Fauji Fertilizer Company Limited

Internship Report 2010

INTRODUCTION OF THE ORGANIZATION

FFC occupies a special niche in the industrial and agricultural

development of the country with a successful track record of

excellence business performance. The company moved from

one high level of achievement to other establishing records year

after year and is now ranked as a top tier player in the fertilizer

industry with highest production capacity and market

participation.

During the year, FFC acquired 100% management control. Of

PSFL, a wholly owned subsidiary of NFC, through competitive

bidding on payment of RS.8.15 billion to the Privatization

commission. With the integration of PSFL, which now stands

dissolved and merged with FFC effective july1, 2002, pursuant

to a scheme of amalgamation approved by the Honorable High

Court of Sindh, the production capacity of our urea

manufacturing facilities has more than tripled from 570 thousand

tones p.a. in 1982 to almost 2 million tones p.a. in this short

span of less than 25 years of existence. FFC now owns three

mega plants worth over 1 billion dollars in terms of replacement

value, besides over 49% stake in FJFC.

2002 was a difficult year and business conditions were

challenging because of the economic fall out of the recent

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Department of management sciences


regional crisis. Uncertain economic and weather conditions, high

natural gas prices, global product oversupply, falling

international urea prices and weak domestic demand

contributed to an extremely difficult operation environment

during the year which created a downward pressure on prices

and margins.

These adverse factors are continuing since past few years and

have created intense competition for the industry players;

however, once again our diversification has paid dividends and

strategies implemented over the years allowed the company to

maintain solid financial foundation throughout this prolonged

downturn.

With a vision to acquire self - sufficiency in fertilizer production in

the country, FFC was incorporated in 1978 as a private limited

company. This was a joint venture between Fauji Foundation (a

leading charitable trust in Pakistan) and Haldor Topsoe A/S of

Denmark.

The initial authorized capital of the company was 813.9 Million

Rupees. The present share capital of the company stands at Rs.

3.0 Billion. Additionally, FFC has Rs. 1.0 Billion stakes in the

subsidiary Fauji Fertilizer Bin Qasim Limited (formerly FFC-

Jordan Fertilizer Company Limited).

FFC commenced commercial production of urea in 1982 with

annual capacity of 570,000 metric tons.

Through De-Bottle Necking (DBN) program, the production

capacity of the existing plant increased to 695,000 metric tons

per year. Production capacity was enhanced by establishing a

second plant in 1993 with annual capacity of 635,000 metric

tons of urea. FFC participated as major shareholders in a new

DAP/Urea manufacturing complex with participation of major

international/national institutions. The new company Fauji

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Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer

Company Limited) commenced commercial production with

effect from January 01, 2000. The facility is designed to produce

551,000 metric tons of urea and 445,500 metric tons of DAP.

This excellent performance was due to hard work and dedication

of all employees and the progressive approach and support from

the top management. In the year 2002, FFC acquired ex Pak

Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur

Mathelo, District Ghotki from National Fertilizer Corporation

(NFC) through privatization process of the Government of

Pakistan. This acquisition at Rs. 8,151 million represents one of

the largest industrial sector transactions in Pakistan

Recently Fauji Fertilizers Company offered the highest bid of Rs

8.151 billion for the Pak-Saudi Fertilizers Limited here on

Saturday. Second highest bidder was the Dawood Hercules that

offered Rs 3.78 billion while the lowest bid of Rs 3.602 billion

was received from Engro Chemicals. In simple words Fauji

Fertilizers Company offered Rs 4.50 billion rupees more than

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Engro and Rs 4.371 billion more than Dawood Hercules in

bidding for Pak-Saudi Company. Sealed bids for the

privatization of Pak-Saudi Fertilizer Company were opened by

journalists on the request of Privatization Minister in the

presence of bidders, senior government officials and private

sector representatives. Three companies, Fauji Fertilizers,

Engro Chemical and Dawood Hercules filed bids for the said

company. Fauji Fertilizers offered Rs 135.85 for each share of

the Pak-Saudi Company, Dawood Hercules offered Rs 70 per

share, while Engro Chemical offered Rs 66.70 for a share.

Seeing a far high difference in the price offered by Fauji

Fertilizers, the other two bidders did not take interest in

contesting privatization of the said company and wished a good

luck for FFC.

NATURE OF THE BUSINESThe company is a public company incorporated in Pakistan

under the Companies Act, 1913, (now the Companies

Ordinance, 1984 and its shares are quoted on the stock

exchanges in Pakistan. The principal activity of the company is

manufacturing, purchasing and marketing of fertilizer, including

investment in other fertilizer manufacturing operations. Now FFC

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is proposed for steel sector also. FFC is in the progress of

setting up a Wind Power Project with an estimated investment of

US $ 130 Million at Jhimpir Distt. Thatta, Sindh with an installed

capacity of 50 Mega Watts for onward supply to national

Transmission & Dispatch Company (NTDC).

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PUPOSE OF THE STUDYThe main purpose of the study in hand is to gather relevant

information to compile internship report on Fauji Fertilizer

Company Limited

To observe, analyze and interpret the relevant data competently

and in a useful manner.

To know how to practically work in an organization.

To develop interpersonal communication

Scope of Study

As an internee in FFC the main focus of my internship was on

HR Department. I included all the concerned sections in which I

learned how to make different types of reports and I was given

different responsibilities for certain durations.

The area where I done my internship is Human Resource

Department which consists of three main sections:

(1).HR Section (MANAGEMENT)

(2).HR Section (STAFF)

(3).Labor Law& Handling of Disciplinary Case

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METHODOLOGY OF STUDY

The report is based on my six week internship program in FFC.

The methodology reported for collection of data is primary as

well as secondary data. The primary source of information is my

personal observation while working with staff and having

discussion with them. Specially, in HR Section to get the

relevant information about certain topics.

Primary Data:

Personal observation

Discussion with staff

Practical work

Secondary Data:

Policy Manuals.

www.ffc.com.pk

www.faujifertilizer.com

HR Department Goth Machhi

A Research Report on Fertilizer Industry in Pakistan

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http://www.faujifertilizer.com/

http://www.ffc.com.pk/


FFC HISTORY

During the mid 70's the Government of Pakistan expressed the

desire that Fauji Foundation should look into the possibility of

establishing a urea manufacturing plant to fill the projected gap

in demand and indigenous production. The shortfall was being

met through imports at a high cost in foreign exchange. The

project was sanctioned by the Government of Pakistan on 17th

December, 1977.

FFC was incorporated on May 8, 1978.

Based Unit at Goth Machhi commenced commercial production

in June 1982 with annual designed capacity of 570 thousand

tones urea.

Based Unit up-graded in April 1992 to produce 695 thousand

tones annually.

Expansion Unit at Goth Machhi commenced commercial

production in March 1993 with designed capacity of 635

thousand Tonnes.

FJFC founded in November 1993 with initial contribution of Rs. 1

billion. The company’s investment in FJFC now stands at over

RS 4 billion.

PSFL acquired on May 31,202 and merged with FFC on July 1,

2002. Situated at Mirpur Mathelo the plant has annual designed

production capacity of 574 thousand tones.

The aggregate designed production capacity of FFC is three

plants now stand at almost 2 million tones annually.

Since inception to 2002, FFC has produced and marketed

21million tones of urea. In terms of import substitution this has

resulted in national savings of well over 3 billion dollars in

foreign exchange.

Since inception the company has sold/marketed almost 28

million tones of fertilizers.

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FFC is the only company providing Mobile Farm Extension

Services at the farmers, door-step since 1986.

FFC was the first company in fertilizer Sector to achieve in 2002

the highest ever.

FFC was the first company in Fertilizer sector to achieve ISO

9002 certification in 1997.

FFC has been placed amongst the list of top 25 companies of

PAKISAN BY KSE for eight years consecutively, topping the list

in 1997.

21.5 million Man-hours of operation without injury were achieved

in 2003, the highest ever.

The company’s annual Reports have been adjudged as one of

the best reports in the Chemical sector twice by joint committee

of ICAP/ICMAP.

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Vision Statement

FFC's vision for the 21st

Century remains focused on

harmonizing the Company

with fresh challenges and

encompasses diversification

and embarking on ventures

within and beyond the

territorial limits of the Country

in collaboration with leading

business partners.

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Mission

Statement

FFC is committed to play its

leading role in industrial and

agricultural advancement in

Pakistan by providing quality

fertilizers and allied services

to its customers and given

the passion to excel, take on

fresh challenges, set new

goals and take initiatives for

development of profitable

business ventures.

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CORE VALUES

At FFC people seek uncompromising integrity through each

individual’s effort towards quality product for our customers and

sizable contribution to the national exchequer.

Our business success is dependent on trusting relationships. Our

reputation is founded on the integrity of the Company’s

personnel and our commitment to our principles of:

Integrity: At FFC we seek uncompromising integrity through

each individual's effort towards quality product for our

customers and sizable contribution to the national exchequer.

Trusting Relationships: Our business success is

dependent on trusting relationships. Our reputation is founded

on the integrity of the Company's personnel and our

commitment to our principles of.

Honesty: Honesty in communicating within the Company and

with our business partners, suppliers and customers, while at

the same time protecting the Company's confidential information

and trade secrets.

Customer Focus: Excellence in high-quality products and

services to our customers.

Consistency: Consistency in our word and deed.

Management Commitment: Compassion in our

relationships with our employees and the communities affected

by our business.

Miscellaneous Values: Fairness to our fellow employees,

stakeholders, business partners, customers and suppliers

through adherence to all applicable laws, regulations and

policies and a high standard of moral behavior.

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OBJECTIVES OF THE COMPANY

The broad objectives of the company are:

To play a vital role in agricultural development of the country.

To provide the quality products.

To be environment-friendly organization.

To sustain its role as market leader in urea production and

marketing.

To deliver exclusive values and services to the shareholders

and customers through its strategies.

To place great value on social responsibilities and welfare.

To develop a culture based on principles of honesty, integrity,

fairness and respect.

To create the agricultural awareness in farmers through media

and training.

To provide farmers technical services through technical services

department free of cost.

To hire and retain satisfied workforce.

To set high standards for production and sale and achieve these

objectives.

To promote education in the farmers community by awarding

merit scholarships.

To help upgrade the capability of fertilizer research, extension

and marketing personnel in the transfer of fertilizer technology.

To provide a neutral common platform to resolve contentious

issues in fertilizer sector.

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Brand Name

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The Company annually

produces 2.05 million

metric tons of urea,

marketed under the

brand name of “Sona


ISO-9002 Certification

Another major landmark for Fauji Fertilizer Company is ISO-

9002 certification for its manufacturing division 1st Goth Machhi.

Quality in all areas has been a hallmark of the Company right

from the beginning and our product “SONA UREA” has already

established its rightful place in the market.

Therefore to bring their system in line with internationally

recognized quality standards, they decided to go for ISO-9002

certification. To achieve a total quality management system,

FFC surpassed the requirement of ISO-9002 standards by

including all support services like Admission, personnel, Finance

Hospital, Schools and Management Club etc. also in the

certification scope. They selected Bureau of VERITAS quality

international (BVQI), England, a leading certification agency as

our registrar. BVQI is honored by various accreditation

authorities of the world. Quality management system of FFC got

ISO certified in its first attempt during November 1997 with the

honor of being the 1st Fertilizer Plant in Pakistan. Since then

they have not looked back. They have passed all surveillance

audits with commendable remarks from their registrar.

Since 21 February, 2001 Quality Management system of FFC

now stands recertified (ISO 9002) by BVQI after successful

completion of initial certification period of 3 years.

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Achievements

SAFETY AWARDS

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ISO KSE Top

Companies Award

Asian CSR Award

Health and

Safety

TPM Award

SAFA Award

NCCA AwardICAP & ICMAP Overall

ICAP & ICMAP Sector


The effectiveness of the safety program is reflected by the

various awards won from National Safety Council (USA) since

1982. The company has received 15 awards of honor.

Two special safety awards on outstanding performance were

given to FFC in 1989 / 1993 by the council for constantly

achieving outstanding performance in the field of safety. FFC

also has the honor of achieving all time best 16.49

Million man-hours without lost time injury as of 31

December 2001, which is the all time best.

ISO Certifications

Sr. No

Certification Name

Brief Description of Certifications

1ISO-

9001:2008Quality Management System

2ISO

14001:2004Environmental Management

System

3

OHSAS 18001:2007 Occupational Health & Safety

Assessment Series

POLICY FORMULATION

QUALITY POLICY:

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Fauji Fertilizer Company Limited is committed to attaining

excellence in all areas of its operations. They continue to strive

for improvement through coordinated efforts, feedback, and

training and employee motivation. They are determined to

ensure customer satisfaction, Company’s productivity &

profitability, occupational health, safety and care for their

environment and continue playing their role in the industrial and

agricultural development of Pakistan.

SAFETY AND HEALTH POLICY:

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At FFC, we are committed to maintain a safe and healthy

environment having the same significance as productivity. They

inculcate safety culture by specific training, incentives, and

effective control, to ensure a safe and healthy working

environment. They resolve to attain the highest standards of

safety and health through consistent improvements in on-the-job

and off-the-job safety and in the working conditions.

ENVIRONMENTAL POLICY:

Fauji Fertilizer Company Limited is committed to achieve

environmental protection through compliance with all the

applicable laws and regulations. An active pollution prevention

program is followed with efforts for continual improvement in the

environmental aspects related to plant operations.

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Top 25 Companies KSE Awards

7th Position in 2009:

In 1991, the company was listed on Karachi and Lahore Stock

Exchanges and in 1992 on Islamabad Stock Exchange when it

was formed. Shares were offered to the public and company

employees. In 1993/94 FFC achieved the distinction of paying

the highest income tax in the country.

Based on the exemplary dividends to the shareholders and

other criteria of Karachi Stock Exchange, FFC has consistently

remained in the list of top 25 best performing companies of

Pakistan consecutively for 14 years since 1994. As a result of

excellent performance over the years, the company's ranking in

the Karachi Stock Exchange list of 25 companies improved from

fifth position in 1995 to second in 1996, it was awarded the first

position in 1997 and again second prize in 1998.

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Addresses

HEAD OFFICE

93-Harley Street,P.O Box No. 253, Rawalpindi.

PABX: 9272307-15,9272318-9

TELEX: 5785 FFCRP PK, 54310 FFCRP PK

TELEFAX: (051)9272316,9272345

MANUFACTURING DIVISION

PLANTS

Goth Machhi, Sadiqabad, Rahim Yar Khan.

PABX: (068)5786420-9,(068)5873001-9

TELEX: 42469 FFCGM PK, 42468 FFCGM PK

TELEFAX: (068)5786401

MARKETING DIVISION

Lahore Trade Centre

1-Shahrah-e-Aiwan-e-Tijarat,Lahore

PABX: 6365736,6369137-40,6308429-30

TELEX: 44843 FFC PK

TELEFAX: (042)6366324

RESIDENT MANAGER KARACHI

B-35, KDA Scheme No. 1,Karsaz

Karachi.

TELEFAX: (021)4390117,4390122

TELEPHONE: 4390115-6,4390118-20

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BOARD OF DIRECTORS

CHAIRMAN

Lt. Gen. Hamid Rab Nawaz, HI(M) (Retired)

CHIEF EXECUTIVE AND MANAGING DIRECTOR

Lt. Gen. Malik Arif Hayat, HI(M) (Retired)

DIRECTORS NOMINATED BYDr. Haldor Topsoe Fauji Foundation

Mr. Qaiser Javed Fauji Foundation

Mr. Tariq Iqbal Khan National Investment Trust (NIT)

Dr. Nadeem Inayat Fauji Foundation

Mr. Istaqbal Mehdi Pak Kuwait Investment Company

Brig. Arif Rasul Qureshi (Retired)

Fauji Foundation

Maj. Gen Muhammad Tahir(Retired)

Fauji Foundation

Brig. Rahat Khan (Retired) Fauji Foundation

Mr. Shahid Aziz Siddiqui State Life Insurance

Mr. Shahid Anwar Khan National Bank of Pakistan

Mr. Khizar Hayat Khan Government of Pakistan

CHIEF FINANCIAL OFFICER

Syed Shahid Hussain

COMPANY SECRETARY

Brig. Khalid Kibriya (Retired)

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MANAGEMENT

CHIEF EXECUTIVE AND MANAGING DIRECTOR Lt. Gen. Malik Arif Hayat HI(M), (Retired)

Group General Manager Marketing Mr. Asad Sultan Chaudhry

Group General Manager Technology & Engineering Syed Iqtidar Saeed

Group General Manager Finance/CFOSyed Shahid Hussain

Group General Manager Manufacturing & Operations Mr. Tahir Javed

General Manager Manufacturing & Operations (Mirpur Mathelo) Mr. Naeem-ur-Rehman

Senior Manager Corporate Affairs/Company Secretary Brig. Khalid Kibriya (Retired

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FFC ORGANIZATIONAL CHART

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POLICY STATEMENT OF ETHICS

AND BUSINESS PRACTICES

WHAT IS ETHICS?

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Ethics when social interactions are premised on the

unquestioned belief that the self and other deserve equal

consideration.

Ethics, on other hand, is not an individual attribute as it is a

quality that marks social interactions. In other words, one cannot

be ethical alone as it becomes relevant only in the context of

social relations. But only those interactions are ethical which are

premised on a concern for other people. Ethics seek

justifications in the lives of mortals and not in the eyes of GOD.

This also implies that people have a definite stake in upholding

these ethical norms as there is something that is experientially

valuable in term for everybody.

A quick even trivial, example of ethics is traffic rules. In order to

get to a destination in the shortest time for everybody it is the

best that all drive in their own lane and obey street signals.

Deviations from this may work for some time but is collectively

counter productive.

BUSINESS ETHICS

Business Ethics demands that profit be made on a sustainable

basis by observing norms that respect other people. Fairness,

transparency, and individual ambitions must all find a place in

the practice of Business Ethics.

The success f a Company depends on its ability to create a

culture which makes clear to the naked eye that individual gain

is an integral part of collective profit. This demands that all

functionaries in a corporate unit pull together as a term.

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It is the policy of FAUJI FERTILIZER COMPANY LIMITED to

follow the highest business ethics and standards of conduct. It is

the obligation of every one of us to act responsibly; that is, to be

honest, trustworthy, conscientious, and dedicated to the highest

standards of ethical business practices.

The company’s reputation and its actions as a legal entity

depend on the conduct of its Directors and employees. Each

one of us must endeavor to act according to the highest ethical

standards and to be aware of and abide by applicable laws.

We all must ensure that our personal conduct is above reproach

and complies with the highest standards of conduct and

business ethics and have the obligation to ensure that the

conduct of those to work around us complies with these

Standards. The Company’s Code of Business Ethics and

Standards of Conduct will be enforced at all levels fairly and

without prejudice.

This code to which the company is committed in maintaining the

highest standards of conduct and ethical behavior is obligatory,

both morally as well as legally and is equally applicable to all the

Directors an Employees of the company who all have been

provided with a personal copy.

STANDARD OF CONDUCT FOR

EMPLOYEES

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We shall conduct our employment activities with the highest

principles of honesty, integrity, truthfulness and honor. To this

end, we are to avoid not only impropriety, but also the

appearance of impropriety.

We shall not make, recommend, or cause to be taken any

reaction, contract, agreement, investment, expenditure or

transaction known or believed to be in violation of any law,

regulation or corporate policy.

We shall not use our respective positions in employment to

force, induce, coerce, harass, intimidate, or in any manner

influence any person, including subordinates, to provide any

favor, gift or benefit, whether financial or otherwise, to ourselves

or others.

In business dealings with suppliers, contractors, consultants,

customers and government entities, we shall not provide or offer

to provide, any gratuity, favor or other benefit and all such

activities shall be conducted strictly on an arm’s length business

basis.

While representing the company in business dealings with third

parties we shall not allow ourselves to be placed in a position in

which an actual or apparent conflict of interest exists. All such

activities shall be conducted strictly on an arm’s length business

basis.

All of us shall exercise great care in situations in which a

preexisting personal relationship exists between an individual

and any third party or Government employee or official of an

agency with whom the company has an existing or potential

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business relationship. Where there is any doubt as to the

propriety of the relationship, the individual shall report the

relationship to management so as to avoid even the appearance

of impropriety.

We shall not engage in outside business activities, either directly

or indirectly, with a customer, vendor, supplier or agent of the

company, or engage in business activities which are

inconsistent with, or contrary to, the business activities of the

company.

We shall not use or disclose the company’s trade secret,

proprietary or confidential information, or any other confidential

information gained in the performance of company duties as a

means of making private profit, gain or benefit.

SWOT ANALYSIS OF FFC

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Strength:

Strengths refer to those activities that a company performs

better than it has competitors. Strength basically means “the

core competency of the company.”

The following points are our company’s strength:

FFC has a very stable urea market.

FFC is market leader; its share is 68%.

FFC has a strong dealer ship network and a large sales force to

cater to its needs.

FFC produce best quality urea.

Its brand is preferred on others.

FFC owns three mega plants with Central location.

Broad production range.

No deceptive & unethical practices.

Experience in production and marketing of product.

Top player of fertilizer business with maximum production

capacity.

Significant contribution towards the economic and agricultural

development of the state.

Core competence in distribution with the largest distribution

network.

Excellent environmental & working conditions.

Safety measures of international standards are exercised.

Strong Distribution Network

Low Fixed Costs (Depreciated Plants)

Management Quality

Weaknesses:

Weaknesses are the activities that the firm does not do well or

the resources it needs but does not possess. It also includes the

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factors that cause losses, hardships, disputes and complaints

for a business.

The following are our company’s weaknesses:

Because of high share in total production, it is allotted more of

imported urea which sells slowly.

Its price is higher than of competitors.

Dependence on imported feed stock, suppliers and special

repair/maintenance facilities.

Too much centralization bureaucratic control effects timely

decision making.

Decline in sales in economic zones of competitors.

Lack of long term planning, decisions are made keeping in view

the short term benefits.

Sales force is over staffed.

Distress in sales force due to extra burden of sales of acquired

plan product

Limited Diversification

Dependence on Govt. Gas

Opportunity:

These are the directions that the business could profitably take

in future because

of its strengths or because of the elimination of its weaknesses.

The following are opportunities for our company.

Demand of Urea is growing very rapidly.

Good chances of expansions.

Expansion of plants to meet the demand more efficiently.

Efficient as well as appropriate sales promotion and dynamic

advertisement.

Proper placement of warehouses.

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Delegation of authority so that decisions can be made at the

spot without any delay.

Great opportunities for joint ventures.

Quality should be improved gradually with the results and trends

in market, may utilize the word of mouth influence by giving

more benefits to dealers.

May diversify the business in allied services .may be cost

leaders by cutting down the unnecessary expenditures.

Diversification Opportunities

Favorable Industry Indicators

Favorable New Policy- Expansions

Threats:

A threat to a business arises from the activities of

competitors and from failing to avail opportunities because of so

many reasons like political instability and economic and financial

crises etc.

The following are the threats that our company is facing.

Any sharp decline will heart it the most.

A free trade policy of WTO is a major threat to the company.

Threat of water and gas crisis.

Rising Internal Oil Prices

Expansion in Global DAP Capacity

New Entrants (Fatima in 2008)

Gas Supply Constraints

Unfavorable Fertilizer Policy: increase in feedstock or new

entrant incentives

PEST ANALYSIS OF FFC

Political Instability:

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The political situation of Pakistan is not satisfactory. Due to the

rapid change in the Government every government sets its own

new trade policies.Govt. should apply sustainable policies for

the beneficial of the exporters as well as the investors.

Economic situation:

The economic condition of Pakistan can also affect the foreign

investors increasing inflation rate make the cost of production

high and thus reduce the profit margin of the investor.

Social situation:

The change in the lifestyle of the people affects the growing

demand of the FFC products. The change in the lifestyle and

needs in different demographics also affect the demand of the

customers.Due to all these changes FFC is performing excellent

for the excellence organization as well as for the customer.

Technological factor:

Technological advancement in all the sectors of the country has

changed the entire socio-economic environment. Especially in

the fertilizer sector there is a lot of technological

development.High technology is the basic requirement of

FERTILIZER industry. The companies that are using latest

technology have some cost benefits over the companies, which

are not using high technology. The key to survival for companies

in this industry is using high technology for quality and cost

purposes

TTC (Technical Training

Centre)Page | 33



BACKGROUND

The strength of FFC’s Technical Training

Centre (TTC) lies in its expert faculty having rich plant operation

and maintenance experience, functional pilot plants, well

equipped shops for practice and access to FFC operating plants

for real life demonstration.

TTC FACILITIES

The facilities include pilot plants for operations practices, small

size mechanical equipment along with cut models for training in

mechanical trade, pilot plant control loop for practice in

Measurement and Control Laboratories for Instrument

Engineers/Technicians.

PROGRAMS AVAILABLE

Training of engineers and technicians customized to Client’s

specific needs.

Fertilizer Technology Course for fresh engineers.

Professional and Management Courses.

Apprenticeship Programs for operators and technicians.

Skill Improvement Programs for operators and technicians in the

areas of Plant Operations, Maintenance & Safety.

JOB SCOPE

No job offer is indicated or guaranteed by FFC in any way

after the course completion. However, the knowledge and skills

gained in the course will prepare the participant in a better way

for securing jobs in fertilizer and other Hi-tech process industries

through normal procedures.

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HUMAN RESOURCE DEPARTMENT

The FFC Management, acknowledging the importance of

human resources has always placed personnel management at

the top of its priority list. The Human Resources Department,

therefore, right from the inception of the Company has played a

vital role in steering the Company through all its phases,

operations and progress.

The functions of Human Resources

Department vis-à-vis personnel management and human

resources development are going side by side and it is due to

the progressive approach and dynamic philosophy of the

management that Personnel Management remains abreast with

the latest style of management ensuring high level of motivation

and satisfaction of the work force under varied situations.

Personnel policies are kept updated and are periodically

modified to respond to the latest socio-economic changes and

market trends of the country.

Hiring quality manpower, keeping them happy, satisfied

and motivated are the pillars of the Human Resources

Department; justice, fair play and merit oriented treatment are

some of the ingredients of processing cases by the Human

Resources Department.

For Human Resource development,

another aspect which receives its due share is training. The

employees are exposed to various kinds of cross training,

technical courses, management courses, workshops and

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seminars both at home and abroad. At Plant site, the Company

has a Technical Training Centre, which is unique, and the only

centre in Asia having a true replica of the Plant for providing

realistic training as far as possible, to the employees.

Employees' welfare has all along received due consideration by

the Management. A number of agreements have been signed

with CBA Workers Union, resulting in handsome remuneration

packages to employees. The company, since its inception, has

undertaken five salary revisions for Management employees, to

remain amongst the top paying organizations of the country. It is

due to the sheer sincerity, welfare oriented policies and concern

for every single employee that there has never been any strike,

lock out or go slow in FFC.

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COMPANY’S HR DEPARTMENT

FFC/GM has a very effective as well as efficient HR section which is

operating very lucratively to provide solutions for the problems of all the

employees of the company. Procedures and policies for serving of both of

management and staff employees are designed by HR head office located in

Rawalpindi, and are worked on in FFC Goth Machhi and Mirpur Mathelo.

The setup of FFC’s HR Department is as follows:

HR Manager: Col. Shaukat Ali Alvi

Deputy Manager (HR): Mr. Iqbal Samdani

Senior executive HR Mr. Tamoor Akram Baig

Assistant Manager (legal & labor affairs) Major Nadeem Asghar

Chief supervisor (HR) Mr. Allah Bukhsh

Senior Supervisor HR (Offr Section): Mr. Rana M. Saleem

Senior Supervisor HR (Staff Section): Mr. Shakir Ashraf

Page | 37



ORGANIZATIONAL HIRARCHY IN HR

DEPARTMENT (GM)

Page | 38


Deputy Manager (HR)

CA

AM (LLA) AM (HR) AM (HR)

Sr. Clerk Sr. Office Sup

Office Sup

Computer Sup

Sr. Clk

Sr. Clk

Clerk


INTERNSHIP PROGRAM AT FFC

Every year, FFC offers an internship program for the students of MBA,

BBA, and Engineering to play the national role in improving quality of technical

education.

FFC offers internship positions to eligible students from well known educational

institutions. It offers internship positions to presentable and responsible looking

candidates who fulfill the eligibility criteria. Major objectives of offering these

positions are:

To provide practical training and exposure to intending interns a service to

students, educational institutions and to the community as a whole.

To evaluate fresh interns as a potential source of future hiring.

Duration of Internship:

Page | 39



FFC offers internship for 4-6 weeks

Eligibility:

Candidates for internships should be graduates or should be

studying for a graduate degree.

Monthly Stipend:

A stipend of Rs. 3000 shall be paid to interns upon

completion of the internship period. Non-graduate student if accepted for

internship will not be eligible for any stipend.

Applying for internship program:

After successfully completing my 6th semester at CIIT Lahore, I had to

fulfill the six week requirement for internship at any renowned organization. In

addition to complete the requirement, another important objective was to gain

experience of the corporate world and understand its strengths and weaknesses.

As my father is already working in FFC/GM, I had the opportunity to apply in this

renowned organization.

My subject of interest for internship was Human Resource Management,

as I want to specialize in this field so University has send my application for

internship in Human Resource Section of FFC/GM. Application was approved

and I received a joining letter from Head Office of FFC.

Starting the internship:

At first day of internship, I was briefed about the Fauji Fertilizer Company.

We had a very informative session there concerning the history, structure,

procedures, and achievements of FFC in TTC.

Page | 40



The presenter Mr. Anthony Gomes informed me about all the rules and

regulation regarding safety and work environment so that I would not face any

difficulty while performing my job. A book-lit of PLANT DESCRIPTION was also

given to me to improve my understanding of the Plant site norms and

procedures. Next day my actual internship started, with accordance to a

schedule given to me in HR Department.

Issuance of Internship Certificate:

Internship Certificate is an official document and may only be issued by

the Technical Training Centre (TTC).Copies of Internship Evaluation Form and

Internship Certificate should be retained in TTC files for future reference.

BRIEFING BY HR MANAGERI spend two day of my internship in the supervision of HR manger. He briefs me

about concept of organization, human resource management, human resource

practices, and also about nature of human resource.

ORGANIZATION:

Basically, organization is a combination of three concepts.

PeoplePage | 41



Structure

Shared purpose

An organization is a social arrangement which pursues collective goals, which

controls its own performance, and which has a boundary separating it from its

environment.

HRM is the effective use of human resources in order to enhance organizational

performance.

HUMAN RESOURCE MANAGEMENT

It includes recruitment and selection of appropriate staff and management

of the employment relationship, which includes contracts, collective bargaining,

reward systems and employee involvement, and considers the strategic and

operational view of human resource requirements. Human resource

management (HRM) is the strategic and coherent approach to the management

of an organization's most valued assets - the people working there who

individually and collectively contribute to the achievement of the objectives of the

business

Human resource practices:

Following are the practices conducted in the FFC.

Recruitment

Hiring

Training

Performance Management

Employee Development

Pay structure

Compensation & Benefits

Documentation

Maintenance of record

Leave

Daily attendance

Page | 42



Medical bills

Leave for assistance

Payment of bonuses

Transfer

Resignation

No demand certificate

Long service award

Merit scholarship

Internship training

Crew week schedule

Manning level

Working industrial relations and welfare offices

NATURE OF HRM:

Human resource management (HRM) is both an academic theory and a

business practice that addresses the theoretical and practical techniques of

managing a workforce. Synonyms include personnel administration, personnel

management, manpower management, and industrial management, but these

traditional expressions are becoming less common for the theoretical discipline

BRIEFING BY AM (LLA) ON LABOR LAWS

AND DESCIPLINARY CASES

During my internship I spend two days with Major Nadeem Asgher AM (LLA).He

tells me about company policies labor laws, industrial relationship, Industrial

climate. Ordinance and laws, labor union, and also grievance handling.

1-Formulation & interpretation of company policies

Major policies are formulated at the head office of FFC. Local policies are

formulated according to needs of concerning area. Policies are made in

accordance with:

Page | 43



Need analysis(individuals/ company)

HR department give suggestion to head office for change in policies. It also

interprets the policies for proper implementation.

2-Advice:

HR section counsels with employee and authorities concerning the following

issues when they are needed to be discussed:

Grievance handling

Disciplinary cases

Dealing with union office bearers

Labor laws

3-Service:

Services include:

Recruitment

Documentation at entry/exit

Maintenance of employee’s record.

Liaison/ correspondence with government agencies like labor department, EIOB

social welfare department and apprenticeship authorities.

4-Control:

Control is applied by:

Monitoring of performance of departments to ensure that they conform to

establish HR policies procedures and practices.

Ensuring that departments comply with the applicable labor laws.

MRCD/performance appraisal.

AM (LLA) IS RESPONSIBLE FOR:

Industrial relations

Disciplinary matters

Page | 44



Pursuance of legal cases

Intermediary role

Advisory role

Participation in negotiation with CBA for agreement/settlement

Grievance handling

Welfare activities

Welfare activities

Processing of interest free loan

Processing of application for Umrah/Hajj

Grant of talent scholarships to workers’ children by the Govt.

Processing of applications to obtain loan for building of house

Processing of applications for advance payment of house rent allowance

To ensure the smooth functioning of various forums provided under law.

Welfare of Employees:

Welfare of employees has all along received manager’s top priority and

the workforce has responded to Management’s welfare oriented gesture

positively. Company can safely say that the industrial environment of the FFC is

such that any organization can feel proud of.

INDUSTRIAL RELATIONS:

Ensuring implementation of various labor laws and enactments relevant to the

plant.

Submission of reports and returns to Labor Department as required under the

labor laws.

Handling and maintenance of documents for the sub-judice cases and assisting

the Legal adviser preparing various court cases.

Preparation of progress reports on disciplinary and court cases and their

submission to Head Office.

Keeping close liaison and correspondence with the labor department.

Page | 45



Continuous monitoring of Union activities and keeping g the higher management

informed.

Correspondence with CBA in the light of Management decisions.

Grievance handling and their redress.

Industrial peace agreement:

Eleven agreements have been signed so far. The last one was concluded on 10

July 29, 2009.

Industrial climate:

Most important function of human resource management is to ensure a

healthy industrial environment through implementation of labor laws, company

policies and welfare of the industrial workforce. In the capacity of the Factory

Manager, RM signs various contracts deeds and carries out negotiations with the

CBA Workers unions on behalf of the management.

Grievance handling:

A proper grievance handling procedure exists for employees.

Other forums as envisaged in the Labor laws also exist where the workers can

come up for the resolution of their problems.

The grievance handling procedure is:

An employee having grievance approaches the section head/in charge.

If the matter is not resolved, may request for interview of Department Manager.

Ordinances and Laws

Following are some of the Ordinances and Laws that are commonly used at the

IR office:

Industrial Relation Ordinance 2002:

Deals with the formation of Trade Union.Page | 46



Deals with the relation between staff employees and management through CBA

Union.

Provides solution and avoidance of disputes.

Defines benefits and legal rights of CBA and employees.

Standing Orders Ordinance 1968:

Deals with monetary benefits, leaves, bonuses, discipline and legal benefits of

CBA.

Factory Act 1934:

Deals with leaves, working hours in a factory, work place and working

environment, over time and compensation etc.

Payment of Wages Act 1936:

This tells us how the payment of wages will be made to employees.

It also tells how an employer can deduct a certain amount from the employee’s

wages.

Workmen Compensation Act 1923:

It deals with the compensation in case of accidents, disability, death and mode of

payment.

Employee Old Age Benefit Institution (EOBI):

Deals with the various benefits given to the insured workers under the act at the

time of retirement or death. It is a benevolent act.

Workers Participation in Profit Fund (WPPF):

It deals with the distribution of profit amongst the workers earned by the

employer in a financial year.

Advisory role

AM(LLA) also plays advisory role in the disciplinary and all other legal matters for

Plant Management.Page | 47



Intermediary role

Whenever the Management and CBA do not agree on any point of issue/ dispute

and it seems to be difficult to reach the conclusion, the IR office tries to play an

intermediary role through formal and informal meetings with CBA.

Maintaining Industrial Climate:

Most important functions of Human Resources is to ensure healthy industrial

environment through implementation of Labor Laws, company policies and

welfare of workforce. In the capacity of Factory Manager,

RM signs various contract deeds and carries out negotiations with the CBA

Workers Union on behalf of the Management.

Brief history of Industrial climate of FFC Goth Macchi is covered under the

following heads:

Workers Union: The union came into existence in 1983. FFC has encouraged

healthy industrial relations. Over the years the workers have been groomed into

responsible force with understanding of healthy environment.

Industrial Peace Agreements: Eleven agreements have been signed so far. The

last one was concluded on 10 July, 2005.

Strikes: No strike or Go Slow even for a day has occurred in 22 years.

Union Elections: There is only one union and elections are held regularly with

management’s interference. The present CBA got elected on April 24th, 2010. The

office bearers have no political inclination.

Page | 48



BRIEFING ON FUNCTIONS OF HR by

Mr. IQBAL SAMDANI

Handling daily mail record:

Handling of daily mail record is an important job of HR department. It is

performed as follows:

If any services are to be rendered by HR section of FFC then a mail from head

office is forwarded to HR section of FFC Goth Machhi to perform subsequent

action.

In HR section of FFC/GM, mail is received by Office Superintendent. Then he

forwards the mail to SR, HM, AM (LLA), AM (HR) officer, and AM (HR) staff for

their approval.

After the approval of the mail, it is forwarded to the concerning department to

take subsequent action. Then that department is responsible for later action.

Maintenance of mail record:

An appropriate record of all the mails is maintained by Office

Superintendent. So that if record of mails is required in future then it can be

acquired easily.Page | 49



While working in HR Section, I found that this department is performing its

duties whole heartedly and performing a lot of functions in this regard. Following

area some function that is performed by HR section:

FUNCTIONS OF HUMARN RESOURCES SECTION

GOTH MACHHI

The main functions of human resource section in Goth Machhi are:

Interpretation of company policies and monitoring its implementation.

Issue of implementation instructions at the plant site.

Continuous monitoring of manpower and keeping the Department Manager

abreast with the current manning level the entire time.

Finding critical deficiencies, inviting applications from suitable candidates to fill in

the deficiencies. Short listing of applications with the concerned department

manager.

Issuing call letters and subsequent arrangements for tests/interview of the

candidates.

Personnel documentation, maintenance and updating of records. Processing

medial bills, Daily expense statement, leave applications, payment orders and no

demand certificate in the light of Company policy pertaining to all staff

employees based at Goth Machhi.

Processing of CAT claims, daily expense statement, medical bills, and leave of

management employees.

Ensuring implementation of all company policies in day to day routine and

bringing all irregularities to the notice of Department Manager.

Page | 50



Maintenance and handling of MRCD and Performance Appraisal forms record of

all staff employees. Initiating action for MRCD with concerned department for

their timely action and submission of these reports to head office. Likewise

handling of these documents up to all level of Management employees.

Providing guidance to Section heads in dealing with staff employees working

under them with regard to handling of disciplinary problems under the company

policy.

Keeping close watch on the disciplinary state of the Plant and initiating

immediate disciplinary action where required.

Dealing with matters relating to FFC schools at Goth Machhi.

Maintaining liaison with outside agencies like Social Welfare Department, Civil

Administration, EOBI and Labor Department.

Preparation and maintenance of record concerning EOBI.

Preparation of attendance register on the basis of attendance sheet received

daily from different sections

Ensuring welfare of all the personnel’s in the light of Labor Laws and Company

policies.

TRAINING OF EMPLOYEES

FFC recognizes TRAINING as an essential component in maintaining excellence

in productivity, efficiency, quality and safety. FFC Technical Training Centre

(TTC) is situated at plant site. It is spread over an area of 5.8 acres and consists

of covered area of approximately 50,000 square feet. TTC has been modernized

in association with M/S Stamicarbon BV, a DMS subsidiary in Holland. TTC has

facilities like process simulator, workshops, laboratories, library, audio-visual

aids etc. Staff and Management apprentices go through an extensive training

programme before joining the company as regular employees. TTC conducts

refresher and skill improvement courses for regular employees of all trades. FFC

pays special attention to develop and enhance the management and

professional skills of its officers. In-House management courses are a regular

feature of the training plan.

Page | 51



BRIEFING ON FUNCTIONS OF HR SECTION

(STAFF) by CAPT.TAIMOOR BAIG

Capt. Taimoor Anis Akram Baig briefed me about functions of HR

Section Staff. He showed me about company vision statement mission

statement Organization chart, Pay scale according to grades, industrial zone,

Location of Company offices, Briefing on Hiring of Staff Employee, Production of

FFC Plant Goth Machhi and Mir pur Mathalo.

Communication

In FFC downward and upward communication is used through hard and soft

copy but they converted their communication channel from hard copy to soft

copy.

There are following way of communication in FFC.

Use of telecommunication

Use of electronic media, e-mail, fax etc.

They heavily invested in the technology. They are using the latest technology

especially imported from the foreign country.

Motivation

FFC focused on the motivation of employees to do work and for this purpose

FFC give them different types of incentives, bonuses, pay incentives, promotion,

Medical facility, residential facility, fair well, annual dinners and much more.

Just like it FFC create a community for employees.

Page | 52


Identify and

diagnosing problem

Generating alternative solutions

EvaluatingAlternative

Choosing best

alternative

Implication Decision

Evaluating

results


The Company has built a model township for its employees at this remote

location which consists of residential accommodation along with allied facilities.

In caring for the community in health, education, environment & sports, Fauji

Fertilizer Company Limited follows its key objective:

Health facilities include a modern clinic equipped with a laboratory in the vicinity

of the residential area. A panel of competent doctors is available round the clock

to take care of the community's health.

Two schools, FFC Grammar School & FFC Model School are operating in

parallel in the FFC Township, offering upto the Higher Secondary level.

Imparting computer literacy to children is one of the main elements of FFC

schools, modern education.

Decision Making

In FFC decision making done by the team work. Leaders consult with individual

or group subordinates, obtaining their ideas and opinion, and then make the

decision.

While doing decision making FFC identifying and diagnosing the problems or

facts or both, generalizing the alternatives, choosing best alternative and after

implication evaluation the results.

Planning

In FFC planning through by a proper channel and it take a long time. When they

plan something, they started their planning from the beginning of year and

almost taking one year on research and other precaution and facts relating to

their planning they implied what they planed.

Page | 53



In their planning there is a proper channel/ sequence which we mentioned

above.

First of all they analysis the situation and see with the alternative goals and plan

and measure the opportunity cost. After that they select the best way and last

step of their planning is implication with monitoring and controlling.

While doing planning and implication of planning they also see and measure

internal and external threats, weakness, strengths, resources etc.

The most interesting thing in FFC’s planning that there is vertical planning but

from Bottom to Top because their bottom staff directly relating to their customers

(farmers) so they started planning at gross root level.

Innovation Impact

In fertilizer sector innovation is not so much important aspect. Because as old as

fertilizer product as increase in value and demand of product. Because Industry

Market innovation are slowly as compare to Consumer Market

In FFC for the purpose of innovating ideas Research and Development (R&D)

Department is working. They used the latest equipment and welcome to positive

innovation by all over the world.

Controlling

Controlling is a very much important aspect of big business.

FFC controlling technique is Bureaucratic.

Because of in rules and regulation they use Bureaucratic controlling mean the

formal control, feed forward control aims to prevent problem before they arise,

feed back control implies the performance measure by the data and analysis the

results. With this they have the also have audit management and budgetary

control by the help of auditors, balance sheet, income statement and financial

ratios.

Page | 54


Set performance

stander

Measure performance

CompareDetermine deviation

With inLimitsStandards

YesNoTaking corrective

Action

Continuous work progress


Some times employees show reaction against these control then management

take the actions against him/her.

Employees Development:

The channel has strongly focused on the employee

development.

Cover the laps among the employees by using the frequently the mentor in the

organization.

Make promotions regarding to their performance

Job rotation is also done if the managers see any need of it. But they also watch

the interest of the employee.

BRIEFING BY SYED AON BUKHARI (JE-HR)

OVER ALL WORKING OF HR DEPARTMENT Page | 55



Syed Aon Bukhari briefed me on functions of HR Section Staff. He told

me about the overall working of HR department in FFC/GM. Also about billing of

Staff employee, Hiring processing of joining document, maintenance/updation of

personal files, updation of family data, processing of DES & Medical bills,

attendance etc another correspondence relating to Staff employees.

Daily attendance staff/apprentice

Attendance sheets duly approved by Section Head/In charge in respect of the

staff employees/apprentices are received from their respective sections and then

entered in the computer date wise. These attendance sheets are retained for 3

years.

Transfer/relocation – officer/staff

Relocation order is issued from Head Office Rawalpindi to maintain accurate

manpower status and records of employees.

Transfer (Local) such as cross training, attachment, inters and intra department

transfer of employees are carried out with the approval of GMP (General

Manager Plant).

Long service awards

Long service awards are given to employees to recognize long service with the

Company and to inculcate a sense of loyalty and belonging amongst the

employees. These awards are in the form of a wrist watch/gold medal or some

other .Worthwhile gift and a certificate after completing 10/20/25 year’s

continuous service.

No demand certificate

It is processed to finalize the terminal benefits.

Merit scholarships for children of FFC employees’ students

Page | 56



These scholarships are awarded to those children of FFC employees who are

studying in colleges or professional universities.

Merit scholarships for students of Tehsil Sadiqabad

The captioned scholarships are awarded each year to the students who have

passed their matriculation/intermediate Examination from Govt/recognized

colleges of Tehsil Sadiqabad and have domicile certificate of Tehsil Sadiqabad.

Internship

Internship at FFC is offered to the students of MBA, MPA, & Engineering to play

FFC’s national role in improving quality of technical education in the country and

identifying prospective bright candidates for future hiring.

Birthday cards

Birthday cards are signed by GGM&O and then sent to the employees as

gesture of congratulations and as part of motivation process. A cake is also sent

to management employee at his residence on due date.

Manning level

Section/Department wise authorization/holding of manpower at the end of the

month is shown in the manning level.Its purpose is to keep an up-to-date

information regarding manpower at plant site Goth Machhi.

Condolence message

The condolence message is sent in the event of death of a close relative of an

employee.

Issue of certificate

Generally service certificates, residential certificates and income certificates are

issued to employees to produce before Govt. agencies to resolve their personal

maters.

Page | 57



Crew week schedule

This is to continue the work on weekends.

Stipend Hafiz-e-Quran

A stipend of Rs2000 is paid every month to permanent/Daily wages employees

who are Hafiz-e-Quran.

Under taking on retirement

All management employees retiring from company service are required to give

an undertaking attached on Rs 100 stamp paper binding them selves that they

shall not without prior written approval of FFC render any services or collaborate

with any company which may be competing with FFC.


(MANAGEMENT) by RANA M.SALEEM

General working of HR Section

It includes all the things under working of HR Section as given below

1) Recruitment:

Page | 58



In FFC both recruitment processes are followed.

External Recruiting:

In the external recruiting, FFC advertises through its website

www.ffc.com.pk & also through the newspaper. They also attract the job

applicants through the reference of existing employees.

Internal recruiting:

They also make internal recruitment by hiring an existing employee to

another job according to the need.

2) Hiring:

The hiring procedure they have conducted is the following.

Screening of applications:

Screening of all applications received in response to the advertisement, will be

done by HR Division in close coordination with the sponsoring

department/division. Experienced candidates being considered for regular

appointment shall be short listed based on the education and quality of

experience. The criteria of short listing for apprenticeship/trainee shall be as

followed:-

First class academic career with no 2nd division.

Interview calls:

The HR division will finalize interview date in consultation with the respective

department/division manager and with the approved of the management. The

short listed candidates will be issued interview call giving them a minimum notice

of 2 weeks. The candidates may be called at convenient place. The call letters

will give the candidates information about the preliminary tests and interview

procedure.

Reception of the candidates:

Page | 59




A representative from the Hr division preferably an officer will receive the

candidates at interview site and brief them. The candidates will fill out the

company’s application form in neat hand writing in capital letters.

Traveling expenses:

Candidates called final interview from a distance beyond 50 kilometers will be

paid traveling allowance and daily allowance (TA/DA) as per company policy to

cover travel expenses.

Preliminary test/interview:

A written test comprising test comprising of IQ, English and trade test will be

given to the candidates. The candidates selected for final interview shall be

informed about the date and venue of the interview immediately after preliminary

interview.

Selection board:

The selection board will consist of the following:

Management (In Chairman)

Concerned general manager/Divisional manager (member)

General Manager HR (secretary)

Management may co-opt any other department/Division Manger as member of

board.

Interview:

The selection board will conduct interview of candidates. The Chairman decides

the final ratings of the interview.

Approval and Appointment:

The management may decide the result at the time of interview or after the

compensation based on over all interview results. The salary and the positions

for which the candidates are to be hired will be worked out by the Goth Machhi,

HR in consultation with the management. Goth Machhi HR will issue the

offer/appointment letters to the selected candidates.

Page | 60



Medical Reimbursement:

Fauji Fertilizer Company provides the medical facility to its employees and its

family. There is a medical center in FFC, which provides the medical treatment

and medicines to its employees free of cost. Sometimes the patients are referred

to some other doctor out of city if the disease is of serious nature or it requires

the treatment of a specialist. The traveling allowance is also given to the

employees when they go out of city for medical checkup. The employee incurs

the expense of medicine and travel himself and later on the amount is

reimbursed to him on his claim.

Company Assisted Travel (CAT):

Fauji Fertilizer Company provides airline tickets to its management staff free of

cost. These airline tickets are called CATs. Two types of CATs are given:

Simple CAT:

9 CAT are given to each employee for the whole year. Incidental charges of Rs-

1000 are also given for each cat. If you travel from RYK-Khi and then return back

from KHI to RYK then one cat is complete. The employee has the option to travel

by air train or by car. If he travels by car then RS 5.5 per km is given to the

employee. The total number of kilometers traveled by the employee is multiplied

with per km charge and the total amount is reimbursed. If he travels by air then

the payment order should accompany the air ticket boarding pass and Request

for travel booking form if the employees purchase the ticket thru company

representative. The employee can also purchase air ticket on his own.

Education CAT:

4 cats are given to the children of the management employees who are studying

in universities. No incidental charges are given for education cat. A verification

letter from the University of the Child who is studying in the university has to

submit to the human resource department. When the payment order is made

Page | 61



and it is sent to HR department it verifies it through its records and the

verification letter of the university.

Official Visits:

Fauji Fertilizer Company also sends its employees out of city and sometimes out

of country for official purpose i.e. to attend some meeting, for training, etc. When

the employees are sent abroad for official purpose he is given official daily

allowance and out of pocket allowance for the duration of his visit. The allowance

is according to company policy which is made according to the designation of the

employees.

Following allowances and facilities are given to the person in this regard:

Traveling allowance

Out of pocket allowance

Accommodation

Daily allowance

Documentation officers/staff

The following documents are filled in/provided by the employees on

prescribed performer which are maintained by HR Section.

Candidate’s bio data

Personal data card

FFC medical card

Family data form

Joining report

Acceptance letter

Photographs

Photocopies of educational qualification certificates

National ID card

Domicile certificate

Maintenance of records

Page | 62



The following information is entered in the computer and updated

regularly:

P.No.

Name

Designation

Date of birth

Cost center

Marital status

Academic qualification

National and international training courses record

Previous employment record

FFC employment record

Family data

Leave record

Accommodation

Basic pay

Promotion record

Account No.

Shift group

Maintenance of service books

Leave officers/staff

The purpose of leaves is to provide for & regulate absence from work for rest &

recreation, sickness, recuperation after sickness & for attending to personal

affairs.

On receipt of leave application, it is scrutinized whether it is as per company

policy via dates, no. of days, type of leave, leave balance etc. After that it is

entered in the computer.

Birthday cards

Birthday cards are signed by GGM&O and then sent to the employees as

gesture of congratulations and as part of motivation process. A cake is also sent

to management employee at his residence on due date.Page | 63



Car

Working directors and head of division employed are allowed to purchase

assigned cars. On completion of minimum 3 years he shall be allowed to

purchase his assigned car.

Company assisted car policy for SH AND UM

To assist unit managers and section heads in providing suitable transportation

Unit managers: Suzuki liana

Honda city 1300cc

Section head: Suzuki cultus

Employees will be entitled to purchase cars after six years

Policy on exit interview

Feedback is obtained from officer leaving the company with a view to improve

working conditions.

Housing policy

To provide reasonable and comfortable accommodation to employees at plant

site A and B type houses are meant for GMP and RM and SR.DEPT

MANAGERS/DEPT MANAGERS respectively. All other employees may be

allotted C, D, E, MOQ, E (MOD), F (MOD) type houses by plant management

based on status and seniority of the employees.

Under taking on retirement

All management employees retiring from company service are required to give

an undertaking attached on Rs 100 stamp paper binding them selves that they

shall not without prior written approval of FFC render any services or collaborate

with any company which may be competing with FFC.

Policy on visiting cards

To facilitate employees in developing social\business contacts in the interest of

the company and enhance its image. Employees are entitled to have business

Page | 64



cards. Marketing division is responsible for arranging printing of visiting cards on

request.

Leave fare assistance (LFA)

The employees having completed 12 months service with the Company are

entitled to receive 5 basic pays to assist the company to meet passage cost of

travel at the joining date.


BY SSR-HR MR.ASHRAF SHAKIR

Hiring of staff employees:

Man power induction plan on prescribed Performa is asked from all the

department mangers in the month of September every year wherein

approved/actual strength, vacant positions, expected attrition and number of

permanent employees/apprentices to be hired, are indicated. Inputs received

from the department manager are compiled and a consolidated manpower

induction plan duly signed by resident manager and general manager

(maintenance & operation) is sent to human resource division Rawalpindi for

obtaining management approval. After management approval, applications are

invited through an advertisement which is designed by SE (HR) and is published

in daily news papers enjoying wide circulations. Applications held on waiting list

are also included. Applications for permanent staff employees are sent to

respective department manager for short listing. Applications for induction as

apprentices are sent to technical training center (TTC) unit head for short listing.

The shortlisted candidates are issued with the call letter by human resource

section Goth Machhi. The selection board is composed as per parameters laid

down in policy on the subject/instruction from the human resource division Page | 65



Rawalpindi. Written/practical tests and interviews are conducted in the

TTC/specified locations. Candidates qualifying for final interview are paid TA/DA

as per company policy vogue. Recommendations of the selection board are

approved by general manager (maintenance and operations). The selected

candidates are issued with offer letters by human resource section Goth Machhi.

Consequent upon medical fitness and joining duty by individuals the report to

this effect is forwarded to human resource section Rawalpindi for issuance of

P.NOs. Appointment letter are issued by human resource section Goth Machhi.

Documentation staff and maintenance of record is as above mentioned in the

management section.

Leave policy

FFC have to provide for and regulate absence from work for rest and recreation,

sickness, recuperation, after sickness and for attending to personal affairs Leave

policy administered on calendar year basis and prorated accordingly. These

leaves administered on working day basis. Absence without approval is as

serious infraction of policies and likely to be subjected to disciplinary action.

Leave must be applied and sectioned by the designation authority. In case of

over/under utilization, the leave can be adjusted accordingly.

BONUSES & ALLOWANCES

BONUSES

1- 10-C BONUS

It is paid to all regular staff employees/apprentices who have completed 90

days continuous service during the previous calendar year.

2- MOIPI (Payment of maintenance of industrial peace incentive)

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MOIPI is paid to those permanent staff employees/apprentices who are on

the payroll of the company at the plant site with effect from 1st October of the

proceeding year to 30th September of current year.

3- GOOD PERFORMANCE AWARD

This is not fixed. Company gives this to encourage its permanent

employees after completing specific job duration.

ALLOWANCES

1. PAYMENT OF SHIFT ALLOWANCE

Shift allowance is paid to those staff employees who are assigned to perform

duty in rotating shifts.

2. DES (Daily Expense Statement)

DES is processed in respect of those employees who proceed on out station

official duty. Firstly it is checked along with supporting documents for its

correctness in accordance with the policy and then paid through finance

department to the employee after approval of RM-GM.

Superannuation – officers/staff

Superannuation age for both management and non-management employees is

60 years. A letter is issued to the concerned employee from Head Office 15 days

before attaining the superannuation age.

Conditional Allowances:

There are few conditional allowances which are given to only few employees.

1. Technical Allowance:

It is given only to the technicians and supervisors.

2. Shift Allowance:

It is given to only those staff employees who work in shifts.

3. Out Of Living Allowance:

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It is given to those staff employees who live outside the township

BRIEFING BY CSR (HR) MR. Allah Bakhsh

CONFIDENTIAL ASSISTANT

Performance Management:

They made evaluation of their employees after six months. Feedback is taken

from employees and their performance is judged.

GRANT FOR ANNUAL INCREMENT FOR STAFF

Annual increments are granted on MRCD Rating basis. e. g.

For A – 12%

For B – 10%

For C – 08%

For D –06%

MRCD – officers/staff (Merit Rating & Career Development)

Annually Management and Staff employees are given promotion on the basis of

their performance and that is judged through MRCD form. Two types of forms

are.

Performance appraisal forms for promotion

Performance appraisal forms for permanent hiring apprentices

Performance appraisal forms for confirmation – staff

Performance appraisal factors include job knowledge, discipline, punctuality, and

attitude, and efficiency, quality of work, quantity of work, safety consciousness,

initiative and self development. Probation period for staff employees is 90 days

and promotion period is minimum 2 years according to their grades consistency.

Recommendations of staff employees/apprentices for hiring or confirmation or

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promotion are made at plant site Goth Machhi but “No Recommendation” letters

are issued from Head Office Rawalpindi.

Performance appraisal forms for confirmation – officers

Performance appraisal factors for officers include conceptual, human,

professional, expression, proficiency, loyalty to organization, and honesty.

“Recommendation” and “No Recommendation” both letters are issued from

Head Office Rawalpindi for management employees.

OBJECTS OF PERFORMANCE APPRAISAL

To reward high performer

To counsel/admonish low performer

To identify potentials

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IMPORTANT FORMS USED AT HR OFFICE FFC GOTH MACHHI

Leave Application Form

Leave Adjustment Form

Payment Order Form

Request for Travel Booking Form

Daily Expense Statement Form

Request for Transport Form

Material Issue Voucher Form

Request For Guest House Accommodation Form

Gate Pass Leaving Plant Site Form

Reproduction Request Form

Provident Fund Trust Loan Application Form

Page | 70



CONCLUSION

Fauji Fertilizers Company is the larges Urea producer in Pakistan with two

process lines having the aggregate capacity of 1.33 million metric ton per

annum. The plant is located Goth Machhi near Sadiqabad (District Rahim Yar

Khan). Despite being the latest entrant, Fauji fertilizers Company is enjoying a

comfortable position “Market Leader” in Urea industry. Management’s

progressive strategies have earned its Sona Urea an impress i.e. 48% market

share in 16 years.

FFC’s top management consists of highly competent personnel who were hand

picked from the industry at the time when the industry was facing a supply

surplus. “Sona” had to struggle against such prime brands as “Babbar Sher” and

“Engro” with the backing of international sponsors, Hercules Limited and Exxon

Chemicals. Since then, FFC has eagerly followed a policy of growth increasing

its annual capacity 235% within 16 years. At present the financial position of the

company is very strong and some new expansions plans are under

considerations.

After observing performance of the company’s management one can bet that

there is nothing going wrong with the company. The financial position of the

company also reveals the same fact.

But it doesn’t mean that no improvement is required because according the

Japanese saying:

“The Best Is Not Good Enough”

The strategy should be that FFC should continuously scan the environment and

maximize its core competencies while diminishing its weakness and coping with

the threats.

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FEED BACK(POSITIVE ASPECTS OF HR SECTION AT FFC GM)

I have completed my internship of six weeks in the HR dept of Fauji Fertilizer

Company at Goth Machhi, and I have observed many of its plus points which are

necessary for the success of any organization. These are

The working Environment of HR Section is very Friendly and co-operative.

Employees here are working with there full concentration and dedication, and I

am not hesitating in saying that everybody is loyal to his work.

Safety Precaution is the major concern for all the employees here.

HR is efficiently trying to resolve the problems related to any issue regarding all

employees at all levels and guideline requirement.

Seniors are given high respect by their juniors and in turn, seniors are always

ready to solve the problems.

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Benefits of the Program

In retrospective, I can say that I benefited from the internship programme than I

thought I would in a number of ways:

Having a rare opportunity to use the knowledge and skills that I hadacquired

back at the college to provide critical environmental information to nations in

order for them to develop and put in place competent policies for environmental

protection for the betterment of the society.

Career-wise, the internship program undoubtedly enriched my curriculum vitae

(CV). Also, having gotten a chance to interact with most staff, I have had an

insight on how to shape my career towards a humanitarian job in the near future

.

The internship programme gave me a chance not only to work with Fauji

Fertilizer Company limited but also a chance to learn from the best

environmental experts the world could probably provide. This would reflect much

onto my experience.

To conclude, I can state that my internship at the FFC was a rewarding

experience and provided me with some new perspectives that I did not come

across during my studies back at the university. I also have to stress that my

colleagues at the FFC contributed greatly to making my stay there a very

enjoyable one.

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EXPERIENCE WHILE WORKING AT FFC

This is my first ever experience of working in any organization, and I have

enjoyed my work a lot. Prior to this I have only bookish knowledge, but this

Organization has given me an opportunity to implement my knowledge and I

have gained a realistic perspective of the Working World, which is beyond

books.

I believed the things I have learned here will be helpful for me in Future also. I

have learned about factory and labor laws which is a completely new thing for

me and very important from any Company’s perspective.

I have learned Company Policies and procedures and observe how these things

are made and where Improvements can be done in order to increase an

employee satisfaction.

This Internship Program has gone beyond my expectations and helped me

contribute, learn and most importantly achieve my goals. During this Internship I

observed how Company Analyze things which are going on and it will helpful for

me in establishing my professional career.

I have learned many of Personal and Professional Responsibilities for my

activities and actions. And I am glad as being a part of this Organization and I

am encouraged to express my new ideas as it has broadened my thoughts.

SUGGESTIONS AND RECOMMENDATIONS

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Over staffing and unbalanced distribution of employees in departments. Like all

the government and semi government institutions FFC has also excessive staff

than required. Moreover, there is uneven distribution, a place where one man

can do the job three people are working there. And some place a job of three

persons is taken from a man. This uneven distribution results in de-motivation of

the employee and gradually his interest in his work decreases that effects the

efficiency. In order to increase the efficiency of worker job is assigned to its

caliper to develop his interest in work that increase the output and decrease the

overall cost of organization

.

In the company there is an unnecessary emphasis on documentation. In

transactions a lengthy procedure of paper work is involved that decrease the

efficiency and results in wastage of time. It is also observed that in some cases

the same record is maintained by more than one department.

There are very few programs for career development of the employees. People

working in one section or department from years are still with the same

knowledge and style of doing job. There should be proper career planning of

employee that not only sharpens the skills of the employee & improve its

efficiency but also results in better and improved output for the organization.

Some employees are working in the same department or section since they are

appointed.

Too much centralization in the organization. Managers at low level are not

authorized to make decisions even about minor things. They have to consult top

management and give justification on small matters. Involvement of top

management and reaching at the final decisions is time consuming and some

times result in heavy losses. Also man at low level with responsibility and no

decision making power gradually lose interest in his job and de-motivated that

effects his performance. So there should be delegation of authority up to certain

extent that enables manager to take timely decisions at the spot with confidence.

Page | 75



When they take decisions they feel themselves more involved and responsible

for the job and in turn their efficiency increases.

Due to high rate of unemployment in the country person join those jobs which

are against their interest and not according to their calipers. So proper analysis

should be done, and explore those employee which can do better what they are

currently doing in the organization.

There in no strict means to force employees to take safety measures and follow

safety rules. Management should take necessary action in implementing the

safety rules in the organization.

After viewing the marketing analysis we see that product quality is not up to

standard because management is more quantity conscious than the quality.

While, FFC with almost the same plant and machinery giving the standard

product.

BIBLOGRAPHY

1) Persons:Caption Taimor Anis Akram baig

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Assistant Manager (HR) Goth Machii

Major Nadeem Asgher

Assistant manger (leagal and labor affairs) Goth Machii

Syed Aon Muhammad Bukhari

Junior exective(HR)

2) Books: Policy Manuals.

Human Resource Management

3) Internet: www.ffc.com.pk

www.faujifertilizer.com

A Research Report on Fertilizer Industry in Pakistan

GLOSSARY

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http://www.faujifertilizer.com/



TTC technical training center

AM (LLA) assistant manger (legal & labor affairs)

DM (HR) deputy manager (human resource)

AM (HR) assistant manager (human resource

JE (HR) junior executive (human resource)

SSR (HR) senior supervisor (human resource)

CSR (HR) chief supervisor (human resource)

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Documents

Fauji Fertilizer Company Limited