Human Resource Management of Engro Corporation

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HUMAN RESOURCE MANAGEMENT OF

ENGRO CORPORATION

GROUP MEMBERS STUDENT ID


 Maryam Pervez 24625
 Arhama Alwani 24610
 Mahru Nadeem Vellani 24605
 Sayed Saleh Muhammad Shah 24491
 Asra Yousuf 24200

COURSE: Principles of Management


SUBMITTED TO: Vara Sayed
TABLE OF CONTENT

Topic Page #

INTRODUCTION………………………………………………………….. 1

WHAT IS ENGRO CORPORATION…………………………………….. 1

ENGRO CORPORATION’s MISSION…………………………………... 2

ENGRO CORPORATION’s VISSION………………………………….... 3

ENGRO CORPORATION’s OBJECTIVES……………………………... 3

HRM of ENGRO CORPORATION………………………………………. 4

EXECUTIVE SUMMARY…………………………………………………. 7

CONCLUSION……………………………………………………………… 7

RECOMMENDATIONS……………………………………………………. 8

REFERENCES………………………………………………………………. 8
INTRODUCTION
The purpose to write this report is to understand the Human Resource Management (HRM) of a
local organization, Engro Corporation. Human resource refers to the individuals within the
respectful organization who are making a valuable contribution to management system goal
attainment. In the following report is the introduction of the corporation; followed by the
mission, vision and objectives of the organization. Moreover, as the title of the report suggests,
how the HR department of Engro Corporation works in terms of recruitment, selection, training
and performance appraisal will also be highlighted.

WHAT IS ENGRO CORPORATION


Engro Corporation (formerly known as Esso Fertilizers) is a Pakistani multinational corporation
based in Karachi with subsidiaries involved in production of fertilizers, foods, chemicals, energy
and petrochemicals. Its major subsidiaries include Engro Fertilizers - which is one of the largest
fertilizer manufacturers of the world, Engro Foods which manufactures processes and markets
dairy products, frozen desserts, Faizan steels and fruit drinks including the ice cream brand of
OMORÉ. Other major subsidiaries include Sindh Engro Coal Mining Company, Engro
Powergen Limited and Engro Polymer & Chemicals Limited.
Engro Corporation was found in 1957. However Engro Company was established in 2003, after
which in 2005 Engro decided to expand their business more by moving into the food business by
establishing Engro Foods Limited.
In 2007, Engro Asahi polymer sold its share in joint venture with Mitsubishi and the company
was renamed as Engro Polymer and Chemicals Limited.
In 2010, considering the huge diversification of Engro Chemical Pakistan Limited, it was
decided to rename the company as Engro Corporation as the holding company.
ENGRO CORPORATION’s MISSION
Engro Corporation moves along the following mission statement, “Build branded food business
to improve quality of life by offering tasty, affordable and high nutritional products to our
consumers while maximizing stakeholder’s value.”
Engro Corporation has the following mission:
1. To provide and unsegregated material solutions that are value-adding, sustainable and
cost-effective.
2. To be a leader in the promotion of Green, with a “knowledge-based and continuous
learning” culture and a spirit of innovation, Engro work constantly with their partners to
create industry adoption of new environmentally-friendly products, thus determining new
possibilities.
3. Merged into the way they do business with their partners and customers; is their belief in
Harmony, Trust, Excellence, and Win-Win.
Everything that happens at Engro is driven by some hidden core values. These principles are
fundamental part of their business. These principles unite all of the members of Engro to move
towards a common vision of providing only the best business solutions to help our customers
progress. This is the Engro way.
These key principles include:

HARMONY – A balanced approach in everything we do

EXCELLENCE – We go extra mile to achieve breakthrough in innovation

TRUST – We uphold integrity in all that we do

WIN-WIN – We work together to achieve mutually beneficial goals


ENGRO CORPORATION’s VISSION
Engro Corporation moves along the following vision statement, “Aim at transforming the
company within the five years into first national food industry giant, then into regional force and
finally into a global player.”
Engro Corporation has the following vision:
1. To be the preferred essential partner of innovative and Sustainable material solutions.
2. Engro is globally-oriented green materials solution provider, with exclusive expertise and
insights relating to product innovation. Engro strives for positive influence and impact
through our strategic partnerships, own technological research and Green Initiatives.
3. “Building Sustainability” reflects their commitment to play an important part in building
new urban lifestyle for the betterment of future generations in mind, endorsing the
preservation of the Earth’s vital resources by promoting greater use of eco-friendly
products via innovative solutions.

ENGRO CORPORATION’s OBJECTIVES


The objectives of Engro Corporation are simple and well designed with the core strategies to
meet the demands and to fulfill the needs of the customers. Following are the main goals :-
To possess leadership among other companies.
To introduce innovative products.
To capture diversified marked and international focus.
To maintain quality and work for continuous improvement.
Candid and open communications.
External & Community Involvement
To focus on individual growth and development.
Enthusiastic pursuit of profit.
To keep satisfied ethics and integrity.
To promote safety, health and pure environment.
To create opportunities of enjoyment and fun.
To promote teamwork and partnership

HRM of ENGRO CORPORATION


The Human Resource department at Engro has the recruitment process to ensure that only the
finest of the human resource is taken on board. Resumes of candidates are documented for
current or future references. Along with carrying out succession plans, the department also
maintains and executes HR policies concerned with employment, retention and superannuation.
Evaluating training needs of employees and fortifying adequate training is also carried out by
highly professional team of Engro.
The company believes that the best way to stay united in the organization is to contribute to it
and to become accepted as the part of the working force of the company. Due to this the
company concentrates on a few essentials:
Place an employee at an initial state which begins with using strengths and coincides with the
matching interests.
Provide an orientation for the employees to better understand the company and its environment.
Introduce the employees to the people development system and give them the feedback of their
performance in the company from the first year.
The internships that are provided at the organization are there to bring the employee up to the
standard of skill and knowledge required shortest possible time.\

HR department follows for essential steps to provide the organization with the best human
resource.
RECRUITMENT PROCESS
The recruitment process is taken very seriously. It is very essential for Engro to select people
with required qualities for the continuity of the success of the organization. The professional
team of HR of Engro consists of expertise of diverse backgrounds.
The objective view of the organization and best practices are taken into consideration during the
recruitment process. Engro’s recruitment methodology is based on examining capabilities. These
capabilities are the behavioral skills and knowledge of the candidate for job success and focus on
the requirements. Thereby, the consistency, accuracy and reliability of the selection process is
maintained.
At Engro the recruitment is done for two different categories of people. First is the Management
Profession and Technician and the second is Non-Management Profession and Technician. There
are seven different divisions of Engro and each has its own HR department.
 IDENTIFICATION OF NEED:
Initially it is checked whether there is a need for new selection. If there is a new position to be
developed then COED checks for that. Or if there is a vacant already existing position due to any
reason then the respective notifies the HR department to publish advertisements for the new
recruitment.
 ADVERTISEMNET:
After the identification of need, the HR department places the advertisement of the vacant or new
job to bring in the resumes. The advertisement consists the job description and job specification.
 JOB DESCRIPTION:
This s the lists of duties and necessary qualification for a particular job. For instance the
advertisement also specifies the number of years of experience needed for the application of the
job.
 JOB SPECIFICATION:
This includes the characteristics, abilities, skills and knowledge required from a person to be
capable of being recruited for the particular job; for instance leadership and teamwork qualities
or command over English Language.
 APPLICATION OF FORM / SUBMISSION OF RSUME
Application forms exist to enable the candidates present a complete picture of their talents,
abilities and ambitions. It’s the first stage of evaluation and the basic criteria of initial
recruitment. Through this the candidates are able to present a resume which makes them seem to
stand out.
 EVALUATION OF RESUME:
After the resumes of the candidates are received, the HR department checks all the resumes of
the applicants. The HR department checks the experience and the qualities of the applicants and
that if they match the job requirements.
 SHORT LISTING:
After the evaluation of the resumes, the HR department selects the candidates who have the
fulfilled the minimum requirement of the job description and the job specification.
SELECTION PROCESS
The selection process is about hiring the individuals who have been recruited. The selection
process is completely dependent on the recruitment process.
 TEST:
The test is conducted by the HR department. In the test the IQ level, English composition and
Logic of the recruited candidates is checked by the Managers. The test is conducted for the
duration of one hour and is checked manually by the HR department.
 INTERVIEW:
The candidates who successfully clear the test and score above the minimum required marks are
then called in for the interviews. The interview by a panel of four people; one executive and
three managers. All the four interviewers should preferably from the same department but
sometimes that is not the case. The purpose of the interview is to check the subjective skills of
the person which are difficult to measure through the aptitude test which include the attitude,
confidence, communication skills and personality. The candidate is marked by the interviewers
on an individual level and then put forward the cumulative marks. These are the marks through
which different candidates are evaluated differently; and then hired respectively.
Along with the test, the candidates are also checked on a personal level as well.
 MEDICAL:
When the respective candidate is selected, the different benefits and pay scale is decided, a
medical test of the candidate is conducted.
 HIRING:
If the candidate clears the medical test, the evaluation is sent to the respective department to
which the job belongs to by the HR department with the contract. If the department agrees upon
it, the candidate is hired.

TRAINING AND DEVELOPMENT PROCESS


Along with carrying out the succession plans of the organization, the HR department also
maintains and implements the HR policies concerning the employees training, retention and
superannuation. Evaluating training needs of employees and ensuring sufficient training is also
carried out by the professional team of HR.
The Engro believes that people grow, learn and develop most efficiently though experience.
Hence, every opportunity is taken into consideration to try to develop an employee through work
related experience. Such development involves an expansion and maturation of abilities or
aptitudes. This is to be based on the knowledge, skills and aspirations of each employee. This
form of development is to carefully understood and supported by the employee or the supervisor
in charge. Employee interaction is encouraged which also serves as an essential tool for effective
communication. The Engro Corporation conducts a range of training programs regarding both
management and technical which are essential on a regular basis to develop skill and knowledge.
Such huge companies like Engro also require assessment of training programs, this is important
as it leads to overall input of the training plans of the company to help them evaluate their full
potential. Different training methods are also introduced in the company for the employees, these
include:
1. Continuous learning
2. Cross training
3. Distance learning
4. Multimedia training
5. Near transfer training
6. On-the-job training (OTJ)
7. Team leader training, etc.
Employees assessing their own training needs are welcomed as are the suggestions for suitable
programs to increase the efficiency of the employees for the success of the organization and the
goal attainment.

PERFORMANCE APPRAISALS
The Company’s Total Payment package is competitively ranged to the best in the industry and is
appropriately balanced with between providing cash compensations and benefits, including
medical and retirement benefits. Appraisals include:
 HIGHER SALARIES:
The salary packages that Engro offers its employees is way higher than the average of the
industry. And that’s the compensation philosophy of the organization – to always keep its
employees above their profile’s market value. So the employee being a expertise or an intern,
he’ll get the highest salaries ever.
 GAIN SHARING:
Along with the highest salaries and exceptional benefits comes the performance based benefits.
The performance measuring criteria is very different. It does not evaluate the employee on the
basis of performance on assigned targets, but on a certain percentage of the top performers
among all of the employees. Only top 50% performers qualify for bonuses.
 BENEFITS:
Quality human resource is valued at Engro. Their employees are creative and passionate to meet
the business challenges with brand new ideas. It offers exceptional benefits to its employees in
terms of medical, financial and recreational. Engro intends to keep their most important
possession – their people, healthy and happy.
 TRAVELLLING AND SUBSISTENCE EXPENSES:
All the expenses of any travelling in the course of their duties of the employees will be taken
care by the organization.
 HOLIDAY:
Each employee is allowed to have a 23 day holiday per year. However for some employees, this
amount of holidays is either too much or not enough. Therefore, employees are given the benefit
of choosing the range of holidays between 15 to 30 days holidays per year. This can have rising
up to maximum of 40 days per year after two years of service to the organization.
 CAR ALLOWANCE:
Car allowances are included in the package considering the position of the employee.
 PENSION AND LIFE INSURANCE:
After three months of services to the organization, the employees are given the option of either
join the company’s group personal pension scheme or take a cash alternatively. At Engro all
employees are given life insurance since Day 1 of their employment.
 PERMENANT HEALTH INSURANCE:
Engro ensures permanent health insurance to its employees from the first day of their
employment.
EXECUTIVE SUMMARY
The following report was conducted on Human Resource Management of Engro Corporation.
The report starts with the introduction of the Engro Corporation. This includes the information of
when the birth of such a huge Corporation took place, how it expanded, how it jumped from
production of one product to another. The report consists of the mission, vision and objectives of
the organization. The missions, vision and objectives of Engro are very different from the other
local organizations of Pakistan as its primary focus is on its employee’s betterment, the success
of its consumers and beneficial for all its stakeholders.
The recruitment criteria of Engro is not very different from other local organizations of Pakistan
however the standards on which the candidate is hired are a lot different and attractive. Once the
candidate is hired and becomes part of the Engro family, he is automatically assured with several
personal and professional benefits which are very different and unparalleled with the average
benefits provided by the organizations in the respective industry. The performance appraisals to
be considered are in themselves very unique and attractive for its employees that motivates them
to work harder and more efficiently to get benefitted by the appraisals.
Engro considers its employees as the most important and treasured possession and asset and
hence provides the best in the whole industry to keep them happy, healthy and satisfied. From
time to time the packages, the appraisal policies are updated to maintain their attractiveness that
they possess in the market and also to keep their employees since time, money and energy all is
invested in the employees to train them for the goal attainment of the employees.

CONCLUSION
Human Resource at Engro believes that better learning is by doing it. Therefore sufficient
arrangements are conducted at the organization to convey training to the staff. It can take the
shape of internal or external training considering the requirement of the target. The employees
are made to do tasks that would enhance their skills and gain experience. Engro Corporation is
one of the very few local organizations that not only benefitted its employees but also the
community it exists in at large. The concept of a big organization includes not only provision of
quality products but also the welfare of the people associated with the organization.
Engro includes great profitability, low employee turnover, high product quality, lower
production cost and rapid acceptance and implementation of strategies.
RECOMMENDATIONS
Firstly, though Engro Corporation is one of the largest local multinational company of Pakistan,
the recruitment criteria should be a little easy. The judging criteria of the candidates should be
designed in a way that each one is able to show off their capabilities in the best possible manner;
because sometimes there is some candidate who is not confident enough to show off his potential
however he might have lots of potential beneficial for the company.
Secondly, the criteria of giving bonuses to its employees: in the organization each employee is
being judged, noticed and being kept a track of. Therefore the methodology of only giving
bonuses to the top 50% of the best performers is a bit unfair with the rest of the employees.
There might be employees who due to some personal issue wasn’t able to perform to his full
caliber or if he isn’t one of the top performers he needs the bonus to fulfil his personal needs.
The idea of giving bonuses to a certain percentage of the top performers can be demotivating for
the other employees.

REFERNCES
https://en.wikipedia.org/wiki/Engro_Corporation
https://www.engro.com/our-company/
https://www.slideshare.net/Elijan877/engro-foods
https://engro-global.com/vision-mission-and-core-values/
https://www.slideshare.net/Alishah28/human-resources-management-of-engro-foods

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