INTRODUCTION Service Industries Limited is a publicly traded company and has annual revenue more than US$ 80 million.

The company was established in 1958. It is the largest manufacturer of tires and tubes for two wheel vehicles. It is the largest exporter of footwear from Pakistan for the last 10 years. The company has also its business in respirators (Gas Masks) & Defense products. Service Industries Limited is Pakistan's largest footwear manufacturer and exporter. It also has interests in retailing - its group company The Service Sales Corporation, is the country's largest retailer and wholesaler of footwear. The organization has diversified interests both in Rubber products including tires and in defense industry products. There are 5,000 employees engaged by the company in its premises located in Gujarat and Muridke. The company's products are mainly exported to in countries in a Europe such as to Germany, Italy, France and UK. OVERVIEW OF THE ORGANIZATIN Brief History Service Industries Limited is Pakistan's largest footwear manufacturer and exporter. It also has interests in retailing - its group company, Service Sales Corporation, is the country's largest retailer and wholesaler of footwear. The organization has diversified interests in Rubber products including tires and in defense industry products. The Service Industries Limited was set up in 1958. There are 5,000 employees engaged in different departments for execution of specified job assigned to them in uplifting the business of the organization as per details mention below. Organization Core business Footwear Tyres & Tubes Respirators (Gas mask) Defense Products Service Industries Limited is a publicly traded company and has annual revenue more than US$ 80 million. It is the largest manufacturer of tires and tubes for two wheelers, and has been the largest exporter of footwear from

Pakistan for the last 10 years. The company's products mainly exported to Europe such as Germany, Italy, France and UK. EXECUTIVE SUMMARY Department of business administration demands every student of MBA program and to submit an evaluation report based on the observations and work done during the period. It is actually the review of an organization currently running its business, having its competitors. The main objective of the study of the functions of the human resources departments and to point out any deficiencies, lacunas and give suggestions for their improvement. Hypothesis The problems faced by the organization are dimensional ranging from in its procedure of its promotion, job description in various departments of its employees have not been identified properly. Therefore the employees are not satisfied with the working of the promotional Board. Some employees working in different capacities were not satisfied as they are heavily burdened of execution of their responsibilities in relation to the work assigned to them. More over, the employees are not trained according their specialized task performed by them. They are given general training so while performing the specified task, it is difficult for them to be more accurate which badly affects their efficiency. In the era of specialization, the employee should be trained according to specified task and the refreshing process should be conducted at frequent intervals. Justification The Human Resource Department is most important and key factor for the success of any kind of business organization, especially the organization which marketing its material for diversified nature of products. Undoubtedly their role is vital to integrate all the activities and functions of the Organization like job analysis, recruitment, staffing, training, designing compensation packages, and employees appraisal system. Benefits

Included under this category are pensions, group life insurance, hospital and medical insurance, sickness leave pay plans, supplemental unemployment compensation, loan funds, credit unions, social programs, recreational programs and college tuition refunds plans. The actual decisions to establish or to expand these programs are always made by top hierarchy of the management on the advice of the human resource department. The preparation of formula for pension and insurance programs requires a great deal of technical knowledge. These programs are generally worked out with the assistance of consultants of insurance companies. After these plans are installed, the day to day processing of claims is handled by the human resource department Health and Safety A significant part on occupational health programs is the identification and control of agents within the working environment that can cause occupational diseases. Some agents involved in this programme could be gases, dusts, fumes, toxic chemicals and metals, noise, heat, radiation, biological substances. Industrial hygienists are employed to identify and control such hazards to health. Other important elements of employees health programs are preemployment medical examinations, periodic examinations for those working on jobs having exposure to occupational disease-causing agents, rendering of first aid, treatment of minor ailments such as colds and headache, and providing health education information. Small companies usually hire medical physicians, nurses and industrial hygienists for purposes of consultation on full time or on part time basis. Large firms tend to be staffed with full time personnels in these areas. The safety program is directed toward the prevention of work injuries. The main elements are engineering, education and enforcement. The safety director who is usually a member of human resource department works closely with the plant engineering unit to ensure that machines and equipment acquired are properly guarded. New production processes and machines should be designed in order to avoid any possibility of human injury. Methodology I went through the all functions and processes of the human resources department of the Service Industries Limited e.g. job analysis, recruitment,

staffing, employers training, performance appraisal processes, compensation packages, retention of employees etc. Value Statement The main potential of the Service Industries Limited are its employees which are consider to be the biggest asset of the company. We respect their passion for our business and acknowledge their integrity and commitment which is reflected in their dedication towards achieving excellence. Our Corporate strategy of empowering our people makes them rely increasingly on teamwork and innovation and also makes them accountable for the decisions they take. Vision Statement To become a market leader providing quality footwear, tyres & tubes and other allied products. In order to achieve excellence and global recognition through continuous improvement, innovation, dedication, growth and struggle. Mission Statement To be a result oriented and profitable Company by consistently improving market share, quality, diversity, availability, presentation, reliability and customer acceptance. To emerge as a growth oriented concern ensuring optimum return and value addition to its shareholders. To ensure cost consciousness in decision making and operations without compromising the commitment to quality. To create an efficient resource management and conducive business environment. Evolving an effective leadership by creating a highly professional and motivated management team fully equipped to meet any challenge.

To keep abreast with modern technology and designs to optimize production and enhance brand image to attain international recognition for the Company's products. To set up highly ethical business standards and be a good corporate citizen, contributing towards the development of the national economy and assisting charitable causes. To adopt appropriate safety rules and environment friendly policies. Objectives of the Organization 1. To be a result oriented and profitable Company by consistently improving market share, quality, diversity, availability, presentation, reliability and customer acceptance. 2. To emerge as a growth oriented concern ensuring optimum return and value addition to its shareholders. 3. To ensure cost consciousness in decision making and operations without compromising the commitment to quality. 4. To create an efficient resource management and conducive business environment. Evolving an effective leadership by creating a highly professional and motivated management team fully equipped to meet any challenge. 5. To keep abreast with modern technology and designs to optimize production and enhance brand image to attain international recognition for the Company's products. 6. To set up highly ethical business standards and be a good corporate citizen, contributing towards the development of the national economy and assisting charitable causes. 7. To adopt appropriate safety rules and environment friendly policies.

Functional Departments of the Organization There are different departments of the organization. These are as under: 1. Production 2. Import 3. Export 4. Human Resource 5. Finance 6. Law and Advisory 7. Sales & promotion 8. Purchase 9. Board and Properties Affairs 10. Audit and Inspection Nature of the Business The Service Industries Limited is one of the famous and well known Organizations in the National and International market. It is a Manufacturing and Trading concern organization and one of the biggest manufacturer and exporter of the footwear. It also has interest in retailing. The Organization has diversified interests in rubber products including tyres and in Defense industry products and Communication and Pharmacy business.

Employees Profile

Employees Profile S.NO.

DESCRIPTION

No. of employees

1.

Board of Director

07

2.

Management Staff

200

3.

Middle managers Skilled labour Supporting staff

150

4. 6.

2500 1643

7.

Contractual labour

500

Main Products of the Organization The Organization has diversified business and its main products are:

1. Footwear (Men, Women, Children, and safety shoe) 2. Tyres & Tubes (Motor cycle and Bicycle) 3. Respirators (Gas masks) 4. Defense Products ORGANISATIONAL STRUCTURE Main Offices 1. HEAD OFFICE: Servis House, 2 Main Gulberg, Lahore Pakistan Adamjee House (10th Floor), I.I. Chundrigar Road, Karachi, Pakistan 3. FACTORIES: 1- Gujrat G T Road, Gujrat 2- 10 km, Sheikhupura Road, Muridke Human Resource Management Operation The HR management looks after the performance administration and day to day Human Resource related matters. It also looks after the performance appraisal side. Human resource management is like micro management covering the transfer / posting, Leave and passage and career planning.

2. ZONAL OFFICE:

Human resource management is a part of organization concern with people. Its staff is paying its pivoted role in the function of the organization. Its role is to provide assistance in Human Resource matters to line employees or those directly involved in production of goods and services. It also provides support to Chief Executive and work as window to Chief Executive. Human resource department is an effective organ of the organization. The major goal achievements of the organization are due to the efficient and dedicated performance of the Human Resource Department. It has their human resource management team. Team is entrusted to prepare the generic job descriptions of the employees. There crucial role it to conduct wide range training program according to the requirements and to assess & develop research program for employees training & development. Human resource manager is pursuing soft human resource management approach policy to gear up employees, commitment to attain high efficiency and skill oriented work culture in head office employees, factory staff & workers and regional offices. The logo of the human resource department is HRD (Hire, Retain, and Develop). STRUCTURE OF THE HUMAN RESOURCE MANAGEMENT DEPARTMENT Number of Employees in Human Resource Management Department At present there are12 staff (3 Managers and 9 staff members) members working in the Human Resource Department of the Organization. A- Officers - Senior Manager Human Resource - Manager Human Resource B- Supporting Staff

- Executives Assistant - Assistants Main Purposes To improve performance, standard of work, special qualities, knowledge, and skill to fulfill requirements of departments training needs assessment and develop program for training & development. The logo of the department is (HRD). HRD abbreviation stands for: H: R: Hire Retain (Best available personnel) (Retain them through different appraisal and motivational structure) (Develop employees skill, increase knowledge and build behavior through proper training & assessment)

D:

Develop

Functions of the Human Resource Management Department Major Functions - Human Resource Planning - Recruitment - Selection - Placement - Orientation

- Rotation - Job Analysis - Job Evaluation - Promotion, Transfer, and Layoff - Policy initiation & Formulation - Compensation Administration - Assessment - Appraisal - Advice - Manage Diversity - Service & Benefits - Termination - Career Planning - Training & Development - Communication - Human Resource Audit - Special Assignments - Internal control - Labour Management Relations - Health & Safety

- Discipline & Discharge - Organizational Development - Equal Employment Opportunity - Personal Information System Human Resource Planning (HRP) Human resource planning is the process in which a firm ensures that it has the right number of qualified persons available at the proper times, programming jobs that are useful both to the organization, and the individuals involved. It is a new function that has emerged in recent years in human resource planning (also called manpower planning). Sometimes a specific person or office is maintained wherein its primary responsibility; more commonly the responsibilities are shared by several people within the corporate personnel unit. It is a process in which the organizations human resource department makes need assessment and calculate present people in the organization and forecast the present and future needs of people for the organization. Human resource department makes action plan and evaluation and control. The hierarchy of the HRP may be: 1 Talent Inventory (present people)

HR Forecast

(external supply) ( internal supply) (Demand)

Action Plan

(how to meet demands & supply)

4 Evaluation & Control The principal elements involved in human resources planning are as follows: (1) Goals and plans of organization. (2) Current human resource situation including skills inventory. (3) Human resource forecast including comparison of projected future demand for employees with projected supply. (4) Designing programs to implement the plans. (5) Audit and adjustment. Recruitment In this sector the Senior Manager human resource and Manager human resource jointly prepare the job analysis with the help of department manager, the total strength of the staff required. They clearly defined that, what is job description and who will perform that job (job specification)? Then they recruit the persons through internal and mostly from external sources. - Recruitment Planning 1- No. of employee need 2- Time of recruitment - Internal Recruitment

1- Job posting 2- Employee referrals 3- Temporary workers pools (Reserve persons) - External Recruitment 1- Executive search firm (white collar) 2- Advertising through different medias 3- University Relation 4- Employment Agencies (Blue & white collar) Selection With a pool of applicants (recruitment) the next usually means whittling down the applicant pool by using the screening tools, tests, assessment centers, background, and reference checks. Selecting the right employees is important for three main reasons. First: Its important because performance always depends in part on your subordinates. Employees with the right skill and qualifications will do a better job for you and the company. Its important because it is costly to recruit and hire employees. Its important because of the legal implications of incompetent hiring.

Second: Third:

After the procedure of recruitment, they select the person according to job description and job specification. They select the person whose skill, knowledge, and experience match with the job. They use different ways for selection of best persons. SELECTION AND SCREENING METHODS: 1- Application Form

2- Structured Interviews 3- Recommendations & referrals 4- Test and Inventory - Objective personality (examiner) - Drug test - Mental Ability test - Hand writing - Projective (Examinee) 1. Personal history 2. Measures of leadership ability (task) - Peer Assessment - Poly graph - Work sample test - Integrity test Placement Human resource department is responsible for hiring, placing, and deploying the suitable employees at the available vacancies for the company. The human resource department after completions the process of recruitment and selection, place the person on job duty. Invariably they may be attached with the senior experienced employee of the organization who may give them training of the particular duties for which they are engaged. This in job training may not lost more than a month. Assessment It is very important work which is performed by the human resource department of the organization. The senior human resource manager assesses persons with the help of department heads to check efficiency of the person. They assess that they hired a genuine person to achieve their goals. Some times human resource department use assessment center to assess the performance of the employees. Job Analysis

It is very important human resource department function. The job analysis consists of: 1- Job Description (what is the job?) 2- Job Specification (who will perform that job?) 3- Job Design (How that job will perform?) 4- Job Specialization The human resource department has knowledge about job description and job specification so that they able to recruit best fit person and fulfill organizations needs and properly plan human resource planning. Why Study Job Analysis 1- HR Planning (present planning) (To mitigate the adverse efforts of our present acts) 2- Recruitment (How much) 3- Placement (Staffing) 4- Efficiency Appraisal (performance) if knowledge of job 5- Compensation (pay according to skill) 6- Orientation, Development & Training (familiar to environment, briefing) 7- Career path planning (select the way job analysis) 8- Job Design (how job will perform) 9- Safety 10- Job classification (categories)

11- Career Counseling (officials /specific persons) 12- Engineering Design & methodology improvement (uses, methods) 13- Labour relation (Union, Management) Job Evaluation Evaluating individual work performance is a form of control because it ties performance feedback to rewards and corrective actions. Employee evaluation is an on-going process, taking place informally every day in the organization. One example is a computer monitoring, which determines accurately an employee's performance which engaged in a specified job. Evaluation is formally documented for a given time period in the performance appraisal The appraisal and annual confidential report (ACR) plays a great role in the accomplishment of job evaluation. The job evaluated by the department head with the help of human resource staff by using different methods in consultation with manager human resource. On the basis of department head and human resource staff members job evaluation the human resource department head make recommendations for appraisal. Labor Management Relations When a union has been certified by the national labor relations board, as the result of an election, as the sole and exclusive bargaining agency for the employees. The management must bargain with it in regard to wages, rate of pay, hours of work, and other conditions of employment. The principal tasks involved in handling labor relations are through contract negotiation, contract interpretation and administration, and grievance handling. The human resource department plays very significant role in labor-management relations. The director of

industrial relation & Admin usually serves as an important member in the bargaining team who often act as chief management spokesman. In operating a day to day basis the terms of the labor agreement, line supervision often finds frequently occasion to consult the human resource department regarding matters such as allocation of over time, handling of transfers and layoffs, and the application of contract work rules. Compensation Administration The work of designing and installing as well as the job evaluation program is handled by the human resource department in consultation with the line managers of each category. The decision to adopt a particular pay structure of the employees working in different grades by fixing their wage grade wise is the task of the top management of the organization. The day to day work of analyzing jobs by evaluating their worth according to a formal job evaluation plan, and also maintaining their performance records is the responsibility of the human resource department. Periodic wage changes are conducted by the human resource department but in case any firm decided to make change in the entire schedule is the discretion invariably enjoyed by the chief executive officer of the organization. Promotion, Transfer, Layoff For these tasks, the human resource plays its prime role in its capacity as a coordinator. When employees are shifted from one department to another either because of the business needs or as result of individual requests, the personnel records of the individual concerned may be considered as the principal element to adjudge the merit of his performance while transferring him to other department. Layoffs usually carried out by the human resource department to ensure the proper performance of the organization according to its yield. This is a complex matter as it can create complication if restraint care is not exercise. In combinations of jobs, departmental, and plant wide seniority rights are

not observed. When a vacancy occurs in a position, it may be filled by promotion from within or by direct hiring from outside the company. This decision is often made jointly between the human resource manager and the executive in change of the department where the vacancy has occurred. Many companies may establish policies to cover matters of this type. The final decision as to which candidate is short listed for the promotion is largely made by the executive in whose unit the vacancy has occurred. Organizational Development Organization development is a general approach for improving the effectiveness of an organization that utilizes a variety of applied behavioral science methodologies. Among the objective of the organizational development (OD) are meant to increase the level of trust and supportiveness among people in the organization, enhance interpersonal, skills, make communications in a more open and coherent manner. Confront problems directly and to tap the knowledge of all who can make their contribution in an effort to solve the problems as and when they may occur in the organization. Consultants are often involved in organizational development (OD) work they work jointly with management to collect data, diagnose problems and work of solutions. Typical kinds of organizational development (OD) activities and to intervene when confronted of convening meetings, team buildings, survey field, back conflict resolution, laboratory training and managerial grid exercises and projects. Personnel Information System Today, many organizations have engaged trained staff in mathematical analysis, computers, and management information systems. Some companies have applied these capabilities to personnel work. Among the applications have been human resources planning, skills inventories, employee benefits analysis, and productivity studies.

Discharge and Discipline Generally approval by the human resource department has to be obtained before an employee may be discharged. The reason is that discharge is a major penalty and should rarely be used only when a very clear severe case of negligence is committed. In addition, it is essential to achieve companywide uniformity in the handling of such cases. Discipline has two principal meanings. The first is training or correction. It means achieving and maintaining of employee behavior orderly because the people understand and believe in the established codes of conduct. The second meaning of the term discipline refers to punishment of wrongdoers. Discipline involves the conditioning or moulding of behaviour by applying rewards or penalties. Discipline is a procedure that corrects or punishes a subordinate because of violation of rules or procedure against which an employee has been appointed. The human resource department commonly is generally entrusted with the responsibility for formulating the list of necessary rules together with the range of penalties for each offense. Frequently this list of rules and penalties is discussed and approved with high level line management before its enforcement as employees rules of particular organization. Equal Employment Opportunity (EEO) As a general phenomenon the chief personnel executive in a company bears the major responsibility for ensuring that the organization complies with the various laws and regulations, determined by the organization quite judiciously with out any discrimination.

They often delegates someone within the human resource department to run the day to day administration function who either specializes in this field of work or who performs these duties along with others department such as the employment function. Usually the chief executive officer (CEO) of a company plays a key role in the formulation and implementation of equal employment policy. Employee Recruitment and Selection Recruitment & Selection The Human Resource department first assess the need of employees to be hired (This process called human resource planning). The post against each vacancy is advertised by inviting applications from the applicants. The following procedures are adopted for this purpose. 1. News papers 2. Internet 3. Referrals If there is a post of General Manager, Manager or Executives, The Senior Manager HR personally interviews the candidates along with his team member and Director Administration and company Chairman or CEO. In Head Office the senior manager HR is the appointing authority for all regular vacancies in consultation with the concerned department managers. For factories the All Executive post are interviewed by senior manager HR with the team of Director Admin and Chairman or CEO. The other posts and daily wage workers are appointed by the factory HR manager. Sources of candidates: Internal Sources 1- Job posting

2- Employee referrals 3- Temporary workers pools (Reserve persons) External sources 1- Executive search firm (white collar) 2- Advertising through different medias 3- University Relation 4- Employment Agencies (Blue & white collar) Employment selection process Following steps are involved in the selection of person in the organization: 123 5Applications Short listing (Taking best suitable candidates for the job) Structured Interviews (conducted by Director Admin and Senior manager HR and department head)

Test and Inventory - Objective personality - Mental Ability test - Knowledge of job - Personal history - Experience - Measures of leadership ability - Work sample test (knowledge of work) - Integrity test - Confidence - Check recommendations & referrals

Employees Job change

Employees job change become necessary as a result of promotion, transfer, and at the time of demotion. The employees jobs are also some time change temporarily either as a result of transfer or through promotion. A job training programme in a department should be arranged for two employees at a time for purpose of meeting the requirements in case of emergency. The patrons of temporarily job change are: - Accounts managers or Executives with Account Managers or Executives (within departments of head office & factory) - Personal Assistant with Personal Assistant (Department wise) - Personal Secretary with Personal Secretary (Department wise) - Import and Export Executive or Assistant with Import and Export Executive or Assistant (within department Job Changes within the Organization Promotion Promotions are on the basis of performance achieved during employment which usually occurs as a result of resignation of an employee. On the basis of efficient performance multiplied by experience employees are given chance for promotion a step higher compare to his existing position. The employees are generally promoted within the department. Human resource department of the organization keep employees data up to date for the purpose of promotion or giving any fringe benefit. The benefits are given to employees on the basis of their skill and experience for the better work and also for the retention of employees within organization. Human resource department plays important role in the promotion of the organization and its employees. Transfer Human Resource Department of the organization also deals with the transfer of the employees because the Human Resource Department knows the demands of the job and the right person is employed over

at the right place either by transferring him to that post or through direct recruitment. But that transfer only occurs on the basis of requirement of the department head and manager. In organization there are limited numbers of employees transfer are effected one post to other post within the department and also from other department from head office to factories, factories to head office, and factory to factory level to fill the deficiencies of the staff. But this transfer of the employees may be for a temporary period to meet the requirements of the particular department. These transfers should be made with the mutual consultation of department head and human resource department. Layoff (Fire) In an organization the employees are some time subject to layoff due to serious charges of misconduct or on disciplinary grounds. The employee is layoff from job and enquiring proceeding is initiated by the HR department to investigate the case. If the charge of misconduct or any nature of charge is proved in the inquiry report against the individual concerned, the incumbent is liable to imposing major penalty of termination from service or a strict warning is issued in order to mend his behavior. Termination In case the services of an employee are no more required or he is unable to show proper results in accordance with the rules of the organization or due to serious charge of malpractices. The Human resource department manager is empowered in terminating the services of the employees by consultancy the department head and Director Admin. But there are rare cases of termination of employees generally occur in an organization. Retirement The employees are also separated from the organization on account of retirement. The employees are retired from job after attaining the

age of 60 years and some cases after 30-35 years of employment with the organization. The following post retirement schemes for the financial assistance to employees or in operation in the organization. 1- Approved contributory provident fund 2- Pension fund CONCLUSIONS In organization prospective The Service Industries Limited is a large business house involved in manufacturing and trading of the materials. Human resource department is most important organ of its organization. Its importance is also imperative in an organization which is shared by group of companies. It plays very vital role in the success of any organization. It integrate all the activities and functions of the organization like job analysis, recruitment, staffing, training, designing compensation package, employees appraisal system. In General Human Resource Department plays the key role in building the hiring, retention, motivation and promotion of the employees and labor management relations. Actually it assigns the specified duties to the specified persons in this age of specialization by posting right person, at right time, and at right place. Human Resource manager should be skilled and well conversant and confident in his field especially has sound and articulate knowledge of all other functions and labor laws. He should be humbled, well natured and have ability of face reading. All these capabilities ensure his success in performing his assigned responsibilities confidently.