #

SUBMITTED TO: MISS. ABIDA SHAHEEN DATE OF SUBMISSION: 5th of August, 2009

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ABOUT AUTHORS
We are AMMARA MEHMOOD, HAWA BI IBRAHIM MAYET, KULSOOM ZAFAR, SHEEBA TAHIR and NADIA FARHEEN ANAM. We have been given a project HRM PRACTICES OF ORGANIZATION to study and analyze the importance of HRM in any Organization and how HR-Managers use HRM methods to create high-performance companies and work system. We are students of MBA in IQRA University in the year 2009. Presently we are getting through our 4rd semester from IUGC and we are assigned to prepare this report. Every project needs a lot of research, work, physical involvement and a great amount of personal interest in making it as informative as it can be.

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ACKNOWLEDGEMENT

To Him belongs the dimension of the Heavens and the earth, it is He who gives Life and death and He has power over all things. (AlQuran)

All acclamation to Allah who has empowered and enabled us to accomplish the task successfully. First of all we would like to thank our Allah Almighty who really helps us in every problem during the project. We truly express our gratitude towards our respected teacher, Miss. ADEELA who helped us a lot in carrying out this project. We would like to express our gratitude to all those who gave us the possibility to complete this project. We want to thank the Human Resource Management Department of Engro Vopak Terminal Ltd Pakistan for giving us permission to use departmental data. We want to thank Mr. Muhammad Tabish, HR Supervisor of Engro Vopak who gave us his valuable time and provide us with the information on the practices of human resource department. We would like to thank our parents and siblings who helped us in difficult times. Last but not the least our team efforts, support, cooperation and encouragement showed by each members in the group with each other.

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We dedicate this report to all the above-mentioned people and to all the readers of this report.

TABEL OF CONTENTS

EXECUTIVE SUMMARY . I 1. INTRODUCTION: .1 1.1Introduction 1 1.2About Engro Vopak 2 1.3Engro Vopak Strategy .. 3 1.4Organizational Chart . 3 1.5Departments . 4 2. HRM at ENGRO VOPAK 5 2.1Strategic HRM at Engro Vopak . 6 2.2Engro Vopak HR Policies 6 2.3HR Offices and Its Role ... 7 3. HR-FUNCTIONS .. 8 3.1Job Analysis . 8 3.2Recruitment and Selection .. 9 3.3Orientation and Training 13 Engro Vopak Terminal Limited Page 4

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4. 5. 6. 7.

3.4Performance Appraisal 16 3.5Compensation and Benefits .. 19 3.6Career Development .. 20 3.7Retention of Employees 20 3.8Health and Safety Policies 21 SWOT ANALYSIS .22 CONCLUSION 24 RECOMMENDATION .25 REFERENCES .26

EXECUTIVE SUMMARY

The report on the project HRM practices OF Engro Vopak Terminal Ltd. starts with the introduction of the company Engro Vopak whose human resource management practices are studied to analyze the impact of HRM practices to develop high performance work system. After introduction of the Engro Vopak, HRM practices are described in relation with their function to improve performance. After the theory describing the HRM practices, the HRM policies of Engro Vopak like recruitment, selection, orientation, training and development, performance appraisal, empowerment, grievances

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handling etc. are described in detail. After the detailed description of Engro Vopaks HRM practices some recommendations are given to remove flaws and for further improvement of Engro Vopak.

INTRODUCTION 1.1-Introduction:
Engro is a diversified business enterprise, comprising of 5 subsidiaries and a joint venture company. Its business line includes chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation, foods and power generation. Engro is currently serving customers in 17 countries globally through 11 offices in 3 countries in Asia and North America. A national company with an international reach, Engro is one of the largest and fastest growing companies in Pakistan today. Vopak complies with the majority of the principles and best practices laid down in the Dutch Corporate Governance Code (the Code). The number of exceptions to the best practice provisions in 2008 remained unchanged from 2007. The exceptions are explained below. For their stakeholders and in accordance with prior recommendations of the Monitoring Committee Corporate Governance Code (the Monitoring Committee), we include transparent, specific and concise information on the various risks and the manner in which the organization manages these risks in their external accountability and reporting on risks and risk management. We have closely monitored the results of the consultative sessions on the preparation and effectiveness of the General Meeting of Shareholders (the General Meeting) recently initiated by the Monitoring Committee as well as the dialogue between the company and its shareholders. We have taken notice of the revised Code as published by the Monitoring Committee on December 10, 2008 and are reviewing what the implications will be for Vopak.

WORK PLACE
Engro values each employee, their input and views. Continuously striving to become employer of choice, Engro provides a workplace where people feel confident, valued and inspired.

DIVISIONS:
Engro today stands recognized as a successful business operation and a role model for doing business in Pakistan. * Engro Chemical Pakistan Limited (ECPL) * Engro Vopak Terminal Limited (EVTL) * Engro Polymer and Chemicals Limited (EPCL) * Avanceon (formerly known as Engro Innovative Automation Pvt. Limited) * Engro Foods Limited (EFL) * Engro Energy Limited (EEL) * Engro Eximp (Pvt.) Limited (EEPL) Engro Vopak Terminal Limited Page 6

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1.2-About Engro Vopak:


With a history going back almost four centuries, Vopak is the worlds largest provider of conditioned storage facilities for bulk liquids. Whether its liquid or gaseous chemicals, oil products, petrochemicals, biofuels, vegetable oils or Liquefied Natural Gas (LNG) we offer complete storage and transshipment solutions at 80 terminals in 32 countries, covering and connecting the worlds major shipping lanes. Vopak offers more storage capacity than any other independent tank terminal operator in the world. Vopak distinguishes itself by offering service solutions that address a single, but crucial part of the supply chain and then take it one step further. When you choose to work with Vopak, their operational and safety standards apply to every country and to every continent where we operate. That means we offer uniform quality wherever you take your shipments, conditioning your products, keeping them safe, and keeping them secure - from ship to shore and from shore to inland transportation.

Vision
"To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders.

Long-Term Commitment
The long term vision is to become a diversified chemical company operating internationally. To achieve this aim we need the best people. We therefore aim to recruit high caliber people and give them the opportunity to grow and to develop their talents. They look for long-term commitment on the part of both Company and employee and have designed their systems to fulfill the Company's part of this promise.

1.3-VOPAK Strategy
On the basis of their mission of becoming the most admired independent storage terminal company a strategy has been defined that rests on three pillars:

1. Growth leadership

Optimizing and expanding existing terminals Developing terminals in new geographical areas mergers and acquisitions developing terminals for new products or markets, like LNG and biofuels

2. Customer leadership through recognized excellence in customer service at every site 3. Operational efficiency leadership through continuously improving operational processes
The strategy is being implemented through special internal programs, known as strategic initiatives, and excellence programs for improving existing operating processes.

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1.4-Organizational Chart

CEO

Finance & Corporate Service

Terminal

Project & BD

Financ e

Human Resourc es

Administra tion

Corpor ate

Qualit y Contr ol

Engineer ing

Safety & Stora ge

1.5-DEPARTMENTS: FINANCE AND CORPORATE SERVICES:


Finance and corporate services looks after the management functions carried out at ENGRO VOPAK. This department is comprised of all management staff. It supervises the departments of finance, human resources, corporate and administration. These departments report directly to finance and corporate division.

Finance Department
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The Finance and Accounting departments at Engro Vopak are responsible for the total financial management of the business of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited.

Administration
Efficient management of all administrative affairs of Engro Vopak is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.

Human Resource
The Human Resource department at Engro Vopak spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Vopak. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR supervisors at Engro Vopak. The detailed analysis of the department and its functions are discussed later in this document. Although Engro Vopak has owned the HR policies and System of its own mother company i.e. Engro Chemical and they have no labor laws but they have new guide line of following OHSAS which is

TERMINAL:
Technical work is supervised by terminal division. Since the core business of Engro Vopak is to provide safe supply of chemicals to its clients therefore the terminal division withholds a major responsibility. It ensures the security and safety at its all terminals.

PROJECTS AND BUSINESS DEVELOPMENT:


This divisions core responsibility is to develop and maintain business plan, design strategies for business development, fill the tenders for new projects and identifying the needs for them, dealing with existing clients and attracting new customers and improving the overall condition of business.

HUMAN RESOURCE MANAGEMENT AT ENGRO VOPAK:


Engro Vopak is a small subsidiary company of Engro chemical, it has owned HR rules, polices and cultures of Engro chemical because it is Mother Company and it has quite strong history. In Engro Vopak, there are two people in the HR department, Mr. Tabish is the person, who is actually acting as HR

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supervisor and the 2nd one is HR officer who is responsible for every thing and playing leading role related to Engro Vopak human resource management (HRM). There are around 90 employees are working in the Engro Vopak, and they are largely committed to their organization and have shown progress in the company that is the reason during the year, in 2007, the volume of the chemical handled by Engro Vopak (EVTL) is increased by 38% and revenue increased by 18%. As employees are satisfied with HR department of Engro Vopak (EVTL), there are several functions are performed by HR department which are mentioned below: HR Planning Recruitment and Selection Training and Development Performance Appraisal Compensation and Benefits Career Planning and Development Health and Safety measures Retention Of employees

2.1-Strategic Human Resource Management at Engro Vopak


Humans are the basic tool for having competitive edge in the market for most of the organizations and VOPAK is one of these. HR strategy refers to the specific human resource management course of actions that a company pursues to achieve its objectives. But how these strategies & policies are formulated and implemented at Engro Vopak. The basic policies of HR are designed at Engro chemicals and are followed by Engro Vopak as well. Like most big organizations, this process is also done in accordance with companys mission. First, Strategic planners analyze what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of business and its market, what is the culture of the organization and on the basis of all the above analysis, companys strategic plan is established. In the end HR strategies are formulated in accordance with this overall business strategic plans. Based on these HR strategies, HR policies and practices are also formed and implemented. Any abrupt change in the market requires the organization to follow this analysis in order to be successful. But since Vopak is the pioneer of this market therefore it is least affected by the disturbance in market.

2.2-ENGO VOPAK HR Policies:


Vopak considers safe and healthy working conditions for its employees to be fundamental and a pre-requisite. Page 10

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Vopak companies recruit, employ and promote employees on the sole basis of the qualifications and abilities (including reputation and reliability). Vopak endeavors to enable each individual to develop its talents in various ways (e.g. by offering training programs). Vopak and its subsidiaries are committed to a work environment in which all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits discriminatory practices, including harassment. Vopak expects that all relationships among persons in the workplace will be businesslike and free of bias, prejudice and harassment. It is the policy of Vopak to ensure equal employment opportunity without discrimination or harassment on the basis of race, color, national origin, religion, sex (with or without sexual conduct), age or any other characteristics protected by law. Vopak prohibits and will not tolerate any such discrimination or harassment. It is the policy of Vopak and its subsidiaries to maintain a work environment at its terminals that is safe for employees and conducive to attaining high work standards. This statement is to notify and remind all employees and employees of contractors and other companies having access to a Vopak terminal, that unauthorized possession or use of drugs, narcotics, intoxicating beverages, firearms or weapons are not permitted on any Vopak terminal. Vopak is committed to conduct its operations in an environmentally sound and sustainable manner. To achieve protection of the health and safety of employees, customers and the public, Vopak has established procedures and compliance programs to ensure the minimum adverse impact on the environment. Such procedures and programs are periodically being reviewed and appraised.

2.3- HR Officer and Its Role in Engro Vopak

Mrs. Mona is the person who has core responsibility regarding decision making, and setting overall strategies for new hiring and existing employees, and even keeping effective check and balance of overall performance of HR department including strategic human resource issues, possess responsibility of all HR areas including forecasting the need of recruitment, selection of employees, setting compensation pay rate according to tears in organization, and also involved and implementing the health and benefits program, an even in promotion and many more etc.

Hr Supervisor and Its Role:


As Far as concerned to Mr. Tabish pursue the core responsibilities as HR supervisor; He is involved in conducting Interview. He is involved in preparing test and setting strategies to make it effective for management Staff and non- management staff. Page 11

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He is organizing the issues, and make it possible of HR coordination with other department He isnt authorized to take decision, but absence of HR officer, he is the one who are normally taking decision by letting know to her officer He is also involved in additional responsibility of Administration department to minimum extent, in a manner, 2nd officer of admin is a person who actually reporting to Tabish in the absence of Admin Officer by considering him as 1st officer. He is Involved in multiple tasking or we had better to called it as Job enlargement and job enrichment of HR supervisor

Types of Employees

In Engro Vopak, employees are comprises of two categories i.e. firstly for Management Employees and Secondly for Non- Management Employees (Technical employees)

HR FUNCTIONS:

3.1-JOB ANALYSES:
Role of COED in Job Analyses
The Compensation organization and executive development committee (COED) is responsible for analyzing the need and fulfillment of new vacant positions after getting know the requirement of hiring on department requests where need occurs. In case COED ask to department about the request for hiring new employees. After accepting the reason for hiring, COED then referred to HR department to conduct the recruitment process by giving first advertising of vacant position in the newspapers.

Job Description
Although job description and specification is purely practical process they cant explain in terms of words because job description and specification is changed with the nature of jobs. These are the listing of duties as well as desirable qualifications for a particular job e.g. the advertisement also specifies number of years worth of experience to apply for the job.

Job Specification

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

Requisition Form
Mr. Tabish told us that when someone leaves the organization then usually need occur for hiring new employees on the demand of that department, such positions can be fulfilled through external source or if someone left from the top executive positions then it can be fulfilled through internal recruitment by giving chance the potential executives employees which is observed by Compensation organization and executive development committee COED to hire the employees in such department. It is a document in which just overview of required specification is mentioned like age of employees, Qualities required to perform that job.

3.2-RECRUITMENT AND SELECTION PROCESS: Engro Vopak Policies for Recruitment and Selection:
Policies for Recruitment and Selection as experienced at Engro Vopak are: Recruitment Objectives
The policy is meant to ensure an effective and efficient method of recruitment and selection. It is aimed at hiring without any discrimination based on race, color, sex, nationality, ancestry, religion or disability.

a) External Recruitment:
I. II. No candidate under the age of eighteen will be considered. Human Resources will advise Department Heads on salary ranges to be offered to the applicant keeping internal and external equity in perspective. b)

Internal Recruitment:
Internal candidates must be confirmed employees of Engro Vopak who have completed one year of service. However exceptionally good candidates may be considered. Selected candidates will join the new job/position after getting clearance from existing line manager.

General Conditions for Recruitment:


All recruitment will be done through the Human Resources Department in consultation with the Officers and COED. Engro Vopak Terminal Limited Page 13

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The recruitment process plays a vital role in selection of right people for the right position at the right time by Engro Vopak keeping in view the essential qualities of people for its continued success. Its human resource is strong because Vopak has owned the human resource management system of its own mother company i.e. Engro Chemical. Even the Recruitment process is gone through for hiring fresh candidates and for existing employees in each category of employees. If they talk about hiring new employees for new vacant positions then they can use source of external recruitment or even they can refer to existing employees for the current vacancy means Internal recruitment, even in such situation they can observe and use Management replacement chart in order to fill executive position internally from management staff. Incase of management staff, they get hired on permanent basis and non management staffs hired first on prohabation period for 3 months and then get permanent. Even incase of management they can recruit through outsourcing like through agency even through by surfing on net i.e. rozee.com are the probably most important source.

Sources of Internal Recruitment Employee Referrals

Sources of External Recruitment Job Fairs University Hunts Advertising Outsourcing Agencies (Rozee.com) Walk-in Interviews

Recruitment Process for Management Employees:


I.

Application Form\ Submission Of Resume


Submission of form is the basic criteria to show the true picture of their talents, interest, and ambitions in order to get the job. It is the initial criteria to know and analyze the candidate through its CV pattern, and mentioned qualification, experience and their skills in the resume which are considered keys to judge for initial selection.

II.

Evaluation of Resume
After receiving the resume of expected candidates, they need to observe and match the experience and qualification of individual applied candidates with the requirement of the job description and job specification. They also see the format of making CV that either it is up-to-date or not.

III.

Short Listing
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Mr. Tabish and Mrs. Mona started then short listing of candidates after evaluation in which they keep the resume of those candidates who fulfill minimum Requirement of Job Description and job specification and can be considered them as few would be potential candidates.

IV.

Test
The test is conducted by the HR department in which Mr. Tabish is personally engaged in preparing the test format and organizing throughout till its end. The evaluation of Test is on the basis of individual IQ levels, English Composition and Mathematics Tests. The duration of test is 1 hour and it is checked manually by HR department.

V.

Interview
The candidates who have successfully cleared the tests and have scored above than relevant mark are then called for interview. The interview is conducted by four people, one executive and three managers. All the four interviewers should preferably be from within the department but often that is not the case.

VI.

Recommendation to human resource department


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

VII.

Medical Examine
In this case, they examine the selected candidates through medical test, for that purpose they are send to Aga Khan Hospital and the candidates whose medical test is cleared, will be finally considered as potential candidate and will be hired in the organization.

VIII.

Final Selection After Passing successful candidates through Medical test, the officer of HR i.e. Mrs. Mona then who will be finally offered to have contract with selected successful candidates under the policy of the company. Although, Engro Vopak has small selection process which is collectively discussed with recruitment process altogether. HR officer mainly emphasize in IQ level in test and in subjective attributes and skills of Individuals for judging them incase of selection.

3.3- ORIENTATION AND TRAINING OF NEW EMPLOYEES IN ENGRO VOPAK:


The Engro Vopak, as part of its focus to ensure quality management system, made good progress towards achieving ISO certification, business needs, including its growth. Structured orientation and training programs were organized to facilitate early incorporation of the new hires. Engro Vopak Terminal Limited Page 15

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Orientation of New Employees in Engro Vopak


The objective of orientation is to acquaint all new employees with the basic structured and rules of Engro Vopak. A new employee is given general information which contain which contains Organizational Charts and other information related to Engro Vopak. Engro Vopak provides orientation at two levels (a) Generic or Organizational level orientation within one to two days in HR-department. (b) Department level orientation within the first week of the employeement.

Disclose Full Information


To disclose essential to employees, Engro Vopak has a publication policy, according to which report on all Engro Vopak activities, booklets, news articles and news letters are published sound communication in Engro Vopak also allows each employee to know exactly what is expected as far as her/his responsibilities and organizational mission statement, and what is happening within each organizational area communication between management and employees, who deal with clients and organizational process, is encouraged at Engro Vopak

Training and Development


The aim of training and development in Engro Vopak is to provide employees with the necessary skills and knowledge to fulfill the organizations corporate and business plan. All training sessions are delivered in a highly participative style, introducing topics in a challenging and thought- provoking way. At AVTL training is provided at two levels that is (a) organizational and (b) operational level. At Engro Vopak, training is need based and employees can fill a need and can give suggestions. Employees are trained for Management Profession and Technician.

Training Methods
On the Job Training Special Training Sessions Team Building Problem Based
Off the Job Training

On the Job Training:

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The Engro Vopak believes strongly that people grow and learn most effectively through experience. Therefore, every opportunity is sought to try to develop an employee through work related experience. Such development implies an expansion or stretching of abilities or aptitudes. It has to be based on the knowledge, skills, and aspirations within oneself. This form of development needs to be understood and actively supported by the employee and the supervisor.

Off the Job Training


To enhance work productivity, Engro Vopak continued with its off the job training programs to develop the softer skills of its Management and Technician Employees. Specially designed university- related programs from LUMS, PIMS and other training agencies; OCTRA, PSTD, ACE Consultant and Winning Edge etc. Non-Management staff is only trained in-house development centre.

Motivation
The HRM department of Engro Vopak motivates its employees by (a) Creating a friendly like community, (b) providing interesting and rewarding jobs, (c) giving fair compensation and awards (d) providing sports and recreational facilities like membership at Arabian sea country club, (e) sponsors social events and outside activities (f) participating in different community welfare programs (g) providing feedback and (h) providing training. These motivating measures lead to better performance and productivity, enhancement in employees skills, abilities and knowledge, reduction in turnover and encouragement of information sharing that is high performance work system

Teamwork and Empowerment


Team work gives better results than that of individuals. At Engro Vopak makes remind with the habit of out of the way thinking by assigning them motivational and recreational projects. Teams at Engro Vopak (a) develop goals and plans, (b) enhance communication among members, (d) solve problems and make decisions on a timely basis (e) successfully manage conflict, (f) clarify roles for team members, (g) operate in productive manner, (h) exhibit effective team leadership and (j) provide development opportunities for team members. To empower employees. Engro Vopak uses self management work teams and disclosure of essential information

3.4-PERFORMANCE APPRAISAL:

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Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in ensuring the success of the company through effective employee performance.

Objectives of Performance Appraisals in Engro Vopak:


To measure the work performance: To motivate and assist employees in improving their performance And achieving their professional goals To identify employees with high potentials for advancements To identify employees training and development needs To provide a solid path for career planning for each individual

Appraisal Policy:
At Engro Vopak HR officer follows a regular scheduled in providing feedback to employees; they providing a formal review program to evaluate work performance and to promote communication and discussion of job performance with respect to past performance.

Performance Review
Performance appraisal is done on 4th, 8th, and 11th months of the year for management position and for non management. It is done from January and February month for which forced distribution or bell curve method is used where predetermined percentages of rates are placed into several performance categories. Employees are empowered to monitor their own work and performance. There is separate section in the performance evaluation form for employees. Employees are free to give feedback about their evaluation and to identify their problems, needs and suggestions and then at the end of the process, the HR department asks supervisor and employees about the problem and their solutions. There is three month prohibationary period for non- management and technical employees Engro Vopak after which they are permanently employed on the basis of their performance whereas management staff are directly selected and done permanent.

Appraisal categories
Appraisal Category Definition of Category % of Total # OF Employees Which Can Be Related in This Page 18

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Category 1 2 Excellent Very Good Indicate exceptional performance Indicate performance that consistently meets the requirement of the position, very good indicates the is on track for advancement Indicate performance that requires improvements (i.e. meet requirement without initiative or advancement) Performance to be improved ( hardly meet requirement) 15% 10%

Good

8%

Basic

5%

Performance appraisal system of Engro Vopak links compensation to performance due to which employees are motivated and committed. It also allows management to assess the performance of Engro Vopak as a whole. It also identifies training needs and promotions and as a result employees skills and knowledge is improved. It identifies employees weakness and strengths due to which employees discover areas to improve and grow and ultimately improves productivity and Engro Vopaks performance. But the system lacks opinions of employees regarding their supervisor. This is the reason that the employees at Engro Vopak are not entirely satisfied with the performance appraisal system.

Feedback:
Workers at Engro Vopak are informed of their performance and given the opportunity to express their opinion over their own level of performance against each competence. This serves the following two main purposes: It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist that the reviewer is unaware of. By asking the worker what he sees to be his own strengths and development areas often help to reduce negative responses and makes planning training needs/inputs activities easier if the person is able to express for himself the areas in which he feels he can improve.

Promotion Policies

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The Engro Vopak structure is in three layers, comprising managers, officers and supervisors------in that order starting from the bottom and working towards the top rung of the ladder. The COED is responsible for promotion within the organization. Whenever a position is vacant and a member of the organization is to be promoted, a member of COED brings his case to the COED meeting where it is thoroughly discussed. After the case is discussed a voting is carried out and it decides whether to promote the person or not.

Supervisor

3-4 years

Officer Manager

According to the COED decision According to the COED decision

3.5-COMPENSATION AND BENEFITS:


Engro Vopak provides its employees with market competitive salaries, but through financial mean such as intrinsic and extrinsic rewards and retains employees which are reviewed at frequent intervals. The Company's Total Remuneration package is competitively aligned to the best in the industry and is appropriately balanced between providing cash compensation and benefits, including, medical and retirement benefits. The annual salary rewards are linked to employee performance. An Employee Share Option Scheme operated by the Employees Trust offers new employees the opportunity to acquire ownership in the Company. This compensation system of Engro Vopak ensures that salaries are competitive and equitable which attracts and retain the services of competent qualified employees, providing fair and equitable compensation, motivates employees, improves employees commitment and increase labor productivity and performance.

Salary policy:
The company will pay salaries of the employees as fallows

All new employees have to open bank accounts in specified banks prescribed by the company so that their salary will be credited at the end of each month. After opening account with the bank employees should forward his account number to HR. Page 20

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Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day. Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job.

Bonuses
The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives. In Engro Vopak the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager of respective departments recommends a candidate from his section for the reward purpose to HR.

Reward Categories at Engro Vopak:


Intrinsic and Extrinsic rewards include:

Smart/Quality work Exceptional performance in a project Targets achievements Special assignments Medical care Life insurance Vacations Club Policy Travel Education assistance policy Mobile phone Business mobile phone policy Medical entitlement

Job Evaluation

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Engro Vopak Conducts salary surveys for non-management position through formal phones. Whereas Engro Vopak collects the current pay rate which is exist in the market through mainly Ferguson at the time of yearly audit of the same industry for management level of positions.

3.6-CAREER DEVELOPMENT
Engro Vopak is committed to the essential concept that career development is a shared responsibility, with employees part in it being an active and positive one. Its aim is to match employees personal needs, desires and skills with the requirements of the Company for the right person in the right job at the right time. Their system requires employees contribution to the discussion about the future at the time of the appraisal interview.

3.7-RETENTION OF EMPLOYEES
Engro Vopak is a small organization related to chemical, oil and gas storage tank, its workforce is around consisting of 80 to 90 employees. Their business isnt affected to this recession due to nature of having such business, as compare to other companies, employees turnover is considerable lesser than other companies, but in last year, they immediately suffered employees turnover around 4 to 6 employees and afterwards they have analyze the reason and try to bridge the gaps between the employees satisfaction through their incentives and giving them multiple task (challenging tasks)

3.8- HEALTH & SAFETY POLICIES:


The safety of employees is everyones responsibility. Accidents, precaution and efficient work go hand in hand. All levels of employees have a primary responsibility for the safety and well being of all of Engro Vopak.

Therefore, interest in practicing safety prevention must be encouraged by: Setting good examples. Acting upon safety records. Reviewing safety programs. Starting activities that will stimulate and maintain employees interests.

No phase of operation of administration is of greater importance than accident prevention. It is the policy of the Company to provide and maintain safe and healthy working conditions and to follow operating practices that safeguard all employees and result in safe working conditions and efficient operations.

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4-SWOT ANALYSIS:
According to HR- Perspective: Strengths:

Small size of the organization gives the strong control to the HR-department over the employees. Less HR-problem due to small company size. Engro Vopak believes in making people realize their full potential and capabilities which is why jobs are designed to be challenging and goals are made to be achievable yet competitive. This results in a high level of motivation and job satisfaction for the employees and automatically promotes a healthy work environment. More job satisfaction yield to less turnover and absenteeism. The company has a very well balanced and realistic incentive program. It also focuses on giving additional benefits to its employees apart from the basic remuneration. This results in employees giving their Heart and Soul in working for their employer. The HR practices of Engro Vopak greatly enhance its image as a company that wants to contribute towards the society in every possible way. As the main focus is on developing better people not just better employees. Open friendly environment/ open-door culture gives the better interaction between the management and employees.

Weaknesses:

The most important weakness is that the HR-department has not direct access to the top management of ECL. Obsolete method are using in the Engro Vopak for recruitment process. The size of HR-department is consisting on two- people therefore they have overloaded by others responsibilities.

Opportunities:

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The company can discover great potential through the future graduates as every generation is being taught in more effective manner that leads to better growth. Being a leading company in the storage and safety of chemical of Pakistan Engro Vopak can recruit the cream of graduates every year and utilize their improved knowledge and abilities. With the expansion in the company business in Pakistan, the HR department can be expended in order to manage diversity of workforce. They have an opportunity to introduce Liquid Natural Gas (LNG) in the Pakistani market.

Threats:
It is very difficult to find any threat for company because of the no competitor exists in the market.

5-CONCLUSION
Human resource is one of the most exciting and challenging departments of the organizations. People are very important in any organization. Because it is the people who start the business activity, run systems, make all business decisions. Human resource is such a resource which manages all the other resources of organization. Keeping this fact in mind all the organizations who want to survive in the coming era have to pay special attention to their human resource departments. The best practices of human resource management are used to develop and improve organizational employees, who, in turn are able to enhance performance of the organization and develops high performance work systems. Any HRM practice alone cannot enhance the performance of the company unless it is combined with other practices of human resource management. So a proper linkage must exist among all the practices to achieve high performance work system. To conclude ENGRO VOPAK has a moderate HR system. That is the reason they didnt found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. There are some minor discrepancies but they are adjustable with little effort.

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6-RECOMMENDATIONS:
To establish core competencies and to bring competitiveness, ENGRO VOPAK should implement numerous effective plans to improve the performance of its various departments. Supervisors must manage employee performance well in order for ENGRO VOPAK to accomplish its mission and achieve its goals. Following are some recommendations for ENGRO VOPAK, which we personally feel can be useful for the organization, its employees and the customers. Effective Performance Management Performance management is one of the most important parts of a Supervisors or team leaders job. Developing skills in performance Management is wise investments that will help ENGRO VOPAK to achieve its Goals. Managing employee performance includes: 1. Planning work and setting expectations. 2. Monitoring and measuring performance. 3. Developing the capacity to perform.
4. They should rate employee Performance on the basis of 360 degree because it has small

size so they can effectively do that. They Should Do: 1. HR should develop there own policies in Engro Vopak instead of following mother company policies i.e. Engro Chemical 2. It should be segregated from the supervision of Finance department and should work as Separate HR department and so that they report directly to the top management instead of through finance department.

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3. There is need to have some kind of format replacement charts and forms for job

description and performance appraisals instead of working on manually basis. 4. Technological advancement is required for integration of employees like intranet.
5. Size of the company should be increased from 90 to onwards and although their HR

department require increasing in HR manager from 2 to 5 so that the extra burden should be distributed on equally basis or as per credibility and so that quality of standards should achieved but also maintained it because HR of any Company can be considered as asset for the organization. 6. They must conduct the exit interview.

REFERENCES:
MUHAMMAD TABISH HR-Supervisor Engro Vopak Terminal Ltd. Tel#: (92) 21 5610388 Mobile#: 0322-2262293

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INTERVIEW QUESTIONS
JOB ANALYSIS
1. How does the selection cycle work at Engro Vopak Ltd? And how do you plan for this? 2. What are the top five competencies and skills you look for in candidates? OR What are the attributes you will see in the potential candidates for hiring (what are the criteria you have set to hire the potential one)? 3. How do you collect information for job description and job specification? And at what extent those are effective in collecting valid information? OR What are the methods you used to collect the job analyses information? 4. What are the job description and job specification are required for hiring hr employees and hr specialist? 5. How do you job enrichment, job rotation and job enlargement to enhance the performance and skills to accomplish organizational goals? 6. Do you have software programs to identify the competencies and skills of candidates?

RECRUITMENT AND SELECTION


1. What are the methods you commonly used in recruitment of employees? 2. What do you prefer commonly either internal recruitment or external recruitment? 3. Do you link with employeement agencies and at what extents to these agencies are effective in outside recruitment? 4. Could you please tell us about your succession planning? OR How do you plan, recruit and select for managerial positions? 5. Why careful selection is important and what are the methods that you used in selection of employees and how long does it take? 6. Do you prefer to verify the background and references check which is mentioned by the candidates? 7. As a major partner in ROZEE.PKs Online recruiting tools how would you rate the success & importance of online recruitment firm such as ROZEE.PK? 8. Whats your budget on advertising or ads construction to recruit best candidates?

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CANDIDATES TESTING AND SELECTION


1. Which type of tests are you using in the selection process? 2. Have you management assessment centre and which types of exercise you use to train them? 3. What are the main things you look for in pre employeement background investigation?

INTERVIEWS
1. Which type of questionnaires you asked during the interviews? 2. Is there company following the concept of retention of employees and if so how they are doing
(normally employer force employees to sign on bond)? OR What kind of retention policies do you have in place? 3. What do you think is the biggest mistake shortlisted candidates make during a job interview?

TRAINING AND DEVELOPMENT


1. 2. 3. 4. 5. 6. 7. 8. How do you make new employees familiar with EFLs rules and regulation? How long does an orientation program take in EFL? How do you identify training requirement? Which type of training programs do you use and what extent those are effective for new and existing employees on the job and off the job training? How do you actually make employees intact with one anothers? How effective are your internal communication system to record employees satisfaction or discontents? Does Engro emphasize on work life balance in its organization and how do you achieve this balance? How much you allocated your budget for employees training and development?

PERFORMANCE APPRAISALS

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1. What are the criteria to evaluate the performance of employees in EFL? And what methods do you
use for it? 2. Could you please tell us about your MBOs Programs? 3. Which type of problems do you face in performance appraisal and what do] you do to resolve them? 4. How do you provide promotion and on what basis?

COMPENSATION AND BENEFITS


1. How do u think employee safety and benefits are important to encourage the employees morale
and performance

2. Which type of compensation and benefits programs are offer to the employees in EFL? 3. Is there any retirement benefit or some kind of provident fund benefit provided by organization to
employees?

HEALTH AND SAFTY PROGRAMS


1. What do you do for health safety and security for the employees in EFL?

MANAGEMENT AND CBA RELATIONSHIP


1. How is the relationship between management and at what extent it is effective for the EFL? 2. Could you please tell us about some key HR legislation? OR What are common hr laws that
are followed by organization like EEO? 3. Do Engro employees have freedom or empowerment in taking decisions and if so then to what extent? 4. How do you see important to have diverse work force in organization?

GENERAL OPINION
1. What are Engros principles of success?
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2. What are your biggest professional challenges? 3. Is competition creating opportunities for EFL and how? 4. What kind of career growth can one expect in EFL? 5. What kind of work environment do you have in place? 6. Do you believe that Pakistani Universities are creating an effective talent pool and what is your companys strategy to attract and create the best talent in Pakistan? 7. Due to rough economic situation and soaring price rise how does your company deal with keeping itself cost effective and attractive for job seekers? 8. How does Engro keep its graduates and faculty up to date with new trends? 9. While the dairy, chemical and fertilizer industry among others are facing competition where do you see Engro overall in the next five years? 10. At what levels do you actively recruit professionals are required for the training?
11. How do you see your strategic human resource role in organization and to what extent it would be helpful to achieve your strategic goal?

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Job Application Form


PERSONAL INFORMATION: First Name _____________________________ Middle Name ___________________________ Last Name _____________________________ Street Address _______________________________________________________ City, State, Zip Code _______________________________________________________ Phone Number (___)___________________________________ Are you eligible to work in the United States? Yes _______ No_______ If you are under age 18, do you have an employment/age certificate? Yes ___ No ___ Have you been convicted of or pleaded no contest to a felony within the last five years?

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Yes_______ No_______ If yes, please explain: _________________________________________ __________________________________________________________ POSITION/AVAILABILITY: Position Applied For ________________________________________ Days/Hours Available Monday ____ Tuesday ____ Wednesday ____ Thursday ____ Friday ____ Saturday ____ Sunday ____ Hours Available: from _______ to ______ What date are you available to start work? ________________________________________ EDUCATION: Name and Address Of School - Degree/Diploma - Graduation Date _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Skills and Qualifications: Licenses, Skills, Training, Awards _____________________________________________________________ _____________________________________________________________

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EMPLOYMENT HISTORY: Present Or Last Position: Employer: _____________________________________________________ Address:______________________________________________________ Supervisor: ____________________________________________________ Phone: _______________________________ Email: ________________________________ Position Title: _________________________ From: ______________ To: ______________ Responsibilities: ____________________________________________________ __________________________________________________________ Salary: _______________ Reason for Leaving: ____________________________________________ =========== Previous Position: Employer: _____________________________________________________ Address:______________________________________________________ Supervisor: ____________________________________________________ Phone: _______________________________ Email: ________________________________ Position Title: _________________________ From: ______________ To: ______________ Responsibilities: ___________________________________________________

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__________________________________________________________ Salary: _______________ Reason for Leaving: ____________________________________________ May We Contact Your Present Employer? Yes _____ No _____ References: Name/Title Address Phone _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ I certify that information contained in this application is true and complete. I understand that false information may be grounds for not hiring me or for immediate termination of employment at any point in the future if I am hired. I authorize the verification of any or all information listed above. Signature______________________________ Date__________________________________

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