nishat group final

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Acknowledgement We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete this report and make a material contribution towards the deep oceans of knowledge . First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of report . We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the Prof. Mehroo Humayun who taught us “Human Resource Management” with heart and also gave a guideline to this report. It would be an honor for us to thank Mr.Nadeem Anjum, Human Resource Manager of Nishat

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Acknowledgement

We have the pearl of our eyes to admire blessing of the compassionate and

omnipotent because the words are bound, knowledge is limited and time is short to

express His dignity. It is one of the infinite blessings of almighty ALLAH that He

bestowed us with potential and ability to complete this report and make a material

contribution towards the deep oceans of knowledge.

First we avail this opportunity to bow our head before ALLAH almighty in humility

who given us the wisdom and perseverance for completing this piece of report .

We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch. We

feel highly privilege to ascribe the most and ever burning flame of my gratitude and

deep scene of devotion to the Prof. Mehroo Humayun who taught us “Human

Resource Management” with heart and also gave a guideline to this report. It would

be an honor for us to thank Mr.Nadeem Anjum, Human Resource Manager of Nishat

Mills LTD and Mr.Khalid Mahmood Chohan Company Secretary for their nice

and cooperative behavior .

Table of Contents

Serial No. Topics Pages

1 Chairman Message 3

2 Company Profile 4

3 Introduction 5

4 Mission & Vision Statement 6

5 Organizational Structure 7

6 Nishat textile 8-9

7 HUMAN RESOURCE MANAGEMENT 10-11

8 HR In Nishat; Classification 12-13

Recruitment Process 15

Job Analysis 15

Selection Process 19

Training and Development 23

Retention and Motivation 25

9 Performance Appraisal 26

10 Retrenchement 26

11 Questionnaire for HR Manager 27-28

12 Questionnaire for Employees 29-30

13 Result of Employees Interviews 31-32

14 interview 33

15 Criticism 34

16 Recommendations 35

17 Appendix

Chairman's Message

We continue to strive to be a better group today than what we were yesterday, for our

clients, for our shareholders, for our investors, for the environment, for the

community and for our employees, for it is with them that we have achieved what we

have. It is with them that we will continue to surpass our past achievements.

Mian Mohammad Mansha

Board of Directors: Mrs. Naz Mansha (Chief Executive)

Mian Raza Mansha

Mian Hassan Mansha

Mr.Muhammad Nawaz Tishna (NIT)

Mr. Faisal Ehsan Elahi

Mr. Khalid Qadeer Qureshi (Chief Financial Officer)

Mr. Muhammad Azam

Rana Muhammad Mushtaq

Company Secretary: Mr. Khalid Mahmood chohan

Mills: Nishatabad, Faisalabad (Spinning, Processing , Stitching Units(

12-K.M. Faisalabad Road (Weaving unit) Sheikhupura.

21-K.M Feroezpur Road, LHR (Stitching unit)

5 K.M Nishat Avenue (Weaving, Dyeing& Off 22 K.M Ferozepur Road, Finishing Unit (

Lahore .

20 K.M Sheikhupura Faisalabad (Spinning unit) Road, Ferozewatwan

Registered Office & Nishat House,Shares Department 53-A, Lawrence Road, Lahore

Tel: 042-6367812-16 Fax: 042-6367414

Head Office 7-Main Gulberg, Lahore.

Tel: 042-5716351-9 Fax: 042-5716349-50

E-mail: [email protected] Website: www.nishatmills.com

Liaison Office 1st Floor, Karachi Chambers,

Hasrat Mohani Road, Karachi . Tel: 021-2414721-23

Fax: 021-2412936

Nishat Group

Nishat is playing a significant role in the private sector by adding value to cotton and

the cotton based economy, Nishat Group ranks among the top five business houses in

Pakistan in terms of sales and assts

Nishat has grown from a cotton export house into the premier business group of

Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles,

Cement, Banking and Power Generation. Today, Nishat is considered to be at par with

multinationals operating locally in terms of its quality products and management

skills.

    •Annual turnover 17 billion Rupees

    •14 Billion from textiles

    •Earn foreign exchange US $ 236 million

    •Taxes and levi of 2,080 million Rupees annually

Nishat Mills Limited

Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern,

which was converted into private Limited company in 1959. In 1961, the company

went public and was listed on the Karachi Stock Exchange.

Flagship Company established in 1951

    •Most Modern, Biggest Composite unit of Pakistan

    •Professional and Client Oriented Marketing

    •Green Company

    •9000 Employees

    •ISO 9001 and IKO-TEX100 Certified

    •SA 8000 Certification currently in process.

NML started out as a weaving unit with 500 semi-automatic looms. Later on 10,000

spindles were added, laying the foundation of nation's biggest textile composite

project. NML today, has 177,000 spindles, 284 Sulzer shuttle-less looms and 244

TSUDAKOMA air jet looms. The company's production facilities comprise of

spinning weaving, processing, stitching and power generation.

All together NML has 17 Manufacturing units, each specializing in a specific product

rang. The spinning Division produces 120 Tons of yarn per day in a product range

from Ne 3 to Ne 120 using different cotton sources like Supima, Egyptian Giza and

Australian.

Nishat SectorsTextile-1Cement-2Banking-3Power Generation-4

NISHAT TEXTILES

Processing

An ISO 9001 certified unit, which is one of the largest

and most modern processing facilities of Pakistan. With

an array of custom-made machinery, it has the capacity

to produce 3 million meters of fabric /month. To ensure

that our customers get the very best we use more than

75% dyes and chemicals that are of European origin. To

maintain quality and international standards, an on-line

Quality department has been setup. The QC department

has the backing of a fully equipped Laboratory, which

scrutinizes the fabric process flow at all levels.

Spinning  

NML spinning is operationally organized into eight

spinning units, each with a distinctive product range and

capacity to keep a check on the quality standards. Every

cone undergoes inspection before packing to ensure that

our buyer gets only the best out of the lot. 

Spinning production capacity for both Cotton and

Blended

Yarns in 130 Tons / Day

WeavingOperationally divided into:

NML Faisalabad:

Machinery: 188 Sulzer Ruti Looms Capacity:  Approximate 2.1 Million Meters per

Month.

This Unit has been producing top quality fabrics for export as well as for the

consumption of our own processing unit. Awarded with ISO-9002 Certification, the

facility is highly regarded for the production standards and quality controls.

NML Sheikhupura:

NML Sheikhupura is one of the most advanced units in the country equipped with

state-of-the-art machinery and it is also awarded with ISO 9002 Certification. Future

Programs for the Unit include the purchase of Jacquard Looms, which will add to the

variety of product range that Nishat is offering to its customers.

Stitching

With an array of 500 modern new generation machines,

the stitching department has an average capacity to

process up to 1.3 million meters of fabric per month.

The product line is customized to manufacture products

of various styles and sizes according to the requirements

of our customers, wholesalers, retailers and contract

textile business.

Mission Statement

"To provide quality products to customers and explore new

markets to promote/expand sales of the company through good

governance and foster a sound and dynamic team, so as to

achieve optimum prices of products of the company for

sustainable and equitable growth and prosperity of the

company."

Vision Statement

"To transform the company into a modern and dynamic yarn,

cloth and processed cloth and finished product manufacturing

company with highly professionals and fully equipped to play a

meaningful role on sustainable basis in the economy of

Pakistan."

"To Transform the company into a modern and dynamic power

generating company with highly professionals and fully

equipped to play a meaningful role on sustainable basis in the

economy of Pakistan.”

Organizational Structure

Human Resource and Management

Introduction“The policies and practices involved in carrying out the

“People” or Human Resource aspects of a management

position, including recruiting, screening, training, rewarding,

and appraising"

HUMAN RESOURCE department exist to help people and organizations reach their

goals. Along the way, they face many challenges arising from the demands of the

employees, the organization, and society. The domestic and international

environments are particularly turbulent because of the growing diversity of the

workforce and the globalization of businesses. Challenges also result from ever

changing laws, especially laws that address the need for equal employment

opportunity. Within these constraints, the human resource department must contribute

to the organization's "bottom line" in ways that are

both ethical and socially responsible.

Purpose

The purpose of human resource management is to improve the productive

contribution of people to the organization in ways that are strategically, ethically, and

socially responsible. This purpose guides the study and practice of HR management,

which is also commonly called personnel management. The study of HR management

describes the HR-related efforts of operating managers and shows how personnel

professionals contribute to those efforts.

Objectives of HRM

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. More often objectives are not formally stated.

Either way, they guide Hr function in practice .

Organizational Objective

To recognize that 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. For example, NISHAT HR department found that it could enhance it

contribution to the organization through sophisticated information systems that

allowed the department to cut #35 million a year from its budget. Simply stated, an

HR department exists to serve the rest of the organization.

Functional Objective

To maintain the department's contribution at a level appropriate to the

organization's needs. Resources are wasted when HR management is more or less

sophisticated than the organization demands. Realizing that the HR department had

grown too large, NISHAT changed its ratio of HR staff members to employees from 1

per 53 down to 1 per 75 without violating the company's long-standing "no-layoffs"

policy ."

Role of HR DepartmentHuman Resource department play a very important role in Nishat Mills LTD. New

talent has a thirst for opportunity and that they are seeking such jobs which enhance

there capabilities and to gain some experience. Due to these facts the HR department

Of Nishat is looking for these kinds of people who want to excel in life and are highly

motivated to achieve some goals. The HR department of Nishat is working day and

night to make this Organization a better organization by hiring people who are self

motivated and there main aim is to make the company more profitable.

JOBS OF HRM

Conducting job analysis

Planning needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Appraising performance

HRM in Nishat Mills

• Employing over 9000 people.

• Lowest Employee Turnover.

• Seeks to fulfill the highest practical degree in

  administering its welfare and compensation program.

• Apprenticeship and other training schemes at all levels.

• To obtain, manage, develop, motivate and gain the

  commitment of company's key resource- the people

  who work in and for it.

• To develop a positive corporate culture to promote

  commitment to excellence and quality through out

  the company.

• To identify training needs and provide required training

  to all categories of employees.

• To make best use of the skills and abilities of all those

  employed in the organization.

• To ensure that the company meets its social and legal

  responsibilities towards its employees, with particular

  regard to the conditions of employment, quality of

  working life provided for them and the need to

  promote environment, occupational health and safety.

• To ensure industrial peace and harmony through

  excellent employee relations to achieve optimum level of

  employee, productivity and to contribute towards

  company’s aimed quality standards.

Classification of HR Department in NISHAT

Human ResourceDepartment

Recruitment& Selection

Compensation and Benefits

Training & Development

Responsibilities of HR Manager:

Following are the responsibilities of HR Manager in Nishat Mills-:

Recruitment And Selection

Policy Making

Retention Program

Improve Working Relation Of Employees

Competitive Advantages:

Nishat Mills has following competitive advantages over its competitors:

Strong Pay Structure

Retention Program

No Firing

After retirement contract basis job

Recruitment Process

"The Process of seeking and attracting a pool of qualified

applicants from candidates for job vacancies can be selected."

Recruitment Policy

An organization's recruitment policy provides the framework for recruiting action and

reflects the organization's recruitment objectives. It details the overriding principles to

be followed by management in general and by HR manager in particular.

In Nishat Mills the recruitment process starts when a there is a vacancy and employee

is required. The job requirement is forwarded to the HR Department by the head of

the particular department. Hr department then use two approaches to hire the

employee internal recruitment and external recruitment.

Job Analysis“The procedure for determining the duties and skill

requirements of a job and the kind of person who should

be hired for it”

Nishat is one of the largest textile manufacturers in Pakistan having lots number of

different sectors o/departments working in it. It has many employees who are working

on different posts and are working hard according to their own capacity. Nishat Mills

conducted job analysis in order to hire new employees at every year.

This also enables management to have a better understanding of the jobs and duties

being performed at every level and also helps them in training the people who are

freshly recruited.

In job analysis, firstly we specified two pillars which are

Job description

Job specification.

Uses of Job Analysis Information

The information collected during the process of job analysis is used by the company

in taking decisions regarding affairs like:

Recruitment & Selection decisions

Compensation

Performance Appraisal

Training

Methods of Collecting Job Analysis Information

There are two methods of collecting Job Analysis Information-: Interviews Observation

1-Internal Recruitment:

Job Posting:

Advertising of job openings to current employees via bulletin boards,

newsletters, or personal letters. 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.

The first and foremost preference of Nishat Mills is to hire the employees through

internal recruitment and giving existing employees more chances to develop their

career. For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the

vacant seat.

Replacement charts :

A visual representation of which employee will replace the existing incumbent in a

designated position when it becomes vacant. In Nishat Mills replacement charts are

used rarely.

2-External Recruitment

To search the employee to fulfill the vacant seat outside the organization is called

external recruitment. HR Department can use various approaches to locate and attract

external candidates like Government agencies, private employment agencies,

recruiting consultants, executive search firms, and educational institutions .

Nishat Mills run the external recruitment campaign itself and do not use the other

sources like agencies and search firms .

Sources used for external job recruitment

Following are the some sources of Job Recruitment in Nishat Mills :

By Newspapers

By Website

By Universities

1-Advertising:

Advertisements are placed in various newspapers. More information about the

company and job specification is included in the ad to present some self-screening.

The advertisement is placed in Jhang and Din.

Nishat Mills use print media for advertisement because they think most of the people

don’t have knowledge about computer or internet and they can easily find job

advertisement in newspaper.

2-Casual Applications/Unsolicited Applications:

Unsolicited applications are also welcomed in Nishat Mills; they are not neglected as

whole. If candidate have excellent performances throughout his career he can be hired

or these applications can be used for future references.

University Recruitment:

Nishat Mills used the university recruitment only once in LUMS but the result was

not such a good and only one candidate was hired that time.

Equal Employment Opportunity (EEO):

Nishat Mills provides jobs on Equal employment opportunity as they do not

make any discrimination in job description .The Company provide Equal

Employment Opportunity is also mentioned in the job advertisement .

Selection Process

Following steps are followed in the selection process

1-Reception of Applicant

2-Preliminary Interview

3-Application Form

4-Tests

5-Interview

6-Background

7-Preliminary screening by HR Department

8-Final selection by line managers

9-Medical Examination

10-Placement on the Job

1-Reception of Applicant:

The importance of giving the applicant a favorable impression at this stage

cannot be overemphasized. Rudeness, disinterest or discrimination at reception may

cost the organization a good applicant and foster negative attitudes about the company

and its products.

Nishat Mills give high importance to the first step in selection process which is

reception of applicants. The staff makes such a friendly environment at this stage that

does not make any negative thinking about the company even if the candidate is

refused for further processing. The usually use the indirect way to inform candidate

about refusal.

2-Preliminary Interview:

In Nishat Mills preliminary or initial screening interview is used to check

quickly on language skills, qualifications, willingness to do shift work, union

membership and the like.

In Nishat Mills preliminary interview is typically brief and centered on very specific

job requirement. However has carried out in a courteous, non-discriminatory and

efficient way.

3-Application Form :

After preliminary interview or initial screening Nishat mills receives the applications

from the candidates who have cleared the initial screening step. The application form

of candidate is a valuable tool in screening out unqualified applicants.

The HR Manager considers the qualification, experience and other job related data

provided in application form.

4-Test:

In Nishat mills test is used to access the match between application and the job

requirement.

The most used types of test in Nishat Mills are following

1-Aptitude Test

2-Intelligence Tests

3-Personality Tests

The most frequent method used to take the tests is computer based tests but written

tests are also taken rarely in Nishat Mills.

5 -Interview:

There are three types of interviews take by the Nishat Mills

Initial Interview:

The initial screening interview is taken by the HR Manager. The only purpose

of initial screening interview is to access the language skills, qualifications,

willingness to do shift work.

Panel Interview:

In Nishat Mills the Panel interview is the next step for the candidates who

have successfully passed the tests. In Nishat Mills panel interview is taken by three

managers

1-General Manager

2-HR Manager

3-Head of the Department

Unstructured Interview:

Nishat Mills do not use a predetermined outlines or questions to be asked from

candidate but the take the unstructured interview and interviewer can ask anything

which he thinks is necessary.

Criteria for Selecting Candidate in interview:

Following is the criteria for selecting candidates in Nishat Mills based on:

Communication Skills

Present Personality

Educational Background (etc.)

Skills And Competency

6-Background:

After interview the Nishat Mills HR Department staff checks the backgrounds of the

successful candidates through the references provided by them. The background is

investigated to ensure that candidate have a fair character and is not involve in any

criminal activity.

7-Preliminary screening by HR Department:

HR Department completes all the works assigned to it and finally do a preliminary

screening. This screening is based on the overall results of the candidates. A list of

successful candidates is made and the maximum no of toppers are screened as per

required by the head of department. The list of selected candidates is than forwarded

to the particular Head of the Department.

8-Final selection by line manager:

The list of selected candidates by HR Manager of Nishat Mills is given to the Head of

the particular department and now Head of the department is the final authority to

select the candidate.

9-Medical Examination:

After the candidates have been selected by the head of department, medical

examination of the selected candidates is taken by Dr. of the Nishat Mills. This is a

check to ensure that employees do not have any contagious disease and to save other

employees from this disease.

10-Placement on the Job:

After passing each and every selection step Nishat Mills the successful candidates are

given the job letter which indicated their job title, work timing, starting date and

salary package .

Training and Development

Training

Training is an activity that results in learning .it seems important than to consider

what learning is and what trainers can do to positively influence it. There is

considerable disagreement over which theory best explains how learning occurs.

This is however consensus on the definition of learning and the goals of learning

process

Methods of training

The Nishat Mills adopts many different training programs for enhancing the skills of

its employee. In Nishat Mills following methods are used for employee training

On job training

Off the job training

On Job Training:

Making teams of new employees with a few old specialized Employees.

Acquaintance with day to day procedures

Contribution to overall productivity.

Lower cost

Lower Time

Off Job Training

• In-house training ,done at least once a year

• Specialist trainers are hired

• Provide a proper learning environment to the employees

For employee training and development to be successful, Nishat Mills do following

things:

They provide a well-crafted job description- it is the foundation upon which

employee training and development activities are built

Provide training required by employees to meet the basic competencies for the

job. This is usually the supervisor's responsibility

Develop a good understanding of the knowledge, skills, and abilities that the

organization will need in the future. What are the long-term goals of the

organization and what are the implications of these goals for employee

development? Share this knowledge with staff.

Look for learning opportunities in every-day activity. Was there an incident

with a client that everyone could learn from? Is there a new government report

with implications for the organization?

Explain the employee development process and encourage staff to develop

individual development plans.

Support staff when they identify learning activities that make them an asset to

the organization both now and in the future.

In the development process Nishat aligns the interest and skills with the need of

organization. It means carrier must be managed strategically so the skills demanded

by the organization’s strategic business objectives are understood and a work force

with the matching profile of skills is developed.

Performance Appraisal

“Performance appraisal concerned with determining how well

employees are doing, communicating that information to

employees and establishing a plan for performance improvement

The jobs are evaluated on yearly basis under superior evaluation method. The

competent employees are rewarded in shape of promotions, bonus, increments and

annual holidays. The results of an appraisal can be used to identify areas for further

development of the employee.

The method used to evaluate employee’s performance consists of 20-25 questions

about the behavior of the employee, and then on the basis of these answers personality

of the employee is judged.

There are two possible sources of errors of performance evaluation in Nishat

Halo EffectRecency effect

Compensation and Benefits System

Nishat Mills use compensation process in which Nishat Mills wants to satisfy the

individual need of employees and to make the employees work with the organization.

The company use cash and non cash rewards to motivate its employees.

The company uses the following ways to retain the employee

Promotion

Promotion is direct shift only to the next level from the current grade, the

Employee’s performance is evaluated and if his performance is above average he is

given promotion.

In Nishat Two things are counted to give promotion

1-Experience

2-Performance

Increments

The company decides at the end of the financial year, according to its financial

condition, whether increments should be given or not. Once the increment is

decided, it is effective from January of each calendar year .

Free transport

Nishat Mills provide free transport to local employee and also to their children for

school

Medical facility

Nishat Mills provide free medical facility to workers depending upon the

position/rank of the employee.

Free housing

They give the facility of free accommodation for all level of employees, again the

facility is provided according to the position.

Recommendations

In Order to solve the problem the company must fire those

employees who are giving continuous poor performance in spite

of job rotation and training. Company must use external

recruitment firms like Personnel consultancies, Management

recruitment consultants, and Executive search firms to hire the

best employees as these companies are the expertise. The Nishat

Mills must not hire the retired employees on contract and give

more and more chances to the new talent.

Nishat Mills needs to improve its advertisement campaign as the

results shows that the comany advertisement process is not very

effective and the best candidates are not attracted.Company also

needs to motivate its employees in a better way like

bonus,commissions,promotions and increment at the same time.

The result of performance appraisal should be discussed directly

with the employees and should be kept uptodate with their both

negative and positive aspects.This can be done by arranging

meetings etc.s