HUMAN RESOURSE DEPARTMENT OF ENGRO FOODS:

The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment
process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of
candidates are carefully filed and documented for current or future reference. The department,
besides carrying out succession planning, maintains and implements HR policies pertaining to
employment, retention and superannuation. Assessing training needs of employees and ensuring
adequate training is also carried out by the professional HR team at Engro Foods. The company
believes that the best way to become integrated into their organization is to start contributing to it
and to become accepted as part of its working community. For this reason the company
concentrates on:
Placing an employee in an initial job which starts to use strengths and matches stated interests.
Providing an orientation program which helps understand the Company and its Environment.
Introducing an employee early in the career to the people development system and giving him/
her feedback on own performance from the first year. In cases where traineeships are provided,
these are designed to bring employee up to the standard of skill and knowledge required in the
shortest practicable time. The principle of early job responsibility is followed wherever the
company can.

HUNAM RESOURCE PLANING

It is the process of forecasting demand & supply and making comparison. Or creating balance
between demand & supply. In the Engro foods they forecast it by two ways;

BUSINESS ORIENTATION
EXPERT OPINION
The forecasting is done on the above two basis. In the expert opinion the selection is done on the
basis of the opinion of the experts. Basically the bench of experts selects that how many
employees are required to them in the particular department. And they also decide that what
quality and what quantity of employees they are going to hire in the particular department.
And the other thing Engro foods adopts is the business orientation, the management of the
organization planed about the hiring of employees on the basis of the new work started in the
organization. For example as the Engro foods has started its 2nd production unit at Sahiwal so
that's why they are adopting the business orientation technique.

RECRUITMENT AND SELECTION

Recruitment and selection are the processes through which an organization takes in new
members. Recruitment involves attracting a pool of qualified applicants for the positions
available. Selection requires choosing from this pool the candidate whose qualifications most
closely match the job requirements.
In companies like Engro that function in a global environment we have to distinguish different
types of employees. Traditionally, they are classified as one of the three types:

PARENT COUNTRY NATIONAL

The employee's nationality is the same as the organizations. For example, an American citizen
working for an American company in Pakistan.

HOST COUNTRY NATIONAL

The employee's nationality is the same as the location of the subsidiary. For example, a
Macedonian citizen working for a Slovenian company in Macedonia.

THIRD COUNTRY NATIONAL

The employee's nationality is neither that of the organization nor that of the location of the
subsidiary. For example, an Albanian citizen working for a Slovenian company in Macedonia.

RECRUITMENT POLICY OF EFL

There are five recruitment channels of EFL.
Internal movement
Online-portal
Newspaper ad
Write ins & walk ins
Customize hunting

INTERNAL MOVEMENT
HR departments become involved when internal job openings are publicized to employees
through job positioning programs, which informs employees about opening and required
qualifications and invite qualify employees to apply. The notices usually are posted on company
bulletin boards or are placed in the company newspaper. Qualification and other facts typically
are drawn from the job analysis information.
The purpose of job posting is to encourage employees to seek promotion and transfers the help
the HR department fill internal opening and meet employee's personal objectives. Not all jobs
openings are posted .Besides entry level positions, senior management and top stuff positions
may be filled by merit or with external recruiting. Job posting is most common for lower level
clerical, technical and supervisory positions.

ONLINE-PORTAL
Now today nobody thinks anything without internet. So EFL give advertise on internet. EFL
most of the times use the online-portal for the recruitment of the employees.

NEWS PAPER ADS

EFL also place their ads in newspapers for the recruitment of the employees.

WALK-INS AND WRITE-INS

Walk-ins are some seekers who arrived at the HR department of EFL in search of a job;
Write-ins are those who send a written enquire .both groups normally are ask to complete and
application blank to determine their interest and abilities. Usable application is kept in an active
file until a suitable opening occurs or until an application is too old to be considered valid,
usually six months.

CUSTOMIZE HUNTING
EFL prefer foreign qualifier and students of LUMS.

SELECTION PROCEDURE IN EFL

The selection procedure in EFL consists of 7 steps;
Test (aptitude)
Interview (3 to 7)
Medical evaluation
Reference & background check
Offer
Placement
The selection in the EFL is done on the basis of above 7 steps. First of all an aptitude test is
conducted and the successful candidates are called for the interview and most of the times 3 to 7
interviews are conducted. The successful candidates in the interview are called for the medical
evaluation, that they do not have any serious medical problem. After it any reference of the
employee is checked, and the background of the employee is checked, they he or she doesn't
have any criminal background or have any problem in the background. If everything is clear then
he or she is offered for the job and if the offer is accepted the person is called for the job.

RECRUITMENT AND SELECTION

Resume Short Listed
Interview Selection
1st Interview
2nd Interview
Medical Test
Final Interview
Offers
Select

De-recruitment
EFL do not de-recruit because our business is started newly and It only recruit new employees
for the expansion of our business.

TRAINING AND DEVELOPMENT

The overall aim of the development function is to provide that adequately trained personnel in a
company are capable to fulfill their goals, as well as to contribute to better performance and
growth with their work (Armstrong, 1996). The development of employees can be treated as a
special field of human resource management that includes planned individual learning,
education, organization development, career development and training.

EFL ORIENTATION/INDUCTION
EFL make a plan for the orientation and induction of its new employees, most of the times a 15
to 30 days plan is created for the new employees. The new employee has to work with the
managers of the different departments in the organization. And the work of the different
departments is told to the employee. After the completion of the plan the feedback is taken from
all the managers and also from the employee. If the feedback is satisfactory then the person is
assigned its seat and he or she start doing his/her work. On the other hand if the feedback is not
satisfactory then the entire plan is repeated.
At the organization, human resource development professionals are responsible for:
1. Training and development of employees located in subsidiaries around the world,
2. Specialized training to prepare expatriates for assignments abroad, and
3. Development of a special group of globally minded managers.
Creation and transfer of international human resource development programs may be carried out
in two ways:
Centralized
Decentralized
With a centralized approach, training originates at the headquarters and corporate trainers travel
to subsidiaries, often adapting to local situations. This fits the ethnocentric model. A geocentric
approach is also centralized, but the training develops through input from both headquarters and
subsidiaries staff. Trainers could be sent from various positions in either the headquarters or
subsidiaries to any other location in the company.
In a decentralized approach, training is on a local basis, following a polycentric model. When
training is decentralized, the cultural backgrounds of the trainers and trainees are usually similar.
Local people develop training materials and techniques for use in their own area.
EFL most of the time use the decentralized approach in its organization.

To maximize training effectiveness, it is important to consider how trainees learn most

effectively. Cultural factors have a strong impact on training practices in different parts of the
world. For example, in North America, where power distance is small, the relationship between
the trainer and trainees tends toward equality. The trainer and trainees use first names, and the
trainees feel free to challenge or question what the trainer says. In Malaysia, where power
distance is large, a trainer receives greater respect. Students use his surname and title, and he is
an expert that students rarely challenge.
As global competition increases, it is increasingly important for successful companies to have a
group of managers with a global perspective. Companies must identify managers with global
potential and provide them with various training and development opportunities. For example,
having one or more international assignment(s), working on cross-national teams and projects,
and learning other languages and cultures contribute to making a manager more globally minded.
In addition, an organization should include not only parent country nationals, but also host
country nationals and third country nationals in this group.

ENGRO FOODS' TRAINING POLICY

There are three main policies for the training of the employees;
In house
External
Training need assessment
EFL most of the times use the external training for its current employees. The current employees
of the company are sent to the different seminars and organizations for the training purposes.

TYPES OF TRAINING IN EFL

There are two main types of training in EFL:

TECHNICAL TRAINING
It is given to the persons who work in the labor force or doing any type of technical work. Due to
change in the technology or any type of change in machinery, technical training is required to
those persons.

SOFT SKILL TRAINING

It is given to those persons who are working in the office. It is also called the development of the
persons. It is given to the middle level managers in the organization.

TRAINING
To get the outbreak team building experience, we send our employees abroad. Engro foods bear
many expenses for the training of the employees.

TRAINING NEED ASSESSMENT

Training need assessment
Department manager PADP Top management
Training and Development

PERFORMANCE MANAGEMENT
In companies, the performance evaluation is most frequently carried out for administration or
development intentions (Cleveland and others, 1989). For administration purposes, performance
evaluation is called for when the decisions on work conditions of employees, promotions,
rewards and/or layoffs are in question. Development intention of performance evaluation is
oriented to the improvement of the work performance of employees, as well as to the
enhancement of their abilities on the ground of the adequate training program and advising
employees regarding behavior in the work environment.

PADP IN EFL
In Engro Foods Ltd the performance evaluation is done on the basis of performance appraisal
development process. In EFL it has two parts;
In the first part at the start of the year the employee himself define the objectives for the whole
year and then lock these objectives to his or her supervisor and then start doing work on that.
In the second part at the end of the year the employee firstly define the objectives for the next
year and secondly performance evaluation is done by himself before it present in front of the
supervisor. That person evaluate that whither he has achieved his goal or not and then held a
detail meeting with the supervisor. They made a discussion on that objective and try to meet each
other points if the person is not satisfied or the supervisor is not satisfied then that person goes to
the top level management.
In EFL, performance appraisals are usually done yearly and use a standardized evaluation form.
Sometimes, the organization also requires supervisions to discuss the results of the appraisals
with each employee.

Performance evaluation is challenging for any organization. At the international level, the
complexity is greater because the organization must evaluate employees from different areas
working in different subsidiaries. The need for consistency across subsidiaries for performance
comparisons conflicts with the need to consider the cultural background of employees to make
the evaluation meaningful. Consequently, the delivery of a balanced performance review,
including both strengths and weaknesses, requires tact and delicacy.
As with other functions, the approach to performance evaluation depends on the organization's
overall human resource management strategy. A company with an ethnocentric approach is likely
to use the same performance evaluation process used at the headquarters for its subsidiaries.
Some companies translate evaluation forms into local languages, whereas others use the original
language everywhere. A company with a polycentric approach develops local procedures within
each country. Finally, a company with a geocentric approach uses the same performance
evaluation system worldwide, but it has universal applicability. Developing a global system is
the most challenging.

REWARDS AND REMUNERATION

Remuneration of employees has a key role in acquiring new employees and is important for
employees as well as for the employers. Pay is the basic resource of living of the employees,
while benefits cover better health care, the possibility of spending holidays in the company's
holiday facilities at a favorable price and also other advantages. The decisions the employers
make concerning remuneration are a factor that has an impact on the expenses of their company
as well as on the ability of selling the products at a competitive price in the market (Treven,
1998). The decisions about remuneration may also enhance the ability of the employer to
compete for employees on the labor market. The rewards he warrants make the standing
personnel either want to keep their jobs or quit.

EFL COMPENSATION PROGRAM

The compensation in EFL has two parts;
Salary
Incentives

SALARY
Salary in the EFL has the following components,
Basic pay
Home rent allowance (45% of the basic pay)
Utilities allowance (10% of the basic pay)
Conveyance allowance (10% of the basic pay)
Supplementary pay (23% of the basic pay)
The supplementary pay is the special pay given by the EFL to its employees.

INCENTIVES/ ALLOWANCES
EFL gives incentives to the employees of the field. Mean the field based employees are given the
incentives on the basis of their performance in the related sector. Greater is the performance
greater will be the incentives. Then the second thing is the allowances which are given to the
office based employees. Normally the allowances are fixed. From grade 11 to 19 it is Rs. 3000
and for 20 and up it is Rs. 8000.

BENEFITS
The benefits which are given to the employees by EFL are as follows;
Provident fund (10% of the gross basic pay)
Gratuity fund (10% of the gross basic pay)
VPP (variable pay plan) (10% of the gross basic pay) it is paid on the yearly basis.
Compensation cars
Field car + bike
OPD cover (medical)
Hospitalization covers (50% by employee + 50% by the company)
Life insurance (50% premium by employee + 50% premium by the company)
Death benefits (12 basic salaries)
House rent advance (4 gross salaries)

OUT BREAKS
In developing an international system of compensation and benefits, EFL has two primary
concerns.
The first is comparability. A good compensation system assigns salaries to employees that are
internally comparable and competitive within the marketplace. For example, the salary of a
senior manager is usually higher than that of a supervisor, and each position should receive an
amount within the local market range. The EFL must also consider the salaries of people who
may transfer from other locations.
The second major concern is cost. Organizations strive to minimize all expenses, and payroll is
one of the largest.
Remuneration and benefits in EFL are closely tied to local labor market conditions, even when
an organization takes an ethnocentric or geocentric approach. The availability of qualified local
people to fill positions, prevailing wage rates, the use of expatriates, and local laws interact to
influence the level of remuneration and benefits. For example, if there are few applicants
available for positions, the remuneration for those positions generally increases. To reduce
expenses, the human resources manager might then consider bringing in an expatriate.

EMPLOYEE BENEFIT AFTER RETIREMENT

As this Organization is private limited so they do not provide as much retirement benefits as the
Govt. organizations do.
Final settlement
Provident Fund (10%)
Gratuity
Pension

Span of Control
Engro has a wider span of control. As it believes in diversity of opinions. Engro believes that
wider span of control can increase communication among employees that helps in improving its
production.

Planning
Engro do planning on short term and long term basis simultaneously. Engro is mostly having
long term plans and for achieving these long term plans it gains support of short term plans.

Motivation Plan
For the motivation of our employees we gave those provident funds, yearly bonus, and medical
facilities.

RATIO