Submitted To: Mam Sobia

Authored By: Sobia, Mariana, Amna, Saira and Sadia

2/1/2011

HUMAN RESOURCE MANAGEMENT

Gunj Glass

2/1/2011

CONTENTS

1. INTRODUCTION OF COMPANY

2. QUALITY POLICY

3. HR PLANNING

4. EMPLOYEE PLANNING

5. RECRUITMENT

6. SELECTION

7. ORIENTATION

8. COMPENSATION PLANS

9. REWARDS AND PAY PLANS

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ACKNOWLEDGEMENT

All praises for ALLAH Almighty, the real worthy of all praises who guides in darkness and helps in difficulties. This report would have never been possible if we didn’t have the Invisible hand of ALLAH Almighty on our back.

After this, we would like to thank for the moral and didactic support of our teacher Mam Sobia, who were always there for the critical analysis of our work. In the end, we would like to acknowledge our friends and fellows who were always with us in all the related matters.

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INTRODUCTION TO COMPANY Gunj Glass is a Glass Factory founded in 1985. It is situated on G.T Road in Hassan Abdal.

The reason behind this for choosing the area of Hassan Abdal, because of;

Availability of Raw Material

Availability of Sui Gas

Government incentives

1st thing, Raw material is easily available in this area, in glass making the most important ingredient is silica sand. This comes from Swat also from Mianwaali.

2nd thing is availability of Sui gas, for making in glass. In the area of Hassan abdal there is much gas is available. Hassan abdal is the 3rd electric city in Pakistan in that time, that’s why they chose this area to run the industry.

3rd thing is, government incentive is given to this area. Government also gives some compensation for the development in backward areas. This area is free from income tax legislation till ten years, so that’s why they decided to place their industry in this area.

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HIERARCHY OF GUNJ GLASS

Director

General Managers

Managers

Assistant manager

Officers

Supervisor

Skilled workforce

Labors

There are six departments under the director.

Production department

Electrical department

Mechanical department

Sale & marketing department

Civil department

HRM department

Each department is responsible for its results in front of their director.

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QUALITY POLICY: At Gunj Glass works / Ali Glass Industries. Every member of staff is responsible for the quality of the product that reaches our customers.

The customer’s requirements for quality, product, service and value will be the motivating factor behind each division. We will take Preventive Measures rather than Corrective Ones to improve our system. Team work will provide the avenue for open interaction with employee’s suppliers and customers, so we can be receptive to that changing needs. We are committed to comply with applicable legal and regulatory requirements.

HR DEPARTMENT The history of HR department in Gunj Glass is 21 years old. Under Directors 6, 7 departments work in Gunj Glass. One of these is HR department. All these departments have equal power and obliged to report to directors.

HR department consist of only few people which involves HR manager and few assistants. The motive of HR department is to get the best results of each employee.

Following functions are being performed in department;

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HR PLANNING The strategic planning process in Gung Glass is long and continuous.

The beginning includes Analysis and Report of each department. Analysis includes assessing current human resource (employees). Factory develops and maintains the profile of each employee. It gives the information about skills of the employees that are currently working in the factory. Computerized data is maintained for each department i.e. what kind of skills are required and what skills possessed by currently working employees.

Predicting the Future Labor Supply

HR department of Gung Glass estimates the changes to determine the increase and decrease in demand and supply of labor.

The planning is done through the Report from each department.

EMPLOYEE PLANNING Employment planning is done by HR department in Gunj Glass. They determine Human Resource Need.

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The question is what kind of employee and workforce they need? Here Strategic Management Process of Gunj Glass is involved.

Process starts from Mission statement and Goals/Objectives of organization.

Each department, whenever they need human resource writes a report to the HR department.

It sometime happens as the result of change e.g. Previously B.O.D decided to increase the production of Production Department from 8 ton to 10 ton. The supervisor of Production Department sent a request for more workers in order to increase the Production.

Report is then analyzed under discussion, which is done in a meeting. In this meeting HR manager, B.O.Ds and Relevant Department Supervisors and Head are present. If the recruitment of more workers is verified then next steps are taken.

RECRUITMENT Once employment planning has done and application is approved by the Directors, then HR department of Gunj Glass announces its vacancies to create the pool of applicants.

Man Power Strength Meeting

After that, do hire new work-force man power strength meeting is held in which man strength to

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each department is approved i.e. how many managers, assistants and labors are required.

Here another situation comes when organization requires Host Country Nationals. Recently Gunj Glass bought some new technology from China. To operate that machinery new work force was required, HR Manager, Mr. Abid Shah decided to call an expert from China. That person suggested that Candidates should have technical diploma of 3 years in relevant field and should have computer education.

There are two major sources of Gunj Glass for Recruitment:

Internal Resources

Within Organization Promotion:

If vacancy can be fulfilled by internal employee by his or her promotion, it is first preferred.

Employee Referrals:

Employees who are already working in Gunj Glass can recommend or refer someone particular for Job.

HR department develops different policies to achieve Goals e.g. change or replace the workforce such as Fresh Employee replace the Exhausted one, during work hours.

External Recourses

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Advertisements:

It is in form of newspaper mostly and some time electronic media such as Radio, T.V used.

Most of time Gunj Glass give blind box ad and the reason is to avoid political pressure.

In the area of Hassan Abdal, Politicians have great influence on industries. Whenever an industry advertises its vacancies, many unqualified people took Job on the bases of Political Reference. It causes cost and loss to organization.

So to avoid such loss and to recruit qualified and talented workers, most of the time Gunj Glass gives blind box ad in which Job description and Job specifications are mentioned, mailing address (P.O. Box) is given but the name of organization is not mentioned.

The interesting fact that we came to know is that, HR Manager who told us about blind box ad reason is the referral of MPA, in Attock…

SELECTION After using Internal and External Resources, Applications are collected as a result of Recruitment. Forms of Applications, either relevant or irrelevant tell the successfulness of Recruitment Process.

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Now it is part of Selection Process, select the right person for right job from the pool of applicants;

CVs are separated and categorized for each Job according to Job Description and Job Specification.

When going through CVs, two things are taken into considerations;

Qualification according to nearest Requirement

Residence of Applicant (that should be in surrounding areas near the organization)

Irrelevant CVs are eliminated.

Then Interview Call Letters send to the Applicants. Gunj Glass uses two kinds of interview call letters,

One for Officers’ Job

Other for Workers

Then an Interview Committee is formulated which consist of 5, 6 members. It includes;

2, 3 Directors from Top Management

Relevant Department Head

HR Manager

Candidates come up with Interview Letter along their Form whether Officers’ or Workers’ Form. These forms consist of some main information about candidate such as, Name, Experience, Qualification and Contact, Address etc.

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Along with Interview, some written or practical tests are also taken depending upon the Nature of Job e.g. If a Technical Employee is to be hired, he may asked to perform a particular function on machine. Such tests are held under the supervision of Department Head or Supervisor.

Sometime only oral or written tests are taken and sometimes combination is used, again it depends on the nature of Job.

Once Oral Interviews or tests are held then the interview committee calls for a meeting on which the candidates who have appeared in interview are discussed. At this stage again Short listing is done after recommendations and suggestions of Interview Committee.

The candidates who are selected in first interview, they are called for second interview. HR department sends them final interview letter. That is again of two types, for workers and for officers.

Second interview is taken for more technical job e.g. If civil engineer is to be hired, Directors or HR manager is not expert of civil engineer, they take first interview to match the specification and then calls for second interview in which specialized of civil engineering comes for taking interview.

At this stage, terms and conditions told to the candidate by face to face interaction in order to avoid any misunderstanding.

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After second interview background investigation is done to check the reference of candidate. All that information that is provided by the candidate is cross-checked and verified. The basic information such as regarding Education, qualification and previous employment experience is checked to verify.

If information proves to be true then candidate is offered the Job. If the candidate accepts the job and agreed on company’s term and conditions then comes the Orientation.

ORIENTATION As the candidate come in the company after accepting the job, he is given Orientation.

If workers are hired then orientation is given in the form of group. HR deputy handovers the employee to relevant department supervisor and ask him to give briefing to the new workers.

Officers’ level orientation is given by HR Manager. It’s a formal ceremony in which relevant department officers participate and welcome the new employee to make him feel good.

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When employee has joined the company and has given the orientation, then company takes his medical test form, social security form.

If the employee is founded physically and mentally good then he is offered the permanent Job and he/she becomes the permanent employer of Gunj Glass.

Now, he is the part of company. Here the role of other departments end and only HR department is involved.

HR manager says that,

“Every Manager is HR Manager”

So they think that it is role of relevant department manger to train new employee and adjust him in new environment.

First 3 months are Probationary Period as per International Employment Law during this time if employ is not adjusted he is at liberty to leave the job, in the same way company is also at liberty to fire the employ if he does not found good at work.

After 90 days, HR department takes report of new employ from relevant department.

If that report is satisfactory, then he remains the employ of company but if report is not satisfactory, Hr department can fire the employ.

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Now, 6% of pay of every employ will funded into government account, in return government will provide medical facilities to employee and his family. Their main Hospital, Social Security Hospital is in Rawalpindi and has many small dispensaries in Hassan Abdal.

HR department keeps the record of each employee on regular basis.

Administration of Discipline

Record is maintained in order to assure discipline inside the company. Employees and workers are given specific number of leaves, which they can take in a month.

If any employee is found to break the discipline such as theft or absenteeism first head of relevant department gives him oral warning if employee do not follow then relevant department is authorized to give him written notice, that is not sent to the HR department and not placed in the employee file.

Company considers its skilled labors as the asset of organization and don’t want to lose them. So all possible steps are taken to compensate and correct the employees’ mistakes.

After relevant department’s written notice, if employee remains indulge in such actions that are against Ethics and Company Policy, the department reports to HR department and HR department

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issues show cause letter to employee along with warning. That letter is kept in employee’s file. HR department calls the employee for explanation, investigation is done and if employee found guilty of breach of rule or theft then ultimately he is terminated. Termination is the last option.

COMPENSATION PLANS Compensation and benefits of employee is not an easy task.

First of all salaries is a big issue that should be according to law and paid on time.

Gunj Glass is paying minimum wage of Rs. 5,000 that is not according to law.

Compensation and benefits depends on the ranking of job. Such as;

Medical facilities:

For workers’ level medical facility is provided by the government for which company cut off 6% of their pay and that is funded into government account.

For officers’ level medical facilities are provided by the company itself. Company is responsible for medical treatment of employee and his family.

Old age benefits:

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Company also cut off 6% of the pay of employees and give pension after retirement and old age. It helps the employees to survive when are dependent on their children and physically unable to continue any kind of Job.

Bonuses:

For bonuses, rules and regulations are decided by the HR department of Gunj Glass. They set policy to give bonuses to employees, such as if company achieves its targets they give yearly bonus to employees from profit of Company e.g. Umra Package.

Gunj Glass, every year do the LUCKY DRAW of all the employees. They select four names out of that draw and send then for Umra on company’s expenditure.

Compensation for any mishap:

Company also provides compensation for any mishap with employee that happens during work hours in the organization e.g. many workers got injured by the breakdown of glass sheets, in such cases they are given first aid inside the company and then sent to the hospital for further treatment on the expense of company.

There we found a case of Mr. Abdul Rehman, a labor of Gunj Glass. During his first year of working, he lost his hand during working at machine.

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Company gave him compensation and pension as per local law. But still they accommodated him. He could not work at machine; company adjusted him as Office Boy and working since 18 years.

Performance Appraisals

Company conducts annual performance appraisals to see either performance of employees is according to standard or not.

Company has established performance standards that required fulfilling their quality policy.

Performance goals are mutually settled and communicated to employees depending upon the nature of job. There are Different goals for different departments. Supervisors or head or department make sure that those standards are being met.

To evaluate the performance of each employee, different methods are being used in Gunj Glass, e.g.

Employees are observed during work by surprise visits. They are also observed by department manager or supervisor.

Statistical data i.e. revenue increase, no of sales, production etc.

Oral and written reports are taken from supervisors.

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Before the end of year, an appraisal form is sent to supervisor to be fulfilled and then get back for evaluation of each employee’s performance.

All these sources are used to cross check the information and to avoid biasness.

Then actual performance of each employee is compared with desired performance or standards.

Absenteeism punctuality, discipline and general reputation of each employee is also considered. As a result of comparison, further action is taken.

If employee’s performance is good or up to the standard then given reward in form of money or promotion.

Results are discussed with employee, for giving them feedback and if there is gap between actual and desired, new plans are made to cover the gap. Find out the reasons for poor performance and corrective actions are taken or may re-establish the standards depending on results.

REWARDS AND PAY PLANS Pay plans of Gunj Glass are not according to local law. Minimum wage as per law of 2009 is Rs. 1000 but still in 2011, Gunj Glass getting services of employees at Rs. 5000per month salary.

Other pay plans includes yearly increments and other financial benefits.

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Rewards are given on the bases of performance. Both financial and non financial rewards are given.

Financial includes pay increment and bonuses and non financial includes promotions, good office etc.

EMPLOYEE TRAINING AND DEVELOPMENT Gunj Glass conducts training for employees.

It is conducted whenever a new employee comes in organization.

It is also conducted when new machinery or technology is brought into company.

Training need is also recognized when poor performance is the result of evaluation.

Both types of training are conducted;

On Job Training:

This type of training is for workers’ level

Off Job Training:

This type is for officers’ level. Outdoor trainings are also conducted for managerial level of employees. They are sent to foreign countries for different courses.

Company does not give facilities for further education of employee except Time Relaxation. For

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career development employees are not given any kind of financial aid but they are given working under relaxation.

NOTE We were told by the HR manager that when Ali Glass, a firm of working under directors of Gunj Glass was closed due to shortage of Power Supply, their employees were not layed off but adjusted in Gunj Glass.

But later during interview of different employees of Gunj Glass, we came to know that not all employees were adjusted and more than 30 employees were layed off.

Only those were adjusted who have insurance and entitled for pension.

… END …

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