Nishat Final HRM Project v.1

2017
PROJECT REPORT
HUMAN RESOURCE PROCESSES IN NISHAT
TEXTILE MILLS LTD
Farrukh Azam
F15-2194
Submitted in partial fulfillment of the requirements
For the degree of
MASTER OF BUSINESS ADMINISTRATION

At
Lahore Leads University
Lahore, Pakistan
July 2011
LAHORE LEADS UNIVERSITY
Leads Business School

NISHAT TEXTILE MILL LIMITED
It is hereby certified that the report has been thoroughly and carefully read and Recommended to
the Lead Business School for acceptance of Final Report by Farrukh Azam, F 15-2194. Session
(2015 to 2017), Evening, in partial fulfillment of the requirements for the degree of Master of
Business Administration of Lahore Leads University Lahore.
Dated:
Supervisor Name __________________________
Supervisor Signature __________________________
Program Advisor Name __________________________
Program Advisor Signature __________________________
Head of Department __________________________
Lahore Leads University Page 2

LETTER OF TRANSMITTAL
Head of Leads Business School,
Lahore Leads University,
Lahore.
Dear Sir,
It is to present you the internship report which is executed at NISHAT TEXTILE MILLS LTD
Pakistan as required by the university as a degree requirement for MBA program.
This report has been prepared in accordance with the guidelines issued by the department. It is the result
of my first professional experience. The report is practical application of whatever I have studied as a
student of MBA in Lahore Leads University. In this report, I have covered the introduction of NISHAT
TEXTILE MILLS LTD, detail of my learning in the Human Resource Department, impact of project
report on career in future. I feel that this experience would be of great help in future.
Sincerely,
Student Name

ACKNOWLEDGEMENT
All praise is due to Allah, the lord and cherisher of the university. May his peace and blessings be upon
prophet Muhammad (PBUH), his household, companions and all followers of the right Guidance till
the Day of Judgment. First of all I am thankful to ALLAH Almighty who has created me, gave me the
power to understand and the power to gain knowledge. Without His kind guidance I would have not
been able to complete any task given to me. I am great full for the guidance which has been allotted to
me from Allah Almighty to understand and gain knowledge.
Allah, the Exalted, says: " Say: Are those who know equal to those who know not? It is only men of
understanding who will remember."
I give honor and privilege to my respected resource person who helped me in thinking in the right
direction by giving me this challenging task.
I would also like to thank my family, who added a boost to my confidence, and are always praying for
my success.
In particular, I would like to thank my respected teacher Imran Bashir, who always provided me a
great confidence to take any task of my project as challenge,

TABLE OF CONTENTS
COMPANY INFORMATION................................................................................................................ 7
CHAPTER: 1 HR POLICIES AND PRACTICES In NISHAT MILLS LIMITED .................. 12
HR Policies and Practices being followed by the Nishat mills limited ................................................. 13
JOB ANLYSIS ........................................................................................................................ 13
JOB SPECIFICATION ............................................................................................................ 14
JOB EVALUATION ............................................................................................................... 14
METHOD USED FOR JOB EVALUATION ......................................................................... 14
Methods for Collecting Job Analysis Information ........................................................................ 15
By the Interview ............................................................................................................................ 15
By Observation ............................................................................................................................. 15
Questionnaires............................................................................................................................... 16
Job descriptions ............................................................................................................................. 16
CHAPTER: 2 RECRUITMENT & SELECTION .......................................................................... 17
Recruitment and selection ..................................................................................................................... 18
Recruitment and Selection Process: ..................................................................................... 18
THE NEED OF THE RECRUITMENT .................................................................................. 19
Internal recruitment ....................................................................................................................... 19
Job posting .................................................................................................................................... 19
Rehiring......................................................................................................................................... 19
External Recruitment: ................................................................................................................... 20
Recruiting through internet ........................................................................................................... 20
Employment agencies ................................................................................................................... 21
Application:................................................................................................................................... 21
FINAL INTERVIEW AND NEGOTIATIONS ...................................................................... 22
CHAPTER 3 TRAINING ANd DEVELOPMENT ........................................................................ 24
Employee Orientation: ............................................................................................................. 25

Training methods: ......................................................................................................................... 26
Nishat mills limited train their employees by two ways: ......................................................... 26
Training in Nishat mills limited ............................................................................................... 29
TRAINING TO EXISTING EMPLOYEES ............................................................................ 29
CHAPTER: 4 PERFOMANCE APPRAISAL ................................................................................. 30
PERFORMANCE APPRAISAL ............................................................................................. 31
Which Appraising Method The Company Is Using: ............................................................... 31
360 degree appraisal system: ........................................................................................................ 31
Who should do the appraising? ................................................................................................ 31
Training and Development: ..................................................................................................... 32
Promotions and transfers: ........................................................................................................ 32
CHAPTER: 5 COMPENSATION AND BENIFITS ....................................................................... 34
COMPENSATION & BENEFITS........................................................................................................ 35
How pay rates are established? ..................................................................................................... 36
Nishat mills limited has established its pay rates ..................................................................... 36
FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES ......................... 42

COMPANY INFORMATION
BOARD OF DIRECTORS:
Mrs. Naz Mansha
Chief Executive/Chairperson
Mian Raza Mansha
Mian Hassan Mansha
Mr. Muhammad Nawaz Tishna (NIT)
Mr. Faisal Ehsan Ellahi
Mr. Khalid Qadeer Qureshi Chief Financial Officer
Mr. Muhammad Azam
Rana Muhammad Mushtaq
AUDIT COMMITTEE:
Mr. Faisal Ehsan Ellahi Chairman/Member
Mian Hassan Mansha Member
Mr. Muhammad Azam Member
COMPANY SECRETARY:
Mr. Khalid Mahmood Chohan
Riaz Ahmad & Company
Chartered Accountants
LEGAL ADVISOR:
Mr. M. Aurangzeb Khan, Advocate,
Chamber No. 6, District Court, Faisalabad.
BANKERS TO THE COMPANY:
ABN AMRO Bank
Albaraka Islamic Bank B.S.C (E.C)
Allied Bank of Pakistan Limited

Askari Commercial Bank Limited

Bank Alfalah Limited
Citibank N.A.
Crescent Commercial Bank Ltd.
Deutsche Bank
Faysal Bank Limited
Habib Bank Limited
Habib Bank A.G. Zurich
KASB Bank Limited
Meezan Bank Limited
National Bank of Pakistan
NIB Bank Limited
PICIC Commercial Bank Limited
Standard Chartered Bank
The Hong Kong & Shangai
Banking Corporation Limited
Union Bank Limited
United Bank Limited
MILLS:
Nishatabad, Faisalabad (Spinning, Processing,
Stitching units & Power Plant)
12 K.M. Faisalabad Road, (Weaving units & Power Plant)
Sheikhupura.
21 K.M. Ferozepur Road, Lahore. (Stitching unit)
5 K.M. Nishat Avenue (Weaving, Dyeing & Finishing unit
Off 22 K.M. Ferozepur Road, Lahore. and Power Plant)
20 K.M. Sheikhupura Faisalabad (Spinning unit)
Road, FerozeWatwan

REGISTERED OFFICE & Nishat House,

SHARES DEPARTMENT
53, A, Lawrence Road, Lahore.
Tel: 042-6367812-16
Fax: 042-6367414
HEAD OFFICE:
7, Main Gulberg, Lahore.
Tel: 042-5716351-9
Fax: 042-5716349-50
E-mail: nishat@nishatmills.com
Website: www.nishatmills.com
LIAISON OFFICE:
Ist Floor, Karachi Chambers,
Hasrat Mohani Road, Karachi.
Tel: 021-2414721-23
Fax: 021-2412936

Back ground history and introduction of the company
NML mills limited commenced business in 1951 as a partnership concern, which was
converted into private limited company in 1959. In 1961, the company went public and was
listed on the Karachi stock exchange, the only stock exchange in the country at that time. NML
started out as weaving unit with 500 semi automatic looms, later 10000 spindles were added,
laying the foundation on nations biggest textiles composite project at Nishat mills limited
Faisalabad covering 98 acre of Landis providing all production process under one
roof i.e. spinning, weaving, processing, stitching and power generation.
When Pakistan came into being there was only 16 textile mills out of which only
12were in operation. It grew to 70 in 1957 as industrial development takes place.
Now a day there are 596-textile mills out of which 442 are in operation. The export
revenue of textile industry contributes a large share to the GDP of Pakistan.
Textiles Exports from Pakistan
Nishat gray cloth exports account for roughly 20 % of Pakistani gray cloth exports. The firm
has been exporting to the USA for many years, and has only rece ntly started to
export to EU countries.
Nishat Mills Limited, the flagship company of the group was established in 1951. Its annual
turnover for the year is over Rs.17 billion (US$ 283 million). NML with the production facility
of 270,000 spindles, 740 looms and dyeing & printing capacity of 7 million meters (7.65
million yards) makes Nishat the largest composite textile set up in Pakistan.
Nishat mills limited are the single largest textile composite unit in Pakistan. The company is a
leading export of textile products having extensive spinning, weaving, dyeing, printing,
finishing and stitching facilities at Faisalabad, Sheikhupura, and Ferozewatwan Lahore. NML
is the flagship company of Nishat group one of the largest conglomerates with interest in the

textile, cement and financial sector. The Nishat group families members are associated
concerns collectively hold 47% of NMLs equity.
NMLs products range is compressed and made ups. The proration of processed fabrics and
made ups in the total sales mix currently less than half, but this is steadily increasing. The
company management team comprises highly qualified professionals and remains stable over
the years. The strong management team ensures effective de regulation of functional
responsibility across departments facilitating a smooth flow of operations.
Mission Statement
To provide quality products to customers and explore new markets to

Promote/expand sales of the Company through good governance and foster a sound and
dynamic team, so as to achieve optimum prices of products of the Company for sustainable
and equitable growth and prosperity of the Company.
Vision Statement
To transform the Company into a modern and dynamic yarn, cloth and processed cloth and
finished product manufacturing Company with highly professionals and fully equipped to play
a meaningful role on sustainable basis in the economy of Pakistan.
To transform the Company into a modern and dynamic power generating
Company with highly professionals and fully equipped to play a meaningful role on sustainable
basis in the economy of Pakistan.

CHAPTER: 1
HR POLICIES AND
PRACTICES IN NISHAT
MILLS LIMITED

HR POLICIES AND PRACTICES BEING FOLLOWED BY THE

NISHAT MILLS LIMITED
Human resource department is the key department in any organization same is the case with
Nishat textile mills limited Lahore. HR department has to look after all the important activities.
It is responsible for the process of hiring, firing, training, development and all other related
activities carried out. Human resource department is also responsible for the process of
designing and evaluating the jobs and determining pay structure for the jobs.
JOB ANLYSIS
Job Analysis
Job Description Job Specification
In the job analysis, HR Department of Nishat mill play the key role in the job identification,
respective duties and responsibilities. They systematically collect, evaluate, and organize the
information about jobs.

JOB SPECIFICATION
Once you are aware of the type of person you are looking for your job vacancy, you can design
a "Job Specification" profile. In Nishat mill limited the job specification includes:
Qualification of employee
Experience of employee
Training or development needed for the particular job
Personal attributes required for the job
Interpersonal skills and communication skills.
JOB EVALUATION
Job Evaluation is based on methods and practices of ordering jobs or positions with respect to
their value or worth to the organization. According to Nishat textile mill limited following
factors are considered important while making job evaluation which is:
Complexity of the Job.

How much Stress one can Bear.
Available Budget for Compensation.
Experience Required for the Job.
Company Need for the Employee for that Job.
Abilities required performing a Job.
METHOD USED FOR JOB EVALUATION
According to Nishat mill limited the method used for Job Evaluation is as follows:
Classification Method

Ranking Method
Point Method
Nishat mill limited use Classification Method when an employee is performing well and has a
chance to get promoted with the same position but at higher level.
On the other hand Nishat textile mills limited believes that there hierarchy is flat in nature. Due
to which they consider that the pays varies according to the position of the
Hierarchy. The top management will get more salary as compared to employees of middle
management.
METHODS FOR COLLECTING JOB ANALYSIS INFORMATION
There are various ways to collect information on the duties, responsibilities and activities of
job. In Nishat mills limited they use interview, questionnaire and observation. These methods
are implemented as follow:
BY THE INTERVIEW
In Nishat mills limited Human Resource Department conduct job analysis interview to find the
competent information from the employee. The interview is mostly conducted by the employ
time by time and analysis the job of the all the employee. That is difficult for the hr manger
that he is conducting the interview from all the employ and then analysis the job of the
employee.
BY OBSERVATION
Observation method is easy for the hr manger from the interview in this method the manger
only look after or observe the entire employee within a short period of time. In Nishat mills
limited some jobs are analyzed through direct observation of HR manager e.g. assembly line
worker and accounting clerk.

QUESTIONNAIRES
In this procedure HR manager fill out questionnaire from employees to describe their job
related duties and responsibilities. They use structured format for questionnaires and also use
open ended questions.
JOB DESCRIPTIONS
After collecting information HR manager produce job description. Job description is written
statement of what the worker actually does, how he or she does it, and what the jobs working
conditions are.
In Nishat mills limited there is no standard format for writing a job description. However, most
descriptions contain section that covers:
To whom the employee is responsible.
What are the Job Grade, title, and location of the job?
Job Summary and duties. It briefly describes which are the duties of the employees,
their responsibilities and brief introduction of the job.
Working conditions. In this section of description, travel requirements and some

other features of the job is described.

CHAPTER: 2
RECRUITMENT &
SELECTION

RECRUITMENT AND SELECTION
RECRUITMENT AND SELECTION PROCESS:
Employment Recruiting: Applicants Use selection

planning & Build a pool complete tools; tests to
forecasting of candidates application screen-out
form applicants
Candidate
becomes
employee Director or department head
interview final candidates to make
final choices
Creating a pool of well qualified and talented candidates and choosing the best candidate from
that pool.
Recruitment is the process of finding and attracting capable applicants for employment. In the
Nishat textile mills limited Lahore, obviously responsibility of recruitment lies on Personnel
Department. They adopt the following procedure for recruitment. Nishat mill limited has
standard a list of jobs that are filled in accordance with international standards. However these
lists are not permanent and new jobs are added to it keeping in view the changing needs of the
workforce. A new vacancy in Nishat textile mills limited may arise because of the need to
replace the retiring staff, dismissed staff, promoted staff or replacing an employee on job
rotation

THE NEED OF THE RECRUITMENT
According to the Annual Human Resources Plan, concerned department manager requests the
Personnel department to recruit the employees with adequate qualification and experience.
Then the Personnel Department uses the following channels of recruitment.
TYPES OF RECRUITMENT
INTERNAL RECRUITMENT
Recruiting candidates in Nishat mills limited Human Resource Department first recruit the
employees from the company. For this purpose they establish personal records and skill banks.
These help them in finding competent employees. Internal sources of Nishat mills limited are
Job posting
Rehiring
JOB POSTING
Job posting means given the higher post from the previous post to the employee that is good
for the employee for the development of the career of the employee. In job posting Human
Resource Department publicize the job to employees by posting it on company intranets or
bulletin boards.
REHIRING

Rehiring means the company hire those employee who will leave the company and retire from
the post of the company so the company hire those person that is good for the company due to
those employee familiar with the company.
EXTERNAL RECRUITMENT:
External recruitment is a process in which the company gathering and attracting the persons
from outside the company. For external recruitment the candidate fill the following conditions.
No candidate under the age of eighteen will be considered.

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

Advertising
Employment agencies
Temporary agencies
RECRUITING THROUGH INTERNET

Internet is very easy method for the external recruitment but that is costly for the company in
which the company pay the employee agencies for the recruitment. IN Nishat mills limited
most of the time job ads are given on internet because today most of the people use internet. In
this way they got relevant resume and many of which include the necessary experience for
required post. They use many other sites for job ads like
www.expatriates.com
www.bayrozgar.com
www.careerberg.com
EMPLOYMENT AGENCIES
In Nishat mills limited recruitment is also made with some employment agencies in Pakistan.
These agencies recruit some experienced jobs and managerial jobs. These employment
agencies help the all the company those wanted to hire the persons and want to hire those
people who are competent and having a great experience.
APPLICATION:
Through application the candidate personally fill the application and send to the company for
the post which is required by the company. Applicants may apply online by registering with
the web based recruitment portal. However, when considered for a specific position, they will
be required to fill the standard application form of the Company.
ADVERTISEMENT THROUGH NEWSPAPERS
Jobs are also advertised through Newspapers of national repute. Advertising is an effective
method of seeking recruits, since ads can reach a wider audience than employee referrals or
unsolicited walk -INS, it is considered as better of the above.

SELECTION
Recruitment seeks to create a pool of suitable

applicants. Once that Pool has been assembled, the
selection process begins. In Nishat textile mills limited
the selection process is a series of steps through which
applicants pass. These are given in the following:
PRELIMINARY SCREENING
In this stage, Personnel Department performs the function of short listing.
PROPER INTERVIEW
After the short listing, proper interview is conducted by Personnel Manager in which general
suitability of candidate is evaluated.
INTERVIEW FOR TECHNICAL SUITABILITY
In this stage, candidate's technical knowledge and experience is assessed by the concerned
department's manager. The result of the interview is discussed with the Personnel Manager for
further consideration. If the candidate passes this stage, then he/she is called the next stage.
FINAL INTERVIEW AND NEGOTIATIONS

This final interview is conducted by Personnel Manager and two important areas are discussed.
Negotiation on pay
Working conditions and employment contract is also discussed
INVESTIGATION
Background of candidate is investigated by personnel department about the informations

which the candidate has given.
FINAL SELECTION
After successfully completing all the stages he is finally selected for concern job. The selection
process can be summarized in the following way.
Preliminary screening
Initial interview
Technical interview
Final interview
Background investigation

CHAPTER 3
TRAINING AND
DEVELOPMENT

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

TRAINING AND DEVELOPMENT

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

Employee training at the place of work while he or she is doing the actual job.
Usually a professional trainer (or sometimes an experienced employee) serves as
the course instructor using hands-on training often supported by formal
classroom training.
On-the-job training methods are as follows
1. Job rotation:
This training method involves movement of trainee from one job to another gain
knowledge and experience from different job assignments. This method helps the
trainee understand the problems of other employees.
2. Coaching:
Under this method, the trainee is placed under a particular supervisor who functions as
a coach in training and provides feedback to the trainee. Sometimes the trainee may not
get an opportunity to express his ideas.
3. Job instructions:

Also known as step-by-step training in which the trainer explains the way of doing the
jobs to the trainee and in case of mistakes, corrects the trainee.
4. Committee assignments:
A group of trainees are asked to solve a given organizational problem by discussing the
problem. This helps to improve team work.
5. Internship training:
Under this method, instructions through theoretical and practical aspects are provided
to the trainees. Usually, students from the engineering and commerce colleges receive
this type of training for a small stipend.
Off the job training

Off-the-job training occurs when employees are taken away from their place of
work to be trained. Common methods of off-the-job training include: Day release
(employee takes time off work to attend a local college or training centre)
THE FOLLOWING ARE SOME OF THE OFF-THE-JOB TECHNIQUES

1. Case study method:
Usually case study deals with any problem confronted by a business which can be
solved by an employee. The trainee is given an opportunity to analyse the case and
come out with all possible solutions. This method can enhance analytic and critical
thinking of an employee.
2. Incident method:
Incidents are prepared on the basis of actual situations which happened in different
organizations and each employee in the training group is asked to make decisions as if
it is a real-life situation. Later on, the entire group discusses the incident and takes
decisions related to the incident on the basis of individual and group decisions.
3. Role play:
In this case also a problem situation is simulated asking the employee to assume the
role of a particular person in the situation. The participant interacts with other

participants assuming different roles. The whole play will be recorded and trainee gets
an opportunity to examine their own performance.
4. In-basket method:
The employees are given information about an imaginary company, its activities and
products, HR employed and all data related to the firm. The trainee (employee under
training) has to make notes, delegate tasks and prepare schedules within a specified
time. This can develop situational judgments and quick decision making skills of
employees.
5. Business games:
According to this method the trainees are divided into groups and each group has to
discuss about various activities and functions of an imaginary organization. They will
discuss and decide about various subjects like production, promotion, pricing etc. This
gives result in co-operative decision making process.
6. Grid training:
It is a continuous and phased programme lasting for six years. It includes phases of
planning development, implementation and evaluation. The grid takes into
consideration parameters like concern for people and concern for people.
7. Lectures:
This will be a suitable method when the numbers of trainees are quite large. Lectures
can be very much helpful in explaining the concepts and principles very clearly, and
face to face interaction is very much possible.
8. Simulation:
Under this method an imaginary situation is created and trainees are asked to act on it.
For e.g., assuming the role of a marketing manager solving the marketing problems or
creating a new strategy etc.
9. Management education:
At present universities and management institutes gives great emphasis on management

education. For e.g., Mumbai University has started bachelors and postgraduate degree

in Management. Many management Institutes provide not only degrees but also hands
on experience having collaboration with business concerns.
10. Conferences:
A meeting of several people to discuss any subject is called conference. Each par-
ticipant contributes by analyzing and discussing various issues related to the topic.
Everyone can express their own view point.
TRAINING IN NISHAT MILLS LIMITED
Training in Nishat mills limited is basically of two types.
Training to new employees

Training to existing employees
TRAINING TO NEW EMPLOYEES

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

CHAPTER: 4
PERFOMANCE APPRAISAL

PERFORMANCE APPRAISAL
Performance appraisal is a critical activity of HR management. Its goal is to provide an accurate

picture of past and/or future employee performance. To achieve this performance standards are
established. The standards are based on the job related criteria that best determine successful job
performance. Nishat textile mills limited has developed a complete performance appraisal system
by which job performance of the employee is evaluated. Personnel department also uses the
information gathered through performance appraisals.
The objective of the system is to get the performance feedback which allows the employee,
manager and Personnel Manager to step in with appropriate actions to improve the performance.
WHICH APPRAISING METHOD THE COMPANY IS USING:
360 DEGREE APPRAISAL SYSTEM:
360 degree appraisal system is mostly and common used in the companies. Mostly it is done for
senior management; the company takes the feedback of their senior management by workers, co-
workers, employees, customers, suppliers and other business persons.
In Nishat mills limited mostly they have hired a Supervisor for appraising the employees having a
log of employees good and bad behavior during a particular period of his job and they review the
performance
Check Yearly performance

Through Performance ratting
WHO SHOULD DO THE APPRAISING?

The human resource manager is responsible to do the appraising.
CAREER PLANNING
Career planning is very important aspect for development of the employees. By career planning
employee's career goals are set and to achieve them. Nishat textile mill limited feels the
responsibility to develop the careers of their employees so that they would be able to get
themselves high and high in corporate hierarchy. Then the principle aim of career development
programs at Nishat textile mill limited is to help employees, analyze their abilities and interests to
better match personal needs for growth and development with the needs of the organization.
TRAINING AND DEVELOPMENT:
Training and development is a process in which the company conducted the training for the
employee that helps the company as well as helps the employee to develop his best future. Nishat
mills limited recognize the value of professional development and personal growth for employees.
Therefore, company encourages its employees who are interested in continuing education and job
specific training to research these further and get approval before signing up for the seminars or
courses. The purpose of this policy is to reinforce the commitment the company to a learning
environment. Employees are encouraged to attend training and educational programs that will
enhance their abilities to perform and grow in their jobs. Supervisors are expected to reinforce this
commitment as well as participate in training. The Company is committed to employee
professional development.
PROMOTIONS AND TRANSFERS:
The promotion of the employee occurs when an employee is moved from one job to another that
is higher is pay, responsibility, and/or organizational level. The promotional criteria have
following features:

It is based on the past service record and performance appraisal system.

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

CHAPTER: 5
COMPENSATION AND
BENIFITS

COMPENSATION & BENEFITS
All forms of pay or rewards going to employees and arising from their employment
Nishat textile mill limited follow to all laws and

regulations of government. For instance, Nishat
follows Minimum Wage Board Act, Industrial
Relations Standing Ordinance, and Workman
Compensation Act.
Nishat mill has developed grades for rank and

file workers and have structured Pay Scale
according to labor market and competition within the hospitality industry of Pakistan. The
compensation for executive and secretaries is negotiable depending on the abilities and
performances.
OBJECTIVES OF COMPENSATION
Compensation needs to be high enough to attract applicants.

Retain present employees.
Compensation management strives for internal and external equity.
Comply with legal regulations imposed by government.

HOW PAY RATES ARE ESTABLISHED?
Nishat mills limited has established its pay rates
To conduct a survey outside the companies and then established the pay rate for his
employee.
Matching the worth of the job of the employee.
Matching the group whose pay thats rates.
Established the pay with the pay grade
HEALTH AND SAFETY
Health and safety is very important for the entire employee. If an employee is no having good
health he cannot perform his job well.
HEALTH AND SAFETY MEASURES
Health and safety law does apply to all business,

regardless of size, and as an employer, you are required to
maintain responsibility of the health and safety of your
employees within your business. This means implementing
and taking the correct precautions to eliminate or reduce
hazards within the working environment and to keep your
office safe for all. A hazard is something with the potential
to cause harm, for example hazardous substances, a
spillage on the floor, electricity etc.

APPOINT SOMEONE
As an employer, it is important to appoint another individual to assist you with all health and
safety issues. This person has to be competent, that is they have sufficient training and
experience or knowledge and other qualities that allow them to assist you properly. This would
usually require formal training in health and safety, which is why some Employers use the
services of a competent Health and Safety Consultant who then acts as their competent person.
WRITE A HEALTH AND SAFETY POLICY FOR YOUR BUSINESS
Informing your employees about the implementation of a health and safety strategy in your
business will provide your staff with the information they need to control the safety within the
working premises; this will also make it much easier to manage. You can do this by creating a
health and safety policy and putting it in a location where all staff can access it easily. Your
policy should clearly state who does what within the business, when and how. By law, you must
have a written health and safety policy if you have five or more employees.
This policy is not complicated to create, and will not take up much of your rime. Once written,
you must ensure that this policy is reviewed on a regular basis and fully implemented.
RISK ASSESSMENT
Risk assessment is paramount for health and safety in business. This entails carrying out a
scrupulous examination of what in your business could cause harm to employees, which will
then give you the means to be able to make a decision on whether you need to enforce additional
precautions. Involving your employees during any risk assessment of the company will give you
the additional knowledge of what they believe needs to be changed or improved within the
office. Your employees will be in the best position to advise you in developing safer and more
effective practices, as they are the individuals that will know most about the daily tasks they do.
The five easy steps for risk assessment are as follows in Nishat.
Identify the hazards

Decide who might be harmed and how
Evaluate the risks and decide on precautions
Record your findings and implement them
Review your assessment and update if necessary
Very few offices remain the same as new equipment and procedures will be updated whenever
necessary, which obviously could lead to different or new hazards. Because of this, reviewing
your risk assessment frequently, for example every 12 months is integral to the smooth running
of your business. Also, dont forget to update it when you make any significant change within
your business.
TRAINING AND INFORMATION
Every single one of your employees should know how to conduct themselves safely in the office
without risking the life of others, as well as themselves. You can ensure this by providing initial
information, instruction and training sessions. Useful information such as; hazards and risks
they may face; the measures set in place to deal with any particular risks or hazards, and
emergency procedures are key to any health and safety training. You could also ask for the input
of your employees by getting them to provide feedback on the training to make sure it is relevant
enough for them. You may also want to keep a record of any training that has been given, so you
can keep on track of refresher courses or training for new employees. It is important to know that
any health and safety training that takes place should be allotted within working hours.
In addition to initial and ongoing training, you also need to make sure that new employees are
provided with a thorough health and safety induction, which should cover all the relevant issues
outlined above. Again, this induction should be documented.

WORKPLACE FACILITIES
Protecting the health and safety of everyone in your office is important, including people with
disabilities. You must ensure that you have taken care of the following:
Welfare facilities To maintain the wellbeing you must have toilets, hand basins with hot and
cold running water, soap and towels, or a hand dryer. You must also provide drinking water, a
place to store clothing and somewhere to eat meals or rest, such as a kitchen or communal area.
Health issues A healthy working environment is paramount, so necessary measures need to be
taken to ensure this. Aspects such as suitable lighting, ventilation, temperature control, roomy
workstations, suitable seating and clean surroundings with waste bins are all needed.
Safety issues Safety is key, so to do this you must have windows in your office that can be
opened, make sure traffic routes and floors are free from obstacles, maintenance of your
premises and equipment, and also any glass doors must be clearly indicated with a sticker and
are either covered with a safety material to stop shattering, or are made of safety glass.
FIRE SAFETY
Most fires can be prevented. As an employer, you must carry out a fire safety risk assessment
and then make sure that is kept up to date and reviewed regularly. Based on the findings of the
assessment, you must make sure that adequate and appropriate fire safety measures are in place
to minimize the risk of injury or loss of life in the event of a fire.
To help with this, your risk assessment should identify what could cause a fire to start, i.e.
sources of ignition (heat or sparks) and substances that burn, and the people who may be at risk.
Once you have identified the risks, you must then take appropriate action to control them.

Consider whether you can avoid them altogether or, if this is not possible, how you can reduce
the risks and manage them.
You will also need to consider how you will protect people if there is a fire, which would usually
include the introduction and maintenance of fire precautions. Such precautions include fire
doors, fire extinguishers, fire detection and alarm system, emergency lighting, fire exit and
escape routes, display of suitable fire safety signage, adequate training, and fire drills at least
once a year etc.
FIRST AID
First aid is important and you must implement it in your workplace. It is your responsibility as an
employer to make sure that employees are able to receive immediate attention if they are injured
or take ill for any reason. A first aid kit can potentially saves lives as accidents can happen
suddenly and at any time. Making arrangements for your first aid procedure will depend on the
particular circumstances within your company, so you need to make an assessment of what your
first aid requirements are.
At the very minimum, it is law to have a fully stocked first aid kit in the office and an appointed
first aid person that can take charge of any situation which may occur. Once you have made your
first aid arrangements, you must make all employees aware of the expected procedure. It is also
important to report and keep a log of accidents, injuries and incidents that occur within your
company as this is stated under health and safety law. Keeping a record of these incidents will
help you when it comes to completing your risk assessment and it will also allow you to identify
any patterns of accidents.
HEALTH AND SAFETY LAW POSTER
As an employer, you must display the health and safety law poster where employees can easily
access and read it. This poster outlines health and safety laws in Britain and has a clear list that

explains to both employers and employees of their requirements. You may also include the
details of your health and safety representative by writing their names and contact details on the
poster, as this will let everyone know who they are.
BUSINESS INSURANCE
It is important to obtain employers liability insurance as you need to be covered for injury or
illness of your employees as a consequence of working for you. If an employee does take ill or
undergoes injury at work then they could potentially claim compensation from you. Employers
liability insurance will enable you to meet the cost of this compensation for your employees
injuries or illness.
If you own a family business or have no employees, then it is not necessary to invest in
employers liability insurance. It is best to check with your insurance company to find out what
you are covered for. You will find in some cases that this will already be included in your
insurance package and therefore you will not have to invest in it separately.
Ensuring that your business follows health and safety rules doesnt have to be time consuming or
costly. You will be sure to reap the benefits and have a happy working environment if you are to
follow the rules.
Firefighting course is mandatory for all levels.

They have a dispenser in the mill to take and care the employee.
Helmet plan is implemented.
If any accident happens the injured persons are rushed to nearby hospital.

FEATURES OF COMPENSATION SYSTEM AND SOCIAL

SERVICES
Fixed salary
Overtime is paid according to Government rules and regulations i.e. double on Gazettes
holidays.
Group Insurance scheme is practiced for the compensation of two objectives:
i) Accidents
ii) Injuries
Employees old age benefit scheme.

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

CONCLUSION
We are concluded that the human resource department of Nishat textile mill limited is very strong
and good. The process of recruitment in the Nishat textile mill limited is very good for both internal
recruiting and external recruiting.
The appraising system of the Nishat textile mills limited also very well and they are checking the
performance to the employee and given them training if they need. The orientation system is also
very good in the Nishat textile mill limited due to the Nishat textile mill limited is the strongest in
the textile industry.
RECOMMENDATIONS
In Order to solve the problem the company must fire those employees who are giving continuous
poor performance in spite of job rotation and training. Company must use external recruitment
firms like Personnel consultancies, Management recruitment consultants, and Executive search
firms to hire the best employees as these companies are the expertise. The Nishat Mills must not
hire the retired employees on contract and give more and more chances to the new talent. Nishat
Mills needs to improve its advertisement campaign as the results shows that the company
advertisement process is not very effective and the best candidates are not attracted. Company also
needs to motivate its employees in a better way like
Bonus Commissions, Promotions and increment at the same time. The result of performance
appraisal should be discussed directly with the employees and should be kept up-to-date with their
both negative and positive aspects. This can be done by arranging meetings etc.

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2017

Submitted in partial fulfillment of the requirements

For the degree of

MASTER OF BUSINESS ADMINISTRATION

Lahore Leads University

LAHORE LEADS UNIVERSITY

Leads Business School

Supervisor Name __________________________

Supervisor Signature __________________________

Program Advisor Name __________________________

Program Advisor Signature __________________________

Head of Department __________________________

Lahore Leads University Page 2

Head of Leads Business School,

Lahore Leads University,

Pakistan as required by the university as a degree requirement for MBA program.

Lahore Leads University Page 3

Lahore Leads University Page 4

CHAPTER: 1 HR POLICIES AND PRACTICES In NISHAT MILLS LIMITED .................. 12

JOB ANLYSIS ........................................................................................................................ 13

JOB SPECIFICATION ............................................................................................................ 14

JOB EVALUATION ............................................................................................................... 14

METHOD USED FOR JOB EVALUATION ......................................................................... 14

Methods for Collecting Job Analysis Information ........................................................................ 15

By the Interview ............................................................................................................................ 15

Job descriptions ............................................................................................................................. 16

CHAPTER: 2 RECRUITMENT & SELECTION .......................................................................... 17

Recruitment and selection ..................................................................................................................... 18

Recruitment and Selection Process: ..................................................................................... 18

THE NEED OF THE RECRUITMENT .................................................................................. 19

Internal recruitment ....................................................................................................................... 19

Job posting .................................................................................................................................... 19

External Recruitment: ................................................................................................................... 20

Recruiting through internet ........................................................................................................... 20

Employment agencies ................................................................................................................... 21

FINAL INTERVIEW AND NEGOTIATIONS ...................................................................... 22

CHAPTER 3 TRAINING ANd DEVELOPMENT ........................................................................ 24

Employee Orientation: ............................................................................................................. 25

Lahore Leads University Page 5

Training methods: ......................................................................................................................... 26

Nishat mills limited train their employees by two ways: ......................................................... 26

Training in Nishat mills limited ............................................................................................... 29

TRAINING TO EXISTING EMPLOYEES ............................................................................ 29

CHAPTER: 4 PERFOMANCE APPRAISAL ................................................................................. 30

PERFORMANCE APPRAISAL ............................................................................................. 31

Which Appraising Method The Company Is Using: ............................................................... 31

360 degree appraisal system: ........................................................................................................ 31

Who should do the appraising? ................................................................................................ 31

Training and Development: ..................................................................................................... 32

Promotions and transfers: ........................................................................................................ 32

CHAPTER: 5 COMPENSATION AND BENIFITS ....................................................................... 34

COMPENSATION & BENEFITS........................................................................................................ 35

How pay rates are established? ..................................................................................................... 36

Nishat mills limited has established its pay rates ..................................................................... 36

FEATURES OF COMPENSATION SYSTEM AND SOCIAL SERVICES ......................... 42

Lahore Leads University Page 6

Lahore Leads University Page 7

Askari Commercial Bank Limited

Lahore Leads University Page 8

REGISTERED OFFICE & Nishat House,

Lahore Leads University Page 9

Back ground history and introduction of the company

Lahore Leads University Page 10