Prepared by Faysal Ahmad Roll No. W581319

ALLAMA IQBAL OPEN UNIVERSITY

Dept. of Business Administration

Specialization: Human Resource Management

Internship Report

Kohinoor Textile Mills Limited

Submitted To: Chairman, Deptt. Of Business Administration

Submitted By:

Name: Faysal Ahmad

Roll No: W581319

Registration No: 07POA0010

Mailing Address: M. Hanif, House # 110-A, Street # 130,

Kooch Ghulam Dastgir, Charagh Din Road Mozang Lahore

Contact No: 0333-4900967

Date of Submission

2

ACKNOWLEDGMENT

‘In the name of Allah, the most Gracious, the most merciful’

“All praises for Almighty Allah, who guides us in darkness and helps us in difficulties

and due respect for Holy Prophet (Peace be upon him) who enables us to recognize our

creator.”

First, I would like to thanks Almighty Allah who gave me strength to complete

challenging tasks & His blessings that He provided me confidence, guidance & strength

to complete this report. The journey has not finished yet and I pray to Him to show me

the straight path & help me more in future as I am nothing without His blessings.

Writing an internship report appeared to be a great experience for me. It added a lot to my

knowledge. Completion of internship report is not an easy task. It requires continuous

hard work. Completion of this report would have not been possible without the support of

all staff of HR department to whom I interacted. . I would like to thanks especially

Mr.Omer Shahid to their practical guidance and personal interest by which I become able

to complete this task.

Very special thank to all my dear teachers that build my personality and enable me to do

some creative work be a successful person in practical life.

I am responsible for errors and mistakes presented in the report and a positive and

constructive criticism will always be greeted warmth.

S. S. S. S.

NoNoNoNo

Description Page No.

3

1111 EXECUTIVE SUMMARY 6

2222 OBJECTIVE OF STUDYING THE ORGANIZATION 7

3333 A BRIEF INTRODUCTION 7

4444 DIVISIONS OF KML 8

5555 KOHINOOR MILLS LIMITED MAN POWER 11

6666 ORGANIZATIONAL HIERARCHY 12

7777 INFRASTRUCTURE 13

8888 HRM IN THE LIGHT OF HOLY QURAN AND HADITH 14

9999 LEADERSHIP STYLE 15

10101010 ALLAH SAYS 16

11111111 SAYINGS OF HOLY QURAN & PRACTICE OF HOLY

PROPHET

17

12121212 HUMAN RESOURCE PLANNING 18

13131313 HRM OPERATIONS 18

14141414 MAJOR FUNCTIONS 19

15151515 KOHINOOR HRM PHILOSOPHY 20

16161616 TRAINING & DEVELOPMENT 21

17171717 COMPENSATION & BENEFITS 23

18181818 INDUSTRIAL RELATIONS 24

19191919 HEALTH & WELFARE BENEFITS 25

20202020 SOCIAL COMPLIANCE 29

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21 HUMAN RESOURCE POLICIES 30

22 HUMAN RESOURCE INFORMATION SYSTEM 33

23 HUMAN RESOURCE DOCUMENTATION 34

24 RECRUITMENT & SELECTION 35

25 SOURCE OF RECRUITMENT 36

26 INTERNAL SOURCE 36

27 EXTERNAL SOURCE 37

28 STEPS OF HIRING FOR NEW VACANCY 39

29 RECRUITMENT OF PERMANENT WORKERS 40

30 RECRUITMENT OF TEMPORARY WORKERS 41

32 PERFORMANCE MANAGEMENT 42

33 PURPOSE OF PERFORMANCE APPRAISAL IN

KOHINOOR MILLS LIMITED

42

34 RETIREMENT 43

35 PROMOTION 43

36 EXIT INTERVIEW 43

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Executive Summary

37 EMPLOYEE RELATIONS 44

38 SUCCESSION POLICY 45

39 SWOT ANALYSIS 47

40 CONCLUSION 49

41 RECOMMENDATIONS FOR IMPROVEMENT 50

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As per requirement to complete MBA (HRM) Program at “Allama Iqbal Open

University”. I completed my Internship Program at “Kohinoor Mills Limited”.

This is for six weeks orientation prepared me to better understand the practicality

of different tools of business administration.

At the end of training program, it is required to submit an Internship report in

university and Kohinoor Mills Limited. The Internship report has been completed,

which is a result of one’s time taking efforts. I prepared this report as what I

observed and what so ever I learnt here in Kohinoor Mills Limited. I also got the

help of company’s published material.

My report covers a series of topical areas that I took them in analytical way. Major

portion of this report has been devoted to Company’s introduction and particularly to

its management system. Efforts were to explore their hierarchies and identify the

channels of workflow here in Kohinoor Mills Limited. Then I discussed their major

management and HR activities. Finally, I drew conclusions.

Objective of Studying the Organization:

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My objective of studying the Kohinoor Mills Limited Industries Limited is to know about

the following things:

1. How management is analyzing work and planning for people?

2. What factors are most important to consider in developing a recruitment policy?

3. What screening and selection methods are available, and which ones are most

accurate?

Kohinoor Mills Limited:

A Brief Introduction

History

Kohinoor Mills Limited was incorporated as a Public limited Company on December

21st, 1987 and is located at 8th K.M., Manga Raiwind Road, District Kasur. The

Company produces greige cloth from cotton, blended and synthetic yarns.

Initially Kohinoor Mills Limited was a part of Saigol Group owing over 250000 spindles.

The Saigol Group represents a golden era of history of industrial and commercial

development in Pakistan.

The Group established industrial projects in the field of textiles comprising weaving,

Dyeing, and finishing facilities,

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Prior to nationalization of the private sector industries in the early 1970’s the Group was

one of the largest in Pakistan. After nationalization, the group focused in textiles only.

Mission Statement:

We at Kohinoor believe our employees to be our most valuable asset. We have a human

resource management department for every division because we view it as a competitive

advantage. Through HRM we are able to ensure that business goals are realized through

our workers while meeting their personal aspirations. It further ensures that only

motivated and professionally qualified people are employed. Kohinoor is an equal

opportunity employer with policies, which ensure that there is no discrimination on the

basis of caste, creed, sex, religion, etc.

Divisions of Kohinoor Mills Limited

Hosiery Division

KOHINOOR MILLS

LIMITED

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Products: Kohinoor Hosiery is engaged in the production of high quality socks with a capacity of

9.6 million dozen per annum. Its core product is 108 needle sports/casual socks.

Workforce:

The company enjoys the services of professionals in its various departments with a total workforce of 1900

individuals.

Turnover:

It has a total annual sales turnover of US$ 32.16 Million.

Weaving division

The project was initially established with 48 Sulzer Ruti shuttle-less looms of 153" width

from Switzerland with modern ancillary machinery to produce high quality fabric for

export markets.

Further expansions saw the installation of an additional 96 Tsudakoma air jet looms from

Japan in 1990 and a third shed comprising 60 state of the art Picanol Omni 340 cm wide

looms was installed in July 1998. In 2000-2001 old 48 Sulzer Ruti looms were replaced

by 48 lated Picanol Omni Plus 380cm looms. In addition to that latest Picanol Omni Plus

Jacquard Looms were also added.

The entire manufacturing process from warping to fabric inspection is monitored through

an on-line process control system from Barco. The marketing strategy is to explore new

markets both in quota and non-quota countries.

Products:

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Twills Yarn dyes

Poplin / Canvases Broken twills

Sateen Herring bone

Jacquards Bfc

Dobbies Ripstop

Dying Division

Kohinoor Dyeing has state of the art Dyeing & Finishing plant producing, Dyed, White &

PFGD Fabrics with a capacity of 3.0 Million meters per month. Kohinoor Dyeing has a

diversified customer base spread over different continents. It has long-term professional

relationship with most of the High Street Labels and famous chain stores:

PRODUCTS

Reactive, Disperse, VAT, Sulpher and Pigment dyed fabrics for bottom wear in;

� 100% Cotton

� Poly cotton blends

� Stretch fabrics

Genertek Division

Kohinoor Genertek is a power generation plant, engaged in power generation and

distribution since 1995. Its has the generation capacity of 29.28 MW and comprises of the

following types of Generation equipment.

Workforce

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The company enjoys the services of professionals in its various departments with a total

workforce of 65 individuals.

Turnover

It has a total turnover of US$ 10 million

Kohinoor Mills Limited Man Power

DIVISION MDGMDGMMANAGEREXECUTIVESUPERVISORWORKERS TOTAL

HOSIERY 1 1 3 5 35 77 1855 1977

WEAVING 0 3 0 7 35 53 695 793

DYEING 1 2 0 10 52 56 575 696

GENERTEK 0 0 1 3 5 12 49 70

POOL 1 1 2 6 18 29 81 138

TOTAL 3 7 6 31 145 227 3255 3674

Organizational Hierarchy

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Infrastructure:

GENERAL

MANAGER

PROCESSING

GENERAL

MANAGER

MARKETING

GENERAL

MANAGER

SPINNING

MANAGERFINANCE

PRODUCTION

MANAGER

STITCHING

MANAGER

HR & ADMIN

MANAGER

FOLDING

MANAGER

PURCHASE

MANAGER

PPC

MANAGER

Q/A

MANAGER

ENG.SERVICES

GENERAL

MANAGERSALES

MANAGING

DIRECTOR

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Kohinoor has planned infrastructure and buildings available which have been designed to

take the current capacity to the next levels.

BUILDINGS

FACTORY

BUILDING

SQFT

RESIDENTIAL

BUILDING

SQFT

TOTAL SQFT

HOSIERY 301,665 189,090 490,755

WEAVING 285,606 140,339 425,945

DYEING 244,543 30,642 275,185

APPAREL 146,808 - 146,808

GENERTEK 71,560 13,982 85,542

TOTAL AREA 1,050,182 374,053 1,424,235

HRM IN THE LIGHT OF HOLY QURAN AND HADITH

Allah Almighty says, “Travel through the world and observe”.

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In another place, He says, “Learn from the happenings with the previous nations”

Also,

“There are signs for those who are in search of truth and possess wisdom”

So, I believe that we can get the guidance and instructions at any of the matter that we

confront in our lives. But the need of the hour is that we must have the required urge for

this purpose. We must be eager to find the truth. Allah always rewards those who are

struggling on the right path and wish to be close to him. That’s why, a person must be

patient, determined and firm footed.

All the advanced nations in the world are doing research work by studying & grasping

the exegesis of Holy Quran. Top ten banks of the world are Japanese and none of them

charges interest just because those people have understood the truthfulness of our holy

book. They also developed the best irrigation system of the world.

So, each & every practice in Islam is a complete blessing in itself. We have to adopt them

and their meanings & purposefulness will automatically be portrayed on us. Here, I can’t

help mentioning the true story of a Pakistani doctor. When this particular doctor visited

abroad, he saw that foreign doctors were asking the patients to perform all those activities

(as exercise), which we perform while saying prayer. Hence, we will be safe from

countless diseases by just performing prayers five times a day.

In this regard, we have made just a minor effort to enlighten some of the aspects of

Human Resource Management under the light of Holy Quran and Hadith.

Leadership Style

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It is very important to decide about the leadership style in order to successfully apply the

principles of Human Resource Management and achieve the organizational goals.

Although, we feel that Holy Prophet has communicated divine rules to us that can’t be

objected. The followers have to accept them as they are. By time, it was proved that if

consensus would have done on them, the same rules would had come out of them. On

many occasions, verses were revealed in the favour of opinions of the companions of

Holy Prophet. Holy Prophet had the perfect democratic leadership style. Few of the

advantages to pick and apply this style are discussed below.

• In our business environment, no compromise can be done on the achievement of

organizational goals. A democratic leader can better negotiate the goal to achieve. It

ensures and fixes that the goals are obtainable. This gives a sense of participation to the

employees. As a result, both, the morale & the motivation of employees go to the peak.

• When all the relevant people gather to set the goals & plans to achieve them, all

of them agree on the common goals at last. They all become committed to them. Then all

of them unite to win these goals and become a strength that ensures the achievement of

these goals. A trust is developed not only within the employees but also on the

management of the firm.

• As a result of high morale, they struggle hard to win goals. The entire group has

the required desirability to obtain common goals. They become ready to reach the set

targets at any cost.

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• A very important advantage of this leadership style is that both the leader and the

employees feel a high sense of responsibility on themselves. They become answerable for

their own set goals.

• On adopting this style, a manager comes in a better position to perform his

responsibilities like of communicator, counselor, coacher and appraiser. He can very well

deliver the preferences of the firm, responsibilities on the part of the employee. Now he is

better able to appraise the employee because they set the targets himself.

Allah Says

“Hold tightly onto Allah’s rope.”

Allah has given the most appropriate and logical principles to lead life in the Holy Quran.

These were applicable 1400 years ago as well as in the present era. This book gives the

feelings of equality that the rich are not given any special or superior book as compared

to the poor. It means that on the basis of these eternal rules, you have to develop different

systems to lead your lives. No one will be exempt from these principles. In fact, it was

the unbiased justice system of Islam that convinced Non-Muslims to embrace Islam.

And say prayer

Whenever, we say prayer, we stand side by side with each other. We start from Allah

Akbar. It doesn’t just mean that we are going to bestow. It invites the believers to bury

the old enmities. All the Muslims are asked to put aside the whole differences and gather

for the cause of Allah. This is the way to assure the people that they are equal in all

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respects. When the destination of all is same (Allah) and also the method to access Him.

They all bow to Allah to pray to Him.

SAYINGS OF HOLY QURAN & PRACTICE OF HOLY PROPHET

It is clearly mentioned in Islam that the basis of an Islamic government will be consensus.

Holy Prophet always used to consult with his followers. There is no concept of heirs of

kingdom in Islam. That’s why, all the four caliphs were selected through the consultation

of companions after the Holy Prophet. Any caliph didn’t appoint any particular person.

Every one just pointed out the most eligible persons to bear the responsibility of being the

leader of all the Muslims.

When the Muslims became victorious in the battle of Badr, a number of non-believers

were also brought as prisoners. Then Holy Prophet asked for the opinions how to treat

with these prisoners. Hazrat Umer suggested that every Muslim should be handed over

his own relatives. So, he will kill these relatives. An opinion was of charging ransom for

their freedom. This was a new practice in Arab.

Similarly, another event shows that how much importance, Holy Prophet used to give to

the consultation and opinions of his followers and same is appreciated by Allah

Almighty. So, when Holy Prophet intended to attend the funeral of a hypocrite named

Abdullah Bin Abee, hazrat umer, showing anger, said to him that you would go to the

funeral of a hypocrite. Then, the revelation also came in the favour of opinion of Hazrat

Umer.

This shows that even Allah also likes positive and logical consultation.

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Human Resource Planning

Human resource planning is all about measuring the organization need to identify the

numbers of employees and skills required to do those jobs. Further, an understanding of

available competencies is necessary to allow the organization to plan for the changes to

new jobs required by corporate goals

HRM Operations

At a general level, it is important to analyze training needs against the backdrop of

organizational objectives and strategies. Unless you do this, you may waste time and

money on training programs that do not advance the cause of the company People may be

trained in skills they already possess the training budget may be squandered on rest and

recuperation sessions, where employees are entertained but learn little in the way

required job skills or job knowledge, or the budget may be spent on glittering hardware

that meets the training director’s needs but not the organization’s.

It is also essential to analyze the organization’s external environment an internal climate.

Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union

activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior

will provide relevant information at this level.

However, assessing the needs for training does not end here. It is important to analyze

needs regularly and at all three levels in order to evaluate the results of training and to

assess what training is needed in the future.

� At the organizational level, senior managers who set the organization’s goals

should analyze needs.

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� At the operations level, the managers who specify how the organization’s goals

are going to be achieved should analyze needs.

At the individual level, the managers and workers who do the work to achieve those goals

should analyze needs, keeping in mind that performance is a function both of ability and

motivation.

Major Functions of HRM

Every organization whether it is a multinational conglomerates a small business, a

religious institution or a government agency depends on people. Appropriate candidates

for each job from chairman of the board to night shift janitor must be located either inside

or outside the organization and they must be convinced by pay benefits and working

conditions to take and keep the job. They must also be trained and motivated. Handling

these functions is part of human resources management’s job.

they feel burden on themselves.. There are six steps.

1. Human resources planning

2. Staffing

3. Training & Development

4. Compensation Management

5. Employee Evaluation

6. Employee Movement and Replacement

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Kohinoor HRM Philosophy

� Our people are our most valuable asset.

� Kohinoor view Human Resources as a competitive advantage.

� To ensure business goals are realized through people while meeting their own

personal aspirations.

� To ensure only motivated and professionally qualified people are employed.

� Kohinoor is an equal opportunity employer with policies to ensure there is no

discrimination on the basis of caste, creed, sex, religion etc.

COMPENSATION

& Benefits

INDUSTRIAL

RELATIONS

SAFETY HEALTH

& Environment

SOCIAL

COMPLIANCE

TRAINING &

DEVELOPMENT

HUMAN RESOURCE

MANAGEMENT

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Training & Development

Training and Development of employees is a core value at Kohinoor Mills Limited

� Management supports training and development programs to ensure motivated

and professionally competent people are available within the organization. This is

an essential responsibility of every manager and is a part of his or her key result

area and objectives.

� A corporate training department, which apart from assessing individual training

needs also, provides extensive in-house training and consultancy for the

development of employees.

� HRO is responsible for Employee Orientation.

� Immediate supervisor is concerned if an employee is queries even after

orientation.

� Formal training programs both for the employees and management.

� Absenteeism 1.3% of in the last 6 months

Training Centers

� Specialized training officer is used for effective training programs which weren’t

used previously.

� Workers club and training centers are specifically designed for training.

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Training Cost

� All aspects are trained but mostly need base job skill development.

� 0.4-.5% avg. of total wages is estimated training cost.

� Normally 20-25 employees are under training at a time

Training and Development Policy (KML)

Scope and Purpose

KML is committed to excellence in training and development of its manpower

appropriate to their duties/responsibilities. The objective is to impart knowledge, develop

skills and bring about a change in the attitude of employees. It will enable achieving

Company objectives as efficiently and effectively as possible and to provide the

opportunity for employees to realize & achieve mutually agreed goals.

This procedure identifies KML approach to Human Resources Development and

describes the methods to be used for the efficient and effective development of KML

personnel.

Implementation

The Managing Director of each company has over-all responsibility for ensuring

implementation of the training policy. He delegates in the first instance this responsibility

to his Human Resources Department.

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Compensation & Benefits

Compensation systems are communicated to the employees using employee handbook,

newsletters and circulars.

� COLA is used and varies pay to pay scale.

� Security scheme. Company contributes 7% of wages for medical facilities to

employees, spouse, children and parents. Dispensary/injury treatment Center

located in the colony.

� Group Health Insurance - Other employees are covered under group

hospitalization insurance.

� Old-age Pension - Company contributes 5% of wages for each employee for

pension for male and female employees at age of 60 and 55 respectively.

� Group Life Insurance - All employees insured ranging from 100,000 to 400,000

for various categories.

� Children’s Education - Company contribute Rs. 100 per year for each employee,

which provides grants and scholarships to employees children.

� Personal Protective Equipment - All employees provided personal protective

equipment.

� Contributory Provident Fund - 8.3% deducted from wages with equal amount

contributed by the company.

� Working Hours - : 8hr/shift (inclusive of lunch & tea breaks)

� Workers Participation in Company’s profit - 5% of Net profit is contributed

towards the fund.

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� Leaves - 8 sick; 10 casual, 14 earned leaves annually and 12 Weeks maternity

leaves.

� Canteen - Self-service canteen where subsidized hygienic food is served round the

clock.

� Dowry - Daughter Marriage - Besides dowry Funds paid by the Social Security

Rs. 3000/- each is paid by the Mills for first two daughters.

� Water Purification Plant

� Recreational/Sports Facilities

� Carriage of Dead Body - Paid by the Mills depending on the distance covered.

� Colony - Employees provided free accommodation with recreation facilities.

o Family Quarters - 470

o Number of residing single - 500

� Utilities - Free Electricity, gas and water to colony residents.

� Transportation - Pick and drop facility for female employees

Industrial Relations

Compliance of All Applicable Labor Laws

KML comply with all applicable labor laws:

� Factories Act, 1934 - Law regulating labor in factories

� West Pakistan Industrial and Commercial Employment (Standing Orders)

Ordinance, 1968 - Law relating to Industrial and Commercial employment.

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� Industrial Relations Ordinance, 1969 - Law relating to the formation of Trade

Unions; regulating of relations between employees and workmen and avoidance

and settlement of any differences or disputes arising between them.

� Provincial Employees Social Security Ordinance, 1965 - Scheme for providing

benefits to certain employees or their dependents in the event of sickness,

maternity, injury or death etc.

� Employees’ Old-Age Benefits Act, 1976 - Act relating to old age pension for

person employed in industrial, commercial and other organizations.

� Employment Children Act, 1991 - Act to prohibit employment of children..

� Company Profits (Worker’s Participation) Act, 1968 - Act to provide for

participation of workers in company profits.

� Worker’s Children (Education) Ordinance, 1972 - Law relating to education of

worker’s children.

Workmen’s Compensation Act, 1923 - An Act to provide for the payment by employers

to workmen for compensation relating to injury by accident.

Health & Welfare Benefits

Health & Safety is essential for their success. The principles by which they operate:

� All work related injuries and illnesses are preventable.

� Compliance with local regulations is a priority.

� Line Management accountable in Health &Safety performance.

� Energy, water and other resources, both natural and man-made, will be utilized

efficiently to minimize waste

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Policies to regulate Health & Safety of employees and operations

� Health & Safety Policy

To prevent accidents or incidents this may result in injury. To ensure healthy and safe

working conditions by identifying and eliminating all occupational health and safety

hazards. To continuously monitor and evaluate the effectiveness or the safety

performance of all Group Companies.

Occupational Health

The first aid services and trained first aiders are available on the site at all times.

Personnel suffering from any injuries, infectious diseases, infections or rashes, or contact

with infectious diseases must report these to their immediate supervisor.

Monitoring

Potential hazards which can include exposure to dusts, harmful vapors and unacceptable high

noise levels will be eliminated as far as practicable and when this is not possible full personal

protection will be provided.

� Accident & Work Related III-Health Reporting, Notification & Investigation

It is KMLG policy that all accidents including non-injury accidents and related

conditions of ill-health MUST be Reported-usually by the person injured or involved.

� Noise Level

To maintain work environment that does not subject employees to noise levels, which

could result in a loss of hearing capability. Company must carry out noise monitoring

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to ensure that employees are not exposed to noise levels that exceed the company

standard of 85 dB (A)

� Personal Protective Equipment

It is the policy of the KML to prevent exposure of staff to harmful substances and

physical hazards so far as is reasonably practicable. Following appropriate engineering

controls, consideration MUST be given to whether additional protection should be

provided in the form of personal equipment. Risk to eyes, face, head, skin, hands, ears,

and feet should be assessed for each activity and appropriate protective equipment

provided.

� Tobacco Smoking Policy

It is the policy of the KML to provide a health environment for all employees and to

encourage a healthy lifestyle to help reduce health risks. Employees who do not

smoke MUST not be exposed to tobacco smoke. To this end, one goal should be to

become totally non-smoking at site.

Committee

Health & Safety Committee

First Aid

� First Aid Boxes

� Trained First Aiders

� Social Security Dispensary/ITC

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Fire Safety � Separate Fire Section

� Fire Hydrant System

� Fire Extinguishers

� Operating Instructions in Local Language

� Fire Fighting Training

� Monthly Fire Equipment Inspection

� Record/History of Fire Equipment

� Fire Incidents Notification

Chemical Safety

� Proper Storage of Hazardous Chemicals

� Material Safety Data Sheets in Local Language

� Safety Signs & Posters

� Chemical Handling Training

� Personal Protective Equipment & Emergency Showers

Workers’ Awareness

� Workers Hand Book

� Health & Safety Manual

� sops & Awareness Training

� Health & Safety Notice Boards

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Social Compliance

Social Responsibility is one of the central values of Maple Leaf Group.

KML follow and meet all the requirements of SA-8000 standards and believe in social

responsible trading.

� Child Labor

� Forced Labor

� Health and Safety

� Discrimination

� Disciplinary Practices

� Working Hours

� Compensation

� Management System

Freedom of association and right of Collective Bargaining

One company of KMLG Group has achieved SA-8000 certification

Handy cap Quota is currently 1.2% in KML out of 2% standard

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Human Resource Policies

Human Resources policies reflect the Group’s over-all purpose and culture.

KML revise its policies every 2 years. A list of policies published in the KML is as

follows;

1. Recruitment Policy

To recruit and retain capable and qualified employees. Placing right people on the right

job that is willing to contribute their best efforts to accomplish objective of the

organization

2. Performance Appraisal & Management System

To assist the extent to which employees are performing their job effectively and to

propose measures to enhance utilization of their potential. It provides an opportunity to

reward good performance and to pin point areas needing improvement.

3. Promotion Policy

To promote people from within whenever possible, provided suitable person with

requisite academic/technical qualification with necessary experience capacity of hard

work and shouldering responsibility are available

4. Engagement of Management Trainee Policy

To induct young qualified professionals at entry levels to meet the future requirement of

the company and impart systematic training to develop potential leaders

5. Car Policy

To provide guideline to define, monitor and administer the policy regarding company,

maintained car allotted to certain categories.

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6. In country Travel Policy

The purpose of this policy is to set-forth travel rules for the employees and to determine

reimbursable entitlement for various expenses incurred when they are on the company's

business within Pakistan

7. Transfer Policy

The purpose of this policy is to set-forth transfer rules for employees within the group

companies. The principle governing the transfer shall be the interest of the Kohinoor

Mills Limited.

8. Training & Development

KGML is committed to excellence in training and development of its manpower

appropriate to their duties / responsibilities. The objective is to impart knowledge,

develop skills and bring about a change in the attitude of employees. It will enable to

achieve company's objectives as efficiently and effectively as possible and to provide the

opportunity for employees to realize & achieve development of KGML personnel.

9. Succession Policy

To identify successor to key jobs and high potential employees to assure a study flow of

internal talent to fill important openings.

To encourage "hiring from within" and create an environment in which employees have

career and not merely jobs.

To identify Human Resources Shortage and skill deficiencies before opening occurs

which will ensure greater continuity of operations and availability of qualified incumbent.

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10. Retirement Policy

To fix age, at which most people normally retire for work, enabling the company to do

succession planning and induction of new blood in the organization.

11. Overseas Travel Policy

The purpose of these rules is to set forth travel instructions for the employees and to

determine reimbursable entitlement for various expenses incurred when they travel on the

Company's Business outside Pakistan

12. Record Policy

To provide guide-lines for the retention of useful records for reasonable period and

destroy after lapse of certain period keeping in view its utility.

13. IT Policy

The overall objective of having IT Policies and procedures is to protect the integrity,

confidentiality, and availability of information. The primary threats either accidental or

deliberate that keep an organization from attaining this goal are unauthorized access,

modification and destruction, as well incompatible hardware, poor quality networks and

non standardized or illegal software.

14. Security Policy

The purpose of these rules is to set-forth security instructions and continuously monitors

& evaluates security performance and effectiveness of all Group Companies. To prevent

theft, pilferage of material/information and regulate entry of only authorized personnel in

the Mills premises.

15. Grade & Salary Structure

16. Tobacco Policy

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17. Accident work related

18. Reporting, Notification & investigation

19. Grade & Salary Structure

20. MIS-Human

21. Resources

Human Resource Information System

Maintaining an up to date record of employees working in the organization is critical.

KML is also doing this job both on software as well as on the papers. Besides a lot of

paper work KML is using Oracle 11i where lot of information is stored regarding

employees working in the organization like; Employees personal bio-data and payroll

system etc.

A separate Time and Attendance System is to be launched for which KML has received

no. of offers from different vendors and for one which they did test checking for the

period of one month is A to Z technologies situated in Lahore.

KML has its own production house in Lahore called IT department. But initially they rely

on using fox-pro and clippers. Payroll System is the interface between Human Resource

department and the finance Department.

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Human Resource Documentation

A huge stock of stationary can be found in the HR Department of KML regarding

employee records because their HR Department keeps an up to date record of each and

every activity of its employee like; Job Analysis, Job Descriptions, Job Evaluations, paid

time off and bulk of other important record.

Personal Files of Employees are maintained and following is included in it;

1. Personal Requisition Form

2. Application for employment

3. Performa Personal Particulars

4. Testimonials

5. Applicant’s ID card

6. Applicant’s Photograph

7. Experience Certificate

8. Written Test Mark Sheet

9. Interview Rating Form

10. Medical Certificate

11. Selection Process Report

12. Applicant Appraisal Form

13. Appointment letter

14. Joining Report

15. Induction Training Form

16. Confirmation Letter

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17. Training & Development Plan

18. Personal Data Sheet

19. Personal Status Form

20. E F U

These files are kept for the whole life of the organization.

All the Govt. policies awards and schemes and allowances are accordingly updated and

benefits are transferred to the employees.

Recruitment & Selection

� Human Resource department offers for the employment whenever a vacancy

arises.

� A written test is also conducted before screening interview

� Human Resource Department does the preliminary screening.

� Immediate supervisor with the consent of Human Resource department make

selection of an employee.

� All the screening, recruiting and selection process is documented

� Usually Panel interview is conducted.

� Manager of the particular department makes final selection

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Source Of Recruitment

There are two kinds of source Kohinoor Mills Limited uses for recruitment .They are

1. External source

2. Internal source.

We try to discuss all relative sources which are used for recruitment in Kohinoor Mills

Limited.

Internal Source

Kohinoor Mills Limited thinks that current employees are a major source of recruits for

all but entry-level positions. Whether for promotions or for ‘Lateral’ job transfers,

internal candidates already know the informal organization and have detailed information

about its formal policies and procedures. Promotions and transfer are typically decided by

operating managers with little involvement by HR department.

Job-Posting Programs

HR departments become involved when internal job openings are publicized to

employees through job positioning programs, which informs employees about opening

and required qualifications and invite qualify employees to apply. The notices usually are

posted on company bulletin boards or are placed in the company newspaper.

Qualification and other facts typically are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the

help the HR department fill internal opening and meet employee’s personal objectives.

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Not all jobs openings are posted .Besides entry level positions, senior management and

top stuff positions may be filled by merit or with external recruiting. Job posting is most

common for lower level clerical, technical and supervisory positions.

Departing Employees

An often overlooked source of recruiters consists of departing employees. Many

employees leave because they can no longer work the traditional 40 hours work week

.School, child care needs and other commitments are the common reason. Some might

gladly stay if they could rearrange their hours of work or their responsibilities .Instead,

they quit when a transfer to a part-time job may retain their valuable skill and training.

Even if part-time work is not a solution, a temporary leave of absence may satisfy the

employee and some future recruiting need of the employer.

External source

When job opening cannot be filled internally, the HR department of KOHINOOR MILLS

LIMITED must look outside the organization for applicants. We discuss all the external

source of recruitment at bellow:

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Walk-ins and Write-ins

Walk-ins are some seekers who arrived at the HR department of KOHINOOR MILLS

LIMITED in search of a job; Write-ins are those who send a written enquire .both groups

normally are ask to complete and application blank to determine their interest and

abilities. Usable application is kept in an active file until a suitable opening occurs or

until an application is too old to be considered valid, usually six months.

Employee referrals

Employees may refer job seekers to the HR department .Employee referrals have several

advantages .Employees with hard –to –find job skill may no others who do the same

work.

Employees referrals are excellent and legal recruitment technique, but they tend to

maintain the status quo of the work force in term of raise , religions , sex and other

characteristics , possibly leading to charges of discrimination.

Advertising

Want ads describe the job and the benefits, identify the employer, and tell those who are

interested how to apply .They are most familiar form of employment advertising .for

highly specialist requites, ads may be placed in professional journal or out of town

newspaper in areas with high concentration of the desired skills

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Example:

General Manager- production (ref: PM)

-Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT

or equiv.

-Minimum 10 years experience in similar position of a unit with a minimum of

1000machines.

-Must have detailed hands on knowledge of industrial engineering.

We offer competitive salary which is commensurate with experience and qualification.

If you aspire to an exiting and rewarding career , send your detailed resume, quoting your

present and expected salaries to jobs.

Internet

Now today no body thinks anything without internet. So Kohinoor Mills Limited give

their advertise at internet.

Example:

http://www.kohinoormills.com/

Steps of Hiring for New Vacancy

1. Job Analysis

2. Job Specifications

3. Job Description

4. Requisition Form

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5. Database

6. Written Exam

7. Screening Interview

Recruitment of Permanent Workers

The concerned departments will raise a requisition to Incharge Time Office

A. The Incharge Time Office after checking the vacant posts will invite the

applications and will ask the short listed candidates to fill the preliminary form

attaching the copy of Identity Card, Metric Certificate or Certificate of more

qualification, experience Certificate if any. Asstt. Labor Officer will verify his age

and qualification and will sign the application form

B. A short interview will be taken by the General Manager/Managers from the

concerned departments to check the candidate's eligibility/suitability for the job.

The recommended applications will be forwarded to Manager HR & Assistant

Manager HR & Administration who will accord final approval for recruitment.

C. The Service Record Keeper will then issue a Trial Card and the worker will be

allowed to go for Trial in the Mills Area for a period of maximum 03 days

D. On completion of the trial period the concerned head of the department will

declare fit on the specified column in the Trial Card or otherwise and the

Assistant Labor Officer will countersign the Trial Card Form, otherwise in case of

unfitness his service will be liable to be terminated

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E. The Service Record Keeper will than issue Nomination Form, Medical Slip and

Mills Departmental Ticket to the worker for onward completion of necessary

formalities/signed by the Concerned Authorities specified in the relevant column.

F. An appointment letter will be issued by Assistant Labor Officer/Industrial

Relations & Labor Welfare Officer after getting prior approval from Manager HR

& Admin, hence workers will be taken on probation for a period of 03 months.

G. The worker will be confirmed after satisfactory completion of 03 months

probation period and to this effect, a confirmation letter will be issued to him duly

H. After confirmation, the management can terminate the services of workers by

giving 30 days notice in writing or 30 days pay to the company in lieu thereof.

Recruitment of Temporary Workers

A. The worker will fill an initial application form recommended by the Concerned

Head of the Department and will attach thereof the copy of I.D. Card and

Educational Certificate for submission to the Incharge Time Office.

B. The Incharge Time Office after checking the vacant post will verify his age,

qualification and other particulars from the documents attached which will be

countersigned by the ALO

C. A temporary appointment letter will be issued to the worker duly signed by the IR

& LWO. The letter will be issued on purely temporary basis till the completion of

job not exceeding than 90 days (3 Months).

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Performance Management

Performance appraisal is the process of assessing employee’s past performance, primarily

for reward, promotion and staff development purposes.

‘Performance appraisal (is) a process that identifies, evaluates and develops employee

performance to meet employee and organisational goals.

Performance Appraisal doesn’t necessarily use to blame or to provide a disciplinary

action.Previous management theories used to view performance appraisal as a stick that

management has introduced to beat people. Performance appraisals are now more

clarified and they concentrate on developing organizational strengths and employee

performance.

� Employees are given promotion subject to the conditions that vacancy and

competency

� No training is provided for those who conduct interviews.

� HRO checks the references.

� References check is not documented.

� Turnover rate is 7% in the last 6 months

Purpose of Performance Appraisal in KOHINOOR MILLS LIMITED

To review past performance

To assess training needs

To help develop individuals

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To audit the skills within an organization

To set targets for future performance

To identify potential for promotion

To provide legal & formal justification for employment decision

To diagnose the hidden problems of an organization

For Reference See (Annex “A”)

Retirement

The retirement age at KML is 60 years. (Annex “B”)

Promotion

To promote people from within whenever possible, provided suitable person with

requisite academic/technical qualification with necessary experience capacity of hard

work and shouldering responsibility are available

For Reference See (Annex “C)

Exit Interview

An exit interview is conducted at the time of retirement or when an employee

leaves the organization for any reason and that includes following questions;

1. What is your reason for leaving?

2. Why did you decide to seek employment elsewhere?

3. . Are there any other reasons why you are leaving?

4. Was your job here the way you thought it would be after hearing it described in job?

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5. As an employee, were you given all of the information you needed to perform your

job?

6. How did you feel about the quality of training you received for your job?

7. How did you feel about the supervision in your unit?

8. How did you feel about your rate of pay in relation to the type of work you did?

9. How did you feel about opportunities for advancement within the company?

10. What do you think of company benefits?

11. What was the most common complaint of fellow employees?

12. What were the things you liked most about working here?

13. What were the things you like least about working here?

14. What changes would you make to make this a better place to work?

15. Would you refer friends to the KML?

16. Is there anything you would like to add about your reasons for leaving?

Employee Relations

KTM is Freedom of association and right of Collective Bargaining and believe in social

responsible trading. KTM has three unions but they allow 0% outsiders;

� Labor Union; Is also the CBA

� Mazdoor Union

� Workers Union

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Succession Policy It is the Company policy to identify successors in advance for key positions, which may create unusual situation at the time of recruitment or separation from the company. The succession policy is as under:

Objective

To identify Successor to key jobs and high potential employees to assure a steady flow of

internal talent to fill important openings. .

To encourage "hiring from within" and create an environment in which employees have

careers and not merely jobs.

To identify human resources shortages and skill deficiencies before opening occurs which

will ensure greater continuity of operations and availability of qualified incumbents.

Policy

It is the Policy of KMLG to identify successors in advance for key positions, which may

create

unusual situation at the time of recruitment or separation from the company.

Procedure

Replacement Chart.

Each unit will prepare its Replacement Chart (HRGP 19/F-O1) depicting all such

positions covered under this policy.

Replacement Charts are a visual representation of who will replace whom if there is an

opening and based on two variables i.e. present performance and promotability.

Replacement Chart will be reviewed after every two years, however, in case of any

movement of any Executive it may be updated accordingly.

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Replacement Summary.

Replacement Summary (HRGP 19/17-02) will be prepared as and when an employee

attains age of 59 years or services notice of separation from the company. This provides

considerably mare data than do replacement chart and follow decision-maker to make

more informed choices.

Human Resources Manager of each Group Company will be responsible for preparing

the Replacement Summary for onward submission to the Chief Executive Officer.

Confidentiality

Whether Replacement Chart or Summaries are used this information is normally kept

confidential. Confidentiality not only guards the privacy of employees but also prevents

dissatisfaction among those who are not immediately promotable.

Preparation of Succession Plan

Group General Manager Human Resources will arrange to initiate Succession Plan of

Senior and key positions (Particularly employees in guards M-18 & Above) in the form of

Replacement Chart and forward to the concerned Chief Executive who will finalize it in

consultation with the

Chairman.

Succession Plan of Dept./Section Heads (in grades M-16 & M-17) will be initiated by the

concerned Human Resources Manager and forwarded to the Chief Executive Officer who

will

finalize it in consultation with the Department Head.

Implementation

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The Managing Director of each Group Company has the over-all responsibility for

ensuring the

implementation of this policy.

SWOT ANALYSIS

SWOT analysis means the analysis of strength , weakness, opportunity and threats . For

Kohinoor Mills Limited Textiles Ltd. It is given below:

Strength

Kohinoor Mills Limited Textiles Ltd. Is a rapidly expending Company. All the units of

the factory enjoy highly of machinery are imported from Germany, Switzerland, Italy &

Japan . As a result it can maintain a smooth rate of production. Well trained human

recourses are another strength of the Company . They train up their key personally in the

country and abroad. So that the Company can get some competitive advantages over the

competitions. The HRM practice is also remarkable.

Weakness

There are too many departments under the super vision of the general manager which can

cause low productivity due to large span of super vision.

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Opportunity

There are bright opportunities for the Company in the overseas market . If is can

communicate well and capture a significant market portion in the Europe and USA

market, it can get scale of economic.

FINDINGS AND RECOMMEDATIONS

Findings: The size of the industry is still growing. Kohinoor Mills Limited Textiles

Limited is one of the first movers in this sector. It has managed to be grown up as one of

the country’s leading Textile Company. Its increase turnover has been significantly

increasing. It is providing employment to a large number of skilled and unskilled people

all over the country.

Recommendations: From the analysis with the organization structure we have seen that

its span of super vision is too large. A number of departments report directly to the

general manager. If the number were less the efficiency and productivity of the

organization might be increased. Quality control department should remain prompt

always. So that it can maintain a certain level of standard as per the market demand to

capture the foreign market share it should strive more.

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Conclusion

KML being the largest and oldest textile company in Pakistan has obtained all the quality

assurance certificates which a company needs to be successful in the competitive global

market. Top management and employees work side by side for continuous improvement

of the quality. Employees are involved in decision making at every stage through

different Employee Involvement program. The top management with the board develops

strategies but involvement for supervisory division is also there. KML emphasize greatly

on Human Resource practices and HR department is very much concerned about the

betterment of employees. KML is working very well for making its employee more

secure and stable in case of jobs. Kohinoor textile mills maintain a very stable system for

quality management. They have separate divisions for each process, which contribute a

lot in meeting the high standards. KML main strategy is "customers come first" and they

fulfill their customer needs by constantly improving their quality and by doing so they

produces one of the top quality textile products. There is excellent communication

between the HR, Marketing, Sales and production department, which lead to increase the

profit margin of the company.

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Recommendations For Improvement

Organizations big or small profit or unprofitable have problems and there are always

chances of improvements. This is also the condition for Kohinoor Textile Mills Limited.

As problems and difficulties have been identified, now here are some suggestions that

may help the organization to improve. This is also the condition for Kohinoor Textile

Mills Limited. As problems and difficulties have been identified, now here are some

suggestions that may help the organization to improve

� In processing department there is a need of skilled workers. There are certain

departments of processing in which employees have been working since long but

their efficiency is not improved and unsatisfactory results come out sometimes.

The skilled labor will not only improve the efficiency but also will improve

effectiveness. There should be chances given to skilled workers to enter the

organization.

� Job analysis should be done to know what are the jobs needed in the organization.

I know some persons who are doing the job of two or three persons.

� There should be more fringe benefits for the employees taking into consideration

there devotion skill and experience. This higher level would make the employees

more efficient and effective.

� The first aid and other medical facilities should be provided to the employees with

in the mill area. There is continuous working in the mill and every time there are

chances of any accident or unpleasant incident. So in order to handle this type of

situation the first aid dispensary should be there in the mill area.