British American Tobacco:

British American Tobacco is the world’s most international tobacco company with an
impressive market position in Latin America and a robust position in all the other regions
including America pacific, Asia-Pacific, Europe and Africa and Middle East (AME).for
100 years, British American Tobacco has been building an international reputation for
producing high quality tobacco products to meet the diverse preferences of consumers.
Leading edge manufacturing BAT focuses on quality and excellent distribution
capabilities enabling consistently to deliver premium products in 180 markets.

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Vision:

“To achieve leadership of the global tobacco industry in both a quantitative and
qualitative sense.”

BAT has 15% of the global market and is the second largest international tobacco
company and the market leader outside the US. For BAT leadership is about being
recognized as a high quality business with excellent people and products and being seen
as a benchmark company.

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Business focus:

BAT has clear priorities for investment:

1. Market leadership or premium position:

Focus on markets where it can retain or achieve portfolio leadership and build premium
positions such as Middle East, Japan, South Korea and Taiwan.

2. International Brands, Lights, Premium and :

The key to profitable growth is to developing business from its origins in local, full
flavour lower price brands towards the growing, more profitable segments.

3. Productivity:

BAT expect to be able to reduce costs by sharing services between markets ,as well as by
taking advantage of significant opportunities to achieve savings from intelligent
application of “e” business to entire global supply chain.

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Strategic Imperatives:

1. Focused brand portfolios communicated through state-of-the -art adult smoker

engagement programmes.

2. Industry leading product portfolio, designed to address consumer needs and societal
expectations.

3. Optimum product availability through world-class customer service.

4. Leading positions in priority markets.

5. Recognition as a responsible company in an industry seen as controversial.

6. Wired for # 1: Aim to reduce blockages to efficient, effective and timely operations by
connecting network of people, places, processes and business partners.

7. A winning environment inspiring passion for the business, talented people and
personal fulfillment.

Human Resource (HR) At British American Tobacco:

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Human Resource in British American Tobacco aims to attract, develop and retain the
most talented people around the world. The purpose of HR is to help shape the culture of
this dynamic business, creating an environment that emphasizes and reward performance,
whilst supporting learning and development.

HR arena includes exposure and training in the areas of:

Managing Performance:

Measuring and aligning performance, rewarding performance, managing and

administrating benefits.

Managing Organizational Learning and Development:

Managing change, designing and development the organization, managing organizational

climate, learning in the organization.

Resourcing:

Recruiting, selecting and assessing, HR planning.

Managing Careers and Development:

Assessing competencies and potential, career development systems, coaching and

mentoring, training and development.

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Managing Employee Relations:

Managing employment legislation, managing work place relations, managing HR

customer service.

HR is essentially about managing people and their expectations. Attracting and recruiting
the very best people is of major importance to the company. this has involved
coordinating presentations at leading universities, assessing application forms,
interviewing potential recruits, organizing assessment centers, training assessors and
facilitating the selection decision making process.

Introduction to PTC:

Pakistan Tobacco Company was the first multinational to set up its business in 1947 in
Pakistan it took over business from Imperial Tobacco Company that was operating since
1929 .In 1948 commenced pioneering of Virginia Tobacco Cultivation. Pilot production
plant was set up in a warehouse near Karachi port with a monthly production of 30
million cigarettes, which is now in 2002, is over 2 billion cigarettes per month. The rapid
expansion in the cigarette market over the years led to the establishment of our state of
the art manufacturing facilities in Jehlum and Akora Khattak.

PTC is a subsidiary of British American tobacco (BAT) group, which is the largest
international tobacco group and has its business in 180 countries all over the world. BAT
holds 94% shares in PTC .They hold strong market positions in each of their regions and
enjoy a market leadership present in more than 50 BAT manufactures with over 300
brands in its portfolio and a market share of 15 percent. They make the cigarette chosen
my one in seven of the world’s one billion adult smokers. They have nearly 100,000
people around the globe and have over 80 factories in 64 countries.

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It produces high quality tobacco products to meet the diverse preferences of million of
consumers, works in all area of the business “from seed to smoke”. Its operations began
in 1902, and its companies are committed to providing consumers with pleasure through
excellent products and to demonstrating that they are meeting their commercial goals in
ways that are consistent with reasonable societal expectations a responsible tobacco
group in the 21st century. The company’s principal activities are manufacturing and
selling of cigarettes and edible oils (Sundrop).

Pakistan Tobacco Company has come a long way from being just a single factory
operation to a company which is involved in every aspect of cigarette production, from
tobacco cultivation to packaging but what is really significant about these fifty –five
years is the tremendous effort that Pakistan Tobacco Company has played in the
development of the country .By spear heading the campaign for modern agriculture and
industrial practices, they have been instrumental in the development and progress of the
agriculture and industrial sector in the country.

Pakistan Tobacco Company has been leader in innovative marketing campaigns, which
brought a whole new competitive edge to Pakistan business world. PTC is returning its
debt in the form of various altruistic activities.

Over the last half –century PTC have been supporting and giving donations to various
causes of national interest educating growers in the latest techniques and technology in
agriculture, afforstation and sponsorship of sports.

Through these fifty-five years, PTC continual investment in People, Brands, technology
innovation and the communities in which it operates has borne fruit in the form of
transforming into a company strong enough to go through thick and thin with the country.
Pakistan Tobacco Company is responsible for generating a lot of economic activity and
introducing innovative ideas and break-through within Pakistan.

PTC believes in its people as most important asset of business.

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“Our people are the heart of our business and these world class people work as a team to
meet challenges in an ever changing environment .We believes in open and honest
communication and this belief has harnessed an open and transparent culture within the
company”.

Milestones:

PTC has come a long way from being just a single factory with restricted operations .The
role it has played in the economic development is commendable. From the spearheading
of modern machinery and industrial practices to incorporating the global standards within
the structure of the company, PTC has contributed a lot in both monetary and non-
monetary terms.

• It became the first company in Pakistan, which was awarded class A as part of the
international total business excellence programme MRPII audited by the
international consultants.

• Further more both the factories and the leaf areas were awarded ISO 9001 and
14001 certification proving the world-class standards of the company.

• The SA8000 is the largest feather in the hat awarded to the company for the best
employee practices, which include issues of child labor, health and safety,
freedom of association and right to collective bargaining, discrimination,
disciplinary practices, working hour’s compensation and management systems.

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Vision of PTC:

“First Choice For Everyone”

• Regaining volume and value leadership by positioning viable brands in all

relevant segments.

• Driving world-class standards in products processes and service through

passionate, skilled and confident people.

• Striving to meet stakeholders’ expectations.

• Create an open, empowered and fun loving culture.

• Becoming the preferred consultants on industry issues.

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Mission Statement:

The mission statement of PTC

“Transform PTC to perform with the speed, flexibility and enterprising spirit of an
innovative, consumer focused company”

“Together we will be the best in everything we do”

Motto OF PTC:

Dare to be different --Dare to dream --Dare to try --Dare to frail --Dare to succeed

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HR Mission Statement at PTC:

To lead the organization in enhancing its human capital and creating a winning
environment where everyone enjoys contributing to the best of one’s ability.

PTC will achieve this by:

• Inspiring and motivating its people.

• Developing its people to strive for higher standards.

• Driving an open minded and enterprising corporate culture where people through
leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed.

• Attracting and recruiting the best talent fulfilling customer’s expectations.

Human Resource Strategies:

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Human resource department will continue its effort towards nurturing a winning
corporate culture and building organizational capabilities by ensuring that its people at all
levels are both able and willing to perform at consistently exceptional levels. At PTC the
people have been empowered to a large degree by minimizing out dated rules /regulations
and plan to further eliminate the bureaucratic barriers to capitalize on their ingenuity and
talent .The top team continue to play its role in providing the guidance and support to
people at all levels. The HR (people’s) function ensures that it leads the transformational
change by nurturing a climate, which would help in converting the huge potential at
disposal of the company into world-class performance.

The active and effective role played by HR in people development at different levels
organizational, departmental and individual is considered in PTC to be one of the most
critical factor leading to the development of a winning corporate culture. The effort
continues to be directed towards developing the skills of the shop floor employees,
improving competencies of Business Support Officers (BSOs), and enhancing the
leadership qualities of managers.

Plan for People Development:

• Continue to nurture strong, open minded and caring leadership at all levels with an
enterprising spirit of “Dare to dream… Dare to try to try…dare to fail …and dare to
succeed”.

• Ensure to develop people at all levels, both in terms of skills to undertake

challenging assignments and the “will” to take greater responsibilities.

• People at all level take charge for their development and constantly look for
opportunities to enhance their knowledge, skill and leadership attributes.

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• Ensure that PTC becomes a learning organization where knowledge management
becomes an established way of developing people.

• As far as possible, match the individual aspiration with the organizational needs to
encourage personal fulfillment.,

• Ensure transparency in career management to encourage and recognize talent as well

as performance.

• Prepare and develop the line managers to take ownership of the “HR Tools” e.g.,
developing people, more active involvement in career management (CDM), Sharing of
learning (HR Intranet).

• To enhance the employability of employees for keeping them motivated and secured.

• Integration of training activities throughout the company

• Become a 1st choice employer in a growing environment where talents supply will
fall short of demand.

1. Career Management:

Strengthen the CDM process to bring more transparency and commitment to career
management and development plans and as far as possible will match the aspiration and
capabilities of individuals with the needs of the business with a view to ensure personal
fulfillment. Pushing down the involvement of line managers so that careers are managed
by them with the advice and tools provided by HR.

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CDM feed back to be shared with the individuals without holding any bars .This would
bring more authenticity to the process where career moves will take place as far as
possible in a planned way.

2. Embed Coaching And Mentoring Culture:

Create an environment where people development is one of the key drivers for success.
Develop emotional and professional maturity of managers to enable them to demonstrate
inspiring leadership traits. Training inputs on leadership, emotional intelligence and
lateral thinking. Top team to act as role model and encourage people below to
demonstrate and inculcate coaching culture for coaching. Emphasizing to people that
through coaching others will also develop themselves. Incorporate people development in
principal accountabilities of each jobholder. Top team gives more focus to the mentoring
process of selected managers.

3. Developing Business Managers:

To reduce silo thinking and develop “Business Managers” they create more awareness
and appreciation about how various functions contribute to the overall objectives of the
company. This will support efforts for enabling people to understand the impact of their
role on other functions and overall business.

T&D will provide a platform to get one/two day’s courses organized each year. e.g.

• CORA Appreciation

• Leaf Appreciation

• Language of finance for non-finance managers

• Winning through consumer focus

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• HR processes

• Product knowledge

• Management Development Courses etc

1. Cross-functional moves

2. Cross-functional project teams.

4. Re-Engineering the Human Capital (Attitudinal Change):

Focus on individual to inspire them and provide them with tools to pursue personal
excellence without getting bogged down through self-imposed limitation in thinking and
actions. Supporting people to learn from mistakes in pursuit of business excellence.
Encourage people to think differently.

5. Performance Appraisal and Development Activities:

Encourage managers to read “Accelerating Growth” on the intranet to self learn the new
process. Drive to transfer the ownership for learning and development to individuals –no
spoon-feeding .train managers on “Self Service” .top team to fully subscribe to the
philosophy and encourage the managers to use the new tool as a “Business Tool” instead
of “HR Tool”.

6. Learning And Knowledge Management:

To nurture an environment where all people are allowed and encouraged to develop
themselves and give willingly their very best without fear. Provide the necessary platform
to develop and inspire individuals and teams to share rapidly and effectively their
knowledge /success and failure to enhance team potential and competence. Develop a

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system for knowledge management and resource allocation in the form of personnel to
facilitate. Learning resource center to cater for the self-learning opportunities e.g., e-
based training.

7. Reduce Emphasis On Training Only Approach:

Create an understanding that “Training Only “would not be sufficient to develop people
and that other development opportunities should be identified and agreed by the
individuals and line managers e.g.,

• On the job development

• Special projects

• Short-term assignments

• Short-term attachments with other functions/sections

• Cross –functional projects / teams etc.

8. Benchmarking:

Conducted benchmarking of Training & Development activities with other multinationals

within Pakistan and with other regional companies.

9. Attracting the Best Talent:

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To recruit management trainees in Marketing, Finance, IT and HR, PTC mainly rely on
MBA’s graduating from local institutions, barring a few students returning home after
qualifying from foreign universities.

Well-managed internship program will help to “catch them young” rather than waiting
for the graduating students up to the last moment. Involvement with the students joining
the professional institutions starting first year they join.

10. Retaining Talent:

PTC aim to be the most attractive employer in local job market, this is done through,

• Annual survey of job market (comparative companies) to remain competitive.

• Expanding the base of comparator companies.

• Ingenuity in use of Merit Matrix, giving more freedom to the line managers when
reviewing the salaries of their teams

• Raising bar by moving up from the 75th percentile for specialist jobs.

• Further, improve the concept of performance-linked bonus.

Keep reviewing organization structure, on need basis, for right sizing. Constant review of
role profiles through job evaluations. A flexible approach in designing the remuneration
package for the new generation managers who are more interested in higher take home
pay rather the retirement plans. Instant recognition of outstanding performance
/contributions towards productivity improvements

11. Alignment with the Global Reward Strategy:

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Salary increment for those with “A” rating is 17% higher than those with “C” ratings
whilst no salary increment was granted to those with “D” ratings.still planning to widen
the gap between excellent, satisfactory and weak performers to appropriately incentives
high performance .The incentive schemes and incentive objective have been clearly
communicated to all individuals and weekly progress report is also communicated to all
concerned.

12. People and Team Processes:

Building morale of people and creating a winning culture continues to be the foremost
objective where ordinary people can achieve the extra-ordinary by performing willingly
to the best of their abilities. The cross culture team continues its efforts towards
integrating the various cultural element of the organization. Some of the activities that
would further cement efforts in the plan to achieve excellence through a highly integrated
and fully committed team include:

• Re-engineering of communication process across the organization.

• Enhancing the literacy standard of work force.

• Involving the families of workers in various cultural activities.

• Engaging business partners in the overall organizational activities.

13. Industrial Relations (IR):

IR is given special importance by increasingly involving unions and employees to sustain

the environment of trust, empowerment and mutual respect. Continuous education and
visit to other BAT companies and multinational in Pakistan further broaden vision to
support initiatives for change and inculcate entrepreneurial spirit. PTC has demonstrated
Fair &Firm deal on issues and principles to ensure good working environment and
business partnership with unions.

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Different HR Practices at PTC:

These are few of the HR practices that I have learned at PTC from my resource person.

• Recruitment process

• Training

• Performance appraisal

• Compensation

• Discipline

Recruitment Process for BSO’s

Recruitment starts from the requisition by the line manager and ends on appointment
/documentation.

• Role profile to fill a vacancy

• Approvals by line managers and HR manager

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• Job/person specification

• Invite applicants through any of the following resources

Advertising Head hunters Direct Applicants Campus Campaign

• Short-listing of candidates

• Preliminary interviews

• Assessment canter/selection tests

• Final interviews

• Medical examination

• Appointment /documentation

Recruitment Process for Managers:

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The process is same accept that after the preliminary interview the panel recommends
few candidates who are tested for their managerial capabilities they have to go through
stages of assessment .the candidate at the assessment center has three experienced and
knowledgeful person who evaluate him at different stages. The different phases upon
which the candidates assessed are:

• Case study analysis (to check the decision, making power)

• Presentation (to check the communication skills)

• Group discussions (teamwork abilities)

Training:

Training is a planned effort by a company to facilitate employees learning of job-related

competencies. These competencies include knowledge, skills or behaviors that are critical
for the successful job performance.

At PTC, there is a continuous assessment of the technical and managerial skills .for the
further enhancement of these skills formal training programmes are offered at all levels.
The employees are provided wit opportunities to put these skills into practice, in
preparation for the move to a managerial role. Training is viewed at PTC as a way of
creating intellectual capital. Employees are expected to acquire new skills and
knowledge, apply them on job and share this information with other employees. The
training is cross-functional for sharing of skills. The training programmes also include
International Seminars.

Attitudinal Programs:

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• NLP

• Caring Leadership

• Emotional Intelligence

In-house Courses:

• Leadership

• Influencing

• Creative Problem Solving

A new initiative has been taken which covers all employees is the course “lets lead
change from inside out” in which employees are taught how to react to environmental
and technological changes and how to cope with the situation.

WOW:

WOW “Winning In Our World” is a workshop held every week to bring employees,
distributors, suppliers, and farmers together where they interact in a harmonious
environment. The challenge of WOW is “Nurturing a winning culture that drives to
achieve the extraordinary by performing to the best of abilities”.

Objectives of WOW:

• Know

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• Understanding

• Believe

• Act

Elements of WOW:

Achievement

• Vision

• Map

• Consumer focus

Commitment:

• Confidence

• Standard

• Drive

Trust:

• Teamwork

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• Support

• Belonging

Performance Appraisal:

Performance appraisal at PTC is used to evaluate the job performance of employees. HR

department use the information gathered through performance appraisal to evaluate the
success of recruitment, selection, orientation, placement, training and other activities.
Formal appraisals are needed to help managers with placement, pay and other decisions.
This kind of formal appraisal in PTC for Business Support Officer is called STEPS or
Success Through Performance Evaluation the method used for managers is called PACE
or the Performance Appraisal For Career Enhancement.

The appraisal forms are rated by the managers or concerned authorities on the basis of
Core Skills and Functional /Technical Skills. The comparison of the actual level of
competency and the expected competency level which is also defined as meeting the
success criteria gives a true picture of where these employee stands. The strength and
weaknesses are analyzed and according to that, a training program is arranged to
overcome the problems. In PTC, a standard measure is a Success Criteria that reflect the
behaviors needed to embrace to meet the future demands.

Rating System:

• The rating system is against competencies.

• Demonstrate a low skill /knowledge level in most of the core priority areas for the
job. Highly intensive or re-education regarding approach is required.

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• Demonstrates some effective skills /knowledge in the competencies areas for the job
but there are some important core skill gap to be developed.

• Demonstrate effective skills/knowledge in the majority of the core priority areas for
the job. Has attained standard expected of target group given the constraints of the
environment and job role. There are still some areas to be developed.

• Is extremely effective in all skills/ knowledge areas required in the job. Is performing
at the highest standards expected in the role.

Compensation:

PTC considers its employees not just as a cost but as a resource in which the company
has invested from which it expects valuable returns. Pay policies and programs are one of
the most important human resource tools for encouraging desired employee behaviors.
The advantage of paying above the market average is the ability to attract and retain the
top talent available, which can translate into highly effective and productive work force.

Extra Pay for Overtime:

If a worker works for more than nine hours in any day or for more than 48 hours in any
week in a non –seasonal or seasonal factory, he shall be entitled in respect of overtime
worked to pay at the rate of twice of his ordinary pay.

Discipline:

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It is the company policy to ensure that the required standards of performance and conduct
are maintained. The disciplinary procedure is intended only as a statement of Company
policy and management guidelines. It does not form part of the contract of employment
or otherwise have contractual effect.

BRAND PORTFOLIO OF PTC

PREMIUM BRANDS
Benson &Hedges
John Player Gold Leaf
MEDIUM BRANDS
Capstan
Wills International
Wills Navy Cut
Wills King
LOW BRANDS
Embassy Filters
Gold Flake
Embassy King
Player’s No.6]

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