Project of HRM PRACTICES PREVAILING in Descon

HUMAN RESOURCES MANAGEMENT PRACTICES

PREVAILING IN DESCON ENGINEERING COMPANY

SUBMITED TO:

Ghulam Hussain (LECTURER)

SUBMITED BY:

Muhammad Sami ciit\swl\fa09-MBA-017

Iram Sabir ciit\swl\fa09-MBA-039

Shumaila Aslam ciit\swl\fa09-MBA-051

COMSATS Institute of Information Technology,

SAHIWAL.

ACKNOWLEDGEMENTS

HUMAN RESOURCE DEPARTMENT

First of all, we are thankful to GOD WHO makes us capable to gain knowledge

and after that we would like to say thanks to parents who brought us up and made

us able to face challenges of this dynamic environment. We also thank to

MR.Ghulam Hussain who guides us in developing this project. The main

purpose of this project is to enhance our skills. The project was about Human

Resource Practices at Descon Engineering Company. We went to the Head

Office of Descon Engineering Company at Lahore meet with Irfan Usmani

(HRD Executive) and Ammar Khan (HRD Assistant Executive). They have

cooperated a lot with us. After that we become capable to present this project in

front of you.

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EXECUTIVE SUMMERY

Descon is the one of the leading company in project based business to business

market in Pakistan. This summery is all about the Human Resource Department

of Descon Engineering Company. We will discuss about the introduction of

Descon in first chapter. The second chapter will tell us about the structure of HR

Department in Descon. The third chapter shows planning and job analyzing steps

in the department. The fourth chapter will help us to know about selection and

recruitment of procedures. The fifth chapter is all about training and Development

through implementation and Evaluation. Sixth chapter will creates a knowledge

how Descon conduct its Performance Appraisal System. The second last chapter

defines the compensation management. And the last chapter explains how this

department handles the disputes and procurement procedures.

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DEDICATION:

We dedicate this project to our Parents, sweet cousins

and friends.

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TABLE OF CONTENTS

CHAPTER NO.1 INTRODUCTION 4

1.1History____________________________________________________________4

1.2 Vision_____________________________________________________________5

1.3 Our Mission________________________________________________________5

1.4 Core Values________________________________________________________51.4.1 Integrity 51.4.2 Corporate Social Responsibility 6

1.5 Business Operations_________________________________________________71.5.1 Process Design 81.5.2 Basic Engineering 81.5.3 Detailed Engineering 81.5.4 Piping Designing 91.5.5 Mechanical Design 91.5.6 Electrical and Instrumentation Design 91.5.7 Facilities Descon 10

1.6Functional Areas at Descon__________________________________________11Structure of Descon Management (Fig. 1.1) 121.6.1 Business Support Departments 121.6.1.1Company Supervision Department (Admin) 121.6.1.2 Finance Department 131.6.1.3 Project Management System (PMS) 131.6.1.4 Human Resource Department (HRD) 131.6.1.5 Proposals Department (Bid Creators) 131.6.1.6 Marketing (B.D) 131.6.1.7 Strategic Planning 131.6.1.8 Construction Management 131.6.1.9 HSE (Health Safety and Environment) 141.6.2 Business Areas141.6.2.1National Areas 141.6.2.2 International Areas 141.6.2.3 Areas of Specialization 14

CHAPTER NO.2 HUMAN RESOURCES DEPARTMENT 15

2.1 Human Resource Management_______________________________________15

2.2 Organogram of HRD (Fig 2.1)_______________________________________15

2.3 Units in HRD______________________________________________________162.3.1 Human Resources Planning 162.3.2 Job analysis 162.3.3Recruitment and Selection 162.3.4Training and Development 172.3.5Performance Management System 172.3.6Rewards and Remuneration Management 172.3.7 Industry Relation 18

CHAPTER NO.3 MAN POWER PLANNING AND JOB ANALYZING19

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3.1 Criteria for Human Resource Planning________________________________193.1.1HRM Audit 193.1.2 HR Policy and Manual 193.1.3 Role of Human Resource Development Manager 20

3.2 Criteria for Job Analyzing___________________________________________203.2.2 The Role Of HRM in Knowledge Management 213.2.3 Job Analysis Interview Guide 213.2.4 Writing Job Description213.2.5 Work Measurement Methods 223.2.6 Position Analysis Questionnaire (PAQ) 223.2.7 Strategies for Designing and HRD Program 223.2.8 Job Time Study 223.2.9Characteristics of Effective HRD Managers 223.2.10 Work Study and employee productivity 23

CHAPTER NO.4 RECRUITMENT AND SELECTION 24

4.1 The Resourcing Process_____________________________________________244.1.1 Steps in the Resourcing Process 244.1.2 Management’s View on the Resourcing Process 264.1.3 The Recruitment Process 26

4.2 Sop for Clerical/ Labor Job__________________________________________26

4.3 Criteria for Officers Job____________________________________________26

4.4 Criteria for Executive Level Job______________________________________30

CHAPTER NO.5 TRAINING AND DEVELOPMENT 31

5.1 Orientation Process and Induction of New Employees____________________315.1.1 Steps of Orientation Program 31

5.2 Training Need Assessment___________________________________________33

5.3 Training design____________________________________________________335.3.1 Setting objectives 345.3.2Developing lesson plan 345.3.3Selecting trainer/leader 345.3.4Preparing material 345.3.5Selecting program methods and techniques 345.3.6Scheduling the program 35

5.4 Implementing the Program__________________________________________35

5.5 Criteria for training and Evaluation__________________________________355.5.1 Select the Evaluation Criteria 355.5.2 Determine Evaluation Design 365.5.3 Conduct Evaluation of Program 365.5.4 Interpreting Results 36

5.6 Descon Training Institute (D.T.I)_____________________________________36

CHAPTER NO.6 PERFORMANCE MANAGEMENT SYSTEM 37Performance Appraisal System (Fig 6.1) 37

6.1 Performance Appraisal Process______________________________________386.1.1 Goal Setting 386.1.2 Performance Evaluation Method 38

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6.2 Level I.D. Form____________________________________________________39

6.3 Performance Feed Back_____________________________________________40

CHAPTER NO.7 REWARDS AND REMUNERATION MANAGEMENT41

7.1Monitory Rewards__________________________________________________417.1.1Salaries 417.1.2Designations 41

7.2 Non-Monitory Rewards_____________________________________________427.2.1Allowances 42

CHAPTER NO.8 INDUSTRY RELATION 43

8.1 Procurement for election of labor union_______________________________43

8.2 Dispute Settlements________________________________________________43

8.3Health and Safety Measures__________________________________________448.3.1 First aid at work 448.3.2 Emergency doors and Direction 448.3.3 Fire extinguishers 448.3.4 Others Concerns 44

Appendices 45

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CHAPTER NO.1

INTRODUCTION

1.1History

Over the last three decades Descon has evolved into a multi faceted Engineering

and Manufacturing concern and has further spawned a group of ventures with a

diverse activities portfolio: Project Management, EPC, Engineering,

Manufacturing, Construction, Maintenance, software development, Mining,

Chemicals and Trading, While the group companies operate independently under

a corporate structure, Descon Engineering remains the flagship company and

provides the associated identity to its affiliates.

The company is unique in its resources base with in house capabilities for Design

Engineering, Manufacturing, Construction and Maintenance Service. These are

applicable to a wide variety of projects related to Industrial plants, Energy and

Infrastructure development for which services are provided selectively or on

turnkey/ EPC basis.

Project management expertise vested through sophisticated IT based systems is

one of the key elements in achieving successful culmination of projects. The

company’s operations span Pakistan, The UAE, Saudi Arabia, Qatar, Oman,

Egypt and Afghanistan. Joint venture partners and technology alliances include

JGC Corporation Japan, Enerflex Presson, Canada and Eckrohr Kessel, German.

The roster of clients and end users is replete with auspicious names such as Sabic,

Aramco, Adnoc, Borouge, Gasco, Qatar Petroleum and WAPDA, NHA, OGDCL

at home.

All establishments are system oriented with ISO and OHSAS certifications and

ASME stamps. HSE achievements are reflected in the statistics with over 350

million man hours of work executed. Considerable investment is made in human

recourses focusing on development.

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Descon is project oriented and client driven. Quality and HSE are taken as Value

adders and the company culture encourages teamwork and innovation. With all

these attributes and resources, the company is well placed to compete and succeed

in the local as well as international contracting arena while being recognized as a

quality service provider and manufacturer of capital equipment. The synergy

between various business areas fuels strategic growth by providing cost effective

solutions.

1.2 Vision

“To become a world class engineering, manufacturing and construction company

operating internationally”.1

1.3 Our Mission

"To provide our valued customers with cost effective and reliable solutions in project implementation and be recognized as the leading manufacturer of high quality equipment for plants." 2

1.4 Core Values

The purpose of Descon is to bring prosperity and well being to our stake holders

and society at large by adding value through engineering, technology and

management.3

1.4.1 Integrity

The integrity of Descon is to realization of its corporate Social investment

and plays a leading role within our spheres of influence. The aim of the

company to work for achieving world class standards of openness and

transparency towards all of their stockholders and serves the communities.

They want to become the knowledge-based corporation in the world, capable

of sustainable economic growth and greater social cohesion.

1 http://www.descon.com.pk/Company/visionAndMission.aspx2 http://www.descon.com.pk/Company/visionAndMission.aspx3 http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

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http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

http://www.descon.com.pk/Company/visionAndMission.aspx

http://www.descon.com.pk/Company/visionAndMission.aspx


1.4.2 Corporate Social Responsibility

Descon Group’s business activities are based on relationships with many

stakeholders, including customers, shareholders and other investors,

business partners and the community at large and employees. Descon

believes that earning the trust of these stakeholders through fulfillment of

its responsibilities as a good corporate citizen is a key element in enhancing

management quality and corporate value.

While operating globally, they touch upon many people. They would set

CSR Objectives in the annual plans to take a leadership position in this

regard. They believe in transparency and giving access to the information to

people about the life cycle of their products and services.

The core issues in their CSR strategy are given below,

Compliance to our core and operating value Sustainable Business Environment Corporate Governance Community philanthropy Contribution to educational programs Promoting multicultural workforce Gender Empowerment Protecting Human Rights Honesty and integrity in our policies.

These strategies require commitment from top to bottom level of their employee’s

relationships. Because they want to see a healthy and safe world and trying to

achieve their goal by using best practices at their premises. The annul objectives

for CSR focus on six areas; - Business Integrity, Environment, People,

Community, Human Rights and Suppliers. These all areas are integrated into

Descon’s core values.

1.5 Business Operations

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Descon’s engineering know-how is vested in various business areas across the

company. All engineering facilities are equipped with the current software

packages in IT-based environments and specialize in niches relevant to the core

activity of a Business Area. At the forefront is JGC Descon Limited (JDL), the

joint venture company which acts as engineering wing with capabilities in basic

and detailed engineering for plant design. For JGC Corporation, it is key offshore

Satellite Engineering Center for engineering of major hydrocarbon energy

projects in the region.

To enable value-addition in the field of equipment supply, the Manufacturing

Business Area in Pakistan has its own design group for engineering process plant

equipment and coded items mainly in accordance with ASME codes

Equipment-oriented engineering capability is also present at a greater scale in

Descon, the joint venture company in Saudi Arabia. This operation also has

extensive capabilities for electrical design to support its mechanical and electrical

shops.

The EPC Business Area is also evolving into an autonomous entity which has its

own engineering expertise for undertaking projects on a turnkey basis. These

range solution for existing plants to ‘Greenfield’ facilities pertaining to process,

utilities and offsite areas.

The infrastructure projects Business Area has developed its own in house design

group for projects related to water reservoirs and irrigation channels. Descon is

the only Pakistani company which has the complete ‘design and construction’

capability for large infrastructure projects.

1.5.1 Process Design

The process design group can execute a wide range of basic and detailed

engineering activities.

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1.5.2 Basic Engineering

Process simulation

Heat and Material Balances

Process Flow Diagrams (PFDs)

Piping and instrumentation Diagrams (P&IDs)

Utility and Effluent Summary

Hydraulic Calculations

Heat Exchangers Thermal Design and Rating

Equipment Sizing

Process Data Sheets

Cause and Effect Diagrams

1.5.3 Detailed Engineering

P&IDs (AFD to AFC)

Utility Distribution Diagrams

Fire Protection Systems

Pressure Relieving, Flaring, and Depressurizing Calculations

Operations Manuals (compilation)

As-Built P&IDs

1.5.4 Piping Designing

The piping design group specializes in the following:

Plot Plans conceptual Piping Studies and Layouts

Piping Plans

Isometrics

Project Specifications / Procedures

Bill of Materials / Bill of Quantities

3 D Modeling with PDS

Pipeline Design

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1.5.5 Mechanical Design

The mechanical design group provides specifications, material selection,

mechanical design, detailed engineering, and shop fabrication drawings for:

Pressure

Heat Exchangers

Process Related Mechanical Equipment

Storage tanks and Silos

LPG Road Tankers

1.5.6 Electrical and Instrumentation Design

Wide range of electrical and instrumentation (E&I) design services are provided.

Electrical Design

Area Classification Drawings

Single Line Drawings

Specifications and Data Sheets Cable Layouts and Routing Diagrams

Communications Systems

Fire Alarm Systems

Heat Tracing Systems

Instrumentation Design

Instrumentation Specifications and Data Sheets

Logic / Loop Diagrams and Termination Drawings

Hook up and installation drawings

Control Room layout and Arrangement Drawings

Panel Specifications and Arrangement Drawings

DCS and ESD Specifications

Control Valve and Orifice Plate Sizing

High Rise Buildings

Elevated and underground Tanks

Underground Services for Plants

Civil Design

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The civil design group specializes in the following:

Modeling using PDS

Steel and Concrete Structures

Highways Industrial Facilities and Process Building Pipe Racks, Table Top Structures, and Elevated Structures Warehouses Bridges and Culverts

Equipment Foundations

Pile Foundations Tank Foundations Compressor and Turbines (Including dynamic analysis)

1.5.7 Facilities Descon

Manufacturing has the capability to fabricate equipment, involving carbon low-

alloy, high delivered more than 200,000 tons of engineering goods to a long list of

satisfied local and international clients. Its production range covers the following:

Pressure Vessels, Towers & Columns

Separators

Dehydration Plants

DEW Point Control Units

Amine Sweetening Plants

Slug Catchers

Heat Exchangers including Air cooler

Heat Recovery Steam Generators (HRSG’s)

Industrial & Package Type Boilers

Storage Tanks & Vessels

Water & waste water treatment plant

Stainless Steel Equipment

Transport Equipment

Steel Structure

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All this business Work is carried out according to international standards

including ASME, BS, DIN, API, TEMA etc. Full consideration is given to

maintaining a safe work environment and to comply with specified safety

procedures. An effective documented Quality control system ensures that the

products are manufactured according to specifications and code. This function

implements inspection/testing stage.

This facility is approved by American society of Mechanical Engineers (ASME),

qualified to carry S, U, U2, PP, A & R stamped jobs. It has also acquired R-stamp

from National Board of Boilers and inspection (NBBI) thereby becoming an

approved facility to execute repair jobs of ASME coded vessels. CE Marketing

for export to European countries is also in place.

1.6Functional Areas at Descon

There are two Heads of departments in Descon.

1. Business Support Departments2. Business Areas

Structure of Descon Management (Fig. 1.1)

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1.6.1 Business Support Departments

These areas are helping and supporting the Business areas the Operation level

areas. The corporate level and administration of Descon are working in these

departments. In these departments, there are main heads of Descon,

1.6.1.1Company Supervision Department (Admin)

This department consists on executives who supervise the rules and regulations.

1.6.1.2 Finance Department

This department supports all financial issues, information, trend analysis, and

make financial statements to for future decision making.

1.6.1.3 Project Management System (PMS)

This department provides all information and manages all projects in which

Descon’s employees are working through a scientific system. This system tells

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what time they should complete the project, how to complete the project and all

plans which can be useful to generate efficiency level at maximize position.

1.6.1.4 Human Resource Department (HRD)

This department handles the human power of the Company. Make policies and

procedures and helps to achieve organization’s goals by hiring competent

workforce and retain through training and motivating.

1.6.1.5 Proposals Department (Bid Creators)

This department creates bids for making projects, plan how to start project, this

department also conducting research and development and making strategies to

maximize those areas of Pakistan in which they work.

1.6.1.6 Marketing (B.D)

This department shows off all competencies and strength through Integrated

communication technology (ICT) and advertising in their websites, Expo Center,

and Push strategies for Stake holders.

1.6.1.7 Strategic Planning

This department checks overall market structure and find out all those

opportunities which can help out in order to survive in the market.

1.6.1.8 Construction Management

This department manages the project handling issues and areas in which they are

constructing continuously and new as well.

1.6.1.9 HSE (Health Safety and Environment)

This department plays an important role for CSR and social marketing as well by

strict policies to make the environment of Descon clean, safe and environment

friendly.

1.6.2 Business Areas

These areas are working under Business Support Department.

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These areas are further divide in National areas (Pakistan) and International

Business areas.

1.6.2.1National Areas

There are regional and site branches in Pakistan.

Karachi Lahore Islamabad

1.6.2.2 International Areas

These areas are representing Descon as Pakistan’s Dynamic Engineering

Company in different countries of the world. These countries are;

Qatar

Kuwait

United Arab Emirates (Humria)

Saudi Arabia

Oman

1.6.2.3 Areas of Specialization

There are different areas of specialization which are following;

Manufacturing

Engineering Procurement and Construction (EPC)

Plant Construction and Services

Infrastructure Project

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CHAPTER NO.2

HUMAN RESOURCES DEPARTMENT

2.1 Human Resource Management

The ultimate success of any organization depends on its Human resource. This

makes Human resource a challenging and critical element for managers to control.

Thus Human resource of Descon is not only a critical asset today but has become

an important source of competitive advantage in dynamic industry of engineering

and construction. With the help of HRD, Descon’s rating in Pakistan is No.1 in

Engineering and Construction based industry. They are standing for many years

and no one even touch to their rank because of competent and willing work force.

2.2 Organogram of HRD (Fig 2.1)

2.3 Units in HRD

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2.3.1 Human Resources Planning

It is a starting point of human resource management. If an employee leaves the

firm due to any reason, which may be deliberate resignation to move to another

firm, or any other reason such as, retirement, termination or death, a vacancy is

formed at the respective department of the Descon. The department, carefully

analyzed in all its respects identifies this vacancy and the job description is

forwarded to the Human Resource department.

2.3.2 Job analysis

It is the procedure for determining the duties and skill requirements of a job and

the kind of person who should be hired for it.

a) Job Description

It is a list of job’s duties, responsibilities, reporting relationships, working

conditions and supervisory responsibilities. Descon Engineering Company makes

a job description before recruiting people.

b) Job Specification

A list of job’s “human requirements” that is, the requisite education, skills,

personality, and so on. They also make job specification hire the right people at

the right place.

2.3.3Recruitment and Selection

Descon Engineering Co. Maintains a strict difference between external

recruitment and internal recruitment. It has given different names to both these

functions that are

• Resourcing refers to internal recruitment the Descon Engineering Co. That is,

they try to attract candidates for vacant jobs from within the organization, and

20


• Recruitment only refers to external recruitment that is locating candidates

from outside the firm, which may include fresh graduates or people working in

other firms.

2.3.4Training and Development

The Company holds that orientation program is very necessary for the Company

as well as for the new employee. The unit of Training and Development performs

several important functions for the Company, like orientation training,

performance appraisal and the general Training and Development. Broadly

speaking, Descon Engineering Co. holds a strict distinction between training and

development.

2.3.5Performance Management System

Descon Engineering Co. gives the importance to their employees as well as their

performance. There are certain standards that are set by the Company to check the

performance of staff. They give the incentives and bounces on the base of check

performance. Descon Engineering Co. follows all the international rules when

done performance management.

2.3.6Rewards and Remuneration Management

Descon Engineering Co. gives utmost importance to rewards and compensation

packages because this is the most crucial factor for retaining key employees. ...

The amount of bonus depends on the amount of profit Descon Engineering Co.

World makes.

The amount of bonus and increments depend on the profit of Descon Engineering

Co. world, then Descon Engineering Co. Pakistan, then for each department and

finally for each employee. The Gross salary includes a number of allowances.

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2.3.7 Industry Relation

As one of the world's most international Companies, Descon’s employees almost

35000 people, representing more than 5 nationalities. This diversity lies at the

heart of their values and supports their growth because they are Pakistani

company and now spread in the Asian Market. There is very cooperative

environment and relation between lower and upper staff. Expenses incurred on

professional medical consultation including periodic health check- ups and costs

of any diagnostic tests.

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CHAPTER NO.3

MAN POWER PLANNING AND JOB ANALYZING

This chapter tells us about Man Power Planning and Job Analysis are how much

important to select a job and the need for hiring or training the employees in

Descon Engineering Company. The Company allocates the budget through they

are receiving from profit margin. The opportunities find out when they work on

project, and if something is missing in their specialized field. The budget for new

employees and training the employees should be allocated. Then, the jobs and

work is defined and analysis the job and person who can be do that type of job

excellently.

3.1 Criteria for Human Resource Planning

3.1.1HRM Audit

The HRM (Human Resource Management Audit) of Descon uses this framework

to try to answer such questions as: Are the mission and strategy of the human

resource organization designed to match the business strategy of the Descon

Engineering Co.? Does the design of the human resource organization enhance its

ability to accomplish its strategy? Are the kinds of people who run the human

resource function good choices for the ongoing task?

3.1.2 HR Policy and Manual

HR policies vary considerably from one organization to another, depending on its

size, the nature of the workforce and the position regarding union recognition, but

here are the main policy areas of Descon’s which are recognize as HRD

executives in the Business Support Areas.

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3.1.3 Role of Human Resource Development Manager

The role of manager of HRD (human resource development) consists of four

separate but overlapping components referred to as sub roles. Each is vital to the

development of an efficient and properly managed HRD department. They

include:

1) Evaluator of the HRD program’s impacts and effects on organizational

efficiency.

2) Management of the organizational learning system.

3) Strategist responsible for long term planning and integrating of HRD into the

organization.

4) Marketing specialist responsible for the advancement of HRD within the

organization through well defined and effective networks.

3.2 Criteria for Job Analyzing

Job analysis is the process of determining the nature or content of a job by

collecting and organizing information relevant to the job. A complete job analysis

contains information relating to the following factors which deemed appropriate

to fully describe the nature of the job. These factor are considering while the job

is analyze for new and old employees as well in Descon Engineering Company.

3.2.1Key Components of Human Resource Development

There are three fundamental component areas of human resource development

(HRD):

1) Individual Development (Personal)

2) Career Development (Professional)

3) Organizational Development

The importance of each component will vary from organization to organization

according to the complexity of the operation, the critically of human resources to

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organizational efficiency, and the organization’s commitment to improved human

resources.

3.2.2 The Role of HRM in Knowledge Management

There are several roles that can be played by HR Executives in developing

knowledge management system of Descon. They should help the organization to

articulate the purpose of the knowledge management system. They know that

investing in a knowledge management initiative without a clear sense of purpose

is like investing in an expensive camera that has far more capabilities than you

need to take good pictures of family and friends.

3.2.3 Job Analysis Interview Guide

Job analysis interview guide is a tool that can be used in conducting job analysis

process. It describes list of questions that should be asked to explore the content

of a particular job. What is the job overall purpose? What the inducement does

and, if possible, how he/she does it?

3.2.4 Writing Job Description

Most widely used job description format contain the following five sections”

(1) job identification

(2) job summary or purpose

(3) job duties and responsibilities

(4) accountabilities

(5) job specifications

The most important thing to remember is that all job descriptions within Descon

Engineering should follow the same format.

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3.2.5 Work Measurement Methods

The purpose of work measurement is to determine the time it ought to take to do a

job. There are four main systems of work measurement. First, and most used, is

time study. The second system, work sampling, is a statistical procedure for

measuring work and requires an understanding of the techniques of statistics and

probability.

3.2.6 Position Analysis Questionnaire (PAQ)

This is one of the most sophisticated and yet easily administered techniques to

analyze job. These elements are of a worker-oriented nature, meaning that they

characterize or imply the human behaviors that are involved in various jobs.

3.2.7 Strategies for Designing and HRD Program

HRD philosophy that states unequivocally that effective human resource

development can improve performance (i.e. change behavior, produce results,

increase productivity). This provides a framework for the HRD program. It also

provides a common objective for each of the members of the HRD staff of

Descon Co. on which to focus their efforts.

3.2.8 Job Time Study

Time study is a work measurement technique for recording the times of

performing a certain specific job or its elements carried out under specified

conditions, and for analyzing the data so as to obtain the time necessary for an

operator to carry it out at a defined rate of performance.

3.2.9Characteristics of Effective HRD Managers

HRD managers must have the ability to plan HRD activities that foster training,

development and education. These activities should be targeted at the needs of

26


employees, supervisors, line mangers, customers and nonemployees of the

organization.

3.2.10 Work Study and employee productivity

Work study is the systematic examinations of the methods of carrying on

activities the effective use of resources and to set up standards of performance for

the activities being carried out. Work study then aims at examining the way an

activity is being carried out, simplifying or modifying the method of operation to

reduce unnecessary of excess work, or the wasteful use of resources, and setting

up a time standard for performing that activity.,

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CHAPTER NO.4

RECRUITMENT AND SELECTION

Descon maintains a strict difference between external recruitment and internal

recruitment. It has given different names to both these functions that is: Descon

Engineering is a multi dimensional engineering, construction and manufacturing

company operating in Pakistan and the Middle East. With over million man hours

of construction work executed in industrial and infrastructure projects, Descon

employs over 34000 professionals and other personal.

Resourcing refers to internal recruitment the Descon that is; they try to attract

candidates for vacant jobs from within the organization. Recruitment only refers

to external recruitment that is locating candidates from outside the firm, which

may include fresh graduates of people working in other firms. However, it must

be noted that Descon prefers resourcing to recruitment.

4.1 The Resourcing Process

The resourcing process at Descon is conducted in a well planned in an efficient

manner. Resourcing process can be summarized as:

Identification of Job Vacancy

Job Description forwarded by respective departments

Determination of Grade and Designation

Job Posting

Candidates contact HR Department

4.1.1 Steps in the Resourcing Process

Now we will discuss all the steps involved in the resourcing process in turn.

1) Identification of Job Vacancy

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If an employee of the company leaves the firm due to any reason. This may be

deliberate resignation to move to another firm. This may also any other reasons

such as, retirement, termination or death, a vacancy is formed at the respective

department of the company. The department, carefully analyzed in all its respects

identifies this vacancy and the job description is forwarded to the workers of the

human resource department.

2) Job Description Forwarded By Respective Department

Then the department, in which the vacancy is created, sends a complete Job

Analysis Information to the HR Department. Thus, the Department forwards a

complete document to HR specialists so that they can analyze the job correctly

and efficiently.

3) Determination of Grade and Designation

When respective departments have identified the vacancy and the job description

has been sent to HR Department, the HR Department decides on the grade and

designation of the vacancy.

4) Job Posting

This is the most common practice at Descon. Moreover; the reporting time is also

specified within which the candidate should contact the HR Department.

5) Candidates contact HR Department

After job has been posted, the candidates who are interested contact the HR

Department via mail, telephone or face to face. The candidates will include

People working within the same branch of Descon.

People working in some other branch of Descon.

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4.1.2 Management’s View on the Resourcing Process

The management of Descon holds that resourcing or internal recruitment is better:

Because people not only seek a job at Descon but also find a prolonged career in

the company, basically it is Project Company.

4.1.3 The Recruitment Process

In Descon recruitment refers to external recruitment only that is people are hired

from outside the firm. The recruitment process involves the following steps:

Internal unavailability of appropriate personal

Screening of Available Resumes

4.2 Sop for Clerical/ Labor Job

Descon engineering is undertaking a major expansion in its capacity to provide

comprehensive, multi discipline engineering services in petroleum oil and gas,

power generation petrochemical and chemical industry sector for EPPC projects.

It is project based organization. Descon is renowned of diverse offer of training

and development measures. They provide state of art facilities to conduct internal

or external training.

These trainings covers development of fresh gradates, project managers,

department heads, technical staff and potential leader.

4.3 Criteria for Officers Job

1) In charge Quality Assurance & Quality Control

B.E (Mechanical / Metallurgy) with minimum 08 years of experience in the field

of QA/QC, with at least 03 years as Head of a QA/QC team. The candidate should

ideally have experience related to plant construction & Maintenance in Oil & Gas,

Fertilizers, Power Plants and Petrochemicals Sector.

2) Incharge Production

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B.E Mechanical/Metallurgy with 10 years of experience in fabrication of Steel

Structure, Boilers, Heat Exchangers and process equipment etc.

3) Site Managers (Mechanical, E & I)

B.E/ M.E (Mechanical, Electrical) with 15-20 years of relevant experience. Able

to lead the multi-discipline project team and responsible for the overall

management of the project site to which assigned such that the contractual

requirements and obligations are fulfilled, in accordance with drawings and

specifications and all is completed within in safety goals set for construction,

within budget, and within schedule.

4) Construction Managers (Mechanical, E&I)

B.E Mechanical/Electrical having more then 10-15 years of experience of filed

construction in mechanical works with proven leadership & entrepreneurial skills.

Motivate construction team, Ensuring cost effectiveness and work progress to

deliver the output as per schedule, Ensure implementation of Descon’s integrated

project management systems and related procedures at the site.

5) Incharge Planning and FEDC (Civil, Mechanical, E&I)

B.E Civil/Mechanical/Electrical with 10-15 years working experience on large

mechanical construction projects (Oil& Gas, Petrochemicals etc).

6) Incharge Fabrication

B.E. Mechanical with more than 10-15 Years Experience in Site Engineering Oil

& gas field construction, refineries, and Storage terminals. Must have sound

Knowledge in plant Storage Tank Fabrication and erection and piping works.

7) Incharge Stores

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MBA/ M.COM, or equivalent with 8 years experience. They have Knowledge on

Tool, Plant, Consumables, material identification and handling. Familiar with

ACCPAC / any computerized Inventory Control Software.

8) Incharge (E&P)

B.E Mechanical having 5-7 years experience or DAE with 10-15 years experience

in maintenance of hydraulic and pneumatic systems of heavy equipments. They

should be able to lead a team of technical persons and having strong

communication skills. Computer knowledge shall be preferred.

9) Incharge Commercial / Sub-Contracts

B.E (Civil/Mechanical) 10 – 15 years of experience. They have experience in

knowledge of FIDIC and other international forms of contracts.

10) Mechanical Engineer (Piping, Equipment, Structure)

B.E Mechanical with more than 5 - 8 Years experience in Erection of piping,

Hydro testing and commissioning in mechanical construction of plants.

11) Engineer FEDC (Civil, Mechanical, Electrical)

B.E Mechanical having 5-8 years of experience in field related engineering

information (drawings, project documents) in oil and gas. Candidate should be

able to ensure the correct estimation of BOQ and BOM from drawings and

breakdown in to workable package as per WBS and OBS. Sound knowledge on

P3, or equivalent.

12) Planning Engineer/Area Planner (Mechanical/Civil/E&I)

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B.E Mechanical/Civil/Electrical with 3-5 years working experience on large scale

construction projects. Must be well versed with Primavera Project Planner, MS

Office. Incumbent will be responsible for project process monitoring,

implementing of planning & monitoring systems, analysis of weekly project

performance report, assistance during project launching, resource estimation,

budgeting and cost analysis of project activities.

13) Engineer Cost Control

B.E Mechanical / Civil having 3-5 years of experience. Having Knowledge for

monitoring financial health of the project as compared to approved budget.

Prepares Quarterly Cost/Revenue forecasts.

14) Rigging Engineer

B.E Mechanical/DAE Mechanical having 5-7 years experience. Must have

knowledge of all crane operation related to rigging, heavy lifts.

15) QA/QC Engineer / Inspector

B.E / DAE Civil, having sound knowledge of related materials, specification and

testing.

16) Quantity Surveyor (Civil, Mechanical, E& I)

B.E Civil/Mechanical/Electrical with 3-5 years experience or

DAE-Civil/Mech/Elect having experience of 5-7 years. Incumbent shall be

required to study BOQ’s items and drawings, calculation of quantities, rate

analysis & reconciliation of issued materials with drawing quantities and

preparation of IPC.

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17) Material Engineer

B.E / B.Sc Mechanical / Civil / Electrical with 10 years experience. They must

have worked in same capacity in Mechanical construction Projects, Knowledge

on materials identification and handling.

4.4 Criteria for Executive Level Job

The criteria for executive level job are usually done for company’s most

experience employees who are very competent and knowledge of company’s

departments and they have the ability to perform their job as executive. Descon

Company prefers those employees who have ability to do that job.

The employee’s knowledge status and experience is based to do that job. The

Board of Directors selects the vertical promotion of employees who are eligible

for that. If the votes are more than opposition, they select for those employees as

executive level job for new or existing jobs. They give a chance of shareholders

also who are capable to do that job.

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CHAPTER NO.5

TRAINING AND DEVELOPMENT

The unit of Training and Development performs several important functions for

the company, like orientation training, Performance Appraisal and the general

Training and Development.

5.1 Orientation Process and Induction of New Employees

The Descon holds that orientation Program is very necessary for the old as well as

for the new employee. The entire process of orientation is conducted at Descon as

follows:

1) Need determination for orientation program

2) Designing of orientation program

3) Implementation of orientation program

4) Analysis of orientation programming And Development

5.1.1 Steps of Orientation Program

Need determination for orientation program. When an employee joins Descon, the

HR Department, the department in which the employee has been selected and the

top management determines the need for the orientation program. If the candidate

has been transferred from some other country to Descon Pakistan, it is very

necessary to acquaint him to the culture of the country and the general business

practices. He is of course, aware of the Descon engineering culture but he may be

informed about the new department he has joined and about his new duties and

authority.

Designing of orientation program At Descon the orientation program is designed

by

• Head of HR Department

• Training Specialists

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• Immediate Supervisor

• Head of the Department in which the employee is selected

In designing the orientation program, the length of the program depends on the

employee for whom the program is conducted. If the employee has joined Descon

from some other country the program is very lengthy as he is not only to learn the

culture of the organization but also the culture of the country as a whole. The

program usually includes

History, policies, practices, rules and regulations of the organization An overview of the department, the employee joints An introduction to the work environment, co-workers, superiors, and sub-

ordinates.

Hence, in this way the new employee is thoroughly acquainted with the Descon

culture and thus can perform his job effectively. Implementation of orientation

program at this step management simply implement the already design orientation

program effectiveness.

Analysis of Orientation Program

The HR Department of Descon holds that the feedback on the success of

orientation program is very necessary. The follow-up is conducted in the

following manner:

Discussion amongst Key Personnel

A comprehensive discussion is conducted by the HR Department with the

immediate supervisor and the Head of the Department of the employee to evaluate

the prose and corns of the orientation Program. If he is comfortable with the

Descon environment, the Program is a success or vice versa.

Management’s View on Orientation Process

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The management of Descon believes that orientation Program necessary because

of socialization and knows how about company’s policies and procedures. The

purpose of this step is to introduce the new employee with the work unit,

organization, peers. Tell them the rule and regulations of the company. In

different companies different persons are responsible for this but when we talk

about Descon manager gives orientation.

Training Policy

Basic purpose of training is to update the knowledge of employees and enhancing

their skills. Today organizations want professional employees because they have

come know the importance of employee that’s reason organization call employees

“their most important assets”. Due to which companies send their employees on

different types of workshop, seminars and other educational programs. Even some

companies provide opportunity of getting knowledge on the cost of company.

5.2 Training Need Assessment

The training program of Descon normally for the period of lesser then six months

and its purpose is to investigate strength and weakness after that making effort to

remove these weaknesses. They analyze that employee need training by self

assessment, performance record, and questionnaire. The handouts which they

provide to trainee develop by themselves not net based. All the cost incurred by

the company let it be in-house training or training organized by the Descon

Engineering Co. The employee normally needs training about his skill, knowledge

and career development.

5.3 Training design

After the need assessment process complete, the designing process starts to train

employees in systematic way.

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5.3.1 Setting objectives

The objective of the program is described in which a statement is passed. In this

statement, the goal of the training program is written that what thing they should

achieve by conducting this program. So the statement should be specific.

5.3.2Developing lesson plan

The statement is not enough, so the whole lesson plan is prepared in which each

and every activity is written in this portion.

5.3.3Selecting trainer/leader

The company select the trainer based on the training criteria, No. of employees

and their skill enhancement. If the No. of employees are less or any specific

criteria demands to train through the outside trainer, they outsource the training

program.

5.3.4Preparing material

The material is prepared by Trainer if the trainer is of the organization.

5.3.5Selecting program methods and techniques

Descon mainly uses the following training and development methods are:

• In-Housetraining On-the-Job Training• Program Conducted Abroad

In-House Training On-the-Job Training In-House Training On-the-Job Training

This is the most common method used at Descon. Under this bank have two

options;

On-the-Job Training:

Descon give the training to their employees on the job by hiring a trainer from

outside or from within the organization. But company selects the trainer very

carefully and only professionals individuals in field. Training In Institutes Within

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The Country: If the trainees need training in a specific technical skill, which the

company cannot provide economically, it sends the employee to institutes where

they get the requited training. The trainee interacts with new people and can make

contacts for the organization.

Training Program Conducted Abroad

Employees are sending abroad for special training and development Program

conducted by the Descon Group. This training Program may be conducted in

other countries Dubai or anywhere else where the Descon exists.

5.3.6Scheduling the program

The scheduling of the program is helping to conduct the program in right

direction and the employees learn in training.

5.4 Implementing the Program

After designing the program, the implementation process is playing Back Bone. If

all the process of designing is complete but the program doesn’t held due to

certain reasons, their will be loss of money, time and efficiency. So Descon’s

HRD convincing their executives to implement the program according to training

design will be benefit to the organization.

5.5 Criteria for training and Evaluation

The criteria for training and evaluation is helping that how well the program will

benefits to the organization in a whole. Descon’s criteria contain four parts;

5.5.1 Select the Evaluation Criteria

In this segment, the base for evaluation the training program set. If the base is

accurate, so the true results will be found.

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5.5.2 Determine Evaluation Design

The evaluation design helps employees to set accurate base in which the criteria is

set.

5.5.3 Conduct Evaluation of Program

The program is conducting on the basis of setting evaluation criteria. These

criteria may be through questionnaires, Examination Papers, presentations or

observation.

5.5.4 Interpreting Results

The results of evaluation criteria helps the Descon’s Engineering Company that

how well their training staff learn and enhance their abilities for future role. If one

person get full fledge train in this specific area of training, it is possible that he

may receive rewards like, increase in salary or Promotion. Because he is now the

precious asset of the organization and everyone wants to retain his precious asset.

5.6 Descon Training Institute (D.T.I)

Descon Has Specific institute (D.T.I) in the employees and especially technical

workers are trained and become company’s dynamic asset. These institutes have

capacity to train all types of technical works done in Pakistan.4

CHAPTER NO.6

PERFORMANCE MANAGEMENT SYSTEM

A performance management system is very important in order to check efficiency

and effectiveness of work. Actually it is the process of creating the work

environment in which people are enabled to perform their best abilities. It starts

from the necessity of the job and ends with the employee leave from the

organization.

4 Performa of DTI admission form attach with Project

40


This picture indicates that How Performance management system works to

evaluate the job and after evaluation, the management decides what strategies in

which they can grow by considering the approach of their work force and set

standards on the basis of evaluation. These standards are in shape of rewards and

sanctions. The rewards are in the shape of promotion; increase their pay or some

non-monitory reward.

Performance Appraisal System (Fig 6.1)

5

6.1 Performance Appraisal Process

Descon Engineering Company is using HAY Methodology as a Performance

Management System to check the performance of employees of the company.

This method is using most of the world’s largest companies. This method helps to

evaluate the right people, right job and execution of company’s strategies.

A thorough Hay method is followed by Descon Engineering Company, which

determines the performance appraisal for each employee. At the end of the year,

5 http://www.scotland.gov.uk/Resource/Img/69582/0017606.gif

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the manager and the HR Department at Descon evaluate the performance of each

employee formally. At some branches of the Company in Pakistan, management

checks the performance on monthly bases.

6.1.1 Goal Setting

The strategic planning of Descon is to match the employee’s goals with

organization goals.

6.1.2 Performance Evaluation Method

Descon set the appraisal criteria according to the national and international laws

because it is a Multinational organization. The evaluation process consists of

various techniques which are adopted according to the Hay Methods of

evaluation.

The main Hay Group methodology, Hay Group Guide Chart-Profile Method of Job EvaluationSM provides you with a consistent and objective framework to:6

Analyze Your Organizational Structure

The first step of performance appraisal method is to analyze the structure of the

organization and then identify those ways which help to make it more effective.

Descon Company is Project Base Company in which the structure of the

company’s work force is usually contract base. But the company is focusing their

employees to train them and motivate them. This thing starts from assessing needs

to the completion of those needs. The performance management system is one of

the ending processes of the whole retention program.

Evaluation of the Jobs

6 http://www.haygroup.com/ww/services/index.aspx?ID=111

42


When the structure of the company is analyze by the HR Managers. They start to

evaluate the people and jobs to match the right individuals to the right roles.

Define Career Progressions

The company defines career progression both from individual roles and across related job groups and interlinking organizational goals with personal goals.

Reward Program

After the Performance Appraisal Process, the company had develop targeted pay and reward programs, using Hay Group’s global compensation database optimize the return on investment in people by paying in proportion to contribution. All of this ultimately leads to an increased ability to manage your human resources more effectively.

The reward program is held and employees take reward according to these levels:

6.2 Level I.D. Form

L1 High Potential / High Performance

L2 High Potential / Medium Performance

L3 Medium Potential / Medium Performance

L4 Medium Potential / Low Performance

L5 Low Potential / Low Performance

L6 Cruse6.3 Performance Feed Back

The person who is conducting Hay method of performance appraisal is sharing

information and getting feedback from employees who are checking their abilities

of their work and experience and their feedback helps both parties to create good

results. The discussion have three parts in which first prepare feedback

discussion, second part conduct feed back from employee and last one conclude

the discussion through analyzing the behavior of employees.

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http://www.haygroup.com/ww/services/index.aspx?ID=112


CHAPTER NO.7

REWARDS AND REMUNERATION MANAGEMENT

Rewards and Remuneration Management plays very important role in the

motivation of employees. Every organization gives the importance to these

activities.

7.1Monitory Rewards

7.1.1Salaries

Descon pay the salaries to their employees according to their ability, skills and

their experience. Company also considered the national laws of every country in

which it operates regarding to salaries such as minimum salary act.

7.1.2Designations

Like all other organizations Descon also have specific grades and designations for

their employees that show the status, power and responsibilities of job at work

place. These grades start from G-1 to G-9.

G-9 is a executive level grade that shows the high level power and responsibilities

in organization and G-8 show less than as compare with G-9 and so on.

The monitory rewards include so many things in which an employee can be

motivated through different packages. These rewards are following;

Salaries Gratuity Funds Profit Sharing Provident Funds Annuities Bonus

7.2 Non-Monitory Rewards

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Descon gives utmost importance to compensation packages because this is the

most crucial factor for retaining key employees. The amount of bonus and

increments depend on the profit so they gives gratuity for those projects in which

the workers perform well and effects company’s extra profit, then for each

department.

Stock Ownerships are given, as Performance Bonuses to employees giving high

performance and whom the Company wants to retain.

7.2.1Allowances

Descon Engineering Co. gives the different allowances to their employees in

order to increase their performance and loyalty. There is different allowance that

included in basic salary of employees. These are:

House Rent Allowance at sites Medical Allowance Conveyance Allowance Insurance Facility Food allowance Annual Leaves Hardship Allowances Health and Safety Environment

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CHAPTER NO.8

INDUSTRY RELATION

The field of industrial relations (also called labor relations) looks at the

relationship between management and workers, particularly groups of workers

represented by a union. Descon treated their employees as partner in delivering

superior customer value. We know that The Company’s operations are project

based and they work in different types of construction, maintenance and

development businesses.

8.1 Procurement for election of labor union

The company has very good system of procurement of labor union. There are

several types of Technical, Engineering, and Managerial employees working in

Descon. When any project is start, the Human Resource Department check all

those workers who can work on that specific project. If the members are not

available, so they are checking those projects which are at completing stage. If

any one is at competing stage, the HRD pull some work force from these areas

and start new project. If the demand does not fill right now, they hire new

workforce for starting the project.

8.2 Dispute Settlements

We now that in any organization, there are different dilemmas’ between

employees. If there is any dispute regarding any issue, the HRD plays an

important roll and settling disputes which are not settling by supervisor. The

climate survey is held to check both parties and some times punish both parties

for their bad work. Some time handling miscommunication through interfere all

those parties which are involve.

8.3Health and Safety Measures

As we know, Descon is a Multinational organization so it follows all laws

regarding to Health and Safety at work place. We visit the Head Office of

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http://en.wikipedia.org/wiki/Trade_union

http://en.wikipedia.org/wiki/Management


Company at Lahore, which is very clean, well arranged and cool in summer.

Descon provide the following health and safety equipment at all their branches:

8.3.1 First aid at work

In case of any sudden accident Company has First aid at work place

8.3.2 Emergency doors and Direction

In case of any emergency Company has doors and clear direction toward these

doors through arrow signs.

8.3.3 Fire extinguishers

In case of fire there is fire save equipment at Company.

8.3.4 Others Concerns

Smoking alarms also there, which is turn on in case of any smoke in sites and

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http://www.hse.gov.uk/firstaid/index.htm

APPENDICES

APPENDICES

1) Job Description Form:

http://www.descon.com.pk/HumanResources/apply.aspx

2) Performa of DTI:

Performa of DTI admission form attach with Project

3) Descon Visiting Card

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http://www.descon.com.pk/HumanResources/apply.aspx

Documents

Project of HRM PRACTICES PREVAILING in Descon