WAQAR AKHTAR BB-10-02

AMIR JABBAR BB-10-08

NAVEED AHMAD BB-10-75
GROUP MEMBERS


Term Report HUMAN RESOURCE
MANAGEMENT


Fatima Group and Allahdin Group of
Companies :
FERTILIZERS SECTION
Table Of Contents
TOPICS
Overview of the Organizations
Nature of the Business and it
Activities
Business Volume
Human resource process
comparison in Two Organization
SWOT Analysis of Human Resource
process
Recommendations
Amir Jabbar
BB-10-08
Overview of the Organization
Brief History
Nature of the Organization
Business Volume
Product Line
Number of Employees
Brief History
Pakarab Fertilizers
Established in 1973
Agreement signed PIDC and
ADNOC
Shares:
52% NFC
48% IPIC
It was then acquired by
Fatima Group and Arif
Habib Group in 2005
HFC Fertilizers
Established in 1968 by
Lyallpur Chemicals &
Fertilizers Pvt. Ltd.
Purchased by AGC in 2006
Renovated to meet the
global standards
Now called as AL-HAMD
Fertilizer Pvt. Ltd
Pakarab HFC
HR Department
Nature of the Organization
Pakarab Fertilizers
include manufacturing of
the plant nutrient,
packaging, transportation,
distribution and export
Annual Production
90,000 tons Urea
450,000 of tons CAN
305,000 tons NP
847,000 tons of multi product
HFC Fertilizers
It is also a manufacturer of
plant nutrients, packaging,
And Transportation
Producer of
SSP (single super phosphate)
Sulphuric Acid
Zinc Sulphate
bio gold
bio fertilizer
Business Volume
Pakarab Fertilizers
EPS: increasing positively
Operating and Net profit
increases
HFC Fertilizers
Almost a turnover of 1
billion
Product Line
Pakarab
Urea



Calcium Ammonium
Nitrate (CAN)
Nitrophos (NP)

HFC Fertilizers
SSP (single super
phosphate)
Sulphuric Acid
Zinc Sulphate
bio gold
bio fertilizer
Number of Employees
Pakarab Fertilizers HFC Fertilizers

Senior Executive


Middle
Managers

Junior
Management
Officers
20-80 Ratio
WAQAR AKHTAR BB-10-02
COMPARISION OF HR PRACTICES: PAK
ARAB FERTILIZER VS. HFC
COMPARISION
1. HR planning and forecasting:
PAK ARAB HFC
A Proper HR Process Is Followed
HOD Determines need and
forecasts it
Budget is assigned for yearly
hiring
Forecast is done on the basis of
production to be done
Long-term yearly plan exists
Talent hunts are planned in
institution like LUMS, IBA
HR Processes Not Followed So
Formally
HOD determines need for hiring
No yearly hiring program
HR need forecast is done on the
production basis
Needs are determined on
seasonal basis
No talent hunt program
PAK ARAB HFC
Policy issues are formally addressed
Proper test, interview and group
discussion takes place
Mostly ads are given, interview is
taken for replacement decision, due
process
1
st
priority is internal source
Meritocracy is valued
Special preferences to institution like
LUMS, IBA
Policy issues not given much weight
age except for legal requirements
After application just interview is
done
Inside hiring for replacement
decisions
1st priority is internal source of
hiring
Meritocracy is valued
No institute based preferences
COMPARISION
2. Employee recruitment and selection:
PAK ARAB HFC
Training for all level of employees
Department head assesses need for
training
Training focused of all level equally
Practical workshops, seminar for
high level employees
Clearance and budget is approved by
CEO
Training programs are highly
formalized at all levels
Training for all level of employees
Department Head assesses need for
training
Training more focused on sales
person
seminars are conducted, farmer
days are celebrated, field meeting are
done, sales conferences
Same is here. CEO give permission
and budget
COMPARISION
3. Training and development
PAK ARAB HFC
Performance standards are target
based
A formal appraisal form is
forwarded
Under performance doesnt lead
to firing
Incentive are not a very common
practice
no recognition or award

Performance standards are target
based
Appraisal form is not a common
practice
Consistent under performance
leads to firing
Incentive exist but dominantly for
sale person
Employee or sales person of the
year award exists.
COMPARISION
4. Performance management:
PAK ARAB HFC
Pay structure: 90% basic + 10 %
health allowance
Yearly increment is done
2 bonuses per year and a
graduate is paid at every year end
Cars are given to managers
Pay structure: 45% basic salary +
27.5% house rent + 27.5% utility
bills
Yearly increment is done
No bonuses of graduate
No such package like a car
COMPARISION
5. Employee compensation and benefits:
PAK ARAB HFC
A job rotation policy exists to give
the employee exposure, somehow
career management exists
Career management
practices do not exist
COMPARISION
6. Organizational career management

COMPARISION
7. Job changes within organization
PAK ARAB HFC
A promotion policy exists thorough
which employee is promoted after
every 3 to 5 years
Transfers are need based and exist
Firing is very rare, so is demotion.
But promotion is stopped as an
alternative for demotion
1 month notice for resignation for
permanent employees
Employee retire at the age of 60
No promotion policy exists but
employee are promoted on
performance basis
Geographical transfers are not a
common practice
Demotion dont exist, it just goes
to firing
1 month notice for resignation of
permanent employee
No fixed retirement age
COMPARISION
8. Unions and management

PAK ARAB HFC
Unions exist but do not
have much bargaining power
Unions do not exist

Naveed Ahmad BB-10-75
SWOT ANALYSIS AND
RECOMMENDATIONS
STRENGTH:
Entrepreneurial leadership exists in Pak ARAB
Facilities for workers (house, medical center, school,
management etc.)
Best Management team for fertilizers firm in Pakistan
Full formalized HR processes exist
Experienced workforce exists and employees are highly
motivated
Career management is done to some degree
Frequent training for all level of employees
Managements attitude towards employees is very positive

SWOT ANALYSIS
PAK ARAB (FATIMA GROUP)
WEAKNESS:
Incentives are very less, the only incentive is
yearly salary increase
Equal treatment for all the employees even
some of them are performing better
Working hour are two much, employees get
tired

SWOT ANALYSIS
PAK ARAB (FATIMA GROUP)
OPPORTUNITIES:
HR needs will increase as the demand for fertilizer
increases
New HR practices can be employed to make man
force more effective.
The gas line project is an opportunity of expansion
for the company in near future

SWOT ANALYSIS
PAK ARAB (FATIMA GROUP)
THREATS:
High competition means high turnover of employees
In order to retain employee organization will have to
reduce some profit and give employees more
compensation
The shortage of gas is creating inconsistencies in the
production making the need for employee
inconsistent
Global crisis which leads to low incentives for
employees
Increased labor regulation laws can be threatening

SWOT ANALYSIS
PAK ARAB (FATIMA GROUP)
SWOT ANALYSIS
HFC (Allahdin Group of Companies)
STRENGTHS:
Management is supportive towards the HR
practices
Clean environment for employees where they
work
Healthy environment for manual workers
Incentives exist and lead to higher motivation of
employees
Training and development process is formalized
Sales force is highly active achieving targets
because they are properly trained
WEAKNESS:
Employees are not very specialized in HFC
HR practices exist to a certain level but there is a lack
of a formal HR system
A formal appraisal system does not exist
Career management practices are absent
Seasonal nature of business makes turnover high
because of which motivated employee do not exist
Fewer seats for permanent jobs are there, mostly
there are employees on daily basis and contract basis

SWOT ANALYSIS
HFC (Allahdin Group of Companies)
OPPORTUNITIES:
Growing need for fertilizers leads to increase
in employee demand and an opportunity to
develop a good formalized workforce
Entering in other cities means people across
the country can join and a more diverse
workforce will be part of the company

SWOT ANALYSIS
HFC (Allahdin Group of Companies)
THREATS:
Increasing demands of employees will give
them more bargaining power
Increased competition means more incentive
to motivate employee properly
Legal restriction regarding labor may increase
in future


SWOT ANALYSIS
HFC (Allahdin Group of Companies)
They need to maintain existing HR practices and look for
new developments in HR.
They need to change their perception of employee from
worker to a partner.
They should expand their HR department and try to
develop a system in which they can accommodate
diverse workforce.
Due to increasing need for efficiency Pak Arab needs to
run regular training program for employees so that they
remain aware of state of art technology.
RECOMMENDATIONS
PAK ARAB (FATIMA GROUP)
The HR process should be made more formal.
Training and development should expand beyond the
sales department to all other departments
A proper appraisal method should be established.
Bonuses and other incentive should be given to
employees as well.
Over all the company should fine tune its HR processes
and make them formal, standardized.
RECOMMENDATIONS
HFC (Allahdin group of companies)
CONCLUSION