PAK QATAR FAMILY TAKAFUL

SUCCESSION PLANNING
AND MANAGEMENT
REPORT

CLASS: MBA 1.5 Years

SUBMITTED TO:
Dr. Aamir Shamsi

SUBMITTED BY:
Sidra Nadeem
Asfia Fatima
Shanza Jaffar
Rabbia Jamal
Rabia Ummat
Hira Sahar
Faraz Zubairi
Syeda Yusra Batool
 ACKNOWLEDGEMENT

This report has been prepared by great work, research and dedication. It would not have been possible

without the support of many individuals and organization. Therefore we would like to extend our sincere

gratitude to all of them.

First of all we are thankful to ALMIGHTY ALLAH for giving us strength to accomplish this task

successfully. We would also like to thanks PAK QATAR FAMILY TAKAFUL and CEO, Mr. Menhas

for providing us brief information about the Succession Planning and Management in their well esteemed

organization.

I would like to express my generous appreciation to all my group members who provided the responsibility

to complete this report on time. The report cannot be completed without their efforts and co-operation.

Last but not least, many thanks to our kind teacher of the course Recruitment and Selection, Sir Shamsi,

and Ma’am Maham who have invested their full effort in guiding us to achieve the goals.
 TABLE OF CONTENTS

1. Abstract 1

2. Introduction 2

3. Vision Statement 3

4. Mission Statement 3

5. Core Values 3

6. The Need for Succession Planning 4

7. Influential Aspect of SP&M 4

8. Practicing Succession Planning 5

9. The Route to Succession Planning at PQT 5-6

10. Goals and Objectives of SP&M 7

11. Requirements Considered for Key Positions 7-8

12. Assessment of Job Performance for SP&M 8

13. Ensuring Leadership Continuity 8

14. Employee Recognition 9

15. Hiring Practices for Top Level Positions 9-10

16. Criteria for Choosing Successor 10

17. Employee Turnover Rate 10-11

18. Employees’ Views about Succession Planning 11-12

19. Improvement in Succession Planning System 12

20. Questionnaire Used in Interview 13

 ABSTRACT

Pak Qatar Family Takaful is a Qatar Based dedicated and pioneer Takaful Company operating in Pakistan

since 2007. The company has an independent Sharia’s Advisory Board Chaired by the one of the most

renowned Sharia’s scholar Mufti Taqi Usmani. The Sharia’s Board is responsible to certify all products

and operations for Sharia’s compliance.

This report includes all the aspects related to succession planning and management system of Pak Qatar

Family Takaful. The succession planning and management policies and practices of the company had been

established back in 2007 when the promoters of the organization developed the strategies and policies for

the company. The procedure of succession planning is followed in three phases i.e. analysis, development

and transition. The goals and objectives for succession planning are set according to the need of

organization and they are followed step by step to achieve the overall objectives of organization.

Candidates are given trainings a/c to their levels and future job works and of their leadership program to

ensure leadership continuity in the organization. In Pak Qatar, they prefer to conduct internal recruitment

first and turn to external recruitment only if internal efforts are unsuccessful. Therefore, when company

wants to fill a top level position, it goes for internal hiring but if the desired and suitable candidate is not

available within the organization then the company goes for external hiring as well. Employees are

explained that succession planning is for the continuous improvement and not only for the employer or

organization benefit due to which everyone takes part in succession planning activity and the company

ensures that potential successors are always available.

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INTRODUCTION:

Pak Qatar Family Takaful is a Qatar Based dedicated and pioneer Takaful Company operating

in Pakistan since 2007. The company has an independent Sharia’s Advisory Board Chaired by

the one of the most renowned Sharia’s scholar Mufti Taqi Usmani. The Sharia’s Board is

responsible to certify all products and operations for Sharia’s compliance.

The company’s is supported by some of the strongest financial institutions in the state of Qatar

with a paid capital of Rs1.2Bn. The company operates in more than 60 cities with over 70

branches and serving more than 600,000 customers across the country.

Takaful is a sharia’s compliant alternative to conventional insurance. Family Takaful means an

alternative Islamic Version to Life Insurance.

Takaful is community-pooling system based on the principle of brotherhood and mutual help

wherein, participants contribute in a fund to help those who need it most in times of financial

difficulties.

Pak-Qatar General Takaful Limited is committed to paving the way for all Shari’ah-compliant

Takaful and conventional insurance companies in Pakistan.

Pak Qatar Takaful has made it a policy to help our employees achieving their potential in all

walks of life, as we understand that well-rounded individuals lead fulfilling lives, which

translates into alignment with our corporate ideology. Our track record is a testament to the

fact that we are on track to reaching new milestones in the near future, and we are constantly

on the lookout for any avenues for improvement in our business processes that will allow us

repay the faith and trust of the customers who have made us into an icon in the national

industry.

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VISION STATEMENT:

Providing financial protection through Takaful, to everyone.

MISSION STATEMENT:

 Promote Takaful amongst the masses, encompassing education and awareness, and

present an image that is consistent with our ideological values.

 Adhere to best ethical practices in all aspects of our operations, while abiding by the

Shariah and the law of the land.

 Empower our employees by inspiring, guiding, enabling, and supporting them.

 Ensure our support to the community and the environment with excellence.

 Ensure customer satisfaction by offering quality products and services driven by their

needs.

 Ensure optimum returns to the shareholders.

CORE VALUE:

Doing things in a manner that in available resources cannot be done better.

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THE NEED FOR SUCCESSION PLANNING:

In Pakistan, when you are about to establish an organization that works on an insurance centric

organization one have to obtain and apply for a license to operate, organizations are obliged to

develop the organizational policies and procedure on which they are going to operate before

applying for the license. Back in 2007 when Pak Qatar Takaful was in process of establishment,

the promoters of the organization developed all of the strategies and procedures, succession

planning was also a key concern for the promoters so the policies regarding succession

planning were made at that time. However the policy has been through refinement and

excellence over the period of time.

INFLUENTIAL ASPECT OF SP&M AT PAK QATAR TAKAFUL:

Pakistan has been a developing and adoptive market in terms of HRM practices. Investors and

organization leadership in Pakistan have begun to realize the impact of an empowered HR

function and have begun to seek channels to bring HR to a strategic platform in order to drive

better value from talent and gain edge in market (Kazmi, KPMG). In 2007, when PQT was in

development phase, market surveys were conducted regarding the aspects of the organization

because Takaful product was new to market. The strategies and policies made were based on

these surveys. One of the survey was regarding HR scope, talent acquisition and retention.

PQT was concerned about a major issue, PQT was going to hire people from insurance industry

and in Pakistan the insurance industry has a high employee turnover rate. They were going to

train the people regarding Takaful but in a view of turnover rate, it was a risky investment. As

expected by the higher management of PQT, competitors entered the new market and started

recruiting people on salaries, four to five times higher than what PQT was paying. This was

the major influence for PQT to develop such succession planning policies and system to averse

the risk associated.

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PRACTICING SUCCESSION PLANNING:

One cannot plan for disaster but one can plan for leadership change. It is one of the conceptual

though behind succession planning. It of utmost in an industry where employee turnover ratio

is higher. Planning for leadership change is so important because it requires a transfer of

knowledge skills and abilities required to sail the organization through crest and troughs of the

market. While operating in an insurance industry, organizations needs to be more conscious

regarding succession planning because of high employee turnover rate. It was a major concern

for PQT to develop a system of policies and procedures for succession planning which is high

effective and efficient.

THE ROUTE TO SUCCESSION PLANNING AT PQT:

The procedure followed by PQT for succession planning and management can be divided into

different phases as follows:

1. ANALYSIS:

It is important to make an understanding of the most significant challenges the organization

and industry are going to face in next four to six years in accordance with the employees

specifically higher management. Here at PQT, an employee retires at the age of sixty who may

be at higher level position. Organization may fire any manager or a manger is willing to move

to a new organization. These are some of the key challenges which are analyzed in order to

plan for successors. As PQT holds out a product which is unique in nature, the training is of

utmost importance and requires time.

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2. DEVELOPMENT:

Practicing development in candidates is different for internal and external. Here at PQT, a

successor may be an external or internal candidate. However internal candidates are preferred.

Depending upon the nature of position that has to be succeeded, tenure of development is

decided. A position may be technical in nature requiring some technical skills as well. A

position may only require developing traits related to the hierarchal management level.

For internal potential candidate a time is not specified for training whereas if there is not a

potential candidate then the organization goes for external candidate. In case of external

candidate, if position is technical in nature, HRM ensures to recruit a candidate at least one and

a half year or two years before the actual transition of position to develop the candidate

accordingly. IF the position is not technical in nature then, the time period is shortened to one

year or six months to ensure significant development.

3. TRANSITION:

As in case of higher management positions, PQT performs transition slowly and gradually

evaluating performance at every level to ensure right candidate is chosen for the position. For

instance, transition for CEO succession at PQT in case of an external candidate follows giving

firstly, the responsibility of an entire department. The progress of the department is therefore

evaluated hence implying the efforts of HOD. If the progress is satisfactory then the

responsibilities are increased by handing over a general management of number of department

after which a candidate is actually considered to be a potential successor of CEO. This the

transition phase of succession planning at PQT.

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GOALS AND OBJECTIVES FOR SP&M AT PAK QATAR:

In PQT, goals and objectives for succession planning and management are pre-defined. Mr.

Menhas, the CEO of Pak Qatar, explain this by giving his own example. He said that before

Pak Qatar he was working in some other company when Pak Qatar realized that it need a person

like him then first they hired him as a Deputy General Manager. In first phase, they give him

some responsibilities of various departments like sales department, marketing department etc.

in which he was already expert. With these responsibilities, they also gave him some of agency

operations, not the all organization operations. For 3 to 4 month they analyzed his performance

and then they give him the responsibilities of overall administration of the company.

Succession planning is step by step process, after some time they gave hi, I.T department and

then finally, after the training of 2 to 3 years they made him the head of the company.

Similarly, in Pak Qatar objectives for succession planning are pre described and according to

those objectives they develop their employees. It is a critical task and they do this thing when

they know that the senior person is going to be retired or leaving the company.

So, basically the goals and objectives are set according to the need of organization and they are

followed step by step to achieve the overall objectives of organization.

REQUIREMENTS CONSIDERED FOR KEY POSITIONS:

In Pak Qatar first they do job analysis in which job description and job specification is

described. Job specification is related to the KSA’S that what type of knowledge, skills and

abilities are required. Job analysis is a very detailed process in which education, experience

and skills all things are mentioned. There are two major things that are required for higher

position in PQT. One is related to the culture and the second is related to the technical skills.

First they analyze the person who is applying that this person is fit for the culture of the

organization or not because Pak Qatar is based on the sharia principles, so they check either

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the person can perform in their culture or not. For this purpose, Pak Qatar has established some

core values which includes honesty, respect for each other and the person should be trainable.

Second screening is related to the technical skills, technical experience and technical expertise

which are different for every department.

ASSESMENT OF JOB PERFORMANCE FOR SP&M:

Pak Qatar assess current job performance for succession planning and management purposes,

as succession planning means training internal employees for future required jobs so that in

time of need they have their own employees as successors who already know the culture of the

organization. First they see a candidate’s current skills and future required skills and

competencies and identify their strengths and weaknesses then they realize the gap between

them and prepare and train their employees accordingly. For that purpose they use different

techniques like job rotation, etc. to train them for future required positions.

ENSURING LEADERSHIP CONTINUITY:

Pak Qatar have a systematic process of hiring in which leadership skill is the basic quality a

candidate must have. After hiring candidates they give them trainings a/c to their levels and

future job works and of their leadership program to ensure leadership continuity in their

organization. The training given is 90% internal and 10% external. It is a continuous and step

by step process. Also, a/c to sharia they begin every Friday with a sharia session with all

employees in which they have different things to focus. For example, even the diaries and

calendars given to employees contain a development message (of sharia and basic both).

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EMPLOYEE RECOGNITION:

By making the workplace environment more enticing the companies are responding to the new

competitive reality. Pak Qatar Family Takaful offers amazing perks for employees, they

emphasize the uniqueness of the company culture, and organize fun retreats (taking some

employees out of the country every year with their well-known off shoring expenditure).

To keep the employees satisfied these are all great ways, but for them to be even more effective

and efficient, Pak Qatar have an overall strategy to make their employees feel special, valued,

and supported in their work and personal grooming. Their leaders are systematic and proactive

in recognizing their employees’ needs, achievement, and they are public in their respect and

appreciation for their best employees.

Their employees are more eager to accelerate their development, are more engaged, more

inspired to improve to innovate their output, and are very much excited to share their energy

and optimism when they are interacting with their customers, colleagues, and their network.

By cultivating a better culture and environment they have accelerated their company’s growth,

and not to mention by making a highly positive impression with their employees as well as

potential customers. A company has a competitive talent advantage when it does employee

motivation skillfully that goes up and beyond the traditional monetary rewards, office perks,

bonuses, and equities. In fact, in the war for talent it could just be the winning edge.

HIRING PRACTICES FOR TOP LEVEL POSITIONS IN PQT:

At the Pak Qatar effective recruitment is a vital process that is considered as an essential

ingredient towards achieving organizational goals. As talented and well-motivated people act

as powerful fuel for gaining success, they must be attracted and retained carefully. While filling

up vacancies the company carries out both types of recruitment i.e. internal recruitment and

external recruitment.

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In Pak Qatar, they prefer to conduct internal recruitment first and turn to external recruitment

only if internal efforts are unsuccessful. Therefore, when company wants to fill a top level

position, it goes for internal hiring but if the desired and suitable candidate is not available

within the organization then the company goes for external hiring as well.

CRITERIA FOR CHOOSING SUCCESSOR:

Usually one person from each department is eligible and available as a successor for a key

position at PQT. But sometimes, if there are more than one successors available, then they are

judged on the basis of their leadership skills. If two employees have same excellent knowledge

of technical skills, then assessment about their leadership skills is done and the one who has

more leadership ability is selected as a successor. The attitude, behavior, decision making,

teamwork, performance and how the person take work from other people are the main things

focused for leadership quality. If the person lacks in only one or two of these things then it is

analyzed that in how much time the person could be trained to overcome his lacking. The

person is not rejected on the basis of his lacking, instead he is trained and considered for the

position.

EMPLOYEE TURNOVER RATE:

In Pak Qatar, there are two sort of employees. One is front office and second is back office.

 Front office turnover rate: Front office includes the sales employees and the front

office turnover rate is high. The CEO of Pak Qatar states that around 20% of their

employee leaves the organization annually.

 Back office turnover rate: In back office, the turnover rate is very low. The CEO of

Pak Qatar states that, they retain their employee around 95% in back office. They retain

their employees with good benefits and compensation. And the best thing about Pak

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 Qatar is they have transparency in their appraisal system and good opportunities of

promotions in future.

EMPLOYEES’ VIEWS ABOUT SUCCESSION PLANNING AT PQT:

Sometimes employee are not satisfied with the SP&M people think that these efforts causes

job uncertainties. PQT arranges sessions to explain them concept of succession planning and

make them realize that it is a very positive activity. Employees are explained that it is for the

continuous improvement and not only for the employer or organization benefit.

Generally, in Pakistan’s culture people have a mindset that if someone under them is capable

of working just like them or have acquired the same competencies, skills and knowledge which

they have, then their worth will become less. They think that if a person under him is focused

then he can take over his position. In PQT, employees on the key positions are explained the

idea that if they have not developed employees working under them, then their job life will

become difficult. If they want to go on leave, they will not be able to do so because no one will

be available to work in their place.

A positive message is given to initiate the succession planning and development of employees

that everyone has a right to go for a month’s leave to relax and enjoy. If there will be no one to

work in your place then how will you go for leave? That is why at least there should be one

successor available so that work is not disturbed if an employee takes leaves.

Apart from this, one more thing is explained to them to make the employee understand the need

of a successor. Each employee has objectives to achieve annually which are considered at the

time of appraisal and promotion. If the employee has not developed a successor to work in

place of him and he takes leave for any reason, then the objectives will not be accomplished on

time. Due to this reason the grading of employee will be lowered which is their own loss.

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So, the employees get motivated and take part in this succession planning activity. Employees

are mostly satisfied with the succession planning and management system of the organization

not only due to these efforts made by PQT of making them understand the need of succession

planning but also because PQT focuses on the internal hiring first. If the employees are well

developed then they have a good chance of promotion which is the cause of their satisfaction.

IMPROVEMENT IN SUCCESSION PLANNING SYSTEM OF PQT:

The succession planning in PAK QATAR is done proficiently. They first analyse the

performance of expected successor to be, and observe him or her through different job tasks

apart from duties and responsibilities regarding the job of the particular employee.

As the turnover level is high in the front office of Pak Qatar so the turnover level could also be

decreased in the front office by maintaining such policies regarding succession planning that

will help in reducing the turnover of employees.

At first, they must train and develop the internal talent for the position of a successor, design a

plan of development for the internal employees that possess deficiencies, they must form the

talent pool this will help out in searching the best possible employee for the post of a successor.

The organization must study the practices of other organization as well for succession planning

this will support the organization how to make their policies and procedures different from

other organizations that keep the employees motivated and satisfied.

Succession planning is the most important part of any organization because it leads the growth

of organization and productivity so the focus should be at this domain of human resource

management. This will destine towards the fruitful growth and productivity of organization.

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QUESTIONNAIRE USED FOR INTERVIEW:

Q1. Does your company have succession planning and management system? If yes, please explain

the reasons that influenced you to start SP&M and when?

Q2. What are the practices and procedures followed for succession planning in your organization?

Q3. Is there any mission statement that has been established for succession planning and

management in your organization and how is your organization achieving that mission?

Q4. Are there any goals and objectives that have been established for succession planning and

management in your organization? If yes, please highlight some of the goals and objectives.

Q5. Does your organization identify, describe, or clarify the requirements of key positions?

What are the major requirements that are considered?

Q6. Does your organization assess current job performance for succession planning and

management purposes?

Q7. How do you develop leaders and ensure leadership continuity?

Q8. What is the criteria of choosing a successor if more than one employees are eligible for a key

position?

Q9. Are your organizational employees satisfied with the succession planning management system

of your organization?

Q10. Does your company fill the top level position within the organization or you go for the
external hiring for filling top level position?

Q11. What is the turnover rate of employees?

Q12. What are your future plans for improvement in SP&M of your organization?

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REFERENCES:

Company profile and information retrieved from:

https://www.pakqatar.com.pk/family/about-us/vision-mission-core-value/

Interview taken from:

Muhammad Menhas, CEO, Pak QatarTakaful.

Contact No. : +923008580209

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