Submitted to: Sir SAMI ULLAH Submitted by: HAFSA-AL-NASAR 10404 MUHAMMAD AHMED ROLL# 10427 ROLL#

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RABIA YOUNAS 10452 ROLL# 10430

ROLL#

IMRAN KHAN

We like to SAY THANKS to ALLAH firstly who is most BENEFICIAL AND MERCIFUL, WHO gives us the courage and confidence to complete our work and project with determination and concentration. Secondly we like to say THANKS our teachers SIR SAMI ULLAH & SIR HAMAD who gave us the knowledge of the subject HRM in the light of which we were able to complete our project effectively and with our full determination. Its a group effort and all the members contribute equally in completing the project. And finally we like to thanks the HR department of the MASOOD TEXTILE MILLS pg.
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LTD. who gave us the interview and cooperated with us fully and provide us the information which we required. We like to thanks Mr. ZAFAR SHAHZAD (DM, HR, & ADMIN), & Mr. AHMAD GHAZALI (deputy Manager Procurement) with the support of these people we were able to complete our interview and project.

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Executive summary Summary 1. INTRODUCTION 2. HR PLANNING 3. RECRUITMENT AND SELECTION PROCESS 4. TRAINING AND DEVELOPMENT 5. PERFORMANCE MANAGEMENT 6. COMPENSATION MANAGEMENT 7. LABOUR RELATIONS AND HEALTH AND SAFETY 8. RECOMMENDATIONS 9. CONCLUSION 10.QUESTIONNAIRE

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This assignment is to know about the HR system of the MASOOD TEXTILE MILLS LTD. and how well the company practices the functions of the Human Resource Management. To check how well the HR strategies are being implemented in the company and the effect of those strategies on the employee performance. The effectiveness of compensation management in the company and, the employees are being compensated according to their performance or not.

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HISTORY OF MASOOD TEXTILE MILLS LTD

The Masood textile Mills limited was established in year 1984. The company is the manufacturer of Cotton Yarn, Knitted Fabric, Single Jersey, Rib, Pique, Interlock, Thermal, Fleece, French Terry, Athletic, Underwear, Sports wears. Their factory is situated in Faisalabad and their head office is in Lahore. They trade their products in the countries like North America, South America, Eastern Europe and Southeast Asia. Their main business markets are Africa, Oceania, Mid East, Eastern Asia and Western Europe. They are having more than 1000 people as employees. Their annual sale is between US$10 Million to US$50 Million.

VISION STATEMENT
Vision is of continual improvement and sustained growth, and of a family of workers. Who are given the best compensation benefits and working conditions in the region? In this respect, MTM continues to emphasize the need to invest in and develop its most precious resource - its human capital. MTM continues to provide training courses and self-enhancement.

MISSION STATEMENT
To provide market leadership and brand coverage To pursue technological innovation To partner with operators for their maximum productivity To provide virtuous to our customers, employees, communities, and the environment

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CUSTOMER PROFILE
MTM is proud to work with the worlds best labels. This exposure to the brand labels has been a continuous learning experience for the entire team. Currently, 85% of production is exported to the U.S. while rest 15% to Europe. The customers of the MASOOD TEXTILE MILLS LTD are:

Abercrombie & Fitch

Carhartt

Fruit of the Loom

Champion

Foot Locker

Hanes

Jockey

JCPenney

Kohl's

Levi's

Macy

Polo

Russell

Sara Lee

Tommy Hilfiger

Walmart

Masood Textile Mills is the only textile mills in Pakistan with latest computerized Barcode System that assures quality in every operation of production from spinning to packing. Products of each department carry bar coded stickers, which bear all the details and history of the operations of that product. Hence if any problem is

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reported, one can trace back the root of the problem and enable to prevent occurrence of the same in future.

HUMAN RESOURCE DEPARTMENT AT MASOOD TEXTILES MILLS.LTD

There are about 15 HR professionals currently working at Masood textile mills ltd of which 2 are managers. Masood textile has a very well defined and structured department. HR department is very cooperative so employees are largely committed to the progress of the company. Employees are satisfied with the HR department of Masood textile mills Ltd. There are several functions performed by HR department which are given below: 1. HR PLANNING PROCESS 2. Recruitment & selection process 3. Training & development 4. Performance management 5. Compensation management 6. Labour relations &Health and Safety measures In order to make its human resource productive and efficient, Masood textile mills ltd focusing on the development of their employee by providing them different internal and external trainings.

STRATEGIC HUMAN RESOURCE MANAGEMENT AT MASOOD TEXTILE MILLS LTD

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Human resource is the most competitive asset of any company, Masood textile mills ltd is one of these. HR strategy refers to the specific human resource management course of actions that a company follows to achieve its objectives. How these strategies/policies/practices are formulated and implemented at Masood textile mills ltd. There is a whole process behind this. Like every organizations, the process is also done in accordance with companys mission. HR strategies, HR policies and practices are formed and implemented. The company continuously keeps on updating their strategies and policies according to the situation.

The company uses HR planning process to recruit the employees and the company also uses the HRIS (Human Resource Information System) to keep the records of the employees. This helps the company to keep a check over the employees activities. HRIS helps the company to save time and cost and it helpful in the HR activities. From HRIS the company can also forecast the demand and supply of the employees.

DOWNSIZING APPROACHES
Nowadays in the Masood Textile Mills Ltd the company is downsizing it employees. They are using the attrition and hiring freeze approaches to downsize the employees form their company.

SURPLUS OR SHORTAGE OF EMPLOYEES

Currently the company is facing the issue of employee shortage because the employees are leaving the company and they are not hiring the new employees. The disadvantage of shortage of

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employees is that the work load on the remaining employees increases. This can lead the employees towards

Policies for Recruitment and Selection as experienced at Masood textile mills ltd are:

RECRUITMENT POLICY
Objectives: The policy is meant to ensure the effective and efficient use of recruitment and selection process for getting the qualified pool of employees. The Sources of recruitment for different job vacancies in Masood textile mills ltd include are: a. b. Internal recruitment External recruitment

EXTERNAL RECRUITMENT
The external recruitment is done for the lower level of the management. The external recruitment is done through the advertisement. There is less focus for the selection of the higher management. The benefit of the external recruitment is that they get the loyal and efficient employees for the company. If the external recruitment is done for the higher management the selection process is as follows

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a. Advertisement in the newspaper b. Collection of the CVs c. Screening d. Interviews e. Selection The advantage of the external recruitment is that the employees have to work according to the conditions of the company. And the employee cannot leave the organization any time. The employees work effectively and efficiently. The disadvantage of external recruitment is that they have to bear a cost on advertisement, scrutiny, interviews and selection. And another disadvantage is that it consumes time.

INTERNAL RECRUITMENT
The internal recruitment is done at the middle and higher level of management. This is done because of referencing of some employees. The advantage of the internal recruitment is that it saves time and money. And also it provides the best alternative of the employee leaving the organization. The disadvantage of the internal recruitment is that sometimes it becomes bias, and the efficiency of the employee and the company is not up to the mark. This type of employee can leave the organization at any time.

PRACTICES AT MASOOD TEXTILE MILLS LTD REGARDING RECRUITMENT AND SELECTION:

Practices regarding the recruitment and selection are in accordance with the policies formulated by the HR department. According to employees following were the recruitment practices. Two types of Recruitments: Internal and External. Sources of Internal Sources of External Recruitment Recruitment Employee referrals Job fairs University Hunts Internal advertising Advertising Emplacement Agencies

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Walk in candidates

All recruitment and selection process is handled by the Human resource department. Selection criteria are totally based on merit. A series of interviews are conducted followed by a panel interview and a group discussion. Only deserving from a lot of applicants is considered.

Training means to enhance and polish the skill of any person that is helpful for that person. Training helps to improve the competency for the specific job in current scenario.

NEED ASSESSMENT
Recently Masood Textile Mills faces the problem in their Garment sectors and there is need of quality control of the garments, so for this reason there should be hiring of new employee and then there is a need of training for them.

TRAINING ON THE JOB OR OFF THE JOB

Mostly the training is done on the job because the mostly workers are not much educated, and most of the work is done in production area so the training is on the jab. For the higher level of management the training is off the job.

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DEVELPOMENT:
A very forceful and creative R&D department is always busy in exploring innovative product development enabling MTM to be ahead of many in the field. Our keen, broad and aggressive Merchandising team comprising experienced and trained MBAs functions with the core objective of rendering ultimate customer satisfaction through product development and smooth implementation of orders. They are capable and keen to meet an average 3~4 days lead time for proto samples.

POLICIES AT MASOOD TEXTILE MILLS LTD FOR PERFORMANCE MANAGEMENT:

The purpose of this policy is to evaluate work performance and to promote communication and discussion of job performance. The intent of our policies is to review current job performance and responsibilities, set goals, and discuss future opportunities with reference to past performance at Masood Textile mills Ltd.

FACTORS THAT AFFECT THE EMPLOYEE PERFORMANCE IN MASSOD TEXTILE LIMITED:

Mostly the environment affects the employee performance because the work of the Masood textile limited is manufacturing of garments.

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There are some environment that can be affect the performance in which the rule and regulation for the productions. Use and maintains of equipment and material that used for production of the garments. Ability factor also affect the performance. Because the mostly work done in the Masood textile is technical so there is need of technical skills. Physical limitations also affect the employee performance. Without these skills company performance can be decreased. The performance of the lower level employee is mostly managed by the supervisor of their related department. And the performance of the middle and higher level management is managed by HODs.

BENEFITS OF THE PERFORMANNCE APPRAISAL

The performance appraisal helps the company to identify what are strength and weaknesses in the employee performance. It also evaluates the past performance to provide the suggestion for improvement in employee performance. It also helps to identify, which employee is more beneficial for the company.

PRACTICES AT MASOOD TEXTILE MILLS LTD FOR PERFORMANCE APPRAISAL SYSTEM:

Masood textile mills ltd conducts performance appraisal in order to evaluate their employees current performance or past performance relative to companys performance standards. Masood textile mills ltd try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feed back, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par.

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There are many performance appraisal methods. Masood textile mills ltd measures the performance of the employee by a. Absolute standards and b. Relative standards.

ABSOLUTE METHODS
In absolute standards of measuring the performance the company evaluates the performance against the already established standards. In Masood textile mills ltd the absolute standards are used for the higher level of management.

RELATIVE STANDARDS
The relative standards are used to measure the performance of employee by comparing with the other employee performance with in the same level or grade.

Compensation management helps the organization to achieve its objectives to obtain and maintain and retain productive work force. Without proper compensation system company employees cannot be easily retained so get the loyal employee the company should provide two types of compensations. i. Intrinsic compensation ii. Extrinsic compensation.

INTRINSIC COMPENSATION
In Masood textile mills ltd provide intrinsic compensation such as participation in decision making of competitive employees. And also

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company provides opportunities for personal growth of competitive employee.

EXTRINSIC COMPENSATION:
In Masood textile mills ltd provide extrinsic compensation only in reward form. If employee works effectively then company provide different incentives. The Company is still not providing any fringe benefits to the employees.

JOB EVALUATION METHODS PRACTICES IN MASOOD TEXTILE MILLS LTD:

These methods are used to know the real worth of the job. The company practice two methods mentioned below: a. Job ranking method. b. Job grading method These both methods are being practiced by the HR department to get the real worth of the job. In raking method employees are divided into different levels. They used the level 1, level 2, etc. In job grading method we classify the knowledge, skill and abilities and other related factors. And then compare the job with the bench mark description of the job of each grade or class.

MARKET RATE AND COMPENSATION PLANS

The company use all the mentioned plans for the pricing the job i.e. a. Above the market rate b. At market rate c. Below the market rate All these based on the requirement and the situation of the job. The company focuses on the equity principle by leveling the salaries.

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Policies regarding the reward systems are practiced quite strictly at Masood textile mills ltd. Employees are paid when they are supposed to pay. Other rewards are also fast but they are mostly tenure based rather than performance based. In policies it is mentioned that the rewards are totally performance based. However, this policy is not that much followed strictly. Rewards are mostly determined by the organizational membership and seniority rather then by performance. Promotion is given on the basis of performance, as well as tenure.

BENEFITS OF THE HR AUDIT

HR audit mostly is conducted internally on annual basis. HR audit helps to find out the HR department contribution towards the company. HR audit helps to reduce companys HR cost. HR audit helps to find out the problems in HR department and smoothly solves them. It provide real image of the HR department practices. It is legal requirement for every company. One thing to mention is criteria for rewards. As mentioned earlier in policies, rewards are performance based. But this is true only in case of achievement awards, group awards etc. If we observe basic pays and increments then those are not performance based. Those are more of tenure based. Masood textile mills ltd does say that all rewards are performance based.

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There is no any labour union in the Masood textile mills ltd. if there is any problem with the employee, the employee can communicate to the its relevant department supervisor. If there is any serious problem with the labour they can communicate with the HR department. So this communication helps the company to get the loyal employee. There is no need for such measures at Masood Textile mills Ltd as maximum jobs do not expose you to the health hazards and are not such that require safety measures. However, there is a tendency of being safe in every human and that shows when you visit some Masood textile mills ltd officer to meet someone of a high designation level. You need to fulfill various safety measures.

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In Masood Textile Mills Ltd the only higher management are provided with the employee handbook so, that they come to know about the policies and strategies of the company.

SECURITY AND SAFETY POLICY:

Purpose: The safety of employees is everyones responsibility. Accidents, precaution and efficient work go hand in hand. All levels of employees have a primary responsibility for the safety and wellbeing of all of us. Therefore, interest encouraged by: a) b) c) d) e) in practicing safety prevention must be

Setting good examples. Acting upon safety records. Reviewing safety programs. Holding personal interviews or group conferences. Starting activities that will stimulate and maintain employees interests.

No phase of operation of administration is of greater importance than accident prevention. It is the policy of the Company to provide and maintain safe and healthy working conditions and to follow operating practices that safeguard all employees and result in safe working conditions and efficient operations. Proper First Aid Kit will be available at all Masood Textile mills Ltd Offices including remote locations.

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Masood Textile mills Ltd has a moderate HR system. However, there were some discrepancies that need attention and their adjustment can make this HR system best in Pakistan. Following are some of the recommendations based on those discrepancies: 1. Human resource department is not fully authorized to take all the decisions. Though HR department claims to have the overall management of the company but that actually is not the case. There are many HR decisions that are taken by the other department. So, there should be a clear delegation of authority regarding decision making for HR department.

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2. One thing we observed during our project was that employees were not aware of the in depth policies. The main reason that we have understood for this is their lack of knowledge about policies formulation. Employees are not encouraged to give suggestions in policy formulation. So, our suggestion is that employees should be consulted while policy formulation stage.
3. The employees in the company have not information about the

reward system so, Masood Textile mills Ltd should simplify its reward system for its employees to understand well.
4. The hiring and firing is virtually in the immediate bosss hand.

This practice can cause disharmony among employees for power. Team based structure (like the one at PMO) should be preferred in all departments. 5. Masood Textile mills Ltd HR lacks in terms of career planning and development. This important function of HR does not have recognition in Policies statement. Masood Textile mills Ltd should have a look at this. 6. Masood Textile mills Ltd uses only policy specified sources for recruitment which are only 5. In this way it can loose some potential applicants that can be asset to organizations, just because they were not well communicated. So, Masood Textile mills Ltd should increase its recruitment sources. During an HR specialist interview, we posed the same question and the answer was thats what policy says; on ground level we do use as many sources as possible. If this is the case then our recommendation is that Masood Textile mills Ltd should adjust its policy accordingly.

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To conclude Masood textile mills ltd has a strong HR system. That is the reason we didnt found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. There are some minor discrepancies but they are adjustable with little effort. In the company all the records maintenance is done on the computer and in their opinion the best thing about their company is that they are having computerized system for the whole company. They are using HRIS for the employees records and the information about their pays and performance.

Q. Is your organization practicing the HR practices? Q. How you staff your employees in your organization? Q. Do you conduct trainings for the development of your employees? Q. Do you think that the HR policies affect the employee performance?

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Q. Among the HR functions which functions you performed in your organization? Q. What are main issues you face by while implementation of any HR policy? Q. What type of challenges you face in your organization? Q. What are organization? the internal resources for recruiting in your

Q. What are the advantages of external recruiting method? Q. In your opinion what are the benefits of HR planning in your organization? Q. How the HR planning process performed by your HR department? Q. Are you having the HRIS in your organization? Q. In case of the surplus or shortage of employees how you manage this problem? Q. Has you ever conduct any training for the development of your employees? Q. Do you give orientation to your new employees? Q. Does training help the employee to get the require knowledge? Q. What is your opinion about the training should be off the job or on the job? Q. Do you agree that training will help organization to solve the quality control problem? Q. What you say about the performance management? Q. How your organization manage the performance of your employee? Q. How efficient or effective is performance appraisal system in your organization? Q. How do you measure performance of employees either by relative standards or by absolute standards?

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Q. How much effective compensation system you are having in your organization? Q. What kind reward mostly you give to your employees to motivate them? Q. How much effective is your job evaluation system? Q. You pay compensation to your employees i) above market rate ii) below market rate iii) at market rate? Q. What are the benefits of HR audit? Q. Is there any labour union in your organization? Q. What is the system of union in your organization? Q. What is the system of employee communication? Q. What are rules and regulations regarding health and safety?

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