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Internship Report on PEL HR Department

MBA INTERNSHIP REPORT

PAK ELEKTRON LIMITED (PEL)

Specialization: Human Resource Management

Presented to:

Chairman

Department of Business Administration

Submitted by:

Name: Muhammad Fahim Ashraf

Roll #: T520867

Registration #: 06-PKR-0043

Mailing Address: S.O. Section, Punjab Assembly, The Mall,

Lahore.

Contact #: 0321-6576724, 042-9200322

(Department of Business Administration)

ALLAMA IQBAL OPEN UNIVERSITY- ISLAMABAD

M. FAHIM ASHRAF- MBA (HRM)(AIOU) 1


ACKNOWLEDGEMENT

All thanks and praises to be Allah, who is the only source of knowledge and wisdom

bestowed to mankind. The researchers seek peace from Prophet Muhammad (PBUH),

who has always a hope and source of knowledge for humanity.

First of all I admit a receipt of all those who inspire and support me in a strengthened and

groomed way, what I am today. I wish to place on record my indebtness to my parents for

their continuous support and encouragement which I received during my academic

career. I would like to express my gratitude to those people who pray for my success and

help me throughout in study.

I thank to my tutor Muhammad Azeem who always being with me and provide me the

academic, Islamic and moral lessons during my MBA study.

I am great and much obliged to Mr. Waqar Khadim (Head HR Department) who

supported me in a very nice and sophisticated manner. I must say thanks also to

HR Recruitment and Selection team, Performance Management team, Training &

Development team and Industrial Relations team who guided me to share my theoretical

concepts with practical training.



LIST OF CONTENTS

Sr. No. TOPIC Page No.

1 Introduction 12 Overview of the organization 23 Vision Statement / Mission Statement 54 Organizational Structure 65 HR Structure 66 PEL HR vision and mission 77 HR Planning and Forecasting 118 Recruitment 199 Selection 2610 Training and development 3411 Training need assessment (TNA) 3712 Employee Development 3813 Performance Management 4314 Employee Compensation and Benefits 5315 Organizational career Management 6316 Labour Management Relations 6817 Critical analysis of theoretical concept relating to practical

experience70

18 Conclusions 7219 Recommendations 7420 References and Sources 7721 Annexure 78



OBJECTIVES OF STUDYING THE ORGANIZATION

To analyze my HR concepts practically in a well esteemed organization like PEL

and compare it with other organizations

To review the functional hierarchy of the PEL and its Human Resource

Management Department

Analysis of HR Mission / Vision / Strategy/ Objectives and diverse function of

HR Department

To look into the special assignment carried out by HR team like advancement in

Recruitment and Selection process, Performance Management process, Training

& Development process and Compensation Benefits of the PEL.

To conduct strength, weaknesses, opportunities and Threats (SWOT) analysis of

HR Department policies

To put the suggestions and recommendations for further improvements of HRM

initiatives



INTRODUCTION

SAIGOL GROUP PROFILE

In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur

(later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor

Industries Limited. The Saigols set up the first major textile unit - The Kohinoor Textile

Mills under the umbrella of Kohinoor Industries Limited. Currently Saigol Group

consists on the following companies:

Kohinoor Textile Mills

Pak Elektron Limited (PEL)

Saritow Spinning Mills

Azam Textile Mills

Kohinoor Power Company Limited

Kohinoor Energy Limited

PAK ELEKTRON LIMITED (PEL)

Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It

was established in 1956 in technical collaboration with M/s AEG of Germany. In October

1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited.

Since its inception, the company has always been contributing towards the advancement

and development of the engineering sector in Pakistan by introducing a range of quality

electrical equipments and home appliances and by producing hundreds of engineers,

skilled workers and technicians through its apprenticeship schemes and training

programmes. At that juncture, the company was only manufacturing transformers and



switchgears. With the Saigols in management, PEL started expanding its product range

by entering into Air Conditioner manufacturing.

OVERVIEW OF THE ORGANIZATION

PEL has spread its business in all over the Pakistan by its display centers for electric and

electronics goods. Basically the company has divided its goods in two following

divisions:

A. Appliances Division

B. Power Division

A. APPLIANCES DIVISION

This Division of PEL consists of appliances manufacturing.

Air Conditioners

Window-type air conditioners were introduced in 1981 in technical collaboration with

General Corporation of Japan. Ever since their launch, PEL air conditioners have a

leading position in the market. PEL air conditioners cooling performance has been tested

and approved by Copeland and ITS USA. With the shift of users preference from window

type to split type air conditioners, PEL has started manufacturing split type air

conditioners.

PEL Refrigerators

The manufacturing of refrigerators started in 1986-87 in technical collaboration with

M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great



demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and

approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by

SGS Switzerland.

PEL Deep Freezers

PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of

Italy. Because of durability and high quality, PEL deep freezers are the preferred choice

of companies like Unilever.

B. POWER DIVISION

PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks,

compact stations, shunt capacitor banks etc. All these electrical goods are

manufactured under strict quality control and in accordance with international standards.

PEL is one of the major electrical equipment suppliers to Water and Power Development

Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the

largest power utilities in Pakistan.

Over the years, PEL electrical equipment has been used in numerous power projects of

national importance within Pakistan. PEL has the privilege of getting its equipment

approved and certified by well-reputed international consultants such as:

Preece, Cardew and Rider, England

Harza Engineering Company, USA

Snam Progeti, Italy



Societe Dumezm, France

Miner & Miner International Inc. USA

Ensa, France

In spite of stiff competition from emerging local and multinational brands, PEL Group's

appliances and electrical equipments have remained in the spotlight due to constant

innovation. Strategic partnership with multinationals of repute have enabled the PEL

Group to incorporate new technologies into existing product ranges, thus giving the

Pakistani market access to innovative, affordable and quality products.

OFFICES LOCATION

REGISTERED OFFICE

17-Aziz Avenue, Canal Bank,

Gulberg-V, Lahore.

Tel: 042-5718274-5, 5717364-5

Fax: 042-5715105

E-mail: [email protected]

WORKS

14Km, Ferozepur Road,

Lahore

Tel: 042-5811951-7 (7 Lines)

Website: www.pel.com.pk

ISLAMABAD

Room # 1404, 14th Floor

Green Trust Tower, Blue Area

Tel: 051-2273858

Fax: 042-2273858

KARACHI

Kohinoor Building

25-West Wharf Road

Tel: 021-2200951-4

Fax: 021-2310330


http://www.pel.com.pk/

mailto:[email protected]


CHINA

910, No. 1007, Zhong Shan Naun Er

Road

Shanghai, china

Tel: 86-21-64567533

Fax: 86-21-54109971

AFGHANISTAN

Flat # 103, 1st Floor, Block A

Qaiser Market, Kolola, Pushta,

Kabul

Tel: 0093-79826293



VISION STATEMENT

“To excel in providing engineering goods and

services through continuous improvement.”

MISSION STATEMENT

To provide quality products & services to the complete satisfaction of our

customers and maximize returns for all stakeholders through optimal use of

resources.

To focus on personal development of our employees to meet future

challenges.

To promotes good governance, corporate values and a safe working

environment with a strong sense of social responsibility



HR STRUCTURE



HUMAN RESOURCE MANAGEMENT PROCESS IN THEORGANIZATION

The Human Resource Department at PEL is engaged in the areas of Recruitment &

Selection, Training & Development, Performance Management, and Organizational

Development, and strives to align these functions with overall Business Strategy. This

organization place great emphasis on People Development so that people and the

organization perform at maximum capacity in a highly effective manner.

HR Vision

To achieve the Excellence through innovative HR Practices

and continuously exceeding our people expectations.

HR Mission

Our Mission is two-fold:

To manage Talent and build capabilities of our people thus enabling them to

deliver Sustained Performance

To facilitate them in creating a Collaborative Work Environment that

development that develops a culture of continuous learning

Definition of Planning

“A process that involves defining the organization's goals, establishing an

overall strategy for achieving those goals, and developing a

comprehensive set of plans to integrate and coordinate organizational

work.”



HUMAN RESOURCE MANAGEMENT PROCESS IN PEL

Activities necessary for staffing the organization

and sustaining high employees performance.

Human Resource Planning (HRP)

“An effort to anticipate future business and environmental

demands on an organization and to provide qualified people to

fulfill that business and satisfy those demands; HRP includes

talent inventories, human resource forecasts, action plans, and

control and evaluation”

Planning is done to achieve the objectives positively according to vision and mission

statement of the organization with time management. We can also say that HRP is

parallels to general business planning. It is a process by which managers ensure that they

have the right numbers and kinds of people in the rights places, and at the right times,

who are capable of effectively and efficiently performing assigned tasks.

PEL Planning and Forecasting basis on Fiscal Year

In PEL planning is done on the basis of fiscal year. Firstly, the Budget is prepared in HR

Department by each Manger of each section (Recruitment & Selection, Training &

Development, Performance Management and Organizational Development) of HR and

after that Head HR make the finalize the budget for the approval of owner via Managing

Director.

In PEL Human Resource Planning is done on the basis of Objectives or we can say in

PEL management by Objectives (MBOs).



Management by Objectives (MBOs)

A management system in which specific

performance goals are jointly determined by

employees and their managers, progress toward

accomplishing those goals is periodically

reviewed, and rewards are allocated on the basis

of this progress.

PEL Planning Year 2008-2009

Planning of this organization basis on MBOs. Some of the main objectives of HR

planning which have been targeted in last year planning are as follows:

Enhancement of RMS (Recruitment Management System)

PEL has it own RMS which is used for hiring process and it is also used as a internal

source of recruitment. Now the objectives of Recruitment and selection is completion of

listing within RMS(listing module), contact information / consultant information, system

generated alerts, system generated correspondence and letters and reference check,

generating the pool of 20,000 resumes, (target: 5000 resume in each quarter) etc.

(Annexure-I).

Personal Development

Third main objective of PEL R&S department is to implementation of productivity tools

and techniques, personality assessments, improving communication skills, job analysis

techniques, implementing stress management and time management and techniques.

Recruitment Cost

Every organization want to reduce the cost and enhance/ maximize profit so for the

same purpose PEL is doing calculation of recruitment cost/other ratios related to R&S

(Research) and implementation.



RMS Self service Module

Another objective of PEL is the implementation of online short listing and Interview

scheduling, alerts & proactive notifications to HOD / GM, interview evaluations and

testing & implementation

HUMAN RESOURCE MANAGEMENT PROCESS

The relationship of job analysis to HRP

PEL has the total strength of 5,000 employees and its strength increased in season upto

6,000. In job analysis, HR Department analyze each department with the help of head of

department that employees are working at their competencies level further at related or

non-related positions. If the employees are at low competencies for that position they are

trained so that they can be share their maximum skills for that position. Like, by

identifying the behavioural requirement of a positions in a section, HR department said

that total six employees are required in that section, in which, first is at manager level,

and second an assistant manager level and remaining four are at executive level as well as

the qualification and experience for that position holders. We can say that this planning is

human resource planning at short time period.

It has severance 50 employees on 19 September, 2008 for the right size of the

organization by doing the job analyses. More understanding that to meet the challenges of

the modern age, PEL hire new employees from different universities and some

experienced and senior employees will hired form market in 2009. Their competencies

will enhance the business opportunities.

Types Of Plans

There are three main types of planning which are as follows:

1. Strategic

2. Tactical

3. Human Resources

1. Strategic Planning Hunan Resource Planning



An approach to human resource management that has the goal using people most wisely

with respect to the strategic needs of the organization, ensuring that people from all levels

of the organization are working to implement the strategy of the business effectively.

This type of planning relates to long-range process of setting organizational objectives

and deciding on action programs to achieve those objectives. This strategy effects also by

the forecasts of economics; technology and market; and planning of organization;

investment and operations. As PEL is opening five new display centers for home

appliances (Air Conditioner of Window type and Split type and deep Freezer) and for

power industry (energy meters, transformers, switchgears, Kiosks, compact stations,

shunt capacitor banks etc.) distribution in different city of Pakistan in summer 2009. For

these new centers 30 people in number will be recruited and their skills will at

managerial level, executive level and fresh graduates also. With opening five new display

centers how much budget and number of manpower will be required by keeping in

mind changing in industry or creating tomorrow for that most important points are:

Philosophy: In home appliances industry it will make a contribution that people

will get these appliances the same requirements which they required at

economical prices.

Formulating identity of statement, purpose and objectives: According to

mission statement of PEL display centers are have the same mission to providing

electric goods and services by getting the customer satisfaction and maximum

returns to all stakeholder with optimal uses.

Evaluating strengths, weaknesses, and competitive dynamics: In appliances

division Strength of the PEL is that it is providing the same capacity and power

appliances as compare to its competitors (WAVES & DAWLANCE) and have

low prices also. Similarly in power division major competitors are Simens

(Pakistan), Climax limited, Elmetec, Alstom Pakistan, Escorts Pakistan

Limited. These strengths meet the needs of middle level people as well as elite

class level people. In weaknesses, its competitors have more goodwill in market

and its brands are at growing level. Overall world crises will also affect the import



and local purchase of raw material. Changing in demographics and the future

composition of the workforce.

Determining design: In head office all components have completed in January

2009 and plans are at the end of the stage in January 2009. Each display center is

connected with other center to coordinate with one another. In case of any deal,

sale (credit sales), shortage of supply and transportation they can coordinate with

one another under company rules.

Developing strategies: Objective of the organization is measured in terms of

quality as well as quantity. To enhance the sales of the organization PEL is going

to enhance the sales and to increase the value of share in market.

Devising programs: Regional Manger will visit the area to locate the best place

in the city and understanding the nature, capacity (purchasing power) of people

and will make a requisition which will include the procurement, sales, I.T. HR,

marketing and other related management matters. National Sales Manger,

Director General Marketing, Head HR and concerned authority is included in all

management and budget will approved by the GM Finance. Head HR will plan

the number of people required at what level etc with prescribed time period i.e.

January 2009.

2. Tactical Planning

This second type of planning relates to normal, ongoing growth of current operations or

with specific problems that temporarily disrupt the pace of normal growth. Annual

budgeting decisions provide specific timetables, allocations of resources and

implementations standards. The shorter the planning time frame, the more specific the

planning details compulsory.

3. Human Resources Planning

PEL HR department plans parallel to the business plans. Like according to the business

strategies of PEL that 30 candidates are required for new display center. For hiring new

candidates in respective of internal sources, first of all HR department will see its

Recruitment Management System (RMS) i.e. internal pool of qualified candidates on its

Human Resource Management System (HRMS) (Annexure-G & H). Secondly, mostly



used approach in PEL is employees referrals. After that third approach is that HR

department move to external sources i.e. supply of fresh technical graduates and business

graduates (requirement of the PEL). After that all the implication for the candidates that

includes staffing, training and development, performance evaluation, compensation

practices, and other management matters. This short run (tactically) planning leads to

long run (strategic) needs. PEL has a general view that several interrelated activities that

together make up an integrated HRP system that includes:

The relationship of Human Resource to Strategic, Tactical or Operational and

Annual Budget Planning:

As mentioned above that strategic planning perspective is the long-rang planning (2 to 5

years). In PEL plans are made on the basis of strategic planning and relates with HRP.

The main focal point is to analyze the issues like assessing the management implication

of future business needs, factors assessing external to the PEL (e.g. demographic and

social) and estimating the internal supply of the employees over the long run. In this

strategy detailed programmed are not made.

Business

Planning

Process

Human

Resource

Planning

Process


Strategic Planning:Long-Range Perspective

Corporate PhilosophyEnvironmental Scan Strengths and

constraintsObjectives and Goals

Strategies

Operational Planning:Middle-Range

PerspectivePlanned ProgramsResources Required Organizational

StrategiesPlans for entry into

new business,acquisitionsdivestitures

Budgeting:Annual Perspective

BudgetsUnit, individual

performance goalsProgram Scheduling

and assignment Monitoring and

control of results

Issue Analysis

Business Needs

External Factors

Internal Supply

analysis

Management

implications

Forecasting

Requirement

Staffing Levels Staffing Mix

(Qualitative)Organization and

job design Available/Projected

Resources Net Requirements

Action Plan

Staffing AuthorizationsRecruitmentPromotions and

transfersOrganizational

changesTraining and Devlp.Compensations and BenefitsLabour Relations


Tactical Operational planning relates with HRP as forecasting of employees and

employee demand. The next step after the process of forecasting is actions plan

undertaken.

Annual budgeting decision provide specific timetables, allocations of resources, and

standards for implementing strategic, and operational plans. As the time frame shortens,

planning details become increasingly specific.

HR PROCESS ALSO INCLUDES:

The general view suggested several specific, interrelated activities that together constitute

an HRP system, they include:

a) Talent Inventory

b) Human Resources Forecast

c) Actions plans

d) Control and evaluation

(a) TALENT INVENTORY: Human Resource Information System (HRIS) of PEL

helps to collect the talent inventory in all over the organization. Talent inventory is

attention on accessing the current human resources (skills, abilities and potential) and

attention to analyze how they are currently being used so that actual HR forecasting is

composed on record. It contains the record of all employees including managerial and

non-managerial.

HRIS contains all the competencies of the employees which include:-

Current position information

Previous position in the company

Other significant work experience (e.g. other companies)

Education (including degrees, licenses, certifications)

Languages skills and relevant international experience

Training and development programmes attended



Community or industry leadership responsibilities

Current and past performance appraisal data

Disciplinary actions

Awards received

So against the HRP of the PEL HRIS provide the talented inventory also.

(b) FORECASTING HR REQUIREMENTS

The human resource planning activity that predicts future human

resource requirements, including the number of workers needed,

the number expected to be available, the skills mix required, and

the internal versusu external labour supply.

In PEL forecasting is done on the basis of one year planning instead of employees

turnover ratio. How much employees in the organization will remain and after how much

new employees to be hired/recruited by HR department.

In fact, this organization is managing all the HR related issues with respect to objective of

the organization and the hiring new people on the basis on requisition form received from

any department. It has a small focus on predicting the future HR requirements (the

number of characteristics, the skills mix required, internal versus external labour supply).

Less focusing on long term needs i.e. strategic planning.

METHODS TO FORECAST HR NEEDSThere are two main methods to forecasting the HR Needs which are as follows:-

(i)- Forecasting Internal Human Resource Supply:

The most common approach for new hiring and recruiting employees is forecasting

internal human resource supply. Cruuent employees of PEL reflect the future supply of

employees/labour. Performance Management Development (PMD) Section of HR

department is working for internal human resource supply of management level and



Industrial Relations & Administration (IR&A) Section is forecasting for non-

management employees (labour also). The process for developing such a plan including

setting a planning horizon, identifying replacement candidates for each key position,

assessing current performance and readiness for promotion, identifying career

development needs, and identifying the career goals of individuals with company goals,

the overall objectives, of course, is to ensure the availability, of competent executive

talent in the future or, in some cases, immediately, as when a key executive dies

suddenly. All this process is played in action by the PMD Section with the compliance of

the Recruitment and Selection (R&S) Section.

Current Strength: Talented inventory for forecasting internal human resource supply is

provided by the plans of PMD Section (executive level) and IR&A (lower than executive

level) also maintain the corporate level planning of the PEL.

Loss Coverage: Under this method of forecasting losses are made up of resignations,

dismissals, transfers, and retirements and these losses are assessed by historical data,

modified by the current and future trends. Retirements figures are based on a review of

individual retirement rages. PEL make the succession plans by cutting cost of this loss.

Feedback: It is determined by PMD Section by two ways:

(1) As a part of the annual appraisal

process, mangers identify those employees who are considered promotable with the next

1 years planning cycle; and

(2) In a separate annual process,

mangers identify high-potential individuals who have the ability to progress to two

responsibility level higher – in more than one function—during 4 year forecasting.

By forecasting the specific position requirements are the specific knowledge and skills,

for the said purpose PEL make the individual careers as well as for the development of its

career also.

(ii)- Forecasting External Human Resource Supply

Naturally, PEL required electrical graduates, business graduates and labour. So the

distribution of the work depends upon the pre-described criteria. PMD and R&S section

(PEL HR department) give the second preference to this approach of forecasting. But

recruiting and hiring new employees is virtually essential for PEL as well as all the firms



at least over the long run. In case of loss of internal supply of HR forecasting external

supply helps also. R&S section further make HR supply in case of expansion of

operations to normal workforce attrition.

(iii)- Forecasting HR Demand

In PEL, HR department (PMD and R&S Section) also have keep in mind forecasting HR

demand as well as supply. It depends on changes in technology; consumer attitudes and

patterns of buying behavior; local, national and international economics; number, size

and types of contracts won or lost; and government regulations that might open new

markets or close of old ones, just to name a few. Consequently, forecasts of HR demand

are often more subjective than quantitative, although in practice a combination of two is

often used.

This forecasting is done by experts (Managers) who estimate the level of future demand

for human resources. PEL select expert managers form corporate level planners like

Head HR, National Sales Manger, DG Marketing and GM Procurement etc.

(c)- Matching Forecast Results to Action Plan

Action plans: PEL is doing its best efforts to complete the project with prescribed time

period and to enlarge the pool of qualified candidates by such action plans like R&S

section for recruitment, selection, and transfer; and PMD section for promotion,

placement and development; T&D section for training and development; whereas IR&A

for all labour issues and compensation also. Training programmes are designed to

enhance the individual employee competencies as well as for group employees. The

competent employees in PEL also train the other colleagues competencies by given the

special assignments under reporting officer.

Control and Evaluation of HRP System

The last and most important step which provides the feedback on the overall

effectiveness of the HRP system is done by monitoring the degree of attained HR

objectives. Feedback works as a backbone of the HR system. The main purpose of this



step is to guide the HRP activities, identifying deviations from plans and causes of those

deviations. PMS section monitors the performance under the performance evaluation

tenure (quarterly). Quantitative objective maker the control an evaluation process more

objective and measure deviations from desired performance more specifically.



EMPLOYEE RECRUITMENT AND SELECTION IN PEL

Recruitment

“The process of locating, identifying, and attracting capable applicants.”

Decruitment

“Techniques for reducing the labour supply within an organization.”

PEL EMPLOYMENT POLICY

PEL recruit and staff the organization with competent, trained and motivated individuals.

Selection is done on merit and capacity to perform the duties and accept the

responsibilities of the job.

Equal employment Opportunities

PEL provides equal employment opportunity for all applicants and employees. It

maintain a policy of selecting, analyzing, training, training compensating and advancing

employees on the basis of ability, education, training, performance and experience with

regard to race, color, religion, sex or age.

Employee conduct or conservation, whether intentional or unintentional, that result in

verbal or physical harassment, abuse or intimidation against any person on the basis of

race, sex sexual, orientation, age or disability is unacceptable. Inappropriate remarks and

jokes based on these or other personal characteristics are particularly offensive and

unacceptable. Such conduct will result in disciplinary action up to and including

discharge.



Grievance Resolution

PEL has an “OPEN DOOR” policy. The objective is to build and promote an open,

productive working relationship between employees, supervisors and management where

their opinions and may be expressed openly, without fear of ridicule or reprisal.

There is a time when an employee has a problem the needs to be resolved- PEL expects

employees to the first take the matter directly with their immediate supervisor. If the

problem is not handled or resolved at that level, the problem or complaints is forwarded

to the Human Resources Department who listens to the problems and attempts to work

out a satisfactory.

However, on certain occasions when it is imperative to employees to directly take up the

problem to the Managing Director due to the nature of the problems then he can do the

same.

EMPLOYEE RECRUITMENT

PEL recruitment system is centralized on HR department which look after all recruitment

activities and provides coordination to other departments in this regard.

Designation Cadre Wise (Management Level)

M6: MD

M5: GM & Director

M4: Sr. Manager

M2-M3: Manager

M1: Assistant Manager

E1: Sr. Executive

E2-E3: Executive

JE: Junior Executive



Job Analysis:

“An Assessment that defines jobs and the

behaviors necessary to perform them.”

Head of department do the analysis of the section as well as his/her subordinates. He

knows very well where gap for proper or completer working is. To fulfill the

requirements of his section objective which lead to company objectives as well

company mission statement and vision statement, he fulfills the Man-Power

Requisition Form.

Types of Vacancies

There are two main types of vacancies in PEL which are as follows:

New Vacancy

Replacement (Existing position)

Man Power Requisition Form

A requisition is approved Man-Power Requisition Form (MRF) in PEL and it is a

formal document that authorizes the HR department to initiate recruitment process for

the filling of all requests for professional employees, permanent or temporary, the

vacant positions.

Section Incharge who required candidate or candidates for a position, either based on

new vacancy or replacement for productivity of the work, will fill the company

requisition form. This form contains all the information about the criteria of the

required position such as number of position, title of position, grade, education,

experience, age etc. Now this form is sent to HOD/GM of the concerned department

for and HOD/GM will forward this form to HR Department (Annexure-D).

Requisition Form Submitted to HR Department

In HR Department Manager Recruitment and Selection (Manager R & S) do the

analysis of the required position criteria mentioned on requisition form. Now this



form will be forwarded for approval to concerned authority. If the position Grade is

Junior Executive to Executive 1 (JE - E1) then that position is approved by Head HR.

If the position is for a Manager (M1 to M5) then that position is approved by the

Managing Director (MD). After the approval of vacancy or vacancies, requisition

form is marked to Manager (R & S). Now he will start to search the candidate.

Source for Vacancies filling

Manager (R & S) is using two main sources for filling of the candidate which are as

follow:

a) Internal Source

b) External Source

a) INTERNAL SOURCE

Employee Referrals

Employee referrals mean current employees provide names of potential

employees in exchange for a referral fee. In PEL, mostly recruitment is on

basis of employees referrals but they do not pay fee to employees on their

willing.

Internal Hiring (RMS software of PEL)

PEL has its own software for Hiring named as Recruitment Management

System (RMS). It contained about 20,000 resumes of all sectors related to

company (Annexure-I).

b) EXTERNAL SOURCE

Firstly, HR department do its best efforts to recruit employees through

internal source because the cost is saved in this source otherwise PEL HR

is using the following external sources for recruitment.



Colleges/Universities

Fresh graduates of Engineering Line are hired from University of

Engineering, Taxila and Lahore, Ghulam Ishaq Khand (GIK). But most

of the students are hired from UET Taxila.

For Management Line, students are hired from National University

(NU-FAST), Lahore University of Management Science (LUMS),

Institute of Business Administration (IBA), University of the Punjab

(PU), Quaid-e-Azam University, Islamic University, Islamabad.

Internee: The second way to hire the fresh Graduates/Master degree

holder students from universities is Internee. During the internship,

students are assigned special assignments; if the students qualify the

assignments successfully they are also offered for job.

Advertisement in Print Media

Print Media is also used in PEL for Hiring through external sources. Ads

are given in "Daily Jang", "Daily Dawn" newspapers and also at

international newspaper like "Khalige Times". (Annexure - B & C).

Company Web Site

New vacancies are also uploaded on web site of the PEL

(www.pel.com.pk\career). So third way to fill the position is the

company web site.

Employment Agencies

PEL is hiring the employees through employment agencies. It prepare

the job description and job specification according to their required

candidate and forward to recruitment agencies. The main responsibility

of the recruitment agency is to hire the candidate for PEL and the next

all working responsibility depend on PEL. The agency demand about

one month salary of the candidate for payment.



Sorting received Resumes/Applications

After the closing date of the submission of resumes/applications, R & S section

Executives will sort the resumes on the basis of mentioned Criteria for Job description

and Job Specification in Man Power Requisition form. (Qualification, Experience,

Specified working experience).

Job Description: A written statement of what a jobholders does, how it is

done, and why it is done.

Job Specification: A statement of the minimum qualifications that a person

must possess to perform a given job successfully.

(Annexure-J).

Whenever executives prepared the sorting list of qualified candidates the list is given

to Manager R & S.

Sorted List of Candidates forwarded to HOD/GM

Manager R & S will forward the sorted list of candidates to concerned HOD/GM.

He/she will recommend the candidates and HR department will calls to sorted

candidates.

Telephonically Interview

An experienced person is selected in such type of interview. It about taking the views

of the candidate and he is finalized by the same process which is described below

after the recommendations of the interview panel. Manager (R & S), HR department

is conducting the telephonically interview in PEL. First of all the profile description is

described by candidate after that Manager asked the relevant questions of his job and

he calls him/her for further interview/salary fixation etc.

Call for Interview/Test to short listed candidates

HR department will call to recommended candidates for Initial Interview with date

and time.



Test:

Fresh candidates enter in PEL through a standard test which includes:

Mathematics

English Grammar

General Knowledge

Current Affairs

Related Filed Questions

In some exceptional cases like experienced candidates are not examined by test, they are

selected by interview for same post.

SELECTION PROCESS

The process of screening job applicants to ensure that

the most appropriate candidates and hired.

Criteria for selection:

Candidates are selected of the basis of Job Description and Job Specification.

Interview Detailed Form

This form is just like a Resume/C.V. of candidate which contained personal profile,

qualification, Salary information, major assignment and achievements, computer

proficiency, Personal career vision, inspirations, personal S.W.O.T. and personal life etc.

Initial Interview by Manager R& S

On the said date and time the candidates will come for interview in HR Department then

HR department will give him Interview Detailed form.

JE to E1: First interview is conducted by the Manager (R & S) with HR

representative (not below the ranked of the Assistant Manager) and concerned



HOD. At the end of interview it is decided that the candidate has recommended

for selection or he/she is recalled for a nominated panel interview.

M1 and above: the above motioned interview process (JE to E1) is same for

M1 and above cadre (Excluding Test). Initial is conducted by the concerned

GM /HOD, Head HR Department and Manager (R & S). The interview

evaluation form is same.

In some exceptional cases (An Aptitude Test) can be conducted by the

candidate.

Interview Evaluation Form

PEL is conducting a very good approach to evaluate the candidates through a written

criteria (IEF) form and this form (Annexure-E & F) is filled by the HR Representative in

that Interviewer which includes like name of candidate and position applied for and

others:-

Personal Traits Observation: At the time of the interview the candidate is

observed in personal traits like:

Appearance

Observable traits

Skills

Competencies

Salary and Benefits: It include the questions related to experience of candidate

such as;

Last salary drawn

Expected salary

Joining Date



Rating: The evaluation is done on the basis of rating in a numerical form like;

1 = Poor

2 = Satisfactory

3 = Good

4 = Very Good

5 = Excellent

The most important points are also kept in mind which is:-

Recommendation for candidates:

Additional Comments

Final Approval

Recommended Salary and Grade

DISC Analysis:

DISC is probably the most widely used behavioral profiling system in the world. In this

guide, we explore the history and workings of the DISC technique, and look at some of

the ways that it can be make a significant difference to the way you deal with people.

In PEL the candidate is analyzed on the basis of DISC that the selected candidate will

stay, if remain, for how much time, or not.

D = Dominance

I = Influence

S = Steadiness

C = Compliance

Panel Interview

Successful candidates in initial interview are called for the next interview on basis of

merit list which is called nominated panel interview. Only the recommended candidates

by the first interviewer or short listed candidates are called for the nominated panel

interview.



JE to E1: After the initial interview the Manager (R & S) and concerned HOD

will recommend to GM / Head HR and Manager (R & S) panel for selection or

he/she is recalled for a final interview.

M1 and above: After the initial interview by the GM / Head HR / Manager

(R & S) will recommend to MD/ Director for selection or he/she is recalled for

a final interview.

If the candidate is finalized in all aspects of the interview he is finalized at same

time otherwise he is recommended for the final interview.

Final Interview

JE to E1: If the candidate is not finalized in all aspects of the interview in

panel interview, he is finalized in this interview. After the nominated panel

interview the Head HR /Manager (R & S) and concerned HOD will take

final decision for confirmation or rejection of the candidate.

M1 and above: If the candidate is not finalized in all aspects of the interview in

panel interview, he is finalized in this interview. After the nominated panel

interview the Head HR will recommend to MD / Directors and 2/3 GMs for

final selection or rejection of the candidate. Interviewee called from outstation

is paid by bus/rail return fare.

Reference Checking

After the confirmation of the employees the candidate can also be checked by his/her

given reference in C.V. so that his behavior, attitudes and habits can be accessed. The

best way to analyse the on-the-job employee candidate is that ask the last organizations

about his employment history and his SWOT analysis questions.



Confirmation of Candidates

JE to E1: At this level of candidate is confirmation or rejection of the candidate

for employment is done by Head HR and GM.

M1 and Above: At this level of candidate is confirmation or rejection of the

candidate for employment is done by MD/ CEO.

Salary Fixation: -

Head of HR Department in consultation with the concerned General Manager / Head

of Department will determine the salary of new inductee. Following factors may be kept

in mind while determining the salary:-

Qualification

Experience

Grade

Existing salary structure of the company / Department

Job Offer Letter

On the final recommendation of HR Department, the candidates are offered a

standardized and confidentional offer letter for the selected which includes the

followings:

Position Title

Grade

Probation/training for the period of 3/6 months

Name of Reporting Manager

Policies & Procedures

Provident fund as per Company Policy

This letter is valid for 3 days offer letter.



Acceptance of Job

The candidates will give the acceptance of the agreement and his period of

employment start and his/her probationary period as well as for confirmed

employment.

Medical Examination

The selected candidate after the acceptance is examined by the doctor of the PEL for

a successful future with them. After the positive report the candidate will continue

his/her service or is rejected, if he/she is on negative report. The candidate is rejected

because at the initial stage as well as continuously will does the loss of the company.

Employment Form

Profile of the employee is recorded on the employment form which is normally

mention in his Resume.

Letter of Appointment

The most important rules and regulation of the company is mentioned same as in

letter of appointment like:

Position Title

Grade

Probation/training for the period of 3/6 months

Name of Reporting Manager

Policies & Procedures

Provident fund as per Company Policy

JOB DESCRIPTION

With the issuance of letter appointment, a proper letter is issued by Recruitment &

Selection Section of HR department which includes the job title, grade/level, department,

reporting officer, location, working condition, and level of authority. All the duties and



responsibilities are headed by the said section. This letter also includes the job

specification (Annexure- D).

Joining Report:

On acceptance of the offer letter Job Description and Job Specification the candidate will

give the joining report in writing.

Orientation

Introduction of a new employee to his or her job and the HR Policies of the organization.

Concerned Manager explain about the Job Description and introduce with

department. It includes the orientation of the unit of the PEL which is introduced by HR

representative.

Probation Period for Executive/Senior Executives Positions: -

For employees up to Executive level the probationary period shall be 3 months with

one-month notice period for separation. But the probationary period of trainee for

management level i.e. Management Trainee Officer (MTO) and Trainee Engineer

(T1/T2) is for 6 months.

Probation Period for Managerial Staff: -

For Management cadre the probationary period are 6 months with 3 months notice

period for separation.

Employee Probation Report: -

In order to make assessment of the new entrants, HR Department shall initiate

Employee Probation Report, this report shall be sent under confidential cover to

respective GM/Head of the Department, for assessment and views. The same is returned

to HR Department for issuance of confirmation letter as endorsed by the GM/Head of

Department.

Trainee Salary

The salary of trainee is mentioned only as Basic salary in their software and he/she is not

entitled to gain any benefits of the organization.



Extension in Probation Period: -

Normally the probation period is not extended, however, in some cases it may be

considered. If the probationary period is extended of any trainee he will received the

same basic salary and no any other benefits by the company.

Confirmation/Termination

A letter is issued by HR which titled as “CONFIRMATION” after that the employee

will get all the benefits of the organization. i.e.

Basic Salary

House Rent Allowance

Utilities

Conveyance Allowance

Special Pay

This letter is also contained his cadre, designation, salary amount and provident fund

contribution declaration.

Group Life Insurance (Metropolitan Company)

Whenever the employee is declared as permanent, on the same day, his insurance day is

start and his name is forwarded to Metropolitan Company in the list of insured Group

employees of the PEL.

Human Resource Management System (HRMS).

All the activities of the Human Resource Department is recorded and in PEL on their on

Human Resource Management System (HRMS).



TRAINING AND DEVELOPMENT

Training

Planned programs designed to improve performance at

the individual, group, and/or organizational levels.

Development

The managerial function of preserving and enhancing employees

competence in their jobs through improving their knowledge,

skills abilities, and other characteristics

Training and development Phase of Training

The phase whose purpose is to design the environment in which

to achieve the objectives defined in the assessment phase by

choosing methods and techniques and by delivering them in a

supportive environment based on sound principles of learning.

There is proper working in PEL HR department named as Training and Development

(T & D) Section headed by Assistant Manager (T&D) with assistance of 3 executive level

employees. During my internship I observed that PEL has two types of employees, one is

at management level (JE to M6) and second is technical staff (S1 to NG). The source of

training is performance evaluation report of employees in which reporting officer has

mentioned that his subordinates required training or not.

1. Align learning with business

After assessing the TNA form, type of programme is finalized and his/her learning

programme is aligned with business objectives. Such as Sales Forecasting programme is

aligned to enhance the business of PEL automatically.



2. Integrate learning with HR and other business processes

During my internship, I observed that the Sales Forecasting programme was integrated

with business objectives that sales will increase the profit of PEL and it will also increase

its share value in market. Similarly the HR vision will vision will meet its expectation

like excellence people through innovative HR practices. People become talented and their

competencies increased through training.

3. Create a learning culture

This learning programme (Sales Forecasting) was arranged in Auditorium of PEL.

They set the mind of the employees that learning is activity will also be favourable in

their own career. Employees are given certificate after the completion of training

programme which build his/her career. So the employees automatically take interest in

learning.



4. Provide appropriate learning options

In case of appropriate learning, PEL is offering only two options. One is in its factory

position and other outside the organization. Other option is off-the-job training

programme which also make the future of the employees independently to PEL.

5. Manage learning effectively

An agenda is finalized in which time period is mentioned and implementation is made

accurately. During the training programme practical study case, business games and

critical incidents etc. are given as assignments and their weighted is added in final marks.

So the employees focus on their Grade on Certificate.

6. Support application of skills in workplace

During the training programmes employees are purely focused on its implementation on

workplace. The result of the training programme outcome with at least 6 months.

Application of training programme fully support the work.

Training Design, Implementation Methods and Evaluation

On the recommendation of the reporting officer training programmes are designed and

Design of the programmes according to the level of employees and budget for training.

Training programmes have also different methods for implementation. According to

designed programmes and budget aspects trainers are hired and internal section do the

planning. Most of the groups training is given in the Auditorium of PEL and individual

training are given through external sources like LUMS, UMT and foreign countries.

The best method is used for training for best learning of employees. Training channels

used in PEL are Presentations of computer slides, audio visual and latest equipment

and technology for technical staff.

After the completion of the training employees are Evaluated through Evaluation form

and normally training results outcome after 6 months at least.



TRAINING NEED ASSESSMENT (TNA)To assess the employees that what type of training employees need. In PEL, T&D section

has a from to asses the employees for training needs called Training Need Assessment

(TNA) form e.g. form of Communication Skills (Annexure-G). After TNA forms

collection T&D section adjust the employees either for on-the-job or off-the-job training.

TNA form contain competencies of the employees like knowledge, skills (technical also),

values, attributes and communication skills.

Types of Training

The following 16 main types of On-the-job Training adjust all the employees in PEL

because these training programmes lead to mission and vision statement of the PEL.

(Annexure-L)

HR Skills for Line Manager

Leadership

Total Quality Management Communication Skills

Strategy Making

Problem Solving / Decision Making Skills

Communication Skills

Financial Skills

Supply Chain Management

Building managerial Competencies

Lean Manufacturing

Sales forecasting

Time / Stress Management

Team Building

Negotiation Skills

Finance for Non-Finance Manager

MS- Intermediate level

MS- Advance Level

EMPLOYEES DEVELOPMENT



The major techniques are using in PEL to develop employees are given below:

(A) Techniques for Individual Development

(B) Techniques for Group Development

(A) TECHNIQUES FOR INDIVIDUAL DEVELOPMENT

1) Job Analysis and Description: PM section of PEL HR department do

assessment of the kinds of skills, knowledge, and abilities needed to

successfully perform each job in an organization.

Job Analysis Components

PEL is focusing on following two major components which defines as:

Job description

A written statement of what a job holder does, how it is done, and

why it is done

Tasks, duties and responsibilities that the job entails.

Job specification

A statement of the minimum acceptable qualifications that an

incumbent must possess to perform a given job successfully

Knowledge, skills, and abilities required of the job

holder

2) Test and examinations: After given the training for the management development of

the individual development trainer take the test by written test of the employees mean

that by adopting this simple method is to write a narrative description and employee’s

strengths, weaknesses, past performance potential, and suggestions for improvement. The



written essay requires no completes forms or extensive training to complete special test

are

Aptitude

Intelligence

Ability

interest test batteries

3) Questionnaires: During and after training impel PEL trainer also ask questions

which is also a good techniques for the development of management. The fist type

provides a list of times to ticked, alternative answers to be selected, and blanks to be

filled in. it could also have a scaled structure or require “yes/no” responses. The second

type offers an opportunity to give a more complete and comprehensive picture of a

situation.

4) Interviewing: In PEL as well as in all the organization in the world this technique is

used for the development of the management and different purpose and many different

ways. This purpose is to get information may concern

Events

Work results

Knowledge behavior

Attitudes

Opinions values

Habits

Perceptions

5) Observation: This Company has also solution of the development problems apparent

only through systematic care observations is done which help for development.



Observing a regular management meeting, watching a Supervisor/Manger/HOD dealing

with people or problems, or observing manager full time.

6) Critical Incidents: PEL also developing its employees individually by critical

incidents, it is defined as:

“Evaluating the behaviors that are key in making the difference between

executing a job effectively and executing it in ineffectively.”

For the management development a Supervisor/Manger/HOD see critical incidents by

which the evaluator attention on the behaviors that are key in main the difference

between executing a job effectively and executing it ineffectively. That is, the appraiser

writes down anecdotes that describe what the employees did not vaguely defined

personality traits. A list of critical incidents provides a rich set of examples from which

the employee can be shown the behaviors that are desirable and those that call for

improvement.

7) The Diary Method : In this company Supervisor/Manger/HOD also record the

activities over given period of time, selectively or be confined to events regarded as

critical incidents can be done by diary method. So this approach is also a good

development technique to achieve the objectives of PEL.

8) Management by Objectives (MBO):

Basically in PEL employees are evaluated by how well they accomplish a specific set of

targeted/assigned objectives to be critical in the successful completion of their jobs.

9) Self Assessment:

This is a method in PEL by the order of HR department for self-assessment through

which an individual will save his/her career by availing the opportunity to test present

skills in an environment where he/she fails. So it helps to develop existing skills.

10) Career Planning:



Where the Supervisor/Manger/HOD of the PEL, compulsory to described objectives;

there he has to also described the performance, behavior, competence and training need

or the individuals for career planning.

11) Action Learning: In real life experiential learner is using real-life experiences to

change behavior or attitudes, also uses element of action learn learning. However, when

describing experiential learning we have in mind not a set of techniques or a type of

program but a broad concept of utilizing real-life experience to learning. Action learning

comprises a set of logically interconnected activities that are structured specifically of

achieving personal learning and organization change.

12) Training from abroad:

In PEL Employees are also trained by international training seminars, session and

institutions in respect of off-the-job training. Only GM level (M4) employees go to

abroad for training to remain in-touch with latest technologies and according to the

requirements of the organization. All the expenses are compensated by the PEL. In

October, 2008 Mr. Waqar Khadim, Head HR went to abroad to attend the International

HR Seminar in Germany for 10 days.

(B) TECHNIQUES FOR GROUP DEVELOPMENT

After the sorting and analysis of TNA forms most of the employees fall in the same

category training. So T&D section design the group plans for development of the

employees which are as follows:

1) Group Meetings

An evaluation method that places employee into a particular classification, such as

quartiles meeting in PEL . It requires the evaluator to place employees into a particular

classification, such as top one-fifth or second one-fifth.



2) Group Projects: During on-the-job training in PEL groups are assigned a project

like to opening a new unit for sale. Then SWOT analysis of the unit. Such a group

projects serve a wide range of company objectives. In PEL two tend to prevail

(i) a temporary group is established on a part-time basis, with the agreement and support

of senior a management, (ii) a group is established with the combined objective of

working on a practical problems and of learning specific skills in the course of this

process.

4) Business Games

A situational test in which candidates play themselves,

not an assigned role, and are evaluated within a group.

During my internship, I observed that trainer from UMT trainer the employees by the

same practice. Firstly a group of 30 employees stand in an unshaped form not in proper

circle and they catch the ball to each other. After 5 minutes trainer make a group of only

15 employees and they catch ball each other. In last, a group of only 5 boys stand in a

circle shape and said to catch the ball in a circle shape also. Trainer drew the result if the

employees work according to plan and direction they will have a clear objective and will

get their target with prescribed time period. So this approach also develops the employees

in management.

5) The case Method

During the training of sales forecasting program, I observed that employees were

assigned a case to enhance their sales by doing the SWOT analysis that how they forecast

their sales with competitors. This method stimulates and synthetic work involved in

preparing and proposing solution to business problems.

PERFORMANCE MANAGEMENT



Performance Management System

“A process of establishing performance standards and evaluating performance

in order to arrive at objectives human resources decisions as well as to provide

documentations to support those decisions.”



PEL Company makes the personnel movement to place employees in positions where

their effectiveness is best utilized within the organization. This is achieved thorough

proper matching of skills, capabilities individual aspirations of current employees against

the current and potential manpower needs of the organization.

Internal Advancement / Promotion

PEL encourages internal advancement for advancement for employees. Seniority is not

necessarily a factor in promotions. The ability to perform required duties well is the main

consideration.

Regular performance evaluation

PEL holds regularly scheduled performance evaluation. The first evaluation takes place

in 3 months after an employee’s start dated to give the employees a feel for who things

are going early enough to make any necessary adjustment. If the evaluation goes well the

employees is awarded regularly full time status. The next evaluation takes place one year

after the employee’s start date and annually after that. Possible salary adjustments are

considered at every annual performance evaluation.

PERFORMANCE REPORTS WRITING STYLE

In PEL performance report are written online in PMDP. Online forms are filled in its

internal website and finally rating is done on the basis of competencies.

Performance Management & Development Process (PMDP) in PEL

Online forms are filled in PEL. They have their own internal online system which

includes the following characteristics like: Performance reports include the following

important particulars like:

General Information of Employee: It includes the profile of the employee,

appraisal status last year and name, ID, designation, cadre, section, education,

joining date, previous experience, last promotion (Last/ No. of promotion).



SETTING PERFORMANCE STANDARDS AND EXPECTATION

All the companies have different standard for performance appraisal. In PEL,

Performance Standards are set on the basis of numerical rating form e.g.

4 = Outstanding

3 = Very Good

2 = Good

1 = Need Improvement

Perromance reports writing include all competencies of the employee mentioned

below are filled by the Reporting Officer of the employee and forwarded to

Manager (Performance Management and Development) in HR Department.

1. Leading & Developing - Collaboration

ExecutivesWork or act jointly with others and establish a high level of motivation

commitment and productivity among them.

Managers

Work or act jointly with others and provide supportive environment by

securing necessary resources and removing blocks to effective working.

Helps individuals think through issues for themselves.

2. Change Management

Executives

Implementation of change initiatives. Supports innovation and creativity

and able to face challenges. Remains flexible to meet constantly changing

and sometimes opposing demands.

Managers Plans and implements change initiatives. Supports innovation and creativity

by encouraging staff to accept and resolve challenges. Remains flexible to

meet constantly changing and sometimes opposing demands.

3. Work Coordination

Executives Follows instructions through a standard work process; performs routine



tasks; checks work for accuracy before completion of tasks

4. Delegation

Executives

Able to assign responsibilities according to the capabilities of individual

subordinates and empowers them to perform. Manages his own annual

leaves (enjoys time out).

Managers

Able to assign responsibilities according to the capabilities of individual

subordinates and empowers them to perform. Manages his own annual

leaves (enjoys time out). Encourages/organizes leave plan for his/her

subordinates and department.

5. Team work

ExecutivesInvolve others in own area and ideas. Keeps others informed. Utilizes team

member's skills. Helping the team members for enhancing their skills.

ManagersInvolve others in own area and ideas. Keeps others informed. Utilizes team

member's skills. Helping the team members for enhancing their skills.

6. Strategic Thinking

Executives Give the suggestion for strategies.

ManagersAnticipates needs, forecast conditions and plans keeping the overall

business strategy importance in mind.

7. Planning & Organizing

Executives Plans ahead and demonstrates good organizing skills.

Managers Plans ahead and demonstrates good organizing skills.

8. Communication

ExecutivesAble to clearly communicate with others verbally and in written form. Good

in developing the relation with others.

ManagersAble to clearly communicate with others verbally and in written form. Good

in developing the relation with others.

9. Negotiation

ExecutivesExchange views and proposals with an eye to reach agreement by sifting

possibilities, proposals and pros & cons.

Managers Exchange views and proposals with an eye to reach agreement by sifting



possibilities, proposals and pros & cons.

10. Initiative & Efforts

ExecutivesAble to come up with ideas to improve business and work practices where

opportunity arises.

11. Self Learning

Executives Manages self to learn new things at work place and away from it.

Managers Manages self to learn new things at work place and away from it.

12. Creating Learning opportunities

ExecutivesEvaluate experience of self / others and create new learning opportunities

and learn from them.

ManagersEvaluate experience of self / others and create new learning opportunities

and learn from them.

13. Problem Solving & decision making

ExecutivesDecisive action within an accepted time frame, effectively choosing

between alternatives, decision well under severe pressure.

ManagersDecisive action within an accepted time frame, effectively choosing

between alternatives, decision well under severe pressure.

14. Health Consciousness

ExecutivesTake care of his own health, follows daily/weekly exercise regime.

Participates in sports/games.

ManagersTake care of his own health, follows daily/weekly exercise regime.

Participates in sports/games.

15. Clarity of Thoughts

Executives Anticipates needs, forecast conditions, plans and thinks logically.

Managers Takes responsibility in moving the company to wards its vision

16. Quality

ExecutivesProvides high quality services, processes, programs & products while

consistently seeking to improve outcomes and enhance service.

Managers Provides high quality services, processes, programs & products while



consistently seeking to improve outcomes and enhance service.

17. Empathy

Executives Demonstrates genuine concern for others and respects and values people.

Managers

Demonstrates genuine concern for others and expends considerable effort to

understand the real needs, concerns and feelings of others and assist them

without expectations of rewards.

18. Leave Management

ExecutivesEncourages work-life balance by organizing leave plan for himself / his


ManagersEncourages work-life balance by organizing leave plan for himself / his


Employee Strength and development Needs

Reporting officer will also recommend for employee strength and development and will

forward his request to HR department then HR department will take the final decision on

those competencies of the employee.

Recommended Training Areas

Training areas are defined by the reporting officer and according to T & D department his

schedule for training is finalized.

Promotion Recommended

Quarterly appraisals shows the employee status and finally concerned Authority

recommend for promotion or not.

Salary Increment

Salary is increased on the basis of Profit Margin, PEL criteria and policy, salary is

finalized by HR department. It is also kept in mind that the A, B, C & D Block which

shows the rating of the employees appraisal. At the time of increment of salary increment

is add in Basic Salary and Adjustment is made as separate allowance.



Bell Distribution for 2007-08

Bell Increment

A 10% 20%

B 20% 16%

C 40% 14%

D 20% 12%

E 10% 08%

Finally aggregate is made on percentage i.e. Promotion is 5% which will be add in

previous salary.

Employee’s Comments

After filling of the form it is reviewed by same employee and his comments are written

on the report and forwarded to HR Department.

Final Approval

HR gives the final approval of the employee performance on the basis of concerned

officer recommendation, last performance appraisal (3 to 5 years).

Techniques for Evaluation

Some specific techniques in PEL are used for evaluation of employees’ performance are

given below by which can be used by a manager:

1. Written Essay

2. Critical incidents

3. Graphic Rating Scales

4. Behavior Anchored Rating scales

5. Forced Comparisons

6. Multiple option of Evaluators like Senior Staff Member

7. Evaluate Selectively



1. Written Essay

PEL company evaluate the employees i.e. by written test of the employees mean that by

adopting this simple method is to write a narrative description and employee’s strengths,

weaknesses, past performance potential, and suggestions for improvement. The written

essay requires no completes forms or extensive training to complete. But in this method a

good or bad appraisal may be determined as much by the evaluator’s working skill as by

employee’s actual level performance.

2. Critical incidents

“Evaluating the behaviors that are key in making the difference between

executing a job effectively and executing it in ineffectively.”

For the evaluation of the employees performance in PEL company a

supervisor/GM/HOD can see critical incidents by which the evaluator will attention on

the behaviors that are key in main the difference between executing a job effectively and

executing it ineffectively. That is, the appraiser writes down anecdotes that describe what

the employees did not vaguely defined personality traits. A list of critical incidents

provides a rich set of examples from which the employee can be shown the behaviors that

are desirable and those that call for improvement so by using the critical incidents a can

also evaluate the performance of the employee.

3. Graphic Rating Scales

“An evaluation method in which evaluator rates

performance factors on an incremental scale.”

Managers in PEL also evaluate the performance of the employees by using this method

that is one of the oldest and most popular methods of evaluation is use of graphic rating

scales. In this method, a set of performance factors, such as

quantity and quality of work,

depth of knowledge,

cooperation,

antecedence, and

initiative is listed.



The evaluator then goes down the list and rates each on incremental scales. The scale is

specified in five points, such as job knowledge is rated 1 (“poorly informed about work

duties.”) to 5 (“has complete mastery of all phases of the job”). Although they don’t

provide the depth of information that essay or critical incidents do, graphic rating scales

are less time-consuming to develop and administrate. This method is also allow for

quantitative analysis and comparison

4. Behaviorally Anchored Rating scales (BARS)

“Scales that combine major elements from the critical incident

and graphic rating scale approaches: the appraiser rates the

employees based on items along a continuum, but the points

are examples of actual behavior on the given job rather

than general descriptions or traits.”

In this company behaviour and performance dimensions of employees are found by

asking participants to give specific illustrations of effective and ineffective behaviour

regarding each performance dimension. These behavioral examples are then translated

into a set of performance dimensions, each dimension having varying levels of

performance which is finalized by the Managers.

5. Forced Comparisons

The fifth one method for PEL employee is to evaluate one individual’s performance

against the performance of another. There are two main ranks for forced comparisons

Group order ranking

Individual Ranking

Group Order Ranking: An evaluation method that places employee into a particular

classification, such as quartiles. It requires the evaluator to place employees into a

particular classification. Evaluators are asked whether the employees ranks in the top 5

percent of the company, the next 5 percent, the next 15 percent, and so forth. But in this

type of performance appraisal, managers deal with all their subordinates therefore, if rater



has 20 employees only 4 can be in the top fifth and, of course, 4 must also be relegated to

the bottom fifth.

Individual ranking: An evaluation method that rank-orders employees from best to

worst. If the manager is required to appraise 30 employees, this approach assumes that

the difference between the first and second employees is the same as that between the

twenty-first and twenty second. Even though some of employees are closely grouped,

no ties are permitted. The result is a clear ordering of employees, form the highest

performance down to the lowest.

6. Multiple options of Evaluators like Senior Staff Member

For the evaluation of the PEL company employees as the number of evaluators’

increases, the probability of attaining more accurate information increases. If rater error

tends to follow a normal curve, an increase in the number of appraisers will tend to find

the majority congregating about the middle. We often see multiple evaluator’s in

competitions in such techniques as driving and gymnastics. A set of evaluators judges a

performance, the highest and lowest score are dropped, the final evaluation is made up of

those remain. The logic of multiple evaluators applies to organizations as well so by

using the multiple options by a senior staff members are evaluate better.

7. Evaluate Selectively

By using this technique appraisers evaluate only in areas in which they have some

expertise. This precaution increases the interpreter agreement and makes the evaluation a

more valid process. It also recognizes that different organizational levels often have

different orientations toward those being rated and observe them in different setting. In

general, therefore, the individual being evaluated. Conversely, the more levels that

separate the evaluator and person being evaluate, less opportunity the evaluator has to

observe the individual’s behavior and, not surprising, the greater the possibility for

inaccuracies.



EMPLOYEE COMPENSATION AND BENEFITS

To retain the employees within the organization all the benefit are offered. The benefits

provided-for under the Policy of PEL are voluntary and not construed to have any

relation whatsoever to the determination of the amount of compensation paid to an

Employee, or to any of the terms of Employment, but are to deemed as voluntary regards

for, and in appreciation of, faithful and, efficient service. This company is compensating

the employees by following benefits:

BASIC SALARY

Basic salary is paid to each employees according to the grade. All the allowances are

added in salary on the percentage of Basic Salary.

SKILL-BASED PAY

A pay system that rewards employees for the job skills they are demonstrating.

Performance appraisals that determine the employees’ contribution and assist in

selecting the proper salary level within the salary grade.

PROMOTION INCREASE

A promotion is a permanent assignment to a more responsible job in a higher grade or re-

evaluation of current job to a higher grade because of a substantial increase in

responsibilities.

CONFIDENTIALITY OF SALARY

Salary is strictly treated as confidential. Employees do not discuss their salary with any

one other than their supervisor or HR department.

HOUSING ALLOWANCE

All Employees are eligible to receive a Housing Allowance of a percentage (45%) of

their Basic Salary is determined by the Human Resources Department.



UTILITIES ALLOWANCE

All Employees are paid a Utilities Allowance of their Basic Salary, is determined by the

Human Resources Department. (e.g. Electricity)

BONUSES

This company offers four bonuses to its employees. One bonus is equivalent to 30 days

basic pay. As the bonuses are given 3 or 4 times in a year therefore the numbers of days

changes.

CAR FOR MANAGERS

PEL offers the following models of car on installment with the service of 3 years and his

installment is deducted from his salary.

Mehran

Cultus

Liana

Honda City Vario

Honda VTI PT

HAJJ SCHEME

Total 6 (six) employees (workers / staff up to E1) are sent every year

Employees are selected through balloting process

Employees with minimum service of 5 years with PEL Group are eligible fort this

scheme

Cost of fares and stay in Saudi Arabia during Hajj Period will bone by company

Selected employees are provided leave with pay during the period

Theses leaves are not deducted from authorized leaves of the individual

GROUP LIFE INSURANCE



The company has assured all permanent employees in “Group Life Insurance”. A

comprehensive benefit coverage policy has been undertaken with the spirit of concern

and well being that the company cherishes for its employees.

This policy covers:

Death due to any cause

Permanent, total & Partial Disability Benefit

Accidental Disability Benefits

Body Injury

Accidents

Total Disablement

Partial Disablement

Loss of Limbs

LEAVE

Leave is very important for smooth running of the business each department and for

satisfaction of employees. PEL is compensating the following leaves:

Total leave :

In PEL, regular employees are entitled to total leave of Thirty (30) workday

(Annual/Sick/Causal) after completing one year of continuous service to enable them to

rest from their daily routines. Annual vacation is calculated on a calendar year basis. An

employee who is hired during the calendar year basis and employee who is hired during

the calendar year shall earn vacation credits on a prorated basis until December 31st of

that year and theses are given to him on completion of one year’s service.



Leave Entitlement:

Category/ Grade of

Employees

Annual/Sick/Causal

Leaves

Maximum

Accumulation of Leaves

Staff Grade JE and above 30 90

After the completion of 12 months a continuous service, the above mentioned

leaves(s) are credited to the employee’s account, thereafter the credit of leave(s)

are made on 1st January every year.

Employees having annual accumulation upto 90 days can get their leave encashed

at any time leaving a balance of 30 days minimum.

During probation, Executives may be allowed leave without pay for a maximum,

of 10 days.

Work accident leave

If an employee who is not covered under Social Security, meet with an accident arising

out of and in the course of his employment, shall be allowed work accident leave if

recommended by a specialist Doctor and the concerned Head of Department.

Other following leave are:

Annual Leave (Trainees)

Short Leave

Leave without pay

Sandwich Holiday

Public Holidays

Compensatory Leave

RELOCATION ALLOWANCE



PEL may relocate from time to time any employee from his/her current location to any

other region/city within Pakistan. The purpose of such transfer is focused on the

development of employee and benefits of the company. In such cases, relocation

allowance is provided by the company as per approved scheduled.

Grade Relocation Allowance

JE-E1 3,000/-

M1 8,000/-

M2- M3 10,000/-

M4 15,000/-

M5 20,000/-

M6 25,000/-

In addition to this, company shall provide a lump sum amount as a Disturbance

Allowance (1.5 Basil Salary) to the employees in all Grades.

1. Household, Personal Belonging Packing & Transportation:

Company bear the cost of removal of material and also make arrangements for

truck or container for shifting to new location.

2. Travel Cost:

Cost for employees and immediate family (spouse & Children) are reimbursed

by the company. In case of traveling by air (is applicable), employees are

rimbursed as:

Self/ Family - As per entitlement.

3. House Rent:

In case of Advance Rent/Security to get the ownership of the house,

Company provide loan to the employee (maximum of 6 month’s advance) which shall

be deducted from his/her salary in 12 equal installments.

MOTORCYCLE LOAN FOR EXECUTIVE



Junior Executive and Executive in Grade E-III and above working in

Marketing / Customer Services Divisions, where nature of job entails traveling,

are entitled to Motorcycle under the sales/ After Sales froes Scheme.

Junior Executive / Executives may be paid a special duty conveyance allowance per

month, which is announced from time to time. In case of sepration before 5 years,

Management may, in its direction, allow to purchase the motorcycle on book values plus

lease charges.

PROVIDENT FUND

All permanent employees who have completed their probation period are eligible to join

the Group’s Provident Fund. The rate of contribution is

Employee 10% of Basic Salary

Employer 10% of Basic Salary

The entire amount of Employee’s and Group’s contributions together with interest is

payable to the employees upon separation from services.

Mobile Phone Policy

Entitle of Mobile phones and their billing is allowed to employees as mentioned in the

following table.

Grade Billing Limit Rs./month

Billing limit (for sale and marketing staff

Rs./month)

Limit for Mobile Phone Set Rs.

M1-M6 1,500 to 3,000 1,600 to 3,500 8000 to 20,000

E3 to E1 1,000 1,500 Not Allowed

Sales Officer (AD) ---- 600 Not Allowed

JE & below 300 300 Not Allowed



In case of mobile set is stolen or snatched, employee (Manager) provide the FIR

to enable the company to file the insurance claim. Manager is responsible to

provide FIR.

In case of official foreign travel, managers provide with international roaming

facility and cost of official calls during foreign travel borne by the company over

the limited mentioned above.

Private International calls are not covered in the above limit and is borne by the

Manager privately.

HEALTH POLICY

Medical / Hospitalization Expenses

In PEL to assist the permanent employees and their immediate family members (spouse

and dependent children not more than 19 years old) and incase of unmarried and full time

students the limit is increase (to 23 years) to maintain their good health and pay for costs

incurred on medicines, medical services and hospitalization for themselves and their

eligible family members, the company reimburse 100% of the employee’s actual

expenses. The employees are reimbursed for the expenses on presentation of a Doctor’s

prescription and receipts.

Medical expenses (purchase of medicines) etc. for upto or less than Rs. 500 for

Mangers and Rs. 300 for Executives is exempted from presentation of Doctor’s

prescription. This applies to an individual bill (receipt).

In case, chronic diseases (heart, sugar, blood pressure etc.) doctor’s prescription

shall be required for once and not with rest of the claims for that particular

treatment, unless there is a change in medication (costing more than 500 for

Mangers and Rs. 300 for Executives) prescribed by doctor.

After every six months, employee shall be required to submit a copy of

prescription for that particular treatment.

However, in case of such prolonging diseases, IR & Admin department at times

may ask an employee submit a copy of prescription for proper record purposes.



The company make provision to cover the expenses for :

All medicated toiletries / cosmetic items e.g. tooth pastes, shampoos, creams and

soaps etc. even if prescribed by a doctor are not entertained for payment by the

company. Similarly all diet items. e.g. mega diets, slimming diets, powder milk,

etc. is not admissible in the medial bills.

For injuries as a result of actively participating in a criminal act.

For injuries or diseases sustained as a consequence of attempted suicide, self-

inflicted injuries, or employee’s own provocation.

For health examination unless made in connection with an accidental body injure

or sickness.

Executives’ level employees are restricted to purchase the medicine maximum to

15 days only.

Dental Cover

Following dental care expenses are not reimbursed.

Tooth Extraction

Scaling

Accidental Injures

Tooth Decay Treatment

Doctor Consultancy Fee

Expenses related to the following categories are not covered

Dentures

Cosmetic Surgery

Braces

Gold Fillings

Spectacles



No employee is entitled to the reimbursement of expenses incurred on the purchase of

spectacles or contact lenses. However, in case of surgical treatment of cataract, an

expense on account of lenses is allowed.

Immunization:

Employees are immunized against Typhoid, Diphtheria, whooping Cough, Tetanus and

Polio. In principle, the service is provided free by the company. Certain types of

treatment. e.g. Cosmetic Surgery are excluded from company medical scheme and

employee expected to cover himself/herself and their family under an insurance scheme

for medical cost incurred whilst traveling privately abroad.

Maternity Benefits

In PEL, on production of proper bills, receipt, birth certificates and other documentary

evidence, relating to the delivery, an employee shall be entitle to receive actual expenses

subject to the following limits:

Normal delivery cases conducted by Registered Medical Practitioners not less than

MBBS: Actual expenses subject to maximum of Rs. 10,000 excluding medicines and

epidural.

Cases of complicated deliveries requiring caesarian operation the limit is as follows:

Actual expenses of hospital in privates rooms subject to maximum room changes of

Rs. 2,000/- per day plus medicines and epidural.

The above facilities are limited to maximum of three deliveries. Diet expenses during

confinement shall not be allowed.

Hospitalization:

An employee and his/her dependents (Spouse and children) shall be entitled to

hospitalization for severe alignment, operation and accident within the following

rules.



Actual expenses of the listed hospitals in General ward or equivalent plus

medicines.

Actual expenses of hospital in private room subject to the Maximum room

charges of Rs. 2,000/- per day plus medicine.

The following hospitals Government or Private for the purpose of these rules are treated

as standard Hospitals in Lahore:

Mayo Hospital

General Hospital

Gulab Devi Hospital

Jinnah Hospital

Shalimar Hospital

Children Hospital

Fatima Memorial Hospital

Ittefaq Hospital

Lady Willington Hospital

Punjab Institute of Cardiology

Sheikh Zayed Hospital

Or Equivalent.

And employees are entitled to the reimbursement of medical expenses incurred by

him/her, provided he/she medical bills duly supported by relevant prescription(s) issued

by Registered Medical Practitioners, Registered Hakim or Homeopathic Doctor, along

with cash memo(s)/ receipts etc.



ORGANIZATION CAREER MANAGEMENTA sequence of positions held by a person during his or her lifetime.

EMPLOYEE JOB CHANGES

Job changes within the organization

Within the boundary of the organization of PEL employees are changes their

jobs according to requirements of the organization.

PROMOTION

Promotions are based on an individual’s qualifications, with emphasis on

abilities, experience and performance, subject to a vacancy in higher grade.

There is no any hard and fast rule for promotion in PEL for promotion. But

on base of performance evaluation report and according to seniority the

promotion are made both for executive and non-executive level employees.

Normally a executive is promoted after the 3 year e.g. E3 cadre employee

after 3 years is in E2 etc.

TRANSFER

As the needs of the organization change, opportunities for transfer and

promotion may be provided to qualified employees. Transfers is finalized in

writing by the company to confirm the new position department and

effective date.

Transfer involves the movement of an employee from one position to

another with the same grade level or from a one unit to another unit.

Transfer may become necessary in order to:

Meet operational requirements

Provide more effective utilization of resources

Create desirable working relationship among member of the

organization, and

Allow maximum individual development when possible.



DEMOTION

An employee may be assigned to a position with a lower level than the one

he/she is currently occupying due to any of the following reasons:

Inability to cope up with the requirements of his/her present

position (poor performance)

The current position is re-evaluated downwards because of a

change in the nature of the job or marker conditions.

But there is no any single case of demotion in PEL that an employee has

been demoted.

SEPARATION

LAYOFF

On 19 September, 2008 PEL have Severance 50 employee (including

management and non-management level) of different cadre. The reason was

right sizing of the organization. At the time of the employees services for the

period of one year were separated by given the salary of 1 month and the

employees for the last 3 years in services were separated by the salary of 2

months and the employees services for the last five years were separated by

given the salary of the 6 months with experience letter form the organization.

TERMINATION

A few Employees are also terminated form PEL on following basis.

Misconduct: An employees who misconduct with the seniors or any other

activity against the company rules and regulations. Only a few cases of

termination due to misconduct. Some of the main following acts and omission

are treated as “Misconduct” in PEL:



1. Willful insubordination or disobedience whether alone or in combination with

others to any lawful and reasonable order of the superior.

2. Theft, fraud or dishonesty in connection with employer’s business or property.

3. Taking or giving a bribe or any illegal gratification.

4. Habitual late attendance.

5. Frequent repetition of any omission.

6. willful concealment of information about individual within or outside the

company and any outside organization, which may be involved directly or

indirectly in subversive and illegal activities to damage the business interests,

property and technical or intellectual assets of he company.

Sexual Harassment: It is a Physical immoral relation of employees in

organization. No any employee in PEL has been terminated on basis of sexual

harassment. One reason for this case is that policies of the PEL is too much

strictly implemented in such a case; and second, there are a few females in

this organization.

Negligence: There are only few cases of termination in respect of negligence.

Such a cases held in manufacturing department and other sales department

further in respect of responsibilities.

In all cases of termination no contribution of Provident Fund is made.

RESIGNATION

a. Voluntary Registration: Employees who resign are expected to give their

supervisors written notice of 30 (thirty) days for executives and 60 (sixty)

days for Management Grade, before the effective date of resignations.

Failure to provide adequate written notice will result in the deduction by

the company of one/two month’s gross salary in lieu of notice.

b. Group Initiated Termination: Termination are initiated either for cause

because of acts detrimental to the interest of the company, misconduct, for



unsatisfactory performance, medical reasons, redundancy to retrenchment.

The act and omissions which shall be treated as misconduct are attached.

Incase of a Group initiated termination, a termination letter must be

prepared and presented to the employee by the appropriate Management

authority. However, no employee may be terminated without prior

approval of Managing Director & information of Head Human Resource.

And employees leaving the company must clear him of all company tools,

equipments and/or other company property and /or money in this charge

or possession and no terminating employee shall be paid any money due to

him from the company unless he has been cleared of all accountabilities.

An “Employee Final settlement Form” therefore be completed.

Re-Employment

Former employees who are re-employed (on permanent basis only) will

receive credit for prior service for services awards only. For purposes related

benefits (i.e. vacations, sick leave, provident fund etc.) it is required that those

re-employed re-establish service eligibility as a new employees.



6) LABOR MANAGEMENT RELATIONS

Mr. Sher Afzal is the Head of Industrial Relations and Administration (IR&A)

Department. All the labour related matters are handled by IR& A Department.

Labour Union

“An organization that represents workers and seeks to protect

their interests through collective bargaining.”

Hierarchy of Non-Executive Staff

S1 Supervisor 1

S2 Supervisor 2

S3 Supervisor 3

C1 Clerical 1

NG Non- Grade (Worker)

Types of Worker:

Total 4,000 workers are working in this factory and it this strength increased in

season about 1,500 workers more.

Temporary/ Seasonal Worker

Such a type of recruitment is made in February to April months in respect of order

from market and demand in season or economical effects. So PEL require more

worker than in routine work. Similarly its sales leads to enhance the profit.

Permanent Worker

After three or four year temporary worker are also done permanent on the basis of

performance. The benefits are also given only to permanent worker not to temporary.



President and General Secretary

PEL Labour is well established under a President, Umer Saleemi and General

Secretary

and Collective Bargaining Agent (CBA).

Voting for Elections: The president and general secretary is selected by the voting in

PEL.

Shift

All the employees related to manufacturing do the work in three shifts.

Working Hours

There are total working hour in one shift. If any worker does the work more than 8

hour then his time for work is considered as overtime.

Overtime

After eight hours of duty the working time period is counting as overtime and this

factory is giving equal rate wages per hour. But in some organizations overtime is

giving with continuous increased wage rate per hours.

Wage Rate

After the delectation of the Prime Minister of Pakistan on May 01, 2008 PEL has also

upgraded their wages rate for labour i.e. Rs. 6,000.

Labour Court Cases

Mr. Saeed Ahmad in IR& A Department is handing the court cases.



CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS RELATING TO PRACTICAL EXPERIENCES

HR department does not exist in some of the organizations in Pakistan. They think that

HRP is only time wasting. Its also reflects that HR department is exist only in well

established organizations as well as in growing level organization as in PEL. I have

analyzed the following main points:

Employees Relations Section

According to my theoretical study HR department a section for all the problems listening

and solving that is call employees relations section. But in PEL, HR department there is

no any Employees Relation Section by which problems of the employees can be

understand and solved. This department will increase the efficiency of the PEL and

objectives of HR are easy to achieve as well as vision statement of PEL.

Proper Compensation & Management Section

All the benefit to employees are handled in different section like in IR&A, Accounts and

HR section. But according to theoretical concepts all the benefits are handled in one

section that is called compensation and Management Section which does not exist in PEL

in HR Department. So, I recommend that a C&M section should be introduced under

umbrella of HR department.

No Policy for HR Planning

PEL has no any policy for HR operations. According to theoretical study company should

follow the following strategies to meet its vision statement of the PEL.

Human Resource Planning Strategy

Strategic planning



No Recruitment Budget

PEL has no any recruitment budget for recruitment that finance cab be controlled.

Low-grade RMS

The Human Resources is at low grade there a lot of facilities in RMS software but they

are using its completely.

No any Employees Turnover Record

PEL has no planning strategy so there is not existence of Employees Turnover record.

This organization has no proper working on employees rotation and PEL is not making

exact employees turnover in respect of Cadre, Designation (Executive, Manager)

Department, Seniority etc. where its software includes all the operations. So, HR

department must design turnover chart.

No promotion Criteria Policy

PEL has no promotional criteria by the Human Resource Department which is normally

defined in books so that promotion disputes can be settled

Compensation Section

PEL has not any proper system for compensation to employees so in HR Department

there must be a compensation management section.

Focus on Retention of Employees

Whenever there area section for compensation management in HR department then

thorough proper compensation employees are retained within the organization and

turnover chart shows less ratio of turnover employees rather than actual.

Advancement in Computerized Working

This is the era of Information Technology. The functions and procedures of the PEL

should be converted from manual to the automatic. It will enhance the performance of the

Human Resource Department and ultimately of the PEL. Human Resource Department

should allocate resources for this purpose.



CONCLUSION

During the internship, I perceived conclusion that PEL HR Department is at growing

level. Basically HR department support the other departments to solve the problems

efficiently and effectively. In PEL, Human Resource Planning is done on the basis of

objectives, not parallel to the corporate level strategy. It shows that its business is at

growing level and its share value is at average level in market.

First, in case of HRP, PEL HR Department is not working on annual basis that how

much manpower (employees) are required at right place and at right time so that

objectives of the organization can be achieved efficiently and effectively. Currently,

R&S section is working on the basis of MRF (Manpower Requisition Form)

whereas this section is responsible for annual recruitment that how much

manpower, what skills and where it is required on yearly basis but R&S section is

not working on such planning. In case of forecasting of manpower in PEL, now

HRIS (Human Resource Information System) has been introduced in software of

HRMS (Human Resource Management System) which has the record for human

resource forecasting and in future it is proved helpful. It also includes employee

personal record and RMS (Recruitment and Management System) for recruitment.

Second, in case of performance management of employees, PEL is doing well

working on its software i.e. PMDP (Performance Management and Development

Program). PM section of PEL HR department maintain all the record (internal

online) of all employees on PMDP software which also include the promotion,

increment, salary, allowances, and recommendations for brilliant performance of

employees.

Third, T&D section maintains all the training related programs in respect of PM

section and recommended & consultation of concerned HOD. On the basis of the

annual budget, T&D section train the employees internally; by senior or by hiring

the trainer, and externally; like training seminars at local, national and international

level. Only GM/HOD Cadre employees go abroad for training.

Forth, compensation and benefits related issues are solved by PM section with

consultation and help of IR&A department & Finance Department.



Fifth, IR&A Section is working for labour management related issues like wages

for employees, overtime, health and safety, union affairs, attendance of

employees, maintenance, In and out of factory transportation and other

administrative related issues.

On every Friday, HR Forum session held in which all the sections of HR department

learn a moral lessons and discussion on section to section related issues as well as

department to department, excluding other meetings of HR department.

Finally, PEL is serving as a good partner in industrial sector of Pakistan. Overall it is

considered at middle level in industrial sector after SIMENS and Dawlance and Waves.

But it doing its best efforts to meet the competitors and technologies challenges. The

main efforts are focusing on its advertisement section.



RECOMMENDATIONSAfter doing the practical analysis is shall give some most important recommendation for

PEL HR department section vise as follow:-

Policy making for HR Planning

PEL is going on its own planning i.e. MBOs, but to meet its vision statement they should

make the policies for corporate level like

Human Resource Planning Strategy

Strategic planning

Recruitment Budget

PEL must plan a budget for recruitment so that financial budget can be controlled.

Online Application Submission

There should be online submission system of the application for the vacant job

positioning on its website.

Up-gradation RMS

The Human Resources Department software should take less time in recruitment and

training the staff.

Employees Turnover Chart

PEL HR department should make the proper turnover chart so that its planning strategy

can exist for record of its employees. For proper working on employees rotation in

respect of Cadre, Designation (Executive, Manager) Department, Seniority etc. then, HR

department has the proper record for HRP.

Enhance Training Centers

More training centers should be established. If there is lack of resources, it is difficult, the

training centers of the other organizations in the same capacity can be utilized by

determining the terms and conditions.



Refreshing Courses

Refreshing courses should be adequate and more frequent during the year.

Competitive Evaluation by PMD

The proper and competitive evaluation of the methods and procedures adopted by other

competitors will enhance the performance of Human Resource Department.

Promotion Criteria Policy

The promotional criteria by the Human Resource Department should be defined and be as

per rules.

Agents for Promotion Policies

Agents for the promotion of the PEL policies and to facilitate the customers by the

Human Resource Department may be appointed with proper check and balance system.

Emphasized on Ethical Values

During the training by Human Resource Department the ethical values should be more

emphasized.

Compensation Section

PEL has not any proper system for compensation to employees so in HR Department

there must be a compensation management section.

Revision of Pay Package

Pay packages may be revised in the light of profit earned by the organization.

Focus on Retention of Employees

Whenever there area section for compensation management in HR department then

thorough proper compensation employees are retained within the organization and

turnover chart will show less ratio of turnover employees.



Strictly Implementation on HR Policies

PEL has its own Manual and HR policies but there is not proper implementation on

policies. In this regard, HR department must strict in their policies because true result can

be taken. Employees in HR department must have complete knowledge of Manual and

implementation.

One Window Operation

Human Resource Department may advice and train employees for one window operation

in order to reduce the time and conserve the resources.

Quarter-Based Meeting:

In overall company schedules are not set for meetings. Weekly, monthly and quarterly

meeting must be done to discuss the objectives of the business and achieved the target of

the organization with prescribed time period.

Education Allowance for Employees and their Children

I recommend that PEL must determined the education allowance for employees as well

for their children to retain the employees with the organization.

Support Club fro Employees

PEL should make the support club to retain the employees with the organization like

TELENOR, NESTLE etc.



REFERENCES AND SOURCES

BOOK AUTHOR NAME

Managing HR Wayne F. Cascio

Management Stephen P. Robbins, Mary Coulter

AUTHORITY STATUS

HR Concepts Mr. Waqar Khadim, Head HR, PEL

Recruitment & Selection Mr. Salman Chaudhary, Manger, (R&S) Section,

PEL

Performance Evaluation Mr. Yousuf Jamshed, AM, (PMDP) Section, PEL

Training & Deveopment Mr. Ali Kamran, AM (T&D) Section, PEL

Labour Mangement Relations Sher Afzal, Manger, (IR&A) Section, PEL

Through World Wide Web

www.pel.com.pk



ANNEXURE / APPENDICES



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(B)



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