Human Resource Management

Study on HR Departments and Procedures adopted by Atlas Honda (Ltd)

By: Arooj Saima

(BBA 2006-2010)

Introduction

Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group.

Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh. Atlas Honda Limited manufactures and markets Honda motorcycles in collaboration with Honda Motor Company .

Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability, and after-sales-

service.

What this study Cover?

It will provide valuable information about the following HR activities

of AHL:

HR policy of the company Recruitment Selection Employment test Placement & Training Separation Compensation and benefits Cure for the problems related to HRM at AHL at

Sheikhopura plant.

SWOT Analysis

Strengths: Loyal Customers Maximum Share-holder of motorbikes market Durability of product Biggest network of after sales services and partsWeaknesses: Highest price of product in its range Its monopoly is decreasing with passage of timeOpportunities: Increasing demand Opportunity to export its product after being the

member of WTOThreats: Increasing number of substitutes and alternatives Day by day increasing fuel

Recruitment Procedure

1- From GroupGDHR will be requested through GMHR for suitable candidate if

available within the Group.2- Ads On the basis of required qualification, experience and

placement in organization chart, advertisement will be prepared and sent for publication in Urdu news paper

(Up to grade 16) and application to be reached with in 7 days and English newspaper

(For remaining management grade) applications to be reached in 2 weeks.

3- Short List Candidates will be short listed on the basis of advertised

criteria. MRRV (minimum required ration per vacancy) will be 1 ~ 20 ( maximum 1 ~ 30) up to grade 16 and

1 ~ 15 and (maximum 1 ~ 20) for remaining grades. IN case application are more

than maximum limit, the list will be prepared on the basis of qualification grades.The list will be approved as per criteria by GMHR.

Selection

Employment Tests Following tests will be given to short listed candidates.

– Computer proficiency test for all candidates

– Psycho – numeric test for all candidates

– Subject related test for candidates up to grade 11

Minimum Required Ration per Vacancy (MRRV): 1 ~ 12Employment form will be got filled at the time of first interview

from candidates who have cleared the above test. Interview Depending upon the Grade, the pre-employment and

selection, interview shall be conducted at the following levels:

Grade Preliminary interview Final interview 11 & above GMHR/GM CEO/GDHR/GEC Member 12 & below MHR/Manager GMHR/GM/CEO

Selection

Selection of candidate Group Executive Committee is authorized to select

the candidate for the position of Grade 11 & above. Chief Executive Officer is authorized to select the

candidate for the position of Grade 12 & below.Pre-Employment Medical Test Clearance of pre-employment medical test is

necessary before joining of the selected candidates from Shaukat Khanum Memorial Hospital for Sheikhupura Plant and Aga Khan Hospital for Karachi Plant.

Placement & Training

Offer letter will be issued to selected candidates after clearance of pre-employment medical test.

The short listed candidates will be informed at each stage on standardized formats.

The info letter be issued to selected candidates 1 ~ 1 on the terms and condition agreed in

process. The suggested salary will be agreed between the two GMs keeping in view the

existing comparable level, structure and suitability to candidate. The appointment letter will be issued to

– Management Staff signed by CEO– Non Management Staff signed by Notified Factory Manager (NFM) and/

or Notified

Employers for Sales Offices Joining Report: Joining Report will be submitted by all new employees on

joining. Induction: As per program approved by MC / GEC and circulated by GMHR

for management and by NFM. / NE for non management. Training: Training schedule for necessary training ( as per new training policy

) will jointly by prepared by GMHR and respective Manager and forwarded through respective GM to GMHR who will put up to CEO approval.

On the job training will be scheduled as per needs assessed by respective Departmental Manager which will be approved in over all training programme of the company.

Placement & Sepration

Transfer An employee can be transfer within the Atlas Group in Pakistan, whenever job

opening can be filled from internal recruitment or whenever the need arises Resignation An employee has to give one month’s notice before leaving the service or pay

one month’s service salary in lieu of such notice. Likewise, if the company wants to terminate services of the associate, the company will give one month’s notice in writing or pay one month salary in lieu of such notice.

Termination An associate may be terminated or lay off for the following relevant reasons: Serious misconduct or gross violation of discipline. Gross and habitual neglect of duties. Fraud or willful breach of company’s trust. On commission of a criminal offence Violation of company rules. An associate suffering from any disease which is prejudicial to his health, as

well as the health of others. All acts/omission stated as misconduct/offences in the law of the land

(including labor laws)

Compensation & BenefitsCar/MotorcycleManagement Staff:

Management staff are entitled for Car and Motorcycle on company policy and Motorcycle on installment according to their grade entitlement:

Grade 11 & above : Car under company’s policy scheme

Grade 13 & 12 : Motorcycle under company’s policy scheme

Grade 15 & 14 : Motorcycle under installment scheme

Non-Management Staff Non-management staff are entitled for Motorcycle on

installment basis.

Compensation & BenefitsBonusManagement Staff: Bonuses are allowed to management staff as per

target set in the Annual Budget of the company for the financial year.

Non-Management Staff: Bonuses are allowed to Non-management staff as per

Management/CBA agreement.

GratuityManagement Staff Gratuity equal to 15 days basic salary for each year is

allowed for management staff. Employees will be eligible for membership after completion of 10 years service.

Non-Management Staff: Gratuity equal 15 days basic salary for each year of

service on completion of 10 years of service.

Compensation & BenefitsProvident Fund

On confirmation of employee 11% of basic salary is allowed as employee contribution on account of Provident Fund.

Group Life Insurance

Management Staff As per company policy group insurance is allowed to

management staff according to their grade entitlements. Minimum Rs.200,000 and Maximum Rs.1,687,500/=

Non-Management Staff

As per law Non-management staff is entitled for group insurance of Rs.200,000/=.

Compensation & Benefits Healthcare Insurance/Hospitalization Plan Personal Accident Insurance Compensatory Leave Inconvenience allowance Personal Loan Welfare Loan Recreation/Travelling Allowance Best Attendance Allowance Meal Allowance Breakfast Marriage Allowance Marriage Gift Uniform Washing Allowance Fair Price Shop Ex-Gratia Grant upon Death

Working Hours

Shift Timings

GENERAL SHIFTWorking Hours 08:20 a.m. To 05:50 p.m.

A SHIFTWorking Hours 07.00 a.m. To 03.00 p.m.

B SHIFTWorking Hours 03.00 p.m. To 11.00 a.m.

C SHIFTWorking Hours 11.00 a.m. To 07.00 a.m