nishat mills final hrm project.docx

2012

Final project of Human resource management

Submitted to: Sir Hamad Submitted by: Muhammad Azam 11452 Mohsin Ali 11453 Muhammad Amen 11455 Saba zulfiqar 11432 Hafiza Ayesha naz 11447

[ NISHAT NISHAT TEXTILE MILL LIMITED] LIMITED]

NISHAT TEXTILE MILL LIMITED

TABLE OF CONTENTS

1. COMPANY INFORMATIO N……………………………………… N……………………………………….. 3 2. HISTORY

BACKGROUND AND

INTRODUCTION…………………………………………….. INTRODUCTION…………………………………………….. 6 3. VISION OF THE COMPANY……………………………………… COMPANY……………………………………… 7 7 4. MISSION STATEMENT…………………………………………… STATEMENT…………………………………………… 7 7 5. HR POLICIES AND PRACTICES………………………………… PRACTICES ………………………………… 8 6. RECRUITMENT AND SELECTION………………………… SELECTION …………………………..… 13 7. TRAINING AND DEVELOPMENT………………………………. DEVELOPMENT………………………………. 20 8. PERFORMANCE APPRAISAL…………………………………… APPRAISAL…………………………………… 24 9. COMPENSATION AND BENEFITS……………………………... BENEFITS ……………………………... 28 10.CONCLUSION……………………………………………………. 10.CONCLUSION……………………………………………………. 32

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SUPERIOR UNIVERSITY RAIWIND ROAD LAHORE


COMPANY INFORMATION

BOARD OF DIRECTORS:

Mrs. Naz Mansha Chief Executive/Chairperson Mian Raza Mansha Mian Hassan Mansha Mr. Muhammad Nawaz Tishna (NIT) Mr. Faisal Ehsan Ellahi Mr. Khalid Qadeer Qureshi Chief Financial Officer Mr. Muhammad Azam Rana Muhammad Mushtaq AUDIT COMMITTEE:

Mr. Faisal Ehsan Ellahi Chairman/Member Mian Hassan Mansha Member Mr. Muhammad Azam Member COMPANY SECRETARY:

Mr. Khalid Mahmood Chohan Riaz Ahmad & Company Chartered Accountants LEGAL ADVISOR:

Mr. M. Aurangzeb Khan, Advocate, Chamber No. 6, District Court, Faisalabad. BANKERS TO THE COMPANY : 

ABN AMRO Bank

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Albaraka Islamic Bank B.S.C (E.C)

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Allied Bank of Pakistan Limited

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Askari Commercial Bank Limited

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Bank Alfalah Limited Page 3





Citibank N.A.

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Crescent Commercial Bank Ltd.

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Deutsche Bank

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Faysal Bank Limited

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Habib Bank Limited

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Habib Bank A.G. Zurich

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KASB Bank Limited

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Meezan Bank Limited

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National Bank of Pakistan



NIB Bank Limited

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PICIC Commercial Bank Limited

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Standard Chartered Bank



The Hong Kong & Shangai



Banking Corporation Limited



Union Bank Limited

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United Bank Limited

MILLS: 

Nishatabad, Faisalabad (Spinning, Processing, Stitching units & Power Plant)

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12 K.M. Faisalabad Road, (Weaving units & Power Plant) Sheikhupura.

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21 K.M. Ferozepur Road, Lahore. (Stitching unit)

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5 K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit

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Off 22 K.M. Ferozepur Road, Lahore. and Power Plant)

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

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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:

Ist Floor, Karachi Chambers, Hasrat Mohani Road, Karachi. Tel: 021-2414721-23 Fax: 021-2412936

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Back ground history and introduction of the company

NML mills limited 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, the only stock exchange in the country at that time. NML started out as weaving unit with 500 semi – automatic looms, later 10000 spindles were added, laying the foundation on nation’s biggest textiles composite project at Nishat mills limited Faisalabad

covering 98 acre of Landis providing all production process under one roof i.e. spi nni ng, wea vin g, pr oces sin g, stitching and power generation. When Pakistan came into being there was only 16 textile mills out of which only 12were in operation. It grew to 70 in 1957 as industrial development takes place. Now a day there are 596-textile mills out of which 442 are in operation. The export re ve nu e of textile industry contributes a large share to the GDP of Pakistan. Textiles Exports from Pakistan Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports. The firm has been exporting to the USA for many years, and has only recently started to export to EU countries. Nishat Mills Limited, the flagship company of the group was established in 1951. Its annual turnover for the year is over Rs.17 billion (US$ 283 million). NML with the production facility of 270,000 spindles, 740 looms and dyeing & printing capacity of 7 million meters (7.65 million yards) makes Nishat the largest composite textile set up in Pakistan. Nishat mills limited are the single largest textile composite unit in Pakistan. The company is a leading export of textile products having extensive spinning, weaving, dyeing, printing, finishing and stitching facilities at Faisalabad, Sheikhupura, and Ferozewatwan Lahore. NML is the flagship company of Nishat group one of the largest conglomerates with interest in the textile, cement and financial sector. The Nishat group families members are associated concerns collectively hold 47% of NML’s equity.

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NML’s products range is compressed and made ups. The proration of processed fabrics and

made ups in the total sales mix currently less than half, but this is steadily increasing. The company management team comprises highly qualified professionals and remains stable over the years. The strong management team ensures effective de regulation of functional responsibility across departments facilitating a smooth flow of operations.

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.

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CHAPTER: 1

HR POLICIES AND PRACTICES In NISHAT MILLS LIMITED

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HR Policies and Practices being followed by the Nishat mills limited Human resource department is the key department in any organization same is the case with Nishat textile mills limited Lahore. HR department has to look after all the important activities. It is responsible for the process of hiring, firing, training, development and all other related activities carried out. Human resource department is also responsible for the process of designing and evaluating the jobs and determining pay structure for the jobs.

JOB ANLYSIS Job Analysis

Job Description

Job Specification

In the job analysis, HR Department of Nishat mill play the key role in the job identification, respective duties and responsibilities. They systematically collect, evaluate, and organize the information about jobs.

JOB SPECIFICATION Once you are aware of the type of person you are looking for your job vacancy, you can design a "Job Specification" profile. In Nishat mill limited the job specification includes:

Qualification of employee Experience of employee Training or development needed for the particular job

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Personal attributes required for the job Interpersonal skills and communication skills.

JOB EVALUATION Job Evaluation is based on methods and practices of ordering jobs or positions with respect to their value or worth to the organization. According to Nishat textile mill limited following factors are considered important while making job evaluation wh ich is:

Complexity of the Job. How much Stress one can Bear. Available Budget for Compensation. Experience Required for the Job. Company Need for the Employee for that Job. Abilities required performing a Job.

METHOD USED FOR JOB EVALUATION According to Nishat mill limited the method used for Job Evaluation is as follows:

Classification Method Ranking Method Point Method

Nishat mill limited use Classification Method when an employee is performing well and has a chance to get promoted with the same position but at higher level.

On the other hand Nishat textile mills limited believes that there hierarchy is flat in nature. Due to which they consider that the pays varies according to the position of the

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Hierarchy. The top management will get more salary as compared to employees of middle management.

Methods for Collecting Job Analysis Information There are various ways to collect information on the duties, responsibilities and activities of job. In Nishat mills limited they use interview, questionnaire and observation. These methods are implemented as follow:

By the Interview In Nishat mills limited Human Resource Department conduct job analysis interview to find the competent information from the employee. The interview is mostly conducted by the employ time by time and analysis the job of the all the employee. That is difficult for the hr manger that he is conducting the interview from all the employ and then analysis the job of the employee.

By Observation Observation method is easy for the hr manger from the interview in this method the manger only look after or observe the entire employee within a short period of time. In Nishat mills limited some jobs are analyzed through direct observation of HR manager e.g. assembly line worker and accounting clerk.

Questionnaires In this procedure HR manager fill out questionnaire from employees to describe their job related duties and responsibilities. They use structured format for questionnaires and also use open ended questions.

Job descriptions

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After collecting information HR manager produce job description. Job description is written statement of what the worker actually does, how he or she does it, and what the job‟s working conditions are. In Nishat mills limited there is no standard format for writing a job description. However, most descriptions contain section that covers: To whom the employee is responsible. What are the Job Grade, title, and location of the job? Job Summary and duties. It briefly describes which are the duties of the employees, their responsibilities and brief introduction of the job. Working conditions. In this section of description, travel requirements and some other features of the job is described.

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CHAPTER: 2

RECRUITMENT & SELECTION

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Recruitment and selection Recruitment and Selection Process:

Employment

Recruiting:

Applicants

Use selection

planning &

Build a pool

complete

tools; tests to

forecasting

of candidates

application

screen-out

Candidate becomes employee

Director or department head interview final candidates to make

„Creating a pool of well qualified and talented candidates and choosing the best candidate from that pool.’

Recruitment is the process of finding and attracting capable applicants for employment. In the Nishat textile mills limited Lahore, obviously responsibility of recruitment lies on Personnel Department. They adopt the following procedure for recruitment. Nishat mill limited has standard a list of jobs that are filled in accordance with international standards. However these lists are not permanent and new jobs are added to it keeping in view the changing needs of the workforce. A new vacancy in Nishat textile mills limited may arise because of the need to replace the retiring staff, dismissed staff, promoted staff or replacing an employee on job rotation

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THE NEED OF THE RECRUITMENT

According to the Annual Human Resources Plan, concerned department manager requests the Personnel department to recruit the employees with adequate qualification and experience. Then the Personnel Department uses the following channels of recruitment.

Types of recruitment Internal recruitment Recruiting candidates in Nishat mills limited Human Resource Department first recruit the employees from the company. For this purpose they establish personal records and skill banks. These help them in finding competent employees. Internal sources of Nishat mills limited are

Job posting Rehiring

Job posting Job posting means given the higher post from the previous post to the employee that is good for the employee for the development of the career of the employee. In job posting Human Resource Department publicize the job to employees by posting it on company intranets or bulletin boards.

Rehiring rehiring means the company hire those employee who will leave the company and retire from the post of the company so the company hire those person that is good for the company due to those employee familiar with the company.

External Recruitment: External recruitment is a process in which the company gathering and attracting the persons from outside the company. For external recruitment the candidate fill the following conditions.

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No candidate under the age of eighteen will be considered. To avoid conflict of interest, hiring of close relations . However candidates falling in this category who have exceptionally good credentials may be considered. Hiring supervisors will need to explain in their assessment of the candidate their qualities that justify hiring. A final decision will rest with the concerned Divisional Head who will need to ensure that there is no conflict of interest. Human Resources will advise Department Heads on salary ranges to be offered to the applicant keeping internal and external equity in perspective. Following are some external sources through which candidates are recruit in Nishat mills limited:

Recruiting through internet Advertising Employment agencies Temporary agencies

Recruiting through internet Internet is very easy method for the external recruitment but that is costly for the company in which the company pay the employee agencies for the recruitment.In Nishat mills limited most of the time job ads are given on internet because today most of the people use internet. In this way they got relevant resume and many of which include the necessary experience for required post. They use many other sites for job ads like www.expatriates.com www.bayrozgar.com www.careerberg.com

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Employment agencies In Nishat mills limited recruitment is also made with some employment agencies in Pakistan. These agencies recruit some experienced jobs and managerial jobs. These employment agencies help the all the company those wanted to hire the persons and want to hire those people who are competent and having a great experience.

Application: Through application the candidate personally fill the application and send to the company for the post which is required b y the company. Applicants may apply online by registering with the web based recruitment portal. However, when considered for a specific po sition, they will be required to fill the standard application form of the Compa ny.

ADVERTISEMENT THROUGH NEWSPAPERS Jobs are also advertised through Newspapers of national repute. Advertising is an effective method of seeking recruits, since ads can reach a wider audience than employee referrals or unsolicited walk -INS, it is considered as better of the abo ve.

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SELECTION

Recruitment seeks to create a pool of suitable applicants. Once that Pool has been assembled, the selection process begins. In Nishat textile mills limited the selection process is a series of steps through which applicants pass. These are given in the following:

PRELIMINARY SCREENING In this stage, Personnel Department performs the function of short listing.

PROPER INTERVIEW After the short listing, proper interview is conducted by Personnel Manager in which general suitability of candidate is evaluated.

INTERVIEW FOR TECHNICAL SUITABILITY

In this stage, candidate's technical knowledge and experience is assessed by the concerned department's manager. The result of the interview is discussed with the Personnel Manager for further consideration. If the candidate passes this stage, then he/she is c alled the next stage.

FINAL INTERVIEW AND NEGOTIATIONS

This final interview is conducted by Personnel Mange r and two important areas are discussed.

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Negotiation on pay Working conditions and employment contract is also d iscussed

INVESTIGATION

Background of candidate is investigated by personnel department about the information‟s which the candidate has given.

FINAL SELECTION

After successfully completing all the stages he is finally selected for concern job. The selection process can be summarized in the following way.

Preliminary screening Initial interview Technical interview Final interview Background investigation

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CHAPTER 3

TRAINING AND DEVELOPMENT

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TRAINING AND DEVELOPMENT:

Employee Orientation: Employee Orientation means; “A procedure of providing new employees with basic Background information about the firm. Once the selection process is completed, new employees are oriented in order to become productive contributors. According to the Personnel Manager, Orientation not only improves the rate at which the employees are able to perform their job but also helps employees satisfy their personal desires to be part of the Nishat textile mills limited social fabric. Nishat mill feels responsibility for orienting the employees so that they can become familiar with organizations environment and working procedure easily. Personnel manager gives brief introduction about the job which the new employee will perform and then they are oriented to their respective departments. Brief introduction of Nishat mills limited Complete Company profile Organization Product profile that‟s made by the company The working hours Head office Plant Canteen mess Traveling Important telephone number And also for the orientation the company will giving the employee hand book to the employees which have complete information about the company.

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TRAINING AND DEVELOPMENT

Even after a comprehensive orientation and proper job placement, new comers in the company are not able to perform satisfactorily. So they require training which help employees to do their job satisfactorily and moreover the benefits of training may extend through out person's entire career and it helps develop that person for future responsibilities. At Nishat mill the emphasis is on development of the employees to help the individual handle future responsibilities. At Nishat mill there is a full fledge training department to conduct the training and monitor the training programmed.

Training methods: Nishat mills limited train their employees by two ways:

On the job training Off the job training

Training in Nishat mills limited

Training in Nishat mills limited is basically of two types. Training to new employees Training to existing employees

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Training to new employees When the company select the fresh candidate from the market those candidates are not well trained from the job as well as the working condition for this purpose the company will organizing the training for the new employee and trained them becaue they are given good result for the company tha is good for the company as well employee. Nishat mills limited basically has a general induction-training plan for newly employed people. After induction training the employee has been shifted to the department he was employed for, to go through departmental training and the training of other relevant departments whom he has to interact in his day-to-day activities TRAINING TO EXISTING EMPLOYEES

Training to exiting employee also is given in Nishat textile mills limited because these employees in not know about the computerized machinery. to introduce that new technology to the old employee the company will be given the training to his old and exiting employee.

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CHAPTER: 4

PERFOMANCE APPRAISAL

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PERFORMANCE APPRAISAL

Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate picture of past and/or future employee performance. To achieve this performance standards are established. The standards are based on the job related criteria that best determine successful job performance. Nishat textile mills limited has developed a complete performance appraisal system by which job performance of the employee is evaluated. Personnel department also uses the information gathered through performance appraisals. The objective of the system is to get the performance feedback which allows the employee, manager and Personnel Manager to step in with appropriate actions to improve the performance.

Which Appraising Method The Company Is Using: 360 degree appraisal system:

360 degree appraisal system is mostly and common used in the companies. Mostly it is done for senior management; the company takes the feedback of their senior management by workers, coworkers, employees, customers, suppliers and other business persons. In Nishat mills limited mostly they have hired a Supervisor for appraising the employees having a log of employee‟s good and bad behavior during a particular period of his job and they review the performance Check Yearly performance Through Performance ratting Who should do the appraising? the hr manger is responsible to do the appraising. Page 25



CAREER PLANNING

Career planning is very important aspect for development of the employees. By career planning employee's career goals are set and to achieve them. Nishat textile mill limited feels the responsibility to develop the careers of their employees so that they would be able to get themselves high and high in corporate hierarchy. Then the principle aim of career development programs at Nishat textile mill limited is to help employees, analyze their abilities and interests to better match personal needs for growth and development with the needs of the organization.

Training and Development: Training and development is a process in which the company conducted the training for the employee that helps the company as well as helps the employee to develop his best future. Nishat mills limited recognize the value of professional development and personal growth for employees. Therefore, company encourages its employees who are interested in continuing education and job specific training to research these further and get approval before signing up for the seminars or courses. The purpose of this policy is to reinforce the commitment the company to a learning environment. Employees are encouraged to attend training and educational programs that will enhance their abilities to perform and grow in their jobs. Supervisors are expected to reinforce this commitment as well as participate in training. The Company is committed to employee professional development.

Promotions and transfers:

The promotion of the employee occurs when an employee is moved from one job to another that is higher is pay, responsibility, and/or organizational level. The promotional criteria have following features: Page 26



It is based on the past service record and performance appraisal system. Person is evaluated individually before promotion. It depends on the vacant seats (whether exist or not). Only recommended and adequately qualified persons are promoted. When the person become capable to perform and take the responsibility of his/her boss, according to the succession plan he should be promoted upward in the hierarchy.

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CHAPTER: 5

COMPENSATION AND BENIFITS

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COMPENSATION & BENEFITS “All forms of pay or rewards going to employees and arising from their employment”

Nishat textile mill limited follow to all laws and regulations of government. For instance, Nishat follows Minimum Wage Board Act, Industrial Relations Standing Ordinance, and Workman Compensation Act.

Nishat mill has developed grades for rank and file workers and have structured Pay Scale according to labor market and competition within the hospitality industry of Pakistan. The compensation for executive and secretaries is negotiable depending on the abilities and performances.

OBJECTIVES OF COMPENSATION

Compensation needs to be high enough to attract applicants. Retain present employees. Compensation management strives for internal and external equity. Comply with legal regulations imposed by government. Page 29



How pay rates are established?

Nishat mills limited has established its pay rates To conduct a survey outside the companies and then established the pay rate for his employee. Matching the worth of the job of the employee. Matching the group whose pay that‟s rates. Established the pay with the pay grade

HEALTH AND SAFETY Health and safety is very important for the entire employee. If an employee is no having good health he cannot perform his job well.

HEALTH AND SAFETY MEASURES

Fire fighting course is mandatory for all levels. They have a dispenser in the mill to take and care the employee. Helmet plan is implemented. If any accident happens the injured persons are rushed to nearby hospital.

FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES

Fixed salary Overtime is paid according to Government rules and regulations i.e. double on Gazettes holidays. Group Insurance scheme is practiced for the compensation of two objectives: Page 30



i) Accidents ii) Injuries

Employees old age benefit scheme. Gratuity scheme. Bonus is awarded (Minimum one bonus in a year) Monthly Medical Allowance Social Security services are obtained for employees. Paid leaves.

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nishat mills final hrm project.docx

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