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Final Project

Comparative analysis
Of
HR Practices

A REPORT
SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES,
VIRTUAL UNIVERSITY OF PAKISTAN
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF MASTER IN BUSINESS ADMINISTRATION

Submitted By

MC080204636

Syed Faisal Bukhari

Department of Management Sciences,


Virtual University of Pakistan
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Dedication

To My Parents

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Acknowledgment

The Almighty Allah gives the brain to all human to think what is right & wrong
and spread the knowledge of right & wrong through last Prophet Mohammed
(S.A.W.) who brought for us revelation and unlimited knowledge. So First of
all I would like to thank Almighty Allah to provide us knowledge.

I am thankful to my parents for their un-dying love & support. I am also


thankful to my cousin Mr. Syed Amir Turab (Manager Finance, Power Division
PEL), My Uncles Mr. Anwar Shamim (Manager Production Orient Group) and
Mr. Ejaz Khan (owner of Home appliances agency) to provide me such
opportunity to visit all the three groups.

It will be a great injustice if I do not pay. My regards to Mr. Salman Chaudhry


(Manger HR), Mr. Hassan Raza (HR Executive) of Pak Elektron Limited & Mr.
Arslan (Manager HR), Mr. Kashif (HR Executive) of Orient Group of
Companies and Mr. Masood Abbas(Manager Production) Of Cool Industries.
Who really support me and provide all the respective information of
organization and HR setup. Their cooperation made possible for me to enhance
my learning and get knowledge about my project.

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Executive Summary
HR Practices are the activities which a HR department follow to perform their duties
efficiently and effectively. In simple words these practices are the parameters which used
to check the effectiveness of HR department. These practices cover all the key elements
which help to fulfill the organization goals in shape of providing all the manpower
resources, strictly checking about to follow rules and regulations and arrange better
working atmosphere.
In this project I have to check the effectiveness of HR department. The better way to
check the effectiveness of HR department is to check the number of HR practices which
a company follow or work on it. So I choose the electronic sector where I prefer PEL,
Orient group and Cool industries to check the effectiveness of HR department in these
three largest groups. For the fulfillment of this objective I conduct personal, telephonic
and e-mail interviews and personally visit the companies to check the overall setup,
working atmosphere and to get the companies information during my visit. I also have
some observation which I include in the summarizing process. To get the topic related
information and information about company I concern books and annual reports.
After getting all the information I find out that all three companies have HR department
but PEL overall ranked as number one in shape to follow most of the HR practices. Only
the PEL is the company where proper planning is taken for new hiring and comparatively
their overall selection criteria is very strong and HR department always looks forward to
resolve the employees issues. Orient is at number second where the HR department goes
toward development but till now the practices which they follow are not sufficient and
HR is not performing the action which is the liability of HR department due to the un
authorization of HR. Cool industries is at number three because the HR department is
also under development but till now they did not work on the proper implementation of
HR practices. The HR department in cool industries did not have proper authorities.
With reference to my finding I recommend that the all three companies must give full
authorities to HR department for working in their own areas. I want to suggest that there
must be a proper planning for new hiring which take place under the HR and finance
department to check the financial effect on the company. There is also a requirement of
proper structuring of HR department in these companies.

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Table of contents

Acknowledgement
Executive Summary
Chapter 1 Introduction ……………………………………Page # 08
1.1 Background …………………………………...Page # 11
1.2 Electronic …………………………...………...Page # 12
1.2.1 Areas of Electronic industry …..………...Page # 12
1.3 Introduction of the organization ………….…...Page # 13
1.3.1 Introduction of PEL ……………………..Page # 13
1.3.2 Introduction of OGC ………………….....Page # 26
1.3.3 Introduction of Cool Industries ……….....Page # 39
1.4 List of competitors ………………………….....Page # 46
1.4.1 Market Share ……………………...……..Page # 46
1.5 Objectives ………………………...…………....Page # 47
1.6 Significance …………………………………....Page # 48
Chapter 2 Data processing, analysis & interpretation …..…Page # 49
2.1 Data collection Sources …..……………….…...Page # 49
2.2 Data collection Tools ………..……...………....Page # 50
2.3 Participants ………………………….………....Page # 51
2.4 Data processing, analysis & interpretation…......Page # 51
2.4.1 HR Practices in PEL ……………..……....Page # 51
2.4.2 HR Practices in OGC ………………..…...Page # 55
2.4.3 HR Practices in Cool industries ……..…...Page # 57
2.5 Summary ………………………..…...………....Page # 71
Chapter 3 Conclusion, Recommendation & Limitation …...Page # 73
3.1 Conclusion …..………………………………....Page # 73
3.2 Recommendation ………..……...…...…….…...Page # 74
3.3 Limitation ………………..………….…….…...Page # 76

Section II ……………………………………………..…….Page #
77
Appendix ………………………………………………..….Page #
78

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List of Illustrations

Figure1.1………………………………………………………..15
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Figure1.36………………………………………………………..40
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Figure2.10………………………………………………………..63
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Figure2.23………………………………………………………..70
Figure2.24………………………………………………………..70

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Section 1

Chapter 1: Introduction

HR Practice focus on the effectiveness of human resource program to check that how
many practice are adopted/implemented by the company and compare these
implementing practice with other competition company or sector. Followings are the
parameters or heads to check the effectiveness of HR program. If HR department follow
or work on all of these heads then it will be referred as more effective.

Human Resource Planning


HRP is the process who systematically reviewing human resource requirement to ensure
that the required number of employees is available with the required skills & knowledge.
There are two components of HRP requirement and availability. Forecasting HR
requirement involves the determination of total number & type of employees needed with
required skill level & location for forecasting availability the human resource manager
looks to both sources i.e. internal & external. After analyzing of requirement &
availability the firm can determine whether it will have a surplus or shortage of
employees. If the result will be surplus then HR have to found the ways to reduce the
number of employees & if the result will be in shape of shortfall then the HR must obtain
the proper quantity and quality of workers from outside source.

Recruitment & Selection


Recruitment is the process of finding and attracting capable applicants for employment.
In simple words, recruitment is the activity which links the employer’s and the job
seeker. Recruitment may be planned, anticipated or unexpected through internal and
external sources. Internal sources includes transfer of employees from one department to
other, through promotion to filling the job requirement etc. and external factor includes
through advertisement, educational institution etc.

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And selection is a process to choose an individual from a pool of applicants. It involves a


judgment about the fitting of applicants on the required post through skill, knowledge &
experience. Selection process includes preliminary interview, selection tests, employment
interview, and reference checking & selection decision.

Induction and orientation


Induction is the process of receiving and welcoming an employee when he first joins the
company and giving him basic information he required to settle down quickly & happily
start work.

And orientation is given to make new employees to feel at home in the new environment
orientation program includes the information about daily routine works, organization
profile & importance of job to the organization. Orientation may be formal, informal,
individual or group.

Training and Development


Training and development is the process to improve employee’s performance by
increasing an employee’s ability to perform through learning. So training is a process of
changing the behavior, knowledge & attitudes. The need of training and development is
determined by the employee’s performance deficiency. There is a need of Training and
development if standard performance will be more than the actual performance.
Development means those learning opportunities designed to help employee’s to grow.

Performance Appraisal
Performance appraisal is a system of reviewing and evaluating an individual or team’s
job performance. In performance appraisal system performance standard are to be set and
check the performance of individual or team according to these standard. Appraisal’s
objective is to make decision after evaluation & other is to assess the source for training
and development so the primary goal of appraisal system may be to improve performance
of employee’s. In appraisal system employee’s attitude, appearance, behaviors, task
outcomes & potential of improvement is to be check.

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Compensation & Benefits


Compensation is the monetary benefit which given to the employee’s in exchange of
their work which they performed. Compensation helps an employee to work with the
organization at the maximum satisfaction level. Compensation may be direct, indirect
and non-financial. Direct compensation includes wages, salaries, bonuses & commissions
and all rewards. Without direct compensation is indirect compensation. And non
financial compensation is the satisfaction about job it may be psychological and physical
environmental.

Benefits is indirect type of compensation benefits are not the payments in financial term
but indirect financial compensation, it includes social security, old age benefits, life
insurance, leaves encashment, provident fund & health care benefits etc. These benefits
are helpful to satisfy an employee which increases the performance.

Safety & Health


Safety means the protection of employees from injuries in office working hours to
perform their duties. Health means the freedom of employees from illness. The goal of
safety and health programs is to establish a safe work environment. Safety programs are
designed to get the purpose in two ways. First is physical and second is psychological
condition. Physical condition includes the diseases and accidents at workplace and
psychological conditions are in shape of dissatisfaction and refer as a low quality of
working life. Organization can get the more profits in shape of increased productivity;
reduce medical and insurance costs if it follow/adopt safety and health program.

Relations
Relation in an organization is concerned with maintaining employee’s relationship with
employer. This helps or contributes towards satisfactory productivity, motivation and
morale. Employee’s relations are necessary to resolve the problems about the individuals
or groups who effect work situations. In employees relations all the discipline and
regulatory information provided to check the performance at workplace. Communication
is the glue that makes policies real. The fact is that the communication is a two way

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process which involve the simple instructions or suggestions. In workplace the


employee’s relations must be strong to check the feedback and the efficiency level.

This research is needed to check out the performance of Human Resource of all three
companies Pak Elektron, Orient Group of Companies and Cool industries. The basic
purpose is to check that how much these companies fulfill the HR Practice even though
these are the most leading companies in home appliances but I want to identify the most
suitable company about HR Practice and I will mark a 1st grade to it in HR sense who
will be most suitable. In Pakistan there are a large number of familiar groups who have
identification in large scale and their sales are also very high side, but behind all of these
familiarities a highly motivated workforce required. A company can satisfy their
workforce to follow some practices. These practices are helpful to maximize the
employee’s productivity. These practices are terms as HR practice in Human Resource.
And my project is also all about these practices which help me to identifying most
suitable company about HR.

1.1 Background
HR department match an organizations needs with skills and abilities of employee’s. For
the fulfillment of this purpose HR department follow some tasks which is known as the
HR Practices. By following these practices HR helps the organization to achieving
respective goals. In other words you can say that if you want to check the efficiency and
effectiveness of HR department then you must have to check that either HR perform all
the practices or not. If it perform well then the organization having better HR department
Because now a days every public and private sector organizations having a HR
department for better finding, utilization of manpower and to improving the satisfaction
of employees but these organization did not implement all the HR practices that’s why
they did not get the required result. In some organization HR department is responsible to
only conduct the interview without any planning and feasibility report.

I choose three major companies (PEL, Orient, and Cool Industries) in the same field
which are in direct competition. I choose these companies because everybody use their
products and much loyal with the brand name but I want to check that are they conscious

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about their employee’s to solve their problems and keep them satisfied. These are all
happened if there will be a department who check the efficiency and satisfaction level of
employee’s. To check and verify that are three companies having HR department or not
and how much level of working they perform to increase the efficiency of employees. I
visit all three companies and take interviews from HR representative and workers also
and then compile all the information and give suggestions how they can improve the
efficiency level of HR department.

1.2 Electronic

Electronics industry is the business of producing, designing and selling devices such as
television, transistors, Air Condition, Refrigerator and Deep Freezer etc. Electronic
industry is also called electronic equipment industry.

1.2.1 Areas of Electronic industry


Electronics devices are used in every field / sector of modern economy following of the
areas of electronic industry.

 Consumer Electronic
 Laser and Optical electronic
 Digital electronic
 Microwave electronic

With the spending of time now the people mostly use the electronics items for their house
hold that’s why the overall demand is rapidly increasing to time and most of the
companies performing different researches to find out the new technology to make their
products as more suitable.

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1.3 Introduction of the organizations

1.3.1 Introduction of PEL


Company Background

PAK ELEKTRON LIMTIED was set up in 1956 as a joint venture with one of the largest
and renowned manufactures of electrical equipment M/S. AGE of West Germany or
manufacturing transformers, switchgears and electric motors etc. The entire job of
machinery requirements and layout of the factory building was planned and implemented
by AEG who produced very well balanced facility for the design and manufacture of the
above equipment and the commercial production was commenced on 22 November 1956.

Up to 1962, when AEG finally phased out, AEG personal carried out the designing and
manufacturing of all equipment jointly. PEL staff, in the meantime had received
specialized training in USA and West Germany, which enabled PEL to establish it as the
leading manufactures of electric equipment in the country with an excellent reputation for
high quality, and thus PEL came to be know “THE QUALITY CONSCIOUS
COMPANY".

After conclusion of agreement with AEG, the then sponsors purchased Malik Brothers
total share holding of AEG. The production continued with AEG designs with much
greater emphasis on the quality and the reliability of products, which earned unique
distinction of supplying electrical equipment to projects of paramount national
importance like Mangla Dam and Tarbela Dam projects. PEL equipment was approved
by consultants of international repute including Preece Cardew & Rider (England),
Binnie & Pratners (England), Harza Engineering international (USA) and Miner & Miner
international Inc. (USA).

Transfer of Ownership

The majority shares ware acquired from Malik Brothers by Saigol Group on 11 October
1978 and immediately on take over the new management chalked out both long term and
short term plans to put the company back on the path of progress. As a part of first phase

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of its BMR programmed the new management injected the additional working capital of
Rupees 8.98 million and Bridge Loan of Rupees 7.50 million (against the public issue of
the its shares) was provided by the ICP led consortium. As a part of long term plans, the
manufacturing of window type air conditioners was taken up in 1981 and was
immediately established for quality.

The company launched the second phase of its BMR and expansion of the existing
product line in the year 1987 and imported machinery for the manufacture of
refrigerators and Deep-Freezers for a total value of Rupees 22.11 million. For these
projects National Bank of Pakistan the leading bank of the company provided the
financing. Like Air conditioners these products have also been well received by the local
market, which speak highly of the confidence, the consumer has developed in the quality
products manufactured by the company.

During the year 1990 the company has signed an agreement with Messrs HITACHI of
Japan for the manufacture of Vacuum Circuit Breakers.

The company has entered in to an agreement with Pakistan Industrial Credit and
investment Corporation (PICIC) for a foreign currency as well as local currency loan of
Rupees 25 million for the expansion, balancing, modernization and replacement of the
existing plant. The machinery has come into operation in October 1991 and with the
balancing, modernization and replacement of machinery, the production capacity of
Refrigerators Section will reach a level of 252,450 cubic feet.

The management of the company decided to further expand its operation by establishing
a plant for the manufacture of compressors for refrigerators and deep freezers. The
technical know-how agreement has been signed with M/S NECCHI Compressor, Italy for
the assembly and progressive manufacturing of compressors for refrigerators and deep
freezers.

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Pak Elektron Limited is known for its continuous research and development and transfer
of technology from abroad. The company commissioned its plants for the manufacture of
electricity Meters in Pakistan in June 1994 with the technical collaboration and under
license from M/S Asea Brown Boveri United State of America (A.B.B.USA). The plant
consist of the most modern and latest numerically controlled electronic machine (CNC)
with robotics technology and is capable to produce 960,000 single phase electricity
meters per annum in accordance with international standards and specifications using the
latest and most modern techniques available in the world.

Company Slogan:-

Figure 1.1

Location and Facilities:-

The project is situated at 14-K.m. Ferozepur Road, Lahore and is spread over an area of
242 kanals and 15 marlas of leasehold land in industrial area of Kot Lakhpat, Lahore, and
presently the total covered area comes to 232,883 square feet. Factory is located on the
main road where public transport is available round the clock helping in easy access to
the labor and customers.
Tel: (042) 35718274-5 Fax: (042) 35715105
Website address:
www.pel.com.pk

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Hierarchy of PEL

GM Finance

GM
Manufacturing
(PD)

Head of Quality
Assurance AD
GM Marketing
(PD)

Head of Internal
Chairman GM Audit
Manufacturing
(AD)

Managing Head of HR
Director GM Marketing
(AD)

Head of Quality
Assurance PD
GM Carrier

GM Projects
(PD)

Figure 1.2

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HR Structure of PEL

GM HR

Manager
(R&S / Performance AM HR
Operation HR

HR Executive
HR Executive Sr. HR Executive

HR Executive
HR Executive

HR Executive
Figure 1.3

HR Vision

To achieve Excellence through Innovative HR Practices and continuously exceeding our


People Expectations

HR Mission

 To Manage Talent and build capabilities of our people thus enabling them to
deliver Sustained Performance
 To facilities them in creating a Collaborative Work Environment that develops a
culture of continuous learning

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HR Thrust

We MAKE individuals “Better Professionals”


We BELIEVE in “Trust & Respect”
We ENCOURAGE “Change & Sharing of Ideas”
We AVIOD “Organizational Barriers”
We DEMONSTRATE “Commitment & Enthusiasm”
We REWARD “High Performance”
We ENHANCE “Innovation & Creativity”

Power Division:-

Power business has the highest growth potential for PEL within and outside geographical
boundaries of the country. Demand for our products continued to grow mainly owing to
need for strengthening power supply network and village electrification. We are pleased
to report that company achieved its budgeted sales for the year in this division. With
continuity in Government’s plan for energy sector coupled with demand from WAPDA,
we are confident of achieving the same level of growth in future which we have been
witnessing for the last few years. With more diversification in this division achieved
through production of Power Transformers and construction of Grid Stations on turnkey
basis, we now have more flexibility to our already diversified range of products in this
division.

As mentioned in our quarterly reviews, Company entered into a new business segment in
Power division i.e. manufacture of power Transformers and construction of Grid stations
on turnkey basis and has successfully delivered first of its products in this area in the
current year. Successful delivery of these projects provides good grounds to hope that
these products will become an important source of revenue for the company in the
coming years.

Business in private sector also grew significantly primarily due to growing economic
activity resulting into more demand for our products with the growing business
opportunities, your company is well positioned to take advantage of this anticipated

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growth through cost effectiveness, technological advancements in design and human


resource development.

Appliances Division:-

Appliance business is growing fast in volumes and barrier to entry in this business is not
very high, consequently a number of new entrants representing foreign products and
brands are entering this area. This has resulted in challenges to maintain and increase
market shares and squeezing margins.

Our efforts in this business are concentrated on product diversification in order to


maximize utilization of our sales and services infrastructure, aggressive marketing
campaigns, effective sales and credit policies and a number of other measures. Bringing
production efficiencies, product innovation, process improvement are the areas where the
company has been continuously investing. Human excellence plays an important role in
development of skills in order to fully utilize the investments made. The company has
always focused on specific training programs for its human resources.

In appliances division, we achieved our objectives of implementation of new sales


strategy by bringing uniformity in pricing, reduction in market credit and widening of
dealers network under the umbrella of aggressive marketing campaigns. Company now is
well set to take advantage of this new sales strategy in the coming years.

As a policy of widening the range of its products in appliances division which is intended
to provide a complete range of home appliances to its customers, Company added Mini
Refrigerators, Diesel Generators and Geysers in its range and all of these products were
well received in the market. In continuation of this policy, Company is not only planning
to add new models to its existing range but make addition of new products.

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PAK ELEKTRON
LIMITED

POWER APPLIANCES
DIVISION DIVISION

Power Transformer Refrigerators

Transformer Air Conditioners

Dry Transformer Microwave Oven

Switchgears Water Dispenser

Energy Meters Generators

Figure 1.4

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Power Division

Power Transformer

Power transformer division is established by PEL in 2005. PEL produced these kinds of
transformers 31/40MVA, 20/26MVA, and 10/13MVA for ratings up to 132 KV. And
PEL is also exporting these transformers. PEL power transformers are equipped with best
transformer accessories as per international standard.

Figure 1.5

Transformer

PEL also produced distribution transformers with voltage up to 33 kV and ratings up to


30 MVA. PEL also manufacture transformers with foil winding. which helps in size
reduction.

Figure 1.6

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Dry Transformer

PEL is using main two manufacturing techniques for dry type transformers, Cast Resin
and Vacuum Pressure Impregnated (VPI). Dry transformer helps in shape of Enhanced
Safety, Reduced Losses, and Nominal Maintenance etc.

Figure 1.7
Switchgears

PEL is producing MV and LV Switchgear for indoor and outdoor installations. The
switchgear complying with the latest international standards and regulations i.e. BSS,
VIDE or IEC. PEL switchboards are steel sheet fabricated, floor mounting and dust
proof. These are supplied with factory fitted relevant components.

LV MV
Figure 1.8

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Energy Meters

PEL manufacture different kinds of energy meters which includes single phase, poly
phase, three phase and digital meters. Single phase meters are produced for house hold
and small commercial consumers but poly phase meters are produced for industrial
consumers. PEL energy meters have long term stability and high reliability.

Figure 1.9

Appliances Division

Refrigerators

PEL is manufacturing refrigerator with the help of the state-of-the-art manufacturing. All
the manufacturing is done at the PEL with Perfection and strict quality. PEL
Refrigerators are available in these kinds of series like Expression, Primer, 6 Series,
Deluxe, Smart Series and Mini Series.

Figure 1.10

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Air Conditioners

PEL especially designed and Produce Air Conditioners for Pakistani market which is a
technologically advanced model.

Figure 1.11

Microwave Oven

PEL Microwave Ovens are available in different type of models and sizes like Silver line
ovens (PMO 1042, PMO 9036, PMO 9025, and PMO 8021) and Microwave ovens (PMO
1052, PMO 36, PMO 23T, PMO 23M and PMO 20M).

Figure 1.12
Water Dispenser

PEL Manufacture water dispenser in two stylish shapes which names are sliver line and
Life Stream.

Figure 1.13

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Generators

PEL produced two types of generator first one for domestic level and second for
commercial level. In domestic generator sections PEL produced different types of model
like Portable 5.2 KVA Generator (Stand by), Portable 3.3 KVA Generators (Stand by),
Portable 2.5 KVA Generators (Stand by) and Portable 1.1 KVA Generators (Stand by).

Figure 1.14

Washing Machine

PEL introduced Japanese technology in producing washing machine. This have100% rust
proof plastic body with a big multi pilaster. PEL produced two models of washing
machine including magic clean pwm-512 and pwm-7700.

Figure 1.15

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1.3.2 Introduction of OGC

Beginning of OGC

Orient Group of company started his business with the name of Orient Color Labs in
Pakistan Since 1957. The name of the founder is Mian Muhammad Fazal.

Growth of OGC

Mian Muhammad Fazal promoted his business with honesty, trustfulness, hardworking,
Excellent Services and business ethics. At a result company lunched import division in
1975. The orient Group imported the following brands i.e. Mitsubishi, Yashica, Osram,
Sanyo and Yanmar from America, Japan, Germany, Italy and European companies. In
1983, Orient promoted as a private limited company and extended the network of mini
color labs throughout in Pakistan. In 1985 Orient Group launched marketing operation of
consumer products and electronic equipments. In these activities company gained a
positive response from consumer.

Extension in imports Sector Company converted as M/S Orient Enterprises in 1988.


Presently Group Has sub companies.

1- Orient Color Labs (Pvt.) Ltd


2- Orient Enterprises
3- Orient Photos
4- Orient Electronic

Orient Group of Companies holds second and fourth position in electronic distributors
and photo-finishing, Photographic, Photo optics, audiovisual business respectively.

Business Fields

Presently business concerns of orient Group of companies include three major industries:

1- Photographic Industry
2- Electronics and Home Appliance Industry

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3- Lighting Industry

Firdous Fazil Welfare Trust

Orient Group of companies has established Firdous Fazil Welfare Trust. Under this
welfare trust is the establishment of Firdous Fazil Free Dispensary. In this dispensary,
employees are freely treated. And establish Firdous Fazil Jamia Masjid equipped with
state of the art facilities.

Company Slogan

Figure 1.16

Location and Facilities

Head Office: 26-Km Multan Road, Lahore. UAN: (042) 111-111-660


Fax: (042) 37543571, 37543574
Website address:
www.ogc.com.pk

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Hierarchy of Orient

Sales Manager

HR Manager

Production
Manager
Managing
Chairman Director
Maintenances
Manager

Accounts
Manager

Q.C Manager

Figure 1.17

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HR Structure of PEL

Manager HR

HR Executive HR Executive

HR Officer
HR Officer

HR Officer

Figure 1.18

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ORIENT GROUP
OF COMPANIES

HOME
ENERGY APPLIANCES PHOTOGRAPHY

Mitsubishi
(Gasoline Engine SAMSUNG
Generators) (Digital Series)
MITSUBISHI ORIENT

YASHICA
Orient Energy (Digital/Analog
Savers Series)
Air Conditioner Microwave Oven

Orient Diesel
Generators
Refrigerator
Fan

Yanmar Diesel
Generator
Refrigerator Vacuum Cleaner

Air Conditioner

Washing Machine

Water Dispenser

Figure 1.19 31
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ENERGY

Mitsubishi (Gasoline Engine Generators)

In Generator Gasoline Section, They manufacture two kinds of generators i.e. Electric
starter and Recoil starter. These generators are engineered to run 24/7 with optimal
performance delivering a reliable and dependable back-up power.

Figure 1.20

Orient Energy Savers

Orient Manufacture Four kinds of energy savers named as Crown Glow, Mini Glow
(9w), Spiral Glow and Super Deluxe. Orient offers this unique Electric Control Gear to
light your life for a longer period of time.

Figure 1.21

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Orient Diesel Generators

Orient manufacture diesel generator (5.2 KVA) in his diesel generator sections. It is a
fuel efficient generator light up your world with its reliable power and performance
coupled. This is reliable for his back up system for continuing hours of use anytime you
want.

Figure 1.22

Yanmar Diesel Generator

Orient import yanmar diesel generator and marketed in Pakistan. Portable Diesel
Generator - Super Durability, Low Vibration, Quiet Running; Standard with Recoil &
Electric Starting; Open Frame Type.

Figure 1.23

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Home Appliances

MITSUBISHI

Air Conditioner

Orient group manufacture these four types of Mitsubishi air conditioner. These are count
to be a most popular and reliable in air conditioner sector in Pakistan.

Cassette Type MCF Type

Floor-Standing Type Wall Mounted Type

Figure 1.24

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Fan

Two types of Fan (Pedestal, table) are produced in Orient Group under Mitsubishi brand
name. These are available in different sizes with a much higher fan speed and long
lasting life span, as well as saving up to 20% of power consumption.

Pedestal Fan Figure 1.25 Table Fan

Refrigerator

In Mitsubishi refrigerator section orient produced different types of refrigerator with


different sizes. i.e. MR-F30T (No Frost) 238 Liters, MR-F42T (No Frost) 344 Liters,
MR-F51T (No Frost) 418 Liters and MR-F62T (No Frost) 504 Liters.

Figure 1.26

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ORIENT

Microwave Oven

Two kinds of microwave oven series (Deluxe Series and Micro Chef Series)
manufactured in orient, these are available in different model and sizes.

Figure 1.27

Refrigerator

Refrigerators are also manufactured in orient, which are available in these kinds of series
like Cromatic Series, ICE Pearl Series, Invouge Series, Single Door Series, Upright series
and Upright showcase.

Figure 1.28

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Vacuum Cleaner

Orient especially designed stylish Orient Vacuum Cleaners offer for a convenient way of
cleaning, to suit every own lifestyle. Available in Dry and Wet & Dry models

Figure 1.29

Air Conditioner

Orient Air-conditioner, with the help of state-of-the-art manufacturing technology. Orient


AC’s leaves you with a feel of softness and freshness in the air. Also available in
Cassette Type, Floor Standing Type and Wall Mounted Type

Figure 1.30

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Washing Machine

Fully Automatic and Semi Automatic Models are available in washing machine sector of
orient. Orient washing machine with high performance and simple technology makes the
washing experience easier and more convenient.

Figure 1.31

Water Dispenser

Orient water dispensers are available in three attractive colors, these are specially
designed to resist ultra violet rays and offer a noiseless and efficient cooling function.

Figure 1.32

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Photography

SAMSUNG (Digital Series)

In digital series there are different kinds of models available with different specification
detail are I8 (8.2 Mega Pixels), L100 (8.2 Mega Pixels), L200 (10.2 Mega Pixels), NV 24
HD (10.2 Mega Pixels), which are marketed by Orient Group of companies.

Figure 1.33

YASHICA (Digital/Analog Series)

Two series of Yashica Analog and Digital camera are marketed by orient group of
companies in Pakistan, which are further having some models like Analog (EZ Junior
and MF-2 Super) and Digital (EZ F1230(12 Mega Pixels), EZ F8035(8 Mega Pixels), EZ
Z8032(8.2 Mega Pixels), EZ 5012(5 Mega Pixels), EZ 6031(6 Mega Pixels), EZ
7032(7.1 Mega Pixels), EZ F5 ZOOM (5 Mega Pixels) and EZ TP-5(5 Mega Pixels).

Analog Series Figure 1.34 Digital Series

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1.3.3 Introduction of Cool Industries

Cool industries established in 1973 and introduce itself as a home appliances company in
Pakistan. In the short period of time cool industry become popular in this field and the
people demanded their products due to their best quality. Waves are also exporting its
products to Middle East and central Asian states including Afghanistan. Cool industry is
fully committed to protecting the environment and World Bank gives the substantial
award to Phase out Ozone Depleting Substances (ODS). Cool industry is an ISO9001
certified company who follow the entire internal standard. Cool industry has a
comprehensive network of dealers and service centers through out the country which are
fully geared up to meet all customers’ needs.

Company Slogan:-

Figure 1.35

Location and Facilities:-

Head Office: 9 Kilometers, Hanjarwal, Multan Road, Lahore. UAN: +92-42-111313233


Fax: +92-42-35420442
Website address:
www.waves.net.pk

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Hierarchy of Cool industries

Sales Manager

Maintenance
Manager

Executive Quality
Chief Executive Director Manager

Production
Manager

HR Manager
Figure 1.36

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HR Structure of Cool Industries

Manager HR

HR Executive

HR Officer

HR Officer

Figure 1.37

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Cool Industries

Deep Freezers Refrigerators

Visi Cooler Microwave Ovens

Sandwich Makers
Washing Machines

Blenders Toasters

Iron

Figure 1.38

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Deep Freezers

Waves manufacture the deep freezers science 1973. Wave’s freezers have excellent
reputation in Pakistan covering 90% of demand. Wave’s freezers are available in
different models like normal door, glass door, glass sliding door, triplet, cool bank and up
right.

Figure 1.39
Refrigerators

Waves introduced Refrigerators Industry first time in Pakistan and also new concept in
shape of cool bank. Wave’s refrigerators include direct cool series, cool bank and Ice
magic series with different models.

Figure 1.40

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Visi Cooler

Waves manufacture visi coolers for commercial consumer with different models like
WV-450, WV-500, WV-600, WV-500 DD and WUV-213. These models are also
available in different colors.

Figure 1.41

Microwave Ovens

Waves also deal in kitchen appliances including microwave ovens. These are available in
different series like with grill and without grill with stylish color and different models
which includes WMO-926-GBB-G, WMO-926-GBH-G, and WMO-936-GTD-G etc.

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Figure 1.42

Washing Machines

Waves also deals in washing machines with different models which includes (w-
wm680B), and (w-wm690BD) etc.

Figure 1.43

Sandwich Makers, Iron, Toasters and Blenders

Waves also manufacture different items of home appliances like sandwich maker, iron,
toaster and blenders.

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Figure 1.44

1.4 List of competitors

Following are the companies which having the competition with each other.

1- PEL
2- Orient Group of Companies
3- Cool Industries (Waves)
4- Haier
5- Dawlance
6- Others (I.e. Philips, Black & Decker, Sonashi)

1.4.1 Market Share

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Others
PEL
17%
22%

Dawlance
20% OGC
16%

Haier Waves
14% 11%

Figure 1.45

1.5 Objectives

The main objective of the project is to check the effectiveness of HR department of all
three chosen companies. In this process of identifying most effective company I choose
PEL, Orient and cool industries because all of these companies capture maximum market
potential due to their supply in the market but I want to check the efficiency of HR
department in these companies.

To check this I have prepared a questionnaire on all HR practice. Hr practices are the key
points on which HR department work and follow. The basic objective of questionnaire is
to get information about HR and find out that how many practices they follow. For this
purpose I choose sample from each department which is access able for me which

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includes Managers, Executives and workers also. I also take the interview to check the
actual feeling about HR in the mind of employees and the most important questions about
HR practices. After taking interviews and completion of fulfilling questionnaire I have to
summarize all the data. For summarizing process I work on excel sheet which is quite
easy for me to formatted. I enter all the raw data of questionnaire with respect to person
name, designation, organization and their answers. After completion of computer entry I
have to analyze. In analyze process I count how many employees give answer in Yes or
favorable of HR department and how many give negative views. This process repeat all
the three companies information after analysis I give points on each positive views about
HR practices and indicate the one company which is most suitable in reference to follow
the HR practices. So it was my project object which I have finalized.

1.6 Significance

The importance of this project is to check or review the Hr practices which I till now only
study in HR books during MBA but in this project I have a chance to enhance my
proficiency in practical level. It helps me that the organizations follow the proper HR
practices or these practices are only discussed/study in the chapters of books. In the
process of getting information it is most important for me to getting information in shape
of interviews with the most experienced persons. Which answers will be in shape of
sharing ideas, suggestions or in process activities which helps me to compile the overall
views about the HR activities which done by organizations.

An effective Hr practices report includes all the practices which a company done and
compare all of these practices with the standard way to following. In this it is also count

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the overall practices which organizations follow. The importance of this project is also in
shape of reviewing the HR Practices in such a big and popular organization including
PEL, Orient and cool industries. At the last of my project the importance chapters are
conclusions and recommendation. Recommended section is prepared after reviewing and
analysis of all the data taken from company’s representatives. The suggested ideas might
be in shape of change the policies and procedures of company which become hurdle in
the process of implementing HR Practices and if overall practices are not done properly
then there are a need to design the training programs to get knowledge and information
about HR practices.

Chapter 2: Data Processing, analysis & interpretation

2.1 Data Collection Sources

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Primary Data

Communication Observation

Interview Personal Visit

Personal Telephonic E-Mail

Figure 2.1

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Secondary Data

Internal External

HR Policies HR Books
Questionnaire Annual Reports
Conduct Interviews
Companies Profile

Figure 2.2

2.2 Data Collection Tools

I use questionnaires, structured interviews and personal observations get during visit. A
particular or set of tools are required for data collection because we did not get the
required results in this absence. For example in my project I want to check that which
company is best one to follow proper HR Practices from three companies. For this
purpose I must have one or more tool to check these practices other wise I set different
parameters for all three companies which goes toward failing of the project.

Yes it is possible to use multiple tools. I also use multiple tools for data collected because
firstly I set a questionnaire to get the most highlighted information but some questions
are relates with this questionnaire, to get the answers of these questions I also conduct the
interviews and thirdly I have some points in my mind which I observe during my visit of
these companies so I also want to add my own observation to made project fruitful, so we
can use multiple tools to get the better information for accurate results.

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2.3 Participants

Target Population Qty.

Sr. Managers & Managers 40

Executive / Officer 60

Labor Having 1 Year & Less experience 40


Having less than 3 & more than 1 year 60
Having 3 years & above 100

Sampling Frame

Qty.

Sr. Managers & Managers 23

Executive / Officer 42

Labor Having 1 Year & Less experience 17


Having less than 3 & more than 1 year 24
Having 3 years & above 44

2.4 Data Processing, Analysis and Interpretation

2.4.1 HR Practices in PEL


Planning:-
HR has a proper planning of manpower requirement in PEL. For that purpose HR
department work with all the HOD / Mangers of departments. They plan what are the
new projects which are to be started in a particular year or month or how much increase
is required in production of products. To fulfill the plan managers and HOD give the

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manpower requirement i.e. (workers, Executive, Team leader etc) HR department check
all these requirements and set the salary structure of these requirements according to skill
and post. Total expected salary packages discussed with Finance department who gives
approval for that, this approval might be less then the required total expected salaries
because there may be a finance problem in such period. So HR department review its
planning and once again made a new structure which is feasible for finance department.

Recruitment & Selection:-


HR department of PEL use the internal and external sources for recruitment process.
Internally they upgrade or promote some body to fulfill the requirement and externally
they conduct different job fairs in famous colleges and university (i.e. LUMS, Superior
etc). If they required experiences and skilled workers then they use paper media for this
process. If they did not have the required result then they take help from different job
consultants. (i.e. Rozee.pk, Mustakbil.com, Nukri.com.) After receiving of all the CV’s
HR department accepts those CV’s who fulfill the criteria of job requirement and reject
those who did not.
After the acceptance of CV’s these candidates are called for psychological and
personality test. After passing of these tests an initial interview is made by HR executive
who check and match the efficiency and effectiveness level which required post demand.
After initial interview HR executive recommend the selected candidates for panel
interview. Panel interview consist of three persons (HR Executive, HR Manager, HOD).
After that HOD and Manager give their recommendations to General Manager, who
select the candidates on the recommendations after the approval of G.M. Appointment
letter is to be issued in favor of selected candidates.

Induction and orientation:-


HR department conduct proper introduction and orientation program with the help of
respective department for new hired employees. In first step HR officer gives the brief
introduction of company rules and regulation and policies regarding different matters. He
also explain the overall hierarchy of department where they worked and after that the
respective department head or supervisor give the background history of their

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department, working environment, reporting function and detailed job descriptions. For
skilled workers a descriptive visit made of department to check / observe the instruments
they use. HR department also distribute the policies handouts to all new employees.

Training and Development:-


There is formal training secession for skilled and as well as unskilled workers. This is
conducting by HR department. PEL appointed all the fresh employees as a “Management
Trainee Officers” and give three month training of those employee according to job
requirements and all the skilled or experienced persons are appointed and judge their
skills in check period if a managers of department observe that there is any need to
improve their skills then they give suggestion to HR department who conduct training
session according to department requirement.
HR department also conduct special training program for those employees who
effectively do their work and expectedly going to promote. So after proper training there
is also a development chances for all trained employees. These developments might be in
shape of promotions, make as permanent employee etc.

Performance Appraisal:-
There is a proper performance appraisal system in PEL. When we talk about the
employees who are completing their training session, the feedback about their
performance is forwarding by the supervisors to the managers and the annual
performance appraisal is completely done by HOD but with the consent of managers and
supervisors. HOD complete the appraisals with goal setting in which 60% points are
given on full or extra ordinary working to active respective goals and 40% points are
given on soft skills which use to achieve the respective goals. To follow these goals
setting points the HOD gives different designations of performance (i.e. outstanding, very
good, good and satisfactory). After the completion of HOD recommendation and points
of performances these appraisals are forwarded to HR department for further action.

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Compensation & Benefits:-


PEL gives proper compensation and benefits to their employees. There is proper salary
structure divided into different ranges with respect to designation and experience. Along
with salaries PEL also given utility allowances to high level posts started from
Executives to managers but under the budget they have managing director having the
authority to set the overall compensations of employees.
PEL also gives different benefits to their employees in excess to compensation criteria.
PEL offer medical facility for the employees and their family, life insurance facility,
provident fund facility in which 10% contribution of basic salary given by the employee
and 10% contribute by employer and loan against provident und and bonuses. In excess
of all of these increase in salary in shape of promotion or annual increment made for
employees compensation program.

Safety and Health:-


PEL also have safety and health program. In safety section, if an employee seriously
injured during working on machines then the company pay the overall hospital charges
and also pay the salaries of this injury period. All the employees having the insurance
policy which markup pay by the PEL. So if an employee died during working hour then
the company settles this case accordance with the amount of life insurance.
PEL offers Dental cover, Immunization, Maternity benefits, general nature treatments for
health care. For this purpose company bear all the medical and hospitalization expenses
PEL point out the list of standard hospitals for medical facilities.

Relations:-
There is a proper relation with department to department all the correspondence is made
with the e-mail ID given by the MIS department of PEL. Managers and executives
segregate their time and mail to all the departments in which they give their engaged
timings and free timings to solve other department queries and issues if any department
want to resolve their quires then they have to contact with in free timing they have.
There is also a proper relation from downward to upward in hierarchy. If there is any
problem in working then a worker discussed it with his supervisor and the supervisor

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discussed it with his seniors so the information which starts from worker and hierarchy
goes up and come in the knowledge of seniors.

2.4.2 HR Practices in Orient Group of companies

Planning:-
In orient HR department did not do any kind of planning for new hiring but in future they
want to plan the manpower requirement with SAP Software. Till now the head of
departments and managers told their requirements about Manpower and HR department
start their process without seeing the feasibility of that requirement. So we can say that
the HR department work only as a resource identifier or the departments.

Recruitment & Selection:-


HR department in orient use both internal and external sources for recruitment process.
Most of the post to be filled from internal sources through promotion of employees and
with reference of present employees if internal source did not fulfill the required result
then HR goes to give advertisement in paper media. And take helps from the web
consultant (Rozee.pk). Paper media mostly use for skilled workers and web consultant
used for pure office work. HR department did not segregate the received CV’s according
to education, experience and skills.
After collection of CV’s the candidates are called for interview process. HR manager
takes the interview of all the skilled and fresh workers. It is point out that there is no test
taken from candidates (i.e. Physiological and personality) to check the feasibility against
the requirement. If HR manager select a skilled candidates then he recommend him to the
respective department head that check the skills level of the candidates. Is the suitable for
the respective requirement or not? If he looks suitable then the HR department gives him
an offer letter for joining and after joining issue an appointment letter in favor of selected
candidates.

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Induction and Orientation:-


There is no formal orientation program is designed for new joining but informal
orientation given to the new employees. HR executive given the orientation in which they
give introduction of company and departments and respective department head give him
the introduction and requirements of post for which he is hired. In interview process, I
take interview from different workers, officers and executives of different departments.
During interview some workers told me that HR department gives the detailed policies
rules and regulation handouts to them but some of them give answer in shape of No. This
is done in different departments. So I can say that there is also no proper distribution of
handouts of company policies.

Training and Development:-


There is no training program introduced for the employee who hired for office work but
only the training is given to skill staff. After the orientation the skilled worker has a visit
of respective department where an introduction is given about all the equipments and
machines. If any kind of equipment or machine are new for skilled workers then the
seniors gives them the training about these machines and equipments. In addition orient
visit abroad to their senior employees to get training. This training may be about the new
technology which he wants to introduce in orient products. After getting training program
from abroad these trained seniors gives the training about new technology to his workers
there is also a proper development program after training of employees.

Performance Appraisal:-
In orient there is a performance appraisal program to check the performance of
employee’s head of departments having the authority of performance appraisal. They
conclude the appraisal with the help of supervisor. There is no proper parameters set for
performance appraisal but with only in the point of view of supervisor. They give the
performance in shape of percentage and give their recommendation for increment
process. After completing the process these appraisals are send to managing director for
approval.

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Compensation and Benefits:-


Orient gives the attractive compensation program to their employees. Compensation
criteria include the Salary, Fuel and Rents etc for the employees. Salary ranges are set
according to experience and skills to set the overall compensation program of employees
managing director have the authority for that.
In addition of this compensation program orient also gives some benefits to their
permanent employees and the contractual employees also Orient offers Car financing,
Loan financing, Bonuses, Health insurance and free medical facilities to their employees.

Safety and Health:-


Orient also gives the safety and health program to their employees. In safety parameters
if there is any injury accurse during working than the company pay all the medical
charges. And in health care orient have the health insurance for their employees. There is
also the life insurance and medical facilities to facilitate their employees.

Relations:-
There is no proper criterion set for relations with internal departments to follow the day
to day activities. In orient HR department have the communication gab between the
employees because no feedback sheet develop for employees to communicate with HR
department. The relations between two departments developed through internal memos,
and department to department communication made through hierarchy from downward to
upward and upward to downward.

2.4.3 HR Practices in Cool Industries

Planning:-
HR department did not follow proper planning program for hiring of new employees all
the hiring’s done only on the feed back of head of department. HOD discussed their
requirements with executive director who give the permission for hiring. So there is no
proper involvement of HR department on planning and approval of hiring.

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Recruitment and Selection:-


After approval from director HR department check the availability of new employees.
They use internal sources in small terms and usually use external sources, paper media is
use for new job advertisement. After proper screening of CV’s according to skills and
experience selected candidates are called for interview process. Initial interview done by
HR department after that to check the efficiency level and skills to work HOD take
another interview. After checking and recommended a person for a particular job. HOD
discussed with director if he wants to take interview than third interview take place and
give approved for appointment. After that an appointment letter issued to that selected
candidates for joining.

Induction and Orientation:-


After selection of candidates there is an informal orientation given to employees only in
shape of company history, products, market share and the mission statement and the
department orientation given by the manager or supervisor they explain the overall
requirement and nature of job in which they explain the reporting, function and which
works to be done.

Training and development:-


Cool Industries always introduce new technology in their products to get the information
about new technology seniors visit different companies in abroad time to time same as
the training session is also take place to get the proper knowledge of these technology
which the seniors wants to introduce in their products for this purpose managers and
supervisor attend the training session and they further trained their employees about new
technology. Same as the training is given to new employees for better utilization of
manpower and after training session and implementing these technology. There is also a
proper development program for trained employees.

Performance Appraisal:-
There is also a performance appraisals system of employees in cool industries. The
process of performance appraisal is done under the authority of managers / HOD. The

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overall feed back about performance is forwarded by the immediate supervisors. No


proper parameters identified for appraisal program but the appraisal forward in shape of
%age of performance after summarizing overall appraisals these appraisals are send to
the directors for approval of recommended increase in salary on performance.

Compensation and Benefits:-


In cool Industries an effective compensation program offers. Total compensation
includes the Salary, House rent and cost of living allowances. Total salary package is
comparatively better with other companies some kind of benefits also given to employees
these benefits varies from post to post but some benefits are offer for all the employees
such as free medical facility life insurance, Provident fund and advance in shape of loans
etc. these benefits helpful to give full attention in their work.

Health and salary:-


Cool Industry also offers proper safety program at the work place. If there is any injury
occur due to work at machine then the company bear all the expenses which incurred to
providing medical services. Total salary package is also given till the clearance of
doctors. For health care services cool industry gives the free medical facility to their
employees and these formalities up to some extent but some of the posts having full free
medical facility.

Relations:-
Employees in cool industries have proper communication with their seniors to resolve an
issue, planning to achieve targets and suggestions for better implementation of resources
so the workers communicate their problems hierarchy who the first head supervisor and
the supervisors try to resolve this problem if the authorities are limited to resolve that
issue then he discuss to the manager to resolve the issue but in this process HR
department did not perform their duty. Department to Department relations take place
through meetings, internal memos and telephonic conversation.

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Q#1: Is HR doing screen workers according to skills & experience?

Yes No Not Sure


PEL: - 50 50 0 0
OGC: - 50 45 2 3
Cool: - 50 43 4 3
60
50 50 50 50
50 45
43
40

30

20

10 4
2 3 3
0 0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.3
Q#2: Is there a formal or informal orientation/training program for new
employees?

Yes No Not Sure


PEL: - 50 50 0 0
OGC: - 50 40 10 0
Cool: - 50 44 5 1
60
50 50 50 50
50 44
40
40

30

20
10
10 5
0 0 0 1
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.4

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If yes then:
I. How much it helps employees to learn about organization?

Below 50% 50% to 60% 61% to 70% 71% & above


PEL: - 50 0 4 7 39
OGC: - 40 0 0 10 30
Cool: - 44 7 10 11 16
60
50
50 44
40 39
40
30
30

20 16
10 10 11
10 7 7
4
0 0 0
0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.5

II. How much it helps employees to update about job requirement?

Below 50% 50% to 60% 61% to 70% 71% & above


PEL: - 50 0 2 10 38
OGC: - 40 0 6 8 26
Cool: - 44 2 16 15 11
60
50
50 44
40
38
40

30 26

20 16 15
10 11
6 8
10
2 2
0 0
0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.6

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Q#3: Is appointment letter issued to new employees?

Yes No Not Sure


PEL: - 50 50 0 0
OGC: - 50 23 24 3
Cool: - 50 46 4 0
60
50 50 50 50
50 46

40

30 24
23
20

10 4 3
0 0 0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.7

Q#4: Is the company providing manual outlining terms and conditions of


employment, company policies on hours of work & safety, etc.?
Yes No Not Sure
PEL: - 50 46 0 4
OGC: - 50 31 13 6
Cool: - 50 18 18 14
60
50 50 50
50 46

40
31
30
18 18
20 14
13
10 6
4
0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.8

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If yes then:

I. How much company follows these rules & regulation?

Below 50% 50% to 60% 61% to 70% 71% & above


PEL: - 46 0 0 9 37
OGC: - 31 0 2 9 20
Cool: - 18 5 3 6 4
50 46
45
40 37
35 31
30
25 20
18
20
15
9 9
10 5 6
3 4
5 2
0 0 0
0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.9
Q#5: Are valid parameters set to check the employee’s performance?
Yes No Not Sure
PEL: - 50 47 3 0
OGC: - 50 39 7 4
Cool: - 50 25 20 5
60
50 50 50
50 47

39
40

30 25
20
20

10 7
3 4 5
0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.10

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Q#6: Who is having the authority for performance appraisal program?

Supervisor Manager Human Resource Officers HOD ALL

PEL: - 50 13 6 0 19 12
OGC: - 50 3 0 0 47 0
Cool: - 50 5 29 16 0 0
60
50 50 50
50 47

40
29
30
19
20 16
13 12
10 6
3 5
0 0 0 0 0 0
0
Total Supervisor Manager HR HOD ALL

PEL OGC Cool

Figure 2.11
Q#7: Is there a well understood pay for performance compensation program?
Yes No Not Sure
PEL: - 50 43 4 3
OGC: - 50 37 9 4
Cool: - 50 34 13 3
60
50 50 50
50
43
40 37
34

30

20
13
9
10 4 4
3 3
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.12

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Q#8: How much you satisfied with the current compensation program?

Below 50% 50% to 60% 61% to 70% 71% & above


PEL: - 50 2 4 10 34
OGC: - 50 4 8 15 23
Cool: - 50 3 11 21 15
60
50 50 50
50

40 34

30
21 23
20 15 15
11 10
8
10
2 4 3 4

0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.13

Q#9: Is there an incentive or reward given to employees for bringing forward


suggestions / ideas on improving productivity?
Yes No Not Sure
PEL: - 50 0 39 11
OGC: - 50 0 40 10
Cool: - 50 0 35 15
60
50 50 50
50
39 40
40 35

30

20 15
11 10
10
0 0 0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.14

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Q#10: Is your company organizing annual social functions for employees?

Yes No Not Sure


PEL: - 50 47 1 2
OGC: - 50 0 45 5
Cool: - 50 44 2 4
60
50 50 50
50 47
44 45

40

30

20

10 5 4
1 2 2
0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.15

Q#11: Is the company conduct occasional surveys of your employees, receiving


feedback on company policies, compensation, benefits, employee attitudes, etc.?
Yes No Not Sure
PEL: - 50 44 4 2
OGC: - 50 18 16 16
Cool: - 50 17 26 7
60
50 50 50
50 44

40

30 26
18 17
20 16 16

10 7
4 2
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.16

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Q#12: Is there any apprenticeship program for unskilled worker?

Yes No Not Sure


PEL: - 50 43 3 4
OGC: - 50 35 12 3
Cool: - 50 41 2 7
60
50 50 50
50
43 41
40 35

30

20
12
10 7
3 2 4 3
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.17

Q#13: Is the company having proper development plan for employees?


Yes No Not Sure
PEL: - 50 47 2 1
OGC: - 50 35 10 5
Cool: - 50 40 2 8
60
50 50 50
50 47
40
40 35

30

20
10
8
10 5
2 2 1
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.18

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If yes then:
1- How much you satisfied with current development plan?
Below 50% 50% to 60% 61% to 70% 71% & above
PEL: - 47 0 2 9 36
OGC: - 35 2 6 4 23
Cool: - 40 0 5 14 21
50 47
45 40
40 35 36
35
30
25 23
21
20
14
15
9
10 6 5
4
5 2 2
0 0
0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.19

Q#14: Is the company offers a pension or retirement savings plan or profit sharing
plan for employees?
Yes No Not Sure
PEL: - 50 46 1 3
OGC: - 50 0 48 2
Cool: - 50 43 6 1
60
50 50 50 48
50 46
43
40

30

20

10 6
3 2
0 1 1
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.20

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Q#15: Is the company providing a comprehensive group benefit program?


Yes No Not Sure
PEL: - 50 50 0 0
OGC: - 50 50 0 0
Cool: - 50 50 0 0
60
50 50 50 50 50 50
50

40

30

20

10
0 0 0 0 0 0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.21

If yes then:
I. Which kind of benefits they offer (check all which apply)?

Medical +
Medical Life Insurance Provident Fund ALL ALL and Other
PEL: - 50 11 12 0 20 7
OGC: - 50 26 0 0 0 24
Cool: - 50 5 6 0 38 1
60
50 50 50
50
38
40

30 26 24
20
20
11 12
10 5 6 7
0 0 1
0
Total Medical Med +Life ALL ALL and Others
Insurance

PEL OGC Cool

Figure 2.22

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Q#16: Is there a formalized complaint resolution process within your company?

Yes No Not Sure


PEL: - 50 28 9 13
OGC: - 50 0 42 8
Cool: - 50 27 14 9
60
50 50 50
50
42
40

28 27
30

20 14 13
9 8 9
10
0
0
Total Yes No Not Sure

PEL OGC Cool

Figure 2.23

Q#17: How much you satisfied with the activities of the Human Resource
Department (i.e. working atmosphere, development, etc)?

Below 50% 50% to 60% 61% to 70% 71% & above


PEL: - 50 0 3 7 40
OGC: - 50 2 12 15 21
Cool: - 50 13 25 8 4

60
50 50 50
50
40
40

30 25
21
20 15
13 12
7 8
10 4
2 3
0
0
Total Below 50% 50% to 60% 61% to 70% 71% & above

PEL OGC Cool

Figure 2.24

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2.5 Summary

As my whole project is base on the HR Practices. So I have some finding about the topic
first of all. I have to discuss the planning practice in all the three companies. In PEL there
is proper planning and feasibility check for the new hiring and in the planning process
they forecast the manpower requirements in future but in orient and cool industries there
is no planning for feasibility check but only the hiring process starts on the requirement
of head of department of respective field and when I talk about recruitment and selection
criteria there is also the PEL got maximum points because in PEL there is proper
screening of candidates made from the process of selecting CV’s to the final interview
but in the other two companies just collect the CV’s and interviewed all the candidates
without proper screening . This prove in the result of questionnaire which asked on
screening of worker maximum employees who give me the feed in YES they are
belonging from PEL. Proper identified criteria for selection and the authority of selecting
a candidates which have the HR department in PEL, in orient HR having the authority to
select only the unskilled worker but the approval given by the MD and in cool Industries
HOD give recommendations to the executive director to appoint a candidate After
selection there must be a proper orientation program (may be formal and informal). All
three companies having the orientation program for new hiring but cool industries and
orient conduct has an informal orientation program and the PEL conduct a formal
orientation program. In my questionnaire result maximum employees of PEL point out
that this orientation program help more than 70% to get introduction about company and
job requirements. Even though in orient only offer letter given to employee which %age
is about 50% of total employees. Result about the handout of companies policy are mix
but near about 100% of employees tick on yes that they receive the handouts of company
policies. There is a proper training and development program for skilled workers in all
three companies but only PEL give the training to the officers which are appointed as
MTO’s Even though these companies tour to their employees aboard for getting training
on new technology. After that the point is in shape of performance appraisal program, in
all the three companies the respective department heads having the authority to prepare
the appraisal system but there is no proper standard set for checking the employees
performance in orient and cool industries but the PEL having the goal check parameters

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to check the performance of employees. Mostly employees verify this information that
the HOD having the authority of performance appraisal. In these companies there is also
a proper pay for performance program which directly base on the performance system. In
all three big groups due to the competition in this field there is well managed and healthy
compensation offer to the employees. The compensation criteria are set according to the
skills and experience. There are some group and individual benefits offers to the
employees in these companies and these benefits are near about same with each others
but the effective point is also in the favor of PEL in shape of pension and retirement plan
which offer to old age employees which helps them to work with the company in a loyal
condition. There is also a proper health and safety programs develop for health care
purpose during and after working hours. For safety Point of View Company bear all the
expenses which incurred on hospitalization of injured employees and for health care
purpose they have health insurance policy for employees. In all the companies there is a
complaint resolution process for employees but this process is take place under the kind
supervision of HOD but till now HR did not involve in this process.

According to the actual information, maximum HR Practices are followed by all three
companies but the overall setup accordance with these practices PEL company is
considered at first position in strictly following and implementing these Practices and the
orient group of companies ranked second and cool industries ranked third to follow these
practices.

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Chapter 3: Conclusion, Recommendation & Limitations

3.1 Conclusion

HR Practices are the main heads which a HR department must follow / work on it for
developing betters atmosphere to work (i.e. in shape of internal satisfaction of
employees). So to check the effectiveness of HR department we must have the
knowledge about which many practices a HR follow.

I check the overall setup and no of practices which HR department follows of all three
companies. I find that all the practices are follow by all three companies but some
practices did not held under the supervision of HR department without setting the goals
and objectives of the particular task but overall PEL is the best company in shape of
proper HR setup and it follow all the HR Practices and these practices help the
employees to give the full attention at their work on job. Orient is in number second and
cool industries ranked at third because some practices are those which they did not follow
so strictly and effectively.

PEL already have a proper setup of HR department but time to time they going to
improve it and in competition orient and cool industries also improve their setup in next
one to two years.

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3.2 Recommendation

 Orient and Cool industries must develop their planning about the requirement of
manpower because with the help of proper planning they can get the maximum
suitable resources.

 There must be psychological test for all the new candidates to check their mental
level and for skilled person they have to check their proficiency through proper
assignment of their respective field. It is necessary for orient and cool industries.

 There is a need to develop the selection process through initial interview and
screening, than a panel interview and after that the final interview. There is a
requirement of structured interview in Orient and Cool industries.

 Orient and Cool industries must have the formal orientation program in which
they have to explain all the policies regarding rules and regulations and working
conditions. It is helpful for new employees to set their internal satisfaction.

 All three companies must have to develop the strong reward system for company
to set the new objective to achieve goals.

 Performance appraisal program must be a strong setup which works on the special
parameters. The parameters must be those who fulfill all the criteria of checking
performance. These appraisals must be verified by two departments for better
respond.

 All three companies must have an annual social function in which some kind of
awards given to the employees who give extra ordinary performance through out
the year and it also helps to develop employee’s social relations with each other
for better understanding.

 There must be occasional surveys in three companies to getting the feedback from
employees about policies, compensation and benefits.

 There is a lack ness of formalized complaint resolution in these companies which


works under the HR department. This process must be under control of HR which

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check the overall complaints in routine basis, make analyze periodically and take
action against such complaints.

 A proper, well structured and authorized HR department required in Orient, Cool


industries and PEL which perform their duties separately and give report to
directors or CEO, for taking actions and helps employees to providing better
atmosphere to work.

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3.3 Limitation

 I want to take the interview of HR manager in waves but he was not free and he
did not give me the time for personal interview but I only take the interview from
him through telephone.
 I also face a problem in data collection. I have required the companies
information (i.e. vision, mission statement) from orient and cool industries but
they did not provide me that information even though I remind them through
telephone and e-mail
 There is also a shortage of time for getting the information from a large number
of samples in all three companies.

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Section II

a) Introduction of the student

Last Degree Obtained: B.A


Organization’s Name: Bhatti Auto Track (Chain of Atlas Honda showrooms)
Designation: Admin Manager
Experience (Years): 6 to 7

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b) Appendix

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c) Bibliography

Ahmed, Mukhtar. (2008). Human resource management. Unpublished manuscript,


Virtual University.

Anwar, M.(2009). Research methods. Unpublished manuscript, Virtual University.

Dessler, G. (2003). Human resource management. Boston, MA: Prentice hall.

Giri, Y.L. (2008). Managing people at work. Pune: Nirali Prakashan.

Myers, W. (2004). U.S master human resources guide. Chicago: Catherine Wolfe.

Orient Business system, (2010). Orient official site. [Online]


Available Http://www.ogc.com.pk

Pak Elektron Ltd, (2009). PEL official site. [Online]


Available Http://www.pel.com.pk

Cool Industries, (2009). Waves official site. [Online]


Available Http://www.waves.net.pk

Naseeb, M. (2010). OGC Profile. [Online]


Available Http://www.rozee.pk/company-details.php?compid=4507

Promoting Cool Concept. (2008, November 03). Recorder, P.9.

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