You are on page 1of 79

Internship Report

Industrial Relationship Department,


Packages Limited
Submitted To:
Industrial Relationship (IR) Department

Submitted By:
Khalil Ur Rahman

Internee, IR

ACKNOWLEDGEMENT

First of all I would acknowledge ALLAH ALMIGHTY whose blessings are always
there to guide me and lead me towards successes and accomplishments in
life.
Before starting my report I would like to thank the officials and management
of Packages Limited, who provided me a wonderful opportunity of learning in
such a big organization. I would also acknowledge the support and guidance
that my supervisors provided me throughout my internship period.
I would like to express my sincere gratitude to, Mr. Akram (IR Manager) and
Mr. Imran Ellahi (Assistant Manager) who provided me opportunity to work in
the practical environment and their constant encouragement, sincere
advices, suggestions and valuable guidance helped me in accomplishment
of my training program. Without their guidance, I would have never been
able to gain the confidence and precision in my work. I would also like to pay
my gratitude to all the people, without whose input this report could not
have been completed. And, of course, I am most indebted to my parents;
without their support, encouragement and prayers this work would have
never been possible.

EXECUTIVE SUMMARY:

This Internship report will be describing the industry profile of Packages Ltd,
that in which industry they are in and how that industry is working. This
summary also comprises of Packages Ltd.s company profile describing all
the information of the company that what it is about what it does, where it
functions and how well it is going. The report also shows the way the
business process happen in the Packages Ltd. What are the different
departments in Packages Ltd.? And how they work with each other. The
SWOT Analysis will tell the strengths of company which get laden due to
some weakness. As we are in Pakistan there are many threats to a business,
hence Packages capitalizes on the opportunities to defeat all the threats to
make everything go their way. Hence its a comprehensive view of the
strengths overcoming the weaknesses and the threats minimized by using
the opportunities.
Last but not least, the report tells the problems that company faces. And how
can they solve them, as no business can work wonders without finding gaps
and helping themselves to attain and maintain a better position in the
industry. Hence the report mentions many tiny problems which need
attention in order to further best in the industry.

Table of Contents
Chapter 1: INTRODUCTION OF PACKAGES LIMITED................................6
OVER THE YEARS..........................................................................................7
CORPORATE STRUCTURE..............................................................................9
ORGANOGRAM............................................................................................10
VISION............................................................................................................11
MISSION STATEMENT......................................................................................12
CORE VALUES.................................................................................................13
BOARD OF DIRECTORS & MANAGEMENT COMMITTEES.................................14
BUSINESS ALLIANCES....................................................................................16
CORPORATE CULTURE....................................................................................17
PRODUCTS OF PACKAGES LIMITED................................................................18
BUSINESS UNIT - FOLDING CARTONS (FC)..................................................18
BUSINESS UNIT - CONSUMER PRODUCTS...................................................19
MECHANICAL FABRICATION & ROLL COVERS..............................................21
FLEXIBLE BUSINESS UNIT:...........................................................................23
DEPARTMENTS / DIVISIONS............................................................................24
Chapter 2: MANAGEMENT PRACTICES AT PACKAGES...........................26
INTRODUCTION OF IR AND HR:...................................................................26
HUMAN RESOURCE DEPARTMENT..................................................................26
FUNCTIONS OF HRD DEPARTMENTS............................................................27
3

RECRUITMENT AND SELECTION..................................................................27


SUCCESSION PLANNING..............................................................................28
STEPS IN RECRUITMENT AND SELECTION...................................................31
PERFORMANCE APPRAISAL.........................................................................32
PERFORMANCE APPRAISAL PROCESS..........................................................33
TRAINING AND DEVELOPMENT OF EMPLOYEES..............................................34
COMPENSATION AND BENEFITS POLICIES......................................................35
QUALITY FOCUS.............................................................................................37
DETAILS OF ISO & HACCP CERTIFICATION...................................................37
QUALITY POLICY..........................................................................................38
Chapter 3: OVERVIEW OF THE INDUSTRIAL RELATION DEPARTMENT 39
Hierarchy of IR Department...........................................................................39
WEEK 1......................................................................................................40
Establishment Wing:................................................................................40
WEEK 2......................................................................................................41
Incentive Wing:........................................................................................41
WEEK 3......................................................................................................42
Salaries and Wages Wing:........................................................................42
WEEK 4......................................................................................................44
TIME OFFICE WING:..................................................................................44
WEEK 5......................................................................................................46
LEGAL CELL:.............................................................................................46
WEEK 6......................................................................................................47
LABOR WELFARE:.....................................................................................47
SAP APPLICATION IN HUMAN RESOURCE MANAGEMENT FUNCTIONS............52
Chapter 4: SWOT ANALYSIS OF PACKAGES............................................53
STRENGTHS:...............................................................................................53
WEAKNESSES:.............................................................................................54
OPPORTUNITIES:.........................................................................................54
THREATS:....................................................................................................54
4

Chapter 5: RESEARCH PROJECT................................................................55


Problem Development/Area of Concern.........................................................55
Objectives of the Study:..............................................................................55
Managerial and Academic value of research:.............................................56
Literature Review:.......................................................................................56
Research Question:.....................................................................................58
Sub Questions:............................................................................................58
Research Methodology:...............................................................................58
Findings of the in-depth Interview:..............................................................59
Independent Variables:............................................................................60
Dependent Variable:................................................................................60
DATA TABULATION AND ANALYSIS...............................................................60
OVERALL ANALYSIS AND FINDINGS.............................................................62
CONCLUSION...............................................................................................64
RECOMMENDATIONS..................................................................................65
REFERENCES................................................................................................65

Chapter 1: INTRODUCTION OF PACKAGES LIMITED

Established in 1956 as a joint venture between the Ali Group of Pakistan and
Akerlund and Rausing of Sweden, Packages Limited provides premium
packaging solutions for exceptional value to individuals and businesses in
the most efficient, profitable and sustainable way. Packages offers a
complete range of packaging solutions and employees over 1500 people.
Listed on all three stock exchanges in Pakistan, Packages Limited
maintained a long-time credit rating of AA and has always been at
forefront of new developments in packaging research. Packages limited
pioneered several innovations, including the use of wheat straw as a
material for paper and board manufacture.

has
the
has
raw

OVER THE YEARS

Over the years, Packages has continued to enhance its facilities to meet the
growing
demand
of
packaging
products.
In 1968, with IFC participation, Packages integrated upstream by
establishing a Pulp and Paper Mill with a capacity of 24,000 tons per year
based on waste paper and agricultural by-products i.e. wheat straw and river
grass.
In 1981, Packages modified a paper machine to produce tissue paper in
response to growing awareness and demand for hygienic and disposable
tissues.
In 1986, the Company established a flexible packaging unit to cater to the
increasing demand from consumers for sophisticated packaging used
primarily in the food industry.
In 1993, a joint venture agreement, Tri-Pack Films Limited, was signed with
Mitsubishi Corporation of Japan for the manufacture of Polypropylene films at
the Industrial Estate in Hatter, KPK. Packages Limited owns 33% of Tri-Pack
Films Limited equity.
In July, 1994, Coates Lorilleux Pakistan limited (currently DIC Pakistan
Limited), in which Packages Limited has 55% ownership, commenced
production and sale of printing inks.
In 1996, Packages entered into a joint venture agreement with Print care
(Ceylon) Limited for the production of flexible packaging materials in Sri

Lanka. The project Packages Lanka (Private) Limited, in which Packages


Limited has79% ownership, commenced production in 1998.
During 1999-2000, Packages successfully completed the expansion of the
flexible packaging line by installing a new rotogravure printing machine and
enhancing the carton line by putting up a new Lemanic rotogravure inline
printing and cutting creasing machine.
In 2005, the Company embarked upon its Paper & Board expansion plan at
a new site 'Bulleh Shah Paper Mills'(currently Bulleh Shah Packaging (Private)
Limited), almost tripling its capacity from 100,000 tons per annum to
300,000tons per annum. Capacity expansion at Bulleh Shah Paper Mills was
completed in two phases. In the first phase, Brown Board Machine PM-6
along-with high yield straw pulping & OCC plants and its back processes such
as 11 MW Power House, Gas Turbine and Primary Effluent Treatment Plant
were capitalized and commercial operations were commenced during the
year 2007. Second phase comprising of Writing and Printing Paper Machine
PM-7, De-inking Pulp Plant, 41MW Power House, Steam Turbine and
Secondary Effluent Treatment Plant was completed in the year 2009.
In 2008, the Company embarked upon capacity expansion in its tissue
division through installation of a new tissue paper manufacturing machine
PM-9 with production capacity of 33,000 tons per annum. With this capacity
expansion, the Company is now in a position to take benefit from export
potential of tissue products in the international market, particularly the
Middle East.
During 2011, a lamination machine was installed in the flexible department
at a cost of PKR 96 million. This is Pakistan first high speed solvent-less
automatic lamination machine. It has turret winders for automatic reel and a
capacity of 450 meters per minute.
Moreover, the Corrugator Machine in Kasur Plant was upgraded in 2011 to
improve efficiency, reliability, enhance capacity and reduce waste. This
upgrade activity resulted in increased capacity of 14%.
In 2012, to enable continuous growth and technical development in the
Paper & Paperboard segment, Packages signed a 50/50 Joint Venture
agreement with StoraEnso OYJ Group of Finland in its 100% wholly owned
subsidiary, Bulleh Shah Packaging (Private) Limited. The Joint Venture
included Paper & Paperboard and Corrugated business operations at
8

Kasurand Karachi and involved initial equity participation by Stora Enso OYJ
Group of 35% by way of subscription of right shares with a commitment to
increase the shareholding to 50% at a later stage.
In the same year, Packages also invested in a New Rotogravure Machine for
its Flexible Packaging Business with a total estimated project cost of PKR 326
million as part of the Company's efforts to remain abreast of improved
technological developments in the Packaging business.
The Joint Venture Agreement with Stora Enso OYJ Group, signed in 2012, was
implemented in 2013 and Packages completed the transfer of assets and
related obligations of Paper & Paperboard and Corrugated business
operations to Bulleh Shah Packaging (Private) Limited along with cash equity
injection. Packages now holds 65% equity in Bulleh Shah Packaging (Private)
Limited. The joint venture partner, StoraEnso OYJ Group, is actively involved
in providing technical expertise to further enhance the Paper &Paperboard
and Corrugated business operations.

CORPORATE STRUCTURE

Packages Limited has two main manufacturing divisions:


The Packaging Division, provides multi-dimensional and multi product
packaging solutions to clients that are involved in manufacturing
consumer product across industries.
The Consumer Products Division, which manufactures off-the-shelf
branded consumer products
9

Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.
Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.

10

ORGANOGRAM

11

Commercial Manag

Marketing Manager
Store Manager
I.R Manager

12

13

VISION
Position ourselves to be a regional player of quality packaging and consumer
products. Improve on contemporary measures including cost, quality,
service, speed of delivery and mobilization. Keep investing in technology,
systems and human resource to effectively meet the challenges every new
dawn brings. Develop relationships with all our stakeholders based on
sustainable cooperation, upholding ethical values, which the shareholders,
management and employees represent and continuously strive for.

14

MISSION STATEMENT

To be a leader in the markets we serve by providing quality products


and superior service to our customers, while learning from their
feedback

to

set

even

higher

standards

for

our

products.

To be a Company that continuously enhances its superior technological


competence to provide innovative solutions to customer needs.
To be a Company that attracts and retains outstanding people by
creating a culture that fosters openness, innovation, promotes
individual

growth,

rewards

initiative

and

performance.

To be a Company which combines its people, technology, management


systems and market opportunities to achieve profitable growth while
providing

fair

returns

to

its

investors.

To be a Company that endeavors to set the highest standards in


corporate ethics in serving the society.

15

CORE VALUES

Underlying everything we do and everything we believe in is a set of


core values. These guide us to deal with every aspect of any issue
we might encounter in our personal and professional lives. These
values help us grow inside & outside, personally and as an
organization.

Good Governance
Work Environment
Good Governance
Our People
Conservation
Customer Satisfaction
Ethical behavior

WHISTLEBLOWING POLICY
This whistleblowing policy is intended to protect the staff if they raise
concerns such as:
incorrect financial reporting
unlawful activity;
activities that are not in line with Packages policy, including the Code
of Conduct; or.
activities which otherwise amount to serious improper conduct

16

We make sure that all our processes and methods


conform to the highest ideals of professional
behavior. Our organizational structure is straightforward
and
need-based;
accountability
is
transparent, consistent and both horizontal and
vertical.

BOARD OF DIRECTORS & MANAGEMENT COMMITTEES

Our people are our greatest asset. We seek and retain people who feel there
is no compromising on excellence, and a corporate culture in which our
family can grow and thrive. Heading our multi-talented team is our
leadership of experienced senior management. Together, we know how to
combine our skills and knowledge to deliver state-of-the-art solutions to our
customers.
BOARD OF DIRECTORS
Towfiq Habib Chinoy
(Non-Executive Director)

Syed Aslam Mehdi


Rizwan Ghani
Josef Meinrad Mueller
Tariq Iqbal Khan

Syed Hyder Ali


(Chief Executive & MD)

Shamim Ahmad Khan


Muhammad Aurangzeb
Syed Shahid Ali
Veli-Jussi Olavi Potka
17

EXECUTIVE COMMITTEE

Syed Hyder Ali - Chairman


Rizwan Ghani- Member

ADVISOR

COMPANY SECRETARY

Syed Babar Ali

Adi J. Cawasji

AUDIT COMMITTEE

Tariq Iqbal Khan - Chairman


(Non-Executive Director)

Shamim

Ahmed

Khan

(Non-Executive Director)

Syed

Shahid

Ali

Member

(Non-Executive Director)

Syed Aslam Mehdi - Member


(Director & General Manager)

Muhammad

Aurangzeb

(Independent Director)

Adi J. Cawasji - Secretary

HUMAN RESOURCE AND REMUNERATION (HR&R) COMMITTEE

Towfiq
Habib
(Non-Executive Director)

Chinoy

Chairman

Tariq

Khan

Member

Iqbal

18

SYSTEM & TECH. COMMITTEE

Rizwan
Ghani
(Executive Director)
(Non-Executive Director)
KKhurram
Raza

Shamim
Ahmad
(Chief Financial Officer)
(Non-Executive Director)
Suleman
Javed
Syed ERP)
Hyder
(Manager
(Executive Director)

Syed
Aslam
(Executive Director)

Chairman

Bakhtayari
Khan

Ali
Mehdi

Kaifee
Siddiqui(Head of Human Resource)

Member
Member
Member
Member

Member
Secretary

BUSINESS ALLIANCES

One of the best ways for a business to leverage its products and increase
growth is through association. Our business alliances help us manage our
business more effectively, as well as helping us and our partners develop
and diversify our interests. Customers also benefit from the increased
19

knowledge base, as we transform our market awareness and shared


technology into innovative and cost effective solutions for customers.
Our community efforts reflect our corporate culture by building strength and
value through mutual assistance and good will.

Subsidiaries, Joint Venture, Associates


DIC Pakistan Limited.
Packages Lanka (Private) Limited.
Packages Construction (Private) Limited.
Anemone Holdings Limited.
Bulleh Shah Packaging (Private) Limited.
IGI Insurance Limited.
Tri-pack Films Limited.
IGI Investment Bank Limited.
IGl Life Insurance Ltd.

CORPORATE CULTURE

20

Our management style can best be described as egalitarian, with everyone


having an equal opportunity for development and growth. People are
recruited into the company based purely on merit and with total disregard to
considerations of gender, race, color or creed. Merit alone is the criterion of
all subsequent professional growth. Performance evaluations are conducted
on the basis of achievement of individual objectives that are in conformance
with the departmental and overall corporate objectives of the company.
Promotions are similarly guided by merit and the suitability of an employee
to the position for which he or she is being considered.
Our working environment is so relaxed as to be almost casual; there is no
bossing around or subordination, no name tags on offices, and no
appointments required for calling on seniors. People are encouraged to
communicate informally at all levels and interpersonal relationships are
greatly valued. Written communication is simple and to the point, with even
personal names abbreviated to initials to save time.
Our leadership follows the principle of 'management by walking around',
where managers are expected to make daily rounds of all areas of
responsibility, and have first-hand information of all significant happenings.
This informal style of management may seem arbitrary, but is serious
without being intimidating and has stood the company in good stead over
the years. Today, our corporate culture is so attractive that most people join
us straight from an educational institute and leave only after serving their
full tenure.

PRODUCTS OF PACKAGES LIMITED


Packages products are divided into four units.

21

BUSINESS UNIT - FOLDING CARTONS (FC)


The Folding Cartons (FC) production unit is as old as the Company itself
representing the culture and history of Packages Limited. It all started with
simple offset printing, cutting and creasing machines in 1957. Later, the
business grew and the Company set up a board mill for producing different
types of white boards which were then printed and converted through the
offset department. A professional sales and operations team was
instrumental in making this department a success and business expanded
over the years.
Packaging material is being supplied to tobacco, food, soap and detergents,
pharmaceutical, match and shoe industry. New hardware was added at
regular intervals to maintain and enhance the competitive edge. Back end
investments were made to improve the speed, turnaround time and quality
of the finished packaging.
TECHNICAL EXPERTISE
Computer-to-plate, laser cutting, creasing die making system and support
hardware was added and upgraded to maintain the competitive edge.
Another synergetic business that evolved and grew over the years is paper
cups both for drinking and ice cream. A full-fledged department in the
business unit equipped with European best cup making machines convert
our own food grade cardboard, polycoated in-house, printed and cut creased
into different shapes and sizes of paper cups. Another unique and
environment friendly activity of this department is 100% re-cycling of the
planned and process waste of board, i.e. the basic raw material.
Keeping up with the growing demand of specialized and high quality tobacco
packaging, two new roto gravure printing machines with cutting, creasing
and embossing facilities have been added. Both the offset and rotogravure
lines have an annual conversion board capacity of 30,000 tons. Business Unit
Folding Cartons with a strong back integration, state of the art hardware, and
22

in-house press facilities, dedicated, qualified and professional trained


manpower is geared to provide high volumes, consistent quality and value
addition at a competitive price.

INDUSTRIES

Food and Beverages


Soap / Detergent
Pharmaceuticals
Match
Electronics
Shoe
Tobacco
Paper Cup

23

BUSINESS UNIT - CONSUMER PRODUCTS


We provide a range of Tissue paper products to serve and support the need
of disposable cleaning. Our aim is to provide convenience for a hygienic
lifestyle by innovating products that contribute to diverting dirt and germs
away from you, give you daily confidence and keep you at your best. We
have been delivering our brand promise of uncompromised quality for almost
30 years and continue to lead the tissue category by offering premium tissue
products in several diverse categories.
TISSUE PRODUCTS

Facial Tissue
Tissue Roll
Kitchen Roll
Rose Petal Hi-jeen Hand Towel
Rose Petal Pocket Packs
Rose Petal Party Products
Wet Tissues

24

AWAY FROM HOME PRODUCTS


We also have a leading market share in the away-from-home business: we
supply custom-printed boxes, table napkins, coasters and paper cups to
institutions such as hotels, fast food chains, restaurants, businesses and the
airline industry.
INCONTINENCE PRODUCTS
We Market TENA Adult Diapers locally under a licensed agreement with SCA,
Sweden. SCA is the worldwide leader in the management of incontinence.
25

Providing products and services for individuals and healthcare services in


over 100 countries. TENA Adult Diaper promises unmatched quality in the
areas of leakage protection, comfortable fit, outstanding dryness, excellent
retention and odor control.

MECHANICAL FABRICATION & ROLL COVERS


Formed in the year 1957, the department has been providing services in
Packages to all the business units. Starting from the Paper and Board mill to
the Tissue line, we have been providing services for each of our top quality
products. Catering to the exceedingly growing rubberizing need, an in-house
fully equipped rubberizing facility came into being. After successfully fulfilling
all the technical requirements of the business units in Packages, we took a
leap forward and introduced our services to the market as well.

INDUSTRIES
Agriculture
Textile
26

Food & Beverages


Paper & Board
Printing (Roto, Offset & Flexo)
Inks Oils & Chemicals
Leather & Sports
HVAC
Pharmaceutical

Paper and Bored:


Packages Limited has been producing high quality paper and board since
1965 using environment friendly manufacturing processes. They specialize in
making a variety of duplex boards and paper. Their products are tested for
high performance in terms of strength, stiffness and gloss. From coffee cups
to books we read, from Tetra Pak juice containers to huge shipping
containers, paper and board products touch our lives in a thousand ways
every day.

Paper:
Paper quality and weight is determined by the clients specific requirements
and Packages ensures this is carried out to the exact specifications provided.
Some of the paper produced by Packages Limited includes:
High gloss writing paper
Special poster paper/ machine glazed
Liner for shipping cartons
Wood-free writing/ printing paper

Board:
Packages Limited manufactures several types of boards. Food Board, a basic
raw material in liquid food packaging, is being manufactured since 1979 for
Tetra Pak Pakistan Limited. This material is used for making aseptic
packaging for milk, cream, oil, fruit juices and other perishable food items.
Some of the board products of Packages Limited include:
Liquid packing board
Food grade board
Duplex board/chipboard
27

Bleached board/liner board


Cardboard/ tobacco board

FLEXIBLE BUSINESS UNIT:


With improved barrier properties and lower cost compared to rigid
packaging, flexible packaging is steadily gaining importance in the packaging
industry. The flexible line makes high quality packaging films and laminates,
and offers other specialized services such as rotogravure printing and sleevemaking.
Flexible packaging combines different plastic films, aluminium foil and paper
to produce laminates of two or more layers for providing layered protection
against moisture, gases and odours. Used where colourful package design
and preserving product quality are important, such as in the food and
pharmaceutical industries, flexographic printing offers economy with quality.
Some of the products where the flexible packaging is used are as follows.

28

DEPARTMENTS / DIVISIONS
In the company, there are various productions, service, support Divisions and
their respective sub-departments, which are as follows:
Paper & Board Division
Straw and Linter Preparation, Cooking House, Bleaching House, Chemical
House, CRP, CMTP, ETP, Waste Paper Plant, Beater House, Machine House,
Quality Control, Finishing House, Maintenance and Instrument.
Business Unit- Carton
Offset, Cutting & Creasing including Die making, Lemanic, Folding & Gluing,
Planning Cell Offset Department.
Business Unit- Prepress and Logistics
Art & Camera, Reproduction, Paper Stores, Coating, Dispatch Section,
Planning Cell- Prepress Departments
Business Unit- Flexible

29

Flexible Packaging, Paper Conversion Departments and Planning (FC/FP)


Corrugated Division
Planning, Conversion Section & Sheeting Section
CPD Production
PM-IV, Tissue Conversion
Technical- Power
Electrical Department, Air Conditioning Department, Steam Power Plant and
Diesel Power Plant
Technical-Mechanical
Mechanical Workshops & Design Department, Civil & Carpentry

Marketing Division
Sales Office Lahore, Karachi, Islamabad
Consumer Products
Sales Office Lahore, Karachi, Islamabad & Multan
Finance
Financial Accounts, Cost and Tax, Internal Audit, Accounts and Shares
Department Karachi
Commercial
Local Purchase Section, Imports Section and Commercial Office, Karachi
Stores & Inventory
Central Stores Packaging and Paper Board, Waste Disposal and Transport
Industrial Relations
30

Industrial Relations, Labor Welfare, Time Office/Establishment and Legal


Section
Human Resource Development
Administration & Liaison
Public Relations, Gate Office, Security, fire Fighting / Safety and Horticulture
Information Technology
Operations, Development and Network
Quality and Environment System
Industrial Performance, safety, Health and Environment
Research Development and control
Laboratory, Rubber Section & Quality control Pkg.

Medical Unit
Packages Dispensary, 23-Gulber-III, Lahore

Chapter 2: MANAGEMENT PRACTICES AT PACKAGES

INTRODUCTION OF IR AND HR:


IR and HR are the back bone of framework of any organization. The success
of organization mainly depends upon personnel department, which not only
provides best human asset for an organization but also add to the value of its
performance.

31

In Packages, IR & HRD work in collaboration with each other. IR department


is directly headed by IR Manager who is autonomous in decision making
regarding factory workers, Union negotiation and recruitment of workers up
to grade I to V. While HR involves personnel activities for Junior Executives (JE
& above). The IR department consists of four sections.
1
2
3
4

Time Office (Packages, PBD)


Establishment
Legal Cell
Labor Welfare

HUMAN RESOURCE DEPARTMENT


HRD was established in 1995 and Mr. Nayab was the first HR manager. In
1997, Mr. Nayab Baig left Packages Ltd. and Mrs. Asma Javed took charge as
the HR manager. Currently, three people are running the HRD department
Mrs. Asma Javed- the HRD manager and HR executives Miss Saira Asif and
Miss Asma Yousuf. The organogram of HRD is given below

HRD Manager
HRD Manager

Asst. Manager
HR Executive
HRD

32

FUNCTIONS OF HRD DEPARTMENTS


Following are the functions of HRD department:
Recruitment and selection
Succession planning
Performance appraisal
Training and development
Assigning projects to internees

RECRUITMENT AND SELECTION


Packages is an equal employment opportunity employer. Human resource
department is responsible for the recruitment and selection of executives of
Packages. The complete process of recruitment and selection takes
approximately thirty days. It starts when HRD receives a request from the
departmental head for hiring new employee for a vacant position. On getting
informed the HRD department invites a wide pool of applicants through any
or all of the following mediums.
Newspaper
Vacancies are advertised in Lahore, Karachi and Islamabad's leading
newspapers like "Dawn, Jung and The News" on Sundays depending on the
post. The newspaper ad is designed by "Prestige" advertising agency
through which the ad is also placed in the newspaper.
Online Recruitment
Application

forms

are

available

online

at

Packages

website

www.packages.com.pk. Interested people can fill and submit them online.


Walk In Applicants
33

Interested people can personally drop their CVs at HRD department.


Educational Institutes
The HRD department conducts annual job fairs in various educational
institutes in which presentation about prospects and the company is given.
Packages also display its career opportunity notices on notice boards of
various universities.
Mail
Interested persons can e-mail their CVs to HRD department, which are
collected in a file and consulted whenever job opportunities for one or two
persons arise.
TYPES OF RECRUITMENT
Recruitment at Packages is both internal and external. If an executive
leaves the job, another employee of the organization through promotions or
transfer replaces him/her, however there is no concept of lateral entry in
Packages. Fresh graduates from reputable universities are hired in batches.
Entry is at management trainee level.

SUCCESSION PLANNING
Packages is a company that offers long term career opportunities to its
employees. There is no concept of lateral entry in Packages. An individual
begins his career as a management trainee. Management trainee is trained
and groomed according to the company's requirement. As the individual
grows and shows his potential, he is considered for higher vacant post for
which he is transferred or promoted. The following are the grades of
employees in Packages:
Manager II & above
Manager
Executive I
34

Executive II
Executive III
Management Trainee
For succession planning, a panel meeting is held annually where a list of
employees for promotion is evolved. The panel comprises of:
GM
DGM
HR manager
Head of respective department
The panel holds discussions about employees of departments. The panel
discusses various issues regarding employees like strengths, weaknesses,
qualification, performance, experience, seniority, and suitability for the
position. These discussions are then recorded and reviewed periodically so
that action can be taken accordingly.
PROCEDURE
When a need for external executive recruitment arises, it is communicated
via departmental head along with the requirements to the HRD department.
The HRD department advertises in newspapers and collects CVs of interested
persons from mail and internet. The eligible applicants are listed according to
their merit, which is calculated through a formula. The number of applicants
to be called for the written test varies according to the number of vacant
posts and is strictly on merit (at least the HR Manager says so). Candidates
are invited for written tests via mail through courier or e-mail at least five to
ten days prior to the test. The HRD department decides the date and venue
of test. The candidates are provided with the information about the pattern
of test, which carries 100 marks. The test consists of the following parts:
Qualitative skills
Quantitative skills
35

Writing skills
Technical knowledge
IQ
The successful candidates are informed via mail, e-mail (and telephone call,
if urgent) about the interview. However, the candidates who fail the written
test once are not given a second chance for the same vacancy.
The first interview is called "preliminary interview" which is conducted by a
panel of managers to access the potential of candidates. It takes
approximately 15 minutes for the panel to interview a candidate. The panel
consists of 4-6 people. HRD department is responsible for constituting the
panel,

which comprises

of HRD

manager and a

team of

relevant

departmental heads.
The final interview is a goal-oriented conversation in which the most
promising candidates appear. In the second interview, GM makes the final
selection and his decision is considered to be final. During the interview the
HRD head accompanies GM. The last step is the candidate's medical
examination, which is conducted by Packages clinic Gulberg. Those
candidates who pass the medical test are sent an appointment letter at least
one week before the joining date whereas the unsuccessful candidates are
sent regret letters.
ORIENTATION
Packages Ltd. has a well-planned orientation program. In order to acquaint
the

newcomer

with

the

organizational

culture,

functions

of

various

departments and their locations, the newly recruited employee attends a 4-6
weeks orientation program designed by HRD department.

36

STEPS IN RECRUITMENT AND SELECTION


ADVERTISING

Getting the ad designed


Communicating with newspaper

RECRUITED INDIVIDUAL

WRITTEN TEST

Make a list of applicants


Calculate their merits through a
formula
Calling the candidates for written

R
E
J
C
T
E
D

PRELIMINARY INTERVIEW

Calling successful candidates for


preliminary interview
Constituting the panel for
interview

FINAL INTERVIEW

Informing successful
candidates about final
interview
Conducting final interview

A
P
P
L
I
C
A

MEDICAL TEST

EMPLOYEED
INDIVIDUAL

N
T
S

ORIENTATION

37

PERFORMANCE APPRAISAL
Performance appraisal is a periodic review or evaluation of an individual job
performance. It is always a continuous process. In Packages Ltd.
Performance appraisal is conducted annually
The employees in connection with their respective managers set their
objectives at the beginning of the year (MBO), and they are evaluated
against these objectives at the end of the year.
The new management trainees are evaluated quarterly by their
immediate supervisor
The employees are evaluated sixty percent against the set objectives
and forty percent against different attributes like personal behavior,
leadership

qualities,

and

decision-making,

vision

and

innovation/initiative competencies.
Performance appraisal is used here for succession planning, selection,
HR development, career planning and development, assessment of
employee potential.
Performance appraisal is used to evaluate
behaviors
task outcomes
improvement potential
training needs evaluation

38

PERFORMANCE APPRAISAL PROCESS


Identifying
specific goals
(MBO)

Establishing
job
expectations

Examining
work
performance

Appraise
performanc
e

Discuss
appraisal with
employees

Give training
for
deficiencies
39

TRAINING AND DEVELOPMENT OF EMPLOYEES

How do we develop our strengths? Through learning. People develop the


most when they are able to identify and cultivate their individual strengths
and are provided with the right support and encouragement to do so. This
philosophy lies at the core of our training and development programs.
We have an institutionalized in-house training function, reflecting our
commitment to building a workforce culture where all employees have
access to personal and professional growth opportunities. Staff at all levels is
encouraged to participate in these development programs. In-house training
courses and workshops are regularly organized: some recent topics included
Communication
Skills,
Time
Management,
Leadership,
Language
Improvement, Productivity Enhancement and Development Course for
Supervisors.
We send approximately 60 to 70 employees abroad annually for training
purposes, while over 300 persons are trained locally every year.
Adult education classes are held regularly for the workers' benefit.
EXTENDING THE LEARNING CURVE
Packages has entered into partnerships with both local and foreign training
institutions.
The Harvard Business School of Harvard University offers some world
renowned training programs for senior managers, such as AMP (Advanced
40

Management Program) and ISMP (International Senior Management


Program). Participation in these programs is a complete management
development experience, and Packages has provided nearly a dozen senior
managers the opportunity of sharing their knowledge and expertise with
senior business executives at these programs.
Packages has also been sending its technical delegates to various industrial
fairs and exhibitions, such as Paper World, DRUPA, IPEX etc. held regularly in
different countries.
LOCAL ASSOCIATION
Packages has entered into partnerships with both local and foreign training
institutions.
Packages makes full use of training facilities provided by reputed local
institutions such as LUMS (Lahore University of Management Sciences),
Pakistan Institute of Management (PIM), and Management Association of
Pakistan (MAP). Recently, Packages entered into a learning partnership with
LUMS and jointly developed a unique in-house training program called
Diploma in Business Management (DBM). The program comprises 13
modules on traditional management such as HR, production, finance, and
contemporary trends such as customer service, and lasts from 15 to 18
months. This program represents the first partnership of its kind in Pakistan
between an educational institution and a business enterprise.
These training opportunities also send an important message to all aspirants
in the company - that personal growth is only possible through professional
development.

COMPENSATION AND BENEFITS POLICIES

41

Your job is an important part of your life, and to do it well, you need an
appropriate environment for your mind as well as your body. We like to make
sure that you do: our corporate culture emphasizes people, and the need to
satisfy their potential.
The attractiveness of any company's corporate environment can be gauged
by the employees it hires and retains. An impressive 42% of our employees
have been with us for more than 10 years, and almost 26% for more than 20.
This is just one of the reasons why you would consider Packages as a
prospective employer.
Another is the technical excellence of our employees. 33% of our employees
working as technical personnel have a bachelors or advanced degree. We
take pride in the diversity of our staff, with chartered accountants, MBAs,
engineers and even qualified lawyers on board.
For us, the resources running Packages are not the machines, but the people.
We do not seek employees. We seek people who will think, feel, express
themselves, learn, teach, and grow with us. Their growth is the company's
growth. That's how personal it is, for us. We have designed an impressive
range of facilities and services to free our people from worries and allow
them personal and professional freedom. These are just a few of the benefits
we provide for employee welfare:
Bonus - A cash bonus is paid annually to all employees.
Conveyance Allowance - This is also paid to all employees.
Employees are also offered the option of buying vehicles at reduced
prices.
House Rent Allowance - This is paid to all employees as a hefty
percentage of their basic salaries.
42

Employees' Old Age Benefit Scheme - The Company contributes a


percentage of workers' wages towards this government scheme, which
ensures a reasonable pension on retirement.
Subsidized Food - The Company has extensive cafeteria facilities
which serve breakfast, lunch and dinner to all employees at highly
subsidized rates.
Employees' Children Education - The Company pays an education
cess to the government to ensure free education up to high school
level of at least one child of each employee, subject to rules and
regulations.

QUALITY FOCUS

Manufacturing top quality products has always been our top priority. To
achieve this, we have implemented sound engineering policies which we are
constantly improving. Today, our idea of processes includes not only
manufacturing policies but also business and management processes.
43

Supporting these processes are stringent quality assurance procedures and a


comprehensive system of internal audits.
HIGHLIGHTS
Our organization complies with the ISO 9001 standard
Packages was the 6th company in Pakistan to adopt the ISO series as
its quality standard
We have 57 Quality Improvement Teams in various departments to
ensure continuous improvement focus in the organization
Key performance indicators (KPI) concept: Each division in the
company sets SMART (specific, measurable, achievable, recordable and
time-based) targets for the annual improvement of its key process
parameters, reviewed by the management every quarter
We have a comprehensive set of engineering tools, rules, processes,
training materials, guidelines, best practices and other supporting
documents to make sure our products comply with every possible
customer requirement.

DETAILS OF ISO & HACCP CERTIFICATION


ISO 19001:2000:
Business Unit Flexible (BUF) in 1995
Business Unit Carton (BUC) in 1997
Consumer Products Division (CPD) & Tissue Line (TL) in 1998
Business Unit Corruwall Products (BUCP) in 1999
Pulp, Paper and Board Mill (PBM) in 1999
ISO 19001:2000:
Business Unit Flexible (BUF) in 1995
Business Unit Carton (BUC) in 1997

44

Consumer Products Division (CPD) & Tissue Line (TL) in 1998


Business Unit Corruwall Products (BUCP) in 1999
Pulp, Paper and Board Mill (PBM) in 1999
ISO 14001:2004:
PBM in 2006
BUF, BUC, CPD, TL and BUCP in 2007
Food Safety & Hygiene Systems (HACCP):
BUF in 2007
BUC in 2008

QUALITY POLICY
Packages Ltd. is strongly committed to produce quality products that
conform to customer's requirements at a competitive price.
We shall continually improve our Quality Management System and
quality performance of all business processes.
We shall set quality objectives at all levels and allocate appropriate
resources to achieve them.
We shall ensure all our employees are well aware of company's Quality
Policy and are motivated to apply it in their areas of responsibility.

Chapter 3: OVERVIEW OF THE INDUSTRIAL RELATION


DEPARTMENT
HR and IR are interlinked with one another; they are considering the
backbone of the organization. The success of an organization is dependent
upon a successful personnel department. The prime objective of this
45

department is to manage and utilize the human resources in a profitable


manner.

Hierarchy of IR Department

INDUSTRIAL
RELATIONSHIP

LAW

ESTABLISH

COMPENSATIO

INCENTIVE

TIME
MANAGEME

WELFARE

SALARY

WAGES

WEEK 1
Establishment Wing:
Mr. Abdul Gaffar ( Assistant Personnel Officer Establishment)
46

Mr. Waqas Khan ( Assistant Personnel Officer Establishment)


It is the important wing of the department and is performing important
functions. It keeps the records of the employees. It plays an important role
between the employee and management.
After test and interview file is passed to this section. Employee personal file
is kept by this section right from their hiring till end of their service.
The file is consisting of the test which employee gives for the job,
appointment letter, personal information, medical fitness report, copies of
educational documentation and joining letter. The file documents keep on
increasing and updating like transfers, allowances, termination, resignations,
increments and many more.
All the information of employee is entering into the system, the software
they are using is SAP than software allocates the employee number.
Identity cards are prepared for all the employees either permanent, contract
or temporary.
Internee card are also prepared by this section.
If an employee is absent for ten days or more than ten days without leave
then he is issued a letter of charge which follow in the different category
an absence report is delivered than a letter of charge so after that an inquiry
is conducted against that member after the result of that he may be
terminated or dismissed or a warning letter will be issued. The employee is
given the 4 warnings against its absent.

47

WEEK 2
Incentive Wing:
Mr. Tariq Saeed (Personnel Officer)
Mr. Shafqat Ali (Establishment Assistant)

Incentives are for those labors working in production or unit, it is calculated


when the given target overdoes from the target assigned to them.
Manufacturing units record the targets on the production card.
Specific
incentive formula is set for calculation. The formula is:

Production * 100 /Base Rate * Running


time -100

At this wing work is done in different steps which are:

Cards are arranged date vise.


Than they are arranged shifts vise i.e. (1st, 2nd, 3rd).
Next step arranged machine number vise.
Batch cards are attached with the cards on which date, dept. Code,
and shift have to be mention.
Last but not the least, on batch card the each shift data has to be
mentioning the total number of cards in the shift and total
production.
The data is entered into SAP.
Data is entered into two period of month i.e. first period is from 1 st
to 15th and second period is from 16th to end of month.
Each employee incentives cards are prepared.
Statements of production of worker are sending to their
departments after 15 days for the verification.

48

WEEK 3
Salaries and Wages Wing:
Muhammad Raiz Adil {Personnel Officer Establishment, Bulleh Shah
Packages (Monthly Staff)}
Younas Mehmood {Personnel Officer Establishment, Packages Ltd
Lahore (Monthly Staff)}
Athar Hussain {Establishment Assistant, Packages Ltd Lahore (Hourly
Staff)}
By using the system the performance of the labor force is easily evaluated.
As the pay of an employee is directly proportional to the time worked, it
enhances the motivational level of employees. It is the largest wing of the
department and is performing important functions. It keeps the records of
the employees, calculates the wages and salaries, for employees. The record
keeping is very scientifically organized. There are two types of employees in
Packages.

Employees Working On Monthly Basis.


Employees Working On Hourly Basis.

Employees working on hourly are X1 and on salary are X2, X3, and X4.
X1
A, B, C, D (WORKERS)
P, P2, P3

X2
1 To 5 (WORKERS)
JE, JE1 (EXECTUIVES)
E, E1,E2,E3

X3
M
M1
M2

X4
M3
M4
GM, MD

TECHNICAL
TE, TE.1,TE.2,TE.3,TE.4,TE.5,
TE.6,TE.7,
PROCESS SPECIALIST
S1, S2, S3

Temporary Workers:
Workers on hourly basis get their wages through a card that contains the
starting time of work and ending time. The work is noted through punching
49

machine. The total working hours of employees are calculated and payments
are made to them.

Monthly Staff:
A gate pass is issued to the employees if they go out of the factory for any
personal/official work. They submit the gate pass to gate office; than a gate
pass is sent to the time office so over there data is enter into the system. A
gate passes are set into three classes i.e. are short leaves, officials and
overtime. If the gate pass time exceeds 8 hours, a leave is deducted from
the employee record of that employee who is paid on monthly bases. On
daily basis gate passes are checked and enter in system.
Employees are given different types of leaves which have different codes, so
a code helps when the data is transferred to the system. Daily the data is
enter into the system, the section is using the SAP and Time Wizard
softwares. The following are the leaves which company is offering to their
employees.
Leaves
Annual leave
Casual leave
Medical leave
Special leave
Rest
Tour
Leave w/o pay
Social security leave
Absence
Medical leave full
Medical leave half
Special leave 25% Gross
Special leave 50% Gross
Special leave 100% Gross
Compensatory leave

Code
0100
0200
0300
0400
0500
0600
0700
0800
0900
1000
1001
2000
2001
2002
5000

When all three leaves (annual, casual and medical) of the employee will be
nil, if he want medical leave then he will be given the special leave 25%,
50% or 100%. If the employee who is on contract does not inform about his
50

leaves then he will be consider absent and his salary would be stopped. All
types of leaves are checked before running the salary of employee.
Final Settlement:
It is also prepared by this section. When employee is retired from the job he
is paid the salary of next three months. All the allowance are also paid like
house rent, conveyance and many more except the telephone allowances.
The total numbers of annual leaves left are also paid to the employee by
calculating through this formula i.e.

Gross Salary /Total days of month *Annual


leaves left

WEEK 4
TIME OFFICE WING:
It is the largest wing of IR department and performs most of the HR
activities. It keeps the record of employees; calculate wages and salaries and
marks the attendance of the employees. The system of record keeping is
electronically organized in data management system (SAP).
There are two types of employees in Packages:
1 Employees working on monthly basis
a Permanent
b contractual
2 Employees working on hourly basis
a Temporary (for 85 days)
b Shift workers
Hourly workers get their wages through a card system, which contains the
information of all shift timings of entry and exit, overtime and fortnight
attendance. This information is noted through punching machine and
manually done and verified by immediate supervisor or shift in charge. Thus

51

total working hours are determined and wages are paid according to card
information inscribed on it.
Gate passes:
A gate pass is issued to the employees if they go out of the factory during
working hours for any personal / official work. This gate pass is duly signed
by the concerned supervisory authority and is shown to the gate office
before leaving the premises. These gate passes are then sent to the time
office on next day where personnel officers check them in their Time Wizard
attendance system.
This system gives workers flexible hour of duty and their performance
improves. Moreover, the accuracy in payment is ensured because the pay of
employee is directly proportional to the time worked.
Incentive for Production Workers:
Moreover, there is a sub-section of payroll process i.e. incentive allocation
section. Incentive that is paid to the production workers based on production
volume. If exceeds from the given target, incentive is added to the account
with a specific percentage and distributed among workers of that shift. A
production card is used to enter the information about shift timing, machine
number, and department, number of workers with their personnel number,
target production and actual production. They are then sorted out shift and
machine wise and a batch production card is put on a single batch
production. The data is entered to the system and which is automatically
added to the account of workers.
Leave Processing:
The leave submission or grant of leaves is done through a leave application
form, which is signed by the immediate supervisory authority and sent to the
time office. The personnel officers enter the leave to the system of personnel
52

management. Thus the leaves deduction is also done when salary process is
executed. All these activities are performed by junior personnel officers of
payroll section X1 and X2.
Leave entitlement:
Annual leave (14 for workers up to J.E (with pay), 16 for Executive and
managerial staff) can be availed for more than 3 days at a stretch only
after confirmation.
Casual leave (10 with pay) can be availed for more than 3 days at a
stretch only after confirmation.
Medical leave(8 with full pay, 16 with half pay)
Hajj leave(30 days)
Compensatory leave(1 for working on rest day, 2 on doing work on Eid
and other Festivals( @ double the rate of hourly wage)
Maternity Leave(45 days preconifinement, 45 days post confinement )

WEEK 5
LEGAL CELL:
Legal wing is responsible for the legal issues and labor union policies. It also
strives to resolve and arrange the conflicts between management and union,
management and government institutional bodies legal requirements. This
section conducts all the legal and disciplinary actions.
The legal wing is mainly concerned with the following activities.
Individual Grievances handling
Handling Misconduct
Negotiations with Union
Contracting Legal Advisor for Company cases.

53

The mostly used application of Laws at Packages is

Industrial Relations Ordinance 2002

The Industrial and Commercial Employment (Standing) Ordinance 1968


Process of Grievances Handling:
Following can be the cases when an employee has to be handled as per law.
Willful insubordination & disobedience to legal and reasonable order of
supervisor.
Theft, frame, dishonesty.
Willful damage to or loss of employers goods or property.
Bribing
Absence without leaves for ten or more days.
Habitual late coming.
Habitual breach of any law applicable
Improper behavior during work hours.
Habitual negligence.
Frequent repetition of any act on omission referred to in clause 1
Striking work or inciting others to strike in contravention of the provision
of any law or rules.
Go/work slowly.

54

WEEK 6
LABOR WELFARE:
This wing is very much active in maintaining relationship of employees and
management and to do and initiate a lot of activities for the welfare of
workers and employees. It supervises the following areas.
1 EOBI/ESSI related issues
2 Fair price shop
3 Training and development & Apprenticeship
EOBI:
Welfare office deals with and follows the Employees Old Age Benefits
Institution Act 1976. Following are the benefits that are being offered to the
employees in Packages in accordance with the Act.
Employees Old-Age Pension Scheme:
All the employees shall become members of Employees Old-Age Pension
Scheme that is set up by the Government and shall be entitled to pension
after attaining the age of 58. The company contributes 5% of an employees
minimum wages/salary (6000 Rs.), 1% from the employees toward this
scheme.
Formula for calculating the Pension is as follows:
Pension =

Total years of Insured employment x Avg. wage of last

year
50
Invalidity Pension:
An insured person who suffers invalidity shall be entitled to get invalidity
pension at prescribed rates.
55

In case of total/ partial, temporary/ permanent disablement employee is


given Invalidity pension which he become entitled on medical ground (on
loss of 67% of functional capability).
Survivors Pension:
In the case of death of an insured person while in insurable employment but
after he had completed not less than 36 months insurable employment, the
surviving spouse, if any, shall be entitled to a pension equal to life pension
50% of the pension of such person.
In case of death of the spouse the children i.e. daughters and son are
entitled to get the pension at a rate of 20% till attaining the age of 18 years
or till the daughter gets married.
Fair Price Shop:
The company is maintaining Fair Price Shop wherefrom employees up to
supervisory level can purchase commodities of day-today use. It is operated
on no profit no loss basis.
Educational Scholarships:
In order to assist the employees to meet the educational expenses of their
children, the management is giving scholarships as follows:
F.A/F.Sc
2 years certificate courses

8 scholarships Rs. 400.00 p.m. for 2 years


6 scholarships Rs. 400.00 p.m. for 2

years
B.A/B.Sc.
B.Sc. (Hons.) /BCS

6 scholarships Rs. 500.00 p.m. for 2 years


2 scholarships Rs. 600.00 p.m. for 3/4

years
Three years diploma courses 6 scholarships Rs. 500.00 p.m. for 3 years
56

Graduate engineering

6 scholarships Rs. 700.00 p.m. for 4

years
Post- graduation

6 scholarships Rs. 700.00 p.m. for 2 years

Special children

2 scholarships Rs. 150.00 p.m. up to Matric

Apprenticeship:
In Packages 2% of the total employees has to work as apprentice. To
maintain a minimum level of performance in the organization. This purpose
of this is to develop skills in workers. This is usually offered to the workers
offsprings. This is for a period of 3 years.
First year:

6 months education (TVETA)


6 months internship (Packages)

Second year:

6 months education (TVETA)

6 months internship (Packages)


Third year: 12 months internship.
The apprentice are given stipends details of which is as follows:
First year:

50% of gross for the grade

Second year:

60% of the gross

Third year: 70% of the gross.


Company also provides them with following facilities, Medical, Books,
Uniform, and Instrument with 5% from the bonus at the end of year.
Hajj Facility:
Every year 6 from non- management staff and 2 from management
staff are chosen through balloting to perform hajj on Companys expenses.
57

Service Award:
On the completion of 20 years (5000 Rs), 25 (10,000 Rs) and 30 (12
months gross salaries) years service, Company gives the mention gifts and
the Certificates as a token of its appreciation of continued association and
loyalty of employee with management.
Canteen and Mess:
In order to ensure wholesome and quality food, the management is operating
Canteen round the clock. Not only lunch/dinner but also light snacks for the
third shift are served. The food is served at subsidized rates and employees
have to pay a very nominal price. There are four types of mess and charges
against them are:
Workers mess
Junior mess
Senior mess
Executives mess

0.65 paisa
1/- per meal
2/- per meal
132/- per month deduction.

In case of leave/ outstation duty or change in shifts the member concerned is


allowed proportionate reduction in bill.
Social Security:
The most important function of company is to give medical facility through
social security. Before 1 July 2008 every worker with pay scale 5000/- or
177/- per day wages is entitled to the social security. Now this pay scale is
changed to 10,000 rupees. A form is issued which, after various counter
signs results into issuing social security card to the worker and he/she gets
benefit of free medical facility. Company pays 6% of their wages/ salary as
contribution to the social security institution, which provides medical
coverage to employees and their direct dependents. In case of total/ partial,
58

temporary/ permanent disablement employee is given Invalidity pension


which he become entitled on medical ground (on loss of 67% of functional
capability).
Death Grant:
According to this scheme when the employee died during his employment
300,000 rupee is given to his spouse. And on the death of the employees
dependent he is given an amount of 5000 for the funeral after the
presentation of the death certificate.
Marriage Grant:
The employees are given a marriage grant on the marriage of their two
daughters an amount of 50,000 rupee. For this the employees has to present
the marriage certificate and copy of social security card.
Medical Allowance:
The employees who dont want to avail medical facility from Gulberg
dispensary of Packages Limited can apply for medical allowance. Once he
adopts the allowance he / she can change it after the date of 1 year.
Excursion:
Employees up to JE grade are given a reasonable allowance to assist them in
undertaking a recreational trip.
Sports:
The management strongly believes in the maxim a healthy body has a
healthy mind. It has facilities for practically all the sports and tournament is
held every year and the winners as well as the losers are given handsome
prizes. In the same spirit, management arranges a family Mela for the
families of workers. The prizes for the annual sports are distributed in a gala
function, which is arranged for this very reason.
59

Uniforms:
All workers except those working in office are given uniforms along with foot
wears.
Rest house:
Packages always care for their employees and they provide them opportunity
to enjoy their holidays. By providing they rest house in Muree. Every year
information is circulated to all the departments to submit the details of the
employees who want to avail the rest house during the summer season.
Balloting is done and date and duration of the stay is informed to the lucky
winners. Stay is for 4 days and nothing is charged from the employees. This
facility is for the J.E, Executive and the Managerial staff.
The rest houses are:
Rest house for Managerial staff: Senior Rest House Muree 49 Hall Road.
Rest House for executives: Kuldana Rest House Muree.
Rest House for J.E: Junior Rest House Muree 48 Bank road Muree.

SAP APPLICATION IN HUMAN RESOURCE MANAGEMENT


FUNCTIONS
IR department is partially automated with SAP system. It has a complete
module of personnel administration. Whole record of newly hired employees
to packages family and existing employees is kept maintained and updated
in the system. Salary or payroll process is maintained and entered in the
system which increases the efficiency and effectiveness of the HR functions.
The work is more error free, reliable data which at any time can be retrieved
through its auto generation of information reports.
Limton attendance system, which was introduced by the Limton Group Of
Companies, is made compatible with SAP system so that the attendance
system acquires the necessary data from employment record. Thus, the
whole integrated system has made the Packages a centrally controlled
60

automated system which has increased the working capacity, coordination


and ranked it a technologically adaptive learning organization.

Chapter 4: SWOT ANALYSIS OF PACKAGES

STRENGTHS:
Skilled workforce:
Packages enjoys an educated and skilled work force to perform its operations e.g. in
Industrial Marketing Department all new hired sales executives are MBAs

Large-Scale economies:
Since Packages is a giant setup, so it enjoys the economies of large-scale as well e.g. its fixed
cost is reduced as it is spread over more number of units.

Good will:
No doubt, Packages occupies a respectable and trustable image and market reputation,
serving as a valuable asset for the Packages.

Advanced Technology:
To meet the quality requirements of its customers Packages contains the latest paper
producing and packaging technology and most of machinery is imported from different
countries like Germany, USA, Switzerland, etc.

Advance Payments:
In most of the cases and especially from new customers, Packages deals with the payments in
advance. So it has to put fewer efforts to recover the payments.

Training:

61

In Packages employees are given necessary and comprehensive orientation before starting
the job. Moreover other training programs are also arranged to keep the skills of employees
up-to-date.

WEAKNESSES:
Slow

Information Flow:

Information flow between regional offices (of Karachi, Islamabad) and production lines (Lahore)
is not very quick, improper and manual i.e. by post normally.

Just Large Orders:


Packages production facility is inflexible, in a sense that it is unable to operate for small orders
due to increased fixed cost. In this way, a lot of small orders are rejected.

High Prices:
Packages deserve to charge high prices for its quality products but in this way, the companies
who are not financially sound or in development stage cant have access to the Packages.

OPPORTUNITIES:
1. There is a gradual increase in the awareness about Packaging importance among the
industrialists and they are really considering the packaging as the final sales person for the
products. So this awareness will bring more customers to the door of Packages.
2. Business activity and investment flow in also increasing day by day, so causing new business
opportunities for whole packaging industry.
3. Consumers and companies are becoming more conscious about the quality of the products
and Packages is quality leader in Pakistans packaging industry and having continuous
development plans for quality. So in near future it can bring huge revenues in the Packages.
4. Trend of sachets is also increasing day by day. Or in other words demand for flexible
packaging is increasing day by day.

62

THREATS:
1. Packaging (especially flexible or poly packing) negatively influences the environment
by increasing the wastes. So this is a real threat for Packages.
2. Due to latest printing technology, the demand for offset printing is decreasing day by
day which is a traditional printing mode used in Packages.

Chapter 5: RESEARCH PROJECT


Problem Development/Area of Concern
The area of concern in Flexible Business Unit of Packages is related to Human
resource
department.
This
business
unit
is
experiencing
high
attrition/turnover rate, and Packages is unable to retain its employees in
particular the Trainee Engineers.
As I have been an intern at Packages Limited, I observed that motivation
amongst employees is low, I often found the employees overburdened, at
times not interested in work and applying for other jobs. This built up my
interest in human resource management of Packages and while deciding my
research topic, I conducted various interviews with the HR Personnel of
Packages Limited and from there I learnt about this problem. At that time
(initial stages) the HR department was confused over this issue, even though
they had taken notice of it but they were still not able to figure out the
primary cause behind it. The major damage it was doing to the company was
that it made the company like a training institute in which employees were
getting trained and were leaving and joining the competitor firms right after
their training period. This had become a tradition of Packages but now the
HR department was taking notice of it as perhaps now they very well realize
that loss of human capital can harm the company in the long-run, even
though in the short-run everything looks bright.
Although the fact that trainee engineers' leaving frequently was not
highlighted by the company itself, but I got lucky to observe the
department's working for a few hours and get a better know how about the
working condition of the department. While interviewing the Flexible Unit

63

employees I discovered that it's not the labor class which is into leave the
company that frequently but the Engineers who are leaving rapidly.
On knowing this fact, I conducted several interviews with the present trainee
engineers and held telephonic conversation with trainees who left the
company in the past one year and gathered useful information to form the
basis of my research which will be discussed later in the study.

Objectives of the Study:


To help the company in addressing the issue of high turnover rate amongst
engineers in Flexible Business Unit
To identify the primary reasons behind high attrition rate of Engineers in
Flexible Business Unit at Packages limited
To assess if monetary benefits will play any role in decreasing the attrition
rate
To assess if fringe benefits will play any role in decreasing the attrition rate
To find out what are the engineers' expectations from the job and what they
are actually experiencing

Managerial and Academic value of research:


The managerial value of this research can be that first of all it can be used by
Packages Limited to address the turnover problem in Flexible Business Unit
and avoid spreading this problem to other business units. Various issues of
the trainees will be addressed in this research so the company can take
instant corrective measures. This research can also be used by managers in
other companies who are experiencing similar problem of high attrition rate.
On an academic basis this research can be used by students who plan to
investigate attrition issue in any company and can be a credible source and
reference for further study in research. Secondly with time and further
research in study, we might bring in new innovative schemes that can
resolve turnover problem in companies. Moreover this research will be based
on various other worldwide researches carried out on employee turnover
problem, so it will also sum up those researches.

64

Literature Review:
The issue of employee turnover all over the world has been widely discussed
in the empirical literature. Researchers have reported various reasons for
why employees leave an organization. This section summarizes some of the
research studies that have been done on employee turnover and is arranged
in an ascending order according to the year it was done in.
Employee turnover is a much studied research topic. There is a vast amount
of literature available on the causes of employee turnover dating back to the
industrial revolution. Researchers have developed multivariate models to
study various factors contributing to it and have empirically tested them to
find out the major reasons behind it. Price (1977) in his research defined
turnover as the cessation of membership in an organization by an individual
and their movement out of an organization.
Allen & Meyer (1990) investigated the nature of the link between turnover
and the three components of attitudinal commitment: affective commitment
refers to employees' emotional attachment to, identification with and
involvement in the organization; continuance commitment refers to
commitment base on costs that employees associate with leaving the
organization; and normative commitment refers to employees' feelings of
obligation to remain with the organization. Put simply, employees with strong
affective commitment stay with an organization because they want, those
with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to.
Allen and Meyer's study indicated that all three components of commitment
were a negative indicator of turnover. In general, most research has found
affective commitment to be the most decisive variable linked to turnover.
Griffeth (2000) re-examined various personal characteristics that may be
linked to turnover. They concluded that there were no differences between
the quit rates of men and women. They also cited evidence that gender
moderates the age-turnover relationship (i.e. women are more likely to
remain in their job the older they get, than do men). They also found no link
between intelligence and turnover, and none between race and turnover.
Hence there is little evidence of a person's gender being linked to turnover.
Griffeth also noted that noted pay and pay-related variables have a modest
effect on turnover. Their analysis also included studies that examined the
relationship between pay, a person's performance and turnover. They
concluded that when high performers are insufficiently rewarded, they leave.
65

Tang T. L. P., Kim J. W. & Tang D. S. H (2000), examined the relationship


between attitudes towards money, intrinsic job satisfaction and voluntary
turnover. One of the main findings of this study is that voluntary turnover is
high among employees who value money (high money ethic endorsement),
regardless of their intrinsic job satisfaction. However, those who do not value
money highly but who have also have low intrinsic job satisfaction tended to
have the lowest actual turnover. Furthermore, employees with high intrinsic
job satisfaction and who put a low value on money also had significantly
higher turnover than this second group. The researchers also found that
placing a high value of money predicted actual turnover but that withdrawal
cognitions (i.e. thinking about leaving) did not.
Elangovan (2001) examined that the notion of job satisfaction and
organizational commitment being causally related has not been incorporated
in most turnover models. His study indicated there were strong causal links
between stress and satisfaction (higher stress leads to lower satisfaction)
and between satisfaction and commitment (lower satisfaction leads to lower
commitment). He further noted a reciprocal relationship between
commitment and turnover intentions (lower commitment leads to greater
intentions to quit, which in turn further lowers commitment). In summary,
only commitment directly affected turnover intentions.
Abdul Rahman, S. M. M. Raza Naqvi and M. Ismail Ramay (2008) studied the
issue of turnover in IT firms of Pakistan in detail because they have seen a
high turnover during the past few years. The study revolves around three
variables including job satisfaction, organizational commitment and
perceived alternative opportunities. The study revealed that both job
satisfaction and organizational commitment had negative effect on turnover,
whereas perceived alternative job opportunities had a positive correlation
with intention of turnover. The study suggested that managers need to
increase job satisfaction to increase loyalty of the employees with the firm.
Martin C. (2003) in his paper "'Explaining labor turnover: Empirical evidence
from UK establishments", detected a complex relationship between turnover
and training. He suggested that establishments that enhance the skills of
existing workers have lower turnover rates. However, turnover is higher
when workers are trained to be multi-skilled, which may imply that this type
of training enhances the prospects of workers to find work elsewhere. The
literature on the link between lower turnover and training has found that offthe-job training is associated with higher turnover presumably because this
type of training imparts more general skills.
66

Research Question:

"Identifying the reasons behind high attrition


rate amongst the employees of Flexible
Business Unit at Packages Limited"
Explanation:
Once it was clearly indicated that this department is experiencing a high
turnover rate, I formed my research question as identifying the reasons
behind this high attrition rate. The literature review helped me indicating
various causes that may be related to this high attrition rate. I took into
account various articles that were indicating somewhat the same issues that
I observed from the initial interviews, for instance controllable and
uncontrollable factors investigated by Naresh Khatri (1999), pay satisfaction,
career opportunities, expectation-reality match studied by Meenakshi
Gupta(2000), intrinsic job satisfaction and attitude towards money examined
by Tang (2000), organizational commitment and perceived alternative
opportunities studied by Abdul Rehman and M.Ismail Ramay (2008). From
these I picked out the hottest issues prevailing at Packages Flexible Business
Unit. The research previously done on this HR issue highlighted various
determinants of this problem in various cases, and so that I don't miss out on
the major ones, I made a list of the sub questions that will be a guideline for
the whole research. The issues like monetary benefits, non-monetary
benefits, working environment, job satisfaction are addressed in these subquestions and they will be a part of the focus group as well as the
questionnaire to get a better feedback on all of these.

Sub Questions:
1. Are there any internal factors related to this high attrition level?
2. Is the attrition prevailing because of low monetary benefits?
3. Is the turnover increasing because of the work environment of this
department?
4. Will fringe benefits play any role to reduce the level of turnover?

67

5. What are the employee's expectations with the job in this department
and how they can be fulfilled so the turnover can be reduced?

Research Methodology:
To get the answers for my research questions, this is how I went about the
research:
Firstly, I collected data from the internet regarding the employee turnover
issues all around the world, this helped me forming the background of the
research and I came to know about various reasons why employees leave an
organization. I read various articles and researches done by various authors
to get an idea about the reasons that have been identified till now by the
researches on this very important issue. Secondary data was collected from
various websites including JStore and various other online research resources
that will appear in the references at the end.
The literature review helped me in gathering all such causes but at the same
time I never remained stuck to them, I was always aware of the fact that
there can be more to it, perhaps there might be some issues which were
never previously addressed that can emerge in my research.
Then I had an in-depth interview with the HR Assistant Manager Miss Fatima
Mehmood to identify what she feels about this problem. From there I
collected some factual information and got an idea about issues prevailing in
the department. Even though she was not so sure about the reasons behind
the turnover issue but was concerned over this issue.
Then I carried out a focus group with 3 trainees and 3 engineers to get an
open idea about their problems and got a better know-how about why their
colleagues left the organization. I also conducted telephonic interviews with
some of the engineers who recently left the department.
Sample Size: From these unstructured interviews, I made a structured
questionnaire entailing various questions about the work related issues,
monetary benefits, motivation, job satisfaction etc. I floated the
questionnaire to all the trainees, engineers and the managers of the Flexible
business unit and got it filled by 30 respondents in total.

68

From the filled questionnaire I tabulated the data and analyzed the research
results and came up with various interesting findings which will be of great
interest to the company in general and the HR department in particular.

Findings of the in-depth Interview:

6. Policy of not firing employees


7. Frequent job shifts from one department to another
8. High turnover amongst trainees
9. Highest attrition in Flexible business unit
10.
Trainee Engineers leaving frequently (2 out every 5 joining in
leave the firm)
11.

Basic pay of Rs.25000

12.

Authoritative jobs

13.

Family like working environment

14.

Health and safety at work considered

Source: (Interview with Fatima Mehmood, Assistant HR Manager)


Independent Variables:
Pay Satisfaction
Work Load
Fringe benefits
Outside Career Opportunity
Job satisfaction

69

Dependent Variable:
Intention to leave

DATA TABULATION AND ANALYSIS


Analysis Question 1:
The results to this question reveal that a very high percentage of the
employees in the survey are working at Packages for less than 1 year i.e.
53%, as most of them were trainee engineers. This in itself is an alarming
situation that a smaller percentage 47% fall under the category of more than
one year, which indicates that the level of loyalty amongst the employees
might be low or Packages is into injecting more fresh blood in the company.
None of the workers fall under the category of 7 or more than 7 years
working, which means that Packages might be missing out on experienced
individuals.
Analysis Question 2:
This question was particularly investigates if all the employees of flexible
department were there from the start or has there been rotation amongst
them. It revealed that Flexible business unit has more freshies in it as 67
percent of respondents fell under the category of less than 1 year, which
means a few of them are recently shifted to the flex department, hence more
trainees in this department. Again none of respondent fell in the category of
7 or more than 7 years working, and a very small 30 percent above 1 year.

Analysis Question 3:
This question produced a mixed response, but the weight fell towards the
positive side. It indicated that respondents are satisfied working at Packages
limited. Although 26 percent fell in the negative category but majority were
satisfied working at Packages Limited, which can be taken as a positive sign
for the company as a whole.
Analysis Question 4:
The result to this question further clarified the issue, a heavy majority
responded that they are not satisfied working at Flexible Business Unit, now
this can be a cause of concern, where at one point majority indicated that
70

they are satisfied working at packages limited, on the other hand the
majority was dissatisfied working at flexible business unit of the same
company, which indicates that something is certainly wrong with the
department's working.
Analysis Question 5:
When asked about the monetary benefits importance, that 87% considered it
either very important or important and only 13% considered it somewhat
important but none of the respondent went for not important or not at all
important. This can be very beneficial for the HR department as they can
motivate the employees with monetary benefits which are considered
important by them.
Analysis Question 6:
When questioned on non-monetary benefits, it produced a mixed result. But
again the majority 58% fell under the band from very important to somewhat
important, whereas 42% didn't consider it important. This indicates that
while choosing between monetary benefits and fringe benefits, the company
should give more weight to monetary benefits.
Analysis Question 7:
After getting a clasp of the weights attached with monetary and fringe
benefits, the respondents were questioned on the level of satisfaction with
the monetary benefits of their current job which produced interesting results.
Although majority of the respondents attached a high weight to monetary
benefits but the level of satisfaction with the monetary benefits of Flexible
business unit is low, as 60% were either dissatisfied or very dissatisfied with
the monetary benefits. This is a major cause of concern when respondents
attach a high weightage with monetary benefits.
Analysis Question 8:
When questioned about the fringe benefits of Flexible business unit, the
percentage of dissatisfaction was lower than that of monetary benefits, but
still the weight age fell towards dissatisfaction. 60% were not satisfied or not
at all satisfied with the non-monetary benefits. But this might not be a major
problem as importance attached to fringe benefits by the respondents is low.
Analysis Question 9:
71

When asked about the workload at Flexible unit of Packages 87% of the
respondents considered it as a heavy workload. This can also be referred to
the focus group findings where the respondents complained about late
sittings and remaining in touch with office work even after office time. This
issue certainly needs attention of the HR department as well as the
management of flex department.
Analysis Question 10:
This question was asked to judge upon the job satisfaction associated with
the respondents current job at flexible business unit, the results showed that
75% of the respondents disagree or strongly disagree with the statement
which means the job is not up to their expectation and they are also not
satisfied with their current job. Throughout the business education, we study
the importance of job satisfaction, if it's low then the motivation will also be
low and employees are likely to leave, so the issue of job satisfaction should
be addressed immediately.
Analysis Question 11:
This question was asked to measure the 'Intention to leave' of the employee
which showed positive results, majority of the respondents have an intention
to leave as 86% of respondents agree to the statement that they think about
quitting their job and only 14% disagree to the statement, which is a
dangerous sign for the department and the company as a whole.
Analysis Question 12:
When asked about opportunity of finding a better job, the response was
mixed, 40% considered it likely to find a job and 60% considered it not likely,
which means a heavy percentage fell towards the 'Not Likely' category. This
can be attributed to two factors, either to the economic conditions of
Pakistan and referring to the focus group where respondents said 'Stuck in
packaging field' whereas Packages is the largest packaging company in
Pakistan, so they might not be able to find a better job than the current job.
Analysis Question 13 & 14:
100% of the respondents were males. And 93% fall in the age bracket of 2130, which means a very high percentage is youth, who have an urge to earn
more and more, hence if not loyal and satisfied with their job, they are likely
to leave. Hence corrective actions are instantly required.
72

OVERALL ANALYSIS AND FINDINGS


In this section I will be taking into account all the findings of the research and
will be analyzing how they intermingle. Starting off with the final in-depth
interview with Miss Fatima Mehmood where she highlighted the facts like
Rs.25000 basic salary, taking into account the inflation rate prevailing in
Pakistan, the salary in itself is not sufficient enough for a graduate to meet
the basic needs.
It was also indicated by the study that health and safety at work is not an
issue behind the high turnover rate, as Miss Fatima said that family like
environment exists at Packages, but she didn't highlight that there are late
sittings in this environment because of which employees are really fed-up
and on reaching home they tend to receive calls from office which can be
really annoying and even at late night they have to keep a check on the
production, therefore they won't be living a very peaceful family life and the
balance between work and family life will surely be disturbed. This could be a
major reason why 2 out of every 5 trainees leave the firm within 1 year,
because they might not see a bright peaceful future with the firm in
particular this department.
It was also highlighted that the company doesn't have a policy of firing
employees until and unless there is a serious issue, hence there may be
frequent shifts which may be harmful for the company in the long-run as
they might not get the team work out of the departments.
The research produced another interesting finding where mostly employees
felt satisfied working at Packages limited in general but when asked about
Flexible business unit in particular the response turned out to be negative
and a heavy majority said that they are dissatisfied working in this
department, so the label of Packages does matter.
Although as much as 60% are dissatisfied with the fringe benefits, but the
importance attached to the fringe benefits is less compared to that of
monetary benefits so the company should also give more weight to
monetary benefits as 42% respondents didn't consider it important.

73

A majority of the respondents i.e. 60% took a negative view regarding an


outside career opportunity, which means they are pessimistic in finding a
better job but at the same time they are not very satisfied with their current
job, not only that the company has to think about these 60% but more
importantly they have to think about the remaining 40% who are of the view
that they can find a better job in the time to come.
My research also supported and negated various studies done on this topic
before, for instance it supported the study done by Naresh Khatri (1999)
which concluded that employee turnover is prevalent more due to poor
management than bad attitude of employees, this was very much seen in
the case of Flexible business unit of Packages Limited.
It supported Elangovan (2001) research who found out that there are strong
causal links between stress and satisfaction, so was the case in Flexible
business unit where heavy workload was leading to lower job satisfaction
and high intention to leave.
My study also supported Tang & Kim's (2000) research as they investigated
that voluntary turnover is high among employees who value money
regardless of their intrinsic job satisfaction, employees at Packages also
valued money and were dissatisfied because of lower monetary benefits
offered by the company.
It the same time my research negated Change E. (1999) study which proved
that role of career commitment was stronger in predicting turnover and when
individuals are committed to an organization they are less willing to leave,
but in case of Packages where although employees were satisfied working
with the company but not satisfied working in a particular department i.e.
flexible business unit, hence my study doesn't support his findings.
My research also negated Meenakshi Gupta (2000) research results which
showed that turnover perception and outside career opportunity were major
independent factors responsible for intention to stay in a company, but this
was not the case in Packages, as respondents didn't consider outside career
opportunity as a major factor behind their intention to leave the department.
To sum it up, all this explains that a very important element of the company
i.e. the Human Capital, which can be considered as the major strength of
Packages Limited is not very much satisfied with their jobs at Flexible
Business Unit, it presents an alarming situation as the loss might seem little
74

at present but can turn out to be a major disaster if the department keeps on
loosing employees at this pace.

CONCLUSION
In a nutshell, the study reveals a worrisome situation for the Flexible
business unit, where the intention to leave is around 86% which is rather
very high and needs immediate attention. The analysis reveals that amongst
the independent variables, pay satisfaction, workload and jobs satisfaction
are the ones which require immediate attention as they represent a strong
linkage with intention to leave.
A majority of the respondents attached a high weight to monetary benefits
but the level of satisfaction with the monetary benefits of quite is low, as
60% were either dissatisfied or very dissatisfied with the monetary benefits.
This is a major cause of concern when respondents attach a high score to
monetary benefits and has to be resolved immediately as the management
just have to make the salaries more competitive and no other rocket science
is involved in it except for giving a market rate.
Work load as indicated in the focus group as well is considered 'heavy' by
87% which is a huge majority indeed, therefore workload has to be
reconsidered and more staff needs to be hired. Moreover, job dissatisfaction
is a major concern, where 75% of the respondents are not satisfied with their
current job, which means there is a high gap between expectation and
reality, hence the job on the whole may have to be redesigned.
On the other hand 'Outside career opportunity' and 'Fringe benefits' are
amongst the one that can be addressed later on as the respondents attached
lesser weight to them, hence they are not amongst the grave problems.
Although outside career opportunity is an external factor, but making the
current job more lucrative, this variable can certainly be eliminated.
Once the monetary benefits will be enhanced, stress at work and after work
will be reduced it will enhance the job satisfaction, from which the working
environment will improve, the motivation level will increase and hence the
intention to leave will drop and so will the employees turnover.

75

RECOMMENDATIONS
After the whole research, I have come up-to certain recommendations which
I have divided in three part, short-term, medium-term and long-term
strategies.
Short Term Strategies:
Exit interview with the employees and trainee engineers leaving the
company, to better understand the problems they faced because of which
they are leaving.
Communicate effectively with the employee to understand their concerns.
The department must consider work-life balance issue and must not overload
employees with late sittings.
The company must do costing of employees leaving at such a high pace
(Both direct and indirect costs associated with the turnover)
Medium Term Strategies:
Packages must keep pay in line with the market rates to avoid high attrition
rate particularly in flexible business unit
They must offer an attractive benefit packages to the engineers.
HR department should recruit the employees effectively
Long Term Strategies:
The department should provide clear career path so that the employees
don't think about outside career opportunities.
Loyalties with the department and the company as a whole need to be built
so that the company doesn't loose upon precious human capital.
Source: (Ideas taken from Chapter.11 Managing Careers, Human Resource
Management 11/E by Gary Dessler) and IDS (2000), Improving staf
retention, IDS Studies No. 692, July 2000.

76

REFERENCES
http://www.packages.com.pk/company-profile.jsp
http://www.packages.com.pk/over-the-years.jsp
http://www.packages.com.pk/mission-statement.jsp
http://www.packages.com.pk/our-core-values.jsp
http://www.packages.com.pk/global-partners.jsp
http://www.packages.com.pk/folding-carton.jsp
http://www.packages.com.pk/paper&board.htm
http://www.packages.com.pk/policies-benefits.jsp
http://www.packages.com.pk/employee-development.jsp
Chang E. (1999), 'Career commitment as a complex moderator of
organizational commitment and turnover intention'
http://www.open.ou.nl/wpo-psy/OUNL-Work/APOscripties/VB_WPO/careercommitment.pdf
Elangovan (2001) 'Causal ordering of stress, satisfaction and commitment,
and intention to quit: a structural equations analysis'
http://www.emeraldinsight.com/journals.htm?articleid=1410608
Griffeth (2000), 'A Meta-analysis of antecedents and correlates of employee
turnover: Update, moderator tests, and research Implications for the next
millennium'
http://jom.sagepub.com/content/26/3/463
http://www.bizresearchpapers.com/Paper5.pdf
Allen N. J. & Meyer J. P. (1990), 'The measurement and antecedents of
affective, continuance and normative commitment on the organization'
http://workandbabies.com/wp-content/uploads/2009/11/allen-myer-1990.pdf
Liew Chai Hong and Saran Kaur (2010), 'A Relationship between
Organizational Climate, Employee Personality and Intention to Leave'
77

http://www.bizresearchpapers.com/Paper1.pdf
Martin C. (2003) 'Explaining labour turnover: Empirical evidence from UK
establishments'
http://www.blackwellsynergy.com/servlet/useragent?
func=synergy&synergyAction=showTOC&journalCode=labr&volume=17&iss
ue=3&year=2003&part=null
Meenakshi Gupta (2000), 'To Be Or Not To Be? A Study of Employee Turnover'
http://www.hicsocial.org/Social2003Proceedings/Meenakshi%20Gupta.pdf
Naresh Khatri (1999),'Employee turnover: Bad attitude or poor
management?'
http://www3.ntu.edu.sg/nbs/sabre/working_papers/12-99.pdf
Tang T. L. P., Kim J. W. & Tang D. S. H (2000) 'Does attitude toward money
moderate the relationship between intrinsic job satisfaction and voluntary
turnover?'
http://hum.sagepub.com/content/53/2/213.short
Zheng Weibo, Sharan Kaur and Tao Zhi, 'A critical review of employee
turnover model (1938- 2009) and development in perspective of
performance (2010)'
http://academicjournals.org/ajbm/PDF/pdf2010/29Dec/Zheng%20et%20al.pdf

78

You might also like