Human Resource Management - Saba Gulzar

Final Project Report

Muhammad Anis Raza (17469)

Syed Zaaib Hussain (17371)

Arisha Meraj (17113)

Sara Ghazal (17889)

Syeda Fariha Fatima (17879)

INDEX:

1. Objective .........................................................................................................................01

2. Executive Summary ........................................................................................................01

3. Introduction .....................................................................................................................02

4. The World .......................................................................................................................03

5. Trends ..............................................................................................................................03

6. Scope ...............................................................................................................................04

7. Company Profile .............................................................................................................04

7.1. Mission Statement ....................................................................................................04

7.2. Vision .......................................................................................................................04

7.3. Overview ..................................................................................................................04

8. Human Resource Department .........................................................................................05

8.1. Definition .................................................................................................................05

8.2. Artistic Apparel's HR Department ...........................................................................05

9. Recruitment and Selection process .................................................................................06

9.1. Definition & Importance ..........................................................................................06

9.2. Over the globe ..........................................................................................................06

9.3. Artistic Apparel ........................................................................................................07

10. Training and Development .............................................................................................07

10.1. Definition ...............................................................................................................07

10.2. Company's Process ................................................................................................07

11. HR Analytics ..................................................................................................................08

11.1. Definition ..............................................................................................................08

11.2. Artistic's view .......................................................................................................09

12. Workforce Analytics ......................................................................................................09

13. Talent Analytics .............................................................................................................10

13.1. Definition ..............................................................................................................10

13.2. Artistic's view ........................................................................................................11

14. HR Scorecard .................................................................................................................11

14.1. Definition ..............................................................................................................11

14.2. Artistic's view ........................................................................................................12

15. Future ..............................................................................................................................12

16. Conclusion ......................................................................................................................12

17. Recommendations ...........................................................................................................13

1) Objective of the report:

To study and understand HR Analytics, It's importance, use, benefits, effects and to carefully

observe if it is implemented in the organization we have selected. If yes, how it is implemented,

what are the benefits and if not, then why, Till when will it be implemented.

2) Executive Summary:

In this report, we have briefly explained about the existence of the Human Resource Department,

its functioning and its importance in the modern business world.

Human resource management is a function in organizations designed to maximize employee

performance in service of an employer's strategic objectives. Its importance has been highly

recognizable all over the world in recent decades. The new trends of Human Resource

Department have also been entered like forecasting, budgeting and strengths review. HR

Analytics, another ‘innovation’ of the modern business world. It aids and helps the HR

Department in further evaluating the workforce. It provides a system through which employees’

efficiency can be taken into account.

The report also focuses upon its application in the real world and how companies have been

using this department for the betterment of the company. The report narrows down to display an

example of the Denim Industry and then further narrows down to focus on a company named,

Artistic Apparels.

The company has been discussed in detail. A complete company profile has been declared in the

report, including the company’s vision, mission and a complete overview. The company’s entire

HR Department has been briefed in the report. The information was gathered by conducting an

interview with the HR Head, Mr. Faisal Mahmood. The report then mentions the recruitment and

selection process of the company and mentions that the company conducts this process twice a

year. It further talks about training and development function of the HR Department and

indulges in the example of the company, Artistic Apparels. The report also mentions all the

techniques used in the functioning of the HR department, like Workforce Analytics, Talent

Analytics and the HR scorecard. Each of the technique has also been talked about in reference to

the company as well, as how the company uses these techniques to ensure a competitive

workforce.

In the end, the report focuses on the future of HR in the Denim Industry and also all other

industries in Pakistan. A brief conclusion is given about the usage of HR Department in the

company, Artistic Apparels, and a few recommendations for the company to look and work upon

for an efficient workforce and to have that competitive edge that all companies are looking for in

this modern, competitive business world.

3) Introduction:

Human resource management (HRM, or simply HR) is a function in organizations designed to

maximize employee performance in service of an employer's strategic objectives. HR is

primarily concerned with the management of people within organizations, focusing on policies

and on systems.

The importance of Human Resources is too high in an organization because a good team cannot

be built in their absence. Human resource management has been in the workforce since early

20th century, initially it was an administrative kind of a work which used to include payroll and

benefit administration, but now it is more of a strategic management like mergers and

acquisitions, talent management, succession planning, industrial and labor relations, diversity

and inclusion. The new trends of human resource department has also been entered like

forecasting, budgeting and strengths review. Basically, what a company does in this is that it

makes the proper plan keeping in mind all the risks, it makes the budget and allocates certain

amount for different departments, it basically sees as to where the investment is needed and in

order to do so it has to keep in mind all the merit and demerits or all the risks which can lead a

company to bear a loss.

(figure 3.1)

4) The World:

HR Analytics is really an important factor because initially Human resource department has to

make the decision on the basis of their gut feeling or instinct regarding hiring, onboarding,

promotion, rewards or retention, but now a new trend of HR analytics has been introduced which

has made the work of HR department a lot easier. HR analytics can assist us actually understand

what could improve our workforce’s action , and create a group that routinely meets its targets,

identifies why certain managers resume to flourish whilst others burn out, and perceive exactly

which candidates are likely to succeed. Now for small businesses, software advice surveyed

recruiters who use some type of HR analytics in the form of software or manual methods, such

as self-created formulas.

5) Trends:

The trend of HR is changing rapidly. Something which was known as personal management a

few decades before which had very low importance is now considered as Human Resource

department and it is the most crucial department of the organization.

(figure 5.1)

But now HR is really being developed, new trends such as HR Analytics, Dashboard, Workforce

Analytics, HR scorecard and talent analytics are now changing the HR over the globe. These

trends are very beneficial for companies in order to cut down their cost and maximizing profit.

6) Scope:

The denim business is facing quite a pressure these days. The global recession has had a great

impact on people. Expensive is out, cheap is in.

Sales of denim jeans have declined and the low-cost knitted athletic wear has gained

considerable popularity.

To lower the cost of denim jeans, manufacturers have switched from cotton to polyester,

which is not appreciated by the consumers.

Denim was and is everyone’s favorite piece of cloth. Its customizability and

characteristics have witnessed many trends.

The denim industry has long reigned as one of most unshakable sectors of the fashion

world.

Artistic apparels have introduced many new innovative designs.

7) Company Profile:

7.1) Mission statement:

“To deliver quality products through service standards, innovative technology, empowerment,

and teamwork.”

7.2) Vision:

“To be a globally prominent innovative garment manufacturer and be ranked amongst the top

garment manufacturers in the world.”

7.3) Overview:

Artistic Apparels started as a small corporation in the year 1969, which has now become one of

the leading manufacturers of premium garments to well known brands across the globe. They

have a widespread market network with high customer satisfaction, smooth and fast service, and

effective price policies. Artistic apparels do not compromise on quality and they ensure high

quality standards from fabric to finished garment.

Computerize Gerber system guarantees an identical layout with consistent high quality. Every

cut- piece is assigned a barcode and a description.

The most essential process in denim garment is washing. The factory of Artistic apparels is

equipped with Tonello and Green Mac Korean washing machines, hydro extractors, steam

tumble dryers and an ozone generator. A total of 40,000 pieces are washed per day.

Each garment produced is inspected for its quality and safety by the factory workers. To ensure

further satisfaction of their customers they certify their products by the Oeko- Tex standard 100.

The person we interviewed: Mr. Faisal Masood (HR Head)

8) Human Resource Department:

8.1) Definition:

Departments are the elements associations structure to sort out individuals, reporting connections,

and work in a way that best backings the achievement of the association's objectives. Offices are

typically sorted out by capacities, for example, HR, administration, sales and marketing.

Be that as it may, a department can be sorted out in any capacity that bodes well for the client.

Offices can likewise be sorted out by client, by item, or by district of the world.

The human asset department is committed to giving successful approaches, strategies, and

human benevolent rules and to provide support to the organizations. Moreover, the human

resource function serves to ensure that the organization mission, vision, values or directing

standards, the organization measurements, and the variables that keep the organization directed

toward achievement are streamlined.

HR department is a basic segment of worker prosperity in any business, regardless of how little.

HR obligations incorporate finance, advantages, procuring, terminating, and staying up to date

with state and government tax laws.

The most well-known Human Resource employments that are assembled in the Human Resource

Department are the Human Resources Director, Human Resources Manager, Human Resources

Generalist, and Human Resources Assistant.

8.2) Artistic Apparels' HR Department:

The HR department of artistic apparel is headed by Mr. Faisal Mahmood (HR Head) assisted by

Mr.Ali (Payroll Manager). Basically their HR department is responsible for making and

implementing policies and procedures which act in the best way to make organization efficient.

It is also responsible for managing the human capital which starts with hiring the right person for

the right job at the right time and then training them to assemble the required set of skills and

then by having a proper process of managing the performance by finding out strengths and

weaknesses and by checking weather the performance is up to the standards or not.

They have a very huge HR department and they have employees for everything. They have made

subdivisions in HR department to assign teams of employees to look over different operations

such as payroll team, policy making team, performance managing team, time managing team,

compensation managing team, employee leave managing team, training and development team

and record keeping and reporting team etc.

The problem which we analyzed in this organization's HR department is that everything is done

manually and no technology is used. This is the era of technology, things happen and change

very fast. They use computers just to record the events happening such as which employee is

paid how much amount or who has taken how many leaves etc. Which will be a major drawback

for them in the future if they do not update their processes.

9) Recruitment and selection process:

9.1) Definition & Importance:

It’s a process of attracting and choosing candidates for employment. The Human Resource

Department of a company will often have detailed recruitment and selection policies that need to

be followed by those responsible for hiring new employees.

Employing the right person for your business might be the most important part of your venture.

These processes match up the right person with the right job skills. Hence emphasizing the

statement, “A company needs the right person for the right job at the right time.”

Interviews and background checks ensure that you employ a candidate who is reliable and

carries out the objectives you planned for providing quality services and goods to your customers.

An employee, at the time he or she is on the field, is representing your company. You really

wouldn’t want a person with uncompetitive skills or with a shady background to be representing

you in order to ensure the company’s reputation.

There’s no point of employing a person which does not has the right skills that you want for the

company at the moment. Hence, the process is a tool to ensure and check whether the person

you’re about to hire possess those skills that you’re seeking for, or not.

9.2) Over the globe:

Each company may have different basis of their own recruitment and selection process because

of the high variability in the number of jobs that the world has to offer. A capital intensive

company would want to hire high end technical employees. Whereas, a labor intensive company

would focus on raw labor that may be able complete the day to day chores of the company.

9.3) Artistic Apparels:

The company we visited, Artistic Apparels, when asked about this question about their

Recruitment and Selection process, went a little obstructive. He was, at first a little hesitant to

answer this question but then told us that in a country like Pakistan anything can happen. He

explained that at times they have to compromise their “process” after receiving certain calls or

simply an order from their heads. He further told us that 90% of the time, candidates our selected

upon merit. However the remaining 10% has to be compromised to maintain relationships.

Artistic Apparel’s Recruitment and Selection Process:

Completion of Application Forms

Comprehensive Interview

Background Investigation

Job offer

The company holds the process twice a year in order to stay competitive in the market, attaining

the best talent available in the market.

10) Training and development

10.1) Definition:

Training and development is an element of human resource management worried with

organizational movement aimed for enhancing the execution of people and groups in

authoritative settings. Training and development can likewise be depicted as 'an instructive

procedure which includes the honing of abilities, ideas, changing of mentality and increasing

more learning to upgrade the execution of employees. It has been known by a few names,

including "Human Resource Development", "Human Capital Development" and "Learning and

Development".

10.2) Company's Process:

This function is an important function for textile based company. If a company doesn't give

importance to training and awareness function then a company like textile can not get an

information about the development and new trends in the market. Artistic apparels gives training

to their employees, mainly about how to minimize the cost in which they tell them how to get

your work done effectively and efficiently. Firstly, they used to work on minimizing cost training

factor only but now new parameter has been defined to work on skills enhancement and to

interlink the ability and efficiency of an employee together.Textile based companies also make

their employee aware about the standard minute value strategy of the company in which they

even the observe that how an employee interacts with other employees, how they deal with

suppliers, they even observe their posture.

11) HR Analytics:

(figure 11.1)

11.1) Definition:

Human resource analytics is a range in the field of analytics that alludes to applying systematic

procedures to the human resource department of an association with the hope of enhancing

worker execution and therefore showing a better return on investment. HR analytics does not

only about gathering information on employee productivity. Rather, it means to give

understanding into every procedure by assembling information and after that utilizing it to settle

on applicable decisions about how to enhance these procedures.

What HR analytics does is associate business information and individuals information, which

can set up vital associations later on. The key part of HR analytics is to convincingly

demonstrate the effect the HR department has on the association overall. Building up a cause and

effect relationship between what HR does and business results - and afterward making

procedures taking into account that data.

HR has core capacities that can be improved by applying forms in analytics. These are

optimization, building up the workforce of the association, paying and acquisition. HR analytics

can burrow problems and issues encompassing these prerequisites and utilizing systematic work

process will control the supervisors to answer inquiries and gaining information from data within

reach, then settle on important choices and take appropriate actions.

11.2) Artistic's view:

The core objective of this report was to understand HR analytics and to observe how it is

implemented in practical world but when we asked about it in the interview, We got to learn that

they do not use any software for HR analytics. Mr. Faisal (HR Head) was aware of the software

but he insisted that due to the culture of Pakistan's denim industry it is not easy to bring

technological change in the processes.. It is a very time consuming task and he is working on it

because all that they (directors of the company) care about is profit maximization by cost cutting.

However, He has maintained a system to manually conduct HR analytics.

12) Workforce Analytics:

(figure 12.1)

Technically, workforce analytics is a combination of software and methodology that applies

statistical models to worker-related data, allowing enterprise leaders to optimize Human

Resource Management (HRM).

Workforce analytics can help enterprise leaders to develop and improve recruiting methods,

make general and specific hiring decisions, and keep the best workers with the company. In

addition, workforce analytics can help management personnel to:

Predict the probability of an individual employee's success.

Identify the need for new departments and positions.

Determine which departments or positions can be reassigned or eliminated.

Identify and quantify physical risks to employees in specific positions.

Identify and quantify factors that influence employee job satisfaction.

Analyze and predict current and future technological needs.

Assign and delegate responsibility for tasks and goals.

Optimize the enterprise's organizational structure.

Help the enterprise to identify, encourage, and cultivate its future leaders.

13) Talent Analytics:

13.1) Definition:

Talent Analytics is the utilization of insights, innovation, and mastery to substantial

arrangements of individuals information which results in better choices for an association. The

main object is to make information open to empower on-demand reporting.

There are three steps of talent analytics:

(figure 13.1)

13.2) Artistic's view:

There is no concept of talent analytics in artistic apparels. In the interview, Mr. Faisal said that

he has heard about but it is going to take a lot of time to bring this concept to the denim industry.

He believes that first priority should be bringing HR analytics and then talent Analytics.

14) HR Scorecard:

14.1) Definition:

The HR scorecard is a process for Human Resources to settle itself as a strategic planning

companion with line managers and executives in an association.

The assertion for an HR scorecard is that HR can and should build metrics to showcase how HR

activities impact profitability. The recommended process is:

1. Classify the crucial deliverables for Human Resources.

2. Classify HR’s consumers (for the deliverables).

3. delineate HR activities that accommodate the crucial deliverables (such as high-talent staffing or

a retention initiative).

4. Execute a cost-benefit analysis of activities that accommodate deliverables.

Lastly, it’s crucial to ask the correct questions to pin down if HR is accommodating the relevant

deliverables. Examples of these questions are:

5. How many exceptional candidates do we recruit and retain for each strategic job opening?

6. How many hours of results-oriented training do new employees receive annually?

7. What is the differential in merit pay between high-performers and low-performers?

(figure 14.1)

14.2) Artistic's View:

Mr.Faisal said that HR Scorecard is only used by the multi-nationals in Pakistan. It is something

which the denim industry can only read about. Even though it is extremely important and useful

tool for an organization but it cannot be implemented because all these companies are run by

people of old thoughts.

15) Future:

What we learned from this project is that all the company's in the denim industry of Pakistan

belong to the people of old thoughts. All the directors of this company believe in old methods

which were hugely successful in their time. They completely ignore the fact that their era is long

gone and they just not accept the new changes especially the technological changes because they

increase cost. The only thing which they care about is maximizing the profit by reducing cost.

The new trends in business processes are bringing drastic change in HR. These companies have

to understand these changes and have to keep themselves up-to-date in order to survive. The only

hope now are the off-springs of these old aged directors. They might understand these new

changes and implement new processes when they'll be the in charge.

16) Conclusion:

Conclusively, when you look at all these Pakistani companies and the feedback we got from Mr

Faisal Mahmood, who has been working with top notch Pakistani companies, we can deduce that

the field of Human Resource Management, still has a long way to go. Even when you look at the

multinationals, they too except three or four companies have not been using the HR software that

the rest of the world has been using since a long time now. Although the Pakistani indusrty has

seen rapid increase in the field of HR recently, it still needs room for improvement.

Focusing on Artistic Apparels, what we noticed over there, that the company indeed is working

hard and trying their best to get the HR Department running by employing specialists and highly

skillfull managers.

Overall, I think by the end of this course, each and every student must be aware of the

importance of this department. A department which was given the least importance, or did not

even exist in many companies, a few decades earlier, is now considered as one of the most

crucial department of the company.

17) Recommendations:

They should use the resources more efficiently so that they can maximize the profit

margin and net profit by reducing the cost.

They should select the proper thread for denim garments to minimize sewing and seam

performance issues.

HR managers should hire suitable applicants so that work can be carried out effectively

and efficiently.

Prepare employees for assignment by providing orientations and training programs.