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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 • Billion from textiles 14 • 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 • Employees 9000 • 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

Hazara University Haripur Campus

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 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

Nishat Sectors Textile-1 Cement-2 Banking-3 Power 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


Weaving :Operationally divided into :NML Faisalabad Machinery: Capacity:

188 Sulzer Ruti Looms 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 stateof-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


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 Department Human 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 Resource Department

&Recruitment Selection

& Training Development


&Retention Motivation

: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

:Internal Recruitment-1 :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

External Recruitment-2 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

:Advertising-1


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

:Casual Applications/Unsolicited Applications-2 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 Reception of Applicant-1 Preliminary Interview-2 Application Form-3 Tests-4 Interview-5 Background-6 Preliminary screening by HR Department-7 Final selection by line managers-8 Medical Examination-9 Placement on the Job-10

:Reception of Applicant-1 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

:Preliminary Interview-2


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 :Application Form-3 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 :Test-4 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 Aptitude Test-1 Intelligence Tests-2 Personality Tests-3 The most frequent method used to take the tests is computer based tests but written tests .are also taken rarely in Nishat Mills :Interview -5 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 General Manager-1 HR Manager-2 Head of the Department-3

: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

• (etc.)

Educational Background

•

Skills And Competency

:Background-6


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

:Preliminary screening by HR Department-7 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 :Final selection by line manager-8 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 :Medical Examination-9 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 :Placement on the Job-10 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


Successive hurdles approach The Nishat Mills use the successive hurdle approach in the selection process which involves the screening out of candidates at each stage of the selection process

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.

Retention and Motivation Nishat Mills use retention 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 employ 

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 Experience-1 Performance-2 

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

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 Effect Recency effect Hazara University Haripur Campus

Retrenchment The Nishat Mills always used to expand its business since its beginning and it has never been into such a downsizing of its business which involves retrenchment of its existing employees. Such special features differentiate Nishat Mills from its .competitors

Questions asked from HR Manager ?What is your recruitment policy ?What kind of source for advertisement you prefer ?Do you prefer internal or external recruitment for executive level job positions ?Do you use “job posting” why Do you advertise jobconduct after vacancy ?Any “honesty test”for you or not or wait for a no of vacant positions and ?than hire the whole lot ?Do you take written or computer based test ?Do you outsource your recruitment process ?How much importance you give to personality, IQ level and special ability ?If yes, which company does u prefer ?Any medical examination of selected employees you conduct ?Do you give jobs on EEO basis or not ?Who is the final authority to select an employee ?If yes, what type of policy you have ?Do you use “performance appraisal” to evaluate performance of your employees ?Do you apply University recruitment? If yes, what result you face ?Do you communicate performance appraisal directly to related employee ?Which type of interview you conduct ?How you motivate your employees What is the percentage or importance of test and interview in your selection ?process Hazara University Haripur Campus ?What type of environment you provide to interview

?What type of working environment you provide to your employees ?Any “honesty test” you conduct or not (What is the preferred basis for promotion? (Experience, Age, Performance ?Do you take written or computer based test ?In which circumstances you prefer cash or non cash rewards for employees ?How much importance you give to personality, IQ level and special ability ?Any additional benefit such as pick & drop or medical facility you give ?Any medical examination of selected employees you conduct ?Do you give any increment on yearly basis ?Who is the final authority to select an employee ?What are the rules and regulations for retirement ?Do you use “performance appraisal” to evaluate performance of your employees ?What is the union role in your organization ?Do old employees to retain or preferdirectly employees on theemployee bad of performance ?Doyou youprefer communicate performance appraisal to related ?How you motivate your employees ?What type of working environment you provide to your employees (What is the preferred basis for promotion? (Experience, Age, Performance ?In which circumstances you prefer cash or non cash rewards for employees ?Any additional benefit such as pick & drop or medical facility you give ?Do you give any increment on yearly basis ?What are the rules and regulations for retirement ?What is the union role in your organization Hazara University Do you prefer old employees to retain or prefer employees on the bad of Haripur Campus ?performance

stions Asked from employeeseQu ?Do you think that companies apply EEO Yes No ?Were you satisfied with the company advertisement Yes No ?Were the best candidates attracted through advertisement Yes No ?Was initial screening through based on merit Yes No Was you selected by this organization directly or selected by another ?organization Directly By other organization ?How many interviewers were present during interview 2 1 More than 2 ?Do you think that your appearance has any impact on selection Yes No ?What type of working environment given to you by employer Good Average Bad ?Any Motivation by employer By Promotion By Bonus By Increment Hazara This information is obtained only for University academic purpose and will be kept* Campus .Haripur confidential

?What is the preferred factor for promotion Age Experience Performance ?Performance Appraisal is communicated with employees Yes No ?The way in which performance appraisal is communicated Direct discussion Indirect ?Any old age benefit given by organization Yes No ?Any unfair promotion in your organization Yes No ?Are you satisfied with your pay amount Yes No Are you satisfied with the facilities providing by organizations? (Medical, (.Allowances etc Yes No ?The position at which you are; you are promoted to this position Internally Externally Any predetermined rules and regulations for retirement were communicated with ?you Yes No Hazara University Haripur Campus ?Are you informed about retirement before time Yes No

Emloyees Interview Result These Questions has been asked from 10 different employees ?Do you think that companies apply EEO (Yes ( 10 ) No (0 ?Were you satisfied with the company advertisement (Yes (8) No( 2 ?Were the best candidates attracted through advertisement (Yes (6) No (4 ?Was initial screening through based on merit (Yes (10) No (0 ?Was you selected by this organization directly or selected by another organization (Directly(10) By other organization (0


?How many interviewers were present during interview (7) 2 (3) 1 More than 2 ?Do you think that your appearance has any impact on selection (Yes (9) No (1 ?What type of working environment given to you by employer Good (10) Average Bad ?Any Motivation by employer By Promotion (5) (By Increment (4)

By Bonus

All Of Above (1

?What is the preferred factor for promotion (Age Experience (5 (Performance (5 ?Performance Appraisal is communicated with employees (Yes (8) No(2 ?The way in which performance appraisal is communicated (Direct discussion (0) Indirect (10 ?Any old age benefit given by organization (Yes (10) No (0


?Any unfair promotion in your organization (Yes (2) No (8 ?Are you satisfied with your pay amount (Yes (10) No (0 (.Are you satisfied with the facilities provide by organizations? (Medical, Allowances etc (Yes (10) No (0 ?The position at which you are; you are promoted to this position (Internally (10) Externally (0 ?Any predetermined rules and regulations for retirement were communicated with you (Yes (10) No (0 ?Are you informed about retirement before time (Yes (10) No (0

Graphical Representation of Employee Interview Result


10 9 8 7 6 Employees 5 4 3 2 1 0

Yes No

1

2

3 4

5 6

7

8 9 10 11 12

Questions

Criticism The HR Department of Nishat is very strong and the overall performance of the Nishat HR Department is very good but some weaknesses also lies which we have found while writing this report .Nishat use the no firing concept for employees but they use the training, demotion and job rotation of employees if their


performance is below average which is not in the favor of the organization. Other problem lies when company do not out source their external recruitment process and do not give chance to specialized firms to hire best employees while the banking sector of Nishat Group uses only outsourcing in external recruitment process. The Nishat Mills hire its old employees after their retirement which is a hurdle in the development and progress of new employees.Performance evaluation result is not directly discussed with employees and an indirect way is choosen for this purpose due to which gap is there between management and emloyees.

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 company 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 up-to-date with their both negative and positive aspects. This can be done by arranging meetings etc.


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