SITARA CHEMICLAS INDUSTRIES LTD

6/6/2011

SUBMITTED TO:

PROF. MAARIF SOHAIL

SUBMITTED BY:

HAFIZ MUHAMMAD UMAR FAROOQ

L1F09BBAM0170

MUHAMMAD TEHSEEN

L1F08BBAM0140

KASHAN AHMAD

L1F09BBAM0135

FAQEED FIAZ

L1F09BBAM2254

HASSAN SIKANDAR

L1F09BBAM2255

HRM FINAL PROJECT REPORT UNIVERSITY OF CENTRAL PUNJAB

TABLE OF CONTENTS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

INTRODUCTION

(OVERVIEW OF THE ORGANIZATION)

(VISION)

(MISSION)

CURRENT PROBLEMS BEING FACED BY SCIL WITH RESPECT TO HRM

STRATEGIC LONG TERM IMPLICATIONS OF HRM IN A DYNAMIC ENVIRONMENT

EMPLOYEE RIGHTS AND HR COMMUNICATION

HR PLANNING AND JOB ANALYSIS

RECRUITING

SELECTION PROCESS

NEW EMPLOYEES’ ORIENTATIONS

TRAINING THE WORKFORCE

MANAGING CAREERS

PERFORMANCE MANAGEMENT SYSTEM

EMPLOYEE’S BENEFITS, REWARDS AND PAY PLANS

ENSURING THE SAFE AND HEALTHY WORK ENVIRONMENT

LABOR RELATIONS AND COLLECTIVE BARGAINING

RECOMMENDATIONS

CONCLUSION

REFERENCES AND SOURCES

ACKNOWLEDGEMENT

“In the name of Allah, the most merciful and beneficent”

Thanks to almighty Allah for enabling us to fulfill all the requirements for the completion of

our HRM final project report. We are also grateful to the University of Central Punjab that

provided use a chance to explore our skills, qualities, abilities and potentials through

internship program.

And we are also thankful to our teacher Prof. Maairf Sohail for giving us chance to show the

best of our abilities during the period of our course.

At Sitara Chemicals Industries limited, I would like to thank Tariq Mahmood's (SENIOR

MANAGER HR) who provided us full opportunity to accumulate first hand comprehensive

information. We are also obliged to different persons like Ahmad Baqa and Mr. Ghulam

Mustafa who provided ever information we needed during the course of our project.

Finally we are responsible for all possible omissions, errors and mistakes presented in the

report and a positive and constructive criticism will always be greeted warmth. And we

hope that all concerning regards of this report will forgive our errors.

EXECUTIVE SUMMARY

In this assignment I have describe about the Sitara

Chemical’s Human resource department problems, functions,

processes, objectives, roles & their goals in the organization. Terms

included in this report are HR planning, job analysis, recruitment,

selection, socializing, training & development, career management,

compensating the employees and their safety assurance and

management relationships in the organization. The human resource

departments of Sitara Chemicals Industries Limited have many

ambiguities in there recruitment, selection, training & development,

motivation, compensating & maintaining process. We have

recommended much useful suggestion for the refinement of the

whole process According to our knowledge.

INTRODUCTION:

SITARA GROUP OF INDUSTRIES is one of the renowned industrial groups of Pakistan. This group

started its industrial activity with textile weaving sector in 1956 under leadership of two brothers,

Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed. Group Companies includes Sitara textile

Industries Ltd, Sitara Peroxide Ltd, Sitara Energy Ltd and Sitara Developers (pvt.) Ltd whereas Aziz

Fatimah Hospital, Sitara Institute of Management & Technology, Aziz Fatima hospital and Aziz

Fatimah Girls High School are included in Group Charities.

OVER VIEW OF THE ORGANIZATION:

Sitara Chemical Industries Ltd is situated at 32 km, Sheikhupura road, Faisalabad. It was

incorporated in 1981 and began producing caustic soda in 1985. Company entered into

Textile Spinning Business in 1995. Its specialty chemicals and export division was established

in 2001 and agri-chemicals division in 2003. Its Main Office is in Faisalabad. It have more

than 1,600 employees

PRODUCTS:

Basic Chemical

Speciality Chemical

Gases

Agricultural

BOARD OF DIRECTORS:

Haji Bashir Ahmad(Chairman)

Muhammad Adrees(CEO)

Mr .Javeed Iqbal

Mr. haseeb ahmad

Mr. Muhammad Anis

Mr. Muhammd Khalil

Mr. Imran Ghafoor

Mr.Rashid Rzahir

LOGO:

VISION:

“Strive to develop and employ innovative technological solutions to add value to

business with progressive and proactive approach.”

MISSION:

“Continuing growth and diversification for bottom line results with risks well contained.”

CODE OF ETHICS AND BUSINESS PRACTICES:

“We believe in stimulating and challenging team oriented work environment that

encourages, develops and rewards excellence and diligently serve communities,

maintaining high standards of moral and ethical values.”

QUALITY POLICY:

“Sitara Chemical Industries Ltd. is committed to remain alert and advance, to

continuously grow as a Quality Symbol for its products and in meeting industrial and

consumer requirements, through training, team work, and procedures, on time, every

time.”

ENVIRONMENTAL POLICY:

“Sitara Chemical Industries Ltd. is committed to continual improvement of its

Environmental Management System (EMS) by adoption of appropriate pollution

prevention measures and complying with all relevant training, teamwork and procedures

as implemented from time to time.”

CORPORATE SOCIAL RESPONSIBILITIES:

“SCIL is a socially responsible organization. They are investing in healthcare and skills

development of their people and peoples of the area as well as education of best of the

brains. This industry is well acknowledged for its contribution to socio-economic uplift of

the region and strengthening social safety nets. They value their workforce as the most

integral part of the organization.”

CURRENT PROBLEMS BEING FACED BY SCIL WITH

RESPECT TO HRM:

TECHNICAL MANPOWER SHORTAGE:

SCIL has to face the shortage of skilled labor because there is huge demand of technical workers

in MIDDLE-EAST. Due to high compensation rate in foreign countries, technical man power

prefers to work there instead of Pakistan.

DIVERSITY PROBLEMS:

Work force diversity is causing serious problems in SCIL. Because people belong to similar

backgrounds form groups, monopolies and they sport only their own group members. Group

members prefer to form trusting relationships with people who have a similar background

while distrusting (or being less trusting of) those from dissimilar backgrounds.

MOTIVATION PROBLEMS:

Great majority of employees are quite enthusiastic when they start a new job. Employees'

morale sharply declines after their first six months—and continues to deteriorate for years

afterward. And it very difficult maintains the enthusiasm of employees in Pakistan due to bad

economic conditions.

RETAINING PROBLEMS:

The attraction and retention of high caliber persons is key to success in every organization.

Middle level managers and professionals who have been inducted in the organization are

difficult to retain and motivate as the market offers higher remuneration to those who have

acquired experience at the SCIL.

SPECIAL TRAINING AND SKILL UP-GRADATION PROBLEMS:

Many employees have been sent abroad for overseas training, attachment, study tours,

seminars, etc. On their return, each participant is expected to share and disseminate his

learning with the larger group to which he/she belongs. But many employees do not do so.

EMPLOYEE TURNOVER PROBLEMS:

Turnover can be a serious obstacle to productivity, quality, and profitability at any firm. The

prospect of getting higher pay elsewhere when an employee has acquired experience at the

SCIL is one of the most obvious contributors to turnover.

INCREASING PERSONAL PROBLEMS:

Due to increasing working women in our society, Parents give less attention to their children.

This thing causes many serious family problems. Due to disturbance of their personal life, many

employees are unable to concentrate on their assigned task and show lack of motivation.

STRATEGIC/LONG TERM IMPLICATIONS OF HRM IN A

DYNAMIC ENVIRONMENT:

CULTURAL ENVIRONMENT OF SITARA CHEMICALS INDUSTRIES LTD:

In Pakistan there is a great value of collectivism, relationships and concern of others life. After

understanding these cultural values, the professional management always lays emphasis on

initiative, drive and team spirit, where continuous improvement and excellence is the goal.

Professional culture is dominant in the group. As a part of Organizational Development

program, special emphasis is laid on development of human resources through in-house and

external training, in order to update the staff with latest advancements in technology and

management techniques, resulting in a highly competent pool of human resources.

Effect of technology on HRM practices:

Technology has affected human resource management in many ways such as,

Recruiting:

Changing technology developed new systems of recruiting in Scil. Company has recently

upgraded its human resource management system for ORACAL to SAP. This system helps HR

department to maintain the employees’ information. All the programming has been done by IT

department. In pay roll system there is an employee form where the data has recorded and pay

break up system is also the part of these pay roll forms. In Sitara, employees attendance is

being checked through hand scanning recently changed from old procedure of card scanning.

SCIL also use internet to recruit new employees. Company has a “JOB” section in its web site.

This section has all information about the available jobs. Persons who are interested in the job

can easily apply online.

Training & and development:

Employee’s development & grooming become more critical & essential for which importance of

training & development cannot be denied. New technology developed new methods of training

such as computer based. This type of training includes guided drill and practice exercises,

computer visualization of complex objects, and computer-facilitated communication between

employees and instructor.

Other HRM practices:

In Sitara Chemicals Industries Ltd, newly installed HRIS (SAP) helps HR department to maintain

the employees’ information more easily and effectively. Systems such as pay roll, attendance

management system help management to maintain record more quickly and accurately.

Employees’ rights:

Employee rights have become one of the more important human resource issues. Management

of SCIL allowed employees to tell management what they perceive they are doing right or

wrong. Discrimination, intimidation and harassment based on sex, race, religion, age, color,

disability, sexual orientation and cultural background is prohibited at the workplace. HRM is

creating awareness in employees by communicate their rights, policies and procedures to

employees.

Work force diversity:

Work force diversity can cause serious problems such as formation of groups, monopolies and

biasness in the groups. Group members prefer to form trusting relationships with people who

have a similar background while distrusting (or being less trusting of) those from dissimilar

backgrounds. So management in SCIL is doing continuously efforts to avoid these kind of

problems.

Labor supply:

SCIL has to face the shortage of skilled labor because there is huge demand of technical workers

in MIDDLE-EAST. Due to high compensation rate in foreign countries, technical man power is

shifting from Pakistan to these countries. To fulfill this gap, management has taken some serious

measures to fulfill these requirements.

CONTINGENT WORK FORCE ISSUES:

In SCIL, contingent work force is mainly the low level physical workers and their goals are not in

accordance with the organizational goals. It is very tough job to manage this type of physical

labor because they mostly try to complete their duty hours or assigned task not the ultimate

goal behind that goal.

CONTINUOUS IMPROVEMENT PROGRAMS:

Sitara Chemical Industries Ltd. is committed to remain alert and advance, to continuously grow as a

Quality Symbol for its products and in meeting industrial and consumer requirements, through training,

team work, and procedures, on time, every time.

WORK PROCESS ENGINEERING:

To meet the requirements of changing environment and increasing competition, recently Sitara

Chemicals Industries Ltd upgraded its ORACAL based human resource management system to

SAP based human resource management system. This system helps HR department to maintain

the employees’ information. Its card scanning system is also upgraded to thumb scanning

system last year. HRM Assisted in Work Process Engineering by providing them skills training.

Employee involvement:

Great majority of employees are quite enthusiastic when they start a new job. Employees'

morale sharply declines after their first six months—and continues to deteriorate for years

afterward. HRM of SCIL is taking measures to maintain the enthusiasm of employees even in

these bad economic conditions.

EMPLOYEE RIGHTS AND HR COMMUNICATION:

LABOR LEGISLATION IN PKAISTAN:

The Constitution of Pakistan contains a range of provisions with regards to labor rights.

Article 11 of the Constitution prohibits all forms of slavery, forced labor and child labor

Article 17 provides for a fundamental right to exercise the freedom of association and the right

to form unions;

Article 18 proscribes the right of its citizens to enter upon any lawful profession or occupation

and to conduct any lawful trade or business;

Article 25 lays down the right to equality before the law and prohibition of discrimination on

the grounds of sex alone;

Article 37(e) makes provision for securing just and humane conditions of work, ensuring that

children and women are not employed in vocations unsuited to their age or sex, and for

maternity benefits for women in employment.

DISCIPLINES IN SCIL:

Laws & Workplace Regulations:

The Company is complying with laws & regulations in its all business locations.

No Child Labor:

The Company is not engage itself in or support the use of child labor.

No Forced Labor:

The Company is not using any involuntary or forced labor- indentured, bonded or otherwise.

Health & Safety:

The Company is providing employees with a safe and healthy work environment. The Company

is ensuring prevention of accidents and injury. Clean & sanitary support facilities; access to

potable water and safety training will also be a part of Company’s policy.

Freedom of Association:

The Company is recognizing and respecting the rights of employees to associate, organize, and

bargain collectively in a lawful and peaceful manner, without penalty or interference.

Nondiscrimination:

The Company employees, pays, promotes and terminates workers on the basis of their ability

to do the job, rather than on the basis of personal characteristics or beliefs.

No Harassment or Abuse:

The Company is providing a work environment free of harassment, abuse or corporal

punishment in any form.

Hours of Work:

Hours worked each day, and the days worked each week are not exceeding the legal

limitations. The Company is providing at least one day off in every seven-day period, except as

required to meet urgent business needs.

Compensation & Benefits:

The Company is paying at least the minimum total compensation as required by local law,

including those relating to minimum wages, overtime, maximum hours, piece rates and other

elements of compensation, providing legally mandated benefits.

Environment:

The Company complies with environmental rules, regulations & standards applicable to their

operations & will observe environmentally conscious practices in all locations of business.

Drug Interdiction:

The Company cooperates with local, national and foreign customs and drug enforcement

agencies to guard against illegal shipments of drugs. This social compliance policy and its

objectives are made available to any interested party upon request. These same commitments

are shared by all suppliers of Stara Chemicals.

EMPLOYEES’ RIGHTS IN SCIL:

Every employee has the right to come to meet his immediate supervisor for the help or

solution of any problem. If his supervisor cannot satisfy the employee, then employee

can go to HR department for this problem.

Complaint Box is placed near the entrance of HR office which is opened by HR manager

normally once in a week. So employee can get the solution of his problem in this way as

well.

The Organization treats all employees with respect and dignity, no employee is

subjected to any gesture, language and physical contact that are sexually coercive,

threatening, abusive or exploitative.

Warning are addressed to the employees verbally and in written through their

immediate supervisor. The warning referred to the contraventions committed by the

employee and served to remind the employees the he/she abide by organizational rules

and regulations in performing his/her work, and that this contravention should not be

repeated in future.

A written letter addresses to the employee describing the contravention committed.

The employee is also notified that a higher penalty may be inflicted on him if the

contravention is repeated in future. The warning letter is then put in the employee’s

personal file. Issuance of written warning can be recommended by the respective

supervisor and Head of Department. It will be issued by the HR department after

approval of Chief Executive Officer.

An employee who is absent from the job without satisfactory explanation and necessary

proof, is considered to be an unauthorized unpaid absence.

Discrimination, intimidation and harassment based on sex, race, religion, age, color,

disability, sexual orientation and cultural background is prohibited at the workplace.

Communication of Policies:

SCIL utilizes following means to communicate these policies and procedures to employees:

1. Inclusion in employee handbook

2. Inclusion as a separate area of discussion in the new employee

Orientation program

3. Inclusion as part of training sessions.

HR PLANNING AND JOB ANALYSIS:

Managers and HR departments achieve their purpose by meeting objectives. Objectives are

benchmarks against which actions are evaluated. Sometimes they are carefully thought out and

expressed in writing. More often objectives are not formally though out and expressed in

writing.

The main objectives of Human Resource Management are not only to reflect the intention of

senior management, they also must balance challenges from the organization, the HR function,

society, and the people who are affected. Failure to do so can harm the firm's performance,

profits, and even survival.

ORGANIZATIONAL OBJECTIVE:

HR management exists to contribute to organizational effectiveness. Even when a formal HR

department is created to help managers, the managers remain responsible for employee

performance. The HR department exists to help managers achieve the objectives of the

organization. HR management is not an end in itself; it is only a means of assisting managers

with their human resource issues.

At the organizational level, senior managers who set the organization’s goals should

analyze needs.

At the operations level, the managers who specify how the organization’s goals are

going to be achieved should analyze needs.

At the individual level, the managers and workers who do the work to achieve those

goals should analyze needs, keeping in mind that performance is a function both of

ability and motivation.

CORPORATE ASSESSMENT:

Gap or SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis determines what is

needed to meet objectives

Strengths:

Largest manufacture(caustic soda)

Largest Shareholder

Advance Technology

Plant Infrastructure

Strong Management

Strong Brand name

Financially Sound

Weaknesses:

Need Sizable Market to Sustain

Lack of Operations in Abroad

Relying on Permanent Customers

Opportunities:

Increase Production Capacity

Increase Product Line

Taking Advantage of Geographic position

Provide Online Customer Service & Ordering System

Threats:

Competitors

Economic Environment

Energy Crises

Threat of Stakeholders

Unstable Law & Order Situation

ASSESSING CURRENT HUMAN RESOURCES:

Current human resources are assessed with the help of human resource management system

and replacement chart.

Human Resource Information System:

Human resource information system is a computerized database that contains important

information about employees. Scil have recently upgraded its human resource management

system for ORACAL to SAP. This system helps HR department to maintain the employees’

information. All the programming has been done by IT department. In pay roll system there is

an employee form where the data has recorded and pay break up system is also the part of

these pay roll forms. In Sitara, employees attendance is being checked through hand scanning

recently changed from old procedure of card scanning.

Replacement Chart:

Scil also uses replacement charts for its succession planning. These charts enlist information

about individuals who might qualify to fill the positions as well as the information about the

management positions that may become vacant in the near future.

HUMAN RESOURCE PLANNING:

Human resource planning is all about measuring the organization need to identify the numbers

of employees and skills required to do those jobs. Further, an understanding of available

competencies is necessary to allow the organization to plan for the changes to new jobs

required by corporate goals. Human resource planning is done according to estimation of

numbers of vacancies that will vacant in the near future. Factors considered in this estimation

include Retirements, Dismissals, Transfers-out, Lay-offs, Voluntary quits, Sabbaticals, Prolonged

illnesses and Deaths.

JOB ANALYSIS:

There are four basic technique generally used for gathering about different jobs.

Interviews in some cases, job analysts may interview the employee who is performing

the job, the supervisor, or both. This technique may be time consuming, and the danger

exists that employees may exaggerate the importance of their jobs. At Sitara interviews

are conducted for certain types of investigations in cases of breakage of rules and

regulations. Interviews are also conducted for search of a new candidate but these

interviews are just mere formality rather than having professional approach.

Observation A second approach to information gathering in job analysis is having the

analyst actually observe the individuals performing a job and record observations while

doing so. In some instances this method is very useful, but under certain conditions it

becomes more difficult if not impossible. At Sitara this technique is implemented in

some cases, observations have done for performance judgment and competency of

work force.

Questionnaires Probably the least costly method of collecting job analysis data is by

using questionnaires. Well-designed questionnaires have been claimed to be “the most

efficient way to collect a wide array of job data and information in a short time.

However, there is the danger that a responder will not complete the questionnaires,

complete it inaccurately, or take an excessively long time to return it Sitara usually does

not use this sort of technique to collect the data.

Diaries or Logs A fourth approach is to utilize diaries or logs in which employees

record their daily activities and tasks. In addition, those activities performed at

infrequent intervals must also be noted. Because of the difficulties connected with this

procedure, portable tape recorders may be utilized to assist in maintaining a record of

such activities. HRM department has not any systematic procedure for using the diaries

or logs for the purpose of data gathering.

JOB DESCRIPTIONS AND JOB SPECIFICATION:

After job analysis, a written statement is produced about what jobholder does, how it is done,

under what conditions. This written statement is known as job description. It is also used to

describe the job to applicants, to guide new employees, and to evaluate employees. After the

formation of job description, another statement is produced. This statement states the

minimum acceptable qualifications for the job. And it is used to select employees who have the

essential qualifications.

RECRUITING:

i). INTERNAL RECRUITING

Filling a job opening from within the firm has the advantages of stimulating preparation for

possible transfer, or promotion and increasing the general level of morale. There are two types

of internal recruiting in SCIL.

Self-Nomination:

Human resource department of SCIL publishes a newsletter after some times that enlists all

information about the vacant jobs. Any employee who have the required qualifications and

interested in the position can apply for it.

Nomination By Employees Supervisor:

Informal communications among managers and supervisors leads to the identification of a

talented and suitable person for a certain job.

ii). EXTERNAL RECRUITING

Sitara chemicals incorporation Limited also goes to external sources for positions whose

specification cannot beam by present personnel. SCIL uses following outside sources:

Employee References:

Employee referrals have great importance in SCIL because employees have more accurate

information about the potential job and they give the applicant more realistic information

about the job than any other source. This information reduces unrealistic expectations and

increases the survival rate. Employee referrals are also important to locate a potential

employee for any hard-to-fill location.

Independent Ads:

When there is no person inside the organization to meet the requirements of a job then human

resource department give independent ads in the newspapers. The ads contain only the

qualification required and other important information about the job. Advertisements are

placed in various newspapers.

Walk-in Applications:

Unsolicited applications both at the gate and through the email constitute a much used source

of personnel. Even there is no current opening; these applications are kept on file for later use.

These applications provide an excellent supply of stockpiled applicants.

Cyber Space Recruiting:

SCIL also use internet to recruit new employees. Company has a “JOB” section in its web site.

This section has all information about the available jobs. Persons who are interested in the job

can easily apply online.

Employment Agencies:

Additional screening is done through private employment agencies. Employment agencies used

by scil includes

ROOZE

Careerjet

Bayrozgar

The Guides

CONSTRAINTS ON RECRUITING EFFORTS:

The major constraint on recruiting efforts is shortage of skilled labor because Middle East has

huge demand of technical labor. The person who has technical skills preferred to work in

overseas countries rather than Pakistan. That’s why it is very difficult to find a fully skilled

person.

SELECTION PROCESS:

There are various authorities to hire the people for various positions. If position of job is that

employee would be paid about Rs.7, 000/- monthly, immediate boss has authority to hire this

employee. The department head hires employees having salaries below Rs.12, 000/- monthly.

And job of value higher than Rs.12, 000/- there are various steps through which the candidate

has to pass.

In the hiring procedure, SCIL considers the following steps to discover significant information

about an applicant:

SHORT-LISTING OF APPLICATIONS:

SCIL primarily review the potentially acceptable candidates. This initial screening process also

includes shortlisting of applications.

After recruiting efforts, the applications and CVs submitted by candidates are screened

out on the basis of:

I. Merit

II. Institute

III. Experience etc.

In shortlisting of applications, approximately 50% of the applicants are selected for the

further process. After this process, the H.R Department lists out the salient features of

the CVs (only the accepted CVs).

WRITTEN TEST:

For fresh graduates, a written test is conducted by the HR management. This written test

covers various types of questions and topics i.e.

I. Intelligence Test

II. Mechanical Aptitude test

III. Clerical Aptitude Test

IV. Interest Test (Likes and Dislikes)

EMPLOYMENT INTERVIEW:

The employees who are able to pass the written test are called for interviews. Candidate has to

pass through three different interviews.

1st interview is conducted by his immediate boss

2nd interview is conducted by department head

3rd interview is conducted by CEO or senior management or both.

MEDICAL/PHYSICAL TEST:

The objectives of having physical/medical test are to ascertain the applicant physical

capabilities e.g. can the applicant work standing up. The second objective of examination is to

protect the company against unwarranted claims under worker's compensation laws or against

lawsuits for damages.

Candidates who are selected for management posts will only have to submit their blood tests

reports while the persons selected for technical and physical work will have to pass the all kinds

of required physical and medical tests.

CHECK OF REFERENCES:

This is the last step of the selection process. The purposes of the reference check are to obtain

information about past behavior of applicants and to verify the accuracy of information. SCIL

uses combination of letters and telephone calls, as a method of checking. Reference check

includes;

I. Dates of Employment

II. Job Title

III. Absentee Record

IV. Promotions and Demotions

V. Compensation

VI. Stated Reason for termination.

Employee Grades:

There are different grades for workers. These are:

Grade-1 G-1

Grade-2 G-2

Grade-3 G-3

Grade-4 G-4

Grade-5 G-5

Grade G-5 is for supervisors and G-1 is lowest grade in the organization. There are four different

executives’ grades. These are:

Executive-1 E-1

Executive-2 E-2

Executive-3 E-3

Junior Executive J.E

E-1 is the most senior in executive group and J.E is the most junior in this group. There are three

Managers grade in SCIL. These are:

Manager-1 M-1

Manager-2 M-2

Manager-3 M-3

In this group M-3 is most senior and M-1 is joiner.

NEW EMPLOYEES’ ORIENTATIONS:

New employee orientation program delivers multiple benefits includes helping employees to

learn the “ground rules” of the company. In SCIL there are distinct components of new

employee orientation program. First part is general orientation, in which overall policies and

procedures are discussed to new employees that are applied to all areas of the company. These

includes matters of personnel, compensation, benefits, employee rights, unions (if applicable),

and the employees' general responsibilities. The second part consists of job-specific issues that

are directly related to the new employee responsibilities, company expectations, and policies

and procedures. At the end of the of orientation program, employee have to submit the

orientation report.

In SCIL Orientation program is varied from job to job. For some jobs its duration is

one week and for some jobs it is up to one month. The first part of the orientation that

is known as general orientation is conducted by human resource management. Then

new employees are introduced to the supervisor to whom they have to report. Then the

practices and procedures of SCIL told to the new-comers i.e.

Hours of work and attendance/tardiness policy

Payroll periods, when paychecks are delivered and when first check will

arrive

Rates of pay

Overtime rules

Training or introductory employment period

Employee benefits for which they are or may become eligible:

Advancement or promotion opportunities and procedures

Employee suggestion plan

Parking arrangements

Union-related information if this person will be in a represented group

Then new employees are provided with the copies of the following documents:

Employee handbook

Safety plan

Annual report

Employee newsletter

Direct payroll deposit request

Employee benefit booklet explaining each of the organization's offered

benefits

After the general orientation new employees are introduced to their correspondent supervisors

to whom they have to report. In this part of orientation the employee are informed with their

office location. This component of the orientation helps employees to understand how their

new team operates. The chain of command of the department in which the new employee has

to work is explained to him and provided with a copy of the organizational chart. The supervisor

also explains about the training process.

TRAINING THE WORKFORCE:

Training is one of management's most important strategies for reaching organizational goals.

When used to produce or upgrade organizational skills needed to overcome gaps in

performance, training can bring back savings to an organization that are many times

more valuable than the cost of the training itself. To be effective, training decisions must

be based on a consistent flow of reliable information about the quality of performance

in various parts of an organization. Providing management with information of this

kind is the reason why organizations undertake the assessment of training needs.

SCIL mostly uses following indicators to assess needs for training:

New employees

Career Enhancement Plans

New supervisors

Performance problems

Production problems

Safety problems

New technology

Techniques Used include:

Direct observation

Management requests

Questionnaires

Personnel reports

Business and production reports

FIVE-STEP PROCESS:

SCIL’s training needs assessment is planned according to the five-step. Faithful

adherence to this process will produce a substantial amount of information about

organizational performance. It also will furnish the manager with a guidance system for

identifying needs that call for training solutions and for choosing the most suitable training

remedy.

STEP 1) MANAGEMENT SANCTION AND PREPARATION:

In SCIL, the training needs assessment process begins when a decision is made by

management to sanction and prepare needs assessment in locating appropriate

targets for training. If employees are new to the organization, it may be necessary to

appoint and train staff or to engage competent outside assistance.

Step 2) SCANNING THE WORK SITUATION:

This is a significant step, as performance discrepancies exist at every organizational level.

Some discrepancies exist or develop when employees do not know how to perform their

duties correctly or do not wish to do so. Other discrepancies come into existence as the

consequence of starting new programs, hiring new people or installing new facilities and

equipment. The nature and extent of discrepancies in performance within the

organization are identified by continuous scanning - studying records and reports

produced by or about the organization, and asking questions to verify facts and opinions

obtained through other means.

Step3) FOCUSING ON DISCREPANCIES AND NEEDS:

As performance discrepancies vary in nature and can affect an organization in different

ways. Some are serious and can be damaging if not corrected. SCIL focuses on an

analytical activity that helps to direct management attention to the most important

discrepancies.

Step 4) PLANNING FOR PRIORITIES:

In this step SCIL identify and formulate proposals for meeting an organization's training

needs which requires careful planning. There are limited resources available to the

organization to train its employees, both from within the organization and from outside.

Priorities are assigned to the various strategies based on criteria of potential impact,

cost, feasibility and timing for consistency with the organization's requirements.

Step 5) REPORTING TO MANAGEMENT:

The final step in a training needs assessment is to prepare a written report to

management. Report contents include background information on each training need and

a description of desired performance levels. In addition, report content include strategies

for using training to achieve or restore performance to the desired level, priority

rankings and an assortment of facts about each strategy.

The needs assessment process ends when a decision is made by management to

implement suggested training strategies. This decision, in turn, sets into motion the

mobilization of resources to perform the training and evaluate the training results.

Typical topics of employee training:

Communications

Computer skills

Customer service

Sexual harassment

Ethics

Human relations

Quality incentives

Safety

TRAINING METHODS:

Three type of training method used in SCIL that are;

I. ON-THE-JOB TRAINING:

On-job training (OJT) involves conducting training at a trainee’s regular workstation. This is

the most common form of training; most employees receive at least some training and

coaching on the job. The main benefit of OJT is an employee in their own working environment,

with equipment they are familiar with and people they know can help they gain direct

experience to a standard approved by the employer. It includes,

1-Job Instruction Training:

In this training type the, sequence of instructional procedures used by the trainer to train

employees while they work in their assigned job.

JIT Process

Observe work processes

Brainstorm improvements

Analyze options

Implement improvements

Evaluate results and make adjustments

2-Job Rotation:

During this assignment, the trainee is supervised by a department employee, usually a

supervisor, who is responsible for orienting, training and evaluating the trainee. Throughout the

training cycle the trainee is expected to learn about how each department functions including

roles, policies and procedures.

3-Coaching and Monitoring:

Coaching method is used between an employ and his supervisor and focuses on examine

employee performance and taking actions to maintain effective performance and correct

performance problems. Monitoring a senior manager is paired with a more junior employee for

the purpose of giving support, helping the employee learn the ropes, and preparing the

employee for increasing responsibility.

II. CLASSROOM TRAINING APPROACHES:

Classroom approaches conducted outside of the normal work setting, such as the cafeteria

or a meeting room. Classroom setting permits the use of the variety of training techniques such

as video, lecture, discussion, role playing. It includes,

Lecture

Discussion

Audiovisual Media

Experimental Methods

Classroom-based Computer-Based Training

III. 3. COMPUTER AIDED INSTRUCTIONAL TRAINING:

Third method of training is computer aided instructional training, subcategory of

computer based training. It includes guided drill and practice exercises, computer visualization

of complex objects, and computer-facilitated communication between students and teachers.

MANAGING CAREERS:

Career planning is an ongoing process through which an individual sets career goals and

identifies the means to achieve them. The process by which individuals plan their life’s work is

referred to as career planning. Through career planning, a person evaluates his or her own

abilities and interests, considers alternative career opportunities, establishes career goals, and

plans practical developmental activities.

In SCIL employees are suggested according to their career goals and their skills and

qualifications. Usually, career planning programs are expected to achieve one or more of the

following objectives:

More effective development of available talent.

Self-appraisal opportunities for employees considering new or nontraditional career

paths.

More efficient development of human resources within and among divisions and/or

geographic locations.

Satisfaction of employees’ personal development needs

Improvement of performance through on-the-job training experiences provided by

horizontal and vertical career moves.

Increased employee loyalty and motivation, leading to decreased turnover.

A method of determining training and development needs.

Employee Career Planning:

SCIL provides good career planning to its employees. The career counseling is provided through

different means

I. Discussions with Knowledgeable Individuals

SCIL has good very experienced and skilled management which provides excellent career

development techniques and knowledge to their employees. This is not a formal type of

discussion. Experienced HR management also share its experiences with the employees for

their development.

II. Performance Appraisal System

As performance appraisal does not have direct link with promotions and salaries practically

however it provides excellent opportunity to employees to see where they are in terms of their

performance. After having knowledge of performance appraisal they can set their targets and

can work to achieve the best performance.

III. Workshops

As SCIL is pioneer of some very useful social development techniques, SCIL believes in career

development through workshops. Workshops are arranged on different topics by SCIL

management for their employees. Sometimes other organizations are also invited to participate

in workshops which provide good opportunity for experience sharing and organizational

motivation.

PERFORMANCE MANAGEMENT SYSTEM

Performance Management has always been core issue to be discussed within any organization.

A performance management system consists of the processes used to identify, encourage,

measure, evaluate, improve, and reward employee performance at work.

Sitara Chemicals Incorporation Ltd always encourages its employees to achieve high level of

excellence i.e. in

Quality of output

Timeliness of output

Presence at work

Cooperativeness

Efficiency

Effectiveness

These excellences are appreciated by the management at their monthly meetings with their

employees and in the form of certificates, cash and shield awards. However all these activities

are qualitative in nature. The activities of employees are recorded on the basis of observation

and performance appraisals made by the management every year and time to time.

PERFORMANCE STANDARDS AND EXPECTATIONS:

Usually following determinants are considered for performance Management;

I. Willingness to perform:

If employee is performing tasks and responsibilities in the organization with willingness

level of the performance will be high and will be up to the standards.

II. Capacity to Perform:

If the basic qualifications abilities and skills required performing specific tasks are

possessed by the employees the level of performance will be in accordance with the set

standards and vice versa.

III. Opportunity to Perform:

Favorable circumstances and opportunities to perform the challenging tasks which are

more contributory towards achievement of the organization’s mission and objective can

be reasons to have more effective performance from employees.

HOW PERFORMANCE REPORTS ARE WRITTEN IN SCIL?

Performance & appraisal are two sides of a coin. Immediate officer appraises performance. For

the appraisal of the performance, there is a Performa, which is filled by immediate officer. This

Performa is named as (PPE) Performance Planning & Evaluation.

There are seven sections in this form. The particulars of the candidates are written on the top

of the form.

Performance Plan:

In this section, some standards and targets along with time frame are given. The target given in

SCIL Limited is known as “SMART”.

S= Specific

M= Measure able

A= Attainable

R= Realistic

T= Time frame

Performance Evaluation:

In this section, the net results of the standards & targets given in section # 1 is evaluated or

checked whether the person can achieve the targets in the required time frame or not.

Competency Dimension:

In this section, different behavioral indicators, in accordance with the performance are

checked. These indicators are as follows:

Communication Skills

Team Player

Self-Confidence

Leadership Qualities

Development Orientation

Business Knowledge

Performance Evaluation Results:

In this section, there are two parts.

Part A Section # 2 score (%)

Part B Section # 3 score (%)

Total score of Part A and Part B are calculated here.

Strengths & Limitations:

In this section, the strengths and limitations of the trainee or subordinate is written. This is all

up to the immediate officer.

Performance Improvement Plan:

In this section, the immediate manager gives some suggestions and recommendations.

Comments:

The employee/ subordinate and the manager give their comments. Employee comments may

be how he found the work place? Who supported him? And the manager gives the comments

according to his observation. In the last they put their signatures with date.

EMPLOYEES BENEFITS, REWARDS AND PAY PLANS:

The SCIL has given many benefits to its employees. A number of facilities are provided by SCIL for

the training and welfare of its employees. Few projects are also working in this context.

INTRINSIC REWARDS& EXTRINSIC REWARDS:

Relating Intrinsic rewards SCIL insured that their employees feel pride in working there in SCIL

because of their recognition on the behalf of SCIL, feelings of accomplishment by giving them

appreciation, And by encouraging them to work as a member of a great team. Intrinsic awards

also include more responsibility to the employees. And Extrinsic rewards includes the rewards

by management by paying them big salaries, and promotions of employees according to their

work skills and other benefits given to them.

FINANCIAL BENEFITS:

Market competitive salary:

Sitara chemicals industries limited provide market competitive salary to its workers.

10-C bonus:

This bonus is exclusively for exclusively for workers.

Accommodations:

SCIL provides accommodation to its employees. These accommodations include family

accommodations as well as bachelor accommodations.

Transport:

Scil provides transport facility to its employees. Its transport facility is also available for

local inhabitants. There are also local routes for the habitants of Faisalabad and

Shekhupura.

Social security coverage:

Social Security is applicable to all workers of scil who are drawing up to Rs. 2800. Medical

facilities are also given to the employees and their families. Medical facilities are also

available in the factory's premises. Employees receive free medical treatments from the

Aziz Fatima hospital.

Pension:

There are two pension categories in this organization. One is for the management staff and

the other for the worker employees.

o The first category contributes 13% of their salary whereas the other category

contributes 4.5% of their salary. The amount is deposited in the government

securities. The employees are entitled to receive this amount after 58 years of age.

The employee gets 100% pension up to his life. After employee death his widow

gets 50% of pension amount. After wife death the children can take 20% of pension

until he is less than 21 years.

Annual Leaves

An employee after completion of one year of service will be entitled to the following

leaves:

a). Casual Leaves 10 days with pay

b). Sick Leaves 14 days with pay

c). Privilege Leaves 10 days with pay

Group Insurance

Company’s policy is to have its employees safe and sound financially. The company insures

so all the workers and the premium amounts are also paid by the company.

AZIZ FATIMA TRUST HOSPITAL

Aziz Fatima trust hospital provides free medical and health facilities to employees and their

families.

NON FINANCIAL BENEFITS:

Sitara Institute of Management & Technology

To maintain the technical level of the employees, an institute naming “Sitara Institute of

Management & Technology” was established. This institute trains about 200 technicians

annually. The duration of the course is two years and training is provided in different fields.

After passing out from the institute the technicians are free to seek job in any industry of

their choice.

Aziz Fatimah Girls High School:

Preference is given to the children of the employees of scil. The students are provided free

uniforms, subsidized books, food and milk and a scholarship.

Mosque

One beautiful mosque is in the factory area so that everybody can offer his prayers and

there is large number of employees who uses this facility.

WORK ENVIRONMENT

All Employees are provided with hygienic work environment.

SAFETY EQUIPMENT (PPEs)

Technical workers who work in production plants are provided with personal protection

equipment to ensure their health safety.

HSE DEPARTMENT:

There is HSE (HEALTH AND SAFETY) department in SCIL that provides “FIRST AID” to the

workers that are affected by poisonous gases.

SAFTY TRAINING:

Safety training is also conducted by HSE department. In this training employees are

ensured that how to protect themselves in emergency circumstances.

ENSURING A SAFE AND HEALTHY WORKENVIRONMENT:

For Stara Chemicals a clean, healthy and safe atmosphere is the most important and highly

motivating factor, which will play role in establishing the concept of employee involvement and

job satisfaction.

In sitara there is job rotation after every two months of each employee who works at chemical

manufacturing plant.

Keeping in mind the prevailing knowledge of the industry and of specific hazards, the Company

is committed to the possible extend for providing a safe and healthy working environment.

1. The Company is providing and implementing safe systems of work with a view to

minimizing the incidence of injury and property damage accidents.

2. The Company ensures that employees are aware of their responsibilities in respect of

health and safety matters.

3. The Company will encourage the use of personal protective equipment, safety

instructions/posters, safe handling of material and use of safety

instructions/procedures.

4. The Company provides safety training for all employees including new appointees.

5. The Company have design system and maintain proper equipment for fire prevention,

fire protection and firefighting, and as well as for evacuation in case of emergency.

6. The Company is providing for use of all personnel clean bathrooms, access to potable

water and sanitary facilities for food storage.

7. The Company is making this health & safety policy and its objectives available to any

interested party upon request.

The Smoke-Free Environment:

Any kind of smoking is not allowed inside the building. People have to go in open air to fulfill

their desires.

STRESS:

Stress is a condition arising from the interacting of people and their jobs and characterized by

changes within people, that forces them to devote their normal function.

STRESS FACTORS AND STRESS CONSEQUENCES:

REMEDIES OF STRESS:

The following are techniques used by SCIL to combat stress:

1. The need or counseling professionals, personnel’s and educational specialists and

people outside the institutions may conduct case counseling through interviews.

Needs

Capabilities

Personalities

WORK FACTORS

JOB STRESS

Behavioral

Psychological

Medical Problem

Decrease in Performance

Moral and Motivation

Increased Turnover and Absenteeism

Family

Economics Personal affairs

POTENTIAL CONSEQUENCES

2. Workshops and educational activities designed to assist individual in establishing action

plans for change.

3. Organizational development and job design and developmental programs armed at

restructuring work for improved personal growth and enhanced job satisfactions.

4. Monitor activities to discover any condition that unnecessarily lead to stress.

5. Improve job and work design to avoid stressful working conditions e.g. high noise level.

In actual words, SCIL has well developed and recognized Quality Management Systems as well

as Environmental Management Systems. SCIL has following certifications in QMS and EMS from

SGS under the authority of UKAS Quality Management.

ISO 9001:2008

ISO 14001:2004

LABOR RELATIONS AND COLLECTIVE BARGAINING:

To keep good and friendly working atmosphere aiming healthy to-wards production is

necessary to have cordial relation with workers, whenever an issue, problem, a grievance or

misunderstanding is developed between management and unionized staff it is taken over by

understanding, reforming and stress relieving manner through a specifies process. The

industrial relations officer follows the industrial relations ordinance 1969. Labor Union is an

organization of workers, acting collectively, seeking to promote and protect its mutual interests

through collective bargaining with Organization. The right to association is guaranteed by

Article 3 of the IRO 2002. In Stara chemical there is a labor union and the functions of this labor

union are to negotiate with the management for

Wages and benefits

Greater job security

Work rules

Work hours

Terms and conditions of employment

LABOR LEGISLATION:

Article 17 provides for a fundamental right to exercise the freedom of association and the

right to form unions;

CBA UNION:

CBA stands for Collective Bargaining Agents as the provision of law (IR Ordinance 1969)

provides workers the freedom to form their own union that can talk to the management on

their behalf. If union work in a friendly supporting atmosphere they can rise to sky. Elections

are held after one year to determine the authority of a union. In SCIL there is one labor

federation.

MANAGEMENT AND UNION AGREEMENT:

The CBA and management sign agreement regarding the working conditions, wages, and other

affairs likely. The validity of an agreement is 12 month after it a new is signed, the stepwise

procedure is following:

1. Informal character of demand.

2. Formal character of demand.

3. Lateral recognition.

4. If fails conciliation.

5. If fails judicial process start with NIRC. (National Industrial Relation Commission), which is

federal labor institution with powers equal to trial court or lower court of labor while the

while the process is speedy and steadfast.

6. After conciliator another way is arbitrator who is usually a retire judge appointed by the

Govt.

7. Finally agreement reached which is a 12 months agreement with a fact from expiry of

previous agreements.

Copies of agreement are sent to provincial and central labor departments. There are two-way

communications methods in SCIL which means that the problems and issues are discussed open

heartedly from both sides – management and labor.

RECOMMENDATIONS

Organizations big or small profit or unprofitable have problems and there are always chances of

improvements. This is also the condition for Sitara Chemicals Industries Limited. It is no doubt

that the Sitara Chemicals Industries Ltd has very effective and efficient human resource

department. On the basis of our study during we recommend following steps should be taken

by Sitara Chemicals Industries Ltd to eliminate the weaknesses of the organization.

Sitara Chemicals Industries Ltd must look for skilled and experienced staff for its HR

department.

Sitara Chemicals Industries Ltd must involve employees in its decision making.

Internal and external candidates should be given proper importance while selecting for

a new position.

Sitara Chemicals Industries Ltd must have to increase the basic salaries of its employees

to increases their motivation.

Compensations must be related with performance appraisal. Because at present

compensations are not related with the appraisal.

Employees are allowed with the access to their personal.

HR department must conduct a salary survey to make its compensation plan more

effective and efficient as compared to its competitors in the region. Because there is not

very much retention rate in Sitara Chemicals Industries Ltd.

There must be same pay structure for all employees working on same position. There

should be specific pay policy.

HR department must be headed by an experienced and skilled HR manager so that

proper HR policies can be developed and implemented and SAITH CULTURE should be

ended.

There is a lack of reward system for the management. Mostly rewards are exclusively for

physical workers.

There is no female manager in human resource department. Although females have

better judging abilities than males.

There should be more fringe benefits for the employees taking into consideration their

devotion skill and experience. This higher level would make the employees more

efficient and effective.

CONCLUSION & REFERENCES AND SOURCES:

SITARA GROUP OF INDUSTRIES is one of the renowned industrial groups of

Pakistan and its Human Resource is one of the best human resource

departments. Defining missions to selecting the employees, its most of the

process are excellent. But still there is some room for improvement in

compensation system, and employment planning.

REFRANCES AND SOURCES

We collected all information about the Sitara Chemicals Industries Limited (SCIL) for

making HR projoect. The references & Source of information are as follows:

Persons:

Mr. Tariq Mahmood's (SENIOR MANAGER HR)

Mr. Ahmad Baqa

Mr. Ghulam Mustafa

Web-sources:

http://www.sitarachemmicals.com/