INTRODUCTION STRATEGIC HRM

Strategic human resource management has been defined as the linking of human resources with strategic goals and objectives in order to improve business performance and develop organizational culture that foster innovation and flexibility . Strategic HR means accepting the HR function as a strategic partner in the formulation of the companys strategies as well as in the implementation of those strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Whereas strategic HR recognizes HRs partnership role in the strategizing process, the term HR Strategies refers to specific HR courses of action the company plans to pursue to achieve its aims.

STRATEGIC ROLES OF HRM

1. STRATEGIC PARTNER
Strategic partner of the organization is one of the four strategic roles identified in enabling a more effective HR role. As a strategic partner, the HR professional must be able to partner with the organization in developing plans that will align the human resources of the firm with the long term corporate goals and vision of the firm. He should be able to contribute to business strategy development by aligning HR jobs with strategic goals. He should be able to provide tools and create an enabling environment to actualize these goals. He is the eyes of his firm in the outside world and should be a liaison between his firm and the society, environment and government. He should be able to analyze work processes and recommend improvements where necessary. He should develop policies that will benefit the firm, Management and employees alike.

2. ADMIN EXPERT
As an administrative expert, the HR professional is expected to carry out administrative duties like providing the necessary tools needed for the organization to operate successfully. He should be able to manage the overall labor costs in his organization and plan for administrative budgets. As an administrative expert, the HR person should be an information manager. He should have at all times all data relating to employees and make same available at all times. The HR person should be able to discover new and evolving trends that will be beneficial to the company and advise Management accordingly. He should always conduct research to find out what is obtainable in other firms that makes them tick and advise management.

3. EMPLOYEE CHAMPION
The next strategic role of HR is Employee Champion. As an Employee Champion, it should instill a strong sense of pride and belong in working in the organization. The HR professional should be able to manage the selection, recruitment, training, development, career planning, performance management, succession planning, and Staff retention exercises. He is to determine the long term human resources needs, assess current resources and determine area of changes. He is to determine whether human resource needs can be sourced internally or externally. He is to conduct training needs assessment, to determine the type of training that will benefit the staff and organization. Conduct and arrange for trainings and determine the training results on the productivity of the firm. The HR professional manages and carries out career management in a way to align the employees' dreams with the organizational requirements. Also as an employee champion, the HR expert is to carry out performance appraisal exercises to determine staff performances in their present responsibilities a well as determining those that will be rewarded, promoted, demoted and recognized. As an employee champion he should be involved in grievance handling and disciplinary issues in the firm. He is to handle all employee related matters like leave issues, medicals, pension matters, housing and general welfare issues.

4. CHANGE AGENT
As a Change agent, he should be able to find out new ways of doing things that can move the company forward. He should be able to convince Management on the need for the change and address employees about changes. He should coordinate and facilitate the change process. He is to provide the tools and structures needed during change period. As an expert, he should be able to create a new organizational change without disrupting the firms business.

IMPORTANCE OF STRATEGIC HRM IN ORGANIZATIONS

Human resource management deals with any aspects of a business that affects employees, such as hiring and firing, pay, benefits, training, and administration. Human resources may also provide work incentives, safety procedure information, and sick or vacation days. Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.

Companies who work hard to meet the needs of their employees can cultivate a work atmosphere conducive to productivity. Human resource management is the best way to achieve this. Being able to plan for the needs of employees by thinking ahead can help to improve the rate of skilled employees who chose to remain working for a company. Improving the employee retention rate can reduce the money companies spend on finding and training new employees. When creating a human resources plan, it is important to consider employees may want or need and what the company can reasonably supply. A larger company can usually afford training and benefit programs that smaller companies cannot afford to offer. This does not mean that a smaller company should not engage in strategic human resource management. Providing specialized on-site training, even if provided by senior members of the company, and offering one-on-one assessment and coaching sessions, can help employees reach peak performance rates. An important aspect of strategic human resource management is employee development. This process begins when a company is recruiting and interviewing prospective employees. Improved interviewing techniques can help to weed out applicants that may not be a good match for the company. Strategic human resource management is essential in both large and small companies. In small companies, this may be as simple as the owner or manager taking a little time every day to observe, assist, and assess employees, and provide regular reviews. Larger companies may have a whole department in charge of human resources and development. By meeting the needs of the employees in a way that also benefits the company, it is possible to improve the quality of staff members. Taking the effort to provide employees with the tools they need to thrive is worth the investment.

PURPOSE OF STRATEGIC HRM ACTIVITES IN AN ORGANIZATION

In todays intensely competitive and global marketplace, maintaining a competitive advantage by becoming a low cost leader or a differentiator puts a heavy premium on having a highly committed or competent workforce. Competitive advantage lies not just in differentiating a product or service or in becoming the low cost leader but in also being able to tap the companys special skills or core competencies and rapidly respond to customers needs and competitors moves. In other words competitive advantage lies in managements ability to consolidate corporate-wide technologies and production skills into competencies that empower individual businesses to adapt quickly to changing opportunities.

In a growing number of organizations human resources are now viewed as a source of competitive advantage. There is greater recognition that distinctive competencies are obtained through highly developed employee skills, distinctive organizational cultures, management processes and systems. This is in contrast to the traditional emphasis on transferable resources such as equipment. Increasingly it is being recognized that competitive advantage can be obtained with a high quality workforce that enables organizations to compete on the basis of market responsiveness, product and service quality, differentiated products and technological innovation.

HUMAN RESOURCE PLANNING

The strategies developed to integrate workforce with organizational requirements is termed as Human Resource Planning. Human resource planning assists organizations to recruit, retain, and optimize the deployment of the personnel needed to meet business objectives and to respond to changes in the external environment. The process involves carrying out a skills analysis of the existing workforce, carrying out manpower forecasting, and taking action to ensure that supply meets demand. This may include the development of training and retraining strategies. Human resource planning has traditionally been used by organizations to ensure that the right person is in the right job at the right time. EXTERNAL FACTORS OF HUMAN RESOURCE PLANNING External planning factors are those that influence the business from the outside its direct control. Businesses operate in an external environment in which as well as competition from rivals businesses have to take account of legal, political, social and economic influences. SOCIAL FACTORS Relate to change is society and social structures. Changes in the structure of the population, and in consumer lifestyles and behavior affect buying patterns. LEGAL FACTORS Relate to changes in laws and regulations. Businesses must be careful to keep within the law and to anticipate ways in which changes in laws will affect the way they must behave.

LABOUR COSTS: The cost of labor is an important element of human resource management. It will depend on whether the type needed is capital or labor intensive and the extent to which the necessary skills are available and accessible. ECONOMIC FACTORS Relate to changes in the wider economy. A growing economy provides greater opportunities for businesses to make profits, so businesses welcome rising living standards. GOVERNMENT POLICIES: If suitable employees are not available it is important for the government and employers to invest in training and education to help unemployed people become more employable and to fill available vacancies. This is good for employers and the government, as it means that there are fewer people claiming benefits and there is more productive work taking place. ENVIRONMENTAL SCANNING The process whereby businesses examine the external environment to identify key structural changes in the world around them which affect demand and supply conditions for their products. INTERNAL FACTORS OF HUMAN RESOURCE PLANNING ORGANISATIONAL NEEDS: Organizations are constantly changing and therefore their human resources need to be able to adapt as part of this. Technological change can also affect organizations by having to employ less staff of different tiles that may needed to do a particular job, SKILLS REQUIREMENTS: Assessing the skills of current workforce at organization is the essential part for human resource planning as it enables to build up a profile of the training, experience and qualification that the employees already have. Also to see what can improve with the newer and older staff within the company. WORKFORCE PROFILE: Producing a workforce profile means that Managers can see what types of employees are working for them, including details such as their age, gender, ethnicity and ability.

HUMAN RESOURSE PLAN KASHF MICROFINANCE BANK LTD

INTRODUCTION TO HR STRATEGY Strategic human resource management at KMB is linked to the overall strategy of the institution. By playing the role of a strategic partner and a change agent, Human Resource Department of the Bank aims to provide all units with an effective workforce, ensure that all employees have ample opportunities for learning and development, and to act as an advisor to the field management, helping them in keeping all employees happy, motivated and productive. MISSION STATEMENT OF HUMAN RESOURCE DEPARTMENT HR Department at KMB aims to align its strategy and action plans with the organizational strategy, acting as a strategic partner to field and HO units in order to: Continually improve our recruitment processes and adopt innovative methods to ensure We attract and recruit the best people in the most effective way Provide employment packages, environment, organizational culture and support mechanisms, which will attract and retain people Recognize and reward people fairly and transparently and to actively demonstrate that we value our staff ELEMENTS OF THE HR PLAN 1- RECRUITMENT HRD aims to induct the right people, with the right skills, in the right place at the right time. This aspect of HRs job is crucial for the attainment of overall organizational objectives. This will be achieved in three ways: By inducting substantial numbers of fresh graduates, with required skill set, every year. By systematically inducting experienced professionals as and when needed, through a centralized recruitment system, advertising in papers and using head hunters for senior positions. By implementing appropriate selection tests and interviews at junior levels, and panel interviews at senior levels. 2- TRAINING & DEVELOPMENT Training and development of staff is considered to be of crucial importance for KMBs long term sustainable growth. This policy outlines KMBs commitment to enable its employees to

realize their full potential and improve the Banks performance through developing and motivating them. In order to ensure that the skill levels of all KMB team members are at optimal levels, detailed need based and performance driven training strategy is prepared to meet training requirements of the entire staff of the Bank. Most of the training is to be conducted in-house, while the rest (especially for senior levels), is to be outsourced, using high quality local and international training providers. 3- COMPENSATION AND BENEFITS HRD will ensure that salary package and benefits of the bank are at par with the market. Towards this end, every year the Bank will participate in a recognized benchmarking survey of banking industry. 4- PERFORMANCE MANAGEMENT SYSTEM A performance based, just and fair Performance Management System needs to be put in place, under which supervising officers evaluate performance of their people based on pre-agreed targets, covering multi-pronged performance criteria, using a balanced score card approach. 5- RETENTION & MOTIVATION OF EMPLOYEES The biggest challenge KMB will face in the coming years is retaining top talent within the organization. Efforts in this area will focus on the following HR actions: Systematic job rotation of all employees Career counseling Succession planning Systematic Reward and Recognition schemes. Offering senior level positions to existing employees through internal job postings, under merit based selection criteria Establishing a variety of internal communication channels i.e.: Newsletter Print magazine Monthly staff meetings Notice boards at central employee locations at all offices (like lunch room or main back-office circulation area etc.) Annual Voice of Employee survey

6- A NURTURING CORPORATE CULTURE KMB adheres to a number of core values, which form the basis of a nurturing and invigorating corporate culture. HRD needs to ensure that all KMB policies and procedures conform to the said culture. 7- COMPLIANCE WITH REGULATORY REQUIREMENTS HRD ensures that, at all times, and procedures are in line with Labor Laws, Taxation related rules and other governmental regulations MANPOWER PLANNING To prepare Manpower Plan and Budget at least once a year as part of the annual budgeting exercise. 1- Definitions & Basic Requirements A manpower plan and budget for any given year must be approved by the CEO/COO. Manpower requirements are provided by the functional head for preparation of the Manpower budget keeping in view the objectives and future needs of the department Annual Manpower plans and budgets are to be submitted to the Human Resource function by each function at least two months before the end of the financial year As part of the manpower planning process, functional heads will be required to send a list of surplus employees in their respective functions along with the manpower plans. 2- SCOPE OF PLAN Manpower plans and budgets must be finalized and approved before the next financial year starts in order to plan and provision for manpower needs for the coming year. 3- PROCEDURE To prepare a manpower plan and budget, the Human Resources function has to obtain required approvals as outlined below: i. At least once a year, (normally three months before the end of the operating year i.e. September), the Head of Human Resources sends out the following forms to the Functional Heads with a cover note indicating the date i.e. November by which completed forms are to be forwarded to the HR function: i. Manpower Planning & Budgeting Form (Form 1) ii. List of Surplus Employees Form (Form 2)

ii.

HR Representative Co-ordinates the budgeting exercise and provides assistance to the Functional Heads as and when requested.

iii.

Functional Heads complete, approve and return the forms provided specifying number of vacancies, estimated salary, surplus employees etc. to the Head of Human Resources by the specified deadline i.e October provided by the Human Resources Function.

iv.

In case there is no requirement or surplus in the head count, Functional Heads are required to return blank form to the requirement or No Surplus". Head of Human Resources indicating No

v.

Head of Human Resources checks and ensures that the Manpower Planning & Budgeting Form and List of Surplus Employees Form returned are correct, complete and consistently filled by each function.

vi.

Head of Human Resources prepares a summary report of the Banks overall manpower requirements based on information provided by functions and forwards it with the detailed forms to the CFO/Manager Finance or his/her authorized representative by the end of second week of November who reviews & recommend it and then sends it to the CEO/COO for decision.

vii.

CEO/COO receives and reviews the summary report, assesses the necessity of the requisitioned new positions and list of surplus employees.

viii.

CEO/COO approves as proposed or with modifications the summary Manpower plan and budget and returns it to the Head of Human Resources before end of November.

ix.

Head of Human Resources reviews the approved summary Manpower Budget and ensures that modifications, if any, are reflected in the forms provided by the concerned functions.

x.

Head of Human Resources distributes approved copies of forms to respective Functional Heads with appropriate comments.

4- SELECTION PROCESS i. Recruitment department is responsible for short listing the candidates from the recruitment pool. ii. Recruitment department will arrange the aptitude test for short listed candidates for grade D3 to C1.

a. Branch staff and female LOs recruitment team will go to their respective cities for conducting the test b. For rest of the staff test will be arranged at head office, Lahore. iii. Functional specialist will take the primary interview to gauge the suitability of candidates. iv. All the staff regardless of their cadre will have to appear for the panel interview. The grade wise structure of the panel interview is as follows

v.

An offer letter in duplicate will be issued to the successful candidates that state all the terms and condition of employment.

vi.

Candidate will return the duplicate set after accepting the terms and condition of employment.

vii. viii.

Offer letter will become the appointment letter from the date of joining. The HR department will provide the Employee Handbook to new employees on the first working day.

ix.

All employees will be asked to sign a Statement of Ethics which will state that the employees maintain ethical practices in all their financial dealings related to KMB. The objective behind this action is to ensure that the employees display honesty and integrity in all financial related activities and understand the stance of KMB on fraud.

CRITICAL REVIEW OF THE PLAN (OBSERVATIONS & LIMITATIONS) (a) Proper justification is required for each requisitioned position. Due consideration is given to various factors such as growth in business, work load of existing personnel, planned expansion of the department, external developments etc. while developing arguments justifying requisitioned position(s).

(b) In exceptional cases, a manpower planning and budgeting exercise may be initiated by the Human Resources function/ any concerned function at times other than the annual budget in response to a felt need e.g. establishment of a new branch, new unit etc. (c) Sources of manpower are identified on the basis of personnel requisition raised by the Functional Head(s). (d) First preference will be given to existing employee(s) to fill vacant positions. (e) CVs and lists of short listed applicants is maintained position wise/city wise i.e. CSO, teller, LOs, BMs and HO, and are referred to as per need. Soft copies of the data of all applicants will be maintained for at least 2 years. Human Resource Function will be the sole custodian of the Application Register and may refer to it for identifying any eligible candidate(s) for any future requisitioned position. Other Functional Heads and Senior Executives may also refer to the register as and when necessary. (f) All short listed employment applications are sent to the Requisitioning Function, for review and assessment.

PURPOSE OF HR POLICIES IN ORGANIZATIONS

HR policies allow an organization to be clear with employees on: The nature of the organization What they should expect from the organization What the organization expects of them How policies and procedures work What is acceptable and unacceptable behavior The consequences of unacceptable behavior

The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behavior and document displinary procedures, is now the standard approach to meeting these obligations. HR policies can also be very effective at supporting and building the desired organizational culture. For example recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year. IMPACT OF REGULATORY REQUIREMENTS ON HUMAN RESOURCE POLICIE The Human Resource Department has many legal laws, safety laws and requirements to abide by to prevent law suits against companies. The Human Resource Department must follow the rules given by the U.S. Department of Labor, the U.S. Equal Employment Opportunity Commission, the American with Disabilities Act of 1990, the Department of Homeland Security, and many other laws. Each law is accompanied by a set of regulations cover all aspects about the law. These laws were put in place to prevent any manager from feeling like they can fire or mistreat any employee without probable cause. To completely understand the Human Resource Law, anyone in a Human Resource position has to have the knowledge of their job and the resources to look up additional information if needed

to prevent lawsuits. The Human Resource Department is responsible for keeping records, writing and implementing good HR policies and monitoring the firms Human Resource Department closely. The Human Resource department has to deal with legal, safety and regulatory requirements on a daily basis. Understanding and knowing the laws will help to prevent managers from putting any organization into a lawsuit filed my employees. The Human Resource dept works with managers to make sure that written policies are in place, communication of the policy are understood by the employees. Common sense and compassion has been replaced by litigation. There used to be times when employees trusted that their employers would treat them right. Employees didnt feel any threats of losing their job due to illness, race, age or sex. Many organizations have hostile environments where employers feel they can do what they want and when they want. People are not treated fairly and thats the reason laws had to be put in place to protect the working class. Managers who take their power to another level have caused employees to file complaints. More and more lawsuits of discrimination are filed due to the negligence of employers. Just because a manager is put in a position to manage, that doesnt mean the manager knows the job and how to treat people fairly. We are all humans working to make a living but when someone feels like theyre being mistreated; they have no other choice but to defend themselves. Complying with the human resource law is important because its the right thing to do. It helps managers truly understand the human resource department laws in which everyone must abide by and it helps the firm from potentially having lawsuits filed.

HRM REVIEW REPROT TO HEAD OF HR

PEPSI COLA INTERNATIONAL Pepsi Cola International (PCI) Company includes in beverages industry. PCI is well-reputed multinational organization, which is doing its business in almost every part of the world. The company is registered in New York STOCK EXCHANGE U.S.A. to make a better control over the business. PCI has given the manufacturing rights to different local companies that are called as franchisee. Now these local companies are producing the licensed products on the behalf of PCI by using their trademark. To maintain its goodwill in the market the company has a strict policy while granting the manufacturing rights. PCI has standardized products all over the world (e.g. same in size, shape and quality). The franchises have to follow all the standards as given by the company. Even PCI has deputed mobile teams all over the world who check the franchises internal as well as external standards on a regular basis. It keeps the company image stronger than its competitors. PCI has given its license in Southern Punjab to SHAMIM & Co. situated in Multan near MDA round about. SHAMIM & COMPANY INTRODUCTION In Pakistan, at present SHAMIM & Co. is the largest production unit out of 11 franchisees. SHAMIM & Co. covers the area of Southern Punjab which consists of Multan city and its surrounding areas, Bahawalpur, Bahwalnagar, Dera Ghazi Khan, Sahiwal, Khanewal, Rajan Pur, Taunsa, Okara, Rahimyar Khan, Layyah, Vehari, Burewala, Pakpatan. The company is properly serving all these areas with quality products. Pepsi have an extensive network of distributors and well-trained sales staff to market and distribute its products in the whole of Southern Punjab, a territory that covers almost 150,000 esq. Pepsi cover a population of over twenty million people through more than 22000 outlets out of which 14,000 are exclusive Pepsi sellers. We provide a complete business package to our retailers including horizontal and vertical bottle coolers, point of purchase advertising, cash credit, etc. ORGANIZATIONAL HIERARCHY

HUMAN RESOURCES Pepsi is a manufacturing concern company. It is one of the leading multinational dealing in food and beverage industry. It has 157000 employees working with them and generating total revenues approximately over $32 billion in 2005.To remain a successful, the proper human resource planning is very necessary and Pepsi human resource department is trying it best to do this. Now we see Pepsi is at what extent successful in their Human Resource Management. HUMAN RESOURCE PLANNING IN PEPSI For human resource planning the strategic goals and objectives are the key activities. Same is the case in the Pepsi. With the start of the season the goals and objectives are set. The goals of the organization are To meet customer demand by providing quality products. To remain market leader and improve its brand quality. To provide good services to customers, employees, communities, and the environment.

All these objectives are set to achieve the profit maximization and a greater market share for the firm. And on the basis of these goals each department sets its own goals. Each departmental head is responsible to meet those goals and objectives and further subdivide into his department and then yearly goals are divided into months. Each departmental managers target is to meet these goals in each month. After each month they evaluate that whether they have met or not and if they are unable to meet those goals then they take necessary actions to cover them in the future. For example the goals of the production department are to produce right number of product items with standard quality, minimizing the cost of desired production and to provide the final product to the next department on time. HUMAN RESOURCE PLANNING PROCESS IN PEPSI In Pepsi managerial estimates are used to determine the total future need of Human Resources in the organization. Than human resource department take actions to fulfill these needs. The employees hired both on permanent basis and temporary basis. After the season the temporary employees are layoffs. Normally the temporary employees are hired in production department. Tools and Techniques of Human Resource Planning Many tools are available to assist in human resource planning. In Pepsi the most commonly used tools are

1. Succession Planning. (Managerial employees) 2. HRIS (non managerial employees) RECRUITMENT IN PEPSI In Pepsi the issue of employees hiring is more critical as compare to other organizations because there is cyclical demand for employees. Pepsi uses both methods internal and external for recruitment depending upon the number of the employees required. INTERNAL RECRUITMENT METHODS External recruitment is necessary for the organizations like Pepsi that are rapidly growing because there are large demand of people and internal sources are not sufficient to fulfill this demand. Pepsi use following methods of internal recruitment to attract their existing employees to apply for jobs available in Pepsi 1. Job Posting and Biddings 2. Memos to Supervisors EXTERNAL RECRUITMENT METHODS Pepsi also use external recruitment methods to recruit a pool a qualified employees so that the most suitable persons can be hired for the job vacancies available in organization. Pepsi use the following external methods of recruitment 1. Job advertisement 2. Employees referrals and walk-ins 3. Campus recruiting SELECTION IN PEPSI There are two different process of selection in this company for non managerial and managerial employees 1- SELECTION PROCESS FOR NON MANAGERIAL EMPLOYEE First of all a pool of applicants are attracted. All applicants provide information about them in form of resume. When resume received from applicants. Now, the HR department evaluates the information and considers the application which cover the criteria otherwise applications are neglected, this process is called short listing. After the short listing a skill test is taken, if test scores meet the criteria than employee is considers for interview. After this the final selection is made. HRD has advisory capacity but actually, the selection decision is made by immediate manager.

2- SELECTION PROCESS FOR MANAGERIAL EMPLOYEES First the candidate applies or sends their resumes than an entry test is conducted by the organization. If the candidate is successful in this test than he move towards the next step of initial interview and then final selection is conducted by the manager of concern department and he makes the final decision about selection. ORIENTATION IN PEPSI Orientation is the process of introducing of new employees to the organization, their work units, and jobs. In Pepsi there are two types of orientation exist. In Pepsi there are two types of orientation exist 1. Official orientation provided by the organization. 2. Unofficial orientation provided by the co-workers. Official orientation is for the managerial employees and unofficial orientations are for the non managerial employees. LENGTH AND TIME OF ORIENTATION In Pepsi, the length and timing period of the orientation program is very short usually from 1 to 2 hours. There is no concept of orientation kit in Pepsi. They are not providing their employees orientation Kit. TRAINING IN PEPSI Training for new employees is very necessary because without the proper training of employees no organization can achieve maximum output from their employees. Every organization offers their employees training so that they can sharp their skills and perform their jobs well. Pepsi is also offer to their employees training. They are doing both off the job and on the job training. 75% on the job training and remaining is classroom training. Following are the commonly used methods of training in Pepsi Understudy assignment. Coaching. Classrooms training. University and professional associations.

Off the job training methods are used by the non managerial employees or technical staff. Classrooms training and university and professional association are generally used for managerial employees.

TRAINING EVALUATION Training Evaluation is very necessary because there are a lot of benefits of training Evaluation. We come to know our strengths and weaknesses through training evaluation. But in Pepsi, there are no proper training evaluation system is existing. CAREER DEVELOPMENT IN PEPSI Pepsi provide career development opportunity only for managerial employee. Organization secures the managerial employee future and gives them best opportunity to improve their knowledge by helping them in studying different courses related to their job. In Pepsi there is no concept of career development for the non-managerial employees because of this there is a very high employee turnover rate in Pepsi. PERFORMANCE MANAGEMENT SYSTEM IN PEPSI Performance management system is the important components of human resource management. Through this the organization identifies the strong and weak points of their employees and tries to rectify them. In Pepsi they have no proper way of evaluating the performance of their employees. WHO EVALUATE THE EMPLOYEES PERFORMANCE? Employee immediate manager evaluate their performance on regularly basis. on the bass of the evaluation the manager discuss with employee his strong and weak points and guide him how to overcome their weakness. The performance of the Managerial employee is measured by the manager of the department. COMPENSATION AND BENEFITS IN PEPSI Compensation and Benefits motivates the employees and these must be offer by the organization. In Pepsi there is no concept of compensation and benefits for the non-managerial employees but Pepsi offer benefits and incentives to the managerial employees. These includes Medical allowances House rent Education allowances Convince allowances

SWOT ANALYSIS OF PEPSI STRENGTHS OF PEPSI: Pepsi has a strong recruitment system. Pepsi has a database which contains the particulars of all the employees within the organization. WEAKNESSES OF PEPSI: Pepsi has no proper Human Resource Planning Pepsi has no proper selection system. Pepsi has no proper way for orientation system for new employees. Pepsi has no proper performance management system. Pepsi has not provided good career opportunities for their employees.

OPPORTUNITIES FOR PEPSI: Pepsi is going to establish online performance management system for their employees. Pepsi is going to establish proper recruitment system for new employees.

THREATS FOR PEPSI: Pepsi has a very high employees turnover rate. Pepsi has no proper career development system that result employees job dissatisfaction. Pepsi has a small selection ratio for non managerial employees.

RECOMMENDATIONS Pepsi is reputed business firm in its relative markets. They have some weaknesses which should be minimized; there are some suggestions for Pepsis HRM, which as follows: Increase compensation and benefits to retain their existing employees also should have a better career development strategy to make it happen for their employees to go up the organizational hierarchy. The performance evaluation should be more proactive and streamline with the involvement of HR so that the process is smooth without any doubt of biased evaluation. A better orientation strategy should be adopted to socialize their employees with the organizational rules and regulation also they should provide orientation kit to its employees. The use of training/orientation kit will be helpful during orientation training. Furthermore, the orientation session should be increased to help better understand the organization by new employees.

CONCLUSION
As global business competition shifts from efficiency to innovation and from enlargement of scale to creation of value, management needs to be oriented towards the strategic use of human resources. Strategic human resources management practices enhance employee productivity and the ability of agencies to achieve their mission. Integrating the use of personnel practices into the strategic planning process enables an organization to better achieve its goals and objectives. Combining human resource practices, all with a focus on the achievement of organizational goals and objectives, can have a substantial affect on the ultimate success of the organization. To manage future operations effectively, it is essential that companies produce "business leaders" and "innovators" through SHRM Approach

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