Hr FunctionsIN PEL

(Lecturer)

MBA SP09-B4 “A”

DEPARTMENT OF MANAGEMENT SCIENCES

COMSATS Institute of Information Technology

Comsats Institute Of Information And Technology

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ACKNOWLEDGEMENT A million thanks to the Almighty Allah, for his blessings to enable us to fulfill this training, but interesting job for the completion of our project. I would would also also like like to take take this this opport opportun unity ity to exten extend d my appre apprecia ciatio tion n and and gratitude to MR. MR . GHULAM HUSSAIN

without their counseling and parallel

skills I would have never been able to prepare this Project. We also want to pay a bundle of thanks to each and every person who has put indeed effort to make this project possible. It is also our duty to pay thanks to our parents for the moral and financial support. We owe owe spec specia iall than thanks ks to PAK ELEKTR ELEKTRON ON LIMITE LIMITED D Company Company for assistance, Development Work and data collecting. And especially We also want to say thanks to HR Executive (R & S) FARAZ QAYYUM (Human resource department). Finally we owe many thanks for the participation of all group members and their coordination to accomplish the task.


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EXECUTIVE SUMMARY Project is given to cover all the aspects about a specific product or service acco accord rdin ing g to the the topi topic c of proj projec ect. t. We have have made made proj projec ectt on “Human Resource Resource practices” practices”.. And we examine and explained the human resource practices of Pak of Pak Elektron Limited. Limited . Which is one of the most famous and large electronic company .In our analysis of human resource practices we have cove covere red d all all the the impo import rtan antt part parts s of the the HR depa depart rtme ment nt of PEL. PEL.Fi Firs rstt we discussed about the history of the company, that how and when company esta establ blis ishe hed d and and star starte ted d its its prod produc ucti tion on.. We have have disc discus usse sed d its its vision, mission, and objectives. objectives . As we were conducted our research on human resource practices. So our main focus was on HR department. department. We explained the history of the HR department in PEL. After that we discussed about the worki wo rking ng or functi function onal al areas areas of the the comp compan any. y. And And also also expl expla ain the the management structure of all the departments. After this we mentioned all the functions of the HR department performed in PEL.We discussed that how Hr department do planning about recruitment and selection procedure . How company makes its job description form. After that we also discussed the training training and development programs programs.. We also explained why there is need of training and development .how Company trained the new employees. And how company making programs for the existing employees if there is any performance gap. After that we justify how performance management and apprais appraisal al system system work work in comp compan any y and and what what step steps s are are made made by the the Performance Performance management management to make the performance good of employees. employees. And how the company evaluates the performance of employees on annually, Semi annu annuall ally y and and quarte quarterl rly. y. After After that that we elabor elaborat ate e the compens compensatio ation n and benefits system of Employees. How employees are made satisfied by giving incentives. And in last we mentioned the relation relations s of manageme management nt with with employees and labor of company and what are benefits are given to labor by the management.


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CHAPTER NO 1 INTRODUCTION 1.1 History Pak Electron Ltd. (PEL) was established in 1956 with the collaboration of M/S AEG Germany .And PEL is one of the oldest industry in Pakistan among those who have involved in the production of electrical equipments used for different purposes. In 1948 The Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited. In October 1978 The company was taken over by the SAIGOL GROUP, GROUP, which is one of the leading industrial and commercial groups of Pakistan.PEL is the industry in Pakistan whose products products and services is not only familiar in Pakistan but also have a great wattage In the foreign industries. PEL products are reorganized as the quality and valuable products in whole world. Its inspection tells that they they from from its its day day of esta establ blis ishm hmen entt till till now now have have been been made ade a gre great develop developmen mentt in differe different nt products products by using using advanc advance e technol technology. ogy. From From its establi establishm shment, ent, the company company has been been working working for the advanc advanceme ement nt and development of engineering know-how in Pakistan. And its history also told that PEL is not only doing researches that how they can use and produced best technology but also producing many technicians and engineers to cope with modern technology and development.


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PEL has been continuously adding new products to its range. As a result, PEL has registered a significant increase in its sales volume, during the last ten years In 1978 The Saigol Group of Companies purchased major shares of Pak Electron Limited. At that stage the company was only manufacturing transformers and switchgears. And after the making profit in those products with the help of Saigol Saigol Group managem management ent took its 1 st step step towards towards the product production ion of air conditioners. In 1981 BY technical collaboration with the help of Germany general corporation PEL introduced the window type air conditioners in Pakistan Industrial market. Ever since their launch, PEL air conditioners have a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. Today, PEL air conditioners hold approximately 45% market share. In 1983 Production of DOUBLE SIDED PLATED THRU HOLE PCBs initiated. In 1986-87 The company started manufacturing of refrigerators refrigerators in technical collaboration collaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great demand. Today, PEL Crystal has 30% market share. Its cooling perf perfor orm mance ance is test tested ed and and appr approv oved ed by Danf Danfos oss, s, Germ German any y and and its its manufacturing facility is ISO 9002 certified by SGS Switzerland.


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In 1987 Within the refrigerators manufacturing PEL started to manufactured deep freez freezers ers with with techn technica icall colla collabo bora ratio tion n of M/s Arist Ariston on of Italy Italy.. Becaus Because e of durability and high quality, PEL deep freezers are the preferred choice of companies like Unilever. In1993 With With techn technica icall collab collabora oratio tion n of NECCHI NECCHI of Italy Italy,, the the comp compan any y starte started d assem assembly bly and and manu manufac factur turing ing of compre compress ssors ors for refrig refrigera erato tors rs and and deep deep freezers. In 2006 As the technology was going to be more and more advanced customers demand was shifting from window type AC to more small and comfortable Ac.so Company started to manufacture the spilt Air conditioner to cope with the customer demand and changing industry environment. When spilt air conditioner came in market it was well received by customers so by this company started to expand its products not only in local market but also in at national and international market. Now a day PEL have expand its electrical appliances to export at national market n making a large profit for company as well as for country to. 1.2 Vision

“To excel in providing engineering goods and services


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through continuous improvement.”

1.3 Mission Statement



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

customers and maximize returns for all stakeholders through optimal use of resources. 

To focus on personal development of our employees to meet future

challenges. 

To promot promote e good good governa governance, nce, corporate corporate values values and a safe safe workin working g

environment with a strong sense of social responsibility.

1.4 Objectives The objectives and mission for which the company is established are as following: 

To carry carry on the busine business ss or busine businesse sses s of manuf manufact acturi uring, ng, selli selling, ng,

insta installi lling, ng, maint maintain aining ing design designing ing and deali dealing ng in all kinds kinds of electr electrica icall equipment.


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

To carry on any business whether manufacturing or otherwise which

maybe found convenient to undertake in connection with or in addition to any of these objectives mentioned above? 

To do all such things that is incidental for the attainment of the above

objectives or any of them. 

To produce high quality and standard products.



To produce equipment to be used in numerous projects of national

importance. 

To secu secure re a high high shar share e / quot quota a of WAPD WAPDA’ A’s s dema demand nd for for powe power r

products. 

To produce skilled workers and technicians through its apprenticeship

schemes and training programs for engineers and technicians. 1.5 PEL Company Structure Pak Electron Limited (PAEL or PEL) is the pioneer manufacturer of electrical goods in Pakistan. The company is listed on all the three stock exchanges of Pakistan. Principal Activity 

Manufacturing



Sale of electrical capital goods and domestic appliances.

Now, PEL is operating a single business entity without any division. 1.5.2 Lahore Factory Factory In Laho Lahore re Fact Factor ory, y, Refr Refrig iger erat ator ors, s, Tran Transf sfor orme mers rs,, Ener Energy gy Mete Meters rs,,

and and

Switchgears are produced. Previously, Window AC and Deep freezers were also produced in Lahore Factory but PEL quit these operations. However, PEL has restarted the production of Deep freezers once again at Lahore factory. 1.5.3 Divisions By divisions mean company performing its activities in two major departments which are


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

Appliances Division.



Power Division.

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Appliances Division: Division : PEL’s Appliances Appliances Division is the flag carrier of the Saigol Group involved

in home appliances manufacturing. Air conditioners. 

Refrigerator.



Deep freezers.



Microwave oven.



Washing machine.



Generators.



Power Division



Transformers



Switchgears



Kiosks



Compact stations



Shunt capacitor banks



Energy meters



Generators

All these electrical goods are manufactured under strict quality control and in accordance with international standards.PEL is one of the major electrical equipment suppliers to Water and Power Development Authority (WAPDA) and Karachi Karachi Electric Electrical al Supply Supply Corporat Corporation ion (KESC), (KESC), which which are the largest largest power utilities in Pakistan. Over the years, PEL electrical equipment has had been used in numerous power projects of national importance in Pakistan. In spite of stiff competition from emerging local and multinational multinational brands, PEL Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing


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prod product uct range ranges, s, thus thus giving giving the Pakist Pakistan anii mark market et acce access ss to innov innovati ative ve,, affordable and quality products. Over the years, PEL electrical equipment has been used in numerous power proje projects cts of nation national al impor importan tance ce withi within n Pakis Pakista tan. n. PEL PEL has the privil privileg ege e of getting getting its equipme equipment nt approved approved and certifie certified d by well-rep well-reputed uted interna internation tional al consultants such as:

Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France 1.6

Product and Services

1.6.1 Products 

Refrigerators



Deep freezers



Microwave oven



Transformers



Generators.



Energy Meters



Switchgears



Kiosks



Compact stations



Shunt capacitor banks



Air conditioners.



Window AC



Spilt Air conditioner



Washing machine.


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1.6.2 Services 

Major electrical equipment suppliers



TO Water and Power Development Authority (WAPDA).



Karachi Electrical Supply Corporation (KESC).



Shop fitting services



Shop fitting suppliers



Shop fixture.



PEL Repair center

1.7 PEL Functional Areas

PakElektron ElektronLimited Limited Pak

Purchasedepartment. department. Purchase

Manufacturingdepartment department Manufacturing Qualitycontrol controldepartment department Quality Humanresource resourcedepartment department Human dep artment Depadepartment. Depadepartment. Marketingdepartment department Marketing SalesDepartment Department. . Sales Financedepartment. department. Finance Informationtechnology technologydepartment department Information

1.7.1 Manufacturing Department. This department involves the manufacturing of different products. Actually this department is also called the assembled department. Because different


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parts of products are import from specialized countries and assembled or joined in this department and than final products are send to market for selling. 1.7.2 Human Resource Management Department The department is engaged in managing the human resources the company has. All the basic functions of HR are performed by this department. But the most common function of HR department is the selection & recruitment and derecruitment. This department is further divided into sub department like Research and development department .This . This department involves that how they can cope with advance technology and how can train their employees to cope with this new technology. 1.7.3 Quality Control Department This department takes action in quality control programs. programs. Make strategies and planning that how they can make their products qualtiable and valuable .and how they should follow the international standards of quality control of PEL to make their more safe. 1.7.4 Marketing Department Marketing department is engaged in performing all the marketing activities like advertising, promotion and make sure the availability of the products in the markets of both national and international levels. 1.7.5 Sales Department This department involves the activities of sales. That how much price should be fixing of a product according to its manufacturing cost. Perform his activities regarding to wholesalers that who will deliver its products to customers and markets. This department also has a sub department named As export department .this department department will manage all activities relating to export of products, like Air conditioners, refrigerators, and generators.


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1.7.6 Purchase Department This department involves involves all the activities relating to purchase purchase of raw material, machinery. This department also has another sub department import department .this . this depa departm rtmen entt invol involve ve in activi activitie ties s like like from from where where they they shou should ld impo import rt raw mate materia riall and and differ differen entt produ products cts from from specia specializ lized ed count countrie ries s like like

Japan,

Australia, Malaysia, China, England, Germany, India, and Italy. 1.7.8 Finance Department This This depar departm tmen entt involv involves es the the activi activitie ties s of Financ Finance. e. That That how how they they can can manage their inflow and out flow of cash. From which institutes they can take loan. How much interest they have to pay on loan and how much finance ability they have to purchase the assets of company. 1.7.8 Information Technology Department This department take information information about the modern technology technology .that how can organization organization can take information information about new advancement advancement in technology technology .and what are the changing are occurring related it technology environment. 1.8

Management Structure

Management structure tells that how the management staff control the whole company in different. This structure also told that at which techniques each and every department is controlled, checked and analyzed not only by the relev relevant ant mana manage gerr but but also also by the the other other execu executiv tives es of the comp compan any. y. This This stru struct ctur ure e also also expl explai ains ns that that how how each each depa depart rtme ment nt of the the comp compan any y is connected with the management staff from its line staff. How work activities are divided among the middle and line staff. Figure 1 illustrates that how every department is interlinked with each other.


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Figure 1

CEO

General Manager

Purchase Manager

Import Manager

Assistant OF Import Manager manger

Productio n or plant manager

APM

Human Quality Resource Control department manager Manager

Marketin g Manager

Human resource manager

Country manager marketin g

AQAM

Team leader

Assistant purchase Manager

Supervisor

Supervi sor

Advertise ment manager

Supervisor

Sales Manager

Export manager

Per motion manager

Supervisor


HOD Of finance departme nt

Accounta nt manager

Assistant of export manager

Assistant of sales manager

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Loan funding manager

Purchase Department Figure 1.1

Purchase Manager Import manager Assistant OF import Manager Executive import manager Assistant Of purchase manager Executive purchase manager

Manufacturing Department Figure 1.2

Process Manager

Assistant OF plant manager

Team Leader

Supervisor


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Quality Control Department Figure 1.3

Quality Assurance Control Manager Assistant of Quality Assurance Manager

Supervisors

Employees

Human Resource Management Figure 1.4

Human resource manager

Assistant of HR Manager

Executive OF HR Manager


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1.8.5 Marketing Manager Figure 1.5

Marketing Manager

Advertisement Manager

Per motion Manager Assistant OF per motion Manager Assistant of advertisement Manager

Assistant of Marketing

Manager Executive Marketing

Manager Sales Manager Figure 1.6

Sales manager

Export Manager

Assistant of Sales manager

Assistant of Export Manager

Executive Sales Manager

Executive Export Manager


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Finance Department

Figure 1.7

Finance Manager

Loan Funding Manager

Accounts Manager

Assistant of Loan Manager

Assistant Of accounts Manager

EXECTIVE MANAGER

EXECTIVE MANAGER

CHAPTER NO 2


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HUMAN RESOURCE MANAGEMENT 2.1 Back Ground Human Resource Management is the future of organizations all over the world. Without a developed HR system, no country can compete in the global arena, and a country like Pakistan is no different, it needs Human Resource Manag Managem ement ent for its future future growth growth..

Today Today,, theref therefore ore in truly truly worldworld-cla class ss

corporations the HRM function has assumed a greater significance and plays a comprehensive role in organizational management. In the 1980’s and early 1990’s the term HRM came into academic horizons and gradually used by the practitioners and researchers worldwide. The last two decades have seen a marked change in HRM particularly in those activities, which involve acquiring, developing motivating and utilizing human resources actively in the business. Human resource management is the only one department in the organization who who deals deals with with huma human n resou resource rce.. Its basic objective objective “is to provi provide de the the required human human resour resource ce to organiz organizatio ation”. n”. So to prov provid ide e the the huma human n resource to organization establishment of that department was essential . The major purpose of HRM is to increase and improve the productive contribution of personnel to the organization in more ethical, social, and administratively respons responsible ible way. This purpose purpose emerge emerged d from common commonly ly called called industri industrial al relations, personnel administration, industrial psychology and personal. The 21st century will bring with it enormous opportunities but also enormous pressure, if the companies will not improve the productivity of the people and treat treat them them “hum “human an being being’’ which which are are the the vital vital objec objects ts of all the econo economi mic c activities activities leading towards development. development. Now there is worldwide consensus consensus on huma human n resou resource rce being being one of the the major major mean means s of incre increasi asing ng effici efficien ency, cy, productivity and prosperity of the firm. In order to meet the requirement of right employees at right time and at right time time PEL PEL establ establish ished ed this this depa departm rtment ent from from its establ establish ishme ment nt to till till now now providing the best employees to company. This department works that how they can hire the best people and how they can cope with modern technology technology and how they can made their employees to use this modern technology. The


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Human Resource Department at PEL is engaged in the areas of Recruitment and Selecti Selection, on, Trainin Training g and Develop Development ment,, Perform Performance ance Manageme Management, nt, and Organiza Organization tional al Developm Development ent,, and strives strives to align align these these function functions s with the overall business strategy. We place great emphasis on people development so that people and the organization perform at maximum capacity in a high effective manner. 2.1.1

Vision

To achiev achieve e excell excellence ence through through innovat innovative ive HR practic practices es and contin continuous uously ly exceeding our people expectations

2.1.2 Mission Our mission Our mission is two-fold: 

To mange talent and build capabilities capabilities of our people thus enabling them

to deliver sustained performance. 

To facili facilitat tate e them them in creati creating ng a collab collaborat orative ive work work enviro environmen nmentt that that

develops a culture of continuous learning.

2.2 Functions OF HR Department 

Human resource planning.



Job Analysis.



Training and development.



Rewards and compensation.



Industrial relation.

2.2.1 Human Resource Planning Human resource planning is the 1st and most important function of the department. It is the base of all other departments. As it is deal with the demand and supply of human resource to different departments as well as in human resource department. “Human resource planning is the blend of Art and and scie scienc nce. e. that that ensu ensure res s the the effe effect ctiv iven enes ess s of mana manage geme ment nt of HR by providing quality and quantity of employees when and where is necessary.”


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As definition shows that this department has linked with quantity (that how many many peop people le are are requ requir ired ed)) and and qual qualit ity y (tha (thatt whic which h type type of peop people le are are required).Human resource planning depend upon the functions performed by the PEL. So according to operations we arrange and made all planning. 2.2.2

Job Analysis

Job Job analys analysis is deal deal with with quali quality ty of peopl people e .That .That which which type type of people people or employees are required by department. Through job analysis we also determine that what will be duties of the hired person and which type of skills he should be contain for the Job. The The infor informa matio tion n is usua usually lly colle collecte cted d by comm commun unica icatio tion n with with the requi require red d department and also by interviewing of employees individually and also in group forms. So for selection of employee in PEL first they analyze their whole company, cond conduct ucted ed interv interview iew that that where where which which type type of peopl people e or emplo employe yee e they they required. And than they made their job their job descriptions and specifications. 2.2.2.1 Job Description Form This form contain information information like if PEL company want to hire a person in HR Department than how they will describe all their requirement for the applicants. This form tells first about 2.2.2.2

Title of the Job

Purchase manager 2.2.2.3

Job identification

He will be at manager post. He will assist or reported to General Manager of PEL Company. His under employees will be assistant manager, import manager and assistant of import manager.


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2.2.2.4

Role Statement

His duty involve all the activities related to purchase of raw material, machinery and also will inspect to whom companies they will import either in Pakistan or from foreign countries. 2.2.2.5

Job environment

His job timings will be of general time but can be called at any time for emergency meeting and dealing. He will be provided by the official laptop, cell phone with official Number. He will be provided by convance facility. His salary package will be of 70,000. 2.2.2.6

Job specification

The required qualification of the candidate should be specialized in Marketing 5 years of job experience. He should have ability how they can do best deal for purchasing of products according to their finance resources. 2.3

Recruitment and selection

Recruitment is a systematic procedure to locate and attract or encouraging in order to fulfill the vacant position. And selection is the most suitable way or systematic procedure to select more suitable candidate. .The recruitment and selection decision is of prime importance as obtaining the best possible person to job fit which will, when aggregated, contribute signif significa icantl ntly y toward towards s the the compa company’ ny’s s effec effectiv tiven enes ess. s. It is also also becom becoming ing importa important, nt, as the company company evolves evolves and changes, changes, that new recruits recruits show willingness to learn and ability to work as part of a team. The company aims to recruit and select staffs which are needed to achieve its strategic directions and who show attributes that are consistent with the organization’s directions and culture. The purpose of recruitment and selection is the cost efficiency to


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make the performance of company more effective. As under the employment legislation every person should have the equal opportunity for job. So PEl Company also hiring the best staff according to employment legislation and to make operational process more effective and efficient by lowering the cost included direct and indirect cost both. 2.4

Training And Development

As the world is going to be more globalize so environment changing are occurring at very fast rate. Mostly these changes are related to the change in technology so to prepare the employees for current and future job; different trai traini ning ng and and deve develo lopm pmen entt prog progra rams ms are are made made or arra arrang nged ed by the the HR department to achieve the goal of the organization. PEL Company also organized different training and development programs for their employees to cope with the current and future job changing. 2.5

Compensation And Reward System

Performance and reward system is essential for every organization to keep the employees motivate and to encourage them to work at the work place. This system is work by measure the performance of individual and by group of employees. Their team work performance, their hardworking, devotion are give to be rewarded. Its obligation on the organization to give the bonus, extra allowances, incentives to encourage them more for their work. PEL also have a compensation and reward system to make them motive for achieving the goal of the company. 2.6

Industrial Relation Indus Industri trial al relat relatio ion n are are the relat relation ion betwe between en the the manag managem emen entt and and the

employees that how they can make their work place more safe and valuable. 2.7 Recruitment and Selection For achieving the organization goal and targets it’s essential that its staff should be competent towards the target. So recruitment and selections plays a


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very important role for the selection of employees. This selection finds the current practices and decision making in recruitment and selection. We cannot discuss how recruitment and selection take place without asking why certain techniques are used in preference to others. According to Human resource practices these procedures are not very simple for filling of any vacancy. Once the organization’s human resource needs have been determine, they necessarily have to be filled. These staffing activities include the following. 

Recruiting job candidates



Selecting the most appropriate job applicants for the available job

Both Both proce procedur dures es must must be done done in accor accorda dance nce with with Equal Equal Empl Employm oymen entt opportunity (EEO) guidelines. Recruitment is one of the core activities of any personnel personnel department. Before the personnel department can proceed with the recruitment, two further documents are necessary. Competition for the 'best' graduates requires employers to have a clear idea of what they mean by 'best'. Recruitment needs to send a strong, distinctive message to these people. 

The Job specification



A person specification

The The line line manag manager er shoul should d draw draw these these up and and it may may be nece necessa ssary ry for a member of personnel department to assist. Specifying the job and the type of person required is a line management responsibility. 2.7.1

Recruitment And Selection Process

PEL Company follows the whole procedures for which are acceptable at national and international level both. Mean they follow the standard operating procedure for recruitment and selection. 2.7.2

Seek Information

First First they get the information information about the relevan relevantt departm department ent in which which the vacancy is available.


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2.7.3

Send Information To HR Department

Departments fill the slip named Man Recognition Slip in which they mention all all their their requ require ireme ments nts about about empl employe oyee e neede needed d like like age, age, when when and and why why employee require, experienced or fresh employee, insurance and car etc. 2.7.4

Approval of Form

Then Head of Department (HR) send the slip to chairman and Managing Director. From their approval further procedure start. Potential candidates may come from an internal Side of the organization, or from the external job market. The Information is reached through channels such such

as

recr recrui uitm tmen entt

adve advert rtis isin ing, g,

empl employ oyme ment nt

agen agenci cies es,,

prof profes essi sion onal al

associations or word of mouth. There are two approaches which can be used for hiring of potential employees 

Internal Sources.



External sources.

2.7.5 Internal Resources For a simple and ordinary job Organization with strong culture mostly look for school leaving and bachelors .but for high level post or job they usually prefer the internal job market. So PEL Company Do This by job posting and employee referral programs. 2.7.5.1 Job Posting These methods of prominently displaying current job openings extend and open invitation to all employees in the PEL Job posting serve the following purposes 

Provide opportunity for employee growth and development



Provide equal opportunity for advancement to all employees


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

Comm Commun unic icat ate e orga organi niza zati tion on goal goals s and and obje object ctiv ives es and and allo allow w each each

individual the opportunity to help find a personal fit in the organizations job structure. 2.7.5.2 Promote The Employees With In The Company By analyze analyze the Personn Personnel el replacem replacement ent charts charts HR manage managerr evaluate evaluate the performance and promotion ability of inside candidate for the most important positions. Usually this option is for firm’s top positions. The management management creates a card for each position, showing possible replacements as well as their present performance, promotion potential, and training. 2.7.6 External Sources When company does not able to find the appropriate person from the internal side of the organization according to the job specification form than they find the best person from the out side. External selection selection is done by the Equal opportunity opportunity for every person. This can only only be achie achieve ved d throu through gh publ public ic and and open open recru recruitm itment ent.. The The likeli likeliho hood od of attracting 'suitable' applicants depends on the detail and specificity of the recruitment advertisement or literature. Key factors such as salary, job title, career and travel opportunities obviously influence response rates. PEL does not always always produce produce enough qualifie qualified d applican applicants ts interna internally lly so it needs needs externa externall sources sources including including bringing bringing in people people with new ideas. ideas. The external method includes media such as newspaper. 2.7.6.1

Giving Advertisement In News Papers

The purpose of the ad is to attract those applicants who are suitable for the job. The body of the advertisement contains a brief description of the job, a brief description of the person required, including the essential requirements of the the perso person n speci specific ficati ation. on. Follo Followe wed d by the the benef benefits its offere offered d and and any other other attractive attractive features of the job. PEL Company also considers the Cost factor for giving the Ad in news paper. That this ad should be cost effective.


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2.7.6.2

Giving Advertisement On Internet

One of the main recommendations is incorporating a link from the corporate home page directly to the careers section on the company's Web site. Another Best Practices feature is to make information available to candidates about a company's culture and work environment. It is critical that all companies make the most effective use of their corporate career Web sites, to brand their companies with potential candidates, who may also be customers and shareholders. Benchmarking practices against those those of the the Fortu Fortune ne 500 500 provid provides es a useful useful meas measure ureme ment nt and and perha perhaps ps motivation to implement best online recruiting practices. A large and fast growing Rate of employers use the Internet as a recruiting tool. PEL recruit electronically through the Internet. They give ad on there web side www.Pel.com roozee.Com. 2.7.6.3

Employee Referral Programs

Word-of-mouth applicants are likely to stay longer and may be more suitable than recruits recruits obtained obtained by adverti advertising sing.. But word-of-m word-of-mouth outh is discrim discriminat inatory, ory, since it restricts applications to established communities and excludes recently arrived minority groups who have not had time to become part of informal networks. This This meth method od is a low low cost cost per per hire hire way way of recr recrui uiti ting ng,, even even thou though gh the the candidates, in many cases, come from outside the organization. This method is useful for finding applicants in short supply and managerial candidates. 2.8 Selection The recruitment Procedures should have attracted a pool of applicants from which selectors can make their choice. If a job analysis has been conducted, the the crit criter eria ia or comp compet eten ence ces s whic which h are are deem deemed ed nece necess ssar ary y have have been been identified. These may be well defined and focused on experience and skills. as in the the 'right 'right person person'' approa approach ch;; or gene genera rall and and related related to educati education on,, Comsats Institute Of Information And Technology

27

intellect and personality for the 'cultural fit' and 'flexible person' models after the candidates have been identified, and they must be selected. In PEL common procedures use in selection include 

Obtaining completed application forms or resume



Checking education, background, experience and references



Taking Tests & Interviewing the candidates.



The selection procedure procedure results in a match between a candidate’s candidate’s ability

and the skills required by the job. 2.8.1 Tests PEL test only the external employees not the internal employees, because they have the complete data of internal candidates. Tests provide use full backback-up up inform informat ation ion and and are are an aid to selec selectio tion n but but they they cannot cannot entir entirely ely replace the interviewer. It tests the candidates only for specific positions not for all the vacancies.

2.8.2

Interview

PEL conduct behavioral interviews to screen out the candidates. Behavioral interview is a series of job related questions that focus on how they reacted to actual situations in the past. They They also also cond conduct uct indivi individu duals als’’ multi multiple ple inter intervie views. ws. The The HR mana managem gemen entt conducts the interview. Also the related department conduct interview. Their main purpose for the interviewer to ascertain if the candidate is suitable for the vacancy, and for the candidate to determine whether the job is suitable for him or her. They have very specific panel for conducting interview. In which the executives of the related department are present. 2.8.3 Medical Test The candidates who passed the interview are passed through medical medical test PEL have linked with so every candidate got examined there and his report are send to department if candidate have every test clear than he selected for job.


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2.8.4

Back Ground Reference

The person who have been selected their back ground references are checked. So in this this way PEL PEL Compan Company y selec selectt the the requ require ired d perso person n for the the requi require red d vacancy. And person designated as the employee of the company.


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CHAPTER NO 3 TRAINING & DEVELOPMENT At every organization to cope with the new techniques training of new and exiting staff is essential. So it is the second function of the HR department to arrange arrange the trainin training g and develop developmen mentt program program for the employ employees. ees. These These qualitie qualities s can be bought bought from outside outside the organiza organization tion through through recruitm recruitment, ent, consultancy and subcontracting, or grown by training and developing existing employees. Training Is a systematic procedure to equip or impart the knowledge and skills needed to competently perform the current job. Development Is a set of planned activities designed to prepared employees for their future job role. 3.1

Training At PEL

Training in PEL. Is basically of two types. 

Training to new employees



Training to existing employees



External training



internal training

3.1.1 Training Of New Employees PEL have a very descriptive introduction plan for the new employees. The training of new employees basically consist of two parts. 

Induction or orientation.



Socialization


30

3.1.1.2

Induction Training

Syst System emati atic c proce process ss to educa educate te new new empl employe oyees es about about the organ organiza izatio tiona nall philosophy and policies. And also concern about the job department and job duties that will be perform by the employees. Philosophies included the destination, target and aim of the company. It also consists of the mission statement statement knowledge, core values, values , vision, vision , culture, norms, norms, values shared by the members. Policies included the time, shift time, compensation etc. And knowledge about the concerned concerned department department in which the person has been required to perform their duties. Department training over an initial period of one to six months shall follow this . 3.1.1.3

Days Orientation Program

Contents They basically have three days Orientation program for new employees in which they describe to employees with basic background information about the firm such as: 

Welcome note from management director



Mission, Vision, Values



Brief introduction of PEL



Company profile



Organization



Product profile



General guidelines



The working hours



Head office



Plant



Canteen mess



Bank account details



Fair price shops


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

Traveling



Department visit



Meeting with HOD



Colleague



And other miscellaneous things .

General Guidelines Working Hours Head Office of PEL 

08:30 TO 04:30 from Monday to Saturday.



They (essential) (essential) staff of HR, GS and sales will be on duty for day-today

matters. 

Lunch and prayer is 13:00 to 14:00 hours.



Atte Attend ndan ance ce curr curren entl tly y is to be marke arked d on the the atte attend nda ance nce shee sheett

maintained by GSD and placed on reception. Plant 

Operations at plant rotate clockwise in three shifts.



Timings for morning shift are 08:30 to 04:30 from Monday to Saturday.

Canteen Mess 

Facility is available at head office as well as at Factory.



At head office expenses are deducted from the salary.



At plant expenses are paid directly as well as deducted from the salary.



Employees can check their category from the relevant accounts section.

Bank Account Details Salary is paid through bank to all the company permanent employees as well as contractual staff. HR & Finance departments, regarding opening of account in the designated bank nearest to your residence/ place of appointment is available for coordination. Fair Price Shops Company has provided fair price facility to all its employees where company products are available at subsidized prices.


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Different quantities are allowed to different category of staff on monthly basis. The shops are located at head office, plant, and Jhang and Arifwala zones . Timing may vary from season to season or otherwise. Traveling Company allows all its employees the travel facility facility according to his or her categor category y subject subject to appr approv oval al from from respecti respective ve HOD for for its its busi busine ness ss development. See the relevant portion of HR policy pertaining to this section Who Supervises The Training Program Internal management supervise orientation program. This job has been given to their Manager Training and Development who made the panel of people to supervise orientation according to the nature of job. Procedure Of Orientation According to Managers the new employee has been rotated almost in every department in his his orient orientati ation on so he is able able to pract practica ically lly see see the things things happening happening in the organization. It helps reduce the new employees employees jitters jitters and the Reality shock he or he/ she might otherwise experience (the discrepancy between what the new employee expected form his or her new job, and the realities of it). Departmental Training After induction training the employee has been shifted to the department he was employed for, to go through departmental training and the training of othe otherr rele releva vant nt depa depart rtme ment nts s whom whom he has has to inte intera ract ct in his his dayday-to to-d -day ay activities. This basically is the start of his probation period. On The Job Training PEL always prefer to give on the job training to the new employees because they think that on the job training is the best way to make employees learn the skills required to perform different tasks. 3.1.2 Training Of Existing Employees For training of existing employees some points are followed by the PEL Company. Company.


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Like 

Training need Assessment



Training design.



Training implementation.



Training evaluation

3.1.2.1 Training Need Assessment First company analyze where the performance gap is coming. Its purpose is to identify where training can make major contribution to improve organizational performance. It sets out the answer of the following questions about the way the organization is functioning now and is expecting to function in future: 

What?



When?



Where?



Why?



Who?



How?

By asking and searching for all these questions they will be able to find answers they will discuss all problems and solutions. Important issues need a plann planned ed resp respons onse e and and the cases cases of probl problem em need need to be establ establish ished ed and and possible solution identified. Training is one possible response and should be sele select cted ed only only when when it is most most appr approp opri riat ate. e. Thro Throug ugh h the the trai traini ning ng need need asses assessm smen entt the compan company y can be able able to find find the the probl problem ems s that that can be happened in he future and same they can take action for the potential problem before the time. So PEL company also use the proactive approach to safe their company from the future and unanticipated problems. The process of conducting a TNA will allow decision to be made, on the basis of evidence, about where training will offer the best investment. It will strengthen strengthen for funding training and allow priorities between training need to be established. It will also provide information upon which to judge whether resources currently employed in training to be used more effectively. Comsats Institute Of Information And Technology

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TNA requires the collection, interpretations and analysis of information from acros across s the the to-da to-day y conta contact ct with with the the variou various s activi activiti ties es need need to be soug sought, ht, compared, interpreted and use. Training Need Assessment eventually has to be dealt with at individual level. level. The questio stion n that hat needs to be aske sked is whe whether this this perso rson performance is satisfactory. If the answer is NO then come form of training may be considered. If the answer is YES then training for the development may be worthwhile for those with potential. This is usually the responsibility responsibility of line manager who sets the performance required and judges whether it has been achieved. A training gap can be set to exist if the performance performance deficiency is due to lack of knowledge and skill. skill . The limitation of this individual approach is that it can result in demands for training fro every employee. These demands may be for train training ing to impr improve ove curr current ent perfo perform rmanc ance e or develo develop p the pote potenti ntial al of the the individual. 3.1.2.2 Training Design After finding the reasons for the performance gap PEL Company design how they will overcome this gap. 3.1.2.3

Training Ability

For making the training design HR Manager OF PEL Company also considers the factors that how much knowledge and ability their existing employees have already. And in which fields they have to be more trained.


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CHAPTER NO 4 PERFORAMNANCE MANAGEMENT AND APPRAISAL SYSTEM Perform Performanc ance e apprais appraisal al is a process process for establi establishin shing g shared shared underst understand anding ing about what is to be achieved, and an approach to managing and developing people in a way which increases the probability that it will be achieved in the short and long term. The purpose of performance appraisal is to improve the organization’s performance through the enhanced performance of individuals. The main objectives of performance appraisal are:



To review past performance



To asses training needs



To help develop individuals



To audit the skills with in an organization



To set targets for future performance



To identify potential for promotion

4.1 Performance Appraisal In PEL In PEL performance appraisal is recognized as an important element of the jobs jobs of mana manage gers rs and supe supervi rviso sor. r. It provid provides es signif significa icant nt help help in meeti meeting ng departmental and company objective. Given the vital role of performance appraisals, PEL needs to check appraisal system, and the uses of such appraisal system to determine whether key personnel personnel decisions are affected by employee’s employee’s age, race, sex, religion, color, national origin or handicap.


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4.2 Performance Management And THE APPRAISAL PROCESS

Figure 4.2.


37

4.2.1

Performance Planning



Establish & Define



Key Responsibilities



Objectives



Expected Outcomes



Priorities



Behavioral factors

4.2.1.1 Establish & Define This is the first step in Performa Performance nce planning planning in which which PEL Performanc Performance e management tells his employees about the company establishment. That this company is establishing at that time, about company history, its culture, rules and regulations and define the purpose of the establishment. That what is the vision and mission of the company. 4.2.1.2 Key Responsibilities Key respo sponsibil ibilit itie ies s mean to tel tell the employ loyees of PEl abou bout the responsibilities which are essential to perform for the purpose of achieving Their TARGET. 4.2.1.3 Objective Objectives tells the employees what are the targets and goals of the company and how they will achieve their targets, what are the ways or strategies about through which they can achieve their mission or target. 4.2.1.4 Expected Outcomes PEL Performance Management tells about the outcomes and result which they want by the performance of each employee. How they can provide the required results. What type of activities will be performed by them for the desired outcomes?


38

4.2.1.5 Priorities PEL Performanc Performance e Managem Management ent tells tells about about the prioriti priorities es of the compan company y .mean in which they want to be, more grown. What are the points which should be more consider and more need attention .in what product they want to grow more .so in this point they tells about the priorities of the company. 4.2.2 Performance Monitoring 

Timely relevant feedback



Maintain Load



Quarterly Review



Refine Responsibilities



Revisit priorities

4.2.2.1 Timely Relevant Feedback In this this step step the the perf perfor orma manc nce e mana manage geme ment nt get get the the feed feedba back ck abou aboutt the the performance of the employees. That their performance sis according to their planning or not. Than after taking feedback in to consider they make plans now what type of steps should be make. 4.2.2.2 Maintain Load Through performance monitoring they can balance their work load. That how they they can can effect effective ively ly and and effic efficie ientl ntly y balan balance ce their their target targets s so that that can can be achieved with out any burden or threat. 4.2.2.3 Quarterly Review In this this metho method d they they monit monitor or their their perfo perform rmanc ance e on quar quarter terly ly basis basis.. PEL PEL Company divides its target in to annually, monthly basis. So after 4 months they conduct a big audit and check all the aspects about the target which they have to achieve till now.


39

4.2.2.4 Refine Responsibilities After examine all the activities than performance management again refines their responsibilities responsibilities among the employees. employees. This is more convenes because it is based after the performance analysis. Performance Appraisal 

Compile/Review data



Request self appraisal



Review with next-level supervisor



Finalize appraisal



Meet With Employee

4.2.3.1 Compile /Review Data In this we collect all the analyze data and compile it in the form so that this may be review again for making the target near to achieve. 4.2.4 Development & Follow Up 

Identify interests & needs to enhance performance



Establish Training plan



Review job description



Identify new challenges

4.2.4.1 Identify Interests & Needs To Enhance Performance This step is the last step in which we take the entire step after the analysis. In it we find the interest of the company within its environment .that what type of changes are occurring and how company can go well with this changes. And in which fields company have to make more good performance. 4.2.4.2 Establish Training Plan After After releasin releasing g that in which which departm department ent and Field Company Company should should have more good performance performance .performance management establishes its training program for the employees for getting more performance. This training plan is Comsats Institute Of Information And Technology

40

very essential to make the performance better for future as well as for current job. 4.2.4.3 Review Job Description Acco Accord rding ing to the the chan changes ges which which Manag Managem ement ent wants wants to see see for makin making g company performance better we again review the job description form. Again made ade and and tell tell abou aboutt the the job, job, role roles s stat statem emen ent, t, and and phys physic ica al work workin ing g environment. 4.2.4.4 Identify New Challenge To make our company more globalize not only at the national level but also on the international level we have to continuously consider the facts about new changes at international market for making our company to cope with this challenge more properly and good.


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CHAPTER NO 5 COMPENSATION COMPENSATION AND BENEFITS Compensation and benefits are the rewards which are given to the employees for their best performance and also to make them satisfy at the work place by giving them the incentives, bonus, allowances. 5.1

Pay For Performance

Sala Salary ry prog progre ress ss duri during ng an empl employ oyee ee care career er with with PEL PEL is a func functi tion on of perf perfor orma manc nce e over over time time.. Bett Better er perf perfor orma manc nce e is impo import rtan antt high higher er pay. pay. Performance is also key factor in consideration for promotion. 5.1.1 Performance Designation Performance designations are defined as follows. 5.1.2 Outstanding Individual’s Individual’s performance performance consistently exceeds performance performance criteria in virtually all major responsibility areas and objectives: 5.1.3 Very Good Individu Individual al perform performance ance consist consistentl ently y exceeds exceeds perform performanc ance e criteria criteria in some some major responsibility areas and objectives and achieves criteria in all others. Respons Response e to unplann unplanned ed circumst circumstanc ances es meets meets or exceeds exceeds what would would be expected. 5.1.4 Good Indi Indivi vidu dual al’s ’s perf perfor orma manc nce e full fully y meet meets s perf perfor orma manc nce e crit criter eria ia in all all majo major r responsibilities areas. Performance is that of an employee who is competent, knowledge, and capable of consistently achieving quality results on increasing demanding objectives. Unplanned circumstances did not prevent the meeting object.


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5.1.5 Satisfactory Satisfactory Individual’s performance meets performance criteria in most areas but not up to required criteria and work accomplished: 5.2 Medical/Hospitalization Expenses In orde orderr to assist assist the the perma permane nent nt Empl Employe oyees es and and their their imme immedia diate te family family members spouse and departmental children not more than 19 years old and in case of unmarried and full time students the limit increased (to23 years) to maintain their good health and pay for costs incurred on medicines, medical services and hospitalization for themselves and their eligible family members, the will reimburse 100% of the employee’s actual expenses. The employee will be reimbursed for the expenses on presentation of doctor’s prescription and receipts. Medical expenses (purchase of medicines) etc. for up to or less than Rs.500 (five hundred only) will be exempted from presentation of doctor’s prescription. 5.3 Uniform and Locker facility Company gives two uniforms in a year to its workers and also provides lockers to them for the safety of their personal things. 5.4 Conveyance Allowance Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for motorcycle in case of office work. 5.5 Loans Loan is given to the employees from the provident fund; car loans are also given to the executives level officers.


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5.6

Probation Period

5.6.1 Purpose PEL set probation policy regarding the serving of a probationary period for staff members covered by a collective bargaining agreement who are newly hired. Probation is for newly appointed employees only. 5.6.2 Responsibility The Head of Department Human resources is to ensure compliance with this policy. 5.6.2

Duration

Probation period in PEL is six months for Managers and three months for execu executiv tive. e. Prob Probati ation on period periods s may may be exten extended ded,, with with reas reason, on, where where the empl employe oyerr is not not conv convinc inced ed with with empl employe oyee e perfo perform rmanc ance e to the requ require ired d standard, and some time if employee does achieve the desired result the company will terminate the employee. 

Employment Letter is attached



Confirmation Letter is attached

Letter showing Different Allowances and Benefits is attached. 5.7 Description Of Some Of The Benefits All benefits, allowances and salary vary equally from grade to grade. 5.7.1 Salary Structure Salary is based upon the market practices. They attract their employees from market pay levels. The basic salary structure is as: Minimum

Maximum

Executives

500,000

700,000

Managers

300,000

400,000

Non-Executives

90,000

100,000

Supporting Staff

50,000

70,000


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5.7.2 Basic Salary 

House rent allowance @ 45% of basic salary



Utilities @ 10% of basic salary.

5.7.3 Provident fund When employee’s service became confirm than they allowed the provident fund at least @ 10% of the basic salary. The company will also contribute an equal amount for credits to the PF account of the employee. 5.7.4 Gratuity PEL Company also provided the gratuity fund to employee on leaving the job. It’s the obligation on company to pay the fund to employee when he will leave the job or will fill the year of his job. 5.7.5 Medical Outpatient Allowance It is per month allowance in addition to the gross salary. But it doesn’t form the part of the salary for any other benefits e.g. Provident fund, bonus. 5.7.6 Annual Bonus Bonus on salary is provided annually to the employees. 5.7.7 Increments Increments on the salary of the PEL Employees is occurred at 16% annually rate. 5.7.8 House Rent Allowance An empl employ oyee ee shal shalll be enti entitl tled ed to rece receiv ive e from from comp compan any y a hous house e rent rent allow allowan ance ce or house house rent rent ceili ceiling ng on such such scales scales and on such such terms terms and and conditions as may be determined by the Competent Authority from time to time. The present rates of house rent allowance or ceiling are given below: 

Exec Execut utiv ives es

50% 50% of Basi Basic c Sala Salary ry



Officers

30% of Basic Salary


45



Clerical

20% of Basic Salary



Non Clerical Clerical

45% of Basic Basic Salary Salary

5.7.9 Electrical Appliances For Employee All employees shall be allowed to purchase furniture fixture and electrical appliances for their residence up to a certain limit as per following entitlement: Position

Electrical Appliances

CEO

Rs.400, 000

General Manager

Rs.180, 000

Country Manager

Rs. 80,000

Assistant Country Manager

Rs. 50,000

5.7.10 Entitlement Of Cars For The Executives Executives Executives will be provided with the Official car and instead markup free loan and a cash allowance will be allowed to eligible executives in order to assist them in buying a car of their choice for business and personal use.  CEO  General

BMW Manager

 COUNTRY

MANAGER

 ASSISTANT

C.M

Honda Accord HONDA CIVIC TOYOTA XLI

5.7.11 Mobile Phone Or Black Berry Facility Executives will be provided with official mobile phone with following monthly bill ceiling: Gr Gra ade Mo Mont nth hly Cei eili lin ng

Cos Co st of Mo Mob bil ile e Phone



CEO



General Manager



Country Manager of each Sector

30,000



Assistant Country Manager

20,000

5.7.12

80,000 50,000

Bonus Structure

NG/ Zero Grades...Workers Grade.


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C3/ Line Clerk Staff C2/ C1/ F3/ Supervisor S2 S1 Je GENERAL Executive E3 Executives E2 E1 M1 Manager M2 M3 M4 M5 GENERAL MANAGER MD MANAGER DIRECTOR 1/GRADE INVERSERLY PROPERTIONAL.

THE PERSONS HAVE MINIMUM GRADE GAIN MAXIMUM BONUS.


47

CHAPTER NO 6 INDUSTRIAL RELATION RELATION 6.0 Industrial Relations Industrial relations mean the relations between the employees especially with labor unions to make the work place safer. And to provide all the benefits and compensation compensation to labors through these relations. It also includes how to record all the activities of employees especially of labor on effect basis. In PEL the relations between employees, labors and management are kept through different ways. 

Maintenance of Attendance



Maintenance of Stores



Check the material in & out from the factory



Maintenance of factory



Provide assistance to all departments regarding material

To maintain the record about internees Industrial relations and administration department deals with employees but the human resource department deals with managers. 

Dispensary



Telephone



Gate security



PEL security



Photo copier



Canteen all the department are controlled by IR&A.

Attendance of all these departments is recorded by the IR & A department. All the functions expect the basic function of account department performed by IR & A department. T/D allowance, medical bill, telephone bill and utility bills are also paid by the IR & A. Capital expenditure above Rs. 5,000 pay by IR & A.


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6.1

Union And Labor Law At PEL

6.1.1 Union A labor union is elected by the employees of PEL every year. The union takes an active part in all activities. It negotiates with management for employee’s problems. 6.1.2 Labor Laws Labor laws applicable in the country are also applicable at PEL. All benefits imposed by the government of Pakistan Pakistan and government government of Punjab is granted to employees. 6.1.3 Relation With Union Good relationship between the management and union is very much essential for for any any orga organi niza zati tion on.. It has has much much impa impact ct upon upon over over all all orga organi niza zati tion on performance. performance. So management management always tries to develop sound relationship with union but not at the cost of organizational objective. On the other hand, union tries to take possible benefits for the employees. If there is good relationship between the management and union then there is a substantial degree of peac peace e betwe between en them. them. Strike Strikes s occur occur rare rarely. ly. In such such situat situatio ion n both both partie parties s consider the needs and limitation of each other. In Pak Elektron Limited, there is a sound relationship between management and union. When union leaders are selected by employees for two years, the management tries to give extra benefits to the union leaders to developed good relation. In other words, we can say, union leader are obliged by the management but it doesn’t mean that employees are deprived their basic rights. PEL management itself tries to give possible benefits to employees. Union bargain on annually bases with management on different issues like. 

Allowances



Promotion



Fringe benefits



Working conditions


49



Health and safety



Beneficiary and home

If company is earning high profit then management itself gives more possible benefits to the employees i.e. in 1991-92 company earned more profit and they gave extra benefits to the employees but company has been earning nominal profits since 1992-94, so company is not in a position to give extra bene benefit fits. s. In such such situat situation ion,, union union cons conside iders rs the compa company’ ny’s s real real financ financial ial position and does not go for strike. 15 years ago strike was observed by union against management policies. When one party faces major problems other party party share shares s the proble problems ms and and helps helps to overco overcome me such such probl problem ems. s. For For example, in 1991-92, company was earning high profit because demand of their their produ products cts was was high high in the perio period. d. To fulfil fulfilll this this incre increasi asing ng dema demand nd,, management hired more employees. But in 1994 when profit was decreased, the management had to reduce the labor force. On this critical issue union coop cooper erat ated ed with with mana manage gem ment ent beca becaus use e ther there e was was no othe otherr way way for for mana manage geme ment. nt. Both Both parti parties es belie believe ve on the polic policy y of give give and and take. take. They They compromise on different issues, which occur time to time. No party tries to use power to force other. 6.1.4 Promotion The present scenario particularly in PEL is that mostly there is not much favoritism in the organization and promotion is based upon performance and seniori seniority. ty. There There is no influen influence ce of union union regardi regarding ng favoriti favoritism sm because because the management is restricted on performance for promotion. 6.2 Benefits Of Employees Company provides retirement benefits in the form of gratuity and Provident fund. For Provident fund the company has scheme of 10% contribution by employees and 10% by the company. Cumulative provident fund is paid with interest to employees in cash when he retires or resigns from the company.


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6.2.1 Subsidized Meal Company provides the subsidized lunch to its workers and officers. For night shift, it provides dinner to its employee in the factory mess. 6.2.2 Medical Allowances Workers with salary Rs.3000/ month have medical facility under the social security. The personnel having salary more than Rs.3000 monthly are paid Rs.250 per month as medical allowances. For officers and high grades there is no limit for medical allowances. 6.3 Uniform And Locker Facility. Company gives two uniforms in a year to its workers and also provides lockers to them for the safety of their personal things. 6.3.1 Loans Loans are given to the employees from the provident fund, car loans are also given to the executives level officers. 6.3.2 Performance Award 24th of December is celebrated every year as annual day. At that time award of best attendants and special performance are given to most regular employees and to those who perform an extra ordinary job. 6.3.3 Group Insurance The company insures workers. The company pays all premiums. 6.3.4 Conveyance Allowances Comp Compan any y pays pays Rs.3 Rs.3 per per kilo kilome mete terr for for car car and and Rs.1 Rs.1 per per kilo kilome mete terr for for motorcycle in case of office work.


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REFERENCE

http://www.scribd.com/doc/17607941/Managment-Pel http://www.businessmagnet.co.uk/company/pelprojectmanagement88686.htm http://en.wikipedia.org/wiki/PEL_(Pakistan)#Power_Division http://en.wikipedia.org/wiki/PEL_(Pakistan) http://www.pel.com.pk/news.html http://www.scribd.com/doc/19445410/Project-of-PEL http://www.scribd.com/doc/17612213/Organizational-Behaviour-PakElektron-Limited http://www.scribd.com/doc/17608024/PakElektronLimited

QAYYUM,FARAZ . HR EXECUTIVE(R&S) HUMAN RESOURCE DEPARTMENT


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Hr FunctionsIN PEL

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