The document provides details about the human resource management practices of BYCO Petroleum Pakistan Limited. It discusses BYCO's profile, human resource department structure and functions, challenges, planning, recruitment and selection process, training and development, compensation and benefits. Key points include BYCO practicing both internal and external recruitment, aggregate planning using the Delphi technique to forecast demand and supply, succession planning to identify potential employees for senior positions, and orientation and training programs for new employees.

1. Project
Submitted To
Respondent's Name
Organization
Department / Function
: Human Resource Management
: Sir Salman Abbasi
: Muhammad Raheel
: BYCO Petroleum Pakistan Limited
: Human Resource Management
Designation of Respondent: Recruitment Officer
Date of Visit : 13-May-2014
Name of Group Members :
: Shakir Ullah
:Masroor Abbasi
Date of Submittion Report: May 15, 2014

2. ExecutiveSummary:
A million grateful thank to Allah the almighty that gave us the perseverance to
complete thisproject, which was indeed adifficult one.
We are very thankful to our teacher Mr. Salman Abbasis for assigning us this
report.
This was a totally new experience for us to get the information, as to how companies
do HRM practices,
We are also thankful to Mr. Muhammad Raheel (recruitment officer BYCO) for
hisprecioustime,inwhichhesharedBYCOpracticeswithrespecttoHuman
ResourceManagement.
The report is an effort to identify different aspects of Human Resource
Management in BYCO, which is one of the major players in the petroleum market in
Pakistan.
An integral part of the report is detailed analysis of the human resource
managementaspectincludinghumanresourceplanning,recruitment&selection,
Performance appraisalTrainingand development, compensationbenefit, time
management and performance appraisals are also discussed.
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3. TABLE OF CONTENTS
CONTENTS PAGE#
COMPANY'S PROFILE (MISSION, VISION, VALUE).03-04
HUMAN RESOURCE DEPARTMENT'S ROLE: .05-05
HUMAN RESOURCE DEPARTMENT'S FUCTIONS: 05-06
HUMAN RESOURCE DEPARTMENT'S CURRENT CHALLENGES: ..06-06
HUMAN RESOURCE PLANNING: ....07-09
RECUIREMENT PROCESS & SELECTION FLOW CHART: ..10-11
SOURCES OF RECRUITMENT: .11-12
MOST EFFECTIVE SOURCE FOR A VACANT POSITION: 13-13
TEST AND INTERVIEWS IN BYCO: .13-13
ESSENTIALS QUALITIES BYCO LOOK BEFORE HIRING EMPLOYEES: .13-14
TRAINING AND DEVELOPMENT CONTRIBUTION: ....14-15
TRAINING AND DEVELOPMENT OPPORTUNITIES: 15-15
TRAINING PROGRAMS: .16-16
TRAINING AND DEVELOPMENT CYCLE: ......17-17
ORIENTATION TO NEWLY SELECTED EMPLOYEES: 17-18
EVALUATE PERFORMANCE OF EMPLOYEE18-18
MAINTAINING EQUITY: 19-19
SALARYBANDS: 19-19
MAKING SALARY OF A NEWLY SELECTED CANDIDATE: ..20-20
PERKS AND BENEFITS: .20-21
STANDARD JOB DESCRIPTION FORMAT: .22-23
CONCLUSION:.24-24
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4. COMPANY'S PROFILE:
BYCO Petroleum Pakistan Limited (BYCO) formerly known as Bosicor Pakistan Limited, is established
in June 14, 2003 BYCO is Pakistan's emerging energy companies engaged in the businesses of petroleum
marketing, chemicals manufacturing, petroleum logistics and of course oil refining and production of
petroleum products. The company refines crude oil into various saleable components such as, high speed
diesel, liquefied petroleum gas (LPG), motor spirits, high octane blending components, kerosene, jet
fuels, furnace oil and naphtha. Company through its refinery at Mouza Kund site; possess a design
capacity of 35,000 barrels per day.
Company's first retail outlet was established in July 2007. Now it's operates more than 213 retail outlets and
sells its products in the United Arab Emirates, Taiwan, Oman, India, and Afghanistan. The company
is headquartered in Karachi, Pakistan. And they are serving their mission to fulfill the energy demand
within and beyond borders.
MISSION:
"Our Mission is to proactively invest to develop infrastructure in order to become a single source chain
for meeting the economy's chemicals, energy, petroleum and petrochemical requirements, thereby provide
the best possible returns to our stakeholders."
VISION:
"Our Vision is to develop our
company on ethical and
professional basis in order to steadily
grow and become a
valued contributor to the
economy and a respected
corporate entity."
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5. VALUE:
BYCO values are the guiding principles that define how it conducts its business and what it stands for as
a company. This includes:
Setting high standards of care for environment, health and safety.
Investment in human capital, offer competitive employment terms and provide safe and congenial
working environment and an equal opportunity for all our employees.
Entail human resource development and promotes openness, professionalism, teamwork and trust.
Enhancing value addition, implementing conservation measures and growth up-gradation through
addition of newer generation technologies.
Credibility, goodwill and reputation earned through ethical practices, honesty, integrity and respect
for people.
Safeguarding of shareholders' interest and providing them with a consume rate return on equity is
an integral part of our business ethics.
These values are the basis of our commitment to operate as a sustainable energy company.
We are engaged in manufacturing of a wide range of petroleum products with the
objective to achieve sustainable productivity, profitability and high standards of care for
environment, health and safety.
BYCO's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into
various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy
Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High
Speed Diesel and Furnace Oil. We are also expanding our refining complex by setting up
another refinery with the capacity of 120,000 barrels per day which is near to completion.
We take pride in having the largest capacity crude oil storage tanks in the country. Our
petroleum distribution network support
movement of petroleum products and provide
greater economies of scale.
Our marketing network supports retail outlets in
more than 80 cities all over Pakistan and is an
emerging leader in oil marketing sector of our
economy.
Our diverse and highly skilled workforce
consists of approximately 600 dedicated
employees shared among BYCO companies.
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6. HUMAN RESOURCE DEPARTMENT'S ROLE:
If we look at the hierarchy of any organization, we found HR as a department but, HR is not just a
department, it is a strategic partner that equally contributes in the success and performance of the
organization.
In BYCO, HR department provide services, services in terms of training and development, services in
terms of recruitment & selection, services in term of performance appraisal, rewards and etc. In case of
any disciplinary problem HR representative also solve it, in short HR department is a department who is
responsible for all the issues, problems and solutions in respect of human resource. In addition to these,
like in every developed organization, HR also maintains the database of employees retains them and
aligns them with the company's goals.
Q.No.2: How many functions of HR do you have in your company? Please, provide brief about their
responsibilities.
HUMAN RESOURCE DEPARTMENT'S FUCTIONS:
In BYCO, HR department has following functions:
They have Recruitment & Selection, Compensation & Benefits, Industrial Relations, Time Management,
Performance Management, and Training & Development includes in Performance Management.
Recruitment & Selection:
For recruitment BYCO practicing both sources internal & external, in internal sources at the time of
appraisals BYCO ask their employees via the emails that if any employee has an interest in other
department he / she can write. Core advantage that mentioned by BYCO for doing internal sources, that it
gives motivation to employee and increase their morale. For external source, BYCO place ads in
newspaper, consult with head hunters, also visit job portals, BYCO has its own maintain website word of
mouth networking and employee referrals also in practice.
Compensation & Benefits:
In compensation & benefits include payroll, funds management, management's objective and rewards.
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7. Time Management
They have a separate section of time management; there is no flex time, office timings are 9 to 6 and
plant timings are 8 to 4, different locations has different timings. Our time management section monitors
these timing.
Performance Management:
Performance appraisal, training structure and training & benefit section exist in BYCO, performance
appraisals are evaluates on fiscal year.
HUMAN RESOURCE DEPARTMENT'S CURRENT CHALLENGES:
As we all are aware of the fact that the industries in Pakistan is in crises, so as the oil refinery industries
also. As per BYCO, being in crises, they are in the phase of commencing. Currently BYCO is working on
the capacity of 30,000 barrels per day and they are extending its capacity to around 115,000 barrels. For
that they are installing new refinery, and as with an increase in capacity they are in need of more human
resource. As per BYCO, the biggest challenge that they are currently facing is they have to recruit more
than 300 organization fitted employees within the period of 2 to 3 months, in order the meet the future
demand of the human resource. Job fitted persons can easily be hired but the main problem is that to
search for organization fitted persons. The reason for searching an organization fitted person is that in
future they can easily be rotated, shifted and promoted to different departments etc.
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8. HUMAN RESOURCE PLANNING:
In BYCO, the key facet of Human Resource Planning (HRP) is that it is proactive in nature. It attempts to
plan and what might happen in the various domains of the organization and to develop plans to address
these events prior to their actual happening. As we know that HRP is the first component of HRM
strategy.HRP goes far beyond simple hiring and firing. It involves planning for the deployment of the
organization's human capital in the most effective ways in line with organization's strategy.
Two types of planning:
Aggregate planning
Succession planning
AGGREGATE PLANNING:
Basically when we needed for groups of employees in lower level jobs we do aggregate planning. For
aggregate planning, they use DELPHI Technique. In such planning, the departmental heads inform HR
department about their need of human resource, then HR department acts as an intermediary and
summarizes the requirement and check that do they really need that or not. The reason for such cross
checking is that if the need is for time being then it will cost the organization after meeting the objective
for which they were hired. So in order to control and to be on equilibrium point with respect to the
demand and supply of the human resource, effective aggregate planning is necessary. BYCO has
following steps in aggregate planning.
STEP 1 • ENVIRONMENTAL SCANNING
STEP 2 • FORCASTING THE DEMAND FOR EMPLOYEE
STEP 3 • FORCASTING SUPPLY
STEP 4 • MEETING OF DEMAND AND SUPPLY
STEP 5 • EXECUTION OF PLAN
STEP 6 • CONTROL AND EVALUATION
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9. 1. ENVIRONMENTAL SCANNING:
First BYCO scans its environment. Environment scanning includes both External environment and
internal environment. In External environment they search the cause of the human resource demand
in future with respect to Political, Economical, Social, Technological, Legal and the Competitors as
well. On the other hand, in Internal, they check their future plans, budgets, production and sales
forecasts and other factors related to human resource for example retirement, turn-over, terminations
and deaths etc.
2. FORECASTING THE DEMAND OF EMPLOYEES:
In this step, they forecast the demand of human resource. As mentioned before, BYCO follows
Delphi Technique. In this technique, departmental heads informs HR about their need of human
resource and then HR department act as an intermediary and summarizes the demand.
3. FORECASTING SUPPLY:
The third step in aggregate planning for human resource is forecasting supply. In this step BYCO
checks that whether the supply should be from internal or external. Internal supply would be when the
current employees of the organization are promoted or rotated, whereas in external supply, people
will be attracted from the market.
4. MEETING OF DEMAND AND SUPPLY:
In this step HR Programming reconciles the forecasts of the demand and supply of human resource.
This step identifies the potential shortage or surplus of employees and the measures to be taken to
ensure that personnel demand equals personnel supply so that equilibrium can be achieved.
5. EXECUTION OF PLAN:
Now the plan is putted into action or the execution of the plan is done at this step.
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10. 6. CONTROL AND EVALUATION:
After the execution of the plan, proper check and balance has to be done so that the plan can be
control and evaluated.
The above mentioned steps are for aggregate planning and are followed in every period so that the
equilibrium of demand and supply can be achieved because if the supply exceeds and people hired before
they are needed than the company have to bear the expense. Whereas when demand exceeds and people
are hired less than needed than the company again have to bear the loss which will be results in low
productivity of the organization.
SUCCESSION PLANNING:
In succession planning, successors are trained and developed in order to replace the senior position when
the person at that position retires, expire or leave the organization. Succession planning serves two
purposes:
- It facilitates the transition when an employee leaves.
- It identifies development needs of high potential employees.
In BYCO, HR department identifies the potential employees who will be promoted to senior positions
when that position vacant, or rotated. Normally
BYCO promotes the juniors to the senior position
when that position vacant and ultimately when
juniors are promoted to the senior positions, then for this
position recruitment and selection starts.
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11. RECUIREMENT PROCESS & SELECTION FLOW CHART:
After the personal requisition form being received from concerned department to HR department, HR
recruiter works starts, first he schedules meeting with department's head when he realized the need a
manpower is exist, then he figured out about internal and external source if in case of internal they see on
papers at the time of appraisal which employee was interested and which has potential to do the job so
they rotation him / her, if in case of external they place the job in news paper, company's website and
visit job portals, and also take resume from headhunters then they screen them, and share with
department's supervisor, when department's supervisor give us ok sign they call candidate for an
interview.
It includes simple Math, English and IQ question
If candidate qualifies,
First level interview conducted by Line supervisor with HR person
If absence of HR person, candidate has to give interview again with HR person,
In a second level department's head takes candidates Interview,
Usually HR Person also sit in this interview because of avoid biasness.
Now offer the job to candidate
Medical test
No provision period candidate gets permanent with his / her first day,
When finally job offered, and letter gives to candidate, he / she must resign
his / her current Organization.
After resigning current organization, BYCO perform reference check.
If reference check done earlier candidate credibility in current organization might be hurt.
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12. Here question arise if a candidate resign a job and accept BYCO's offer, and in reference check
candidate found illegible or in any other case If BYCO want to fire an employee, they give them one
month period notice and in the case of employee wants to resign he also has to inform BYCO before one
month.
It's a standard flow chart that mentioned previous page but Interviews depends on hierarchy, every
candidate gives at least two interviews or more than two.
SOURCES OF RECRUITMENT:
Every organization has the option of choosing the candidates for its recruitment processes from two kinds
of sources:
1. Internal Sources
2. External Sources.
BYCO exercise both sources for creating the pool of candidates for recruitment.
1. INTERNAL SOURCES:
The sources within the organization itself (like transfer of employees from one department to other,
promotions) to fill a position are known as the internal sources of recruitment.
2. EXTERNAL SOURCES:
External Sources are the sources in which a pool of candidates is created from the external sources.
BYCO uses the following external sources:
JOB ADS:
Job Ads (Print Media)
Head Hunters / Consultants
Job Portals
Placement offices of Universities.
Word of mouth or Networking or Employee Referrals.
Company's own website.
BYCO creates the pool of the CVs by placing an ad in print media. It is helpful in collecting a huge
number of CVs but at the same time it's a time consuming because the company have to short list that
huge number, so BYCO usually avoids in publishing their Job Ads in print media but they use this option
also.
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13. HEAD HUNTERS:
They utilized the services of head hunters also in recruitment. This option saves their time and helpful in
getting the CVs which are related and match their requirement. In short they save their sufficient time
while utilizing this option.
JOB PORTALS:
BYCO uses the Job Portals as well. They use the services of ROZEE.PK and LINKEDIN as well.
PLACEMENT OFFICES:
BYCO uses this option when they hire fresh engineers specifically.
EMPLOYEE REFERRALS:
BYCO use this option specifically when they are need of technical staff. According to BYCO, when they
need technical staff, they float that information among employees. By doing this, it helps BYCO is
getting of the candidates that will be aware of the culture of the organization, working conditions and they
also gets the reference from the existing candidates of the organization.
BYCO'SWEBSITE:
BYCO has a website where the interested candidates upload their CVs. So BYCO use this option also
when there is a need and gets the CV from their database.
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14. MOST EFFECTIVE SOURCE FOR A VACANT POSITION:
For BYCO, the most effective source with respect to time and cost differs from situation to situation and
from position to position. For example, if they need a person to fill a vacant position of junior level, than
they go for the Company's maintain database and Job portals. If they need a person on technical level,
than they float the information among employees. For
BYCO, employee's reference is the most effective source
for hiring of a technical position at junior level. The
reason for this is, by the help of this type reference only
those people will be screened who are aware of the
working conditions, organization's norms and customs,
in short they get the organization fitted person by this
source. Whereas for senior positions, they search the
right candidate and exercise any of the option just to get the
best one.
TESTS AND INTERVIES IN BYCO:
In BYCO, before hiring a candidate, during selection process, his or her potential is check on different
phases accordingly. Suppose BYCO is searching a person for a technical position, then in this scenario
the questions in interviews and tests which they will conduct will majorly depends upon the testing of
technical skills and the abilities of the candidate necessary for that position.
Generally on initial basis, BYCO conducts a test which is based upon the questions related to ENGLISH,
MATHS and IQ. They do ask questions related to General Knowledge as well. But as mentioned, the
nature of questions and tests differs from position to position. For junior levels, they do this test
(mentioned above), then in further process candidate has an interview in which BYCO checks the
potential by giving them scenario and most importantly by probing.
For senior positions, they avoids proper tests on initial levels, the need of test on that level is adjusted by
interviews, means they ask questions in interviews which eliminate that gap. But in further process, they
do test them by giving scenario based questions in which they check their ability of making decisions. If
that candidate past that tests and interviews, than they test the stress management of the candidate which
as per BYCO is more important test for senior positions. This is a general view but the tests and
interviews are adjusted as per the positions they are looking for.
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15. ESSENTIALS QUALITIES BYCO LOOK BEFORE HIRING EMPLOYEES:
BYCO targets graduates who exemplify BYCO's values and are committed to achieving commercial
outcomes through technical excellence. Applicants will need to demonstrate effective communication
skills and strong problem solving, analytical, time management and organizational abilities.
They are keen to hear from applicants who are willing to strive for high quality results working in a
dynamic and challenging environment and be flexible in their work locations.
Unlike other organization BYCO petroleum limited also hire a person keeping in mind that the person
should be the right one that is He or she should be best fit for the organization. The person should adjust
according to the organization's culture
TRAINING AND DEVELOPMENT CONTRIBUTION:
Training and development section is a key section in HR department that helps in filling the gap between
employees' abilities and organization's expectation. Similarly in BYCO petroleum training and
development is done in order to satisfy the company needs. Being an Oil refinery company, BYCO has to
meet the changes and challenges faced by the petroleum industry, in order to be a competent in the
market. If the organization did not adjust with the changes in the industry than its productivity can be
affected, which will ultimately results in loss of the market share, which any of the competent
organization don't want to. The changes may be of Political, Technological, Legal, Social, Economical or
Natural. So if the organization wants to be productive in accordance with the global or industry changes,
than their employees should be trained so that they can easily meet the changes.
In BYCO, Training and Development section of HR department, meets the organizational needs.
Organizational needs can be of two types:
MICRO NEEDS:
These are the needs for a small group of people within the organization. Micro needs appear when:
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New employee are hired and their needs will be the knowledge about the organization,
departments etc. These needs can be fulfilled by giving Orientations.
When a person is rotated or promoted to another job or position, then the expectation from that
job or position and the abilities of that employee have to match by filling the gap between two,
through training.
When a special task is assigned to the group then there a training need appeared.
When people are identified as high potentials than in order to perform well, they need training.
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16. Apart from the previous page mentioned needs, there might be other needs as well for a small group of
people. Thus the needs for small group are the micro needs for training.
MACRO NEEDS:
These are the needs for a large number of employees of the organization. It may include:
Technological change in the organization.
Whole department has to give precautionary training of safety, health etc.
A plant is extending like in the BYCO, they are extending its capacity from 30,000 to 115,000
barrels per day.
In BYCO's HR department, its training and development section plays a very important role because they
have to check through performance appraisals or the organizations needs that whether the employees
performances are meeting the expectations of the organization. If not, then they must train and develop
them.
TRAINING AND DEVELOPMENT OPPORTUNITIES
In BYCO petroleum employees have not only the chance to meet their current requirement but they also
have great opportunities to develop themselves. Instead of providing and satisfying the current needs
BYCO petroleum also offer programs for the development of employees, one of the programs BYCO is
offering is that if some of their employees has unfortunately missed or have not received the education
due to some circumstances and if he is willing to complete his education, BYCO petroleum is offering
such programs in which the interesting employees are requested to fill a form. This form is filled at the
end of the fiscal year.
This appraisal form is also used for the employees who are willing to serve their expertise in some other
department. During the appraisals a keen review is done
and if the HR and requisite department is willing to have
the new hiring or if they found that this job rotation will
play a key role in the achieving the organization goals
and as well as the development of the employee.
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17. TRAINING PROGRAMS:
BYCO also send their employees outside Pakistan for training purpose when found necessary. It depends
upon the situation or training that is needed and to be given to the employees. Like in current scenario, for
the plant which is imported and which will refine additional 85,000 barrels, they send their engineers for
the training outside the Pakistan from where they learned about that plant right from its installation to its
operations. Though it is an expensive approach but it is not as much as in comparison of the future
expected benefits from that plant. Now those trained engineers are currently installing that plant and in
meanwhile train others also about the operations of that plant.
Every organization needs well-adjusted, trained and experienced people to perform its activities. As jobs in
today's dynamic organizations have become more complex, the importance of employee education has
increased. Employee training is a learning experience, it seeks a relatively permanent change in
employees that their improve job performance. Training involves changing skills, knowledge, attitudes, or
behavior. This may means changing what employee know, how they work, or their attitudes toward their
jobs, coworkers, managers, and the organization.
.
BYCO recognizes the strategic value in recruiting new talent at graduate level and provides excellent
opportunities for growth and development through our two-year Management Trainee Program. BYCO
targets graduates who exemplify BYCO's values and are committed to achieving commercial outcomes
through technical excellence. Applicants will need to demonstrate effective communication skills and
strong problem solving, analytical, time management and organizational abilities.
"We are keen to hear from applicants who are willing to strive for high quality results working in a
dynamic and challenging environment and be flexible in their work locations". (Mr. Amir Abbassiy CEO
BYCO).
BYCO's Management Trainee Program provides accelerated career development incorporating on-
the-job technical training and specialist development activities.
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18. TRAINING AND DEVELOPMENT CYCLE:
ANALYZETRAININGANDDEVELOPMENT
IDENTIFYTRAININGPLANS
PREPARINGTRAININGCALENDER
LECTURESANDCOURSEIDENTIFICATIONS
LOOKFORINTERNALSOURCE
LOOKFOREXTERNALSOURCE
CONDUCTTRAININGSESSIONS
WASTRAININGEFFECTIVEANDHELPFUL
YES
RESULT
NO
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19. ORIENTATION TO NEWLY SELECTED EMPLOYEES:
Yes, we give orientations to our new employee so that they will know some part about the company
before starting work. The main purpose of orientation is to provide guidance and direction regarding the
development and implementation of comprehensive employee orientation programs within departments,
in order to support, welcome and recognize employees, as they start a new job within government.
BYCO's main objectives of orientations are:
Gain employee commitment,
Reduce their anxiety,
Help employees to understand organization's expectations,
Convey what they can expect from the job and the organization. It is commonly followed by
training tailored to specific job positions. See also acculturation and company orientation.
The things covered in orientations are:
An overview of the structure of BYCO, and roles of founder chairman and CEO,
Overview of organizational structure, ownership structure and location,
Introduction and information of each departmental head,
Information about BYCO's strategic direction and vision and examples of strategic initiatives,
An overview of departments, including cafeteria and structure,
Information about mission, vision and values,
BYCO's corporate social responsibilities,
Information about as a preferred employer, and pride in our workplace,
Information about working in BYCO, including an overview of management manuals, corporate
planning, budgeting, business planning, and performance management processes.
EVALUATE PERFORMANCE OF EMPLOYEE
BYCO evaluate performance against their Key Performance Indicators (KPIs), Standards or the
predefined benchmarks. These evaluations are kept confidential and so the measures of evaluating the
performance as well. HR in BYCO maintain the records of the performance and they compare that against
the organizations standards and the past record of the employees, if BYCO found a down fall in the
performance of an employee than they do search the reason for that downfall. If they still saw a potential in
candidates, and found the reason because of external factors than they figure out that by either means
of training, development, rotation on depending upon the case may be. On the other hand, if a candidate is
continuously performing bad and in spite of several warnings or necessary measures, he is not meeting
the organization's expectations than he will be given a month notice and then his job will be terminated.
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20. MAINTAINING EQUITY:
BYCO as mentioned is currently in the phase of commencing, so compensation management is of more
importance to the company. They not just have to retain its existing employees but they have to attract
new from the industry as well. So maintaining internal and external equity is really important for them.
Though the company did not share its strategy that how they maintain their internal and external equity
because of the confidentiality, but they do share that they have to maintain that in order to keep their
employees motivated. If their employees found that they are getting low as compared to the person in the
same industry or in comparison of the person from the same organization, than they will become de-
motivated resulting either the performance of the employees affected or they might switch and leave the
organization.
SALARY BANDS:
Like most of the organizations have salary bands, similarly BYCO has also different salary bands for
different designations for employees. According to BYCO, these bands helps the HR department while
hiring a new candidate for the job, because BYCO is currently in the phase of commencing, so in order to
give the candidate a good package, they restrict on that particular salary bands so that equity is maintain
between the employees of the same designation. These salary bands are kept confidential. The reasons for
keeping the bands confidential are:
At the time of hiring the candidate, if the candidate knows about the bands then he or she may try to over-
sell in order to get maximum salary package.
If the existing candidate knows that the bands upon which they are standing and the limits of that bands,
this may create insecurity of the job with them. In security in a sense that for example, a person is on
salary band which is from RS 25,000 to RS 40,000 and he
is currently getting RS 38000, that person knows that the
band on which he is has a maximum limit of RS 40,000, so
he might starts thinking to switch the job if he has a
potential or he might be de motivated and stop himself by
performing the way he performed in past.
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21. MAKING SALARY OF A NEWLY SELECTED CANDIDATE:
While making the salary for a newly selected candidate, BYCO's practice is their HR department first
look at the salary bands of the position for which they are selecting the candidate. After that they consider
the candidate's age, experience, qualification and most importantly his current salary if he is coming from
any organization.
There are two strategies that BYCO follows:
If they are hiring any fresh candidate, which means that the candidate is recently completed his
education and don't have any experience, then BYCO consider his past achievements and sign of
achievement, that the candidate have in his education, internships and in some cases the projects
upon which the candidate works in his academic life.
If the company is hiring a candidate that have an experience, then the company, as mentioned
earlier, consider his age, experience and most importantly his current salary which he is currently
getting in the organization he is currently associated with. The reason for considering the current
salary is as the company is currently in the phase of commencing and they extending its capacity
from 30,000 barrels per day to 115,000 barrels, so in order to attract the candidates from the
competitors or from the market, they have to offer attracting packages to the candidates so that to
handle the challenge that BYCO is currently facing that is they have to hire around 300
experienced candidates in 2 to 3 months. Though the company is currently offering attractive
packages to their employees, but they also have to consider their established salary bands and the
equity among employees as well.
PERKS AND BENEFITS:
Other than salary, BYCO offers some other perks and benefits to their employees in order to keep them
motivated and to retain them as well. They offer medical allowance, bonuses, leave fare assistance (LFA),
provident fund and some other allowances.
MEDICAL ALLOWANCE:
The company provides medical allowance to their employees in order to meet their medical needs. They
have a different percentage for the medical allowance depending upon the hierarchy or designation of the
employees to whom they are giving medical allowances. If in any case the need exceeds from the limits
than the additional amount will be bear by the employees themselves.
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22. BONUSES:
Company provides bonuses to their employees on annual basis. The amount of bonus is not fixed and it
changes depending upon the goals and objectives achieved and the performance of the company.
LEAVE FARE ASSISTANCE (LFA):
Leave fare assistance (LFA) is an allowance in BYCO in which a sum of amount is kept in hold of the
monthly salary and at the end of the year the company adds more amount in it and allows the employees
for annual vacations by paying that total amount. That allowance might be different from organization to
organization but BYCO has this practice.
PROVIDENT FUND:
Provident fund is an allowance in which a certain sum of salary is kept by the company on monthly basis
and the company equally contributes the amount and accumulate it up-to the period the employee remains
part of the company. The time when that employee leave the organization whether he switch the job or he
got retired, that accumulated sum is handed over to him.
OTHER ALLOWANCES:
Apart from the above mentioned allowances, the company also offers some other allowances depending
upon the department from which the employee belongs. For example the company gives fuel allowance
and mobile allowance to the employees
from sales department. They give travelling
allowance to the employees who have to travel
from the office from one city to the office in
other city. In addition to this they
also give education loans to their
employees in order to complete the
education which will benefit the
organization in future.
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23. STANDARD JOB DESCRIPTION FORMAT
BYCO do have standard job descriptions for their employees which helps them in defining the
designation, type, duties, responsibilities, number of person who will report, to whom
report and all the related information that a typical Job
Description (JD) has. The company did not share its JD but
do share that their JDs have the followings:
to
they
Job Title:
Job Summary
Duties and Responsibilities
Skill and education requirement
Position
Department (To whom to report)
Main purpose of job
Working conditions
Communications and working relationships
Decision making
Key competencies
Approval
JOB TITLE & JOB SUMMARY:
Start with little about organization, and employees designations.
POSITION:
BYCO made their JDs as per positions. Normally organizations made their JDs in the name of the person
on that position but BYCO made their JDs as per positions. This helps them in a sense that person may be
shifted or rotated but the positions will remain.
DUTIES ANS RESPONSIABLITES:
What to perform, what are employee duties like decision making, controlling and etc. and what are his /
her responsibilities.
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24. DEPARTMENT:
In this it is mentioned that the position is belongs to which department. And to whom employee will
report. In organizations it's very important to define to whom to report so that it will decrease the
confusion relating to reporting.
MAIN PURPOSE OF THE JOB:
In this the main purpose of the job is mentioned that is what the core duty of that position is.
WORKING CONDITIONS:
In this part, the working conditions are mentioned in which that position have to work.
COMMUNICATIONS AND WORKING RELATIONSHIPS:
In this part, the communications and working relations are mentioned, which means that during the job,
with whom departments and persons, that position has to coordinate.
DECISION MAKING:
In this the criteria is mentioned in which that position has to make the decisions.
KEY COMPETIENCIES:
In this part the required skills and abilities are mentioned that are required and have to be in person on
that position.
APPROVAL:
This is a separate section at the end of the JDs in
which approval is done and signed by the consult and related
persons.
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25. CONCLUSION:
HR department in any organization contributes equally in meeting the goals not just on departmental level
but on the strategic level as well. After visiting BYCO we conclude that the core concepts of the human
resources management that we learn within the boundaries of the classroom are not just theoretical but
they are truly practical. We found that the operations of HR department in BYCO are as per the core
concepts of human resource management.
Previously we had a misconception that HR department in any organization does only recruitment,
selection and manages the performance records of the employees. But now we learn that HR department
also does human resource planning, training and development, compensation management etc. in nutshell
we conclude that HR is a strategic partner that is responsible for the all human resource right from their
entry in the organization to their exit from the organization.
Our experience so far was tremendously interesting and we are eager to learn more about human resource
management.
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