fatima group vs. allahdin group

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    WAQAR AKHTAR BB-10-02

    AMIR JABBAR BB-10-08

    NAVEED AHMAD BB-10-75

    GROUP MEMBERS

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    Term Report HUMAN RESOURCE

    MANAGEMENTFatima Group and Allahdin Group of

    Companies :

    FERTILIZERS SECTION

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    Table Of Contents

    TOPICS

    Overview of the Organizations

    Nature of the Business and itActivities

    Business Volume

    Human resource process

    comparison in Two OrganizationSWOT Analysis of Human Resource

    process

    Recommendations

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    Amir Jabbar

    BB-10-08

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    Overview of the Organization

    Brief History

    Nature of the Organization

    Business Volume

    Product Line

    Number of Employees

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    Brief History

    PakarabFertilizers

    Established in 1973

    Agreement signed PIDC and

    ADNOC Shares:

    52% NFC

    48% IPIC

    It was then acquired by

    Fatima Group and Arif

    Habib Group in 2005

    HFCFertilizers

    Established in 1968 by

    Lyallpur Chemicals &

    Fertilizers Pvt. Ltd. Purchased by AGC in 2006

    Renovated to meet the

    global standards

    Now called as AL-HAMDFertilizer Pvt. Ltd

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    Pakarab HFC

    HR Department

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    Nature of the Organization

    Pakarab Fertilizers

    include manufacturing of

    the plant nutrient,

    packaging, transportation,distribution and export

    Annual Production

    90,000 tons Urea

    450,000 of tons CAN305,000 tons NP

    847,000 tons of multi product

    HFC Fertilizers

    It is also a manufacturer of

    plant nutrients, packaging,

    And Transportation Producer of

    SSP (single super phosphate)

    Sulphuric Acid

    Zinc Sulphatebio gold

    bio fertilizer

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    Business Volume

    Pakarab Fertilizers

    EPS: increasing positively

    Operating and Net profit

    increases

    HFC Fertilizers

    Almost a turnover of 1

    billion

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    Product Line

    Pakarab

    Urea

    Calcium Ammonium

    Nitrate (CAN)

    Nitrophos (NP)

    HFC Fertilizers

    SSP (single super

    phosphate)

    Sulphuric Acid Zinc Sulphate

    bio gold

    bio fertilizer

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    Number of Employees

    Pakarab Fertilizers HFC Fertilizers

    Senior Executive

    Middle

    Managers

    Junior

    Management

    Officers

    20-80 Ratio

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    WAQAR AKHTAR BB-10-02

    COMPARISION OF HR PRACTICES: PAK

    ARAB FERTILIZER VS. HFC

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    COMPARISION

    1. HR planning and forecasting:

    PAK ARAB HFC

    A Proper HR Process Is Followed

    HOD Determines need and

    forecasts it

    Budget is assigned for yearly

    hiring

    Forecast is done on the basis ofproduction to be done

    Long-term yearly plan exists

    Talent hunts are planned in

    institution like LUMS, IBA

    HR Processes Not Followed So

    Formally

    HOD determines need for hiring

    No yearly hiring program

    HR need forecast is done on the

    production basisNeeds are determined on

    seasonal basis

    No talent hunt program

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    PAK ARAB HFC

    Policy issues are formally addressed

    Proper test, interview and group

    discussion takes place

    Mostly ads are given, interview is

    taken for replacement decision, due

    process1stpriority is internal source

    Meritocracy is valued

    Special preferences to institution like

    LUMS, IBA

    Policy issues not given much weight

    age except for legal requirements

    After application just interview is

    done

    Inside hiring for replacement

    decisions1st priority is internal source of

    hiring

    Meritocracy is valued

    No institute based preferences

    COMPARISION

    2. Employee recruitment and selection:

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    PAK ARAB HFC

    Training for all level of employees

    Department head assesses need for

    training

    Training focused of all level equally

    Practical workshops, seminar for

    high level employeesClearance and budget is approved by

    CEO

    Training programs are highly

    formalized at all levels

    Training for all level of employees

    Department Head assesses need for

    training

    Training more focused on sales

    person

    seminars are conducted, farmerdays are celebrated, field meeting are

    done, sales conferences

    Same is here. CEO give permission

    and budget

    COMPARISION

    3. Training and development

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    PAK ARAB HFC

    Performance standards are target

    based

    A formal appraisal form is

    forwarded

    Under performance doesnt lead

    to firingIncentive are not a very common

    practice

    no recognition or award

    Performance standards are target

    based

    Appraisal form is not a common

    practice

    Consistent under performance

    leads to firingIncentive exist but dominantly for

    sale person

    Employee or sales person of the

    year award exists.

    COMPARISION

    4. Performance management:

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    PAK ARAB HFC

    Pay structure: 90% basic + 10 %

    health allowance

    Yearly increment is done

    2 bonuses per year and a

    graduate is paid at every year end

    Cars are given to managers

    Pay structure: 45% basic salary +

    27.5% house rent + 27.5% utility

    bills

    Yearly increment is done

    No bonuses of graduate

    No such package like a car

    COMPARISION

    5. Employee compensation and benefits:

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    PAK ARAB HFC

    A job rotation policy exists to givethe employee exposure, somehow

    career management exists

    Career management

    practices do not exist

    COMPARISION

    6.Organizational career management

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    COMPARISION

    7. Job changes within organization

    PAK ARAB HFCA promotion policy exists thorough

    which employee is promoted afterevery 3 to 5 years

    Transfers are need based and exist

    Firing is very rare, so is demotion.

    But promotion is stopped as an

    alternative for demotion

    1 month notice for resignation for

    permanent employees

    Employee retire at the age of 60

    No promotion policy exists but

    employee are promoted onperformance basis

    Geographical transfers are not a

    common practice

    Demotion dont exist, it just goes

    to firing

    1 month notice for resignation of

    permanent employee

    No fixed retirement age

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    COMPARISION

    8. Unions and management

    PAK ARAB HFC

    Unions exist but do nothave much bargaining power

    Unions do not exist

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    Naveed Ahmad BB-10-75

    SWOT ANALYSIS AND

    RECOMMENDATIONS

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    STRENGTH:

    Entrepreneurial leadership exists in Pak ARAB

    Facilities for workers (house, medical center, school,

    management etc.) Best Management team for fertilizers firm in Pakistan

    Full formalized HR processes exist

    Experienced workforce exists and employees are highly

    motivated Career management is done to some degree

    Frequent training for all level of employees

    Managements attitude towards employees is very positive

    SWOT ANALYSIS

    PAK ARAB (FATIMA GROUP)

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    WEAKNESS:

    Incentives are very less, the only incentive is

    yearly salary increase

    Equal treatment for all the employees even

    some of them are performing better

    Working hour are two much, employees get

    tired

    SWOT ANALYSIS

    PAK ARAB (FATIMA GROUP)

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    OPPORTUNITIES:

    HR needs will increase as the demand for fertilizer

    increases

    New HR practices can be employed to make man

    force more effective.

    The gas line project is an opportunity of expansion

    for the company in near future

    SWOT ANALYSIS

    PAK ARAB (FATIMA GROUP)

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    THREATS: High competition means high turnover of employees

    In order to retain employee organization will have to

    reduce some profit and give employees morecompensation

    The shortage of gas is creating inconsistencies in theproduction making the need for employee

    inconsistent Global crisis which leads to low incentives for

    employees

    Increased labor regulation laws can be threatening

    SWOT ANALYSIS

    PAK ARAB (FATIMA GROUP)

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    SWOT ANALYSIS

    HFC (Allahdin Group of Companies)

    STRENGTHS: Management is supportive towards the HR

    practices

    Clean environment for employees where they

    work

    Healthy environment for manual workers

    Incentives exist and lead to higher motivation of

    employees

    Training and development process is formalized

    Sales force is highly active achieving targets

    because they are properly trained

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    WEAKNESS:

    Employees are not very specialized in HFC

    HR practices exist to a certain level but there is a lack

    of a formal HR system A formal appraisal system does not exist

    Career management practices are absent

    Seasonal nature of business makes turnover high

    because of which motivated employee do not exist Fewer seats for permanent jobs are there, mostly

    there are employees on daily basis and contract basis

    SWOT ANALYSIS

    HFC (Allahdin Group of Companies)

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    OPPORTUNITIES:

    Growing need for fertilizers leads to increase

    in employee demand and an opportunity to

    develop a good formalized workforce

    Entering in other cities means people across

    the country can join and a more diverse

    workforce will be part of the company

    SWOT ANALYSIS

    HFC (Allahdin Group of Companies)

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    THREATS:

    Increasing demands of employees will give

    them more bargaining power

    Increased competition means more incentive

    to motivate employee properly

    Legal restriction regarding labor may increase

    in future

    SWOT ANALYSIS

    HFC (Allahdin Group of Companies)

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    They need to maintain existing HR practices and look for

    new developments in HR.

    They need to change their perception of employee from

    worker to a partner. They should expand their HR department and try to

    develop a system in which they can accommodate

    diverse workforce.

    Due to increasing need for efficiency Pak Arab needs to

    run regular training program for employees so that they

    remain aware of state of art technology.

    RECOMMENDATIONS

    PAK ARAB (FATIMA GROUP)

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    The HR process should be made more formal.

    Training and development should expand beyond the

    sales department to all other departments

    A proper appraisal method should be established.

    Bonuses and other incentive should be given to

    employees as well.

    Over all the company should fine tune its HR processesand make them formal, standardized.

    RECOMMENDATIONS

    HFC (Allahdin group of companies)

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    CONCLUSION