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Human Resource Management

Prepared For:
Sajid Faheem Faculty Member (HND Business)

Prepared By:
Amein Durrani (Haleeb Foods) Usman Akbar (Haleeb Foods) Ihtesham ur Rahman (Pakistan Tobbaco Company) Zain Javed (Pakistan Tobbaco Company)

PAKISTAN TOBACCO COMPANY


TABLE OF CONTENTS

1. ACKNOWLEDGEMENTS 2. COMPANY PROFILE I. II. III. IV. V. VI. MISSION STATEMENT OF HALEEB FOODS VISION STATEMENT OUR VALUES REGISTERED HEAD OFFICE FACTORY AREA SALES OFFICE PESHAWAR

1 2 3 3 3 4 4 4 4 5 5 6 6 6 6 7 7 8 8 10 10 11 12 14 14 15 16 16 17 1819 20

3. PROJECT METHODOLOGY I. II. III. IV. V. VI. VII. VIII. IX. X. PROJECT OBJECTIVES SCOPE WHAT IS HRM OBJECTIVES OF HRM THE CHALLENGES OF HUMAN RESOURCE MANAGEMENT SYSTEM APPROACH TO HRM JOB ANALYSIS HR PLANNING RECRUITMENT SUMMARY OF RECRUITMENT AND SELECTION PROCESS RESPONSIBILITIES

4. CAREER OPPURTUNITIES FOR SALE PROFESSIONALS i)SELECTION PROCESS a)INTERVIEWS b)CONDUCT REFERENCE CHECKS c) BIOGRAPHIC DATA d) WORK SAMPLING TECHNIQUES e) TESTS f) JOB DESIGN 5. CONCLUSION

Company Profile About Us


Haleeb Foods Limited (formerly CDL Foods Limited) is a fast growing food products company. Having doubled its turnover in the last four years, the company has a turnover of more than Rs.4 billion presently. The company also operates as a franchise of Candia Cedilac of France. CDL has a state of the art milk processing facility situated at 62-KM Multan road, Near Bhai Pheru, and has a team of 400 exceptional individuals to support its operations. The head office of CDL is located in the evergreen city of Lahore at 135-Ferozepur Road. CDL is producing a number of food products both for consumers and industrial users. The main brands of CDL are as following:

CDL is the first food company and so far the only dairy company in Pakistan to get ISO 9002 Certification - a Quality Management System. While adhering to this Quality Management System, the company is committed to strict quality standards in all its operations - from the collection of milk to the provision of hygienically processed nutritious products to its customers. The company follows the philosophy of "delighting the customers". The company treats them as partners and keep channel of communication open with them. The company has succeeded in this by continuously improving the quality of its products and by satisfying the needs of its customers. The company believes in creating and sustaining an environment, which encourages learning and empowerment and these in turn help strengthen the quality culture across the business. Company's Mission: providing nutritious and hygienically processed food product to our customers. Enhancing

our reputation for quality in all our operations. Promoting mutual trust with customers, suppliers, employees and shareholders. Providing a healthy and safe environment to our community.

Mission Statement of Haleeb Foods


Build branded foods to improve quality of life by offering tasty, affordable and highly nutritional products to our consumers while maximizing stake holders value.

Vision Statement
Most innovative and fastest growing food company offering products enjoyed in every home every day.

Our Values:
Enterprise Empowerment Accountability Trust Team Work

Factory
62-KM Multan Road, Bhaipheru Phone(s): +92 +92 +92 Fax. +92 (42) 751 1636 (4943) 510 874 & 5 (4951) 38 822 & 3 (4943) 51 0844

Area Sales Office (Peshawar)


Ittehad Plaza, Abdara Chowk, University Road, Peshawar, Pakistan. Phone(s): Fax. +92 (91) 843909 +92 (91) 843909

Project Methodology
Project Objectives
The goal of this project is studying the Human Resource planning techniques of Haleeb Foods in order to better understand the strategies adopted by todays modern world organizations.

Scope
The scope of the project is limited to the area of Human Resource issue concerning recruitment and selection at Haleeb Foods. We would basically concentrate on the following issues in Haleeb Foods. Recruitment Policies The Systamatic Approach to Selection Reward Management Disciplinay Procedure

WHAT IS HRM
HRM is a process of bringing people and organization together so that the goals of each are met. It is that part of management process, which is concerned with the management of human resources in an organization .in short t may be defined as the art of procuring, developing and maintaining competent work force to achieve the goals of an organization in an effective and efficient manner. HRM is a pervasive force and is present in all organization. It is action oriented and encourages action rather than keeping records. It has individual orientation so those employees may develop their potential fully. It is also people oriented in that it brings individuals and groups to communicate with each other it intends to develop the full potential of employees. It tries to integrate human assets in the best possible manner in the service of an organization .HRM is a comprehensive function. It is basically a method of developing potentialities of employees so that they get max satisfaction out of their work and give their best efforts to the organization. The HRM manager is a special advisor to the line managers so that they can do heir personal work more effectively. The HR function is also an interdisciplinary function with inputs drawn from psychology, sociology, anthropology etc. In the end it is the most certainly a continuous function with a requiring constant alertness and aware ness of human relations and the importance in everyday operations.

Objectives of HRM
The objectives are as follows: To help the organization reach its goals. To employee the skills and abilities of the work force efficiently. To provide the organization with well trained and well motivated employee. To increase to the fullest the employee hob satisfaction and self actualization. To develop and maintain quality of work life. To communicate hr policies to all employee. To help maintain ethical policies and behavior.

The Challenges Of Human Resource Management


Every organization most valued asset area its people. Any organization that produces goods and services will survive only if it has the right people. People however work for many other reasons other than economic security. They want to achieve, create, stay busy etc. The want for recognition and status are other reasons. Just like organizations and counter problems in their day-to-day running, employee and counter problem in their daily work. The challenge of the hr manager is to minimize these obstacles and problems. Additionally the challenge for the HR manager is to improve the contribution made by people to an organization through effective and efficient use of resources. Efficient means that it must use the minimum amount of resources needed to produce result. Effective means producing right things thru right ways. The resultant productivity (ratio of output to input) gains obtained through hr efforts enable managers to reduce costs, save scarce resources enhance profits and offer better pay, benefits and working conditions to employees

System Approach to HRM


A system is a set of interrelated but separate elements working towards a common goal. What one group does in a working environment has serious implications on other groups. The enterprise operations should be viewed in terms of interacting and inter dependent elements. To carry out its operations each enterprise has certain depts. Known as sub- systems. The HRM subsystem may have parts such as procurement / training compensation etc. If we were to view this subsystem as crucial to organizational performance and organization present itself as follow: Job analysis: It is the process of collecting information relating to the operations and responsibilities of a specific job. Human resources planning: It is a process of determining and assuring that the organization will have an adequate number of qualified persons, available at proper times, performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. Recruitment: It is the process for searching for prospective employees and stimulating them to apply for jobs in an organization. Selection: It is the process of assigning the selected candidate with the most suitable job. It is matching of employee satisfactions with job requirement.

First we will talk a little about Job analysis and its applications.

JOB ANALYSIS:
Job analysis is the process of collecting information about a position to be filled that helps to identify the major job requirements (MJR) and links them to skills, education, training, etc., needed to successfully perform the functions of that job. The purpose of the job analysis is to identify the experience, education, training, and other qualifying factors, possessed by

candidates who have the potential to be the best performers of the job to be filled. It can also be used to identify documents and other elements vital to the candidate evaluation, referral and selection process, such as measurement methods and interview requirements. There are two key elements of a job analysis: 1. Identification of major job requirements (MJRs) which are the most important duties and responsibilities of the position to be filled. MJRs are the main purpose or primary reasons the position exists. The primary source of MJRs is the most current, official position description. 2. Identification of knowledge, skills and abilities (KSAs) required accomplishing each MJR and the quality level and amount of the KSAs needed. In the job analyses, KSAs are developed that are measurable, that can be documented, and that produce meaningful differences between candidates. Typically, possession of KSAs is demonstrated by experience, education, or training. The goal of KSAs is to identify those candidates who are potentially best qualified to perform the position to be filled; KSAs are most useful when they provide meaningful distinctions among qualified candidates. Source documents for KSAs may be the position description, Office of Personnel Management qualification standards, and job classification standards. Haleeb Foods is an organization of present day and believes in all the modern HR strategies and practices unlike some other Pakistani organizations. The HR department strongly recommends the use of Job Analysis and updates it on regular basis. According to Mr. Wasif Waseem Job analysis helps their organization in collecting the following information: Recruitment and Selection Training& Development Planning Job Evaluation Job Design Performance Appraisals Job analysis is conducted through questionnaires prepared by the able staff of HR Haleebs Hr department. The questionnaire is developed with the help of feedback from the employees and direct observation of the employees done by the managers, supervisors and HR department. Job description is an important part of Job Analysis and Haleeb Foods have written job desriptions of all the workforce employed in their organization sample job description is given below. When asked about the Occupational Dictionary his answer was very much predictable that this is an American Concept and is not yet pertinent here. Regarding job specification their much emphasis is laid on related knowledge, skills and behavior and aptitude of certain individual applying for any job. Next we would like to discuss HR planning and why it is so important in todays business world.

HR PLANNING:
Human Resource (HR) planning involves assessing the availability of jobs in the organization and planning accordingly to fill in these vacancies. HR planning gives the hiring manager and the recruiter a clear idea about the number and profile of the candidates required for the job. It facilitates creating the best fit between a candidate and the job at hand. HR planning ensures that adequate human resources are available when employees leave from the organization.HR managers use different modern day techniques like Trend Analysis, Ratio Analysis or Scatter Plot to assess their future needs for Personnel. In Haleeb Foods they do use techniques like trend analysis or ratio analysis, but Its not done very scientifically. Rather they forecast their personnel need through filtering from their future business needs. In that they do their sales volume analysis and past employment trends like employee turnover rates, opening of new positions. In the end its the call of the GM HR to assess the future need and much is dependent on his managerial judgment. Different department heads also send their requirements and proposals for vacant posts to GM HR department which also have to be discussed and approved by the CEO of the company. Haleeb Foods does inside recruiting too when needed. They do have a succession planning system according to which the managerial positions are filled in through a Management replacement chart system. For all the other job inside recruiting is done by posting the jobs on the notice board and then the capable candidates are called for interviews and have to pass through the regulation hiring process of Haleeb Foods. Mr. Wasif was unable to provide us with a Management Replacement Chart at that point of time.

RECRUITMENT:
The practice carried out by every organization with the primary purpose of identifying and attracting potential employees. Haleebs recruitment and selection practices and procedures are transparent, fair and comply with legal requirements. Transparency will be ensured by making use of HR Personnel and these People will be utilized for all senior and middle management vacancies. All persons who shall be involved in the recruitment process shall fairly represent a diverse group. In advertising of vacancies both internally and externally, Haleeb Foods would like to make applicants aware that we embrace the principles of equity in employment and good practice.

Summary of Recruitment and Selection Process and Responsibilities (HALEEB FOODS)


Process HR Department is advised that a vacancy has arisen in a particular department. Details of the position and personnel requirement sent to HR with appropriate Approvals from the relating Department Financial approval is sought to advertise the vacancy Financial approval is given Advert and further details are finalized Agree recruitment plan (panels, dates) Internal advert is placed on internal bulletin The advert closes and applications are collated, equal opportunity info detached and applications passed to the Department for short listing. If no applications advert is advertised externally (reflecting recruitment plan) A short list is drawn up and candidates are invited to interview The interview takes place Post interview references are sought for the successful candidate Candidates selected Responsibility Departmental Manager

Departmental Manager

Departmental Manager GM HR / Accounts ( Finance Dept) Recruiting Manager HR (for advert)/ Related Departmental Manager HR HR

HR following instruction by Departmental manager Dept Manager/Recruiting Manager Head of Department / HR Interviewing Panel HR Manager HR Selection Panel/ Dept Head

A salary assessment is made, HR/ Accounts taking account of financial approval An offer letter is sent to the HR successful candidate (offer pack to

include medical questionnaire and disclosure application form where applicable) Once medical clearance (and a satisfactory disclosure check) has been received a contract of employment is written Handover preparation resources : finalize arrangements for phone, IT, room Handover preparation the job: prepare induction plan Initial induction and the completion of employee forms, such as bank details etc. Employees details are entered onto HRMS

HR

Departmental Manager Departmental manager HR HR Manager/HR

Haleeb Foods does its recruiting themselves and do not rely on outside help. Advertising is done mostly in Newspapers or their website. Haleeb Foods does a lot of college recruiting too. Referrals and walk in are always welcome at Haleeb Foods.

A sample job advertisement given on the web Career Opportunities for Sales Professionals

We require young, energetic and motivated individuals as Promotion Officers for the following cities: LAHORE,

Sales

KARACHI,

ISLAMABAD, PESHAWAR, FAISALABAD, GUJRAT and BAHAWALNAGAR We seek candidates with the following profile:

A team player, with excellent interpersonal and At least a Graduate 2-3 years FMCG field sales experience Age 22-36

persuasive skills

The incumbent will be responsible for achieving sales targets in assigned territory, ensure the availability of Haleeb Foods range of products and implementation of company commercial policies. Applicants may send their resumes with a recent photograph by August 31, 2004 to the following address: General Manager Human Resources Haleeb Foods Limited 135 Ferozepur Road, Lahore Ph # 111 135 135 www.haleebfoods.com

SELECTION PROCESS:
Selection methods that focus both on crucial requirements and organizational culture include: Interviews Biographical data Work samples Self-assessment Personality tests Cognitive abilities Physical abilities

INTERVIEWS:
Regardless of what method of interviewing is used, certain arrangements are necessary prior to the interview: arrange and confirm dates and times with candidate develop the interview schedule and confirm with all individuals who will be involved in the interview process (provide a final copy of the schedule to the candidate, the interviewers, and the search committee members) arrange for escorts to and from all interviews arrange overnight accommodations if necessary arrange for transportation if necessary arrange for a host (and pick up from airport, train station, etc. if necessary) arrange for any meals provided outside of the interview schedule if necessary

At Haleeb Foods interviews are generally non-structured and are conducted only by HR Department. According to MR. Wasif Unstructured interviews give them a better understanding of the candidates. When asked isnt this approach time consuming? He replied We put a lot of emphasis on Selecting the right people for right job and unstructured interviews suits best to out business environment, so no matter how time consuming it is we cant take risks of hiring wrong people just for the sake of time saving and incur heavy financial loses later on. Answering to Stress interviews he said that if the job requires stress handling then they do create a stressed environment in the interview to test the persons nerves. They dont have any specialized panel rather the interviewing is done by the top HR management and related Dept Managers. According to Mr. Wasif Interviews play a major role in selecting the employees as they have very thorough and long interviews related to job and personality checks? When asked if they have any psychologist in the panel for personality checks he said we have very experienced and professional people working in our HR department and therefore dont feel the need of a qualified psychologist. For job related questions most of the interviewing is done by the related dept people.Mr Wasif weighted Interviews to 70% in selecting the employees for a job.Mr Wasif also said that they have a very detailed application form which has to be filled by every applicant and it tells us a lot about the applicant in advance.

Conduct Reference Checks


One of the most crucial but often neglected steps in the hiring process is reference checking. Reference checking is often forfeited when a student affairs division is pressured to hire in a hurry. Additionally, reference checking can be a frustrating exercise that yields little useful information about a candidate. Nevertheless, the desire to save time and avoid legal ramifications should not prevent any recruitment staff from conducting thorough reference checks on all prospective new hires. Reference checks round out the profile of a job applicant by providing third-party support for first impressions. Reference checks should be made only for those candidates who have advanced to the finalist stage and who are under serious consideration for the job. Haleeb Foods stresses a lot on reference checks to avoid negligence hiring .At least 3 references are required when applying for a job in Haleeb Foods. In sensitive positions like top Management Positions the number of references could be more.

BIOGRAPHIC DATA:
With an increase in coaching, applications have become more and more similar. Sometimes applicants may seem much the same on paper, but some have greater initiative or people skills than others. Biodata (biographical data) forms have been developed to identify non-academic activities such as these. Biodata consists of systematic information about hobbies, interests and life history. The main use of biodata is in the preselection of basic-level jobs such as apprentices or graduate trainees. The logic is that if candidates are matched with existing staff, people with

similar interests can be found who are likely to be suitable for the job. The greatest value of the techniques is its ability to reduce staff turnover. Biographic data is collected through application forms. As already mentioned they have a very detailed application form which has been developed by their HR department. In the interview they do re check about the truth of the info which has been provided by the applicant.

WORK SAMPLING TECHNIQUES:


A technique that discovers the proportions of total time that various activities contribute to the job by taking a relatively large # of observations at random intervals Used to determine: production standards, machine and personnel utilization, and job allowances. Typically faster and cheaper than other techniques Well suited for high cycle time and low repetition rate jobs & service industry Does not require the analyst to continually observe the job Reduced clerical time A smaller # of hours are required to collect the data Operator not subjected to long periods of observations Haleeb Foods HR department does use work sampling techniques as a part of the selection process. If they are hiring a secretary for one of their executives she would be tested by typing few lines on Microsoft Word or asked to write a dictation in short hand.

TESTS:
Haleeb Food conducts aptitude and personality tests to further assess the knowledge, skills and behavioral traits of an individual. They rank these tests very high in the selection process and is another step to avoid negligent hiring. These tests are either prepared by their own HR department or they use standards tests developed by renowned Psychologists and outside Recruiters. Employment type personality assessments are used for various purposes such as training and development, customer service testing, career assessment, reducing employee turnover, leadership development, applicant screening, and also as a supplement to commercially provided background checks. Good pre-employment personality assessments and sales aptitude assessments are behaviorally based as opposed to the standard personality test or profile testing inventory which may only have face validity. Behavioral testing provides for a more predictable outcome when used for screening applicants for employment. Many times the behaviors outlined in the employment testing report can be confirmed through background

screening reports or subsequent reference checks behavioral interviewing is a very subjective process. By using validated employment tests and assessment tools, Haleeb Foods adds a much needed element of objectivity, especially regarding management evaluations. The cognitive ability tests are also held to assess the mental ability and intelligence of the candidates. These tests are either aptitude tests (mentioned above ) or General IQ tests. In these tests hey can check the numerical ability, verbal comprehension, numerical reasoning , visual speed and accuracy etc depending on the nature of the candidates job. These tests also help the HR Dept for Haleeb Foods to more effectively manage their interview time because they have the majority of the details already laid out in front of them before going into the interview process. All employees have to pass a medical and physical test( depending on the nature of job) too. But there are no other tests like drug screening, graphology or polygraph tests.

JOB DESIGN:
Job design refers to the way that a set of tasks, or an entire job, is organized. Job design helps to determine: what tasks are done, how the tasks are done, how many tasks are done, and in what order the tasks are done. It takes into account all factors which affect the work, and organizes the content and tasks so that the whole job is less likely to be a risk to the employee. Job design involves administrative areas such as: job rotation, job enlargement, task/machine pacing, work breaks, and Working hours. When a new job is to be designed, the related dept sends a requisition to HR Dept. After through review by HR dept and approval by GM Human Resource and CEO of Haleeb Foods the requisition is then send to Finance Dept to review the financial aspects of the new job. If it is deemed feasible from Finance dept it is then send back to HR and hen they start developing the job analysis and other frameworks for that job. According to MR Wasif a good job design comprises of the following:

Allows employee input. Employees should have the option to vary activities according to personal needs, work habits, and the circumstances in the workplace. Gives employees a sense of accomplishment. Includes training so employees know what tasks to do and how to do them properly. Provides good work/rest schedules. Allows for an adjustment period for physically demanding jobs. Provides feedback to the employees about their performance. Minimizes energy expenditure and force requirements. Balances static and dynamic work.

REWARD MANAGEMENT
For effective reward management, you must carry out accurate performance evaluation which can further lead to incentive schemes. Following is the complete performance evaluation form which includes all the aspects of the job and factors determining pay.

Name Date of hire Period of review: From

Designation Deptt./location

To

i. ii. iii. iv. v.

A copy of the Performance evaluation notes should be given to the employee for his/her information before his/her evaluation date. The Supervisor/Manager should refer to the Performance Evaluation notes and explain to the employee how the evaluation will be conducted. The employee must be rated according to his/her present job description. The employees performance in each area should be evaluated in comparison with other employees doing similar or related work. It is important to concentrate on one factor at a time and then indicate your opinion about the employees abilities in that area by circling the appropriate number as under: EX (exceptional) performance is well above expectations VG (very good) performance consistently exceeds requirements GD (good) performance meets and occasionally exceeds the minimum job requirements AC (acceptable) performance meets the minimum job requirement UA (unacceptable) performance fails to meet the minimum job requirement The employee being evaluated should sign the form after evaluation.

vi.

Major accomplishments in the last six months:

Goals for the next six months:

Training & Development

Career Programme:
Capable of developing to a higher position Suitable for present position Unsuitable for present position

WORK EXPERIENCE

FACTORS 1. 2. 3. 4. 5. Job knowledge Quantity of work Quality of work Safety / housekeeping consciousness Customer orientation Reliability/responsibility Analytical ability Initiative Problem solving & decision-making Quality consciousness

EX 5 5 5 5 5 5 5 5 5 5

VG 4 4 4 4 4 4 4 4 4 4

GD 3 3 3 3 3 3 3 3 3 3

AC 2 2 2 2 2 2 2 2 2 2

UA 1 1 1 1 1 1 1 1 1 1

TOTAL SCORE

WORK ATTITUDES PERSONAL FACTORS

1. 2. 3. 4. 5.

1. 2. 3. 4. 5. 1. 2. 3. 4.

Work discipline Care of companys property & assets Attitude to job/enthusiasm for work Reaction under pressure Conduct and support training Team work/co-operation Relations with others Power of expression (oral & written) Overall conduct

5 5 5 5 5 5 5 5 5

4 4 4 4 4 4 4 4 4

3 3 3 3 3 3 3 3 3

2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 .

SUPERVISORY FACTORS INTERPERSONAL FACTORS

1. 2. 3. 4.

Planning/organising Leadership/supervision Cost control Development of subordinates

5 5 5 5

4 4 4 4

3 3 3 3

2 2 2 2

1 1 1 1 .

RATING

TOTAL SCORE Non-Supervisor : / 95 = %

OVERALL EVALUATION

Exceptional Very good Good Acceptable Unacceptable

P9 P8 P7 P6 P5 P4 P3 P2 P1

91% to 100% 81% to 90% 71% to 80% 61% to 70% 51% to 60% 41% to 50% 31% to 40% 21% to 30% 0% to 20%

Supervisor : / 115 = %

Overall Evaluation = P .. EVALUATED BY Signature.. Name Date .. Date . AGREED BY Signature.

REVIEWED BY HOD .. Date .. CEO Date

UPDATED BY HR Signature.

Date .

CEOs Remarks:

NOTES TO PERFORMANCE EVALUATION


1)

Major accomplishments in the last six months This is a brief summary of some of some of the employees achievements during the last six months. These achievements should be checked against the goals set for him/herself by the employee in the previous evaluation. Goals for the next 6 months The goals set by the employee for him/herself should be realistic, measurable, individually achievable and specific. This exercise will assist the employee to focus on the key areas in which they should work in the next 6 months. Training & Development The employees training and development needs should be listed with a mutually acceptable time frame for the training and development to be conducted. Training should assist the employee to overcome any weaknesses (s)he may have or to move on to the next stage of his/her development. Additional information Any information that affects the performance of the employee but which is not specified in any other section of the form should be reflected in this column.

2)

3)

4)

5) Explanation to performance evaluation factors a) Work performance


i)

Job knowledge the ability to master the details, background and related information of the job so as to handle the job competently.

ii) iii)

Quantity of work the amount of work done. Quality of work the ability to produce accurate, thorough work on time to the customers (internal and external) satisfaction. Safety/housekeeping consciousness Maintaining a clean, organised and safe workplace. Customer orientation Sensitivity to the customers needs and the taking of appropriate action to meet those needs. Reliability/responsibility can the employee be relied upon to persevere and carry through to completion any task assigned to him/her. This includes attendance and punctuality in work and meetings. Analytical ability/comprehension The ability to understand and examine information and situations and make sound judgements in order to support the appropriate course of action. Initiative The ability to make the best use of time and to offer new ideas on work or method improvement which includes active participation in meetings and group work. Problem solving and decision-making The ability to identify problems and potential problems and to take the necessary and appropriate action to solve such problems.

iv) v)

b) Personal factors
i)

ii)

iii)

iv)

c) Work attitudes
i) ii)

Work discipline Observation of the companys rules and regulations. Care of the companys property & assets Care of the companys tangible and confidential information to ensure their security and confidentiality. This includes cleanliness and good working order of all tangible assets. Attitude to job/enthusiasm for work Interest in and a positive attitude towards the employees job. Reaction under pressure the ability to remain stable and productive under pressure. Team work/co-operation How the employee directly affects the output of his/her co-workers and the willingness with which (s)he acts as part of the team (which includes helping and training other employees). Relations with others the employees rapport with other employees and their opinion of him/her. Power of oral and written expression the effectiveness with which the employee can communicate verbal and written ideas, information and instructions to other people.

iii) iv)

Interpersonal factors
v)

vi) vii)

viii)

Overall conduct overall behaviour in setting a good example to other employees.

d) Supervisory factors (if applicable) These factors should be taken into account when evaluating any employee who has supervisory tasks regardless of his/her designation. Some of these factors may also be evaluated if the work of the employee in question involves some of these factors (e.g. planning, organising or cost control).
i)

Planning and organising The ability to work out a course of action to achieve targets and prioritize assignments, thus ensuring their timely and correct completion. Leadership/Supervision The ability to get others to complete tasks effectively and to meet common goals. Cost control The ability to understand and apply the principles of cost-effectiveness and productivity. Development of subordinates The willingness and ability to develop subordinates abilities so that they perform their duties well in their present job and become suitable for promotion in the shortest time possible.

ii) iii) iv)

6) Rating
a) b)

Total score the sum of all the factors rated For non-supervisors the total score is divided 95 x 100 to obtain the performance evaluation percentage. Note: If some of the supervisory factors are being used, the total score is divided by (85 plus 5 points extra for each factor) For supervisors the total sum is divided by 115 x 100 to obtain the performance evaluation percentage. Overall evaluation is the equivalent P evaluation as laid out in the evaluation form. For example, 52% = P5.

c) d)

7) Overall evaluation Exceptional P9 performance is way above the expectations of the supervisor/manager Very good P8 performance consistently surpasses the supervisors expectations P7 performance frequently surpasses the supervisors expectations Good P6 solid performance which occasionally surpasses the supervisors expectations P5 performance frequently surpasses the supervisors expectations Acceptable P4 consistent performance that meets the minimum job requirements

P3 performance just meets the minimum job requirements Unacceptable P2 performance does not meet the minimum job requirement P7 performance is so poor that employee should be terminated

INTRODUCTION TO PAKISTAN TOBACCO COMPANY


Pakistan Tobacco Company was established in 1947. It took over the business of the Imperial Tobacco Company (India), operational since 1929 in the territory that formed Pakistan. PTC was the first multinational tobacco company to set up business in Pakistan. The company is a member of the British American Tobacco p.l.c, which employs over 100,000 people operating from 60 countries. Manufacturing operations commenced from a small pilot production plant set up in a warehouse in Karachi port. First full fledge factory was established in 1955 at Jhelum. The same year Pakistan Tobacco Company became a public limited company. At the time of birth of Pakistan in 1947, all tobacco was imported into the country. In 1952, a development project for tobacco leaf was initiated in the North West Frontier Province (N.W.F.P), which progressed rapidly. A re-drying plant was set up at Akora Khattak and cultivation of Virginia tobacco commenced. After the birth of Bangladesh and consequently, withdrawal of Dacca-Chittagong factories, a new factory was set up at Akora Khattak (N.W.F.P) in 1975 to meet the increasing demand. Pakistan Tobacco Companys journey on the road to progress and prosperity continues with some major new development / investment projects over the last few years. Projects commenced in the recent past are: Modernisation of GLT (re-drying) plant.

Upgrading of Primary and Secondary manufacturing facilities at The acquisition of modern high speed LOGA / MAX cigarette making

Akora Khattak and Jhelum factories. machines. Pakistan Tobacco Company, by spearheading the campaign for modern agriculture and industrial practices, has played an extremely significant role in the progress and development of the country. Pakistan Tobacco Company is the first foreign investment in Pakistan to pioneer the manufacture of cigarettes and cultivation of Virginia tobacco in the country. Through our advanced techniques and farming practices, Pakistan now ranks third in Asia in terms of tobacco yields Kgs/Ha. Pakistan Tobacco Company is strongly committed to being a good corporate citizen. Over many years they have been: Donating to a number of deserving causes. Planting trees through our Forestations programme. Sponsoring and promoting sports activities. Running free mobile dispensaries. Playing a significant role in the eradication of poppy cultivation by

providing alternate income sources to the inhabitants of ancestral poppy cultivation areas. First and foremost remains the economic impact we have made wherever we have taken our business. These fifty years have transcended Pakistan Tobacco Company into an institution. We have come through thick and thin with the country, and are responsible for generating tremendous economic activity and introducing innovative ideas and breakthrough strategies. We plan to continue in this spirit. OVERVIEW OF PAKISTAN TOBACCO COMPANY 1. Vision - 1st choice for Every One 2. Mission - Transform PTC to perform with the speed, flexibility and enterprising spirit of an innovative, consumer-focused company. 3. PTC History

First Multi-national Company in Pakistan 1948 - Established Karachi Factory 1948 - Commenced pioneering of Virginia cultivation 1952 - Installed the Re-drying Plant at Akora Khattak Factory which 1955 - Second factory Jhelum 1976 - A third factory set-up alongside the GLT at Akora Khattak 1991 - Closed Karachi Factory 1994 - Head Office shifted to Islamabad

also became the Leaf HQ

Factory

4. MRP-II - Achieved class A in all 5 chapters of MRP-II in May 2001

5. PTC Corporate Information Annual Volume (2001) Government Revenue 2 Manufacturing Sites Permanent Employees BAT Shareholding 28 Billion Cigarettes (approx) $183 Million Jhelum / Akora Khattak 2,079 94.7 % Jun 2001 Managers Business Support Officers Workers Permanent Workers Seasonal Grand Total Number of Unions: Akora Khattak Factory Leaf Area Jhelum Factory 03 02 01 2,236 181 363 1,535 247

6. PTC Manpower

7. Industrial Relations (Industrial Relations Ordinance, 1969)

Akora Khattak & Leaf Area One union is elected as CBA through

referendum every two years, organised by Labour Department of Government. Jhelum Factory Candidates are elected through election organised internally by the union every two years. 9. Head Office HO is located at Floors 14, 15 and 16 of Saudi Pak Tower, Blue Area, Islamabad. RECRUITMENT AND SELECTION PROCESS AT PTC A manager at Pakistan Tobacco Company in the following words articulately summarized the importance of correct selection for an organization: To be the best, you must have the best. The selection process is a series of specific steps used to decide which recruits should be hired. The process begins when recruits apply for employment and ends with the hiring decision. The question of who makes the hiring decision varies from organization to organization however in most cases the HR department evaluates applicants in regard to their potential suitability through the use of valid procedures. Recruiting and selection are combined and called the employment function in many HR departments. The consequential significance of having a sound selection process is that law may hold employers liable for the criminal acts of those they hire. When employers are negligent in hiring or retaining employees who are likely to be harmful to others, those injured may sue the company for damages and win. The latest in selection tests is the simulation exercise used by Merrill Lynch. This is an unnerving stress test that works by creating an artificial work like environment where candidates are confronted with real situations, which they would encounter, were they employed. The test aims to examine how candidates would deal with these situations under a time frame. We believe this test can be used as a benchmark against which the success of other selection processes can be measured. The selection process relies on three helpful inputs: Job Analysis seeks to study patterns of activity to determine the tasks, duties, and responsibilities needed for each job. Job analysis information yields the description of the jobs, the human specifications, and the performance standards each job requires. HR Planning systematically forecasts an organizations future demand for and supply of employees. HR Plans identify likely job openings and allow selection to proceed in a logical and proactive manner.

Recruits form a pool of candidates from which employees are selected.

Other challenges to the selection process limit the actions of HR specialists and line managers.

STEPS IN THE SELECTION PROCESS: The selection process is a series of steps through which applicants pass. The sequence of steps may vary in different organization however the basic purpose remains the same throughout --- the process seeks candidates who are likely to be successful and strives to eliminate those who are likely to fail. Selection is strongly influenced by whether candidates are being chosen from within or outside the firm, the availability of applicants, and equal employment opportunity challenges. The chronological steps in the selection process used generally is illustrated below.

Preliminary Reception of Applications


Employment Tests

Interview References and Background Checks Medical Evaluation Supervisory Interview Realistic Job Previews Hiring Decision

INTERVIEWS An interview is a conversation or verbal interaction, normally between two people, for a particular purpose. The intention is to explore certain subject areas. Extraneous topics are usually minimized. Ordinarily, in an organization, there are many types of interviews conducted simultaneously, such as, appraisal interviews, job analysis interviews, counseling interviews, grievance interview, data gathering for a research project etc. the basic principles of interviewing apply to all types, however, the specific technique employed will differ. THE SELECTION INTERVIEW Interviews are the most universally used selection method. Although many employers do not use tests to aid in reaching an employment decision, there are hardly any that do not interview the applicant in order to help make a definite assessment. Usually interviews are conducted at three stages, the preliminary, the employment office interview, and the final decision-making interview by the prospective supervisor.

OBJECTIVES OF SELECTION INTERVIEWS The goals of a selection interview can be grouped into three main categories:

Interviewer gathers knowledge about the candidate to determine whether he is suitable for employment in the organization and for the particular job under consideration. The interview also gives the interviewee information about the job, the organization so that he/she may be in a better position to either accept or reject a job before hand.
Dealing with a candidate in such a manner so as to maintain and create goodwill towards the company and its management.

MOTIVATION OF INTERVIEWEE The desire of the interviewee to explain himself fully and to reveal freely his experiences, goals, and attitudes is strongly influenced by the personality and behavior of the interviewer. If the interviewee feel comfortable and at ease with the interviewer and if the interviewee is under the impression that he is being heard carefully, the interviewee is likely to speak freely and honestly and perform better on his/her interview. The interviewer at all times must refrain from criticizing the candidate, and must maintain a cordial atmosphere. When asking emotional questions such as, tell me about your relationship with your ex boss or tell me about your childhood, the interviewer must realize that humans tend to think with the heart rather

than the head when answering such questions. Therefore, when asking such questions, the interviewer should be perceptive. BARRIERS TO COMMUNICATION If during the interview, the interviewee feels that there is a clash between his values and goals and those of the interviewer, he will tend to be inhibited. If he feels that the interviewer is not with him, that he will reject, as being socially unacceptable, certain of his statements, then he will only reveal information that will present him favorably. So lets just say that politics and religion would probably be the worst topics to discuss at an interview. TYPES OF INTERVIEWS Interviews, on the basis of structure and technique, can be classified into three main categories: Planned Patterned Stress Mixed Behavioral

PLANNED The planned interview has also been referred to as the depth and as interview as the action interview. The interviewer outlines in advance the subject areas he/she wishes to explore. For the beginning interviewer this would be recorded in writing, although referring to his/her notes wouldnt really be a wise idea. The idea is to get the candidate to talk on the subjects freely and expansively. At the end the candidate is also given sufficient information about the nature of the job, the organization, etc so that he/she can decide whether the job is suitable for his/her needs. PATTERNED This is also known as the standardized interview. The interviewer in asking his/her questions uses an extremely comprehensive questionnaire. It is highly structured. It asks so many detailed questions; literally no stone is left unturned in exploring the background, knowledge, attitudes, and motivation of the job seeker. STRESS Devised during World War II by the United States government for selecting undercover agents for the Office of Strategic Services. In this type the interviewer assumes a role of hostility towards the subject. He/she becomes an interrogator. The aim is to put the candidate on the defensive and to deliberately annoy, embarrass and frustrate the candidate, so that he/she loses control of his/her emotions. Sometime the

candidate is assigned a task of unusual difficulty and with considerable annoyance thrown into the situation. The object of stress interviews is to find people who can maintain control over their behavior when they are highly aroused internally. They must be able to act well adjusted and poised. Merryll Lynch also uses this type of interviews to select brokers, where a stressful physical and mental environment is created for the candidates. MIXED This type is a combination of structured and unstructured interviews. This is the most commonly used type of interviews. BEHAVIORAL The focus in such interviews is on a hypothetical situation that the candidates are asked to solve. How the candidates solve the problem and the solution itself, both are evaluated. The way the candidate reacts to the question, how he/she works under stressful situation, all are taken into account.

INTERVIEWERS ERROR There is no full proof method of evaluating a candidate. No matter how carefully an interview is conducted. There will always be certain errors in the ultimate evaluation. HALO EFFECT Interviewers have a tendency to base their judgments on a certain particular characteristic of the candidate. Often a candidate is judged only by the way he/she dresses up for the interview or by the way he/she talks etc. LEADING QUESTIONS This can also be called putting words into the mouth of the candidate. When the interviewer asks a question in a way that he actually telegraph the candidate as to what answer should be given to the question. For example, Do you agree that our company is the market leader?, Do you think association with a worker union may be unfavorable in this organization? PERSONAL BIAS Perhaps the most common of errors committed, this happens when an interviewer harbors prejudice against specific groups. Often a supervisor may opt for a certain type of candidate, for example preferring a man for a sales job rather than a woman.

INTERVIEWER DOMINATION When interviewers tend to dominate the interview, talk more about themselves and the organization rather than the candidate. The interview should focus on the candidate and not on the interviewer.

REFERENCE AND BACKGROUND CHECKS After conducting the interview the next step in the selection process is to conduct background and reference checks. In background and reference checks, it is seen that what ever the candidate has written in the resume or whatever information he has provided to the HR department how close it is to reality. Normally in these checks the HR department sees:

Is the applicant a good, reliable worker? Are the job accomplishments, titles, educational backgrounds and other facts on the resume or application true? What type of the person is the applicant? What information is relevant to matching the applicant and the job? REFERENCES

References are of two types:


Personal reference Employment reference

Personal reference attests to the sound character of the applicant. Personal references are usually provided by close friends or family members. While writing a reference these people mostly highlight the positive points of the candidate or the applicant. That is why they are considered less reliable. Employment references on the other hand are more reliable than personal references. This kind of reference discusses the applicants work history. The legislations about privacy prevent HR department to provide information about the applicant. They have this fear that if the information provided by them is some how wrong they can be sue by the applicant. Although they are protected by a law called qualified privilege but protection may end if there are doubts about the truth of the recommendation, about whether the recommendation has been made with malice, or about whether the information involves issues not covered by privilege, such as personal information not related to employment.

As a result many HR departments have policies that limit reference information to little more than verifying that the person actually worked for the company. Some HR departments do not even do this job. TELEPHONIC INQUIRIES Due to resistance in not providing reference by HR departments, employers of many companies have omitted the step of getting the employment references. Instead they conduct telephonic inquiries about the applicant. This type of background check gives a faster response and it is very cheap than actually writing to the HR departments. The information gained by this method is most of the time accurate because voice inflection or hesitancy to answer blunt questions may reveal under lying problem. BONDING AND SECURITY CHECKS When the applicant is applying for the very crucial post like a senior executive in the finance department, then background search may goes far beyond letters of reference. Bonding companies may want far more details than what is mentioning in the resume and applications. The HR department in such cases checks:

The criminal record of the person, His/her credit rating

Such types of checks are often conducted while hiring a person in armed forces or in special services or if Government wants to hire some body for the highly secret task. Normally such checks may take six to seven months and it may involve checks on family members and applicant past. Medical Evaluation life insurance rates for company paid insurance. Be required by state or local health official, particularly in food handling operations where communicable diseases are danger. Be useful to evaluate whether the applicant can handle the physical or mental stress of the job. Medical evaluation has loss its popularity in United States because of the Disabilities Act. But in Pakistan it is gaining popularity. Now big multinationals and other companies conduct this step. For example when a person is hired in Societe Generale the French and International bank, he/she is being evaluated medically before making final hiring decision. And if the person is not physically fit the bank does not offer job to that applicant. In armed forces, medical evaluation is a must step in the selection process. A person have weak eyesight cannot fly a plane. Such person is mostly grounded. Similarly a person having any backbone problem cannot fight during the war. Mostly office work is given to such person.

SUPERVISORY INTERVIEWS Supervisory interviews are another important step in the selection process. After conducting interview, medical evaluation and background checks the hiring responsibility is given to supervisor of the related department. A supervisor decides whom to hire from two or three applicants. A supervisor knows better than any body else that what technical and professional skills are required. He can ask applicants the specific technical questions that are more related to the job. A supervisor can best judge that whether the applicants have all that qualities that a job requires. As a result the supervisor takes mostly the hiring decision. If he feels that the applicant is the right person for the job there is more likelihood that the person is going to be the final choice. In very rear cases the hiring decision is left with HR department. Especially when the person is not selected a particular job rather he is selected as a trainee than in this case the HR department makes the hiring decision not the supervisor. Some time if an applicant is being rejected because of certain discrimination like he is minority or any other such discrimination, then the HR department is given the final authority to avoid charges of discriminations. The commitment of the supervisor is generally high when they are involved in the hiring decision. Just as in MBO, an employee that participates in the decision is motivated and committed to the organization goal, same way when a supervisor participates in the selection process he owns this decision and feels responsible about the results. Some how if the employee turns out to be unsatisfactory, the supervisor is more likely to accept some of the responsibility for the failure. Similarly if the supervisor rejects a person but the management hires the same person for any reason, there are more chances that there will be a constant conflict between the supervisor and the employee. The new employee feels much difficulty in adjusting in such environment. REALISTIC JOB PREVIEW In realistic job previews also known as RJP, the applicant is given the opportunity to see the job and job setting before the hiring decision is taken. The candidate is shown the type of work, the actual working condition, the equipment or machinery with which he is going to work and also meeting with the fellow workers. Realistic job previews are not used by most of the companies but still it is very essential step. An employee who is hired without showing any thing is always confused. He is more likely to be shocked by the job and job settings when he reports to the work. RJP helps in reducing these shocks and surprises by giving the employee the insight about

the job before hiring. The employees who have an RJP are mentally prepared for the job and work environment. The problem of turn over is one of the biggest a problem that a company faces. It wastes the companys time, money and resources used in selection process. If the employee has not used an RJP, he will be dissatisfied with the job. It might be that he has certain other expectations from that job and the job turns out to be some thing else. This will create dissatisfaction and eventually the employee will leave the job. RJP helps in reducing the turn over level resulting in saving the time, money and resource of the company. The employees have themselves chosen this job after seeing all the work settings so they are committed to this job and the chances of quitting the job reduces. The employees try their best to adjust in those settings. In short it is very crucial step in the selection process. The company should include this step in their selection process. HIRING DECISION Hiring decision is the last stage in the selection process. Based on the notes and comments of the supervisor and the HR department, the hiring decision is taken by any one in the line capacity. It can be the head of department or any senior executive. The hiring decision is not just extending an offer, the HR department should also notify applicants who were not selected. Also the HR department should maintain the files of applicants who were not selected so that they can be hired when the company again has some vacancy. This will save company time, money and resources, sine theses applicants have gone through the process of selection so there is no need to waste the resource again. The HR department is also responsible for maintaining the file of the person hired. The file should include the HR report of the applicant. In addition to this report the file should also include information like whom to contact in case of emergency, additional background information of the applicant, medical evaluations etc. Maintaining the HR files is very important. It is helpful in verifying the test and selection process. The files about the employees not selected help in defending the company against the charges of employment discrimination. EXECUTIVE SUMMARY Pakistan Tobacco Company is a subsidiary of the multi-national tobacco giant British-American Tobacco (BAT). Although the BAT Head Office is situated in London, its operations are spread out worldwide. BAT markets

its products in almost 120 countries and carries out production in 75 countries across the globe. BAT is one of the two largest tobacco companies in the global tobacco market; the other being Philip Morris (manufacturers of Marlboro cigarettes). Not long ago Philip Morris held 18% of the market share while BAT secured 17%, however since BATs recent merger with Rothmans, the two companies are pretty much at par with each other. The focus of BAT on the international perspective is, to be the worlds leading Tobacco Company. Unlike Philip Morris, BAT does not plan to diversify into consumer goods. Their concentration and emphasis is still on the quality of their tobacco products. The Head Office of PTC is based in Islamabad. This is supplemented by the five Regional Offices in the headquarters of the main regions, namely Lower Sindh Region (headquarter-Karachi), Upper Sindh & Balochistan Region (headquarter- Sukkur), Multan Region (headquarter-Multan), Central Punjab Region (headquarter-Lahore) and the Northern Region (headquarter-Rawalpindi). Each Regional Office branches out into 4 to 5 Area Offices located in major cities in the region. Production is carried out in two factories located in Jhelum and Akora Khattak respectively. Some of their major brands include Benson & Hedges, John Players Gold Leaf, Capstan, Wills & Embassy. Financially PTC has been maintaining a status of massive loss over the last five years or so. Despite the loss they are one of the highest tax payers. Some PTC officials attribute the financial status of the Company to not taking the competition seriously, in their own words. For 1999 there were substantial improvements in the operating profits of PTC, (Rs. 344mn vs Rs. 92mn in 1998). This improvement was mainly due to significant increase in consumer prices combined with reduced product costs and improved stock management. PTCs ongoing business recovery program continued during 1999 with progress in building internal capabilities, significant investments and improvements in product quality. However, the trading environment for the legitimate cigarette industry was influenced by two significant events: Firstly, the previous governments agreement with a number of tax evading companies to remove supervision in return for a small excise contribution. This partially legitimized their illegal sales with the result that the volume of tax evaded brands increased significantly. Due to this, PTC lost a great deal of their customer base to brands like Gold street in the northern areas. Secondly, the industry prices were increased by 25% during the first half of 1999, partly in response to pressure imposed by the federal budget proposal to increase excise rates. It has been and remains the log term objective of PTC to bring cigarette prices in Pakistan to a realistic level. The two events combined resulted in a decline of the overall market with consumers switching to lower priced brands. As a result the tax-evading segment benefited significantly. This was solely due to their ability to

position brands at price points that would be unsustainable were they to pay excise duty. However PTC will continue to work strenuously to ensure that the government understands the damage that results from the illegitimate sector. OBJECTIVES AND FUNCTIONS OF HR AT PTC As illustrated in the organ gram the Human Resource Department at PTC is run by few qualified officials and a par excellence Human Resource Information System. HR policies at PTC are of course largely influenced by the rules and parameters set by HR at BAT. Currently the HR department has defined all its objectives and functions in congruence with the BEST 2000 program, details of which follow this report. All HR objectives reflect the corporate values of PTC: Supportive Competitive Open Professional Ethical These values define the goals or SCOPE of the activities at PTC. OBJECTIVES OF HR

To be the preferred employer (i.e. to be included in the top tiers along withcompanies which are reliable preferred multi-nationals) To have a competitive remuneration package (i.e. market driven competitive salaries) To provide vast opportunities for development and well-defined career paths Effective Manpower Planning Efficient Personnel Information System

Through tools like Communication, Career Development, Training & Development, the Company is targeting higher order needs hoping that this will result completely in the formation of an Achievement Culture. FUNCTIONS OF HR The functions of the HR department are listed below along with specifications of sub-functions performed in each major function. Assessment & Selection Recruitment Policy --- this includes potential for recruitment of management trainees as well as mid career recruits along with regular graduates.

Matching Job/Person Specifications --- assessing functional as well as managerial competencies. Developing Sources of Recruitment --- advertisements, etc Running Campus Campaigns --- main target universities are LUMS, IBA, UET, GIK, etc Remuneration & Benefits This consists of setting the remuneration according to dimensions, characteristics and responsibilities of the job. It also includes ensuring accountability for actions. Formulating and implementing Job Profiting Programs Establishing Job Evaluation Criteria & Grade Structure Formulating simplified Pay & Benefits Policy Establishing components of Remuneration --- basic salary, house rent, utilities, etc Salary Reviews of other multi nationals considered to be in the same league, e.g. ICI, Lever Brothers, Procter & Gamble, etc Conducting Salary Surveys Training & Development This includes designing, developing and conducting courses, which enhance the 8 desired BAT managerial competencies: 1. Communication skills 2. Influencing skills 3. Leadership capabilities 4. Resource Management 5. Rational Decision Making 6. Business Development 7. Creative problem solving 8. Career commitment The main training & development functions are: Training on Induction Functional Training Courses Managerial Training Courses Business Awareness Programs --- carried out through functional attachments Performance Monitoring Succession Planning

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Employee Relations Traditionally attitudes in Pakistan towards labor have been exploitative but PTC is trying to improve through the following activities: Following Labor Legislation Improving Union & Management Relations --- trying to build a business partnership

Manpower Planning Conducting Disciplinary Proceedings if the need arises Grievance Handling Counseling Encouraging Employee Welfare Activities

HR Administration Maintaining a very modern Personnel Record System HR Database Human Resource Planning Salary Administration & Disbursement Service Contracts

Organizational Development Company Mission, Vision, Culture & Structure Implementing and improving Change Management Policy Productivity Improvement Staff Turnover Trends --- minimizing turnover

Work Environment & Facilities Providing optimum physical working conditions Bringing about behavioral & attitudinal changes Minimizing procedural barriers
Providing all possible career progression opportunities

BEST 2000- A VEHICLE FOR CHANGE WHY BEST 2000? In 1996, the HR department of PTC decided to conduct an employee satisfaction survey. The survey was comprehensively conducted and the findings astonished everyone. They showed extremely high levels of employee dissatisfaction and several other problems were identified. Some of the major discoveries of the 1996 survey are listed below: Lack of focused approach No real concept of team work No customer perspective Contended with status quo We and They culture Fire Fighting a way of life No fun working Thus everyone agreed that a major recovery strategy was the call of the day. Since the problems were so wide spread in all levels of employees HR believed that the successful implementation of the recovery strategy required full participation of all employees.

The result was a change management program, a total quality approach which was called BEST 2000 standing for: BUILDING EXCELLENCE AND SUCCESS TOGETHER The major issues were identified as: Consumer Focus Customer Supplier Relationship Culture Divide Perceived Union Strength in Factories BEST 2000 GOALS Together we will be the best in everything we do by the year 2000 To be more customer focused To build the will & the skill to improve Create a supportive culture for continuous improvement Synchronize all energies to achieve plans and improve business by involving everyone in the Company BEST 2000 AIMS To Introduce Principles of Total Quality Management Tools for Improvement Supportive Culture of a world class organization To improve understanding of Our customer needs Our Company Goals Our key processes Leadership behaviors Teamwork Continuous Improvement To improve output to key customers in terms of Quality Service Delivery Cost Flexibility Training The objective here is to train a total of 210 Managers, 400 Business Support Officers, 2500 workers and 200 Distributors / Contractors and to equip them with Total Quality tools and the right attitude for success. Cultural Change

Certain developments in this area include the Thermometer Initiative, a tool designed to periodically measure the employees temperature satisfaction. It also helps to bring out certain problems employees may have been facing. Another development is Reverse Appraisal, which involves junior managers appraising senior managers in a bid to discover how the top management is living the corporate values of the Company in the eyes of their juniors. Information flow In order to overcome the restricted flow of information and to make the employees feel well-informed and to make the financial performance of the Company well known to everybody the idea of the Corporate Dashboard was introduced. An illustration is presented on the next page: LINKED DASHBOARD SYSTEM
CORPORATE DASHBOARD CORA LEAF

FINANCE

HR

B.MKT. T.MKT.

PROD.

DEPARTMENTAL REPORTS

Successful Improvements Teamwork Top Down Communication Quality of Service Internal & External Customer Relationships Employee Development Areas For Further Improvements Tolerance of mistakes Bottom up communication

Outward focus towards customers while making decisions Process improvements Mutual respect for each other SELECTION INTERVIEWS AT PTC

The selection interviews at PTC are conducted at 3 different stages, starting with the initial interviews, then onto the assessment center and then the final interview, which is actually more like a supervisory interview. During the initial interview, the candidates are asked to talk about themselves. It has no set pattern, very unstructured. More like a cordial talk, the aim is to make the candidate feel at ease with the interviewer and get accustomed to the organizations environment. All questions asked are either from the resume of the candidate or are of personal nature. The interviewer probes into the interviewees past experiences, education background, area of interest, family background, aspiration and expectation from the job. This is also the stage where the interviewer tries to find out if the candidate actually wants to stay with the organization or would he/she jump whenever given a better opportunity. So at this stage the candidates are often asked about their long-term plans. All those who qualify the initial interview are then called to the assessment center for a daylong rigorous exercise that begins with group discussions (the assessment center has an office like work setting created), here the candidates are given a hypothetical situation and are asked to solve it as a group. Sort of like a behavioral interview, but in a group. A panel of executives monitors the behavior of each candidate, here qualities like motivation, group participation, teamwork spirit, leadership etc are evaluated. The team players are appreciated and the social recluses are considered a problem case. Then the candidates are asked to make presentations before the panel, this is an individual effort. The written tests will be discussed later in detail. For this portion I chose to keep my focus on interviews. At the end of the day, the day at the assessment center is wrapped up with another group discussion. Qualifying candidates are then invited for the final interview. Only one person the functional manager conducts this. He is usually the prospective boss/supervisor. This is purely structured. Candidates are asked questions testing their grasp of the subject. His/her functional know how is assessed. Then the candidate is taken on a tour around the office to get the feel of the real work environment. This is where candidate interviews the interviewee! The candidate asks question about the job and the interviewer supplies the information.

REFERENCE AND BACKGROUND CHECKS PTC does rely on references and background checks. After the interview the HR department of PTC writes to the HR departments of the companies where the selected candidates have worked and they expects a reply. Reference contributes a lot to the final hiring decision. If the person has a good professional history, he has more chances to be selected. In PTC, they hardly get any negative opinion about any applicant. According to the human resource personnel of PTC, We write to the person and expects a response. We hardly get any negative response but still we write to fulfill our job and to practice good corporate values. MEDICAL EVALUATION PTC gives much importance to medical evaluation. After the interview it is a necessary requirement to go through all the medical checkups from the companys prescribed Doctor. All applicant selected from the interview has to go through this step. Supervisory interviews are conducted only if the doctor feels that the applicant is physically fit to do the job. If the person is not physically fit, there is no way the employee can be hired. SUPERVISORY INTERVIEWS After the medical evaluation and background checks, the applicant is called for a supervisory interview. In supervisory interviews there is just one person, head of the department who conducts the interview. Final interviews include more job related questions. Expectations at this stage are much high because the applicants have gone through a series of steps. It is expected at this stage that he should know a lot about the company and also about the job. Questions are asked that directly relate to the actual job. For example if they are hiring an engineer, the interview will be conducted in a way to know more about his technical skills rather than his communication or management skills.

REALISTIC JOB PREVIEW PTC sent the person to the place where he is going to work for a day or two depending on the nature of the job so that he can see the environment, actual job settings, and can also meet co-workers. According to their HR personnel; Many few companies in Pakistan are using this step. This step helps us a lot because this reduces our turn over rate. Our turn over rate is just 2 or 3 person in the last 3 years and I guess this step is the major contributor of this low turn over rate. The candidate has seen the actual settings. He

is committed to the job and tries to adjust himself because he himself chose that position after seeing everything. He does not have any shocks when he comes on the very first day.. HIRING DECISION In PTC, just one person does not take hiring decision. Each and every step contributes towards the final decision. The person who scores good in the test, has selected from the initial interview, has medically fit, got a good professional history and manages to satisfy the supervisor have a better chances to be selected. Department head in the Company declares the final decision.

CONCLUSIONS Overall HRM department of Haleeb Foods is quite efficient and they adapted more of the modern day human resource procedure but they do lack in some areas for example in their interview process they put more emphasis on non structured interviews due to which they lack objectivity at times and due to that same reason when we ask about how do you reduce some common mistakes made during interviews, Mr Wasif answer was not very satisfactory. They also dont co-relate the test scores and applicants performance in the interview which could help them to make strong opinion about the candidate. Therefore it is suggested that they should introduce structured interviews and have a psychologist who could help them to understand the behavioral aspect of the candidate in a better way.

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