HUMAN RESOURCE MANAGEMENT

PROJECT: STEPS of HR PROCESS and other FUNCTIONS in

In The Name of ALLAH The Most Gracious The Most Merciful

ACKNOWLEDGMENT
Accomplishment of this task was nothing but generosity of ALLAH Almighty whos countless blessings enables us to perform this obligation. We are deeply indebted to our family and friends for their support and encouragement which remains a chronic source of motivation. Special thanks are extended to Mr. Aftab Ali Butt HR officer of the company for his guidance, his personality was outstanding source of inspiration for all of us. We express our heartfelt gratitude to Sir Ali Abdullah who gave us this opportunity to learn the practicalities of Human Resource Management Department of the company. Finally I am gratified to my all group members for their relentless cooperation throughout the project, it was impossible for me to complete the task without their supportive efforts.

CONTENTS

INTRODUCTION (METRO). FUNCTIONS HR DEPARTMENT.... 8 HR PROCESS.. STEPS OF HR PROCESS .. 11 HR PLANNING....... RECRUITMENT . SELECTION ORIENTATION TRAINING & DEVELOPMENT PERFORMANCE APPRAISAL.. 24 COMPENSATION AND REWARDS.. CAREER PLANNING AND DEVELPOMENT.... 32 FLAWS SUGGESTIONS.... ANNEXURES

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INTRODUCTION
METRO GROUP OF COMPANIES:

Our aim is to present you constructive information, as regards our company that we trust it makes you trouble-free to do business with us. Established by "YUNAS" Group of Industries in 1973, incorporated as a Private Limited Concern on 7th October 1985. Begin with manufacturing of Electric Fans in Pakistan in the Brand name of METRO, in different designs and sizes. It includes special varieties of Ceiling, Pedestal, Exhaust, Double Action Bracket Fans, Table and Circumatic Fans which display their professional expertise, skill and are equally renowned locally and abroad. The Company has also started a new setup of manufacturing of Household Appliances, which include METRO Motor Cycles, Washing Machine, Gas and Electric-heater, Air Coolers and Geysers in beautiful designs.

As a corporate guiding principle, we at METRO believe in providing best of services to our clients with truthful information. Our extra friendly activities keep our members and dealers cheerful and always ready to provide a helping hand.

MISSION
The main goal of METRO, is to improve the level of customer service in Motor Bikes, Electrical Fans and in Household Appliances Manufacturing. Hence the operation of the delivery services and distribution Is. professionally handled by the experienced staff. We believe in providing fastest and efficient services to our clients backed by the State of Art Manufacturing equipment and modern quality control systems. All these things are our back-up power to achieve our targets and goals. Our mission is to set our operations around your needs, building a one to one relationship with each individual customer and tailoring our service according to your requirements.

VISION
MEETING YOUR DREAMS Quality is everything what we execute, Right first time, on time, every time. WE INNOVATE NOT IMMITATE. We being quality conscious are approved by following quality institutions:

METRO Quality Products have been awarded Certification ISO-9002:1994. Certificate No. Q-SC-5755 DT 5/4/2000 by DET Norske Veritas (DNV)..

Saudi Arabian Standard Organization (SASO) under International Conformity Programme by Intertek Testing Services (Singapore) Pte Ltd.

Pakistan Standard and Quality Control Authority, Standard Development Centre (PSI-1). Also Registered with E in Cs Branch, General Headquarters, Rawalpindi (M.E.S.) Enlisted as Manufacturers/Exporters in Engineering Development Board (E.D.B.) Ministry of Industry, Government of Pakistan.

"The first Pakistani fan which is registered with Government of Kuwait".

We have met all the above quality certifications criteria due to our highly qualified, experienced and devoted operational staff under the supervision of professionals, supervisors & inspectors under secure working environments. We are producing environmental friendly and energy saving products

RESOURCES
The Industry operates from 25 Acres facility incorporating Factory, Stores, Offices and Display Centre. Workforce = 600 Office Staff = 60 International Marketing Coordinators =77 International Dealers =41 Board of Directors =5 Distributors in Pakistan =110

Fixed Assets Value = US $ 5 m Stock Value = US $

FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

The HR Department at Metro is responsible for a number of activities pertaining to Human Resource Management & Development. These include: Employment (recruitment, selection and induction into the organization) Promotion, Layoff (checking conformity of skills with new department in case of transfer) Training and Development (coaching, performance appraisal, job rotation , feedback) Compensation Administration (designing and implementing employee evaluation program, pay structure, maintaining records)
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Benefits and Services (pensions, insurance programs, sick leave pay plans, loan funds) Equal Employment Opportunity (no discrimination in terms of gender, race, age, national origin, religion)

Human Resource Process

Job analysis:
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Job analysis is done to know the work activities, human behavior, and working conditions of a particular job. In this, HR manager want to know the machines and tools which are used to perform that job. He may also want the information about the jobs performance standards. He also collects the information about the human skills which are required for the job. In Metro, job analysis is done by HR officer (Aftab Ali Butt). He collects all the information by using interview technique. He asks questions about the job and other job related questions. He asks the questions such as o What is the job being performed? o What are the major duties? o What are the working conditions? o What are the job duties and responsibilities? o What is your education? o How many years of experience you got? o What are the other skills you posses? o What is the jobs physical demand? o What are the health and safety conditions? o In which activities do you participate? these were some questions by which he collects information about job from employee. Using this information, he prepares a complete job analysis.

This information about job is then used in two ways

1) Job description

2) job specification

Job description:
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in job description, information about what a worker actually does, how he does it, and what the working conditions are is written. In Metro, the job descriptions are written by using the information collected from job analysis. They write job name, job function, job duties, limit of authority and skills required for the job in job description. This enables them to know the duties of that particular job and use this information at the time of recruitment for that job.

Job specification:
Job specification consists of the information about the human traits and experience which are needed to perform a particular job. In metro, job specifications are also derived from job analysis. They write all the human traits which are required to perform a job successfully. This is all helpful for them while creating a pool of candidates. Job specification is used for launching a recruitment campaign.

STEPS OF HR PROCESS:
The steps of hr process which are performed in METRO are:

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HR PLANNING

HR planning in hr management is a process by which an organization ensures that it has the right number & kind of people at the right place and at the right time, capable of effectively and efficiently completing those tasks that help the organization achieve its overall objectives.

It is the process of identifying

the gap between what is the current business

situation/ current manpower and what is the future business situation / manpower need and developing a plan to fill the gap with numbers of additional workers/staff /

managers etc skills of different levels flexibility in job handling achieving equal employment opportunities experience- lifting the experience levels capabilities

improving capabilities for performance

increase potential of people training.

Forecasting future manpower requirements, where we use mathematical projections to project trends in the economic environment and development of the industry.

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In metro. Planning and forecasting is not properly done. They dont plan their future manpower needs. They dont use any of the forecasting technique. They dont predict their future human resource needs and how they will fill these needs. They start their recruiting and selection procedure only when there is demand of the new employee for any of their department. If one of the in departments needs a new employee, the head of that department will send their need to HR department and the post name for which they are needing a new employee. Then, the HR department starts the recruitment campaign, by using the job description and job specification information.

Recruitment

Recruitment is a main part of any organization. If an organization cannot hire a competent employee for a specific job then they cannot improve their services. An unskilled or incompetent employee can cause a big loss for the company.

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In metro, candidates are recruited from different sources. These are internal as well as external.

Internal sources
Rehiring
Employees are rehired according to needs of the job. Former employees are rehired for the benefit of the organization, as they know the organizations culture style ant style, and ways of doing things.

SUCCESSION PLANNING
Metro company also emphasis on succession planning for high level jobs. They develop the skills of their employees for their higher jobs. This recruiting technique is very efficient for executive jobs.

EXTERNAL RESOURCES

Metro company cant get all the employees they need from their current staff, and sometimes they just dont want to. So they have to use different external sources for recruitment. Which are

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 Via internet

Metro companies recruit the candidates via internet. For this purpose. They have registered their organization on the website; WWW.ROZZEE.COM.PK They post their job ads on this website and the eligible candidates access them via this website and submit their C.Vs through internet and get the job.

ADVERTISING

Metro company also recruit the people by advertising their job needs through media. Mostly, they use newspaper for this purpose. They advertise on daily local and national newspapers like JHUNG, JAZBA etc

EMPLOYMENT AGENCY

Metro company also has an agreement with an employment agency named GREENLAND AGENCY with provides the recruiting services to metro. They recruit and select the employees on behalf of metro. Metro provides their manpower needs to the agency with their required human needs, then the agency select the best suitable employee for metro and gets the commission from metro.

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 College recruiting

Metro is also involved in college recruiting. They recruit and select the fresh students from colleges. They hire the technical students. For this purpose, they go to o SWEDISH INSTITUTE OF TECHNOLOGY(GRT) o FARAN INSTITUTE OF TECHONOLOGY (GRT).

Employee referrals

Metro company hires their low level workers purely on the basis of the referrals of the employees already working there. Employees are asked to recommend a person for the job opening. As far as working staff concerns the workers in Metro are employed on referral basis. The company basically needs the hard working workers. There is no need of any type of qualification. All they need is commitment of employees for their work. The existing employees used to give references of further employees if company needs. And the references of the workers with good background history and fine output records are given preferences over others

Considerations:
The quality of employee referrals is usually high. Employees usually only refer people t hat they are confident would be a good match for the position and organization.
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People tend to recommend others with similar backgrounds. Therefore it is important to ensure that the practice of employee referrals does not lead to a decrease in diversity within your organization. People recruited by your staff usually have some understanding of the work of the organization

SELECTION

Selecting the right employee for any organization is very important. It helps organization in meeting its goals and objectives because only a suitable employee will be able to perform his duties efficiently, also a right person selected for the job can take some affective decisions that will help an organization in growing quickly. Human Resource Managers should make sure that they select only that person that has best qualifications, skills and experience available which matches to job specification of a job. If Human

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Resource Managers select an imperfect employee for the job based on some favoritism or biasness, the org will have to pay the price because that employee will not be able to perform his duties efficiently and also the reputation of the organization will be bad in the minds of public. So it is necessary for a Human resource Manager to hire the best candidate available to them

SELECTION POLICY
EEO main focus is on the qualification, skills, experience preference to internal source the head of the department who needs the a new employee makes the final decision

EEO
Metro hi tech is a well known organization nationwide does the right thing, they select a person for a job according to law of EEO. They completely follow Equal Employment Opportunity Law. What so ever, they select the person on merit, they dont discriminate and that shows why Metro name is spoken among some of the countrys best organization of automobile industry.

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MAIN FOCUS ON THE QUALIFICATION, SKILLS AND EXPERIENCES:

They select the people on their quality, qualification, experience and skills. They select candidates for the jobs in the organization only on external trade and not on the internal trade. Many organizations in the country select people because of they are well groomed or they are good looking, favoritism is practiced in many of organization throughout the world. People are selected because of gender, religion or race preferred by the employer or just because of they are attractive. But that is not the case in Metro, Metro in fact only

select the candidate on the basis of their external trade i.e. education, skills. They think that it does not matter what a person is by birth, the only thing that matters to them is what he has achieved so far in his life and how his education, skills or experience can help their organization.

First Preference To Internal Employees:

Metro prefers internal source than the external, it likes to select their own employees, like promoting them to vacant position rather than directly going to external sources, but if it thinks that internal employees are not suitable to fill a vacant position then it goes to external sources and hire and select the candidate from outside of their organization

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THE

HEAD

OF

THE

DEPARTMENT

WHO NEEDS THE A NEW EMPLOYEE MAKES THE FINAL DECISION:

Interview is conducted in Metro for selecting a person. Both HR manager and concerning manager are present in the interview. Concerning manager and Human Resource Manager both participate in selecting a candidate and then the final decision is made because they want to select the best candidate available to them, but the final decision is made by the concerning manager himself, because he has asked for the new employee.

SELECTION PROCESS

1. Receive C.Vs :
First of all in selection process C.V.s are collected of the candidates that apply in Metro for a particular job.

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2. Short listing of Candidates:

First Human Resource Manager short lists the candidates on the basis of their C.Vs and after best candidates are separated from the others. The line manager of the department in which the job is vacant, short list the candidates also on the basis of C.Vs. Thats how the best supply of the candidates is got by Metro. 3.

Interviews:
After short listing the candidates, candidates are called for a interview. Technical Interview is taken In Metro. Both Human Resource Manager and concerning Manager are present at the interview. Comfortable environment is provided to interviewee. As concerning manager knows all about the job for which they are selecting the employee so he asks technical questions related to job to see how a candidate reacts. They also give time to candidate to speak, they do not rush in the interviews, and candidates are completely provided with chance to speak. They notice the body language of the interviewee as well whether he is nervous or confident. Before concluding the interview they explain the job to interviewee also and then they close the interview in a very friendly manner, one of them even opens the door for the candidate to leave. Thats how

by providing candidate with proper time to speak and asking the relative analysis, they analyze that whether he is suitable for the job or not.

4. Final Selection:

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By the combine decision of the HR manager and concerning manager, the best suitable candidate is selected.

5. References:
After the selection, references of that employee are contacted to get information about the previous reputation of the candidate. This helps Human Resource Manager to analyze the past life of the candidate.

6. Placement on the Job :

After checking out the references, candidate joins the organization after one month notice

Orientation

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After a person is hired in an organization then the first thing to do is to introduce him with the organization, its objectives, its processes, and its people. Metro also do that when they hire a new employee. When a new employee joins the organization then the company organized a small party called orientation in the department in which he is being hired. In this way the fresh employee can easily come to know about the system of the department as well as the company. The HR manager introduces the fresh employee with the colleagues, sub-ordinates, and the systems of that company. He Introduces the new employee to the supervisor he will be reporting to, if he haven't already met. He shows him his work station and where to get any supplies he might need. He talks briefly about important contacts he will want to remember, such as the person responsible for ordering supplies, the payroll person and any others he feels are key to the operation.

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Training & Development

Training is a process of teaching new employees the basic skills they need to perform heir jobs. Development refers to the teachings which will lead the employee for future efficiency. Training holds a lot of significance in any organization. By providing the training to its employees, an organization can adapt to any kind of changes no matter whether it is a legal, technological or economical change. Training step starts immediately after the orientation of the employee. Sometimes, it depends on the nature and kind of job. If the job is entirely new, and the employee does not have any previous experience about the activities of the job, then he will need immediate training after being employed, otherwise, training will be depending on the performance of the employee. If his performance is up to the mark then, he will not be trained, otherwise he will be trained. Metro company also uses the tool of training to increase the performance level of their employees. Firstly, they see that is there any need to train the employees. After that, they identify the employees which are lacking in performance and need to be trained. Then they implement the suggested training program on those employees. They mostly use two training methods. Which are:
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 On

the

job

training:

(OJT)

They use on the job training to train their lacked employees. For this purpose, they mostly apply coaching method, in which they assign a coach on the employee, which guides the employee that how to work in different situations. This is a very effective source of training and its results are very fruitful.

Lecture type training:

Another way to train which is applied in Metro is conducting lectures. A supervisor of specific department is assigned the obligations of the instructor and the employees who are to be trained are asked to attend the lecture in the demonstration hall at predefined timings by the HR department. In this way, junior employees acquire the exposure of senior experienced employees.
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PERFORMANCE APPRAISAL

PERFORMANCE

APPRAISAL

SYSTEM

DURATION

(AFTER WHAT DURATION EVALUATION TAKES PLACE)

In Metro, evaluation on the basis of performance of every employee is been done, once every year. In Metro, performance evaluation of an employee is been done at the start of every year. At first, line managers evaluates employees, while having an eye on their performance throughout the year afterwards their performance form is sent to the executives and then they evaluate the employee by themselves too.

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WHO ARE THE RATERS?

Line manager rates the employee by keeping in view his performance of the specific time period through performance appraisal form After complete assessment, annual confidential report is prepared and sent to departmental head who decides how to compensate the employee for his satisfactory or unsatisfactory performance

HOW FEEDBACK IS GIVEN?

The feedback is given in the written form to the employee whose evaluation has been taken before. Any sort of ambiguities of the employees are tried to be solved out after the feedback is taken.

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Compensation & reward

Compensation is one the most important human resource management functions for the Metros HRM department. It helps to reinforce the organizations culture and the key values and to facilitate the achievement of its strategic business objectives. To encourage performance it is obvious that it must be rewarded. Metro just does that. Employees who
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have contributed the most in the achievement of the organizations strategic business objectives receive greatest rewards. Thats also the way they motivate their employees.

BENEFITS;

The receipt of the benefit is determined on the bases of level rather than on the basis of position. Level of the designation decides the level of benefits, whereas all the employees working at same position are given the same benefits regardless of their merit, performance and duties

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PROVIDENT FUND:
All permanent employees are entitled to become its member. The company contributes eleven member percent of the basic salary to the fund; an equal amount is contributed by the

GROUP, LIFE INSURANCE:

All permanent employees are covered against death and disability up to 200,000 and Rs. 50,000 for the management and the non-management staff respectively.

WORKPLACE SECURITY;
Metro ensures that all its present and future activities are conducted safely, without endangering the health of its employees, its customers and the public. Therefore it develop plans and procedures and provide resources to successfully implement this policy and for dealing effectively with any emergency. It provides environmental, health and safety training to all its employees and other relevant persons to enable them to carry out their duties safely without causing harm to themselves, to other individuals and to the environment.

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LOAN FACILITY:
Metro offers loan facility to their employees. They can get the loan from the company and use that to build and buy houses. The employee can get the loan up to 70% of his provident fund. This is a good tool to motivate the employee and he become motivated and loyal towards the organization.

HOUSING FACILITY:
Metro company also offers free housing facility to the employees which have come from far areas. This is very helpful and motivating activity for the employees.

WORKING ENVIRONMENT:
Metro is committed to running their business in an environmentally sound and sustainable manner. They set goals for continuous improvement in their development, sourcing, manufacturing, and transportation activities. As part of that commitment, they take a long term and life cycle view, continually improving environmental performance,

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communicating openly with their stakeholders and reporting regularly on the companys performance. Every manager and supervisor is responsible to see that there is no violation of laws within his / her area of responsibility which proper supervision could have prevented. The manager and supervisor is held responsible if he / she delegates particular tasks.

LEAVES OR ANNUAL VACATION:

Leaves are the legal right of the employees. Metro provides 25 annual leaves to all its employees. It is a company policy to encourage employees to take time off from work to reduce stress level and break out from the day to day routine in order to spend some quality time away from work. Accumulating compensated absences Provisions are made annually to cover the obligation for accumulating compensated absences and are charged to profit.

EMPLOYEE RETIREMENT BENEFITS:

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The main feature of the schemes operated by the company for its employees is as follows:

All the executive staff members participate in an approved funded defined benefit pension plan. In addition, there is an approved funded defined benefit gratuity plan for all employees. Monthly contributions are made

FIRING OF AN EMPLOYEE:

According to Metros policy management try to improve and polish the skills of an employee through organizing different training programs but if the employee are not still giving desire results after the training then ultimately management take a step which is unfavorable for employee. Other reasons of dismissal are given below;

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REASONS:

Misconduct Neglect of duties Dishonesty Drunkenness Absenteeism Incompetence Disciplinary rules are not met.

WAYS OF DISMISSAL:
The procedures of dismissal are given below; Management entitled to terminate the contract by providing reasonable notice to employee The copy of notice is also given to HRD HRD study the case and give the specific time to employee for reporting(normally 3 days). If the employee is not able to defend himself then HRD terminates the employee. If there is some problem with the employees performance then he/she is given oral warnings and notices even then if there is no improvement in employees performance then HRD terminates the employee. If the case is confusing and in favor of an employee then HRD have a right to cancel the notice and restore the employee on his same designation and monitor there working.

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Career Planning & Development

PROMOTION
Management would always prefer existing employees for promotion against vacancies. However, if experienced person is not available within the company, management has the right to employ experienced persons from outside in the best interest of the company. Department head will recommend the employee for promotion to the vacant position and Human Resource department will determine the salary within the available grade, based on the performance and his education and experience. All promotions will be approved by the Chief Financial Officer.

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JOB ROTATION
Moving the employee through a pre-planned series of positions in order to prepare the person for an enhanced role with the company is job rotation. Metro company also follow the job rotation policy to make their employee learn and enhance their skills. This will lead them to the development of their career. In Metro, this policy is practiced within a department. They change the jobs within to increase their skills and to let them know the whole process of the department. This process increases the productivity and efficiency of an employee.

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FLAWS:

No proper future planning. Metro prefers internal source of recruitment a lot. TETRA PAK gives priority to promotion from within and job posting over external sources of recruitment. The job analysis is done through interview which can be misleading because of distortion of information. The employee can give false information as well which will be harmful for the organization, as job analysis has an ultimate effect on recruitment and selection. There is not any concept of job enlargement, job enrichment and dejobbing which are the main stream of modern day HRM and very fruitful for the organization. The outsource of executive level persons from other companies which violates the law of EEO. Metro does not investigate about the past of their selected employee and this can be harmful to them in future. They only contact to a candidates references, and it

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is obvious that references which candidates have provided will only talk about the goodness of a candidate.

They dont take any kind of test while selecting a new employee that can be a good tool of evaluating the skills of the people.

They conduct only constructed interviews. In this case, there is a possibility of neglecting the question that must be asked to the candidate. They take one-on-one interview from the candidate which is lesser efficient tool as compared to panel interview. The productivity of employees is not satisfactory because the company is not giving proper attention in training and development. By formulating recommended training and development strategies company can generate proficient workforce. The bonus strategies are in accord with the ranks, which can demotivate the deserving employees. So company should reestablish the bonus strategy so that the deserving employees are properly compensated according to their worth. For the sake of performance appraisal company is currently using performance appraisal form which is not enough for sufficiently measuring the performance level. Company is lacking in formulating any strategy regarding employee relations building. Necessary activities are organized by the company for this purpose. Leaders in Metro are not positive role models. Employees in Metro do not take their leaders as positive role models. This means that leaders in Metro have such
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an attitude or they perform in such a way that does not attract or impress their subordinates, employees do not learn any thing from their leaders which raises the chance of conflict between them.

SUGGESTIONS:

There should be proper future planning for better performance. They should not consider only employee referrals for hiring workers because it might be less productive for the organization. The company should try to integrate both internal & external hiring techniques in order to attract and select the best available employees They should not use only Interview method for job analysis because it may lead to the distortion of information. Instead they should use multiple techniques as a tool to obtain correct and proper information, as job analysis has an ultimate effect on recruitment and selection.

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 There should be the concepts of job enlargement, job enrichment and dejobbing because they are the main stream of modern day HRM There should be a friendly working environment for all types of positions in an organization. Metro should give special instructions to the supervisor that they should create friendly environment and should be open to their comments. Human Resource Manager of Metro must investigate about the past of a candidate; before putting him on the job HR manager should know things like, Does candidate have some criminal record? Does an employee drink or not? So Tetra Pak may not suffer because of an employees disciplinary actions They should not outsource the executive level persons from other companies They should take different tests while selecting the new employees so that it may be proved helpful for choosing best suitable person for the job.

They should conduct structured interviews as well other than unstructured interviews so that there might not be the possibility of neglecting any kind of question. They should use the panel interview method rather than one-on-one interview, so that it can give efficient results. They should give proper training and development to the employees to generate proficient workforce. The bonus strategies should not be in accord to the ranks, it must be according to the performance of employees so that the deserving employees may not be demotivated. The company should improve their Performance Appraisal System by conducting Appraisal Interviews along with the current system.

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 They should formulate strategies regarding employee relations building for the betterment of the organization. Leaders should be positive role models for their employees. There should be special instructions given to leaders to act in a manner, so that the employees under them must learn from them. Leaders should be punctual, lenient, and knowledgeable and should motivate employees under them so that employees take them as their role models and learn from them. This will help the organization ultimately to achieve their goals.

ANNEXURES
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