HUMAN RESOURCE MANAGEMENT Human resource management (HRM, or simply HR) isthe management of an organizations workforce,or human resources. It is responsible forthe attraction, selection, training, assessment,and rewarding of employees, while also overseeingorganizational leadership and culture, and ensuringcompliance with employment and labor laws.
INTRODUCTION OF NESTLE Nestle is the leading company of Switzerlandestablished by Henri Nestle. He endowed hiscompany with the symbol derived from his name. Nestle represents the nourishment, securityand sense of family that are essential to life. The first product made by Henri Nestle arethe food for babies.
NESTLE VISION Lead a dynamic ,motivated and professional work force. Meet the nutritional needs of all age groups. Maintain long-term growth. Establishing responsible communication with theconsumers which in turn can provide feedback. Strengthen the position as the best career destinationfor talented individuals.
NESTLE MISSION“ Nestle is dedicated to providing the best foods topeople throughout their day, throughout lives,throughout the world. Nestle contributes to your well-being and enhances your quality of life.”
HUMAN RESOURCE PLANNING Planning encompasses those guidelines whichconstitutes a sound basis for effective HR Managementin the Nestle group around the world. HR Policy has been built on two documents: Nestle management and leadership principles. Corporate business principles.
RECRUITMENT PROCESS Recruitment Requisition Form is the majordocument for hiring the employees. This document is used in three circumstances: Replacement Management trainees Succession plan
REPLACEMENT Filling of a position and additions to existing work force. This opportunity arises after budgeting a position on theresignation of some employees or on urgent basis. Department head has to obtain approval from MD. If the request is budgeted , the divisional heads fills up a“Recruitment and Budgeted form”
MANAGEMENT TRAINEES The procedure for selecting fresh graduates at Nestle isbit different as the trainees cannot be short listedthrough their CV’s. Management trainees are fresh graduates or they haveone year experience. Salaries or benefits of the management trainees don’tvary with their specialization.
SUCCESSION PLAN Succession plan at Nestle is made by the departmenthead. He chooses his own successor. His duty to train for his work, so that there is a person totakeover in case he is transferred.
TRAINING AND DEVELOPMENT Learning is the part of company culture. Each employee, either fresh or old, is conscious of theneed to upgrade continuously his knowledge and skills. Guiding and coaching is part of responsibility of eachmanager. When formal training programs are organized, theyshould be purpose-oriented and designed to improverelevant skills and competencies.
PERFORMANCE APPRAISAL Job performance of an employee, in terms of quality,quantity, cost and time is evaluated by by managers orsupervisors. The methods are performance appraisal, employeeappraisal, performance review or developmentdiscussion. Nestle gives importance to their employees at theirwork place because their quality is totally depended onemployees performance.
COMPENSATION BENEFITS Compensation is a key part of Nestle Realpackage and helps to attract, motivate andretain a workforce of top performers. Nestle is committed to offering compensationpackages: BASE PAY:Base pay are designed to be competitive, basedon data specific to each position as measured in marketplace.
SHORT-TERM INCENTIVES:It is designed to reward you foraccomplishments during a specific performance period. LONG-TERM INCENTIVES:It is designed to motivate and reward those ineligible leadership positions for company’s sustainedsuccess over a longer period. HEALTH AND WELLNESS:Nestle offers a range of healthcare optionsthrough benefits program called NESCARE. You canchoose the benefits of medical, dental and visioncoverage.
MOTIVATIONAL STRATEGIES Adoption assistance Employee discount Voluntary benefits Scholarship program Long-term care Employee assistance program Pick and drop facilities Good working environment Games
LEADERSHIP STYLE Nestle management and leadership principles describethe management style and the corporate values ofNestle group. A prerequisite for dealing with people is respect andtrust. There is no room for intolerance, harassment ordiscrimination of any kind. Nestle has Democratic Leadership Style
SAFETY AND HEALTH MEASURES Nestle regards its people as its most valuable assets. Valuing our people by providing a safe place to work. Reducing risk and preventing injury or illness toour employees, contractors and visitors. Consulting with employees and other stakeholders onHealth and Safety matters.
HRM IN MCDONALD’S McDonald’s is divided into five regions in the world,which are further divided into sub regions. Internationally owned. All decisions are taken from head office. Decisions are some how changed to suit the differentcultural backgrounds of the region. HR is working very efficiently. 95% of the workforce is restaurant based while 5% of itis in the official running of the organization.
JOB DESCRIPTIONCandidate ProfileMBA/PGDBA with specialization in Marketing mustbe willing to travel. Must have 2-4 year experience fromthe retail industry.
JOB DESCRIPTION (CONT’D)Job DescriptionIdentify priority restaurants, develop sales buildingplans and evaluate results for priority restaurants, mapbusiness opportunities and challenges for restaurants,event marketing, assist with the development of mini-market marketing plans, provide input on marketingneeds from customer view point, monitors the properexecution and impact of all marketing activities.
JOB ANALYSIS IN MCDONALD’SQuestionnaireEmployees fill questionnaires in every 2 month toknow the performance of the restaurant so thatinformation about duties, responsibilities and activitiesof a job can be gathered.
JOB ANALYSIS IN MCDONALD’S (CONT’D)ObservationObservation is also a way to gather the informationabout a job and to achieve different satisfaction levels.Once the firm has determined its staffing needs, it takesevery possible step to hire the best employees so as tofill the available positions.
EQUAL EMPLOYMENT OPPORTUNITY LAWSMcDonald’s believes on Equal Employment OpportunityLaws and is an equal employer committed to a diversework force. There is no limit to how far you can progresshere without gender discrimination.
THE HIRING PROCESSThe hiring process has two components: Recruitment. Selection
THE HIRING PROCESS (CONT’D)RecruitmentRecruitment is the process of generating a pool ofqualified candidates for a particular job. The firmannounces the job’s availability to the market andattracts qualified candidates to apply.SelectionAt McDonald’s, people are the most important factor.They seek only those people, who can think, feel,express themselves, learn, teach and hence grow. Theirgrowth is the company’s growth.
TYPES OF RECRUITMENT Internal Source External Source
TYPES OF RECRUITMENT (CONT’D)Internal sourcesFilling open positions with current employees areoften best source of candidates. At Macdonald’s jobposting technique is used which mean sit publicizes anopen job to employees (often by literally posting it onintranets and bulletin boards) and listing the job’attributes like qualification, work schedule and payrates.
TYPES OF RECRUITMENT (CONT’D)External sourcesEternal sources used by McDonald’s areAdvertisement in NewspapersAdvertisements are done in all the leading papers so thatevery eligible candidate can apply for the job.Advertisement on Web SiteSometimes advertisement is also done on website so thatthe opportunity can’t be missed by anyone.InternshipsSometimes students get jobs while doing internship inMcDonald.
SELECTIONFresh PeopleMcDonald’s provides thorough In-house training tofresh people relatively inexperience people. Hiringpeople having no previous work experience also helpsthem greatly in adjusting to the distinct culture of theorganization.Justified SelectionThe selection is entirely based on merit, whichconform the selection criteria without any bias towardsgender, religion, race, colour , nationality, age.
SELECTION PROCESSScreening of ApplicantsAfter building a pool of candidate’s applications, shortlisting of selective applications is done by the HR manager.Written TestThe reason for the written test is to assess that whetherthe recruits are able enough to fulfill the general practicalrequirements of the job. The HR department designs andconducts the tests as and when hiring needs arises.
SELECTION PROCESS (CONT’D)Initial InterviewThe ONE to ONE structured interviews are conducted byRestaurant Manager after the written test.Aptitude TestsThese are those tests, which are done for the trainingmanagers.Reference ChecksThey are to make sure that references provided by thecandidates are valid so that no confusion remains.
SELECTION PROCESS (CONT’D)Final InterviewCandidates who give the best results are called for thefinal interview. A panel of five or six interviewers doesinterview.RelocationAfter final interview, it is decided which candidates toselect for which job to make sure who is the best so that thestandard of McDonald’s is maintained.
TRAINING IN MCDONALD’SThe employees in McDonald’, are provided withtraining to achieve. high standards in the organization.The training period for a crewmember is three monthsand for others it is one month or 10-15 days.Training involves Direct Training Training Abroad
TRAINING IN MCDONALD’S (CONT’D)Direct TrainingThis is that training which is given directly after theselection so that an employee can understand theposition he will be working for and its responsibilities.Training AbroadDifferent programs are arranged so that otherqualified people can train employees at different levelsabroad so that they can understand different standardsand can improve their own capabilities.
METHODS OF TRAININGOrientationThis is a way of direct training which provides newemployees with basic background information theyneed to perform their . New employees get ahandbook, Working hours, Performancereviews ,Vacations ,Employee benefits, Personnelpolicies, Safety measures and regulations. Theorientation is performed by the HRD Manager.
METHODS OF TRAINING (CONT’D)On-the-Job TrainingOn-the-job training is to train a person to learn a jobby actually doing it. Every day, around the world;restaurant members receive on-the-job training andcoaching in skills and procedures essential to their work.Classroom TrainingClassroom courses, developed and led by trainingexperts, restaurant employees for advancement.
LEVEL OF TRAININGCrew Member’s TrainingCrew members are trained extensively on all food safetyand food handling processes.Manager’s TrainingMcDonalds is dedicated to professional training anddevelopment. The average McDonalds restaurantmanager spends more than 2,000 hours over four years intraining of one kind or another.
SPECIFIC TRAINING COURSESFloor Management Course (FMC)The FMC is geared towards improving the trainees abilityto deliver Q,S,C & V as a Floor Manager.Management Development Program(MDP)The MDP series is designed to help to become a mosteffective manager : Operations Consultant Course (OCC) Training Consultant Course (TCC)
PERFORMANCE APPRAISALThe appraisal process in McDonald’s includes PA forms forevery particular job which involves International McDonald‘s standards. Assessing the employees’ actual performance relative tothese standards. Providing feed back to the employees.
LEVELS OF PERFORMANCE APPRAISALSThere are four levels to evaluate the performance ofemployees: Out Standing Excellent Good Need ImprovementAfter giving the total grade to the employee the appraiserwrites down about the strength and the areas needingimprovement of the employee.
INCENTIVESPerformance-based pay approach that is designed toincrease output, based on the performance of individualsor groups. Incentives in McDonalds are .given toemployees on basis of performance
TYPES OF INCENTIVESCash Based Incentives Attendance Allowance Annual Allowance Medical Allowance Hard Soft Furnishing [HSF]: Once in every year certaincategories of employees can furnish their houseswith the carpet, furniture, curtains etc. at theMcDonald’s expense. Leave Fair Assistance [LFA]: Once in two yearmanagerial level employees are allowed to chooseany area for tourism in Pakistan with family for 10days.
Non Cash Based Incentives Crew of the Year Crew of the Month Branch of the Year Access to gift certificates Merchandise Free food
BENEFITSWhen employee joins the McDonalds management team,he will receive the following:Profit SharingFully funded by McDonald’s. Share in the profits of themost successful quick service restaurant in the world.VacationIncreased vacation time per years of service.LeavesMcDonalds employees can also apply and obtain a leaveof up to two months for personal reasons or to study forexaminations or school projects.
Company CarRestaurant managers are eligible for a company vehicleafter only three years of service.Educational AssistanceMcDonalds offers an educational assistance program forits employees.Social ActivitiesEnjoy a variety of activities with his team which couldinclude an annual Convention, summer picnic or outing,eid Party etc.
UniformAll the employees accept those working in the offices aregiven uniforms.Flexible hoursThe restaurant opens for business 18 hours a day and thatmeans work at McDonalds can fit into anyones schedule.Schoolwork, family or personal activities can be scheduledaround working hours.
CONCLUSIONMcDonalds is successful because it has a system ofcorporate norms and individual opportunities, to all theFranchises they are integrated in the same philosophy ofvalues and clear expectations.McDonalds guides all the actions according to organizational values as working in team. to feel passion for the work always offering the best ofthemselves. to be committed with the partners and with the missionof the company. to be entire in each one of the actions, to be leaders.
RECOMMENDATIONSNo doubt McDonalds is a huge giant size organization butit also need some improvements which are McDonalds must start its services for customers as wellas product. Job enlargement and job enrichment should be appliedfor retention of employees. Recruitment must be conducted for higher posts also toselect more skilled persons. There should be proper and flexible arrangements fortraining of managerial level employees.
INTRODUCTION Parent Organization: Pakistan Services Ltd (P.S.L) Owner: Mr. Sadrudin Hashwani Director HR: Lt. Col. (RETD.) Sohail Bashir HRM Manager: Madam Aliya HR Executive: Mr. Aqeel Ahmed Employee strength at PC : Approx 1600
VISION “We’ll open the doors; you’ll see what’s in store.” We feel pride in making efforts to position Pakistan inthe forefront of the International arena.
MISSION “Our mission is to be the hotel recognized as the leaderin the industry in any aspect. We are committed totrain and develop all our staff members allowingthem to grow in their careers and provide services andstandards which exceed guest expectations.”
STRUCTURE OF HUMAN RESOURCEDEPARTMENT AT PC DIRECTOR HUMAN RESOURCE MANAGER HUMAN RESOURCE HUMAN RESOURCE EXECUTIVE ADMINISTRATION OFFICER ADMINISTRATIONSUPERVISOR OFFICE ASSISTANT
ROLE OF HR DEPARTMENT AT PC “Organization needs people and people needorganizations.” The HR element of the organization is fundamental andcarries a great value Human resource plays a vital role in the smooth runningof an organization. The total numbers of employees working for PEARLCONTINENTAL HOTEL Lahore is more than 1500. A large number of these employees are working in Foodand Beverage Department and House KeepingDepartment.
FUNCTIONS OF HR DEPARTMENT AT PCPC has the following HR Management functions Personnel planning Recruitment Selection Interview Orientation Training Performance appraisal Benefits & Compensations Health & safety
RECRUITMENT AND SELECTION ‘Creating a pool of well qualified and talentedcandidates and choosing the best candidate fromthat pool.’ The recruitment and selection process in anorganization has to be aligned with the corporatemission and objectives.
RECRUITMENT AT PC Employment planning & forecasting Recruiting: Build a pool of candidates Applicants complete application form Use selection tools Tests to screen-out applicants Director or department head interview finalcandidates to make final choices Candidate becomes employee
RECRUITMENT PROCEDURE The organization recruiting procedure is based on thenature of Job. What kind of the job is it? It depends upon the kind of work, job containsfor permanent employees is different contractual isdifferent Job specification and job description is prepared by theHR manager.. HR manager then has to consult with GM ofthe particular unit. After the proposal has been discussed the approval isgiven.
RECRUITMENT PROCEDURE(CONT’D) PC does not rehire employees which have gone. Theyprefer fresh graduate’s employees. Job posting is maximum of 9 months and minimum of 3months. During this period if the hired employee is found to beunsuitable the next most suitable candidate is calledfrom the waiting list to replace him.
RECRUITMENT PROCEDURE (CONT’D) They hire permanent, monthly basis, and also dailybasis employees. For labor work PC uses contractors to provide themwith the specified no. of employees as required. The organization does not go for child labor as it isunethical They provide 100 % Diversity (Equal opportunity toboth genders). Applications from candidates are kept in separatefiles according to the job titles and whenever there isa vacancy available they are called.
SOURCES OF RECRUITMENT Inside candidates Outside candidates Internees
SOURCES OF RECRUITMENT INSIDE CANDIDATES As soon as a position is vacant a memo is issuedthroughout the organization. The employees interested in the vacant position droptheir application forms at HR department. The other source for internal candidates is referrals.
SOURCES OF RECRUITMENT (CONT’D) OUTSIDE CANDIDATES There are no means used for attracting the outside candidates. PC makes no advertisements. Existing candidates does the job of getting outsidecandidates. Internees are one of the sources of the outsidecandidates.
Internees Basic requirements for internees are the hotel management degrees and diplomas/certificates inhotel management. The referred candidates are given priority. Minimum duration of internship is one monthwhereby internees are not paid. Free food and laundry services are howeverprovided.Sources of recruitment (Cont’d)
JOB ANALYSIS Job analysis contains two key elements :Job DescriptionJob Specification Job description is prepared at only managerial level postand it is written by HR department
JOB ANALYSIS (CONT’D) Job descriptionJob descriptions are developed by conducting ajob analysis, which includes examining the tasksand sequences of tasks necessary to perform thejob. It includes: Skills and Efforts Responsibilities Outlines of the Duty Whom to Report the Task everything is mentionedin it for the employees in a very detailed manner.
JOB ANALYSIS (CONT’D) Job specificationThe job specification includes: Qualification of employee Experience of employee Training or development needed for theparticular job Personal attributes required for the job Interpersonal skills and communication skills
JOB EVALUATION The methods and practices of ordering jobs or positionswith respect to their value or worth to the organization. Factors considered important while making jobevaluation are:Complexity of the Job.How much Stress one can Bear.Available Budget for Compensation.Experience Required for the Job.Company Need for the Employee for that Job.Abilities required performing a Job.
METHOD USED FOR JOB EVALUATION Classification Method Ranking Method Point Method
Classification MethodThe general purpose of job classification is to create andmaintain pay grades for comparable work across yourorganization.Ranking MethodJobs are arranged from highest to lowest, in order oftheir value or merit to the organization. Jobs can also bearranged according to the relative difficulty inperforming them.Point MethodJobs are expressed in terms of key factors. Points areassigned to each factor after prioritizing each factor inorder of importance.
SELECTIONBasic criteria for testing and selectionAppearance & GroomingProfessional QualificationsExperience & Knowledge of Job applied forCommunication Skills in EnglishBalance Poise & MaturityPotential for GrowthReasoning & JudgmentComputer Skills
SELECTION PROCEDURE Firstly trickle down the CV’s. Selection is based on the eligibility of qualification andexperience. Minimum qualification is matriculation for the lowerlevel staff. And the minimum Qualification is bachelorsfor the upper level staff. Avoid negligent hiring because they are running five starhotels.
INTERVIEW The candidate is first interviewed by the manager ofPC and the Director HR. In second step the selected candidates are calledagain for the structured interview which is to beconducted by head of the particular department. The candidate is first interviewed by director of HRthen he would be going through panel interview. For top level they also have Panel interview.
TRAINING AND DEVELOPMENT Provide training to their employees on the job andalso off the job. Use different Training centers at locations Safety training provided to the employee.
TRAINING APPRAISAL The trainee performance is appraised by the immediatesupervisor. The immediate supervisor in PC Hotelevaluates trainee performance on trainee’s assignment,tests and on the job work. This appraisal shows trainees:Ability/Desire to learn new things.Knowledge.Leadership qualities.Discipline and Flexibility.Personality.Strengths and Weaknesses.
PERFORMANCE APPRAISAL Appraisal is essential for enhancing the productivity ofemployees . Appraisal is done by the head of the specific departmentwhose employee is being appraised. Employees’ promotion (or demotion) is finally approvedby the HR Manager. Important factors that are considered while appraisingan employeeAppearanceConductProfessional WorkLeadership & Teamwork
PERFORMANCE APPRAISAL(CONT’D) Planning & Organization Initiative & Creativity Communication Training Skills Business Attitude & Operational Performance Achievements of Objectives The actual appraising is done by the immediatesupervisor of each employee. When an employee is promoted, he/she is required tomeet the new post requirements.
BENEFITSWork ScheduleWork schedule differs for different posts as managersare required to be present at office timings.Breaks and Meal PeriodsPC supply free meals and tea to employees duringworking hours.LeavesThe leave structure of PC is as follows:Casual (Maximum 3)Sick (Medical certificate for three or more)Earned (Minimum 7)
BENEFITS (CONT’D)Medical FacilitiesPC provides free medical facility to all its employees andtheir children.Life InsurancePC provides life insurance facility to its employees.Minor charges are deducted from employee’s pay.IncrementsPC offers yearly pay rise to its employees regardless oftheir performance. The rate of increments is same for allemployees.
OTHER BENEFITS Free uniform is provided to all employees. Free laundry services for employees’ uniforms. Free transportation for female workers. Hajj Lucky Draw PackageCOMPENSATIONSFamily CounselingFamily Counseling is a counseling program foremployees wherein they are suggested how to copewith their personal & family problems.Pre-Retirement CounselingEmployees willing to work after retirement tare givenconstructive guidance concerning their second careers.
HEALTH AND SAFETY Health and safety laws Security Measures Social security fund In-house doctor and Dispensary Contract with Services Hospital Hygiene of employees Fire preventions Energy conservation
CHALLENGES FOR HRDEPARTMENT Relationship between the Workforce andManagement Managing a Dynamic Environment Conflict Management Managing Workforce Diversity Lack of Trained Workforce Global Competitive Environment Economic Challenge Loyalty of Employees
CONCLUSIONAfter a thorough study of Human Resource Departmentat Pearl Continental, Lahore we can conclude that PC is ahuge name in the hotel industry and its HumanResource Department is working dynamically to pursueits organizational goals. This project has given us therealistic view of how Human Resource practices arefollowed in any organization.