HRM Policies and Procedures

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HUMAN RESOURCE PROCEDURES & POLICIES MANAUL OF FFC

Centre for Advanced Studies in Engineering Islamabad

Presented by:

Muhammad Zubair Sp-2015-Msc/EM/003Mohammad Umer Bashir Fa-2014-Msc/EM/013Muhammad Akhtar Fa-2014-Msc/EM/032

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AIM To prepare the HR Procedures and Policies Manual of FFC

To study existing HR procedures and policies manual in light of latest

development in filed of HRM

To highlight the area of improvement /discrepancies and to suggest

the changes to be made for process improvement and enhance

Human Resource Management

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SEQUENCE OF PRESENTATION

To prepare the HR Procedures and Policies Manual of FFC

To study existing HR procedures and policies manual in light of latest

development in filed of HRM

To highlight the area of improvement /discrepancies and to suggest the

changes to be made for process improvement and enhance Human Resource

Management

Incorporated in 1978 as a Joint Venture1

Commissioning of 2nd Manufacturing Unit in 19922

Fauji Fertilizer Bin Qasim Limited4

Manpower Training and Turnaround Services5

Fauji Fresh n Freeze, Askari bank limited, Multinational joint ventures in Sub Saharan African countries 6

FFC BRIEF OVERVIEW

3 Acquired ex -Pak Saudi Fertilizers Limited (PSFL) (NFC) in 2002

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VISION

To be a leading national enterprise with global aspirations

Effectively pursuing multiple growth opportunities

Maximizing returns to the stakeholders

Remaining socially and ethically responsible

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MISSION

To provide quality products in a safe, reliable and efficient manner

Maximizing returns to the shareholders through core business and diversification

Providing a dynamic and challenging environment for our employees

CCORE VALUES

Excellence

Consistency

Compassion

Fairness

Terms and

Condition Risk

Financial Risk

Project Organization Risk

Scope and Schedule

Risk

Human Behavior

Risk

HUMAN RESOURCE DIVISION AT FFC

+State of the art Production Facilities

+ Solid Financial Position

+Brand Preference

+ISO Certification

+ Clogged Market Share

+Non availability of R&D

+ Fixed Customer Base

+ Narrow Product Line

+ Less Potential for New Entrants

+ Industry’s Resistance to Recession

+ Horizontal as well as Vertical Diversification

+Gas Curtailment

+Deteriorating Local Currency

+Depleting Natural Gas Reserves

KET ASPECTS

SCOPE

Political

Economical

Social

Technological

HR STRATEGY

Farm Advisory Centers (FAC)

Sales expansion through geographical diversification

Synchronize business processes

Keeping resource utilization at an optimum level

VALUE CHAIN ANALYSIS

Plant Warehouse

Open Yard

Bulk Ware house

Chemical Warehouse

Packing Material

Transportation

Material handling

Packaging

Shipment

Information systems

Supply of Natural Gas Desulphurization

Reforming Methanation

Compression and Synthesis

Urea Reaction

Inbound

Logistics Outbound

Logistics

Operations

VALUE CHAIN ANALYSIS

Marketing Network

Audio/video

Communications

Information systems

Testing

Communications

Information systems

Cost advantage

Differentiation

Technology

Cost

differentiation

Marketing and

salesServices a

nd

Technology

Modification PhilosophyQUANTATIVE ANALYSIS

Sona Urea Production 2,408,000 tones0.1%

Dividend Per share Rs.15.35 1%

Market Capitalization 142.21 M4%

Profit after Tax 20,135 M 4%

Revenue 74.4810.2%

Retention 3.012%

Operation and Maintenance Division- Organization

Overall Strength

Mgmt: 264

Staff: 790

Trainee Engineers: 47

Trainee Staff: 161

UM IT

SH Safety

CMO

HR

Manager

Procurement

Manager

Planning

Manager

Maintenance

Manager

E & I

Manager

Production

Manager(Plant - I)

Production

Manager(Plant - II)

Engineering

Manager

Training

Manager

General Manager

Plant

Plant

Management

(GMP)

Administration

(Resident Mngr.)

Production

(Sr. Prod. Mngr.)

Technical

Services

(Sr.Tech.S.Mngr.)

Maintenance

(Sr. Maint. Mngr.)

Finance

(Fin. Mngr. Plant)

Allows some flexibility to buyer & seller in that it allows for deviation from

performance

Responsibility

Ceiling Price

Financial incentives

Flexibility

Cost above price ceiling is responsibility of the seller

established price beyond which buyer has no obligation to pay

Linking of financial incentivestied to achieving agreed upon metrics

RECOMMENDATIONS

1• Suitable for acquiring

commercial items, services fro which detailed specification is available

• establish fair and reasonable prices at the outset

2• Adequate price

competition

• Establishing the base level from which adjustment is made

• Contingencies that would otherwise be included in price can identified and covered separately.

3• Serious doubts

concerning stability of economic stability

• Willing to accept fixed price representing assumption of the risks involved.

RECOMMENDATIONS

Delivery ManagementRelationship Management

Contract Administration

Striking The Critical Balance

Delivery ManagementRelationship Management

Contract Administration

W

T

O

SStrength

Solid financial position

State of the art production facilities

The only DAP manufacturer in Pakistan

Weaknesses

Mature industry with clogged overall market share

Reliance on depleting natural resource

Dependency on costly logistics in the absence of proper railway netwrok

Fixed customer base

Narrow product line

Opportunities

Horizontal as well as vertical diversification

Increase in product covering Macro and Micro nutrients

Growing fertilizer demand in country

Absence of substitute products

Opportunity to export fertilizer

Brand Goodwill

Threats

Increasing trend of gas price and curtailmentDepleting natural gas reserves & gas curtailment

Fluctuation in international prices of DAP and Phosphoric AcidDomestic law and order situation

Declining international fertilizer pricesGeneral inflation and environmental threats

Recruitment

• An integral part of the staffing strategy .• Process of screening, and selecting qualified people

– workforce planning, – internal transfers, – job descriptions, – classification and evaluation, and – term of appointment.

Objectives• Recruiting the right employees, for the right

positions in an efficient and effective manner.• Advance planning of Staffing requirements• Managing the employment with the required skills. • New ideas and approaches• Ensuring a diverse workforce.

Recruitment Policy of FFC

• FFC created a website http://careers.ffc.com.pk/ad/Guidebook.pdf for – creating applicant’s profile and submission of the application. – E-Recruitment– both external and internal recruitment processes

http://careers.ffc.com.pk/ad/Guidebook.pdf

Recruitment Policy of FFC

• Recruitment activities– remain within the approved workforce plan. – for non-budgeted positions need special approval.

• To adopt fair and consistent methods of recruitment and selection.• Preference to hiring for equally qualified candidates

– Pakistani Nationals over non Pakistanis and – internal candidates over externals.

• HR Department – facilitator for the recruitment process – Responsible for issuing of all offer letters and employment contracts

• Hiring Authority– Responsible for Selection of candidates.

Sources of Recruitment

• Internal Sources– Retrenched Employees– Retired Employees– Dependent of deceased employees– Internal Job Postings– Promotions– Demotions– Moving across verticals

Sources of Recruitment

• External Sources– Placement Agencies and Consultants– Campus Recruitments– Off-campus Recruitments– Employees working in other organizations– Employment Agencies– Referrals– Walk-Ins

Issues of Recruitment• Qualified and experienced employees’ shortage in the

market.• Lack of loyalty of young talent to the organization.• Pressure to offer lucrative packages and • Huge Cost of recruitment and

Recruitment Strategy-Key Areas to Address

• Business Strategy• HR Strategy• Gap Analysis• External Market• Recruitment Processes

Hiring Procedure

• Take the written tests• Conduct the interview

Hiring of Management Employees

PurposeTo hire competent and most suitable to fill up the vacant position in management cadre

Scope Applicable to HR group Rawalpindi

Procedure

• Submission of Manpower requirement to HR group• Comments and confirmation from OD section• Soliciting management Approval• Advertisement in print media• Collecting Data for available candidates• Entertaining the NTS cleared candidates• Short listing of candidates• Preliminary interviews

Procedure

• Instructions to all concerned for hiring arrangements• Approval for call letters from Head HR.• Final short listing with approval of Head HR• Preparation of details of vacancies through OD section.• Conducting Interviews.• Preparation merit list for candidates• Preparing set of documents for final interview

Hiring of Non Management Employees

PurposeTo hire competent and most suitable to fill up the vacant position in non management cadre

Scope • Hiring of Non management employees of all categories• Decentralized policy• Responsibility of Every Group/Div./Deptt Responsibility• Head HR

Hiring of Non Management EmployeesProcedure• Receiving application through mail• Initiating case for hiring through Concerned Div and respective HR

Deptt.• Obtaining the approval of MD.• Formation of selection board• Advertisement• Short listing of employees• Call Letters

Training and Development of Employees• Company conducts on-the-job training(OJT) programs for its employees.

– Functional programs- for expertise in respective domain.– Talent Acceleration programs- improving soft skills

• Eligibility Criteria: voluntarily by self nomination or when nominated by the branch managers.

• Duration: Monthly or Quarterly or Weekly depending upon product and requirement.

• E-learning courses• Career progression programs• Leadership Development ladder

Training and Development of Employees

Two ways of Training• Internal Training

– Done by pool of experienced people• External Training is given

– By hiring the international consultancy firm– For two months normally.– By experienced persons of Denmark and China – On the job and Off the job training

Compensation & Benefits

• Bonus(yearly)• HRA• Free medication• Free pick & drop• Other Allowance(Food, mobile phone bills, etc.)

Performance Management

Purpose• Employees evaluation after six months. • Feedback from employees.• Record performance for rewards , annual increments and their

growthScope• Applicable to HR Group Head OfficeResponsibility• HR Group

Performance Measurement

Procedure • Annual Performance Appraisal Report(APAR) for each

employee • Assessed grades and marks after APAR• MD finalizes grades of management employees and • Head of HR finalizes grades of staff

Performance Measurement

• Target Achievement• Quality of work• Ethics used in target achievement• Customer satisfaction

MotivationFocus on the motivation of employees to do work by giving them • incentives, • bonuses, • pay incentives, • promotion, • Medical facility, • residential facility, • fair well, • annual dinners and much more.

Motivating Employees

• Motivational training programs• Incentives• Recognition to employees• Sponsored holidays for employees and their family• Helping them in converting a prospect into a sale.

LEAVE POLICY• Objective

– Providing positive, productive and safe working environment to its employees.

– Help employees to maintain a healthy work-life balance by providing for and regulating their absence from work for rest, recreation, other personal reasons, sickness and hospitalization etc.

LEAVE POLICY• General Considerations

– Leave quotas are based on a full calendar year i.e. from January 01 to December 31

– Leave unless specified otherwise shall be administered on working-day basis.

– All leave is processed/approved as specified in SAP Org structure (except for Special Leave).

– Any leave that extends to next year will not be debited from the employees next year quota and will be adjusted / regulated from the same year.


– While on leave the employee cannot engage himself in any other employment or business or profession.

– Any employee proceeding abroad during the approved leave period is required to inform his/ her respective Head of Org Unit about the destination, duration and contact address during his/ her stay abroad.

– Any unapproved absence is a serious infraction of company policy and should be reported to local HR within three working days from the date of absence.


– While on leave the employee cannot engage himself in any other employment or business or profession.

– Recalling an employee before completion of leave should be discouraged. However an employee can be recalled before completion of leave due to exigencies of service with the permission of respective functional head.

– Only Annual leaves are cashable at the time of separation from Company.

LEAVE POLICY• Leave Types

– Annual Leave– Casual leave– Sick leave– Compensatory leave– Maternity leave– Family Responsibility Leave– Family Illness Leave– Disability Leave– Study Leave– Special Leave

LEAVE POLICY• Annual Leave

– Annual Leave is essentially meant to provide paid time off to employees from daily work routine as per the yearly quotas.

– Annual leave for less than five working days is not permitted or adjustable except under special circumstances.

– No annual leave is permissible during the probation period except under compelling circumstances.

– Any unused quota of Annual Leave shall be carried forward for accumulation automatically. Ceiling for such an accumulation is 210 working days for Managers & above and 120 working days for Deputy Managers & below without any exception.

LEAVE POLICY• Annual Leave

– Any period of sickness during Annual Leave shall not be taken as ‘an absence on account of sickness’ but shall be counted towards the period of Annual Leave.

– An employee, who desires to avail annual leave for more number of days than his leave entitlement, will have to take special permission from his Group/Functional Head.

– Accumulated Annual Leave is cashable to employees upon separation from Company service.

– Advance annual leave beyond 15 days will be approved by the management on merit.

LEAVE POLICY• Casual Leave

– Casual Leave is essentially meant to provide paid time off for personal commitments and emergencies as per yearly quota as given in the above table.

– The leave will be allowed to be taken at one time for a maximum period of 3 (three) working days. Furthermore, this leave will not be cumulative and cannot be prefixed or suffixed to any other type of leave except closed holidays.

– Casual leave is not cashable.

LEAVE POLICY• Sick Leave

– Sick leave is intended to provide paid time off for sickness as per the yearly quota.

– An employee can avail sick leave up to two consecutive days without submitting any evidence of sickness.

– Any unused quota of sick leave gets accumulated up to maximum 30 days during the service.

– Sick leave is not cashable.

LEAVE POLICY• Compensatory Leave

– Compensatory leave

LEAVE POLICY• Maternity Leave•

– Regular Employees:• Maternity Leave is meant for female employees hired on regular basis in

the Company to provide them with adequate paid time off for antenatal, postnatal and infant care.

• The leave may be granted on calendar-month basis to the extent required on the merit of each case for the first 3 months as full paid leave.

• Maternity Leave can only be availed on the explicit recommendations of respective Manager.

• Maternity Leave is admissible for a maximum of up to first 3 live deliveries during an entire service in the company.

LEAVE POLICY• Maternity Leave•

– Management Trainees/ Contractual Employees• Contractual employees will be entitled for un-paid maternity leave

only. The leave duration, will however, be included in the contractual period and the contract term will be terminated according to the date of contract agreement.

• There will be no maternity leave for MTs. However MTs on extended training may be granted special leave on case to case basis.

LEAVE POLICY• Family Responsibility Leave

– Employees who have been in employment with the employer for more than 12 months and who work for the same employer for at least 5 days per week is entitled to 3 days Family Responsibility Leave full pay per annum.

– Family Responsibility Leave applies when the employees child is born, when the employees child is sick, or in the event of the death of the employee’s spouse or life partner, or the employee’s parent, adoptive parent, grandparent, child, adopted child, grandchild or sibling.

– Family Responsibility Leave is not cashable.

LEAVE POLICY• Family Illness Leave

– Family Illness Leave is an extension of the benefits provided under the Family and Medical Leave Policy. A qualifying employee is entitled up to 52 weeks of leave without pay during a 5-year period to care for the employee’s seriously ill child, spouse, or parent. Health benefits are not covered under Family Illness Leave.

– An employee’s eligibility for Family Illness Leave shall be made based on the employee’s months of service and hours of work as of the date the leave is to commence.

LEAVE POLICY• Disability Leave

– Employees having one year of state service are covered under the Short-Term Disability Plan. A maximum of one year of disability leave (for either physical or mental disability) is available to eligible employees.

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– Short-term Disability provides 50% of the employee’s salary after a 60- day waiting period for up to one year of the disability. Short-term benefits can be extended up to an additional 12 months if the company receives the appropriate documentation from the employee’s doctor verifying that the medical condition will be resolved within the second year and can return to the employee’s usual occupation within that second year

LEAVE POLICY• Study Leave

– Regular, MTs, Managers and above employees are eligible to pursuit of higher education for Masters / MS / MPhil for a maximum period of 2 years.

– Probationary, temporary, or intermittent employees are not eligible for educational leave.

– Educational Leave will not be granted in cases where management has determined that neither the course, nor the degree pursued, is of sufficient benefit to the Company.

LEAVE POLICY• Special Leave

– Special Leave (either unpaid or paid) will be considered by the Management under special circumstances on the merit of each case usually after other leave quotas and balances have been fully exhausted and is permissible up to maximum period of two years.

– Some of the key factors to be considered in this regard include Company’s interest, employee’s needs, performance, general conduct, and tenure of service.

LEAVE POLICY• Special Unpaid Leave (SUL)

– Improvement of skills through certifications, trainings, courses of duration from 3-6 months.

– Participation in military reservist training or duty etc. for period exceeding 30 days.

– Extended leave during child birth when maternity leave has been consumed by the employee.

– Any other reason as deemed appropriate by the Management.• Employees having less than five years of service in the company

are not eligible for SUL except under exceptional circumstances on case to case basis up maximum of six months.

• Time taken for SUL shall not be counted for career advancement .

LEAVE POLICY• Special Paid Leave (SPL)

– Special Paid leave (SPL) will only be allowed in exceptional circumstances after all leave quotas and accumulations have been consumed. An employee on SPL will continue to get all the benefits that are admissible to him/her on any other leave.

HRM Policies and Procedures

Engineering

Transcript of HRM Policies and Procedures