AIOU HRM Internship Report (Shaheen Paharmaceuticals)

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    INTERNSHIP REPORT

    SHAHEEN PHARMACEUTICALS

    Specialization: Human Resource Management

    Submitted To: Chairman, Deptt. of

    Business

    Administration

    Submitted By: (Name of Student)

    Roll No.

    Registration No.

    Address

    DEPARTMENT OF BUSINESS ADMINISTRATION

    ALLAMA IQBAL OPEN UNIVERSITY,

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    H-8, ISLAMABAD

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    ACKNOWLEDGEMENTS

    All praises and thanks are forALMIGHTY ALLAH who is entire source of

    all knowledge and wisdom to mankind.

    Special praises for the HOLYPROPHET MUHAMMAD (P.B.U.H) who

    forever is touch of knowledge and goodness for humanity as a whole on the

    successful completion of the project. I would like to acknowledge my deep sense of

    gratitude and indebtedness to academic assistance of my best teacherMr. Mujeeb

    Alam, without his continued guidance and timely advice the completion of this

    report would have been difficult. He has been a source of continuous encouragement

    throughout the execution of my internship period.

    Words cannot say the gratitude that we feel for our parents, friends and the

    members of my family whose affection and prayers have always been the key to my

    success.

    I applaud the nice company of my best and true friendsMr. Sir Zamin Khan,

    Mr. Riazand all the class fellows during the past few months of MBA studies. I will

    always remember my association and affinities with all of them and treasure the

    good days and happy moments spent with them.

    Finally I am also very thankful to all members of Shaheen

    Pharmaceuticals, with out their guidance and help, it will be impossible for me to

    complete my internship. I am thanking the management of Shaheen

    Pharmaceuticals for rewarding me such a great experience during my stay.

    Thanks to all who helped me in completing my project.

    I

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    Table of Contents:

    COVER PAGE

    ACKNOWLEDGEMENT I

    TABLE OF CONTENT II

    LIST OF TABLES & ILLUSTRATIONS IV

    EXECUTIVE SUMMARY V

    1 OBJECTIVES OF STUDYING THE ORGANIZATION 1

    2 INTRODUCTION TO THE ORGANIZATION 2

    3 OVERVIEW OF THE ORGANIZATION 4

    3.1 ORGANIZATIONAL STRUCTURE 5

    4 ORGANIZATION STRUCTURE OF HUMAN RESOURCE DEPARTMENT 6

    5 HUMAN RESOURCE MANAGEMENT PROCESSS IN ORGANIZATION 8

    5.1 HUMAN RESOURCE PLANNING & FORECASTING 10

    5.1.1 HRP PROCESS 11

    5.1.2 FORECASTING HR REQUIREMENTS 13

    5.1.3 METHODS FORECAST HR NEEDS 13

    5.2 EMPLOYEES RECURITMENT & SELECTION 15

    5.2.1 SOURCES OF CANDIDATES 17

    5.2.1.1 INTERNAL SOURCES 17

    5.2.1.2 EXTERNAL SOURCES 18

    5.3 TRAINING & DEVELOPMENT 19

    5.3.1 TRAINING NEED ASSESSMENT 19

    5.3.2 EMPLOYEES DEVELOPMENT 20

    5.4. PERFORMANCE MANAGEMENT 22

    5.4.1 PERFORMANCE STANDARDS & EXPECTATION 23

    5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN 23

    5.5 EMPLOYEES COMPENSATION & BENEFITS 25

    5.5.1 TYPES OF COMPENSATION & BENEFITS 26

    5.6 ORGANIZATIONAL CARRER MANAGEMENT 29

    5.6.1 EMPLOYEE JOB CHANGES 30

    5.7 JOB CHANGES WITHIN ORGANIZATION 31

    5.7.1 PROMOTIONS 32

    II

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    5.7.2 TRANSFERS 32

    5.7.3 DEMOTIONS 33

    5.7.4 SEPARATION 34

    5.7.4.1 LAYOFF 35

    5.7.4.2 TERMINATION 365.7.4.3 RESIGNATION 37

    5.7.4.4 RETIREMENT 38

    6 LABOUR MANAGEMENT RELATION 39

    7 SWOT ANALYSIS (STRENGTH, WEAKNESS, OPPORTUNITIES & THREATS

    FOCUSING ON THE HRM PROCESS IN THE ORGANIZATION 41

    8 MAIN WEAKNESS OF THE ORGANIZATION 44

    9 RECOMMENDATION 45

    10 CONCLUSION 47

    11 REFERENCES 49

    12 ANNEXES/APPENDICIES 51

    A-01 APPOINTMENT LETTER

    A-02 INTERNSHIP CERTIFICTAE

    A-03 MONTHLY EMPLOYEES STRENGHT REPORT

    A-04 EMPLOYEES WAGES & SALARY REPORT

    A-05 EMPLOYEES ABSENTEESM REPORT

    A-06 EMPLOYEES TRAINING RECORD

    A-07 EMPLOYEES TRAINING SCHEDULE

    A-08 EMPLOYEES PERSONAL FILE CHECKLIST

    A-09 EMPLOYEES WAGE & SALARY RECORD

    A-10 EMPLOYEE SALARY SLIP

    A-11 EMPLOYEES PROVIDENT FUND RECORD

    A-12 RECRUITMENT & APPOINTMENT PROCESS

    III

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    LIST OF FIGURES & ILLUSTRATION

    FIGURES

    Figure 1 Structure of HR Department 6

    Figure 2 Shaheen traditional style of management 9

    Figure 3 Shaheen modern projectized style of management 9

    Figure 4 Human Resource Planning Process 11

    Figure 5 Forecasting Techniques 13

    Figure 6 Estimating internal labor supply 14

    Figure 7 Sources of Recruitment 15

    Figure 8 Stages of Recruitment 16

    Figure 9 Sources of Candidates 17

    Figure 10 Performance Management Cycle 22

    Figure 11 Employees Categories 25

    Figure 12 Composition of Salary 27

    TABLES

    Table 1 Table showing current and needed staff level 12

    EXECUTIVE SUMMARY IV

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    Irrespective of the size or objectives of an organisation, the most valuable

    resource it possesses is its workforce. Without workers who are both

    efficient and effective, the long-term success of an organisation cannot be

    assured. The human resource of an organisation is its entire workforce

    from managing director to part-time cleaner. Each person is employed to

    perform specified functions which play their part in the overall success or

    failure of an organisation.

    It is the human resources employed by an organisation which generate wealth

    through the provision of services or the production of goods. Consequently,

    just as machinery and buildings need to be protected if they are to work

    properly, time and care must be taken if an organisation is to secure andretain the human resources that it requires. It is the responsibility of the

    Human Resource Department to devise and implement the organisations

    policies and strategies for managing its human resources in a way that will

    satisfy both the objectives of the organisation and the objectives of the

    human resources it employs.

    This report contains valuable & important information regarding HR

    practices which I observed and documented in the form of this report.

    Shaheen is one of the reputed pharmaceutical present in Pakistan. HR

    Department of Shaheen is not as per that of the other reputed

    pharmaceuticals. Several flaws in the HR Practices in Shaheen are identified

    and recommendations are made which are present at the end of this report.

    HR in Shaheen is responsible for several activities which can be enhanced to

    other areas. Finally it is found that Shaheen can best utilise its HR function

    and ripe the fruits of benefits both in short term and in long terms.

    Important Word: Workforce, Function, HRM, Production, Pharmaceuticals,

    V

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    OBJECTIVES OF STUDYING THE ORGANIZATION

    To study & review the function & structure of HR Department of

    Shaheen Pharmaceuticals.

    Analysis of Shaheen Pharmaceuticals mission, vision, strategy and

    goals and diverse functions of HR department.

    To look into the special assignments carried out by HR team

    like

    preparation of the generic job descriptions for all field positions

    and conducting TNA research program to detect gaps in KSQ

    (Knowledge, Skill and Personal Qualities) of employees.

    An exclusive probe into Training Needs Assessment strategy of HR

    Department ofShaheen Pharmaceuticals.

    To find out the Strength, Weaknesses, Opportunities and Threats

    (SWOT) ofShaheen Pharmaceuticals.

    Analysis of HR Department policies.

    To put suggestions & recommendations to further improve the

    activities of HR Department ofShaheen Pharmaceuticals.

    And finally to prepare an internship report in the light of observation I

    found and recommendation I forwarded to the management of Shaheen

    Pharmaceuticals.

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    2 INTRODUCTIION OF THE ORGANIZATION

    I have selected Shaheen Pharmaceuticals, for my internship study in this

    report. Mr. Syed Karim founded Shaheen Pharmaceuticals in March 2004 in

    Pakistan. Its Registered Marketing Office is situated at Peshawar while its main

    manufacturing plant is present 3 Km from Saidu Sharif, Swat.

    Shaheen Pharmaceuticals presents more than 50 products to the market.

    Nowadays, Shaheen Pharmaceutical is a leading ISO 9001:2000 certified firm in

    pharmaceutical industry of Pakistan with over 350 employees and covers all four

    provinces of Pakistan.

    OBJECTIVES AND FUNCTIONS

    The basic objective of the company is to produces high quality medicine at cheap

    price by using latest technology and highly technical staff. To achieve this goal the

    company adopted GLP, cGMP, GWP and ISO 9001:2000 rules and regulation and

    continuously improving their management and marketing tasks.

    There are various functional department present in Shaheen Pharmaceuticals and

    includes Production Department (consist of Manufacturing Department, Packing

    Department, Drying Section, Granulation & Mixing Section, Dispensing Areas,

    Tablet, Capsule, Dry Suspension & Liquid Sections), Quality Control Laboratories,

    Quality Assurance, R&D Departments, Warehouses (Finished, Inprocess, Quarantine

    & Rejection Areas), Finance Department, Marketing Department, Inventory Control

    Department.

    PRODUCTS OFFERED

    Shaheen Pharmaceuticals are offering different types of product to the market,

    which includes.

    Antibiotics

    Anti histamines

    Antifungal

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    Cardiovascular products

    Iron supplement products

    Foliate supplement products

    Anti-inflammatory , Analgesics and Antipyretic products

    H2 Receptor antagonist

    Hepatic protective products.

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    3 OVERVIEW OF THE ORGANIZATION

    Shaheen Pharmaceuticals is one the famous and reputed

    pharmaceuticals with more than 350 employees belong from different

    regions. Shaheen Pharmaceuticals has achieved the distinction of being the

    first organization in the SWAT Valley, which achieved ISO 9001:2000

    Quality Management Certification from one of the famous and recognized

    organization IIC which have a registered head office in Dubai, U.A.E. and

    approved from Joint Accreditation System of Australia-New Zealand (JAS-

    ANZ) in 2007. Shaheen in recent years initiated implementation of the HR

    reforms in a structured manner. Shaheen Pharmaceuticals has successfully

    launched its HR development process at the beginning which was aligned to

    the new organization knowledge, skill and competencies needs.

    Shaheen Pharmaceuticals have a traditional management style i.e.

    functional departments are present to perform various organization activities.

    A list of these functional departments is shown in organogram.

    LOCATIONS OF OFFICES

    Shaheen Pharmaceutical marketing office is present in Peshawar while

    Manufacturing Plant is present in Swat. The addresses of these offices are as below:

    Factory & Head office:

    Shaheen Pharmaceuticals3-Km, Murghzar Road , Saidu Sharif

    Swat , N.W.F.P

    Pakistan

    Marketing offices:

    Shaheen Pharmaceuticals

    3-Bashir Lane , Fakhr-E-Alam Road ,Peshawar , N.W.F.P

    Pakistan

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    3.1 ORGANIZATIONAL STRUCTURE

    Reproduces with the permission from the management of Shaheen Pharmaceuticals

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    4 STRUCTURE OF THE HUMAN RESOURCE DEPARTMENT

    Shaheen Pharmaceuticals follows bureaucratic style for their HR

    Department activities i.e. all major activities are concentrated to one position

    which means that only one person is holding major activities of HR

    Department. The HR department of Shaheen Pharmaceuticals are composed

    of 3 main segments. They are

    Employee services

    Employees Services

    Staffing &

    Compensation

    OD & Effectiveness

    Shaheen HR Core

    Competency

    Figure 1

    6

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    o Payroll Information

    o Leave and Medical Record

    o Final Settlements

    o Policies and Procedures

    o Employees Record and Recreation

    OD and Effectiveness

    o Training plan

    o Talent Management

    o Performance Management

    o Employees Retentation

    o Orientation & Employee Communication

    Staffing and Compensation

    o Staffing Plan and HR Budgeting

    o Management Trainee and Internship Program

    o Interviewing and Selection

    o Compensation, Benefits and Incentive

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    5 HUMAN RESOURCE PROCESS IN THE ORGANIZATION

    Shaheen is basically a functional organization with functional

    departments covering Finance, Production, R&D, Quality Control & Quality

    Assurance, and Marketing & Distribution. Having more than 20 Years

    experience in the field of Marketing & Distribution, Shaheen was formed by

    the founder & present CEO Dr. Syed Karim in 2004-05 as a fourth

    pharmaceutical in SWAT valley. Mr. Rashid which has an experience of 15

    years was appointed as consultant and head of HR Department. At the

    beginning the management of Shaheen uses traditional techniques such as

    interviews to select candidates for various jobs. Now the traditional way of

    appointing the employees are changed and some of modern techniques such

    as filling a short questionnaire along with interviews are used to select the

    candidates.

    Shaheen makes a great change in their working style and nowadays

    Shaheen is converting itself into more projectized style than traditional

    hierarchy style but the management of Shaheen still uses the old tradition of

    interviewing.

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    Top ManagementTop Management

    Functional Department1

    Functional Department1

    Functional Department 1Functional Department 1 Functional Department 1Functional Department 1

    Figure 2

    Project 2

    Project 2

    Project 3

    Project 3

    Project 1Project 1

    TopManagement

    Top

    Management

    Shaheen Traditional Style of Management

    Shaheen Modern Projectized Style of Management

    Figure 3

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    5.1 HUMAN RESOURCE PLANNING & FORCASTING

    Planning & Forecasting in the modern age is a matter of life & death

    for organizations of modern age. The same is true for pharmaceuticals

    industry. Each & every consecutive day new research product is developed,

    deployed for trails & testing. All these effort require skilful, trained and

    experienced workforce. It is for this reason organization plan and forecast for

    human resource so as to remain competitive.

    The management of Shaheen Pharmaceuticals also uses planning &

    forecasting procedures to cope with human resource requirement but these

    Project 2Project 2 Project 3Project 3

    Project 1Project 1

    Top

    Management

    Top

    Management

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    planning are usually of short term. As a result when the management of

    Shaheen open there Liquid Section, they faces a serious shortage of skillfull,

    trained & experienced workforce. Although the management strongly

    believes that employees are there supreme strength. But they are not

    adequately planning to anticipate the future need.

    5.1.1 HUMAN RESOURCE PLANNING PROCESS

    The HR Planning Process of Shaheen is shown in the following Figure. 10

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    Shaheen HR Planning are usually of short time in nature usually of 4 to 6

    months. Because of shortage of skill workers and because of the presence of

    pharmaceutical industries in the SWAT Valley, the competition is very high so theHR Department of Shaheen continuously looking for skill workers. For this purpose

    Shaheen scan internal environment to find out suitable employee and promote to fill

    the vacancy, if there are no such employees available, then HR Department scan

    external environment for skilled and experienced employees. As a result it is found

    the HR Department minimally interviewed 2 3 candidates daily, most of these

    interviewed candidates are called 3 to 4 months later of which almost 60 - 70% get

    jobs else where and only 30 - 40% available. Once the internal environment along

    with external environment is scanned, a draft forecast is prepared. There are no

    forms for this purpose Shaheen uses, instead Shaheen only colleted CVs and

    credentials for future need with HR comments written on it.

    Shaheen uses surveys to find out the present employees, their strength and

    experience and then find out the no of required employees in near future. This gives

    Shaheen Objectives & Strategies

    Forecasting

    Shaheen HR Plans

    Internal Environment

    Scanning

    External Environment

    Scanning

    Survey Of Employees

    Available

    Survey Of Employees

    Needed

    Figure 4

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    the organization the ability to cope with future need of employees. But the same is

    not true for high level employees such as Pharmacists, Chemists, Analysts, Officers

    & Managers. Shaheen does not have a valid planning for higher level officers. As a

    result there is always a shortage of skilled, technical & experienced top level officers

    as indicated by the following table.

    No. Ranks Available Required

    1 Managers 07 10

    2 Chemist 01 03

    3 Pharmacists 03 07

    4 Ware House Officers 02 035 Accounts Sections 03 05

    6 Godown Staff 03 05

    7 Inventory Control 02 06

    8 Production Officers 02 08

    9 Analysts 02 07

    Total Officers 25 54

    5.1.2 FORECASTING HUMAN RESOURCE PLANNING PROCESS

    Shaheen uses the information which was gathered from external

    environmental scanning and assessment of internal strengths and weaknesses

    is used to forecast HR supply and demand in light of there objectives and

    strategies. Forecasting in Shaheen contains information from the past and

    present to identify expected future conditions. Because of the rapid changes

    in the political, economical & global changes, Shaheen mainly emphasize on

    short term forecasting usually of 4 to 6 months durations.

    Table 1

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    Despite the availability of vary sophisticated techniques, forecasting

    in Shaheen is still subjective judgment. The facts are some times evaluated

    and weighed by knowledgeable individuals, such as managers and HR

    experts, and some times not.

    5.1.3 METHODS OF FORECASTING HUMAN RESOURCE NEEDS

    HR at Shaheen uses 2 method when forecast the human resource need using

    judgmental methods and mathematical methods. Although Shaheen uses these two

    types of model, the management still do not know the model and the difference

    between them.

    In Judgmental Techniques, Shaheen uses Estimates which are both top-down

    and bottom-up, but mainly the HR & Management teams combinely interviewed the

    top level employees who are in a position to know that How many people will they

    need next year to cop with employees shortage and to increase productivity. After

    obtaining responses, the HR prepare forecast sheet and submit it to chief executive

    for approval.

    While In Mathematical methods, extensively used for lower level worker,

    Shaheen uses Productivity ratios which calculate the average number of units

    produced per employee. These averages are then applied to forecasts to determine

    the number of employees needed. For example when Shaheen launches new product

    (Preston Tablets, Normidol Suspension & Olox Tablets in April 2009) the

    Shaheen Forecasting Techniques

    Judgmental Techniques Mathematical

    Figure5

    Estimates Productivity Ratios

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    management decide to hire new employees to increase the production level from

    8500 packs with 35 packing staff with a ratio of 243 to 15000 packs with 62 packing

    staff per day. To reach this objective Shaheen hire fresh 27 packing section

    employees through referral, interview and other methods.

    5.2 EMPLOYEES RECRUITMENT & SELECTION

    Figure 6

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    Once the forecast is developed and approved from the top management, the

    HR department of Shaheen start Recruitment & Selection process to fill the

    vacancies.

    Like all good plans, HR Manager of Shaheen builds employment plans onpremises. Basic assumptions for employment requirement by forecasting contain

    three important things:

    The supply of inside candidates;

    Personnel needs;

    The supply of outside candidates according to their company requirements.

    Internal

    Sources

    External

    Recruitment

    Sources of

    Recruitment

    Figure 7

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    By the utilization of their resources, firstly it is checked that either there is any job

    placement or company is expending their business so that new jobs are open for new

    candidates. These issues are tackled by the HR Manger. If staff is required then

    company tries to find them inside the company by upgrading their employees if it not

    possible then new jobs are created and fill by the outside market.

    The overall aims of the recruitment and selection process in Shaheen are to obtain, at

    minimum cost, the number and quality of employees required to satisfy the needs of

    staff requirement. The three stages of recruitment and selection in Shaheen are:

    Defining requirements: Preparing job descriptions and

    specifications; deciding terms and conditions of employment;

    Attracting candidates: Reviewing and evaluating alternative sources

    of applicants, inside and outside the company, advertising;

    Selecting candidates: Sifting applications, interviewing, testing,

    assessing candidates, offering employment, obtaining references;

    preparing contracts of employment.

    Stages of Recruitment

    Defining Requirements Attracting Candidates Selecting Candidates

    Figure 8

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    5.2.1 SOURCES OF CANDIDATES

    There are various source available for the recruitment of potential candidates,

    which are broadly divided in two categories.

    Internal Sources

    External Sources

    5.2.1.1 INTERNAL SOURCES

    First choice which Shaheen mostly utilize is internal source. When some new

    post is created or some post is vacant due to termination, resigning and promotion ofemployee, The HR department scan internal organizational environment to locate the

    potential candidates, as a result Quality Assurance Officer was promoted to the post

    of Inventory Control Manager, Production Manager were promoted to Management

    Representative of ISO Program, and Quality Control Incharge were promoted to

    Quality Control Manager.

    When some post is available, then HR Department notifies the interested candidates

    about the job opening and the candidates submit their CVs along with the written

    permission from their respective managers for the new post. These informations are

    then forwarded to top management and after there approval a formal notification is

    sent to interested candidates for interview. After interview , job is offered to

    successful candidates.

    Sources of Candidates

    Internal Sources External Sources

    Figure 9

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    5.2.1.2 EXTERNAL SOURCES

    If there are no people available within the organization the other sources of

    candidates, are used for recruitment such as internal or external referral &

    advertising etc.

    In external sources, the HR department uses internal and external referrals i.e.

    when job is posted then existing employees recommend some employees for the job

    or Managers of other pharmaceuticals recommend some candidates for the job. HR

    gives first priority to internal referral and then external one. if the HR Department

    still not find out the potential candidate, then Shaheen advertise the job opening in

    local news paper.

    Almost more than 70% of employees both workers, technical staff and

    managers are appointed through external or internal referrals.

    Initially every officer rank employees are appointed for a probation period of

    3 to 6 months as trainee. After successful completion of training a permanent job is

    offered to the trainee.

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    5.3 TRAINING & DEVELOPMENT

    Training is one of the most important tool any organization using to

    cope with the rapid change in technology and way of doing business. HRdepartment of Shaheen is responsible for the training and Development of

    existing as well as new coming employees.

    The difference between the training of new and existing employees

    are orientation and Shaheen culture.

    When a new employee is selected, an orientation of the new

    employees is conducted. Production Manager is responsible for the

    orientation of new employees. Orientation is basically a one to two hour

    activity in which the new employees are informed about the organizational

    structure, term & conditions of employment, the duties of incumbent, the

    ethical & behavioural requirement for the new employee and the so. This

    activity is only design for the officers and managers. Workers & employees

    of lower level are exempted from orientation. As a result most problems are

    observed at this level during day-to-day transaction.

    New or Existing employees are trained in HR Department via three

    methods.

    Employees Handbook

    Training by concerned department Manager.

    Training to visit to other pharmaceuticals.

    The period of training is not specified, some times it covered in a

    week some times it is extended upto 6 months.

    5.3.1 TRAINING NEED ASSESSMENT

    There is no document for training need assessment in HR department,however a document is found in ISO Master File QMS/02/001 along with several

    forms.

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    6.2.2 TRAINING, AWARENESS AND COMPETENCY

    A planning process is being implemented which ensures the proper training, awareness and competencedevelopment of people. This carried out while taking into account the organization processes, customer needsand expectations, the stages of development of people and the culture of the organization. The objective is toprovide people with knowledge and skill, which, together with experience, improve their competence and

    capabilities. Organization has established and maintains a procedure to ensure proper capabilities ofpersonnel working. This includes:

    Identification of competency needs for personnel performing activities affecting quality

    Providing training or take other actions to address identified needs.

    Evaluating effectiveness of the training provided

    Ensuring that employees are aware of the relevance and importance of their activities and how theycontribute to the achievement of the quality objectives

    Maintaining appropriate records of education, experience, training and qualificationReproduced with permission from the HR Manager of Shaheen Pharmaceuticals

    Training need in Shaheen is determined based on error or mistakes

    frequently made by any employees. However some forms of training needassessment were found in Quality Control Department. The form QCD uses

    contains information divided in to two major categories. They are

    Performance Analysis . (What tasks the analyst is currently

    performing? how can the current performance be improved? Is training

    the best method?)

    Job & Task Analysis. (What is the best way to do analysis? How can

    analysis process are broken down into small steps?)

    The QCD uses this form to gather information about the training need

    and to find out the suitable, affordable and effective way of training.

    5.3.2 EMPLOYEES DEVELOPMENT

    Because of lack of training need information, the only available option for the

    management of Shaheen is to wait till some problem appears. If this happen the

    management in the light of intensity of incident decided whether to train the

    employees or terminate them. If the decision regarding training is made then the

    immediate supervisor are asked to help the employee and make up the deficiency in

    the skill, knowledge and behaviour of the employee. This may be useful exercise but

    the company already suffered the loss.

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    In Quality Control Area, in the light of the form already prepared for training

    need assessment, the Chemist & Analysts are informed about their training schedule.

    These training sessions are conducted with the help of HR. Mostly the training mode

    are lecturing and participation exercise in which the trainees are asked to perform

    some activities. The all activities are recorded. As a result the turnover of employees

    in Quality Control is much lower than any other areas of the organization.

    HR of Shaheen also uses another method to train some employees i.e. by

    sending them to other pharmaceuticals to work for some time and then come back to

    their original position.

    Although some documents regarding training activities are found in ISO

    documentation, it was found that these forms are never used.

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    5.4 PERFORMANCE MANAGEMENT

    Employees job performance is an important issue for all employers. A

    performance management system consists of the processes used to identify,

    encourage, measure, evaluate, improve, and reward employee performance at work.

    Shaheen encourage their employees to achieve high level of excellence i.e. in

    Quantity of output

    Quality of output

    Timeliness of output

    Presence at work

    Cooperativeness

    These excellences are appreciated by the management at their monthly

    meeting with their employees and in the form of shields and awards. However all

    these activities are qualitative in nature. The activities of employees are recorded on

    the basis of observation made by the management officials from time to time. There

    is no maintenance of performance log. However critical incidents are recorded on

    rough pages for the future need.

    Figure 10

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    5.4.1 PERFORMANCE STANDARD & EXPECTATION

    Although Shaheen is a well reputed pharmaceutical organization, what

    target the employees must achieve is totally the matter of perception.

    Different standards are set for different employees. i.e. if two employees

    which perform same task in which one are highly experience and skilled and

    other have relative lower experience than the management expect a high

    quantified target achievement for the experienced one than from other.

    It is because of this reason, an atmosphere of conflict found in some

    section of Shaheen Pharmaceuticals. Management still not do sufficient

    planning to overcome these differences in targets and for the smoothing of

    organizational environment.

    The production department are usually engage in performance

    standard setting and reviews of activities to find out that these standards are

    met during normal course of operation. However if the standard are not met

    there are no mechanism how to remove inefficiency. Thus some one can say

    that performance standards are not a matter of seriousness in Shaheen. It was

    also found that some employees are also reluctant to these standards because

    no reward are attach to these standards. During my internship, several times

    the product staff achieves the target but they are not appreciated well.

    5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN

    Performance reports are the responsibility of all managers of the concern

    department. However these reports must be submitted to HR Department. A major

    drawback is that these report are not considered when pay raise is recommended by

    the manager of various department, as a result every employee get 10% annual

    increase in their pay regardless of their performance. This creates a lack of

    seriousness about the performance report preparation. Every department uses their

    own performance sheet. A typical performance report of Shaheen contains

    information as

    Name of employee

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    Designation of Employee

    Name of performance evaluator

    Department

    Date & Time

    Performance Standard (Arranged according to their priority)

    Remarks

    Signature of Supervisor

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    5.5 EMPLOYESS COMPENSATION & BENEFITS

    Shaheen Pharmaceuticals currently highly compensating there

    employees with respect to other industries present in Swat valley, however

    among the lowest compensation payable organization in the industry in

    Pakistan. Because of very low number of pharmaceuticals in Swat valley and

    absence of many taxes in Swat valley, Shaheen is one of the most profitable

    pharmaceutical in Pakistan, but these benefits are not transferred to their

    employees as a result the employees turnover is very high.

    Shaheen have a different pay structure for different level of employees

    and also employees of same level. i.e. Head of two departments are paid two

    different type of compensation.

    HR department is responsible for pay and pay related issues. It was

    also found that salary determination in Shaheen is a matter of bargaining. i.e.

    Shaheen pay 5500 PKR to an analyst while at the same time pay 15000 to

    other analyst working in a same post.

    Shaheen creates 2 categories for their employees. Exempt & Non-

    Exempt. Shaheen pay overtime to its non-exempt employees who work in

    excess of 8 hour and are one & half times there base pay. Almost all officers,

    managers, directors & executives are exempt from overtime allowance.

    There is no shift premium and night allowance for workers. The pay structure

    changes in Shaheen with that of based on seniority and not on performance.

    Although Shaheen is considered as one of the most profitable

    organization in pharmaceutical sector, it does not distribute some portion of

    EmployeesCategories

    Exempt Employees

    Non-Exempt

    Employees

    Figure 11

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    its profit among their employees. There is also no concept of variable pay in

    Shaheen.

    Lack of equality in the pay structure is thus a major disadvantage of

    Shaheen pay system.

    5.5.1 TYPES OF COMPENSATION & BENEFITS

    There are only one type of pay structure is available for the lower level

    employees. i.e. base pay. No other direct & indirect pay & benefits are provided to

    the employees. For the lower level employees Shaheen is giving time base pay i.e.

    every employee have to work for at least 8 hours a day after which he has subject to

    receive his pay at the end of month. No portion of the pay is directly or indirectly

    associated with the pay. As a result motivations of the employees are low.

    The composition of salary of lower level employees consist of :

    Basic Salary

    Overtime

    Indexation allowance (For workers having salary less than 2500 PKR)

    Attendance allowance (For workers having salary less than 2500 PKR

    and equal to 300 PKR)

    Cost of Living Allowance

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    BasicSalary

    Cost of

    Living

    Allowance Overtime

    Attendance

    Allowance

    IndexationAllowance

    Compositio

    n of Salary

    Figure 12

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    Shaheen pay a higher wage to his high level employees. The

    composition of the salary given to these employees consists of:

    Gross Salary

    Basic Salary

    House Rent

    Transportation Allowance ( usually between 300 to 500 PKR)

    Cost of Living Allowance

    Special Allowances

    Vocational Pay

    Deductions

    Loan Instalments

    Provident Fund

    Employees Old Age Benefit Institution.. E.O.B.I.

    Benefits

    The following benefits are being paid.

    EOBI --------------------------------- 5 % of wages

    Advance against salary------------- up to one third of salary (For all

    employees)

    Medical allowance ----------------- 4% of Salary (Only for Managers)

    Accommodation

    Only for those employees living outside Swat Valley.

    Loans

    The employee is given loans as per the loan policy mentioned in the Service

    Rules. The employees submit their application for loan approval to HR department

    after the approval of the Managing Director the loan is granted to the applicant.

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    5.6 ORGANIZATIONAL CAREER MANAGEMENT

    Shaheen Pharmaceuticals have one of the best career management system.

    The company consistently monitors its employees and as far as the betterment of

    their career is concern, the company has a proper strategic plan through which it

    increases the skill level of its employees. The company offers workshops, seminars,

    visit of key employees to other pharmaceutical industries & training courses which

    focus on injecting skills and professionalism into employees. These courses held in

    the organization or outside organization as per the course requirements. Regardless

    of the location of these training programs, the company pays all the expenses. The

    only focus of these programs are to improve the skills of their employees so that not

    only company can get maximum out of them but also employees can enrich their

    nature of job and life standard as well.

    Along with these training programs, the company makes their employees

    fully aware of their job requirements by mean of job descriptions so that they can

    develop a clear picture about at what are necessary requirement of their job and want

    are not. Indirectly the promotions, transfer to other department also plays a key role

    in employees job satisfaction.

    Shaheen also have a career planning center and the interested employees can

    seek help anytime between 8:00 AM to 4:00 PM from Monday to Friday. This center

    help employees to get updated information about their job, current trend in the job an

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    employee performing, required knowledge to enhance the productivity of employees.

    If an employee wants to change their job position, the career planning center helps

    the employees to do so. If any employees want to join any outside institution for

    further education, Shaheen Pharmaceuticals allow them. As a result some of Shaheen

    Pharmaceuticals employees are the students of various educational institutions e.g.

    Malakand University, Udhiana Medical Institute, Abbott College and Virtual

    University. Educational Policy of Shaheen Pharmaceuticals is flexible while that of

    its competitors present in Swat region is tough. Thus as far as the career

    development is concern, the HR Department of Shaheen is fully aware of this issue.

    5.6.1 EMPLOYEES JOB CHANGES

    Employees job changes in Shaheen Pharmaceuticals are a matter of

    routine task. When any job is lying vacant or some new post is created

    because of expansion or addition of new department, Shaheen first priority is

    to select employees from the current pool. For this purpose Shaheen

    announce the vacancy internally and invite the current employees to submit

    their CVs along with required documents and then select the right candidate

    for the post. If right candidate are not available to fill out the vacancy then

    Shaheen search for candidates who have the required competency and are

    willingly to fill the post but not have proper knowledge and/or skill required

    for the post, then Shaheen arrange an up gradation program which best suit

    the employee requirement for the new post. As a result the employees

    response for the new position is always higher than expected. Normally

    every employee changes their job every 3 to 4 years. As a result of these

    changes, QA Officer changes their job to Inventory Control Manager,

    Production Manager changes his job to Plant Manager and Raw Material

    Store Incharge promoted to Warehouse Incharge.

    Shaheen also arrange outside assistance and training program for their

    employees. As a result some of employees are send to various organization

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    for training upto 6 months and then returned back to assume the new

    position.

    Employees job changes within organization give advantage to the company

    that employees at key position are loyal to the company.

    5.7 JOB CHANGES WITHIN ORGANIZATION

    Job changes in Shaheen Pharmaceutical are managed by HR

    Department. When there is new post created in the company or some post

    became vacant because of layoff, dismissal, promotion or demotion etc,

    Shaheen first announce the post through their display board, memos to

    various managers through memos and inter-communication forms. Interested

    employees are informed to submit their CVs along with required documentsand with NOC from the head of their department. After receiving such

    documents, the HR Manager verify the information collected and match the

    current post requirement with that of competencies and capabilities of the

    employees. HR Department conducts a short interview with that of interested

    employees. These interviews are mostly conduct in HR Manager Office

    usually after 4:00 PM. A series of questions are ask from the employees such

    as

    Why he apply for the job?

    What is the deficiency the employees feel in their current job?

    How he manage the new job?

    What the employee expects from the new job? etc.

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    In the light of interview conducted and the recommendation and NOC

    of the current head of employee department makes an initial recommendation

    to higher management (Chief Executive, General Manager). After approval

    from the top management the employee, previous and new manager of the

    employee are informed through intercommunication form and a new Job

    Description Form were granted to the employee. It was observed during my

    stay that new appointment letter were not given to the employees and it was

    assumed that the terms & Condition of the employment was same as before.

    The employees know his salary rise only when he receives his pay cheque.

    5.7.1 PROMOTIONS

    In case of promotion, the head of department inform the HR Manager

    through intercommunication form about the performance of an employee.

    After receiving such information, the HR department recommend the

    employee for possible promotion within department to top management. The

    top management decide in the light of recommendation from the head of

    department & HR department to promote or not the employee. The decisions

    of the top management were mostly verbally, and the HR department in the

    view of decision makes necessary documentation. Promotion policy of

    Shaheen Pharmaceutical is not clear. The employees do not know when they

    were be promoted. It a matter of top management decision. As a result of

    this, some employee promoted very early like after 6 to 7 month of

    employment while some are still waiting for promotion after 5 years of

    employment. Because of no policy about the promotion mostly employees

    are demotivated and thinks what ever they do they are still under the dark

    side of the candle. Productivity records also show that the outputs of senior

    are lower than that of new comers and that of who promoted earlier.

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    QC Officer was promoted to Senior QC Officer. FGS Assistant was

    promoted to FGS Incharge and Dispensing Pharmacist was promoted to

    Dispensing Area Incharge.

    5.7.2 TRANSFER

    Transfer policy of Shaheen is clear and also mention in employee hand book,

    job description & in appointment letter. Shaheen transfer policy stated that

    when ever services of an employee are required in some other department

    and/or any section within the f irm, the employee must assume the

    responsibility without any hesitation and any reasons. The appointment letter

    contain these phrase

    The employee should assume any responsibility assigned by concerned

    manager or any authorized person designated by top management. He

    should also assume any task wholly or partially either permanently or

    temporarily as per HR Department instruction without any hesitation.

    As a result of this job transfer within department is a matter of daily activity.

    Coating Operator of coating section work with packing department and

    blister section staff are transfer to syrup section. Thus we can say transfer is

    a routine activity in Shaheens l ife. Some transfers in Shaheen are

    temporarily one while some are permanent in nature. Top management

    decided whom to promote permanently and whom not. Employee some times

    also takes part in transfer process and willingly apply for transfer because

    the transfer gives them fresh life in the form of new knowledge and skill.

    This type of transfer is voluntarily one. While in involuntarily one top

    management decided which one is t ransfer and which one not . The

    employees may apply to review the management decision of involuntarily

    transfer but the final decision is in the hand of top management.

    5.7.3 DEMOTIONS

    Currently there is no demotion occur in Shaheen Pharmaceuticals to date.

    ISO master documents show that when the employees does not show

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    satisfactory performance within 1 year period (in which the employee is

    unable the minimum acceptable level of productivity for last 3 months

    continuously) and does not improve his performance after the recommended

    training from the concerned department manager, makes continuously same

    mistakes, does not oblige the order of department manager, supervisor and

    any other senior and after informally verbal, formal written and a formal

    show cause notice, does not satisfy the concern officials in show cause case

    hearings, theft, damage to company property, engage in any other activity

    other that assigned one and the same and leaking company critical or non

    critical information to outsiders include relatives, friend and competitors of

    the firm are subject to demotion, penalty equivalent to damage, withholding

    salary, and termination from the employment with or without notice. Shaheen

    is lucky in the sense that during the 5 years of his journey, no employees yet

    receive demotion from his current job.

    5.7.4 SEPERATION

    One of the worst decisions an employer or employee made is the decision of

    separation from the firm. The employee leaves the job because of various reasons

    such as

    Finding better job

    Less attractive current job

    No career growth in current job and/or current organization

    Unexpected new complex & lengthy assignment in the job

    Bad employment condition in current job

    Unacceptable supervisors, managers behaviors.

    Inequality in pay

    While the employer remove an employee also have one of several reasons such as

    Continuous low performance of an employee

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    Cutting unnecessary overheads.

    Increase profit by reducing cost through cutting employees strength.

    Hire low wage workers by removing high paid workers.

    Layoff union workers because of strikes, lockout etc

    Due to inflationary or recession conditions

    Layoff old workers because of less or no knowledge of advance

    technology.

    Employee who leak out critical firm information to outsiders.

    Employees who damage company property.

    Continuous absence from the job

    Unfortunately in Shaheen this decision were made frequently in the last 2-3

    years. About 2/3 of Shaheen employees have joined Shaheen within 2-3 years only

    one third are employees which are from the start with the company.

    Of the 2/3, more than 50% of employees were terminated one of several

    reasons such as

    Unacceptable behavior with that of supervisor and/or manager

    Damage to Firms property

    Does not obey Management orders

    Smoking and engage in activities prohibited by the management

    Leak information to outsiders.

    Too many unauthorized leaves

    5.7.4.1 LAYOFF

    Layoffs occur when employees are put on unpaid leaves of absence for time

    period longer than approved one.

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    Shaheen have a clear policy in this regard. A complete section on leaves is

    present in the employment manual. For employment period of more than 4 year 20

    vocational leaves are approved along with 12 sick leaves and 10 other leave, a total

    of 42 days. These leaves are available to all employees but 20 vocational leaves are

    earned only after completed 4 years of service in the firm. While remaining leaves

    can be availed any time. All these informations are present in Section 10 page 28 of

    employment handbook.

    Shaheen have a strict policy on leaves. If an employee makes extra leaves

    without prior approval, a written show cause is issued to him within 7 days. If the

    employee does not provide reasonable reason to HR department, then he has a

    danger of layoff. Only 7 times this option is used.

    Employees can collect their vocational leaves upto 50 and then if he wants to

    avail these leaves he can. If he does not want to avail the leaves then he may apply

    for pay equivalent to normal rate.

    If employee does not respond to the show cause within 3 days of receiving,

    another show cause is issued and if he still not respond within 3 days of receiving, a

    layoff letter is send to him and thus in this way the employee is terminated.

    Employees can also apply for unpaid leave in case of emergency such as

    medical leave, maternity leave, educational leave etc. but prior permission from HR

    department is necessary.

    5.7.4.2 TERMINATION

    Unfortunately termination decision in Shaheen was made frequently in the

    last 2-3 years. About 2/3 of Shaheen employees have joined Shaheen within 2-3

    years only one third are employees which are from the start with the company.

    Of the 2/3, more than 50% of employees were terminated one of several reasons such

    as

    Unacceptable behavior

    Damage to Firms property

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    Does not obey Management orders

    Smoking and engage in activities prohibited by the management

    Leak information to outsiders.

    There is various rank employees terminated due to above causes. Senior

    pharmacists, production supervisors, packing hall Incharge, manufacturing area staff

    and warehouse personals are the frequent victim of this decision. As a result the

    motivational level of these employees also found lower than other areas employees

    least affected by termination decision. Although the termination remove problem

    employee, it was found that these employees can be made loyal with little effort and

    some training.

    5.7.4.3 RESIGNATION

    Resignation in Shaheen is another big reason for brain drainage of valuable

    talent. Shaheen spend valuable and its precious time to reward a good experience but

    because of the weakness of the system, when the employee get some knowledge he

    resign from his post and join new firm. The major causes behind this situation were

    found as under.

    Less opportunity for career growth due to less room for innovation

    and creativity because of standardized rules and procedures.

    Lower salary

    Unsatisfactory work conditions.

    Unacceptable term and conditions.

    Tight supervisory control

    Lack of trust

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    No benefits for most of employees.

    Shaheen does not so far make some sound homework to reduce this trend. As

    a result this situation persists. Because of beurucratic style of management,

    opportunities for others becomes lower & lower down the hierarchy.

    The post leave after resignation was not filled immediately. Usually 3 to 4

    months are required to fill the posts. It was also observed that resignation letter was

    given by employees to the management immediately without waiting period of 1

    month. Because there is no benefit for employees thus resignation was given

    immediately. Another trend was observed that mostly resignation application was

    given 2nd date of new month when employee get there previous month complete

    salary thus the management have nothing to hold and forces the employee not toresign. Resignation is one of the worst ways which not only effect some department

    badly but some times the firm faces dangerous situation.

    5.7.4.4 RETIREMENT

    Shaheen is a relatively new firm and no one individual till date are retired.

    But employment handbook (section 21 page 68) contains information about

    retirement. Shaheen policy is that any one who will complete 35 years of services are

    eligible to apply for retirement. The retirement policy will be made later. This matter

    is still under consideration of top management. Whoever it was found that some

    benefits such as provident fund, gratuity and E.O.B.I benefits will be provided to

    retired employees. It was also found that management decided to give job to one of

    the relative of retired employee. However no formal authorize information on this

    matter is not approved yet.

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    6 LABOUR MANAGEMENT RELATIONS

    Labour-Management relation in Shaheen is not an ideal one. The employees

    are just satisfied the management style. Thus we can say that the organization keeps

    normal relations with its employees. There are two-way communications methods in

    Shaheen. Several features of Labor-Management relations are

    Every employee has the right to come to meet his immediate supervisor

    for his problem. If his supervisor cannot satisfy the employee, then

    employee can go to HR department for this problem.

    There are placed the Complaint Box at different location in the

    organization that are only opened by the HR Manager randomly.

    Some Department held meeting on monthly basis in which head of Dept

    and first line supervisor meet to employee and discuss about the previous

    performance of Dept & individual performance. At the end the decisions

    are made to enhance the individual performance by facilitating the

    employees.

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    The company treats all employees with respect and dignity, no employee

    is subjected to any gesture, language and physical contact that are

    sexually coercive, threatening, abusive or exploitative.

    Discipline Procedure:

    Warning are addressed to the employees verbally and in written through

    their immediate supervisor. The warning referred to the contraventions

    committed by the employee and served to remind the employees the

    he/she abide by the company rules and regulations in performing his/her

    work, and that this contravention should not be repeated in future.

    A written letter addresses to the employee describing the contravention

    committed. The employee is also notified that a higher penalty may be

    inflicted on him in the contravention is repeated in future. The warning

    letter is then registered in the employees personal file. Issuance of

    written warning can be recommended by the respective supervisor and

    Head of Department. It will be issued by the HR department after

    approval of Chief Executive Officer.

    Deduction from the salary will be an amount of employee salary

    depending on the type offence and decision taken accordingly.

    The employee may be suspended from performing his or her duties for a

    period of time as conveyed in written.

    Unauthorized absence of more then two times in Six month can result in

    termination of employment.

    An employee who is absent from the job with out satisfactory explanation

    and necessary proof is considered to be an unauthorized unpaid absence.

    Discrimination, intimidation and harassment based on sex, race, religion,

    age, colour, disability, sexual orientation and cultural background is

    prohibited at the workplace.

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    7 SWOT ANALYSIS (STRENGTH, WEAKNESS, OPPORTUNITIES &

    THREATS FOCUSING ON THE HRM PROCESS

    IN THE ORGANIZATION

    STRENGTH

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    i. One of the largest pharmaceutical organization.

    ii. Higher wage payer employer in the region.

    iii. Frequent availability of lower wage employees.

    iv. More loyal senior employees.

    v. Qualified staff in HR Department.

    vi. Reduces cost by merging some departments, especially merger of

    Administration Department into HR Department.

    vii. Use of HR Forecasting techniques

    viii. Perform Job Analysis frequently.

    ix. Higher motivational level of key employees due to Job rotation & Career

    Management programs.

    x. Use of different sources for recruiting & selection of right candidates.

    WEAKNESS 41

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    i. Lower wage level as compared to other pharmaceutical present at other

    locations.

    ii. Availability of less skilled and less experienced workers.

    iii. High employees turnover ratio.

    iv. Serious shortage of necessary full time staff in HR Department.

    v. Dual responsibility of various managers due to merger of various

    departments.

    vi. Short term HR Forecasting usually 3 to 6 months duration.

    vii. HR Forecasting are mostly conducted for lower level workers.

    viii. Some Job descriptions were found out-of-date.

    ix. Job Description are only covering offers and managerial ranking employees.

    x. Career growth opportunities are only available to selected employees.

    xi. No referral reward system for employees who recommend competent

    employees.

    xii. Out-of-dated interviewing techniques.

    OPPORTUNITIES

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    ii. Shaheen can hire best employees for their HR Department.

    iii. Shaheen can expand their HR Department.

    iv. Use the skill & competence of HR Manager Head to improve HR department

    performance by giving him full and unconditional authority.

    v. Number of graduates in the region is increasing, Shaheen may hire these

    graduate to increase the performance of HR System.

    THREATS

    i. Imposition of new rules and regulation by the government.

    ii. Entrance of new companies in pharmaceutical industry.

    iii. Switching of employees from Shaheen to other companies who pay more than

    that offered by Shaheen.

    iv. Serious shortage of skilled and qualified workers in near future.

    8 MAIN WEAKNESS OF THE ORGANIZATION

    During my stay, I have found following main weaknesses which I discussed with

    HR Manager.

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    a. Serious shortage of employees almost in all departments and sections.

    b. Shaheen purchases latest machines and equipments but till date did not find

    technical and skilled employees to start few of those machines.

    c. In Shaheen, interviews are conducted on daily basis for lower level

    employees but only a small percentage of these were offered the job.

    d. There are no formal training programs for new incumbent.

    e. Strict beurucratic style of management.

    f. High turnover ratio than competitors.

    g. Short term planning for human resource.

    h. Lack of formal forms & formats specially interview evaluation form etc.

    i. Forecasting of human resource need is based on subjective judgment.

    j. No referral bonus for employees who recommended competent & skilled

    candidates for a job.

    k. Orientation & training period of new incumbent are very short and new

    employee has to learn every thing from his mistakes.

    l. No training need assessment form developed yet.

    m. Different standard are set for different employees working same type jobs.

    n. Performance reports have no effect on annual salary increase.

    o. Compensation & Benefits are lower in Shaheen as compared to other national

    & multinational pharmaceutical organizations.

    p. Different pay structure for different employees working same job.

    q. Promotion policy of Shaheen is not clear.

    9 RECOMMENDATION

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    a. The HR Department must intensively look for new candidates to fill-up the

    shortage of employees. For this purpose Shaheen may use internet, print

    medias such as newspapers, brochures and may use referrals.

    b. Shaheen Pharmaceutical acquired latest equipments and machineries butsome of them are still not at work because of lack of technicians and

    specialists. It is thus recommended that before any new machinery is

    purchased, a contract must be signed with the manufacturer of the machinery

    or with the suppliers that they must train some staff of Shaheen to operate the

    machine within reasonable time.

    c. The HR department may dedicate a day in a week or in a month for interview

    thus eliminates the unnecessary interviews conducted daily and thus can save

    precious time of HR Staff.

    d. A complete training program must be designed for each and every

    incumbent, which may cover not only the details of the job for which the

    incumbent is hired but also about the company, its culture, environment, HR

    Policies and the like.

    e. Strict beurucratic style of management must be converted to more flexible

    type i.e. authority and responsibilities must be delegated to lower level aswell. This action not only increases motivational level of employees but also

    increases the loyalty and sense of belongness of employees.

    f. HR Department must also forecast for long-term Human Resource need.

    g. HR Department must design formal form for applicant interview, salary

    surveys, Training need assessment etc.

    h. Human resource needs in Shaheen are mostly determined using judgmental

    technique. Although judgmental techniques are one of most important ones,

    the HR Department must train every Manager, Supervisor, Line Manager etc

    so that can use other method as well to enhance the reliability of their

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    i. It is also found that no referral bonus was given to employees who refer

    competent, skilled and knowledgeable candidate. The HR Department must

    convince the higher management to give such bonus which not only

    motivated the employees but the organization can in this way get competent,

    skilled and experienced worker which may participate in the success of the

    organization.

    j. Orientation & Training period of new incumbent is very short, and usually

    the incumbent learn from their mistakes, this is a costly practice. So it is

    recommended that new incumbent must be fully trained and after completion

    of training period, the training performance must be evaluated before giving

    regular job assignment to the employee.

    k. One main weakness found in Shaheen Pharmaceuticals is that there are

    different performance standard for employees working same job. This

    practiced must be immediately eliminated and same performance standard

    must be set for same job.

    l. Performance reports must be tightly linked with salary increase at the end of

    each year.

    m. As compared to other pharmaceutical organization present in Pakistan, thesalary level in Shaheen is much lower. As a result the employees turnover is

    very high. HR Department must conduct salary survey, comparison and other

    means to reduce the current salary gap and thus reduces the employees

    turnover.

    n. There must be same pay structure for same job i.e. equal pay for equal work.

    o. Shaheen HR Department must clearly communicate its promotion policy to

    all employees.

    10 CONCLUSION

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    HR is a very vast and important field in business. It is really important to

    have and maintain quality professionals to add value in any organizations. From the

    entire above project I have gained a lot of practical experience of the work. I saw

    how work is done practically in organizations. I saw practical application of my

    theoretical knowledge. It was a great learning experience, but I observed something

    which I feel not a good practice. Basic pay of line workers disappointed me the most.

    It was less than that approved by the government due to the fact that the organization

    is located in tax free region where government labour officer do not inspect any

    company. There are many things that are still in books and remain in books. I think,

    organizations, in the process of reducing costs and competing globally, should not

    forget basic ethics, which are the essence of a good organization.

    During my stay in Shaheen Pharmaceutical, I have analysed their existing

    human recourse system and seen that how they are applying the Recruitment &

    Selection process (from job analysis to selection of employees) and I have seen that

    company recruit all those persons who are eligible to his criteria whether they are

    internal or external. Once a pool of candidate has been completed the next stage is to

    select the best person for the job to achieve the organizational goal.

    Orientation and on the job training will be arranged after the selection of

    employees and the newly hired employees are posted on temporary job of 3 to 6

    months for their practices, and employees having satisfied performance will be

    permitted as permanent. But orientation and training are limited to some employees.

    The Management strongly believes the importance of their employees; however the

    benefits provided to them are also limited to few employees. The management

    believe employees as a supreme strength. Therefore they strive to attract, retain and

    develop the best talent but because of low salary and few benefits, the employees

    turnover ratio are quite very high. Special emphasis in this regard is given to training

    & development of the staff but so for this practice is conducted only to train selective

    employees. Shaheen not only train employees in-house but also send some

    employees for external training.

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    Currently the company does not have automated HRMS. If this system is

    installed, the company will received numerous benefits such as reduction in

    recruitment & selection costs, Increases HRD performance, easy & fast access to

    critical information such as employees personal record, performance log etc.

    It was also observed that layoff, termination, demotion and retirement polices

    are not clear as a result the moral of key employees were found at low level.

    Currently, the HR Manager is trying there best to develop new policy which

    are acceptable to both employer and to employees and thus it is expected that HR

    Department will reduces their deficiencies and enhances the satisfaction of their

    employees.

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    11 REFERENCES

    BOOKS

    1 Guerin Lisa & Delpo Amy (2003). Create Your Own Employee

    Handbook (1st ed.). California, USA: Nolo Press

    2 Tracey, William R. Tracey. (2004). The human resources glossary: the

    complete desk reference for HR executives, managers and practitioners

    (3rd ed.) New York, USA: ST. LUCIE PRESS (A CRC Press

    Company).

    3 Helms M. Marilyn. (2006). Encyclopaedia of Management (5th ed.).

    London, UK: Thomson & Gale Publishing Co.

    4 Prof. Krishan Murthi. (2008). A Handbook of Employees Relations andLabour Laws In India. (1st ed.). Mumbai, India: NAD International

    Press.

    5 Jones Pam. (2000). The Performance Management Pocket Book. (1st

    ed.). UK: Management Pocketbooks Ltd. E-mail: [email protected]

    Web: www.pocketbook.co.uk

    6 David A. Decenzo & Stephen P. Robbins (2004). Fundamentals Of

    Human Resource Management. (8th ed.)

    7 Wayne F. Casico (2000). Managing Human Resource (Productivity,

    Quality Of Work Life & Profits). (5th ed.). National Book Foundation.

    JOURNALS

    1 Dr. Adya Prasad Pandey (Dec. 2007). Labour Management Relations

    A Radical Deal For Industrial Peace. MPRA Paper No.6085 Retrieved

    May 2009, http://mpra.ub.uni-muenchen.de/6085

    MANUALS

    1 Manual of Human Resource, Chamber Practice, The Indian legal Service

    Provider. (1996). Manual developed for Ramakrishna Hospitality

    Services (Pvt.) Ltd.

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