Strategic Human Resource PlanningTerm report

Afroze Company

Group members: Sameen Khan Madiha Sheikh Rushna Khalil Usama Kalam

Submitted To: Ms.Sayma ZiaSubmission Date: 2nd May 2014

ACKNOWLEDGEMENT

First of all we would like to thank Almighty Allah, for the completion and compilation of this report.

We wish to express our gratitude and appreciation for the generous assistance to the following people who supported us for this project:

Our parents Our Course Instructor

And our deep gratitude for sharing with us his experiences and information goes to: Mr. Syed Tanveer Ahmed (General Manager, HR Systems for Compliance)

We are indebted to those who generously helped us to fill in the required information for our project completion. Any legal or factual errors are ours alone as concerned specialty shared their

immense and tremendous knowledge with us which may be subject to perception biases.

We really have to express our gratitude towards them because this report would never have been possible without the immense cooperation and support they rendered towards us. They

responded positively to help us with our assignments and helped us tremendously with the projects undertaken. They let us embark on such an exhilarating experience and journey that

helped us learn a lot.

Meanwhile Mis Sayma’s supervision and counsel have proved invaluable.We would really like to thank our respected teacher for her enlightening suggestions and advises. Her professionalism, guidance, thoroughness, dedication and inspirations will always serve to us

as an example in our professional life.

Finally, a thank you note to our teacher for being an enlightening helping-hand through-out our course.

EXECUTIVE SUMMARY

This report provides an analysis of the Human Resource Planning Process of AFROZE

TEXTILES Organization. It has touched different dimensions which belong to the topic such as

Introduction of the Organization, its history, the human resource planning process they use and

the References and Conclusion of the Report.

The purpose of this project was to understand the Human resource Planning Process in practical

life and how it can be improved. This report aims at understanding where pitfalls arise in order to

over-come them.

We were given the opportunity to learn much about the Human resource planning System and

Process of the AFROZE Company.

The sections in this report discuss the basic organizational strategy of the Afroze Company, its

mission, vision and values. The same part also discusses the history and the beginning of the

organization. The next section deals with the environment that the company operates in, its labor

market difficulties, its environmental scanning programs and preplanning processes. There are

also sections discussing job analysis, performance evolution and the management systems of the

human resources of the organization. The later parts cover the techniques with which the

company forecasts its labor supply and demand and plans for succession management. In short,

the report broadly covers the extent of the whole strategic human resource planning model

discussed in the text book and establishes similar theories and functions about the organization

concerned.

We feel that this knowledge will be helpful in future work terms, and in our careers.

THE STRATEGIC HR PLANNING MODELThis entire report revolves around the understanding of the strategic HR planning model so it is very important to understand the workings of the model.

A strategic planning model is comprehensive in nature that is based on generic corporate and business strategies along with multitude of HR policies and practices. This model not only incorporates traditional human resource planning model i.e. forecasting availability and supply, but it complements the traditional view by encompassing more strategic arenas.

The numbers in the model denotes the step wise processes which are:

1. First, the planning process is more agile; changes in plans are much more frequent and are often driven by events rather than made on a predetermined time schedule. Organization should first monitor, identify and analyze external environmental forces that can affect the strategies.

2. The development of corporate strategy

3. By contemplating different forecasting techniques, organization should figure out the internal assessment i.e. the strength and weakness of the relative human capital and resources. The relative skill set should also be determined in order to make the organization a learning organization. Other than that, the competitive advantage should also be identified for the HR department. The planning process is more proactive. Successful organizations no longer simply respond to changes in their environment, they proactively shape their environment to maximize their own effectiveness.

4. The corporate strategy should be aligned with the divisional and functional level strategy by aligning individual goals with the corporate goals.

5. Once strategic planning is under way, a process must be undertaken by the organization to design and align its HRM policies and practices to provide for organizational success. Organization should then identify and postulate HR policies and procedures in order to gain full advantage of the strategy implemented.

6. In the end, results should be measured and evaluate the performance after which modify plans accordingly. The last component provides a means to assess and sustain the competence and performance of the organization and the people in it with regard to outcomes that the organization seek

INTRODUCTION OF THE COMPANY

Historical perspective

Afroze Textile Industries started as a cottage industry in 1973 founded by Mr. Mehboob Alam

Lari (Late). At that time the factory just comprised of looms and machinery. Gradually they

started with limited finance and initial investment was done personally by the founder and

became a booming name in the textile industry as the Textile sector had always been in a bloom

from the very start. After the death of Mr. Mehboob Lari, his sons Mr. Afroze Lari (Director

Production) & Mr. Feroz Lari (M.D) carried on with their father’s business they inherited, and

are presently running the business successfully.

Initially when they started they just produced terry towels, the company’s quality products

quickly earned trust from across the continents, encouraging the management to step into the

home textile field.

At start they had many rivals like Gul Ahmed, Regal Textiles, and Sitara Textiles and so on but

still Afroze Textile strived and struggled hard to become successful.

Products:

• Towels

• Bed sheets

• Curtains

• Kitchen lining

• Garments

CURRENT ORGANIZATIONAL STRATEGY AT THE AFROZE TEXTILES

Implemented Corporate Strategy

Corporate Strategy at Afroze Textiles is defined as:

The overall scope and direction of a corporation and the way in which its

various business operations work together to achieve particular goals.

MISSION

Over three decades ago, we emerged. And then started to grow - gaining more strength,

yielding more output, inspiring more lives - until we reached the top in our field. Yet, even

at this stage, the nature of growth continues to stimulate our genes. So we move on and on.

VISIONTo be a complete and most respected processor for entire range of our products and

recognized for challenging conventional practices and delivering on our commitments with fair trade practices.

VALUESBUILDING HUMAN CAPITAL

o Afroze Textiles invests nurtures and support an environment that harnesses the energies and aspirations of our employees and empower them for many innovative opportunities with technical development and vocational training from time to time uplifting their skills and capabilities. We have many program and services that motivate the workforce and cultivate loyalty.

o Afroze Textile is an equal opportunity employer dedicated to providing a clean and encouraging working environment. We have a well maintained occupational health unit with a 24 Hr Ambulance facility managed by qualified person.

Company Profile:

The Company’s corporate hierarchy is tall (high power distance) and it emphasizes on

individualism and high uncertainty avoidance and there is masculinity factor in the corporation.

Type Private

Industry Textile Industry

Founded 1973

Headquarters Karachi, Pakistan

Key people Mr. Feroz Lari

Mr. Afroze Lari

Product-Line Towels, Curtains

Garments, Bed sheets

Revenue $ 150 million per year (2006)

Employees

Website

1100 +

http://www.afrozetextiles.com

Industry Profile:

Afroze Textiles falls under the category of Textile Industry. Its main focus is on production to

achieve the demand of market. Apart from that it uses latest equipments (Monsfortsthermosol

continuous dyeing machine) for weaving, spinning threads which are later developed into cloth

and state-of-the-art plants such as waste water treatment plants, reverse osmosis, compaction

machines etcetera. (www.afrozetextiles.com)

Competition:

Afroze Textiles has rivals as Gul Ahmed, Lakhani etcetera and it has differentiated itself by

using state-of-the art equipments coupled with cost reduction through reduction of advertising

expenses.

Labor Market Assessment:

Afroze Textiles considers the qualified pool for selecting as their employees.

It focuses on Qualification and training skills that candidates have acquired and on earning

ranges so that the company doesn’t set pay ranges too low that makes it difficult to attract

qualified employees.

ENVIRONMENTAL SCANNINGEnvironmental scanning is a process of gathering, analyzing, and dispensing information for tactical or strategic purposes. The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering.

Kinds of Environmental Scanning:

Ad-Hoc Scanning - Short term, infrequent examinations usually initiated by a crisis

Regular Scanning - Studies done on a regular schedule (e.g. once a year)

Continuous Scanning (Also Called Continuous Learning) - continuous structured data collection and processing on a broad range of environmental factors

Environmental scanning usually refers just to the macro environment, but it can also include industry, competitor analysis, marketing research (consumer analysis), new product development (product innovations) or the company's internal environment. Afroze textile therefore prefers environmental scanning on a continuous basis to keep up with the dynamic needs of the industry.

Environmental scanning in Afroze textile includes external analysis, internal analysis, macro environment, PEST and micro environment. Afroze Textiles do not use five force analyses as yet.

A scan of the external macro-environment in which the Afroze Textile operates can be expressed in terms of the political, economic, social and technological factors.

The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the analysis of these macro environmental factors.

Political Factors:-Political factors include government regulations and legal issues and define both formal and informal rules under which the firm must operate. Some examples include:

tax policy employment laws environmental regulations trade restrictions and tariffs political stability

Economic Factors:-Economic factors affect the purchasing power of potential customers and the firm's cost of capital. The following are examples of factors in the macro economy:

economic growth interest rates exchange rates inflation rate

Social Factors:-Social factors include the demographic and cultural aspects of the external macro environment. These factors affect customer needs and the size of potential markets. Some social factors include:

health consciousness population growth rate age distribution emphasis on safety

Technological Factors:-Technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. Some technological factors include:

R&D activity Automation technology incentives rate of technological change Five force analysis Threat Of New Entrants Threat Of Substitutes Bargaining Power Of Buyers Bargaining Power Of Suppliers Rivalry Among Existing Firms

WHY ARE THEY USEFUL?Macro environmental and industry scanning are useful as they reveal current conditions of market. It help managers of Afroze textiles to predict the future characteristics of the organizational environment and hence make decisions today that will help the Afroze textiles deal with the environment of tomorrow.

PROGRAM EVALUATIONAligning HRM programs and policies with organizational goals is the beginning of the strategic HR process. HR's ability to contribute to the organization's bottom line involves more than aligning its talent management accountabilities with the mission and vision of the organization. It means continually evaluating and strengthening these accountabilities to ensure value, meaningful impact, and competitive advantage.

Afroze textile faces intense competition from the booming textile sector of Pakistan where everyday several new names spring up and the industry is saturated with brands, it is absolutely important for a company like Afroze that operates in such a competitive sector to continuously keep on aligning its HR programs and policies with the objectives of the company.

JOB ANALYSISA job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. You need as much data as possible to put together a job description, which is the frequent outcome of the job analysis.

Additional outcomes include recruiting plans, position postings and advertisements, and performance development planning within your performance management system. The job analysis may include these activities:

reviewing the job responsibilities of current employees,

doing Internet research and viewing sample job descriptions online or offline highlighting similar jobs,

analyzing the work duties, tasks, and responsibilities that need to be accomplished by the employee filling the position,

researching and sharing with other companies that have similar jobs, and

Articulation of the most important outcomes or contributions needed from the position.

Afroze textiles also use the traditional methods of job analysis to categorize jobs within the textile sector. No process can be entirely accurate and fully serves the purpose. Job analysis is no exception to it. The process involves a variety of methods, tools, plans and a lot of human effort. And where there people are involved, nothing can be 100 percent accurate. However, they may be appropriate considering various factors including organizational requirements, time, effort and financial resources. Since the entire job analysis processes, methods and tools are designed by humans only, they tend to have practical issues associated with them. Human brain suffers with some limitations, therefore, everything created, designed or developed by humans too have some or other constraints.

Coming back to the subject, even the process of job analysis have lot of practical problems associated with it. Though the process can be effective, appropriate, practical, efficient and focused but it can be costly, time consuming and disruptive for employees at the same time. It is because there are some typical problems that are encountered by a job analyst while carrying out the process.

SPECIFIC JOB ANALYSIS TECHNIQUES IN AFROZE TEXTILES

The organization shared with us a generic job description of a textile designer which is the most wanted job in the company, it is given below:

Textile designers create two-dimensional designs that can be used, often as a repeat design, in the production of knit, weave and printed fabrics or textile products.

Working in both industrial and non-industrial locations, they often specialize, or work in a specialist context, within the textile industry. The two major fields are:

interiors (upholstery, soft furnishings and carpets); Fabrics for clothing (fashion or specialist, e.g. fire-proof).

Textile designers may also work in associated industry functions, for example, designing wrapping paper, packaging, greetings cards and ceramics.

Typical work activities

These include:

liaising with clients and technical, marketing and buying staff to plan and develop designs;

accurately interpreting and representing clients' ideas;

producing sketches, worked-up designs and samples for presentation to customers;

making up sets of sample designs;

working out design formulae for a group of samples;

assessing and approving completed items and production standards;

using specialist software and computer-aided design (CAD) programs to develop a range of designs;

experimenting with color, fabric and texture; maintaining up-to-date knowledge of new design and production techniques and textile

technology;

developing new design concepts; ensuring that projects are completed on time; visiting sites and other sources of ideas for designs; sourcing fabrics and other materials at trade fairs, markets and antique shops; attending trade shows, as a delegate or as an exhibitor - this may involve representing the

company with a display or stand, or appraising the work of competitors; keeping up to date and spotting fashion trends in fabric design by reading forecasts in

trade magazines and using internet resources; developing a network of business contacts;

From the job description shared above, it appears that the company uses the HAY system of job analysis techniques, which is a methodology used by corporations and organizations to map out their job roles in the context of the organizational structure.

ANNEXURE

QUESTIONNAIRESection 1: Human Resource Management Practices (HRM Practices)

Please CIRCLE the levels of agreement in each of the items below with regards

to nine criteria of Human Resource Management (HRM) Practices of your

firm.

Level of Agreement

Strongly Disagree

Disagree Neutral Agree Strongly Agree

--------------------------

1. Human Resource Planning (HR Planning)Firm forecasts personnel requirements on a timely basis.

1 2 3 4 5

Firm has spent a great amount of money on selecting staff.

1 2 3 4 5

A large number of people are involved in HR planning in firm.

1 2 3 4 5

Structured and Standardized interviews have been used in firm.

1 2 3 4 5

2. Staffing Practices

Firm adopts selectivity in hiring. 1 2 3 4 5The focus of staffing in firm is for

                 a) Manual and Physical skills 1 2 3 4 5                 b) Technical skills 1 2 3 4 5                 c) Problem solving skills 1 2 3 4 53. Incentives Practices

Firm has favorable incentive practices to encourage employees to achieve the firm’s objectives.

1 2 3 4 5

Firm has very fair incentive practices, aimed at rewarding people who accomplish their goals.

1 2 3 4 5

Firm has incentive practices which really recognize people who contribute the most to firm.

1 2 3 4 5

4. Performance Appraisal

Firm uses performance based appraisal. 1 2 3 4 5Firm uses employee’s self-ratings on performance.

1 2 3 4 5

Superiors in firm frequently discuss performance with subordinates.

1 2 3 4 5

5. Training Program

Extensive training programs are provided for employees in firm.

1 2 3 4 5

Employees normally go through various training programs every year.

1 2 3 4 5

Firm provides formal training to promote skills to new hires as well as to promoted or existing employees.

1 2 3 4 5

6. Team work

Firm always gets team’s opinion and ideas before making any decision.

1 2 3 4 5

Firm forms focused groups to solve problems.

1 2 3 4 5

Teams are extensively provided with sufficient power and resources to solve problems.

1 2 3 4 5

7. Employee Participation

In firm, employees are allowed to make many decisions.

1 2 3 4 5

Employees are often asked by their supervisors to participate in decisions.

1 2 3 4 5

Employees are encouraged to suggest improvement in the way jobs are done.

1 2 3 4 5

Supervisors keep open communication with employees in firm.

1 2 3 4 5

Section 2: Operational Performance

Please CIRCLE the level of achievement on each of the items below with regard to four

dimensions of firm’s operational performance.

Level of Achievement

Very Low Low Neutral High Very High

--------------------------

1. Product Quality

Rate the level of -               a) Firm’s high performance products.

1 2 3 4 5            b) Non-defective rate of firm’s products.

1 2 3 4 5

            c) Product Serviceability, Durability & Quality.

1 2 3 4 5

2. Product Cost

Rate the ability to reduce -            a) Product Inspection

1 2 3 4 5            b) Inventory cost involvement 1 2 3 4 5            c) Overhead Cost 1 2 3 4 5            d) Product Cost 1 2 3 4 53. Delivery

Rate the level of -              a) Products on-time delivery to customers 1 2 3 4 5            b) Short lead time from order to delivery

1 2 3 4 5

            c) Cycle time (From Production to final product)  

1 2 3 4 5

4. Flexibility

Rate the level of ability to -            a) Adopt changes in product mix.

1 2 3 4 5            b) Handle difficult/non standard orders. 1 2 3 4 5            c) Make product according to order. 1 2 3 4 5            d) Adjust capacity quickly. 1 2 3 4 5            e) Scale production up and down quickly.

1 2 3 4 5

Section 3: Firm PerformanceLevel of

Please CIRCLE the level of achievement on each of the items below with regard to firm’s

performance.

Achievement

Very Low Low Neutral High Very High

--------------------------

1. Non-Financial Performance

Compared to past year, rate the level of -               a) Increase in employee productivity.

1 2 3 4 5            b) Reduction in employee absenteeism.

1 2 3 4 5

2. Financial Performance

Compared to your competitors what is firm’s -             a) Sale Growth Rate. 1 2 3 4 5            b) Market Share Percentage. 1 2 3 4 5

Section 4: Business Operations ModesFor the following questions, please CIRCLE one of the boxes according to the degree of achievement or adoption of firm. There are two sides of each factor, left & right. Respondent should choose one between the left & right and rate with five degrees, ranging from 1,2,3,4 to 5 which means (5) Very High, (4) High, (3) Moderate, (2) Low & (1) Very Low. If the level of achievement or adoption of firm between 2 sides (left & right) makes no difference or is currently not adopted, then please CIRCLE zero (0) number.

1. Centralization versus Decentralization Firm transfers responsibilities     5    4   3   2   1    0   1   2   3    4   5      Firm transfers responsibilitiesto higher level.                             to lower level.

Communication among               5   4    3   2   1    0   1    2   3   4   5      Employees have greateremployees is not extensive.         communication among them.

2. Trust versus Distrust

Employees only understand        5   4   3   2    1   0   1   2    3   4   5        Employees understandtheir own behaviours.                  each other’s behaviour.

Employees care about their        5   4    3   2   1    0   1   2    3   4   5        Employees feel sense of own responsibilities only.                   responsibilities for each other.

3. Proactive Culture versus Reactive CultureDecision making is late to           5   4    3   2   1    0   1   2    3   4   5       Decision making is fast take any action & in                    to take action & in conservative manner.                                                                                 innovative manner.

Firm is unresponsive to             5   4    3   2   1    0   1   2    3   4   5         Firm is responsive to change in business                     change in businessenvironment.                                                                                              environment.

Section 5: Company Information1. Number of employees:       less than 50              50 to 100                  101 to 150                                                   151 to 200                More than 2002. Class of firm:                     Local                        Foreign/Export         Joint Venture                                                                                     Oriented3. Years of Operation:          less than 5                  5 to 10                        11 to 15                                            16 to 20                      More than 204. Firm’s Sale Volume:   ______________________ (Rs.)5. Industry Type:                 Manufacturing            Service                       Bank                                            Others, please specify_______________________________6. Major Products (Atleast one product): _______________/_______________/_____________

Section 6: Personal Information1. Sex:                                  Male                           Female2. Age:                                 less than 30                30 to 40                       41 to 50                                            51 to 60                     More than 603. Education Level:             Bachelor                    Master                          Doctor                                            Others, please specify_______________________________4. Position/Title:                 Entrepreneur               Employee                    Supervisor                                           Manager                     President & Vice President                                            Others, please specify_______________________________5. Seniority:                         ______________________years

Thank you very much indeed for your time and effort filling in this questionnaire. We wish you good health and luck. We would like to inform you that this questionnaire is anonymous. Your personal information will never be disclosed to outsiders.