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function of HRM


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function of HRM

  1. 1. Final Project Of “Human Resource Management” On “Akhuwat” Presented To: Miss. Shumaila Azhar Presented By: Attiqe Ur Rehman (Group Leader) MCE 13216 Hassan Karamat MCE 13205 Ayesha Ashraf MCE 13203 Class M.Com Semester 2nd Evening Superior University Lahore
  2. 2. ACKNOWLEDGMENT First of all we thanks to Allah who has given us to strength to complete this project. And also thanks our respected teacher Miss Shumaila Azhar who helped us at the time of difficulties with his experience and thoughts of professional management. Without his guidance we have not able to achieve our target. He gave us his most valued time to help in our project so we are very thankful to you miss. DEDICATION This piece of work is dedicated to our beloved parents and our teacher Miss Shumaila Azhar who always helped us out in times of woe and stress and taught me to follow the path of truth justice honesty and to all who love and care about me. Only For Miss Shumaila Azhar
  3. 3. Human Resource Management: Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Manager: A manager is a person that can manage it and the resources to achieve the organization goals and objective.
  4. 4. DESCRIPTION OF REPORT: 1. Table Of Contents:  What is HRM?  Who is manager?  Executive Summary  Nature of Industry  Company Description  Address of Offices  Number of Employees  Form of the Business  About Organization  History  Board of Directors  Funding of organization  Departmentalization  Human Resource Department  Human Resource Management  Human Resource Planning  Recruitment and Selection  Training & Development  Performance Management  Compensation Management  Labor Relations  HR Management Challenges  Questionnaire of Human Resource Management  Conclusion & recommendations  Report presentation
  5. 5.  References  Appendices Human Resource Management: Human Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Manager: A manager is a person that can manage it and the resources to achieve the organization goals and objective.
  6. 6. EXECUTIVE SUMMARY Our main focus on the HR function which are adopted by our selected organization “Akhuwat”. Our purpose to visit this organization to know the HR system and also know the implementation of HR functions in this organization. And know how about its goals, organizational culture & environment, structure design. Akhuwat is currently working according to society act so there is no labor union in organization and there is no specific hand employee hand book but there is book that describes the organization culture also attached.
  7. 7. 2. Nature & Industry: Akhuwat the organization that we visit is a nonprofit organization and it provides micro financing for small scale business without any interest or service charges. Company Description: Akhuwat is registered under the society’s registration Act of 1860. Number of Employees: The total numbers of employees in Akhuwat are 710 on the basis of permanent and daily wages. Address of Offices: Head office: House # 382 Block # 15 Sector B-1 Township Lahore Phone # 042-35122743, 3516382 E-Mail: Website: PSIC (Punjab Government) 5th Floor L.D.A Plaza Edgerton Road Lahore Phone # 042-99201432 Website: The products which are offering by Akhuwat mention below:
  8. 8. Board of Directors: 1. Dr. Muhammad Amjid Saqib 2. Dr. Kamran Shams 3. Mr. KhawarRafique Sheikh 4. Mr. HumayunEhsan 5. Dr. Izhar-ul-haqHashmi 6. Mian Anwar Sadiq 7. MsKulsoom Fatima Ranjha 8. MsKausarAkif 9. Mr. MuhamamdSaleem Ahmad Ranjha History of Akhuwat: In 2001 the idea of Akhuwat was presented before a group of friends at the Lahore Gymkhana. During the conversation, charging of exorbitant interest rates on microfinance programs aimed at poverty alleviation was being criticized. The idea of initiating an interest free successful microfinance program was brought forth as a challenge and at that point, no one present foresaw the shape this experiment would eventually take. One of the friends pledged a donation of ten thousand rupees, while another friend, Dr. Amjad Saqib, took it upon himself to utilize that donation as an interest free loan. The first loan of ten thousand rupees was given to a widow who was striving to earn a decent living through honorable means. She was neither a beggar nor was she looking for charity; she was only seeking a helping hand. By utilizing and returning that loan within a period of six months, she reinforced the belief in the integrity exhibited by the poor when they are helped with trust and respect. The success of the first loan brought in more donations and the group of friends became convinced of the viability of their venture into interest free microfinance. Herein Akhuwat was born, with these friends forming the first Board of Governors and Dr. Amjad Saqib serving as the first Executive Director. This marked the
  9. 9. beginning of a new chapter in microfinance, one that found its inspiration not in economic logic but in the spirit of compassion and generosity of mankind. Akhuwat derives its name from ‘muakhaat’ or brotherhood, the earliest example of which was seen in the fraternity formed by the Ansars (citizens of Medina) and the Muhajireen (or Mecca’s) who had migrated to Medina to escape religious persecution. Inspired by the spirit which induced the Medinites to share half of their wealth with the migrants, Akhuwat seeks to invoke this very concept of brotherhood through its operations. For Akhuwat, the metaphor of brotherhood entails the creation of a system based on mutual support in society. To this end microfinance is only one of the tools, albeit a powerful one, being employed by Akhuwat. 3. Form of Service: Akhuwat is nonprofit organization and it is providing interest free micro financing. Akhuwat is registered under the society’s registration Act of 1860.Akhuwat was established in 2001. 4. About Organization: Akhuwat is interest free micro financing organization.  Objectives: Main objective of Akhuwat of providing interest free microfinance to the poor so as to enhance their standard of living. Drawing on the principles of social justice and brotherhood, Akhuwat strives to alleviate poverty by creating a system based on mutual support in society. To this end, Akhuwat has adopted microfinance as its operational strategy with the loans being offered in accordance with the doctrines of Qarz-e-Hassana
  11. 11. Funding: Donation: Donation is back bone of this organization. Many rich people and many organizations who want to decrease the poverty in our country they donate large amount to this organization. Some personalities names are given below who are donation this organization:
  12. 12. Donors: MianMuhamamdMansha MianAamirMahmood Malik RiazHussain Mr. Jahangir Kahn Tareen Mr. Pervaiz Musharraf (Ex President of Pakistan) Mr.KhalidMaqbool (Ex Governor Punjab) Ch.ShujatHussain Malik Iftikhar Ahmad MrHamesh Khan Mr. ShahzadaDawood Mr. Abdul RazzaqDawood M/s Ghosia Builders M/s New age Cable M/s Style Textile Mills M/s Ejaz Spining Mills
  13. 13. M/s Manzoor Textile M/s Sahir Associates M/s Jamshoro Joint Venture M/s HabibRafique Development M/s Haier Group M/s D.G Khan Cement M/s Nishat Mills M/s Western Unions M/s Lahore carpet manufacturing M/s Asiatics Group of Companies M/s Jamal Rug Weavers pvt Ltd KhawjaRafiqueShaheed Foundation Foreign Donation: Many foreign organizations who are supporting the “Akhuwat” are listed below: Pakistan Italian Debt Swap Agreement(PIDSA) Citi Foundation Oxford University U.K Pakistan students association (Hong Kong) Punjab Government:
  14. 14. Punjab Government wants to poverty free society So Punjab government establish a fund of amount “Two Hundred Corer" to issue the interest free loan to needy people Basically“Akhuwat” is part of Punjab Government department Punjab Small Industries Corporation (PSIC). Departmentalization: Human Resource Management Donation Credit Accounts Audit
  15. 15. Hierarchy Of HRM: Cheif HR Officer Manager HR Assistant Manager HR HR Officer Assistant Manager Trainig & Evaluation Training Officer
  16. 16. Basic Concept OfHuman Resource Management: HRM Each organization works towards the realization of one vision. The same is achieved by formulation of certain strategies and execution of the same, which is done by the HR department. In Akhuwat the basis objective of the HR Department is to facilitate all the employees working in different departments by listening to their grievances and by helping them in their career planning.  Recruitment: It aims at attracting applicants that match a certain Job criteria.  Selection: The next level of filtration. Aims at short listing candidates who are the nearest match in terms qualifications, expertise and potential for a certain job.  Hiring: Deciding upon the final candidate who gets the job.  Training and Development: Those processes that work on an employee onboard for his skills and abilities up gradation. Human resource management is important for all the managers because: They don’t want to hire a wrong person for the wrong job. Experience high turnover. Wastage of time with useless interviews. In Akhuwat every function of human resource management plays vital role in the organizing but the most vital one is staffing because rest of all depend in it.At the base of this strategy formulation lie various processes and the effectiveness of the former lies in the meticulous design of these processes. But what exactly are and entails these processes? Let’s read further and explore. The following are the various HR processes: 1. Human resource planning (Recruitment, Selecting, Hiring, Training, Induction, Orientation, Evaluation, Promotion and Layoff).
  17. 17. 2. Employee remuneration and Benefits Administration 3. Performance Management. 4. Employee Relations. The efficient designing of these processes apart from other things depends upon the degree of correspondence of each of these. This means that each process is subservient to other. You start from Human resource Planning and there is a continual value addition at each step. To exemplify, the PMS (performance Management System) of an organization like Infosys would different from an organization like Wal-Mart. Let’s study each process separately. HRM In Akhuwat HUMAN RESOURCE PLANNING: Generally, we consider Human Resource Planning as the process of people forecasting. Right but incomplete! It also involves the processes of Evaluation, Promotion and Layoff. Akhuwat is not a large professional organization but still have strong HR system in Akhuwat HR planning is done according to systematic process first they set the objective and strategies company also look the external and internal factor in Akhuwat there is strong culture effect in his HR planning. The HR planning process in Akhuwat starts according to this process: Environmental Scanning: In Akhuwat first of all scanning the external environment in which studying the environment of the organization. In which many factor effect on organization. Scanning the entire factor they can influence on organization. Environmentalscanning is the important process of Akhuwat because there have strong culture that has great impact on organization Organizational Capabilities Inventory: In Akhuwat organizational capabilities consist of following component:  Employee demographics  Employee career progression
  18. 18.  Education and training  Performance  Abilities and interest  Employee culture Forecasting: Akhuwat is expanding there branch network in all over Pakistan so there is complete procedure of forecasting. Forecasting is benefit for long term planning. In Akhuwat there is systematic branch structure which consists of Region, Area office and branches whenever expansionoccurs there is preplan that how much employee need in future. Human Resource Plan: Human resource plan develop in Akhuwat for long term. Planning of human resource in Akhuwat must consider the allocation of people to job over long periods of time. Human resource planning provides the opportunities to organization to complete their task efficiently. RECRUITMENT AND SELECTION: In Akhuwat Recruitment is arguably the most important HR function, the sourcing of people to in this organization on referral bases.The main focus of Akhuwat recruitment policy is on culture candidate having strong social culture have batter chances in Akhuwat.There is complete procedure of selection in branch level, Area level and Regional level. In Akhuwat there is two category of department wise in branches and area office these are credit and Accounts and finance .Branch manager recommend the application toward Area office and the the detail of candidate send to the region office to HR department . Need Analysis and the HR Plan:
  19. 19. Employment of organization’s personnel is governed by an extensive Human Resource Plan included in the budget for each financial year which is presented by the Executive Director and approved by the Board of Directors/EC. The Plan is reviewed and if necessary, revised on a quarterly basis. Recruitment on Merit: All recruitment is conducted on an equitable and competitive basis and is strictly on merit. Recruitment Policy Flow: The Board of Directors (through the Board Recruitment Committee) appoints the Executive Director, while the Executive Director makes all H.O, A.O and B.O appointments except auxiliary staff. Probationary period: All officers including first line managers are kept on probation for a period of 3 months. The organization may, at its option extend the probationary period of an employee for periods recommended by the Departmental Head and confirmed by Programmed Manager. Release of Employee Information: The organization will not release employee information to the third party other than required by course of law. However, this does not include the confirmation of the job particulars, package or ethical values of the person(s) as asked by other companies as a part of their background investigation. Policy for Management Trainees: The Management Trainees may be employed in different departments’ i.e. General Management operations Finance, HR & Administration, and IT etc. Trainees will be appointed for the period of three months to support the above departments as and when required. The minimum qualification for hiring a management trainee would be Graduation in any discipline and they will be paid honorariums approved by the Executive Director from time to time. The management Trainees will be offered permanent employment only if necessitated by the workload in a relevant department and financial condition of the organization. Contract appointment: All the appointments in The Akhuwat will be on contract basis for a period as decided by the Recruitment Committee.
  20. 20. PROCEDURE: Personal Requisition: The process of recruitment starts with the completion of a personnel requisition form (3.1) by the competent authority as mentioned below. Requisition by Recruitment committee: Theexecutive committee is responsible for initiating the requisition for the following position:  Executive Director  Creating any new Managerial position in the organizational structure of the organization. These requisitions for above positions would be approved by the BOD, while all other requisitions will be approved by the P.M at head office level. Branch Manager and Unit Manager will be appointed through interview committee consisting of Manager (Admin& HR), Credit Operations Manager and Area Manager. Requisition by PM: The PM is responsible for initiating the requisitions for the recruitment of the Departmental Heads/Organization Secretary. Requisition by the Head of Department: Departmental heads are responsible for initiating the requisition for the recruitment of all staff within their departments and will sent to HR. Rejection of the Requisition: If the requisition is turned down for any reason by the approving authority the same would be communicated to the originator of the requisition. Confirmation and Approval of the Requisition: A requisition would be confirmed and approved by the appropriate authority as defined in the authority matrix. Seeking Applications:
  21. 21. After approval of the personnel requisition, the recruitment authority will seek applications through one or more of the following methods: Transfer/Promotion from within the Organization:  The entire process will be carried through Internal Job Posting (IJP) and details of job profile, candidate profile, eligibility (who can apply), application deadline etc. would be circulated throughout the organization.  Employees possessing necessary skills, knowledge, and experience matching with those required for the job may apply through the appropriate communication channels as prescribed in the IJP. Search from the Data Bank: All resumes that the organization receives from time to time will be stored manually in a separate file and will be kept for a period of one year. For any new vacancy, this file will be searched to find the suitable candidate. Employee Referral: The employees may refer the persons they know, who fulfill the criteria of the vacant position; for this purpose an employee referral form will be utilized. Online Job Portals: The online job portals (like; may be used to solicit applications for recruitment. Human Resource Agencies or Recruitment: Consultants For senior level positions, Recruitment Consultants or Human Resource agencies may be used to attract the suitable applicants if needed. To identify and engage Professional recruitment consultants to help HR to source quality candidates, the following process shall be established. Process guidelines to engage a new Recruitment: Consultants
  22. 22.  Identification of the Consultants based on their current client’s distribution, database size, past performance records & industry feedback.  Negotiate the Terms & Conditions with all the identified consultants and get a one-time approval (from the Executive Director) before rolling out the formal agreement with them.
  23. 23. Advertisement In The Newspaper: The vacant positions shall be advertised in the newspaper of repute for attracting applicants. A draft advertisement shall be forwarded to the Executive Director for review and approval prior to forwarding it to the News Agency for publishing. Short Listing: Once the resumes have been called, the next step would be short listing the suitable candidates for job as per the criteria set out against the vacant positions. All the applications are received and reviewed by the Manager (Admin & HR)(in consultation with the originator of the requisition) and a short list of candidates suitable for interviews is prepared. The rejected applications are filed in a separate folder. Selection Written Test Second Interview Initial interview Interviewing Short Listing Advertise ment
  24. 24. Initial short listing of the applicants would be done for the first interview. After the first interview, applicants would be recommended for the second interview. After which final selection would take place. Interviewing: The Manager (Admin & HR), PM, Credit Operations Manager and Area Manager Schedule interviews of the shortlisted applicants after confirming interview dates with the concerned requisitioning authority. The Program Manager (Admin & HR) prepares and mails interview letter to prospective candidates. It is ensured that:  As far as possible, candidates are informed of interview dates at least one week in advance.  All certificate and testimonials are brought by the candidate at the time of interview.  Two and testimonials are brought by the candidate at the time of interview. Initial Interview: Initial interviews will be conducted by the relevant authority as per the Authority Matrix. If considered necessary, the tests may be administered to evaluate candidate’s competence. The candidates are evaluated on an Interview Assessment Form (3.5) and based on the evaluations the most suitable candidate is recommended. Second Interview: After the initial interviews, second interview may be conducted by the relevant authority as per authority matrix. Written Test: After second interview in Akhuwat conduct the written test of short listed candidates. After few days of test organization announce the result. SELECTION OF CANDIDATE: Based on the performance of the candidates in the interviews (and if needed the test administered), the most suitable candidate would be selected and submitted for the approval as per the Authority matrix. Employment Test: In Akhuwat selection decision is based on employment test. An employment test is a mechanism to measure the certain characteristics of individual. In Akhuwat various test is conducted to check the employee KSA level. This test in written and oral form.
  25. 25. Physical Ability Test: In Akhuwat most of the work is on the field related so for this purpose physical test is conducted and check the tension level of candidate. Personality Test: Personality test is very important in Akhuwat because strong social culture background and positive attitude required in Akhuwat.They test the personality by giving the situation. Work Samples: In Akhuwat work sample test is conducted. Candidates are sending in field visit for a day and work in practical environment. Letters of Regret: Head of HR & Administration would send out the letters of regret (3.4) to the candidates who were shortlisted and interviewed but could not be finalized. (Letter of regret are given in annexure) Selected Candidate: Background Investigation: Background investigation of the selected candidate would be made to cross verify the particulars of the selected individual. That may include confirmation of particulars from the educational institute(s) or employer(s) though phone call etc. /email etc. Reference Letter/Forms: The candidate would be asked to complete the necessary paper work and provide the reference letter for records as soon as possible. Reference Letter (3.6) together with blank Reference Form (3.7) is sent to the references provided by the employee. On receipt of reference letter(s), these are reviewed and filed in the employee's personal folder along with his employment application form.
  26. 26. Appointment Letter and Terms of Employment: Appointment letter with detailed terms of employment prepared in duplicate and Signed by Program Manager (Admin & HR). Executive Director will sign the appointment letter at head office except auxiliary staff. Executive Director signs the Appointment Letters and returns it back to the Program Manager to be used as follows:  Original will be mailed to the successful candidate.  Second copy to be signed by the new employee on the date of joining as evidence of acceptance of terms of appointment. Joining: Once an employee joins the joining report and employee fact sheet is completed. TRAINING & DEVELOPMENT: Training and development is very important function of HRM because every employee need training to fulfill the organizational goal .In Akhuwat training is conducted according to this process. Applicability: This policy provides guidelines on matters relating to the professional development & training of the employees. The purpose of this policy is to spend resources to send employees to training sessions and functions which will benefit the employee and broaden their skill base and knowledge and Akhuwat simultaneously receiving a positive return on their investment. Development Planning:
  27. 27. From time to time Akhuwat deems it appropriate to have employees attend conferences, seminars or training classes for the purpose of enhancing the employees’ industry knowledge and broadening their job-related skill base. For this purpose Akhuwat management will develop a professional development and training plan which take into account of the training and continuing professional development needs of its employees and will form part of the annual budget. Akhuwat will cover the cost of the registration fees, training materials and other course-related expenses incurred by the employee. However, in an effort to ensure that the maximum benefit is obtained from the employee’s attendance at such events or classes, it is the responsibility of the employee upon returning to the office to share his newly obtained knowledge with coworkers. Employees returning from offsite training sessions are expected to spend time with others who would benefit from knowledge of this same skill set, explaining what they have just learned, sharing course materials, giving sample presentations, etc. Additionally, should the employee leaves Akhuwat employment within ninety (90) days of their return date from training sessions, conferences and classes for which organization has paid their fees, The organization be reimbursed by the employee for all costs incurred for said event. In-Housing Trainings: The organization may from time to time arrange in-house trainings for the professional development of its staff. The trainer may be someone from within the organization or hired from outside depending upon the training needs of the employees and availability of the skilled resources to manage the training. Outside Trainings: The organization may from time to time encourage its employees to attend the training courses/certifications/diplomas organized by the training organizations/institutes. The organization may coordinate with these organizations /institutes to registration, payment and feedback regarding the employees who attend the courses offered by them. Sponsorship & Reimbursement: With prior approval from the management, employees are encouraged to take such certification/diploma exams as may be beneficial to the employee in the performance of his or her duties. In case of successful completion, Akhuwat will reimburse the examination fee to the employee. However, please note that prior approval from the management is a prerequisite in such circumstances.
  28. 28. PROCEDURE: Nomination for Attending Training: Approval for Attending Training: Orientation: In Akhuwat every training start from introduction of Akhuwat and history why Akhuwat is made. In which tell about the training why training is conduct why training is important and give detail about the whole training process. Training Title: Firstly, select the title of training. Training is conduct to provide opportunity and broad structure of the development of human resources. Objective of Training: In organizations the objective of training must be clarify. The objective of training smart, simple and every individual know about it. In Akhuwat focus on what will learns individual after finish the training. The main objective of training in Akhuwat is focus on individual behavior and after training they must be able to complete their task effectively and efficiently. Lesson Plan: The employees may either on their own identify the trainings which they need to attend to enhance their job related skills or the management may nominate the employees for attending the trainings which the management feel, are necessary for improvising the efficiency and performance of the employees. For local or outstation branches departmental head will nominate the name of the staff to Training Coordinator or HR department at head office. In either case, written approval of the management will be sought as to the mode of training (In- house or outside) and sponsorship limit (whether full or partial) as per matrix.
  29. 29. In Akhuwat the lesson plan prepared is contain of following things:  Topic  Training content  Summary of key point  Timing and planning of each activity  Instructor  Trainee supplies  Training method  Questions test  Conclusion Material or Handouts: Training material use in Akhuwat mostly training manual or Akhuwat hand book for the basic instructional material, reading, exercises and self-test. Program out lines provided beginning of the training. Program outlines contain of the content, goals and training schedule. Description of Trainer: The trainer in Akhuwat must be specializing in work and they must be able to deliver the knowledge, use various, have interpersonal skills, and ability to motivate the other person. Training Method: In Akhuwat the mostly training method use is on the job training. Training is conducted in a specific location they designed for training. The training method use in Akhuwat is job instruction training in which the person specializes in training or in work gives the training. Schedule of the Program: The schedule of the training program in Akhuwat is simple and straight forward and easily understands for every person. The main focus on the learning task and trainer or learner attention must be on goal in scheduling.
  30. 30. ActivityTime Saturday Program introduction Initial experiential activity Discussion on the problems 9:00 – 11:00a.m. Break11:00-11:30 a.m. Brainstorming session on topic Experiential activity Group juggle 11:30 a.m. - 1:00p.m. Lunch1:00-2:00 p.m. Discussion on the topic and activity results Final discussion on the training topic Evaluation 2:00-4:00 p.m. Implementation: After that the whole process implement and ensure that the effective outcomes. Deliver the program and then evaluate it. Training evaluation: Examination the outcomes they should be related to program objective and trainee understand the purpose of the program.Effective and cognitiveoutcomes develop in trainee. Trainee able to
  31. 31. complete their work with effectively and they must be motivated. In Akhuwat trainingevaluation form is filled from employee. PERFORMANCE MANAGEMENT: Performance Management In Akhuwat: In Akhuwat there is performance is check at the end of each financial year these are the points that kept in mind in appraisal.  Audit report  Financial reports  Internal audit point PRODUCTIVITY PERFORMANCE APPRAISAL REWARD
  32. 32. Performance Appraisal System: It includesa 360 Degree assessment of the reporting officer by the reporters. This gives Senior Management the opportunity to get the feedback from the staff about the performance of their seniors. The results from 360-degree feedback would also help in planning the trainingand development of the employees while the results from traditional appraisal help in making administrative decisions, such as pay or promotion. In Akhuwat performance is measured by:  Supervisors  Stakeholders  peers  Team member  Employees  Multisource Graphic Rating Scale: Category rating method use in Akhuwat to measure the performance of the employees by supervisors and managers. Most of the time Graphic rating scale method use in Akhuwat. In this method to measure the employees performance and quantity of work and quality of work and scale value. PROCEDURES: Schedule For Performance Appraisals: Schedule Interviews: Administration and HR Department will notify the appraisers. Executive Director in respect of the Departmental Heads and Departmental Heads in respect of all the other employees) of the upcoming performance appraisals.
  33. 33. Appraisers to schedule half an hour sessions for each employee. Inform Employees: Appraisers to inform employees at least one week before the scheduled interview. Preparation For Review: Appraisers review the last appraisal reports and the target and goals set for the individuals before the meeting. Performance Review And Agreement: Administration department to provide Appraiser with appraisal form All employees will undergo appraisal interview including setting performance targets and goals for the next time period.Appraiser to complete forms for respective staff.Management review & Feedback from Other Sources Administration would work with all the employees and external sources to arrange for feedback for all employees form their peers, seniors, subordinates and external sources. Once this complete, then the feedback for all the employees is compiled in separate files. Procedure To Conduct Performance Appraisal: AKHUWAT’s performance Appraisal is based on the following:  Should be supported by facts and for this purpose adequate records are maintained.  Goals set are used to evaluate progress.  Systematic collection and feedback of performance data from a number of the stakeholders (peers, direct reports, Departmental Heads, internal customers).  Encourages two-way communication.  Communication of shortcomings.  Versatile and open-minded. (Performance appraisal form given in annexure) COMPENSATION MANAGEMENT: Employee Remuneration And Benefits: All salary changes can factor into the written performance evaluation. However, the annual review is not the only indicator to determine compensation changes. The Akhuwat strives to reward individual performance, be market competitive, and remain comparable with The
  34. 34. Akhuwat operating budget. All increases must be within the budgeted guidelines approved by the Board of Directors each year. Exceptions must be approved by the Executive Director. Performance Review Salary adjustments are effective from first of July in each year. MDPAllowance: MDP allowances are provided employees of Akhuwat after every three months. MDP allowances provide the employees who are effectively perform the job tasks. Performance Allowance: All the employees who have completed at least three months in a department at the Akhuwat would be eligible for the annual performance appraisal. The deadline to complete this process will be 15th of June every year. The incentive/raise model would be as follows based on the weighted averages of the employees in the performance appraisal; ‘00-40% No incentive or raise ‘41-60% as approved by ED ‘61-80% as approved by ED ‘81-100% as approved by ED Special Bonus Allowance: In Akhuwat special bonus allowance provided to employees on their annual appraisal about the special assignments the management give it to them time by time. Eid Allowance: Akhuwat provide the Eid allowances to employees. Eid bonus offering 30% of gross salary given to all employees on everyEid. LEAVE POLICY: 1. In case of any leave employee will get written approval from E.D/Competent Authority. 2. 24 leaves are allowed in a year. Deduction from salary will be done in case of more leaves above 24 days.
  35. 35. 3. In case of more than three sick leaves a medical and fitness certificate will be provided by the staff to Competent Authority. 4. Leave encashment policy will finalized later on. Short Leaves: Personal work during office hours is not permitted; however in exceptional cases/hardships, an employee may be permitted to attend to personal work during office hours. Short leave/late arrival in excess of three (3) hours is treated as half day off.Head of the Department, depending on the merits of the case approve or reject the application. In case of approval, the employee hands the approved application to Administration Officer. The Administration Department will record the time 'out” in Attendance Register. If the employee returns the same day during working hours he/she informs, Administration Department to note the time 'in' on the application for short leave. In case, absence is for more than three hours adjust the employee’s leave records. LABOR RELATIONS: In Akhuwat they don’t have any labor union because all the matters are solved between the management and the labor in a decent way. HEALTH & SAFETY: Safety Alarms: The security alarm will be placed in the premises of the organization so that all the employee may be warned in case of any emergency situation which may include fire, earthquake or other such event. Fire Extinguisher: The fire extinguishers will be placed at appropriate place in the premises to use these in case of any unfortunate event.
  36. 36. HR MANAGEMENT CHALLENGES: The human resource management faces different kind of challenges in the organization: Growth of information technology. Education of the workers in basic skills The most important is the retention of the employees. What made the organization Successful? These are some factor that makes Akhuwat successful in the presence of other competitors.  Organization Goal is different from other.  Provide interest free loan  No security deposit  Concept of brother hood  Giving respect to borrower Conclusion: After reviewing and studying of the company we conclude that the “Akhuwat” has a well structured and well controlling organization. And the financial position of organization is stable because the government of Punjab is supporting this organization. And it is working for needy people who want to betterment in their business “Akhuwat” is fully supporting that people.
  37. 37. 1: Why is human resource management important to all the managers?. 2: What is the basic objective of HR department in this organization? 3: Which is the most important function of human resource management? Planning, Organizing Staffing, Leading Controlling? 4:How is strategic planning related to HRM? Why there was the need to shift personnel management into human resource management? 5: What kinds of challenges are faced by the HR management in the organization? 6: is there any concept of international HRM? 7: What techniques does your organization use for forecasting the supply of employees? 8: what are the methods that are used for forecasting? 9: Did your organization ever follow the DOWNSIZING approach? 10: Is there any job description rule for new applicants? 11: How does job rotation policy takes place in your organization? 12: How is performance management evaluated in your organization? 13: From what type does your organization collects job analysis information? 14: How the recruitment procedure in your organization? 15: What internal sources you can use for recruitment? 16: What external sources you can use for recruitment?
  38. 38. 17: During the recruitment process of the new employees, what type of recruitment complexities are faced by your organization? 18: What types of interviews are conducted? 19: During the interview how much you give importance to the things such as snap judgment, non verbal behavior and impression management? 20: Is there any process for socialization of new employees? 21: Who does socialization in the organization? 22: Is there any orientation program arranged for new employees? 23: Is there any policy for the training of the employees? 24: Do you follow any succession planning process? 25: Which method you adopt for hr purpose of the delivering of the training? 26: What do you do for the career development of the individual employees? 27: How you can assess the need of training. Define the procedure which you can follow? 28: What method you can use in delivering training? 29: Are there any compensation criteria which you can follow? 30: Do you have any evaluation process for training programs? 31: What do u think the most important and effective way of motivation of the employees? 32: Is there any work flow analysis system in your organization? 33: What type of compensation is given to the employees? 34: What kind of INTRINSIC REWARDS are given to the employees? 35: What types of FRINGE benefit are given to the employees? 36: After how much time you conduct performance appraisal? 37: How do you ensure that employees are protected while working in your organization? 38: Describe the performance management system in your organization? 39: Which elements are taken into consideration during the factor comparison method?
  39. 39. 40: Describe your gain sharing system? 41: What is MBO measurement system in your organization? 42: Is there any labor union? References: H.R Manager (Akhuwat) Malik ShahidSaffdar E-Mail: Website:
  40. 40. First of all we would like to thank Mr. Shahidsafdar (HR Manager) for giving us his precious time. In Akhuwat we were well treated. Everyone was quite friendly and they provide us relevant information to extent they could provide.