HUMAN RESOURCE DEPARTMENT

Introduction

In Lyallpur Chemicals & Fertilizers (Pvt) Limited Human Resource department is helping people
and organization to reach their goals. Along the way, the department is facing 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 is contributing in the organization's "bottom line" in ways that are
both ethical and socially responsible.

The Purpose of HRM

The purpose of human resource management in Lyallpur is to improve the productive contribution
of people to the organization in ways that are strategically, ethically, and socially responsible.

Structure of the Human Resource Department

 Manager Human Resource
& Administration

Deputy Manager Deputy Manager

HR Admin

Assistant Administration
Manager HR Officer

Secratery Computer
Operator

Objectives of Human Resource Department

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. These challenges spotlight some objectives that are:

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.

Personal objective

To assist employees in achieving their personal goals, at least insofar as those goals enhance the
individual's contribution to the organization. The personal objectives of employees must be met if
workers are to be maintained, retained, and motivated. Otherwise, employee performance and
satisfaction may decline and employees may leave the organization

Not every HR decision can meet these organizational, functional, societal, and personal objectives
every time. Trade-offs do occur. But some serve objectives are a check on decisions. The more
these objectives are met by the department's actions, the larger its contribution will be to the
organization's bottom line and the employee's needs. Moreover, by keeping these objectives in
mind, HR specialists can see the reasons behind many of the department's activities.

Recruitment and Selection

Selection Procedure

Recruitment is the process of searching for prospective employees and stimulating them to apply
for jobs in the organization.

Role of HRD in Recruitment Process

Human resource department of Lyallpur is responsible for designing the selection system and
managing its everyday operation. In Lyallpur Chemicals & Fertilizers (Pvt) Limited human
resource mangers in cooperation with other managers largely set the overall strategy, they are
likely to be influential in deciding, e.g., whether the department should focus on choosing people
who are best qualified for current vacancies of for those who have the greatest long term potential.
The personnel managers also decide how the guidelines for equal employment opportunities met
and whether the company needs outside legal assistance in formulating its affirmative action plan.

Procedure of Joining the Company

On joining the Company the following formalities must be completed:

The documents listed below shall be forwarded immediately to Human Resource Department for
completion of their record.

i) Duplicate copy of appointment letter duly signed by the employee in acceptance of the
terms and conditions embodied therein.

ii) Four copies of recent passport size photograph.

iii) Photocopies of all academic certificate especially metric certificate.

iv) Photocopies of testimonials from previous employers.

v) Fitness certificate.
vi) Photocopy of CNIC

vii) Clearance letter from previous employer.

Recruitment Process

In general the sources of recruitment can be classified into two types:

i). Internal Job Posting

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.

Self Nomination

Human Resource office publishes a monthly newsletter that list the Lyallpur's job posting program
to different routes to nomination for a job, self nomination and nomination by an employee
supervisor.

Positions available the announcements carry information about the nature of the position and the
qualification needed, and any employee whose interested bid on the job that is enter the
competition for it.

Nomination by Employees Supervisor

Informal communications among managers lead to discourage that best candidates for a job is
already working in a different section of the firm.

Despite some minor problems, most employees were pleased that an internal job posting program
was established. Most successful nominees were happy with their new assignments and
unsuccessful nominees identified needed skills and gained a more realistic idea of additional
training or experience required for careers alternatives.

ii). External Job Posting

Lyallpur Chemicals & Fertilisers (Pvt) Limited also go to external sources for positions whose
specification can not beam by present personnel. Lyallpur uses following outside sources:

1). Advertising

Advertisements are placed in various newspapers. More information about the company and jobs
specifications are included in the ad to present some self-screening.

2). Employment Agencies

Additional screening is affected through the utilization of private employment agencies.

The agency has specialized in various types of workers and job e.g. sales office, execution or
engineer.

3). Casual Applications

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

4). Leasing

To adjust short term function in personnel needs. The possibility of leasing by the hour or day is
considered. Lyallpur is not only obtains well trained and selective personnel but avoids any
obligation in pension, and other fringe benefits.
.
The Hiring Procedure
In the hiring procedure, Lyallpur is considering the following steps to discover significant
information about an applicant:

1. Call for application

2. Preliminary interview
3. Applications blank
4. Check of References
5. Psychological test
6. Employment interview
7. Approval by the supervisor
8. Physical examinations
9. Introduction or orientation

1). Call for Application

First of all, an ad is given in the newspaper for the vacancy.

2). Preliminary Interview

In this step, the more obvious facts and impressions are of the type generally obtained in an initial
interview. Appearance and facility in appear are quickly evaluated. Applicants are often asked why
they are applying for a job with Lyallpur. An idea of education and experience is obtained by
asking for the last grade finished in school and the names of jobs previously performed.

3). Application Blank

The application form is a sheet or small, booklet with blanks to be filled in by the applicants. Its
purpose is to supply organization with basic information about the candidate's back ground:
education work experience, previous salary, and so forth.
In Lyallpur factual information is to be obtained by means of an application blank. Weighted
application form is established and used with caution. It is used for two prime objectives:

i). Lyallpur has established the selection of more stable employees to decrease labor turnover.
They have discovered and utilized the particular data that devote stability facts relating to home
ownership, marital status, age, sex etc.

ii). Lyallpur has also established job proficiency as the major objective and have correlated
biographical items with production records.

The application blank is continuously updated. The entire blank is restudied and reweighted every
1 year at the minimum.

4). Check of References

The purposes of the reference check are to obtain information about past behavior of applicants
and to verify the accuracy of information given not he application blank. Lyallpur uses
combination of letters and telephone calls, as a method of checking.

Reference includes only:

1) Dates of employment
2) Job title
3) Absentee record
4) Promotions and demotions
5) Compensation
6) Stated reason for termination.
5). Psychological Test

In Lyallpur, clericals jobs are subjected to the greatest amount of testing, applicants for unskilled
hourly jobs are tested least. The factors measured are usually of the psychological type, such as
ability to reason, capacity for learning, temperament and specific aptitude.

Types of Psychological Tests:

Following types of tests are being used in Lyallpur to identify talents.

i). Intelligence test

These tests concentrate on a person's abilities with worlds numbers logical reasoning and spatial
relationships. This type of test is used for managerial posts.

ii). Mechanical Aptitude test

Lyallpur uses mechanical aptitude tests. Inventions are asked which fall into the general area of
understanding area of under standing mechanical relationships. Some questions relate to
knowledge of tools and equipment. This type of test is suitable for technical posts.

iii). Clerical Aptitude Test

This test deal with questions concerning office vocabulary, automatic, spelling and detail checking.
This type of test is used for clerical posts, such as computer operator.

iv). Interest Test

Lyallpur realizes that a person who is interested in a job or task will do much better than one who
is uninterested. The applicant is asked whether he likes, dislikes or is indifferent to many examples
of school subjects, occupations, amusement, and peculiarities of people and particular of activities.

6). Employment Interview

Interviewing is probably the most widely used single method of selection. Lyallpur shapes
interviewer behavior is to establish a specific system for conducting the employment interview.

Lyallpur considers following things to set up such a system:

1). To know what to look for in applicant focus only those knowledge, skills, abilities and other
characteristics (KSAOs) necessary for the job.

2). Develop interview questions that are strictly based on the job analysis results, use "open-ended"
questions and use questions relevant to the individual's ability to perform, motivation to do a good
job.

3). Conduct the interview in a relaxed physical setting. Begin by putting the applicant at ease with
simple questions and general information about the organization and the position being filled.

4). To evaluate applicants, develop a form containing a list of KSAOs weighted for overall
importance to the job.

7). Approval by the Supervisor

After the employment interview the immediate supervisor approves the candidates. The
candidate's recruitment is confirmed after probationary period.
8). Physical Examination

The physical examination step found in most business. Physical examination includes matching of
an applicant's physical capabilities to job requirements to a simple check of general physical
appearance and well being.

In having the physical examination procedure Lyallpur has at least three basic objectives that are:

1). In first, it serves to ascertain the applicant physical capabilities e.g. can the applicant work
standing up.

2). The second objective of examination is to protect the company against unwarranted claims
under worker's compensation laws or against lawsuits for damages. If a record of a new employee’s
physical condition at the time of entry does not exit, a claim could possibly be filed for injuries
greater than were incurred after starting to work.

3). Third objective of physical examination is to prevent communicable diseases from entering the
organization.

Training and Development

Orienting and Training Employees

In Lyallpur both human resource directors and other managers play critical role in the development
of orientation programs. Human resource managers have assumed leadership in developing such
programs.

Orientation of New Employees

After the selection of successful employees the first step in their introduction to company policies,
practices and benefits is an orientation program.
In 2007 an orientation programme was conducted by the management after taking over NFC. The
main objective of that programme was to get familiarize with the organization culture of both old
and new employees.

The Orientation program in Lyallpur is completed in three phases:

The first phase is usually conducted by the staff personnel unit. Subjects covered include products
of the company, employee benefits, salary schedules, safety, probationary period, timed recording
and absence, holidays equal employment opportunity programs, packing and the grievance
procedure.

The second phase of most organized induction program is performed by the immediate supervisor.
The inductee is introduced to fellow employees, given a tour of the department, and informed
about such details as locker and rest rooms, supply procedures, hours of work overtime, call in
procedures, rest and lunch periods, and lunching facilities.

The complete in action program will provide for phase three follow up some week later. The
interview, conducted by either the supervisor or a personnel specialist is concerned with:

1). Employee satisfaction with the job and organization.

2). Supervisor satisfaction with the employees.

Dissatisfactions may be cleared up by explanations or actual transfers to a different job. In any

event, the interest in the employee evidenced by the more act of having a follow-up interview will
help to increase the level of employee satisfaction.

After the employee has been received, selected and inducted, he or she must next be developed to
better fit the job and the organization. No one is a perfect fit at the time of hiring, and some training
and education must take place.
Lyallpur is a cultural organization in which importance has been given to training. The
management consider the training as an "Investment in their Asset". They believed that planed
development programs will returns values to the organization interims of increased productivity,
high reined morale, reduced costs and greater organizational stability and flexibility to adapt to
changing external requirements.

Lyallpur management is initially interested in training and educational programs in order to

promote employment and utilize the talents of its citizens.

Training Needs Assessments

In Lyallpur there are three level of analysis for determining the needs of training:

1). Organization analysis

Focus on identifying where within the organization training is needed.

2). Operation analysis

Attempt to identify the content of training, what an employee must do to perform competently.

3). Individual Analysis

Determines how well each employee is performing the task that make up his or her job. At this
level, training needs may be defined in terms of a simple equation.

Desired performance - Actual Performance = Training need

Operative Training
The development of operative calls for specific, increased in skills and knowledge to perform a
particular job. In Lyallpur there are primarily two basic methods in use:

1). On the Job Training

Since most jobs in Lyallpur can be learned in a relatively short period of time, this method is most
widely used. It has the advantage of strongly motivating the trainee to learn since it is not located
in the artificial situation of a classroom. The fact that the success of the system depends almost
entirely upon the immediate supervisor, the trainer, means that the personnel unit has a major
responsibility for making a good, effective reaches out of every supervisor.

Major types of on the job training implemented in Lyallpur is Apprenticeship programme which
include both class room instructions as well as on the job training. This type of training is given to
the new inductees and usually two years long.

2). Off the Job Training

There are three methods used in Lyallpur for Off the Job training:

i). Workers Training Program

During the first quarter of 2008, a worker's training program was organized by fertilizer division
of Allahdin Group. This was a part of on the job training. This program was inaugurated by
Manager Human Resource of Lyallpur. The main agenda of the program was to explore the hidden
talent of their worker and to make them cognizant of their own potentials. Manager HR, the
divisional head, and his team conducted the program in a very interesting and entertaining manner
with the help of IQ testing riddles and different games. High degree of enthusiasm was observed
among the participating workers.
ii). Special Courses

The second system of operating training classified some educational courses rather than training.

iii). Selling and Technical skills training program

This is another strange experience for all participants after the budget and strategy session. This
program was hold day and night from 25-04-2008 to 27-04-2008 at BZU, Multan. The objective
of the program was to convert their sales staff into technical sales staff.

Evaluating Training Programs

Training must be evaluated by systematically documenting the outcome of the training in terms of
how trainees actually behave back on their job and the relevance of the trainees behavior to the
objectives of the organization.

To assess the utility or value of training, in Lyallpur management seek ensures to four questions.

1. Did change occur?

2. Is the change due to training?
3. Is the change positively related to the achievement of organizational goals?
4. Will similar change occur with new participants in the same training programs?

In evaluating training programs, measures of change fall into four categories:

Reaction
How do participants feel about the training program?

Learning

To what extent have trainees learned what was taught?

Behavior

What on the job changes in behavior occur because of attendance at the training program?

Results

In what extent have cost related behaviour outcomes or quality improvement, turn over or accident
reduction (productivity) resulted from the training?

Management and Career Development

Management and employee development programmes are "those organization sponsored

programmes aimed at educating supervisory and supervisory employees above and beyond the
technical requirements of their job". Human relations, "decision making" and the executive’s role"
are examples of courses included in management development.

The HRD of Lyallpur is mainly responsible for providing information about what seminars are
available outside and also develop budgets and plans for sending managers to outside seminars but
the final decision of attending the seminar is to be made by immediate supervision of the managers
involved.

The commonly used training methods in ICI are:

1. Lecture / Discussion
2. Films / Videotapes
3. Case Study
4. Management Games
5. Behavior Modeling.

Evaluation of HRD Performance

HRD of Lyallpur is working very well. Such as planning, managing people, resulting people, its
objectives and its mission, guiding principle are very good and helping in overall organization.

Managers of HRD are expected to organize and to be accountable for the work of other people. In
this process, managers act as employers as such they create and sustain the employment
relationships of their organizations.

Salary Administration

Salaries of Sales Force

1). Fixed Salary

Fixed salary is given to helpers and apprentice salesmen/managers during their first six months of
training period.

2). Fixed Salary and Commission

All the salesman who have passed the test and the managers who have completed six months
training are paid according to this plan.

Employees Services

Bonus
After the completion of two years of service, salesmen and helpers are entitled to bonus (if any) to
be paid at the end of each year.

Provident Fund

After completion of one year's service, a Manager will be entitled to become the member of
Provident Fund.

a). The Manager will deposit every month 6% of his actual pay to his PF.

b). After five years of continuous contribution by the manager, he will be entitled for 100% of
company's contribution.

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

Promotions

The manager on transfer from one station to another will be entitled to the following allowances:

a). Actual transport fare for him and his family.

b). One day daily allowance for himself.

c). Average salary for the period in between handing over and taking over of the charge.

Demotions

An employee may be demoted on showing bad performance. Not only the low level employees
but the managers are also demoted if the required targets are not achieved in repeated year.

Commission and Salaries

The administration department deals with the salaries, commissions and other fixed benefits of the
employees. In this way, Lyallpur has its own system of evaluating the salary and commission for
individual employees in the organization. The basic salaries of the employees of Lyallpur is very
low, however, a good package of salaries come into existence after adding the house allowance,
conveyance allowance and commission. Schedule of salaries and commission is as under:

Personnel of grade "1" gets 2000/- Rs.(B.P)

Personnel of grade "2" gets 2800/- Rs.(B.P)

Personnel of grade "3" gets 4600/- Rs.(B.P)

The above employees get more in form of a percentage share in net profit. Salaries of managers
are also varies work wise ranging from 430/- Rs. to 3150/- Rs. They enjoy, too, the commission
ranging from .09% to 3% of the net profit.

System of Communication
Formally defined a Company structure is the system of communication and authority that links
people and groups together to accomplish tasks that serve the organizational purpose.

Structure can be described in the form of an organization chart. Lyallpur 's organizational chart
shows that it has functional structure.

Negotiating With Union

Labor Union do alter the work environment. The personnel department is deeply involved with
decisions that effect compensation, work hours and other terms and conditions of employment to
ensure uniformity of treatment. In Lyallpur one labor union member is granted the status of
collecting bargaining agent (CBA). Management wants effective work performance through good
relationship with CBA. The union is only for rank and file workers.

Union management meetings are held every month. At the end of the year, Annual meeting is held
with the employees.

A reasonable agreement is reached which is workable for both the management and the work force.
Management always wants to provide a conducive and congenial work environment for the work
force.

SWOT Analysis of HR Department

Strengths
  Qualified management
 Recruitment procedure
 Training methods
 Computer literacy programs
 Compensation and benefits packages
 Handsome salary package for professionals

Weakness

 Time consuming recruitment procedure

 Inter-department relations
 Union disputes
 Communication system

Opportunities
 Availability of professionals
 Agricultural specialists

Threats

 Labor disputes
 Political references
 Price competition
 Strong competitors

Conclusion

Training process in Lyallpur leads to improved profitability, enhances job knowledge and skills,
helps employees to identify and understand organizational goals, improves labor management
relations and increases information by reducing communication gap at all levels of the
organization. Thus training in Lyallpur develops certain skills among the employees, such as
effective problem solving, handling stress, frustration and conflict, improved communication skills
and sense of growth and learning. These skills are required because ICI has a diverse product
range.

Suggestions

In the light of my research following recommendations are suggested.

 Lyallpur should have to launch employee awareness training programme through off the
job training. These programmes must clearly define company goals and bring about
awareness of corporate culture of Lyallpur amongst the less educated employees.

 They should have to train their employees according to the macro-environment of the
country.

 It is also suggested that Lyallpur should have to hire professional trainers to distinct their
employees from their rivals.