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In the Name of ALLAH The most Beneficent, The Merciful Read: In the Name of your Lord Who created: Created Man form A Clot Read: And your lord is the Most Bounteous. Who taught by the pen Taught man that which He did not know

Al-Quran

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DEDICATION

DEDICATED TO GOD WHO IS THE MOST MERCIFUL AND WHO GAVE US MORE THAN WE DESERVE! & TO OUR PARENTS WHO ALWAYS WISHED AND PRAYED FOR OUR HEALTH AND SUCCESS. & TO OUR RESPECTED TEACHER WHO ALWAYS TRY HARD TO MAKE US SUCCESSFUL.

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ACKNOWLEDGEMENT

We bow our heads before ALMIGHTY ALLAH in gratitude, which blessed us with sound health, talented teachers, sympathetic Friends and sufficient opportunity to complete our esteemed Project on Human Resource Management.

It is our privilege and honor to express our deep gratitude and in calculating thanks to Prof. RIAZ AHMAD MIAN and other staff members of Hailey College of Banking & Finance Who gave us an opportunity to benefit from their immense knowledge and experience without which the work described in this project would not have been possible.

We feels pleasure in acknowledging with profound sense of indebtedness, the cooperation and general help of our class fellows during preparation of this project. We submit my earnest thanks to our affectionate parents for their moral boosting, financial and spiritual support during our studies.

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CONTENTS
Page no. Introduction of the Company Company Informations Divisions of Sitara chemicals Board of Directors Mission, Vision & Code of Ethics HR Department Information Functions of the Organization Functions of HR Department Recruitment and Selection Training and Development Compensation Safety Health Employee Services Benefits Salary administration Manpower Planning Industrial Relations Labor Union Communication Systems Terms and Conditions of Employment Strength and Weakness Conclusion Questionnaire 07 12 14 16 17 20 22 26 29 33 37 37 39 40 41 44 45 48 49 41 50 54 55 57

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EXECUTIVE SUMMARY
SITRA CHEMICAL INDUSTRIES LIMITED SCIL was incorporated in 1981 as a public limited company. Sitara Chemical Industries Limited a market leader in Industrial Chemicals, has installed latest process technology to produce high quality products. In order to run and manage such sophisticated plant, they have employed large number of professionals in all fields i.e. Engineering, Marketing, Finance/Accounts, General Management & Administrations. To recruit all such professionals and large amount of employees SCIL has its own hr department which perform the following functions. For recruitment they have effective recruitment process. By job analysis they check the vacant positions in all departments. Advertisement, short listed applications, test, interview are the basic points of selection. After selection training is the basic requirement of the employees. For this purpose hr department has established GHR training center. For professionals they arranged external training programs in reputed institutions. Compensation is the way to motivate the workers. SCIL offers handsome salary and large amount of extra benefit package to all employees like bounces, welfare activates, safety, free medical facility, free accommodation both for bachelors and family etc. The company, besides providing competitive salary package, guarantees good career progressions to its employees. They forecast the needs of employment and use both internal and external resources for manpower planning. SCIL has very strong communication system uses intranet and extranet technology. There is strong labor union which sometimes affects the company policies. Terms and conditions of employment are different for regular contractual and daily basis. All these functions the HR department of SCIL performs very carefully and patiently.

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INTRODUCTION OF THE COMPANY

SITARA CHEMICAL INDUSTRIES LIMITED

ISO 9001:2000 & ISO 14001 Policies ...

Sitara Chemical Industries Limited was incorporated in 1981 and began producing caustic soda in 1985, initially at a rate of 30 metric tons Caustic a day. The plants capacity was gradually increased over years to current level of 545 metric tons a day. In addition, various by-product facilities have been added and expanded from time to time to cope with growing demand. Company entered into Textile Spinning Business in 1995. Its specialty chemicals and export division was established in 2001 and agri chemicals division in 2003. SITARA GROUP OF INDUSTRIES
Sitara Group of Industries is one of the renowned industrial groups of the country. This group started its industrial activity with textile weaving sector in 1956 under leadership of two brothers, Haji Abdul Ghafoor (Late) and Haji Bashir Ahmed. Sitara Group by now is in textile cloth finishing and processing, textile spinning, chlor alkali industries and power plant. Haji Abdul Gafoor (Late) and Haji Bashir Ahmed the present Chairman of the Group, the two creative and courageous men, latter joined by second generation, making a blend of experience and modern business knowledge, managed the business growth and development with assistance of highly qualified team of professionals. Faith in Almighty Allah and in their own abilities & commitment to the cause, untiring efforts and leadership qualities of the family, established the group, which now stands amongst Leading Industrial Groups of the Country, under the Chairmanship of Haji Bashir Ahmed.

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Sitara textile Industries Ltd. A fabric woven with tender care & dyed in the brilliant shades of nature adds elegance and magnificence to this world. ...Sitara Textile is a manufacturer of such fabulous fabrics; fabrics that speak of unparalleled quality & unmatched comfort! Sitara Textile specializes in producing high class fabric products made of superior quality materials & possesses state-of-the-art production facilities in made-ups and fabrics for various consumer needs. The company makes use of the latest technology & equipment to make sure that each product is original in style and shows exquisite craftsmanship. Sitara is a company that believes in originality as character & quality as foundation. The entrepreneurial spirit of the company assiduously seeks constant development, steady progress & outstanding performance. read more Sitara Peroxide Ltd. History of Sitara in Chemical sector started back in 1981 with commissioning of Sitara Chemical Industries Ltd. Since than it is having a market leadership position. Which continue to be strengthened? Sitara Peroxide Limited is another landmark achievement of Sitara Group; never before has hydrogen peroxide been produced on such a large scale in Pakistan. read more Sitara Energy Ltd. The energy limited is limited company incorporated in the year 1991. Started commercial production in October 1995 with installed capacity of 48 Mega Watt (MW). Based on furnace oil. Later on the price of oil increased for Rs.2800 per ton to 35000 per ton in 2006.Which increased the cost of generation not acceptable to the consumer. Management of SITARA ENERGY LTD decided to install 30 MW
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additional generators based on gas. Now SITARA ENERGY LTD is the largest capacity plant with installed capacity of 80MW. read more Sitara Developers (pvt.) Ltd. Sitara Developers (Pvt) Limited is a Sitara Group company with following directors:1.HajiBashirAhmad 2. Mian Muhammad Adrees Principle activity of the company is targeted to deal in business ventures such as housing schemes and business centers.

This report presents the investigated Human Resource Management of SITARA Chemical industries LTD. In the modern age of competition human resource management must be managed efficiently and efficiently. Throughout the report, the proven fundamentals of HRM are emphasized. It will be useful to officers who want to work more effectively with their personnel departments. It will also be useful to human resources professional who must often assume the role of trainer. This report may appears to be a strategic resource that will make the managers job a little easier by demonstrating how to use the tool of effective human resource management.

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SITARA GROUP OF INDUSTRIES Pakistan.

The Group was founded by Haji Abdul Ghafoor (late) and Haji Bashir Ahmad, two brothers who had moved to the Faisalabad area from the Eastern Punjab at the time of Partition in 1947. Today, Haji Bashir Ahmad is the Chairman of Sitara Group, while day-to-day management of individual companies has passed into the hands of the next generation. The group's head office and main business and production facilities are located in and around Faisalabad City in Pakistan. Moving from trading, both brothers established power looms weaving industry in 1956, which later took the shape of table printing and there from moved towards mechanized printing & processing industry. The first Corporate name appeared as Sitara Textile Industries Ltd in the year 1970. Haji Abdul Gafoor (Late) and Haji Bashir Ahmed the present Chairman of the Group, the two creative and courageous men, latter joined by second generation, making a blend of experience and modern business knowledge, managed the business growth and development with assistance of highly qualified team of professionals. Faith in Almighty Allah and in their own abilities & commitment to the cause, untiring efforts and leadership qualities of the family, established the group, which now stands amongst Leading Industrial Groups of the Country, under the Chairmanship of Haji Bashir Ahmed. The group continued expansion and diversification and currently comprises of the following
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UNITS

Sitara Chemical Industries Ltd Sitara Chemical Industries (Textile Div-I) Sitara Chemical Industries (Textile Div-II) Sitara Textile Industries Ltd Sitara developers(Pvt) Ltd Sitara fabrics (Pvt) Ltd Sitara Energy Ltd Yasir Spinning Mills Ltd

CHARITIES

Aziz Fatima Trust Hospital Ghafoor Bashir Children Hospital Aziz Fatima Girls High School

SITARA GROUP OF INDUSTRIES.

PLANTS OF SITARA CHEMICAL INDUSTRIES

I. II. III. IV. V. Sitara Chemical industries Sitara Chemical industries Sitara Chemical industries Sitara Chemical industries Sitara Chemical industries ( Chemical Division) (Textile Division-I) (Textile Division-II) (Agri- Division) (specially chemical)

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COMPANY INFORMATION
Board of Directors
Chairman Chief Executive Directors Haji Bashir ahmad Mr.Muhammad Adress Mr. Javed Iqbql Mr.Tariq Mahmood Mr. Muhammad Anis Mr. Imran Ghafoor Mr. Haseeb Ahmed Mr. Muhammad Khalil

Company Secretary Chief Financial Officer Audit Committee

Chairman Members

MR. Mazhar Ali Khan Mr. Anwar-ul-Haq (FCA)

Mr. Muhammad Anis Haji Bashir Ahmad Mr. Javed Iqbal Head of Internal Audit and Secretary Mr. Zakir Hussain(ACA)

Auditors Legal Advisor

M/S M. Yousaf adil Saleem & Co. Chartered Accountants Mr. Sahibzada Muhammad Arif

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Bankers
Meezan Bank Limited Soneri Bank Ltd. National Bank of Pakistan Allied Bank Ltd United Bank Ltd Bank Alfalah Ltd Dubai Islamic The Bank of Punjab MCB Bank Ltd Standard Chartered Bank Ltd First Habib Bank Modaraba Saudi Pak Industrial and Agriculture Investment co.(Pvt.)Ltd Al-Baraja Islamic Bank B.S.C.(E.C.) Askari Commercial Bank Ltd Faysal Bank Ltd Habib Bank Ltd Dawood Islamic Bank Ltd Bank Islami Pakistan Ltd Royal Bank of Scotland Barclays Bank PLC Pakistan Pak Oman Investment Company Ltd Silk Bank Ltd Summit Bank Ltd Habib Metropolitan Bank Ltd MyBank Ltd Bank Al-Habib Ltd Soneri Bank Ltd

Registered Office

601-602, Business Centre, Mumtaz Hassan Road, Karachi-74000 28/32 K.M,Faisalabad Sheikhupura Road, Faisalabad. Page - 13 -

Factories

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DIVISIONS OF SITARA CHEMICAL LIMITED

Chemical Division Sitara chemical industry limited, a unit of Sitara group founded by Haji Abdul Ghafoor (late) and Haji Bashir Ahmed, was established in 1981. SCIL began producing caustic soda in 1985, initially at a rate of 30 MT per day. The plants production capacity was gradually increased over the years to current level of 400MT per day .SCIL produces caustic soda, liquid chlorine and allied products at a chemical complex, situated at 32Km Faisalabad sheikhupura road, Faisalabad. read more Textile Division Established in 1990 this spinning unit of Sitara Group is engaged in the production of top quality Polyester / Cotton (PC) and Polyester / Viscose (PV) having daily production capacity of 22080 Spindles (45,000 Lbs Approx.).

Agri Division Launching ceremony of the Division for commercial operations was held on 19th of February 2003. Apart from a large number of farmers and prospective dealers, senior officials from Ayub Agriculture Research Institute, NIAB Faisalabad, Agri-Extension Services, various sugar mills and NFC Research Institute honored the occasion.

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Gases Division Sitara Chemicals is the largest choler alkali complex on national basis. Besides manufacturing Caustic Soda and various allied chemicals, the company has been able to set up independent plants of some more gases i.e. 01. Oxygen (O2) 02.Nitrogen (N2) 03.Carbon Dioxide (CO2) 04.Nitrous Oxide (N2O) in the same premises, during last one and half year. read more Specialty Division We aim to be the leading service-driven company in the specialty chemicals industry, for national & International markets Our commitment is to contribute to the success of our customers. To combine technology and innovations with superior application skills for the success of customers operations

Distinctions of Sitara Chemical Industries Limited:

SCIL was chosen for the International Europe award for quality 1993. Winner of Top 25 Companies Corporate Excellence Award by Karachi Stock Exchange twice (The most recent award for year 2000, has been given on 29th December 2001) Winner of Corporate of Corporate Excellence Award of Management Association of Pakistan for year 2000. Sitara Chemicals Plant stands in top 10 plants of the world, amongst all the plants in world based on Denora (ITALY) technology. Launched First interest free financial instruments (MTFC, s) SCIL IS THE FIRST AND ONLY ORGANIZATION IN PAKISTAN TO INTRODUCE MERCURY FREE CAUSTIC SODA Having Certification of ISO 9002 Set to have certification of ISO 14001 The largest Caustic Soda plant in the country
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Mr.Muhammad Addrees Chief Executive Officers

Mr. Haseeb Ahmed

Mr. Javed Iqbal

Mr.Imran Ghafoor Haji Bashir Ahmad Chairman

Mr.Muhammad Anis

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MISSION, VISION AND CODE OF ETHICS AND BUSINESS PRACTICE

MISSION
Our commitment is to contribute to the success of our customers. To combine technology and innovations with superior application skills for the success of customers operations

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VISION
Strive to develop and employ innovative technological solutions to add value to business with progressive and proactive approach.

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CODE OF ETHICS AND BISINESS PRACTICE

We believe in stimulating and challenging team oriented work environment that encourages, develops and rewards excellence and diligently serve communities, maintaining high standards of moral and ethical values

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HRM department at SCIL consist of very qualified professional persons.

HR DEPARTMENT INFORMATION
Mr. Ejaz Ahmad
(Chief executive Personnel)

Mr. Muhammad Afzal Bukhari

(Manager Personnel)

Mr. Farooq Ahmad

(Assistant manager)

Mr. Muhammad Nawaz Chatha

(HR officer)

Mr. Asif Mahmood Anjum

(HR officer)

Mr. Inam Khaliq

(HR officer)

Mr. Farrukh Shahzad

(Senior clerk)

Mr. Umar Bashir

(Junior clerk)

Mr. Haseeb Ul Rehman

(Management trainee)

Mr. Muhammad Shahid

(Intern ship trainee)
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HUMAN RESOURCE MANAGEMENT (HRM)

HRM is the process of recruiting, training, appraising, compensating employees and attending to their labor relations, health, safety and fairness concerns. Personnel are the key department in any organization, so in the case with SITARA Chemicals Industries LTD Faisalabad Personnel department has to care all the important activities. It is engaged in the process of hiring, firing, training, development and all other related activities are carried out. Human resource department is also engaged in process of designing and evaluating the jobs and determining a pay structure for the jobs.

PURPOSE
The main objective of this project is to analyze a HRM department of a limited company from various aspects. Discuss the strengths weakness of its policies. a) b) c) d) e) f) g) h) i) recruitment and selection Training and development Employee services, safety, health and welfare Manpower planning Salary administration Industrial relation Systems of communication Negotiating with union Terms and conditions of employment, etc.

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FUNCTIONS OF THE ORGANIZATION

Sitara Chemical Industries Ltd. is one of the major entity of Sitara Group of Companies. The company was incorporated in 1981 and its 1st Choler Alkali Plant (Mercury technology based) started commercial production in 1985. The plant at that time had a daily liquid caustic soda production capacity of 30 Million Tons. With the growing domestic demand and increasing market share, production capacity was progressively expanded over successive years. Production capacity of liquid caustic now stands at 460 Metric tons/day comprising of membrane grade caustic of the latest technology version worldwide.

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PRODUCTS

Annual Operating Production capacity of products in the Companys Chemicals Complex currently are:
PRODUCTS Caustic Liquid, Solid & Flakes Sodium Hypochlorite Bleaching Powder Ammonium Chloride Hydrochloric Acid Chlorine Gas Chlorine Gas (Liquefied) Ferric Chloride Nickel Chloride Calcium Chloride Magnesium Chloride Hydrated Lime PRODUCTION CAPACITY (M.TONS/YEAR) 129,500 36,500 4,500 3,000 90,000 116,500 8,000 2,000 165 3,000 1,000 1,000

NEW DEVELOPMENTS (As Per Requirements):

Zinc Chloride
High Strength Hypochlorite (HSH) Tri Sodium Phosphate Poly Aluminum Chloride Tri Chlro Cyanic Acid Ferric Sulphate

Production facilities are located at 32 km Faisalabad Sheikhupura Road. Company also own and operate two textile Spinning Units of 37,128 Spindles and 432 rooters, located near the Chemicals Complex.

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QUALITY, HEALTH & SAFETY ENVIRONMENT ASSURANCE

The Quality Policy (ISO 9001:2000) is spelled out as: Sitara Chemical Industries Ltd. is committed to remain alert and advance to continuously grow as a Quality Symbol for its products and in meeting industrial and consumer requirements, through training, team work, and procedures, on time, every time.

The Environmental Policy (ISO 14001) is spelled out as: Sitara Chemical Industries Ltd. is committed to continual improvement of its Environmental Management System ( EMS ) by adoption of appropriate pollution prevention measures and complying with all relevant environmental legislation / regulations through training, teamwork and procedures as implemented from time to time.

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HUMAN RESOURCE MANAGEMENT.

The policies and practice involved in the carrying out the people or resource aspects of a management position, including recruiting, screening, training, rewarding and appraising.

WHY HUMAN RESOURCE MANAGEMENT IS IMPORTANT.

Our people are our most important assets Many organizations are using this phrase or something close to it, to acknowledge the important role that employee play in an organization. Achieving completive success through people requires a fundamental change in how managers think about their employees and how the view the work relationship. It involves working with and through people and seeing them as partners not just as costs to be minimized or avoided. In addition to their potential importance as part of organization strategy and contribution to competitive advantage, an organizations HRM have been found to have a significant impact on organizations performance. One study reported that significantly improving an organizations HRM practices could increase its market value by as much as 30 percent. The term used to describe these practices that lead to such results is high performance work practices. High performance work p[practice can lead to both high individual and high organizational performance.

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FUNCTI0NS OF PERSONNEL DEPARTMENT (HRM)

Sitara Chemical Industries Limited a market leader in Industrial Chemicals, has installed latest process technology to produce high quality products. In order to run and manage such sophisticated plant, we have employed large number of professionals in all fields i.e. Engineering, Marketing, Finance/Accounts, General Management &Administrations. The company provides excellent working conditions, conducive to career building and development of managerial technical Skills in competitive and professional environment. There are over one thousand dedicated and highly qualified employees in all categories which include senior Management, Middle Management, Technical Manpower and allied contractors labor workforce. The main functions of this department are given below

FUNCTIONAL OBJECTIVE.
The primary role of personnel department is to assist management in the formulation, implementation and administration of all personnel policies and procedures and develop strategies for utilization of manpower in well organized and economical manner.

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MAJOR ROLES AND TASK.

To assess future manpower requirements and evaluate training needs of employees and organize internal and external courses for the staff/workers. To assess implement companys performance appraisal and promotion system. To maintain a system of attendance/absence, leave and service records and prepare salary bills of workers. To negotiate union management agreement and keep cordial relations with CBA union. To develop and maintain cordial internal employees management to ensure peaceful atmosphere in the factory. To maintain cordial relations/ interactions with concerned Government Departments.

DIVISION OF PERSONNEL DEPARTMENT

Personnel department is divided into four portions

a) b) c) d)

Time office Salary/wages section Contribution &dealing with different agencies Training and development division

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1)

TIME OFFICE
Time office performs the following functions. 24 hours functioning Attendance sheet overstay list time keeping leave record

2) SALARY/WAGES SECTION
Salary bills of workers all categories are prepared at personnel office under this section. After the selection of candidates the basic pay is also decided under this section of personnel department.

3)

DEALING WITH DIFFERENT AGENCIES

Monthly contribution of EOBI, Social security, Education CBA Union are calculated and submitted to accounts department as per defined procedure.

4)

TRAINING AND DEVELOPMENT DIVISION

The company understands the importance of training and is totally alive to the training aspects to enhance the skills and capabilities of its employees. A fully equipped HRD center has been established at SCIL to conduct regular in-house courses and training sessions. Training and development of new selected candidates is performed at personnel department under this section.
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RECRUITMENT AND SELECTION

RECRUITMENT Def. The process of locating, identifying and attracting capable applicants.

SELECTION
Def. The process of screening job applicants to ensure that most appropriate candidates are hired. The recruitment and selection process at SCIL consists of following steps.

I. PAPER WORK VACANT POSITION To find out vacant positions in the company job analysis is performed in each department. First try to fill the vacant positions by internal resources if candidates are not available then external resources are used.

II.

PUBLISHING OF ADVERTISEMENT Advertisement for job opportunities are published in two news papers on due date. The two news papers are DAWN JUNG

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III.

RECEIVING OF APPLICATIONS Applications are received through different mediums. Such as Email/fax Post mail Referred by CEO/Employees

IV.

SCREENING APPLICATION & RESUME

Applications are categorized into different categories on the basis of qualifications and experience. Then these applications send to the concerned department. Personnel department check the short listed and rejected applications. Applications are categorized as Related qualification and experience Higher qualification and experience Related qualification without experience (fresh) Miscellaneous applications

V.

CALL FOR INTERVIEW & TEST

HRM Department conduct a panel interview for the selection of candidates on due date with the concern department. The panel consists of executives and professional officers. Formal test and interview are held for job positions. For selected candidates call letter are send to join the company.
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VI.

REFRENCES

At least two references should provide by each candidate. The most suitable references are current employer and second last employees of the company. For fresh candidates references should be checked from previous academic institutions.

VII.

ARRIVAL OF SELECTED CANDIDATES FOR JOINING

The selected candidates should provide the following documents at the time of joining. Original academic certificates Medical test (HIV B&C) Fill the personal bio data form Write the joining report Fill the orientation form

VIII.

ORIENTATION PROGRAM Introduction of a new employee to his or her job and the organization is called orientation.

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Two types of orientation Work unit orientation Organization orientation Work unit orientation familiarized the employees with the goals of work units and includes his or her introduction to new co- workers.

Organization orientations inform the new employees about organizations objectives history, philosophy, procedure, and rules.

he

There is one week orientation program for all candidates of the company by personnel department. Each candidate works for one day in each department and get information about its functions, objectives, history and procedures. This includes relevant human resource policies and benefits such as work hour, pay procedure, overtime requirements, and other benefits. In addition a tour of the organizations work facilities is often part of the organization orientation. The report of completion of orientation program is given by the employee from all the departments to the personnel department.

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TRAINING AND DEVELOPMENT

TRAINING
As job demand changes employee skills have to be altered and updated .managers of source are responsible for deciding what type of training employees need, when they need it and what form that training should take. Employee skills can be grouped into three categories: Technical Interpersonal Problem solving Most employee training activities seek to modify an employees skills in one or more of these areas. SITARA chemical industries have the following training programs.

a) HRD TRAINING CENTRE

The personnel department of SCIL provides big opportunities for trainee candidates at HRD training centre. HRD training centre consists of large number of professionals in all fields. Company provides excellent working conditions conductive to career building etc skills in competitive and professionals environment. HRD provide more than 1000 professionals in all fields to the company.
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b) INTERNAL/EXTERNAL TRAINING
There are two methods of training On-the- job/internal training Off-the-job/external training SCIL uses both internal as well as external resources for the training of employees. SCIL starts yearly training program in the month of January/February for management and technical work force. External training is specially used for the training of technical and professional employees such as engineers and management officers. For professional training candidates are send to external big institutions. Training programs are checked by external audit team of ISO9001 2000. Training is on year and weekly basis for technical staff.

c) APPRENTICE SHIP TRAINING

It is always difficult to recruit technical manpower for the Chemical Industry, being typical in nature. In order to address this issue in a professional manner SCIL has introduced Apprenticeship Training program. Personnel Department is liaison with directorate of apprentice ship. It enrolls the trainee such as plant operators, lab assistant, trainee fitter and other technical trades. Basic qualification of trainee is F.sc/Metric with science. Training duration is 2-3 years and age limited is 18-22 years. More than 25% employees of the company are from apprentice ship training. It has three categories. Diploma holder (chemical, electrical, mechanical ) F.sc.(trainee lab analyst, trainee plant operator) Metric(Science) (trainee fitter, trainee plant operator)
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d) TRAINING NEED ASSESMENT

The company understands the importance of training and is totally alive to the training aspects to enhance the skills and capabilities of its employees. A fully equipped HRD center has been established at SCIL to conduct regular in-house courses and training sessions. Sometime these sessions are conducted by SCIL qualified staff and at times experts from outside Institutions are invited to impart training to employees of various trades A fully equipped HRD centre has been established at SCIL to conduct regular in house courses and training sessions For quality education and training employees are send to good institutions like PIMS, SEMEDA, LUMS, and Employer Federation of Pakistan for external courses. Personnel Department conducts a two hours lecture each day during training at HRD Centre. Each department gives lecture to the trainee candidates. HRD Centre at SCIL conducts test after training and lecture.

e)

INDUCTION OF TRAINEE ENGINEERS & MANAGEMENT TRAINEE.

Sitara Industries, play an important roll in the professional growth of the fresh Engineers and MBAs/ Master Degree Holders. We induct them as Management Trainees for a period of one year and during the training period offer them reasonable stipend . On successful completion of training period, we offer them Jobs with handsome Salary package.

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f)

INTERNSHIP TRAINING FOR STUDENTS

Various professional Universities / Colleges are approached by the Company on yearly basis in order to provide internship training to those students who are in the last leg of their studies. The students are given 6-8 weeks on-job training on the Plant. The students are provided free boarding / lodging facilities in addition to monthly stipend to dispense with their day to day expenditures.

g)

COMPUTER LITERACY PROGRAM

SCIL is committed and determined to promote computer awareness to all its employees. Chief executive of SCIL has taken special interest and directed to launch computer literacy program at grass root level for all employees. There are two computer labs. Company offers 3 months course duration in the evening. All participants awarded certificate by SCIL.

CAREER PROGRESSION
The company, besides providing competitive salary package, guarantees good career progressions to its employees. Due attention is given to Succession plans to fill up slots required at the time of need. The employees are made aware of their career progressions profile right at the time of induction.

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COMPENSATION
Developing an effective and appropriate compensation system is an important part of the HRM process. An effective and appropriate compensation system can help attract and retain competent and talented individuals who can help the organization accomplish its mission and goals. Many organizations uses alternative of Compensation is called skilled based pay system. A pay system that rewards employees for the job skill they can demonstrate. Several factors influence the compensation and benefit packages for different employees. SCIL is giving the following compensation and benefit packages to their employees. Safety Health Services Benefits

EMPLOYEE SERVICE, SAFETY, HEALTH & WELFARE.

a)
I.

SAFETY & HEALTH SAFETY

Safety and Security has been a top priority on the attention list. Procedural reviews and periodic checks are regularly carried out to ensure safe operations. To preserve environment, against any possible pollution through air, water or solid waste, best available means, methods and equipments are used and heavy plantation has been developed in factory premises Health, safety and
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health (HSE) is working for the employee safety and health. It provides safe working conditions and environment.

The personnel department conducts safety training programs for all employees 2-3 times in a year. The company offers the following safety programs. Fire fighting Chlorine gas leakage training First aid training General awareness about environment Chemical spillage training

SCIL is a industry of chemical which has stored a large amount of dangerous gases chemicals. So it is need to provide quality safety environment to all its employees. For this purpose the other policies of the company are given below. Company conducts different policies about health and safety of employees. Provide protective gloves and safe tools Safe working areas and working conditions Provide reliable equipments, information, instructions, training and supervision for safety Social security coverage in case of accidents Report to the head department and personnel department with in two hours in case of accident Instructions for cleanliness, order less, working process, smoking, waste material, periodical medical check up and vaccination will be arranged by personnel department. Gas cylinders should be fastened securely with a chain.

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b)

HEALTH

SCIL is ISO 14001 certified company to provide healthy environments. The company provides free medical facilities to all its employees. The company has its own dispensary and first aid medical facilities in the industry. But to provide quality medical facilities SITARA Group of Industries has two its own hospital located at Faisal Abad equipped with all new technological instruments. Ghfoor Bashir children Hospital Aziz Fatima Trust Hospital

AZIZ FATIMA TRUST HOSPITAL

It is one of the prominent health institutions in Faisalabad, which provides medical relief to the poor and needy. It is run by donations of Sitara Group of Industries. The Hospital is equipped with latest medical fixtures, equipment and instruments. It has almost all of the necessary departments such as Medical, Endoscopy, Haemodialysis, CCU, Neurology, Radiology, Pathology, Pediatrics, Gynecology, Urology, Eyes, ENT and Orthopedic. It has highly qualified and experienced doctors, specialists and other peramedical and administrative staff.

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GHAFOOR BASHR CHILDREN AND MATERNITY HOSPITAL

This hospital has two operation theaters, recovery room, labor room and an I.C.U. Hospital Pediatric, Pathology, Radiology and Anesthesia Departments, situated in a very beautiful building equipped with all modern facilities.

b)
I.

EMPLOYEES SERVICE & BENEFITS

SERVICES

a) WELFARE ACTIVITY FOR SCIL EMPLOYEE Apart from providing professional environments, the company believes in the welfare of its employees in a best possible manner. The company has provided homely environments to the employees such as Free and adequately furnished bachelor accommodation for Executives, Officers and workers. Family accommodation has also been arranged for reasonable number of Officers and workers. Adequate recreational facilities such as TV Rooms, sports fields, in-door / out-door sports facilities, etc have been made available. Annual sports functions are held to promote healthy activities amongst the employees. Similarly, free pick and drop
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transport facilities from Faisalabad and surrounding areas are provided to the SCIL Employees. Company also provides medical coverage to its employees at its own Hospitals namely Aziz Fatima Trust Hospital, Bashir Ghafoor Children Hospital located at Faisalabad.

b) PHILANTHROPIC ACTIVETIES Being socially responsible, the company is involved in charitable activities for the well-being of needy and deserving people. For this purpose , SCIL carries out number of such social activities round the year such as distribution of Ration , Clothings, cash, etc to the deprived people particularly located in the villages of adjoining areas. Needy and deserving students, who cannot continue their studies due to lack of resources, are given financial support in shape of stipends to such students by the company to complete their studies. For this purpose, an advertisement is published in the Daily News Papers inviting applications from the deserving students for this Scholarship Scheme. Large number of widows / families are also given monthly financial grants / aids to meet their basic requirements. Medical camps are also arranged in the surrounding villages to provide medical facilities to the needy persons at their door steps.

BENEFITS
The company provides extra benefits to employees who do some extra work such as bonuses incentives etc. The company has vacation policies such as holidays, sick leave etc.

LEAVES

Annual leaves 14 officer- assistant manager Annual leaves 21 above assistant manager Casual leaves 12
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 Sick leaves 6

INSURANCE POLICY
The company offers life insurance to all its employees working in the company. The company offers two life insurances. New jubilee insurance EFU insurance

MEDICAL FACILITY
SCIL provide free medical facilities to all its employees in case of injury or illness .

OFFICERS MESS FACILITY

The company provides free food service to officers at executive level in the officers mess.

FAIR PRICE SHOP

There is a fair price shop within the organization to provide cheaper goods to employees.

EMPLOYEES SHARE POLICY

SCIL offers a share policy for the employees. More over the company give some extra benefits to employee every year such as. . 5% of profit for workers (salary less 5000) 2.5 salary for officers

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HAJJ POLICY
The company offers a free Hajj policy for three persons every year.

CEO announces the names of three lucky winners for Hajj

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SALARY ADMINISTRATION
This section of HRM department makes pay plans for the workers. Salary bills of workers of all categories are prepares at personnel department under this section. Sitara Chemicals Industries LTD. adheres to all laws and regulations of government. For instance, SCIL follows Minimum Wage Board Act, Industrial Relations Standing Ordinance, Workman Compensation Act. Sitara Chemicals has developed ten grades for rank and file workers and have structured Pay Scale according to labor market and competition within the hospitality industry of Pakistan. The compensation for executive and secretaries is negotiable depending on the abilities and performances. The main objectives sought management at SCIL are: through effective compensation

SALARY/ WAGES SECTION

Compensation needs to be high enough to attract applicants. Retain present employees. Compensation management strives for internal and external equity. Comply with legal regulations imposed by government.

FEATURES OF COMPENSATION SYSTEM

Pay plan is different for skilled and unskilled people. Unskilled person (2500) Skilled person (on the base of qualification and experience) Fixed salary Overtime is paid according to Government rules and regulations i.e. double on Gazettes holidays. Bonus is awarded (Minimum one bonus in a year) Monthly Medical Allowance
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MANPOWER PLANNING
By Human Resource Planning, we mean that how systematically forecast the future demand for, and supply of, employees. The motto of Sitara Chemicals in this aspect is staffing at the right time with the right people i.e. Human resource Planning was thought of as means for ensuring that right numbers and the right kinds of people were at the right times, So that consumers needs are satisfied. It is responsibility of HRM Department to forecast the Personnel needs. The main sources to check the personnel needs are forecasting and job analysis. Mostly HRM Department forecast the division of labor but sometimes gives orders each department to forecast the personnel needs and then HR personally perform the job analysis in each department. HR department makes replacement chart of candidates and prefer internal source of candidates. From internal sources candidates are promote on the basis of qualification and experience. If from internal sources candidates are not available then external sources are used. The selection of candidates from internal or external resources is strictly on merit. The personnel department has its own selection team.

NEEDS FOR EMPLOYEES

The following are the major causes for the demand of human resources.
New Ventures Change in technology Workforce factors Source of employment

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NEW VENTURES
New ventures also lead to mean changing human resource demands. Sitara chemicals focus continuously on innovations and new concepts to provide its services to heavy clientele and to compete its competitors. With the opening of new plants which is occupied with the latest equipment to support the chemical industry and for this purpose personnel are needed to cater for clients. Now Sitara group has open new Yasser spinning mills which also require personnel to carry out its operations.

CHANGE IN TECHNOLOGY
Technology changes the way business is done, is difficult to predict, and is difficult to assess. For instance, the concept of new plants creates enormous demand for telemarketing Personnels and computer Professionals and we have to cater for the needs of our customers. For this purpose people are hired so that they can carry out the operations.

WORK FORCE FACTORS

The demand of Human Resource is modified by such employee actions as retirements, resignations, termination, deaths and leaves. Right now SCIL is not facing any severe problem of attrition or turnover.

SOURCES OF EMPLOYMENT
When the Personnel Department has projected the human resources demand in future, then the concern for the personnel manager is filling projected openings. There are two main sources of employment for Sitara Chemical Industries LTD. 1. Internal sources. 2. External Sources.
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For this purpose, two types of documents are maintained about the employees in SCIL. 1. Skill Inventory Chart. (for non- managers) 2. Management inventory Chart. (For managers). These inventory documents catalogs each employees skills and abilities, and when there is need of new job, internal employees can go for this job. Personnel manager is responsible for internal job placements. Another internal source is employee referrals.

1.

Internal Sources

2.

External Sources
Not every future opening can be filled with present employees. For some jobs, they have to fill the vacant posts by outside people. Some jobs are entry level jobs, and then there is a need of external sources of human resources. The following are the external sources of employment for SCIL. i. Advertisements. ii. Universities iii. Management trainees iv. Apprentices v. Internees.

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INDUSTRIAL RELATIONS
CONTRIBUTION & DEALING WITH DIFFERENT AGENCIES

SCIL is a big unit of SITARA group of industries has friendly relations with all other industries. This section of HR Department has monthly contribution of EOBI, social security, education centre and CBA union. The monthly performance reports are calculated and submitted to the accounts department as per defined procedure. This section has time to time meetings with other internal and external agencies of the country.

UNION RELATIONSHIP
CBA LABOR UNION
Labor Union does alter the work environment. The personnel department is deeply involved with decisions that affect compensation, work hours and other terms and conditions of employment to ensure uniformity of treatment. In SCIL one labor union member is granted the status of collecting bargaining agent (CBA). Management wants effective work performance through good relationship with CBA. The union is only for rank and file workers.

The union is very strong and working for the benefits of the workers but has no effect on the companys policies and procedures. The company has friendly relations with the union and has time to time meetings with the union leaders. The demands of the union are try to fulfill at the end of the year which in the favor of workers. The union leader is elected after one year.

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 Union management meetings are held every month. At the end of the year, Annual meeting is held with the employees. A reasonable agreement is reached which is workable for both the management and the work force. Management always wants to provide a conducive and congenial work environment for the work force.

COMUNICATION SYSTEM
SITARA group of industries uses digital communication system at all its units. SCIL has an in-house developed management information system is in place and being updated and improved on an ongoing basis. All PC's are connected with 2 powerful Pentium server machines through LAN/WAN on UNIX & NT. IT department operates on ORACLE, a latest programming tool. There is digital electronics communication system at SCIL connected with internet technology. All departments are connected with each other. To have communication system with other external agencies the company uses extranet and internet technology. SCIL has friendly relations with all other industries and external agencies. The company uses the following communications systems. Reports prepared by different departments . Meeting organized daily, monthly, as well as when needed by chairman and Managing Director. E-mail, websites (internet sources), data storage tools Telephone, Fax, intra net used by the organization Wide area network (WAN) is used as a communication between different departments and is possible through client server system.
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TERMS AND CONDITIONS OF EMPLOYMENTS

Terms and conditions of employment are mostly on the basis of job and conditions qualification and experience. It is different for professional employees and unskilled workers. The following are the four categories. Regular Probationer. Contractual Temporary Casual

Regular
These are the employees which after the final selection join the organization. Usually managers & supervisors fall in this category.

PROBATIONER
When an employee is selected for some post, he or she has to undergo for the probation period of 6 months normally. However for the management cadre, it can be less than 6 months. When the probation period is completed a contract is signed by the employee with personnel manager.

CONTRACTUAL TERMS
There are three major considerations. Employment is temporary in nature. The person should be of age 60 or above. Duration of employment contract is one year and renewable.
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 When the personnel management feels that the person retiring from the job have enough capabilities and potential to work more in the benefit of the organization, then sign this type of agreement with the retired employee. Employee from top to bottom can be included in this type of employment terms.

TEMPORARY WORKERS
Employees of the cadre of workers and supervisors are hired for period of 6 to 9 months according to government rules on temporary terms of employment.

CASUAL WORKERS
It is concerned with the daily wages workers. When the company requires the workers urgently, they employ the casual worker to fill the vacancies.

APPRENTICESHIP TRAINING
According to government regulations, company have to hire the apprentices against the regular scheme. SCIL is not bound to give regular jobs to the apprentice trainees. Mostly terms and conditions of employment are given in the advertisement. An example of terms and conditions of employment is given in online advertisement as below.

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To Brighten Your Future

CAREER OPPORTUNITIES
Sitara Chemical Industries Limited, Countrys first ever Public Limited RIBA (INTEREST) FREE Company. We are Market Leader in Choler-Alkali products, pioneer in exporting non-traditional products and an ISO 9001 certified Company, with a mission of growth and diversification. We are seeking experienced self driven professional for the following position:

We are looking for:

GENERAL MANAGER COMMERCIAL

Qualification Post Graduation in any discipline preferably MBA, M.Com (An Engineering back ground would be considered an additional qualification) Should have more than 20 years Techno/Commercial experience, at least 5 to 7 years in a similar/senior position preferably in Chemical Industry or related field/business. Should be dynamic, self motivated, intelligent and seasoned enough to fit huge corporate environment as an excellent team player Should have outstanding negotiation and analytical skills coupled with leadership qualities to head the Commercial Department comprising professionals of local procurement as well as imports Should be well conversant with import policies, SROs, Custom/Tariff Regulations/Laws and other import related pre-requisites with ability to deal with all intermediaries Page - 52 -

Experience

General in an Eligibility

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 Preferably should have extensive knowledge of supply sources) of technologies, plants/machinery, equipment, spares and raw materials in international as well as local market, for a heavy chemical industry Should have knowledge of developing and maintaining all procurement related systems as per the standards and requirements of the company and should be able to work under ISO 9001-2000 & ISO-14001 environment Should be able to represent company internationally and nationally, with particular reference to dealing with Government Authorities, Departments and Institutions at higher level/forums and should be willing for extensive local as well as foreign traveling. The position is of a senior executive level, while reporting, directly to the Chief Executive Officer Company provides market competitive remunerations, congenial and professional working environment and growth chances. Please apply with confidence with a copy of bio-data, two recent colourd photographs and copies of testimonials within 10 days from the date of publication of this ad to: Chief Executive Officer Sitara Chemical Industries Limited 32-K. M. Shaikhupura Road Post Box No. 442, Faisalabad Tel: 041-689141-5 Fax: 041-689147-8 E-mail: ijaz@sitara.com.pk

STRENGTHS OF HR DEPARTMENT
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 High qualified management. Good recruitment procedure Excellent HR training centre Computer literacy programs Safety training programs Compensation and benefit packages for employees Handsome salary package for professionals Best communication system Strong labor union

WEAKNESS OF HR DEPARTMENT
Time consuming recruitment procedure Extra expenditures on training Union can affect the company policies Difficult to recruit all workers of the company Difficult to recruit candidates of different categories

CONCLUSION
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Sitara Chemical Industries Limited a market leader in Industrial Chemicals, has installed latest process technology to produce high quality products. In order to run and manage such sophisticated plant, we have employed large number of professionals in all fields i.e. Engineering, Marketing, Finance/Accounts, General Management & Administrations. To manage and motivate all these people has highly qualified team in HR Department. As a chemical industry the company has a tough recruitment process to select the people. The company provides excellent training programs for employees HR training centre. And all other functions of hr department such as compensation alary, communication systems, and labor union relationship are beautifully performed After the details study of HR Department of SCIL I concludes that the HR department performs its duties very patiently and carefully. but according to the 21st century and to compete with the modern digital market they have to make it more power full and effective because people are the assets of the company and as one company president said. For many years it has been said that capital is the bottleneck for a developing industry. I dont think this any longer holds true. I think its the work force and the companys inability ti recruit and maintain a good work force that does constitute the bottleneck for production and developing industry and I think this will hold true even moir in the future

DATA COLLECTION
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In this regard I have visited the SITARA Chemical industries LTD (situated at Shekhupura road Faisal Abad) with the help of data given and discussion with executives, I have got maximum possible information which helped me to carry out this term paper. Data is collected from HRM Department through questionnaire. HRM department at SCIL consists of very qualified and professional persons. The following persons helped me to give information about their policies to complete the project. I am very thankful these persons who helped me in this project.

1)

Mr. Muhammad Afzal Bukhari Mr. Muhammad Nawaz Chatha

(HR Officer) (Manager Personnel)

2)

I hope that my efforts, in this regard will be appreciated.

QUESTIONAIRE
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RECRUITMEUNT
Q: What is the current situation of your organization? Are you downsizing or rightsizing? Q: which source you would prefer for recruiting. a) Internal source b) External source Q: if your choice is internal source, what benefits you are getting? Q: What is your recruitment process? Q: What is the minimum and maximum age limit for different kinds of employees? Q: what method you are using for internal search a) Through job posting. b) Rehiring the persons, which were fired. c) Using references of exiting employees like top management. Q: What is your policy who applies for a job, which is less than their qualification or requirement? Q: What is turnover rate of employees? Q: In which season, you usually recruit employees? Q: When a new technology is introduced, what is your policy about those employees whom you dont need after this technology? Q: Do you use new technology (computer, artificial intelligence) to predict personal requirement? Q: Have you made any recruitment chart? Q: On which media you advertise for any job required a) News paper b) Magazine c) Internet d) TV Q: Do you consult any employment agency for recruitment? Q: Do you recruit people on Internet? Q: If you are getting help for recruiting from agencies, then from what type of agencies, you are getting help a) Public agencies b) Private agencies c) Agencies associated with non-profit organizations. Q: Do you have any quota system and what are its criteria? Q: In what percentage and for what jobs, do you recruit minorities? Human Resource Management Page - 57 -

Q: do you recruit for part time jobs or not? Q: Do you give equal opportunity to all applicants or you have some preference based on relationship reference or any other? Q: Are you recruiting from college, schools and universities for fresh professionals? Q: Do you allow internship for on study students? Q: Many companies give less to old employees and more pay to new employees at some posts .Is it in practice in your company? If it is, why? Q: How much you pay to overtime in percentage? Q: what are your standard working hours? Q: Do you follow place work plans or hourly plans? Q: Do you offer any team or group incentive program? Q: Do you have any employees stock ownership plan and it is how much percentage of shares is reserve for employees?

SELECTION
Q: what screening method you are using a) General aptitude tests b) Special skill tests c) General knowledge tests d) Communication skill tests e) Mathematical ability tests Q: Are you using work samples tests or simulation for testing for selection? Q: Do you put any efforts for background investigation before selection? Q: Do you check references before selection, given by the candidates? Q: What type of physical and medical examination you conduct? Q: What weightage you give to the interview? Q: What type of question, mostly you ask a) Technical type questions b) Behavioral type questions c) General knowledge type questions

TRAINING AND DEVELOPMENT

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Q: have you any orientation program for the employees and what kind of instruction you give to your employees in this orientation? Q: Do you have any training program for your employees? Q: Do you have your own training instructors? Q: What is your training method and process? Q: Do you have any training program for your current employees? Q: Do you use audio and video aid for training? Q: Do you follow traditional and informal methods of training? Q: What kind of laws and acts do you follow in the training process? Q: How you access that current employees need training? Q: Do you give any diploma to the people who complete their training? Q: How do you train your employees to work with other employees well? Q: Do you have any program to increase skills of your employees?

BENEFITS AND SERVICES

Q: Do you offer any hajj or umra scheme to your employees? Q: Do you have any fair price shop within your organization and at what rates? Q: What is your policy towards employees vacations such as holidays and sick leaves or unemployment issuance? Q: Is there any reward for the persons who do some extra ordinary? Q: Do you food service to your employees and at what rates? Q: What is the post retirement program in your organization? Is there any pension program in this regard? Q: How many leaves you allow a person to officially take in a year? Q: Do you provide any life insurance to your employees of your company? Q: What kind of benefits you give to your employees in case of death and serious injury during their service? Q: Do you give annual bonus to employees? And what is the eligibility or base of annual bonus?

SAFETY AND HEALTH

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Q: How do you provide employees protection (first aid, safe tools, protective gloves, glasses, cloths etc) Q: do you have your own medical facility? Q: Is it a hospital or dispensary? Q: What are your safety measures in case of fire? Q: Are all exits visible and unobstructed? Q: Is smoking prohibited in or allowed in your organization? Q: Do you give any recess or break to your employees during working hours and what is its time duration? Q: What are the safety measures you have installed in your company? Q: Is there any difference in the provision of medical services to the workers and the managers? Q: What kind of medical services you provide to your employees?

HUMAN RESOUCE PLANNING

Q: Do you follow strict merit policy or give preference to personnel relations or references? Q: Have made any personnel replacement chart? Q: How do you forecast personnel requirement?

LABOUR RELATIONSHIP
Q: Is there any labors union in your organization? Q: When this union establish in this organization? Q: How many members are there in the union? Q: Is union a burden on your organization or is it useful? Q: How many unions in your organization? Q: Is union powerful enough to have an effect on your policies and planning? Q: Do you use any third party to assist in the bargaining process? Human Resource Management Page - 60 -

Q: Is this bargaining a good faith bargaining or something (surface bargaining, inadequate concession, imposing conditions? Q: How are your relationships with union leader? Q: After how much time union election held? Q: How well collective bargaining process is in practice in your organization?

COMMUNICATION
Q: what kind of communication system you use? Q: Do you have Internet technology in your organization like intranet, extranet etc? Q: have you any communication system with other industries of your kind? Q: To what extent you have relations with other industries?

ORGANIZATION

SITARACHEMICALINDUSTRIES LIMITED (ISO9001:2000 Certified)

32, KM sheikhupura road Faisalabad

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