PROJECT HRM PRATICES

IN ENGRO FOODS

COURSE :- HUMAN RESOURCES AND

MANAGEMENT

GROUP MEMBERS:-

HUMZA RAUF (10436)

UMER ALI (10402)
ARSALAN HUSSAIN (10680)
FAHAD AHMAD (10527)

SUBMITTED TO:-
SIR GHULAM MUHAMMAD
 TABLE OF CONTENT
Acknowledgement
Human resources
Executive Summary

Chapter # 1 Introduction

Company Introduction
Vision
Mission
Objectives and Goals
Competitors
Chapter # 2 Identification of Problems

Problems
Main problems identified

Chapter # 3 Methodology

How to complete the project

How to design the questions

Chapter # 4 Solution of the problems

Solution of the problems
Implementation of the solutions
Financial Aspects

Chapter # 5 Conclusion

Conclusion
 ACKNOWLEDGEMENT
Thanks to Almighty Allah the Beneficent, the Merciful, the Creator, the Sustainer,
the Builder, the Omnipotent, the Omnipresent, the One Who was the first; the
One Who will be the last, for providing ability to complete this humble
contribution with in the stipulated time. All the respects for the greatest educator
and the benefactor of mankind, Holy Prophet Muhammad (PBUH), who advised
all of us to continue getting education from cradle to grave.

We are using this opportunity to express our gratitude to everyone who

supported us throughout the course of the project

“HUMAN RESOURCE MANAGEMENT”

We are thankful for their aspiring guidance, invaluably constructive criticism and
friendly advice during the project work. We are sincerely grateful to them for
sharing their truthful and illuminating views on a number of issues related to the
project.

We would also like to thank our friends and all other colleagues who provided us
with the Facilities being required and conductive conditions for our project.
We also thankful to the HR assistant manager “MALIK ISMAIL” of Engro foods for
sharing their organization information about the HR practices. And after his help
we are able to understand the HR practices and their implementation.

Executive Summary
This is about the marketing of Olper’s from the time when Engro foods came up
with the idea of adding a new product line to the already well-established and
long set of product line to the point that they are still heavily promoting their
product. We start by giving brief history about Olper’s and how it came into
existence.The report at hand provides a useful insight about Engro Pakistan Ltd, a
private fertilizer firm that keep about 22% of market share in the milk food
industry Pakistan. Established in 2005,a 100% owned subsidiary-First investment
of dairy plant processed milk market is growing at approx. 20 % per annum
Olper’s cream, Olwell high calcium low fat (premium brand) plans to expand
product portfolio.

Milk processing capacity increased by 200% to 200 million liters annually, will
become the only company in Pakistan covering the entire milk catchments area.
Already has the second largest child milk collection system in the country
distribution network to double from 58 tons to 119 tons by the end of 2007JV
with global food major in advanced stage of negotiation forces in the external
environment that effect company’s performance are political, economic, social
and technological whereas company specific external forces are major players in
the food industry. Which are ten in number; Nestle being the leader with 41%
market share. Typical packet milk consumers are the children. Therefore, Engro
Foods has a large number of consumers throughout the country.
 Chapter # 1
Introduction

Company Introduction

Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in
2004. Using dairy as a stepping stone to enter into the food business, the
Company has established state-of-the-art processing units in Sukkur and Sahiwal,
along with an ice cream production facility in Sahiwal.

Top quality brands like Olper’s, O lwell, Tarang, Omore and Owsum have been
successfully launched under the helm of Company’s dairy products. To support
these brands and their highest standards of Quality, Engro Foods has invested
heavily in milk processing and milk collection infrastructure. With an acquisition
of Al Safa – a fast growing and established Halal meat brand– Engro Foods is no
venturing into North American market starting from Halal Foods category.
The new organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods
USA, LLC, intend to aggressively grow the business in this market.

With the vision of Elevating Consumer Delight Worldwide, Company’s significant

focus will be towards the global operations in the years to come.

VISSION
EFL dreams to be BIG. We want to be a major player in the food industry which is
also evident in our vision, "Elevating Consumer De light Worldwide ". EFL wants to
challenge the industry norms and surprise whoever has eyes on EFL Innovation.
Engro has team of innovative people that innovates new products and make
continuous improvement in the existing products .Engro always encourages
innovation by their people or from wherever they get anything new .

MISSION
“Our mission is to create wealth by creating new businesses based on company
and country strength in information technology, petrochemicals, infrastructure,
foods and other agriculture sectors”

Objectives and Goals

Engro foods main objectives are:

Supply safe and nutritious food to their consumers.

To ensure employs safety and health.

To satisfy the consumer needs and wants.

To provide profit to the shareholders and increase the market share.

COMPETITORS
NESTLE
The Nestle-Human Resource Policy
Avoid team wasting time and being demotivated
Create a productive, effective team that gets things done.
Compensation & Benefits Compensation is a key part of Nestle total rewards package and
important in firm efforts to attract, motivate and retain a workforce of top performers. Nestlé’s
compensation philosophy is to provide and maintain disciplined compensation programs which
recognize individual performance and value long-term relationships with employees.
Compensation include both direct and indirect.
Nestlé offers a competitive benefits program for real life, allowing employees to tailor their benefits to
meet their health care, personal wellness and financial/retirement needs. Compensation and benefits
includes:

Golden handcuff-for executives o In short term they provide salary where as long term they
have stock options i.e. shares o For sales people they have fixed salary plus bonuses and
allowances.
Nestle also develop tendency i.e. paid for their results Benefits include;
Health and wellness
Paid leave o Sports club and accommodation
Minor son and unmarried daughter

ENGRO POLYMER CHEMICALS

EPCL compensation philosophy is to provide and maintain disciplined
compensation programs which recognize individual performance and value long-
term relationships with employees. Compensation include both direct and
indirect.
 EPCL providing equal benefits to graduate technologist and graduate
engineer on the behalf of experience and performance.
 EPCL promoted at the basis of their experience and performance.
 Health and wellness
 Paid leave o Sports club and accommodation
 Minor son and unmarried daughter

Chapter # 2
IDENTIFICATION OF PROBLEM

As per our team research on Engro foods compensation & benefits there are
many issues in this area of HR in Engro ,no doubt Engro Foods considers its
employees not just as a cost but also as a resource in which the company has
invested from which it expects valuable returns. Pay policies and programs are
one of the most important human resource tools for encouraging desired
employee behaviors. The advantage of paying above the market average is the
ability to attract and retain the top talent available, which can translate into
highly effective and productive work force. The incentive schemes and incentive
objective have been clearly communicated to all individuals and weekly progress
report is also communicated to all concerned but the following problems we
identified as under:

 Unequal opportunity of benefits for graduate Engineers and Graduate

technologist at same designation.
 Late promotions of Graduate technologist.
 Same job description of graduate Engineers and Graduate technologist.
  Medical bills reimbursement lengthy process.
 Casual leaves allotment issue.
Main Problem Identified

The main problem of benefits and promotions of graduate engineers and

graduate technologist is that the job description of both is same working
conditions of the both are same and the promotion and benefits strategy is
different. Graduate technologist cannot be promoted at higher and key position
of company. Graduate technologist hired at the position of Assistant engineer IV /
Supervisor and graduate engineers are appointed at the position of Graduate
trainee engineer for one year training after one year on job training hired at the
position of Engineer IV. The normal period for promotion for both is three years
but graduate engineer promoted at every three but the graduate technologist
promoted after long tenure.

Medical Bills Reimbursement

 The other main problem we identified is the medical bills reimbursement long
process and time consuming practice and bad practice in sense of green
practices due to lot of paper using activities.
 Process of medical bills reimbursement:
 First prepare the excel bill and detail of payment.
 After preparing complete case get initial approval from department head.
 After initial approval of department head send application to doctor for
verification after doctor approval application forwarded to H.R department
after H.R department approval bill will be made and forwarded to accounts
department for payment and payment will be done with the monthly payroll
of employees salary.
Casual Leaves Allotment
The issue of casual leaves allotment in Engro food is due according to the leave
policy of Engro food is that there is no limit for casual leaves in policy but due to
the culture of Engro we are unable avail casual leaves for some casual issues of
personnel life employees avail annual leaves for their casual works in routine.
Employees want the number of casual leaves allot every year with annual leaves.
Because the other competitors of Engro food are using fixed casual leaves policy.
 Chapter # 3
METHODOLOGY
HOW WE COMPLETE THE PROJECT
In this project, we explain the HR function and their implementation

For this purpose we select the company “ENGRO FOODS” as an organization for
knowing there HR practices and how they implement these practices in their
organization. For this we visit the organization and met the HR manager assistant
“MEESAM ABBAS” and ask the questions about their organization HR policies and
their implementation. How they manage or control the practices and how they
implement these policies.
So we explain the practices and there implementation in Engro foods in our
project very briefly.
The main purpose of our project is explaining the complete concept of HRM.
So in our project we tried our best to explain the complete concept of HRM.
After reading the complete project report we will hope that everyone who read
this is able to understand the complete concept of HRM and the HR practices.

HOW TO DESIGN QUESTIOMNAIRE

We design questionnaire on basis of bench mark of the sister company of Engro
Polymers & chemicals which is providing equal basic benefits to all employees
with same job description.

Question # 1
What type of Compensation and benefits providing Engro foods?
Question # 2
Employee’s satisfaction on promotions? .

Question # 3
Leaves policy satisfaction?

Question # 4
Medical Bills Reimbursement process?

Question # 5
Why medical bills Reimbursement process is unsatisfactory?

Chapter # 4
SOLUTION OF THE PROBLEM

Implementation of the Solution

Organizations reimburse employees through wages and salaries, bonuses and
benefits, such as health insurance, vacation instance and pension programmers.
The charisma and dearth of plunder and appreciation is essential to employee
Moral and performance. This is looked subsequent to Human Resource
Management.

Engro Foods: After putting a lot of money in employee’s satisfaction survey,

Engro Foods have realized that job satisfaction is related to the salary, if the salary
is good the person will be satisfied with his job, since company pays good salary
to the employees, its Employees are satisfied, but company conduct surveys time
to time to get to know more about the job satisfaction level of the employees.
All professional working in organization are the master of their field, they know
their work and have guts to impress people with their work. All senior people are
role model for their juniors and special trainings are conducted to minimize gap
between executives and managerial level employees. The casual leaves
guaranteed to the employee’s according to their performance and sick leaves
allow according to company policy.

The Engro company designed a online portal for Reimbursement process the data
of the employee and Scan copy of medical bills, reports, consultation fee or any
other document submitted should contain the date of bill, invoice number of bill,
name of the patient, name of consulting doctor, the bill amount with tax (VAT/
Service tax) and signature of authorized personnel to submitted in the online
portal end in a weak the Reimbursement amount transfer to employee bank
account.

In Part A you have to fill details like:

 Company/ ID

 Name and address of the person insured

 Insurance history

 Details of hospitalization of insured person

 Details of pre and post hospitalization claim

 Claim documents checklist

 Details of bills submitted

Whereas in Part B, hospital will have to fill details like:

 Name and address of the hospital

 Details of the patient admitted (name of patient, date of admission, date of

discharge)

 Details of ailment diagnosed

  Claims documents submitted checklist

 Declaration by the hospital

In past Medical Reimbursement process is not good because employee submit

form to in their department and their department send those documents to HR
Department and the HR Department send those Medical Documents and Medical
Bills to Medical Doctor of the company then Doctor verified the Documents and
Medical Reports and send to HR and then HR send to Finance Department for the
payment in this whole process 50 to 60 days are gone for Reimbursement of the
payment of Medical bills that why Reimbursement process is unsatisfactory

Financial Aspects
The quotation for software for medical bills reimbursement is attached:

Chapter 5
CONCLUSION
Summary
The human capital of an organization represents one of its largest investments.
The objectives of HRM include getting the organization right people, paying and
treating them fairly, and getting them involved in working productively. The
attainment of these objectives necessitates the performance of several functions.

The main HRM systems are:

Compensation and Benifits
Appraisal system
Career system
Training system
Work system
Cultural system
Self-renewal system.
All systems and sub systems of HRM must be incorporated in the organization
while setting the goals and objectives. This will also indicate the purpose and
processes and make HRM more meaningful. Human resource functions are many
and varied and include such things as human resource planning, recruitment,
selecting, training, and canceling employees, compensation management, and
employer-employee relations. In small organizations, most human resource
functions are performed by owners or operating managers. Large organizations
usually have a human resource or personnel department that is responsible for
co-coordinating and directing the human resource functions. However, little
systematic information exists in the area of HRM policies and programmed that
are generally followed in organizations to achieve their corporate goals and
objectives.