Professional Documents
Culture Documents
Prepared for: Mr. Murtaza Ilyas Instructor, Human Resource Management Iqra University, Karachi. Prepared by:
Executive Summary
May 08, 2010 Mr Murtaza Ilyas, Course Instructor Human Resource Management IQRA University Karachi We are pleased to present our final report on Orix Leasing Pakistan. This report includes the information on the company Orix Leasing. In making this report we collected data by visiting Orix Leasing Office in Korangi. We also collected data from publications and various international business magazines. The report also includes researches made by us through internet. We have tried our best to gather best possible information for this report. We are of firm belief that this report will not only provide you with all necessary information pertaining to the topic but will also cover all aspects and hopefully meet your expectations.
This report includes Company General Over View, Business over View, Human Resource Department Planning, Role, Hiring Methods, and Development of Employees. It also includes Performance Management and Employee Compensation Policies practiced in the organization. It will be our pleasure to provide you further details if required.
Sincerely,
Mission
ORIX seeks its development through its domestic and international presence by constantly anticipating and
monitoring emerging trends and offering new and innovative products that create real and lasting value for our customers.
ORIX pioneers, introduces and offers value added products which are not only competitive in terms of
desirability and price, but also fulfils the needs of our customers by constantly increasing our value to them as an efficient source of financial services
ORIX makes all efforts in enhancing superior professional competencies by creating a culture that fosters
openness and innovation, promotes individual growth and at the same time rewards initiative and performance. ORIX contributes to society through participation in poverty alleviation programs, provision of financial assistance at grass root level and assistance to charitable causes.
Overseas Associates
The Companys international activities started in 1993 with the establishment of a leasing company in Oman. ORIX Leasing Pakistan Ltds overseas associates are: Oman ORIX Leasing Co SAOG (OOLC) 1993 ORIX Leasing Egypt SAE (OLE) 1997 Saudi ORIX Leasing Company (SOLC) 2001 MAF ORIX Finance PJSC, UAE (MAFO) 2002 BTA ORIX Leasing JSC, Kazakhstan (BTAO) 2005
Associates in Pakistan
ORIX Properties Pakistan (Pvt) Ltd. (OPPL) 2008 Paid Up Capital Rs.300 million Share of ORIX Corporation 45% Share of OLP 45% Share of Local Investors 10%
Primary objective of the company is to acquire, develop and manage real estate projects
Organizational Culture
ORIX holds a system of norm and belief that support the organization's capacity to receive, interpret and translate signals from its environment into internal behavior changes that increase its chances for survival, growth and development ORIX provides good working place to its employees so that they work comfortably which would ultimately result in high performance, achieving targets on time effectively and efficiently. Employees at ORIX understand their own jobs as well as the way in which their own work interrelates with and influences that of other employees. They have a clear set of dos and donts. Personnel are taught to evaluate the effects of their own behavior on others; so as to maximize their own effectiveness. At ORIX employees are encouraged to do brain storming and question concepts and they are motivated to wishful thinking as to make the subject company an excellent brand name in the market. ORIX gives feed back on how ever employee is performing and keeps motivation them to do even more better job. The main thing that was highlighted was the ORIX knows how to provide employee satisfaction and customer satisfaction. The process are improved and rectified so that humans are not blamed for any kind of deficiency whether it is organization or individuals. The overall culture of OLP is based on open two way feed back to rectify and improve our process. The two way communication helps us to improve mutual trust and also motivate our employees to explore new ideas and set new trends among the team members and colleagues of other departments. OLP encourages its employees to take risk and face challenges. OLP recognizes the importance of Risk Management and have an effective internal control system designed for continuous risk assessment and management.
It even contains positive attitude by providing mental & physical comfort to the department / employees by excellent working environment which can be defined in two words, sharing & caring. ORIX has an environment that is no more different then of a family. But still some attention should be given on the motivation factor of the employees. ORIX just not says that we provide a friendly environment but it could be seen by the way our employees do their work. They are allowed to try new things and take risk while doing so. If something goes wrong then we look for the loop holes in the system that could not stop the problem from happening.
High Turn over Rate Rising Inflation Economic Slowdown and Recession Selection Process Hindrances Lack of Incentives for Industrialists
Business Overview
Major Products
Other Products
Micro Finance Agri Lease Working Capital Factoring Certificates of Deposit
Target Market
OLP extends lease facility to all segments of the market. However, its target market remains small to mediumsized companies, spread across different manufacturing and services sectors including textile, sugar, cement, pharmaceutical, engineering, energy, food, paper and board, financial services and distribution. Being the first leasing company to enter this segment of the market, OLP understands the needs of its niche market and has been able to achieve a high degree of risk diversification.
Manpower Planning and Budgeting Human Resource Planning (HRP) aim at identifying the staff requirement through out the organization at the beginning of a financial year in order to help management in determining the Annual HR Headcount Budget TECHNIQUES USED IN MANPOWER PLANNING How many staff do we have/need? How are they distributed? What is the age profile? How many will leave in each of the next five years? How many will be required in one, five, ten years?
To ensure control of management over recruitment of permanent staff in a year, overall staff cost and proper allocation of human resources at departments / branches. To obtain approval on the Annual HR Budget along with the staff recruitment in a year that will help HRD in streamlining recruitment process (including searching and selection of potential candidate, structuring of compensation package etc) and in planning other employee-related activities (training, orientation, benefits etc).
HRP Process: At the beginning of each financial year, Departmental Heads will be required to fill in and submit Job Identification Form to HRD. In case of Northern Branches, the forms will be filled by the Branch Managers and will be forwarded to HRD after getting them approved from the Regional Head North.
The job identification will be required for all new permanent employees in the Job Identification Form
The existing strength of the permanent employees in the Department/Branch as on 30th June will be considered as the Current # of Employees of the Department/Branch; Replacements for the previous years resignations will be considered entirely as a new headcount not as a replacement. The anticipated promotions in the coming year will not be considered as a new headcount and will not be mentioned in the Job Identification Form.
HRD will prepare Human Resource Planning Sheet for CEOs review and approval. On the basis of approved sheet, HRD will then compile the results and prepare Consolidated HRP
All Departments / Branches will be provided with their approved HRP Sheet, which they can refer in order to initiate the recruitment process.
HRD will conduct quarterly review in order to inculcate changes and to ensure control over the recruitment process.
Recruitment of Permanent Staff Purpose: To determine manpower requirement at different levels in the organization and to fill the vacancy by recruiting permanent staff members. The process involves: Identifying sources of potential recruits Assessing and selecting suitable candidate for the vacancy Appointing and orienting staff member by on-job training and evaluating his performance during the probation before confirming his services. Recruitment Channels:
Department will submit Staff Requisition Form to HRD in order to help them in initiating the Search Process. The Recruitment channels used in Search process can be
a) b)
c)
Internal Advertisements Available Resumes External Advertisements Executive Search Consultants E-mail & online applications
d) e)
HRD will select the channel of search process depending upon the nature and requirement of the job, person specification and available resources. In case internal sources / available resumes fail to satisfy the criteria then Head of HRD can utilize sources like external advertisement and professional agencies and consultants. In case of Northern Branches, Branch managers in coordination with HRD will initiate the search process and initial screening.
HRD will prepare Interview Schedule keeping in mind the availability of the interviewer. The interviewer will be given Candidate Assessment Form along with the respective resumes.
FH will submit assessment, recommendations and list of short listed candidates to HRD. In certain cases HR will short list candidates profile and forward to concerned departments. Head of HRD will conduct interviews of short-listed candidates
After interview, HRD will prepare Employment Approval Form for CEOs review and approval.
CEO will make the final decision after taking into consideration the information provided in the Employment Approval Form. Before approval, CEO can also interview the candidate if needed. In Branches: Branch Managers in consultation with Regional Head North will interview the candidates and will forward the resumes along with their assessments (of minimum five candidates) to HRD.
Head of HRD will visit branches for interviewing short-listed candidates. After interview, HRD will prepare Employment Approval Form for CEOs review and approval.
CEO will make the final decision after taking into consideration the information provided in the Employment Approval Form. Before approval, CEO can also interview the candidate if needed. Final Selection: After obtaining approval, Head of HRD will inform FH / BM about the approved salary and designation of the candidate.
HRD will communicate the final offer to the selected candidate by issuing an Offer letter.. If candidate fails to respond to the offer within specified period after the issuance of the letter, his selection will be treated as cancelled. Offer letter will contain terms & conditions and benefits.
HRD will inform selected candidate to submit the following on the date of joining: a) Employee Information Report b) Supporting Documents Appointment and Orientation: In Karachi: On the date of joining, employee will report to HRD and will submit Employee Information Report and supporting documents. In case of certificates, employees are required to bring originals for verification. HRD will brief the new member about the company and its policies.
New incumbent will be sent to the FH who will introduce him to the co-members and explain the job responsibilities as specified in his Job Description. He will also be introduced to other staff members with whom he will be required to interact frequently.
FH will be required to submit Employee Joining Report to HRD on the date of joining.
In Branches: At the date of joining, employee will submit Employee Information Report and supporting documents to Branch Manager. In case of certificates, branch managers are responsible for verification and HRD will only accept the certificates if they are duly signed by the branch managers. Branch Manager will be responsible for an orientation session and submission of complete documentation to the HRD. BM will also issue the JDs. Issuance of Appointment Letter:
HRD will issue an Appointment Letter after receiving all the required documents as specified under Appointment Check List
Reference check letters will be sent to the three references provided by the inducted employee that are to be completed and sent back to HRD before the employees date of confirmation. HR will also send inquiry letter to the previous employer for reference check.
Fresh graduates will require at least one reference from the last institution attended.
Probation: The employee will be required to serve six months probation period. In case the FH / BM is not satisfied with the performance of the employee; the probation period could be extended by a maximum of three months. During the probation period the employee will be covered under Group Health Insurance (as soon as all the formalities are completed) and Group Life Insurance (90 days from the date of joining) but he will not be entitled to any other staff benefits until his confirmation. During the Probation period, employee will not be entitled to extended privilege leave. If he wants to avail the extended leave it will be treated as unpaid. In cases of genuine need, he can avail extended leaves with the permission of FH / BM and Head of HRD. It is required that at least two references should submit their responses to HRD during the probation period for the confirmation of an employee.
HRD will issue Probation Review Form to the FH / BM before the completion of the probation. The FH / BM will complete and return this form to HRD.
In case FH / BM recommend an increment / promotion, Head of HRD will obtain approval from CEO/DMD and will communicate it to F&A for updating employees status. Either staff member or management can terminate employment during probation as per the period stipulated in the Appointment Letter.
Confirmation:
HRD will issue Confirmation Letter after receiving all the required documents as specified under Confirmation Check List. After successful completion of the probation period the employee will be entitled to all benefits as allowed under the Companys Policy. Rules: We are an equal opportunity employer and there is no discrimination on the basis of race, gender, religion or ethnic origin. Dismissed and terminated employees will not be reconsidered for employment. Dependent relatives of a deceased staff member shall be given preference while selecting a replacement for a vacant position provided he fulfills the selection criteria. The minimum age for employment is eighteen years. Existing staff members wishing a transfer and fulfilling the necessary job requirements will be considered and preferred over equally qualified external candidates. At the time of recruitment, FH / BM must maintain confidentiality regarding approved salary of the new employee.
FH / BM are responsible for communicating significant revision in an employees Job description to HRD. Changes in Job description will only be incorporated by HRD.
In case of employees below Assistant cadre, HRD can also utilize External sources for contract employees.
Head of HRD will conduct interviews of short-listed candidates. In case of Branches, Branch Manager in consultation with the Regional Head North will submit resumes of the selected candidate along with their recommendations. After interview, HRD will prepare Internee / Contractual Staff Approval form for CEOs review and approval. Head of HRD will inform the FH / BM and the candidate about his salary and duration.
HRD will finalize the Contract Agreement and will get it signed from the staff member.
Contract Staff will not be entitled to any staff benefits during their Contract period. During the Contract period, employee will not be entitled to extended privilege leave. If he wants to avail the extended leave it will be treated as unpaid. In cases of genuine need, he can avail extended leaves with the permission of FH / BM.
EMPLOYEE SATISFACTION FORM:Date: ___________ Designation: ____________________ Employee Name: __________________ Department: ______________________
Kindly rate your satisfaction level on the questions given below: 1) How satisfied are you with your job and job security in your company?
1 Very Dissatisfied 2 Dissatisfied 3
Neither satisfied nor Dissatisfied
4 Satisfied
5 Very Satisfied
2) How satisfied are you with your level of involvement in project planning and execution as compared to your work responsibility?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
3) How satisfied are you with your direct supervisor/manager? Does he/she keep you well informed about whats going on in the company?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
4) How satisfied are you that your views and participation are valued?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
6) How satisfied are you with the professionalism and morale of the people with whom you work?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
7) How satisfied are you with the performance management system and the outcome? Do you receive appropriate recognition for your contributions?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
08) How satisfied are you with the training and development provided by your company?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
09) How satisfied are you with your salary in the company regarding its competitiveness with the market?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
10) How satisfied are you with the opportunities to advance in your company?
1 Very Dissatisfied 2 3 4 5 Very Satisfied
Phase III: Performance Review the employee offers and receives feedback about his or her performance on the 17 performance dimensions identified. This is done formally through two forms Post-Review Feedback: formal one to one feedback is provided on performance to each employee appraised, this feedback is developmental in nature, and uses the past performance behaviors to help staff to do better in future. This feedback may involve seniors other than the appraiser and/or the HR department. The Performance Assessment Tools This system is divided into two reviews Annual Review: (Performance Development Statement 1), that is more detailed and forms the basis for increments & /or promotions. More formalized and involves the Supervisor, the HR, & the Panel. Mid Year Review: (Performance Development Statement 2) Mid Year Review. Each employee is also evaluated formally on a mid-year basis. The objective of this to let him/her know formally how she/he stands as far as performance review is concerned. This is also done through a form, which is simpler & gives adequate feedback. This involves the Supervisor and the HR only.
Compensation
Compensation policy aims at determining the balanced and competitive compensation package for employees at various levels in order to attract and retain a productive work force. The main objective of this policy is To design the package in alignment with the industry / market rates. To establish the package that commensurate with the image of the Company Factors to determine Compensation Package: The salary is determined after taking into consideration the following factors: The position offered (Designation) Educational qualification Work experience
Professional background
Salary Break-up: The break-up of the monthly salary varies as per the designation of the employee. Assistant Managers and above: Gross Salary Basic Salary House Rent Utilities Assistants to Senior Officers: Gross Salary Basic Salary 100% 64.52% of Gross 100% 66.67% of Gross 45% of Basic 5% of Basic
House Rent Utilities Below Assistants: Gross Salary Basic Salary House Rent Utilities
100% [Gross-Rs. 660 (Special Allowances)] * 64.52% 45% of Basic 10% of Basic
Company Allowance (COLA) Rs. 280 Government Allowance Other Allowance Payment of Salary:
On the last working day of the month, salaries are directly transferred to the employees bank account by the F&A
If the employee joins the company during the last week of the month his salary of the number of days worked in that month will be paid in arrears in the following month. Increment in Salary: HRD will inform both the employee and the F&A regarding the changes in the compensation package due to increments. Deduction of the Salary: It includes: Income tax Monthly installments of loans and advances taken from the company Deduction due to unpaid leave Provident fund deduction Others (if any) Overtime:
Employee below the level of Assistant, who is asked to work and who agrees to work on any day beyond normal working hours, is paid overtime Prior approval from FH / BM and Head of Administration is required to work overtime
After receiving the Overtime sheet from the employee, Administration will calculate the overtime amount for the month and will submit the sheet to the F&A for the payment.
Calculation of hourly overtime rate include a: Basic Salary b: All Allowances (COLA, Government Allowance, Other Allowance) c: a + b d: Daily Wage Rate e: Normal working Hours (9 to 5 i.e. 8 Hours) Hourly Rate: a + b = (c / d) / e Advance Salary: If an employee has applied for extended privilege leave and is not physically present to receive the salary on the normal payday of that month, he can apply for the advance salary. Staff member applying for advance salary facility must specify his request on leave application form to the HRD.
The HRD will verify the leave information given in the form and will forward it to F&A for payment.
SALARY RANGES
Designation General Managers Assistant G. Managers Senior Managers Managers Assistant Managers Senior Officers Officers Assistants Below Assistant From 230,000 150,000 75,000 50,000 40,000 21,000 17,000 9,000 7,000 To 290,000 200,000 120,000 80,000 64,000 35,000 29,000 15,000 11,000
Conclusion
This has been an effort to highlight the overall importance of the hr department for the olp limited co in Pakistan. We can clearly see that without the management, foresight and vigor of the HR Team the running of OLP as an organization will not be possible. The department has centralized all HR operations and has proved that effective management is possible with a handful of people armed with the latest technology and the most effective, organized management plan.