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Human resource management presentation Shan Foods

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Human resource management presentation Shan Foods

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Human resource management presentation Shan Foods

  1. 1. HUMAN RESOURCE MANAGEMENT PRACTICES AT SHAN FOODS (PVT.) LTD. Group Members:  Muhammad Numair (1838)  Hassan Nasir (2504)  Muhammad Suhrab (1895)  Danish Barolia (1726)  Hammad Ali (1488) Submitted to: Mr. Salman Abbasi
  2. 2. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 2 ABSTRACT This is a group project assigned by Mr. Salman Abbasi for the course of Human Resource Management. The objective was to visit any well reputable, large scale organization and Analyze the HRM functions on these lines; Recruitment, Selection, Training, Appraisal, and Compensation. For the purpose, we have chosen Shan Foods. Following report contains a brief description of HR practices at Shan Foods and the findings collected and analyzed from the project questionnaires. LIMITATIONS Firstly, we decided to go KSE but due to their non-serious and delaying tactics, we had to abandon it. Then we opted for Amreli Steels but they also gave us appointment of Tuesday, which is really late as we have to present this report on Friday to our instructor. So, finally we stuck on Shan Foods (Pvt.) Ltd but we came to know that their senior manager HR has just resigned few days back but we successfully managed to have a meeting with their Assistant Manager HR who was temporarily working as Manager HR, on Monday 04th May, 2015. A group photo with Assistant Manager HR at Shan Foods (Pvt.) Ltd.
  3. 3. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 3 ACKNOWLEDGEMENT We would like to express our special thanks of gratitude to our instructor, Mr. Salman Abbasi who provided us the golden opportunity by assigning us this knowledgeable project of Human Resource Management, which also helped us in doing some research, related to the topic and we came to know about so many new things and concepts. We are really thankful to him. We would like to thank the staff of Shan Foods (Pvt.) Ltd particularly their Assistant Manager HR, Mr. Tariq for their help and cooperation, the knowledge they provided to us and most importantly, allowing us to visit their organization on a very short notice.
  4. 4. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 4 LETTER OF TRANSMITTAL Iqra University North Nazimabad, Karachi-74600, Pakistan Tel: 36723220-6 Http://www.iqra.edu.pk/iunc May 08, 2015 Dear Sir, This is the final project report of Human Resource Management course which was assigned to us by you. The objective of this report is to find out the HR practices and analysis of Shan Food’s (Pvt) Ltd. The report has been completed after the perpetual hard work, determination and devotion of past few weeks. If you have any additional questions, we would be pleased to answer them. Yours sincerely, Muhammad Numair (1838) Hassan Nasir (2504) Muhammad Suhrab (1895) Danish Nazimuddin (1726) Hammad Ali (1488)
  5. 5. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 5 TABLE OF CONTENTS Introduction to Shan Foods 6-8 Overview of HR department of Shan Foods 9 Overview of AM HR of Shan Foods 10 Missionstatement of HR department of Shan Foods 10 Goal of HR department of Shan Foods 10 HR PRACTICES  Mechanism of Job Analysis 11  Job Evaluation 11  Recruitment 12  Strategies for hiring Senior/Mid/Entry level employees 13  SelectionProcess 13-15  Equal Opportunity Employment 16  High/Low Risk Employees 16  Training System at Shan 16  Career Plans for Employees 17  MotivationSystem 17  Compensation 17-18  SuccessionPlanning 18  Performance Management 18  Retention Issues 19  Turn Over Ratio 19  Resignation 19  Retirement 20  Re-Hire of Formal Employees 20  Alignment of HR Dept. withcompany’s strategy 20  Status of HR 20 Conclusive Analysis 21
  6. 6. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 6 INTRODUCTION TO SHAN FOODS Shan Foods (Pvt.) Ltd is a leading name of food industry in Pakistan operating all over Pakistan as well as having globally appreciated products. The journey of Shan’s remarkable success started from 1981, when a visionary entrepreneur, Mr. Sikander Sultan, CEO Shan Foods (Pvt.) Ltd, helped pave the way to success by pioneering in the spice business. Today Shan Foods stands as one of the most reputed food company and a powerful global brand with presence in more than 65 countries across 5 continents. Revitalizing existing business, entering new ones, manufacturing high quality products and expanding into foreign markets are among the initiatives the company has undertaken with success. Looking to expand its product line, Shan continues to introduce new products that better caters to the changing needs of the consumers. In order to take advantage of growth opportunities, Shan has now expanded its production capacity even further with manufacturing units installed in UAE, Saudi Arabia, United Kingdom and USA. The company now also harbors offices in Sharjah- UAE, Makka- KSA and Manchester- United Kingdom. Shan is truly an example of a progressive Shariah Compliant business where Shariah guides the business operations and values remain consistent. These values are embraced by its people and have played a major role in Shan’s success to date and will continue to do so in future. Shan does not offer products only; it provides an indulging and delightful food experience that is JUST PERFECT! COMPANY’S PROFILE Business : Manufacturing and Marketing of Food Brands Employees : Management Staff: around 360 & Non-Management Staff: around 281 Labor : Approximately 1000 Distribution network : 374 distributors within Pakistan, 60 distributors across 45 countries Head office : HEAD OFFICE – Plot 29, Sector 23, Korangi Industrial Area, Karachi, Pakistan. Manufacturing facilities : Pakistan, UAE, Saudi Arabia and United Kingdom.
  7. 7. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 7 VISION To be a consumer oriented company with keen insigne of food products ensuring quality panty consistency and authentic taste to operate with state of the art technology to obtain optimum results and retain highest quality standard thrived efficient and motivation human resource and inculcate in them a sense of participation and proved for personal goals and development. MISSION  To produce and market food products having quality standards much higher than set internationally.  To provide products of the highest quality at the least chargeable profit.  To put the name of PAKISTAN as a hall mark of quality in food products among the international community.  To satisfy the needs of all stake holders in a just and equitable profit sharing.  To ensure Shan products are in every kitchen / house holds all over the world. CORE VALUES  Being honest, fair and ethical with all stakeholders.  Caring and actively contributing to the community in which they operate.  Believing in truth, trust and team work. Promoting a creative environment, where people have the opportunity to grow, dare to take risks and work with passion.  Honoring their commitment. They set new benchmarks for the industry by going the extra mile and delivering superior value to their consumers and stakeholders.  They delight their consumers by offering innovative and exciting food solutions by reaching out to them wherever they are, to meet their current and emerging needs.  Actively seeking opportunities to reward & recognize their winning teams and celebrate our success.  They strictly comply with all Shariah laws and remain conscious of it in every sphere of business.
  8. 8. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 8 CORPORATE SOCIAL RESPONSIBILITY  Sahar Press Release As a socially responsible organization of Pakistani, Shan Foods (Pvt.) Ltd is always willing to give back to the community and this glorious nation. Pursuing this commitment, Mr. Ganatra (COO), Shan Foods (Pvt.) Ltd. has launched SAHAR, an initiative which aims to further Human Resource Advancement in the rural areas of Pakistan. SAHAR specially aims to engage with the youth, enhancing their career potential and helping them build and fortify the country’s future workforce. This way Shan Foods is leading a positive change ensuring that the nation reaches greater heights.  Noor Press Release With the mission in mind, Shan Foods recently launched an initiative to “Enlighten Shan for an Educated Pakistan” under the name of “Noor.” The purpose of this initiative is to enlighten and education the underprivileged employees of Shan and grant them an opportunity to receive quality education so that they are able to learn new skills to make literate, and take smarter decisions in life. ACHIEVEMENTS  Superior Taste Award from iTQi 2013  PAS AWARD 2010, 2011, 2013- Foods Category.  Best Export Performance Award 2003-2004, 2004-2005, 2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012, 2012-13 from FPCCI (The Federation of Pakistan Chambers of Commerce & Industry)  Superior Taste Award 2009-2010, 2010-2011 and 2011-2012 from iTQi (international taste and quality intuition, Brussels.)  Brands Of the year 2012-2011  Consumer Choice Award 2008-2009, 2009-2010.  Best Export Performance Award 2003-2004 and 2007- 2008 from KCCI (Karachi Chamber of Commerce & Industry.)
  9. 9. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 9 OVERVIEW OF HR DEPARTMENT AT SHAN FOODS The Human Resources (HR) Department develops initiatives and provides strategic support to SHAN FOOD’s Management with regard to human resources policy. It supports line management in the departments, performs centralized service tasks, and ensures application of operational human resources activities. Main areas of responsibility include manpower planning, organizational development, employment and association conditions, recruitment, job classification and salary administration, performance appraisal, advancement, internal mobility, training and development, social services, social security, working conditions, settlement of disputes and relations with the personnel. When employees sense a well- documented plan of human resources management, they do not feel threatened by inconsistent structure or an absence of discussion about advancing skills and reaching new goals. Human resources conquer factors that challenge management by ensuring: legal compliance in hiring, compensation, training and communication. The objective of human resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner. Human resource management serves these key functions: 1. Recruitment 2. Selection 3. Training and Development 4. Performance Appraisals and Management 5. Promotions 6. 6. Industrial and Employee Relations. 7. Record keeping of all personal data. 8. 8. Compensation, pensions, bonuses etc. in liaison with Payroll 9. 9. Confidential advice to internal 'customers' in relation to problems at work
  10. 10. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 10 OVERVIEW OF ASSISTANT MANAGER HR OF SHAN FOODS (PVT.) LTD. Mr. Muhammad Tariq is Assistant Manager HR at Shan Foods Private Limited, having a first class Master degree in MPA- HR from University of Karachi and having 09 years’ experience in HR management at different positions. At present he has been working as “Assistant Manager HR” in the prestigious organization Shan Foods (Pvt.) Limited since Mid-2006. His expertise are; HR Operations, Compensation & Benefit, Payroll, HRIS, Administration, Recruitment & Selection, HR Budget, Salary Surveys, HR Policies and Manual, Talent Management, Training and Development, Performance Management System, Staffing, Policy making, Compensation Surveys, Employee's Counseling, Feasibility Reports. MISSION STATEMENT OF HRM DEPARTMENT OF SHAN FOODS The mission of the Human Resources Department of Shan Foods is to provide the information and support needed to hire, develop, and retain qualified employees who model organizational values and contribute to the attainment of the organization goals; to maintain employee-employer relationships which are legal, ethical, productive, and positive; and, to protect the district’s employees, property, and finances from avoidable loss. HR DEPARTMENT GOAL The goal of this department is to insure compliance with all mandated requirements, maintaining good employee relations through fair and equitable treatment of all employees, and encouraging an environment in which employees can maximize their potential, resulting in a higher level of service to the organization.
  11. 11. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 11 HR PRACTICES MECHANISM OF JOB ANALYSIS Job analysis is done subsequently by the line managers, heads of the departments and the HR department. The job is completely analyzed on the basis of activities and responsibilities involved and attributes or job requirements needed to perform the activities. The job analysis are done by keeping in sight the functional or duty areas of a position, tasks, the basic requirement for the job and the basic training to do the job. The job description and job specifications are subsequently made and analyzed by line managers, HOD and HR department which in turn helps hire the right quality of workforce for the company. Another purpose of job analysis is later improvements, regarding performance appraisals, selection systems, promotion criteria, training needs recognition, compensation plans etc. The job analysis at Shan Foods aims to answer questions such as:  Why does the particular job exist?  What responsibilities does the worker undertake?  How does the worker perform the job?  Within how much time the job needs to be performed?  What qualifications, skills, techniques and characteristics are needed to perform the job? JOB EVALUATION Job evaluation is conducted by HR department determining the value and worth of a job. This allows them to identify the highly responsible and tougher jobs so that they can set the compensation package of an employee according to the nature of the job. Without job evaluation, there is a threat of employees’ job dissatisfaction which can result in deterioration in employees’ performances. At Shan, jobs are arranged from highest to lowest, in order of their value, level of responsibilities and the relative difficulty in performing them. Compensation packages are set according to the ranking of the job as highest being most difficult and highly paid and lowest being simplest and less paid.
  12. 12. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 12 RECRUITMENT CREATION OF VACANCY: The vacant positions are usually assigned to the existing employees for the purpose of replacement or promotions etc. But still there is a good amount of budget allocation for the new vacancies at the end of every year which allows the HR department to create some new vacancies for external recruitment. The vacancies are created by the decision making of line managers of the departments, head of the departments, HR manager and CEO regarding the need and necessity of the new vacancies. New vacancies are created on the basis of termination, expansion etc. PHASES OF RECRUITMENT Phase 1: Identify Vacancy and Evaluate Need The company first identifies and evaluates the need and necessity of the new vacancy and internal replacement. The decision making is done with the collaboration of HR manager, line managers, Heads of the departments and CEO keeping in sights the objectives and strategic goals, budget allocation and job analysis. Phase 2: Applicant Generation In this phase of recruitment, the company decides the applicants to target in the search. More specifically, what type of applicant would they like to attract to their organization’s open or vacant positions for example, entry-level or experienced. The open positions are generally for the non-experienced and entry-level applicants at Shan Foods as they prefer referrals for the vacant positions which require replacement. Sometimes, for some new openings, the services of headhunters are also availed for recruitment depending on the nature of job. Phase 3: Maintaining Applicant Status During the second phase of recruitment, the company is primarily concerned with maintaining the applicant’s interest in the job and the organization so that the applicant will accept the job offer. Given the goals of both the company and applicant, the initial recruiter-applicant contact is considered very important. First impressions revolve around the recruiter judging the applicant and the applicant’s reaction to the recruiter’s attitude and behaviors. For this purpose, numerous interviews depending on the nature of the job are held with HR manager, line manager of the concerned department and finally with the Head of the department.
  13. 13. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 13 STRATEGIES FOR HIRING SENIOR/ MID/ ENTRY LEVEL POSITIONS The senior and mid-level positions are filled using internal recruitment system and previous employee on that position is replaced with another employee of the company. Entry level openings are comparatively lesser at Shan Foods and for the purpose of hiring entry-level employees, Shan gives job ads online and in newspapers, consider recommended applicants of existing staff and avails services of headhunters. SELECTION PROCESS Review of Applications a) Applications are reviewed by the HRD and suitable candidates are selected for the departmental consideration. b) Applications are reviewed by the Department concerned. The department concerned and the HRD select those candidates who are to be called for an initial interview by the HRD. Preliminary Interview  Candidates are screened by the HRD  Appropriate tests are administered as mentioned below.  Results of screening and tests are shared with the Department concerned  Candidates for further interviewing are chosen on the basis of this screening and testing. Testing The successful applicants may be asked to take selection tests in order for the organization to assess applicant’s knowledge, skills, abilities and demonstrated capabilities relevant to the job requirements. Group HR will coordinate with the department the design and related elements (grades applicable, test environment, checks and reviews, follow through with results vs. on the job performance) of the tests. Results of tests will be compiled and maintained in Human Resource department and will remain confidential.
  14. 14. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 14 The kinds of test measurements obtained and the questions that help to answer are: Intelligence - Can the candidate learn to do the job? - Will he be expected to progress to higher job? - Can he be expected to progress to higher job? - Will he show sound judgment in crucial situations? Educational Achievement - Does the candidate have the basic education upon which is build? - Does his/her achievement conform to his/her years of schooling and intelligence? - Does his/her achievement show that he/she is highly motivated? Attitudes - Does he have the attitude, opinions and personal history that have been shown to be characteristic of our successful employees? - Does his judgment about himself and other people agree with the principles of Human Relations practiced in the Company? Job - Does he know the principles and theory of his craft? - Does he know the standards of practice of his craft? Passing scores are determined by considering: - The content of entrance training programs. - The job requirement, present and future. - The number of applicants. - The status of the applicant’s present, former or new employer. Final Interview The candidates are short-listed by factory HR Manager against the requirements of the job description and called in for interviews in consultation with the Department Head. Interviews for Managers and above are conducted by the Chief Executive with facilitation from the Group HR Department. Interviews for all other positions are conducted by the General Manager in consultation with the Factory Manager/ Department Head with the facilitation of HR department.
  15. 15. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 15 Reference Checks Reference checks are conducted for all qualified and selected candidates by the HR Department. Reference Checks can reveal information about an applicant’s behavior with prior employers that could be critical to your decision. Medical The purpose of the medical examination is to determine and evaluate the general health status of the applicant as it is related to his ability to perform the job for which he is applying. Appointment letter is issued only after the candidate has been found fit for the job applied for. Only successful candidates are asked to undergo the medical test, which will consist of a blood test, chest x-ray and a urine test. The cost of the medical examination is borne by the organization. Appointment On acceptance of “Offer Letter/Sheet” by the candidate, the HRD finally issues the “Appointment Letter” signed by the Director for all Management employees and the by Manager for all Non-Management employees and returns it to the HRD for further processing. Probationary Period The appointment for a probationary period is as follows: - MANAGEMENT Employees : 6 months - NON-MANAGEMENT Employees : 3 months On successful completion of the probationary period a “Confirmation Letter” is issued by HRD, which is duly signed by the concerned Director/Manager, Employees will become members of the Provident Fund only on confirmation of the employment. Replies to other candidates All other candidates who were called wither for initial interviews or any other interviews are sent replies by the HRD thanking them for their cooperation and telling them that the position has been filled.
  16. 16. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 16 EQUAL EMPLOYMENT OPPORTUNITIES Shan Foods (Pvt.) Ltd provides equal employment opportunities on pure merit system irrespective of gender, race, religion, ethnicity, origin etc. There is a general perception regarding Shan Foods that their organizational culture is extremely religious and most of their staff strictly follows the religious values of a specific religious sect. There is also a perception about Shan regarding discrimination on the basis of gender that they don’t hire female staff because of religious extremism. By visiting the company itself, we observed that the general perception is not absolutely correct and there are equal employments opportunities for all as there is are female staff in the company, non- Muslims are working in the company and employees belonging to Hindu religion are provided with specially made vegetarian food for them. The general staff there was casual and there was no sign of religious extremism. Although, because of being Shariah compliant organization, the company completely stops its operation at Prayer breaks and car allowance are given to employees through Islamic Ijara system. HIGH/LOW RISK EMPLOYEES There is no such formal classification of high and low risks employees at Shan Foods Ltd and according to them; each and every employee is important to them whether they are of managerial or non-managerial level. Although, like any other organization, there are some employees whom the company cannot afford to lose at any cost and for the purpose of retaining them, the company provides them with extraordinary salary packages, allowances and other perks and privileges. TRAINING SYSTEM AT SHAN FOODS They have built an institution named ‘Shan Centre for Excellence’ where Training Sessions are conducted for development of Technical and Managerial Competencies. The HRM department at Shan Foods provides extensive on job training to its employees both internally and externally on regular basis according to their respective job areas. The training system is proper and transparent and every employee gets extensive training according to his performance rating and job evaluation. Necessary training is also provided to employees before promotions, transferring and external projects to cope up with the changes in environment and increment in job responsibilities.
  17. 17. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 17 CAREER PLANS FOR EMPLOYEES Shan Foods is not an extremely formal organization like MNCs, therefore there are no such visible career plans for the employees. Unlike big MNCs, Shan doesn’t inform its employees regarding their career path and promotional limits or time periods. The promotions and postings to other countries in which the company is operating are done on the basis of performance and willingness of the concerned leadership. Shan doesn’t provide clear lines of career planning to its employees. Although, there is rapid career growth at Shan and on job trainings are provided to the employees to excel their career but still there is no formal and fixed way of career planning at Shan. MOTIVATION SYSTEM There is a proper motivation system at Shan Foods Ltd. They have certain criteria for every job and they rate the performance of their employees on the scale of 1 to 5 (1 being “needs to improve” and 5 being “excellent performance”.) The increments, promotions and other monitory benefits and incentives are given to the employees based on their performance for the responsibilities which are quantifiable while non-monitory awards are given for good conduct, dedication at work, punctuality and loyalty towards work and organization. Surveys are conducted within the organization asking employees regarding the job satisfaction and other motivational aspects promising them complete confidentiality regarding their identity. In case of negative response from the employees, necessary steps are taken to overcome their complaints to keep them satisfied and motivated at work and . Besides that, several motivational programs and promises for opportunities are used to motivate employees. COMPENSATION The compensation policy at Shan Foods is not strategic. Although they offer market competitive salary, perks and privileges but their employees do not have clear vision regarding their future salary increments and allowances on the basis of inflation and economic forecasts. There is not a concept of “Salary Banding” so the compensations are equal for the jobs having same workload and responsibilities according to their classification irrespective of departments. Because of the absence of strategic compensation policy, Shan Foods has faced serious retention issues from their sales department and they had to revise their pay scale to overcome that issue.
  18. 18. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 18 BENEFITS FOR THE EMPLOYEES Besides market competitive salary, the company offers various incentives and allowances to its employees like bonuses, GP fund, medical allowance, car and fuel allowance etc. The salaries of employees are reviewed and revised time to time against inflation and economic conditions of the country. BENEFITS ON SEPARATION The Company endeavors to maintain a well-balanced program of employee benefits that is financially sound and will confer benefits principally in recognition of long services. The Principle features of these benefits are mentioned hereunder.  Provident fund  Gratuity fund  Pension On Termination due to “Misconduct” no gratuity shall be payable. SUCCESSION PLANNING AT SHAN FOODS Shan Foods doesn’t focus much on succession planning. According to Mr. Tariq, Assistant Manager HR, there was a formal action plan made for succession planning few years back but the top management of the company didn’t find it much effective, appealing and beneficial and the keeping in sight the possibility of politics between company’s employees, the concept of succession planning was not focused upon anymore. PERORMANCE MANAGEMENT AT SHAN FOODS Shan foods greatly emphasizes on performance management as they know the importance of capable employees in the organizational progress. Performance of employees is monitored on regular basis and appraisals are given to them annually regarding their performance. The rating is done on the basis of bell curve. Performance appraisal is objective based at Shan Foods (Pvt.) Ltd. Employees performing well are given additional benefits along with additional responsibilities and targets. Low performing employees are counseled and necessary trainings are provided to them to let them overcome their weaknesses. Besides that, extensive on job trainings are provided to the employees on regular basis to enhance their performance.
  19. 19. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 19 RETENSION ISSUES According to Mr. Tariq, Assistant Manager HR, they were facing serious retention issues from sales department previously. The reason behind subsequent resignations was the salary and compensation packages which, according to the sales people were not enough to prevent them joining other organizations. Though, the HR department was not facing such issues with other departments but necessary steps were taken and pay scales for all the departments were revised to retain the employees and now they are free from such retention issue. The HR department does not instantly accept resignations from capable employees and tries to retain them by overcoming the reason for resignation to some extent. The resignation is only accepted if the employee doesn’t want to get retained even after efforts of HR department for retaining him/her. TURNOVER RATIO The turnover ratio at Shan Foods is not alarming for the Human Resource department because there is no culture of firing until and unless it becomes too necessary. Moreover, the job satisfaction level and compensation packages are good enough to retain employees. The brand name and company reputation also allows them to retain employees as employees feel their jobs securer and their status higher working in a company like Shan Foods Ltd. Although, there was a noticeable turnover ratio previously because of employees’ preference of working in MNCs over working in a local based organization. But the issue has been terminated ever since Shan Foods has expanded its production capacity even further with manufacturing units installed in UAE, Saudi Arabia, United Kingdom, USA and setting up harbor offices in Sharjah- UAE, Makka- KSA and Manchester- United Kingdom. This enormous expansion has allowed them to retain employees even better. RESIGNATION All employees, upon resignation acceptance will be scheduled for an exit interview. Refer to Exit Interview Form. HR will conduct an exit interview for employees placed in managers and above category. For all other positions the concerned factory manager will conduct the Exit interview. Findings of the Exit Interviews will be compiled by HR Managers and forwarded to Group HR Manager for onward review with management for corrective actions wherever required.
  20. 20. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 20 RETIREMENT Retirement age for all male employees is 60 years and female employees are 55 years. Human Resources will issue all related correspondence to employee 1 month prior to retirement RE-HIRE OF FORMER EMPLOYEES Rehiring of former employees can take place with the organization. In such cases, HR Department will request recommendation of (previous) Department Head before forwarding the case to the General Manager and Chief Executive. The General Manager and Chief Executive will have the authority to approve/reject the rehiring of the employee. ALLIGNMENT OF HR DEPARTMENT ON ORGANIZATION’S OVERALL STRATEGY Strategic HR planning is one of the most important components at Shan Foods as they consider the strategic HR planning as a core component in achieving organizational objectives and strategic goals. The HR policies at Shan Foods are completely aligned with company’s overall strategy and maintaining a pre-defined organizational culture like strict Shariah compliance, decentralized decision making to some extent, informal means of communication between managerial and non-managerial staff, employee empowerment etc. The HR department, as per company’s policy primarily focuses on internal recruitment, merit based selection, attractive and market competitive salary and compensation packages for employees and fair wages to the labor as per government’s instructions, retirement plans etc. All these factors align HR policies with organizational strategies assisting actively and playing immense role in achieving strategic goals of the organization. STATUS OF HUMAN RESOURCE MANAGEMENT DEPARTMENT AT SHAN FOODS The status of HR department at Shan is moderate. The HR department influences the employees work and management’s decision to some extent but not at full. There are clear lines of authorities for each department and maximum authority is given to the departmental line managers as they are directly supervising the staff. Although, the HR policies are strictly followed within the organization and every employee of every level has to comply with those policies. Shan Foods doesn’t have any visible talent acquisition system in place as they primarily focus on internal recruitment and replacement for the vacant jobs and entry-level openings are comparatively lesser at Shan Foods.
  21. 21. HRM PRACTICES AT SHAN FOODS (PVT.) LTD. Human Resource Management Page 21 CONCLUSIVE ANALYSIS OF THE HRM DEPARTMENT OF SHAN FOODS The human resource management department of Shan Foods is one the most influential and powerful departments of the company. Although, the department has clear lines of authority but still it has an influential role within the organization. The HRM department of Shan Foods consists of well qualified and professional staff with highly ethical working methodologies and effective system of recruitment, selection, training and compensation. They value their employees and consider them as an organizational family maintaining friendly and motivating organizational culture and informal means of communication for better coordination. Although, there is still some capacity for further improvement regarding clear and visual career planning of the employees. At Shan Foods Pvt. Ltd, the recruitment is purely rational and requirement based, selection is merit based with equal employment opportunities, training is extensive and compensation is market competitive, fair and attractive. Although, they have faced some retention issues in the past but due to the absence of strategic compensation policy. They have overcame it by revising their pay-scale and now they are very successful when it comes to employee retention. Their effective performance management and alignment with company’s overall strategy have made them a successful and reliable department of the organization.

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