This document provides a summary of a strategic human resource planning report for Afroze Company. It begins with acknowledging those who contributed to the report. It then includes an executive summary that overviews the company's HR planning process and highlights sections on the company's strategy, history, labor market, and HR planning model. The full report analyzes Afroze Textiles' strategic HR planning process, including their mission, values, products, competition, and environmental scanning practices. It describes the company's strategic HR planning model and how it aligns individual and corporate goals.
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Haleeb product is of the ancient and historic product of Pakistan. It is still used by many of the residents of Pakistan. Now Haleeb has become among one of the competitors of milk producers.
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Running Head: BENCHMARK – CASE STUDY POTENTIAL RESOLUTIONS 1
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In the current age of revolutionary change, an organization is as healthy as its sustainability prowess. Today’s company’s unlike past generations, operate in complicated and fast-paced regulated environment. There is an increased need to satisfy current stakeholders, safeguard future generations, and optimally use natural resources. It is in this breadth the Purple Cloud Company thirsts to speed up their product development, widen its market share, and seize new opportunities. The company’s sustainability strategy is acquisition and expansion as they aim to increase value above $100 million and increase the organizations stock price above $71.
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Domestically, the company has a larger market share, and this motivates the organization to locate emerg.
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1. Strategic Human Resource Planning
Term report
Afroze Company
Group members:
Sameen Khan
Madiha Sheikh
Rushna Khalil
Usama Kalam
Submitted To: Ms.Sayma Zia
Submission Date: 2nd May 2014
2. ACKNOWLEDGEMENT
First of all we would like to thank Almighty Allah, for the completion and compilation of this
report.
We wish to express our gratitude and appreciation for the generous assistance to the following
people who supported us for this project:
Our parents
Our Course Instructor
And our deep gratitude for sharing with us his experiences and information goes to:
Mr. Syed Tanveer Ahmed (General Manager, HR Systems for Compliance)
We are indebted to those who generously helped us to fill in the required information for our
project completion. Any legal or factual errors are ours alone as concerned specialty shared their
immense and tremendous knowledge with us which may be subject to perception biases.
We really have to express our gratitude towards them because this report would never have been
possible without the immense cooperation and support they rendered towards us. They
responded positively to help us with our assignments and helped us tremendously with the
projects undertaken. They let us embark on such an exhilarating experience and journey that
helped us learn a lot.
Meanwhile Mis Sayma’s supervision and counsel have proved invaluable.
We would really like to thank our respected teacher for her enlightening suggestions and advises.
Her professionalism, guidance, thoroughness, dedication and inspirations will always serve to us
as an example in our professional life.
Finally, a thank you note to our teacher for being an enlightening helping-hand through-out our
course.
3. EXECUTIVE SUMMARY
This report provides an analysis of the Human Resource Planning Process of AFROZE
TEXTILES Organization. It has touched different dimensions which belong to the topic such as
Introduction of the Organization, its history, the human resource planning process they use and
the References and Conclusion of the Report.
The purpose of this project was to understand the Human resource Planning Process in practical
life and how it can be improved. This report aims at understanding where pitfalls arise in order to
over-come them.
We were given the opportunity to learn much about the Human resource planning System and
Process of the AFROZE Company.
The sections in this report discuss the basic organizational strategy of the Afroze Company, its
mission, vision and values. The same part also discusses the history and the beginning of the
organization. The next section deals with the environment that the company operates in, its labor
market difficulties, its environmental scanning programs and preplanning processes. There are
also sections discussing job analysis, performance evolution and the management systems of the
human resources of the organization. The later parts cover the techniques with which the
company forecasts its labor supply and demand and plans for succession management. In short,
the report broadly covers the extent of the whole strategic human resource planning model
discussed in the text book and establishes similar theories and functions about the organization
concerned.
We feel that this knowledge will be helpful in future work terms, and in our careers.
4.
5. THE STRATEGIC HR PLANNING MODEL
This entire report revolves around the understanding of the strategic HR planning model so it is
very important to understand the workings of the model.
A strategic planning model is comprehensive in nature that is based on generic corporate and
business strategies along with multitude of HR policies and practices. This model not only
incorporates traditional human resource planning model i.e. forecasting availability and supply,
but it complements the traditional view by encompassing more strategic arenas.
The numbers in the model denotes the step wise processes which are:
1. First, the planning process is more agile; changes in plans are much more frequent and
are often driven by events rather than made on a predetermined time schedule.
Organization should first monitor, identify and analyze external environmental forces that
can affect the strategies.
2. The development of corporate strategy
3. By contemplating different forecasting techniques, organization should figure out the
internal assessment i.e. the strength and weakness of the relative human capital and
resources. The relative skill set should also be determined in order to make the
organization a learning organization. Other than that, the competitive advantage should
also be identified for the HR department. The planning process is more proactive.
Successful organizations no longer simply respond to changes in their environment, they
proactively shape their environment to maximize their own effectiveness.
4. The corporate strategy should be aligned with the divisional and functional level strategy
by aligning individual goals with the corporate goals.
5. Once strategic planning is under way, a process must be undertaken by the organization
to design and align its HRM policies and practices to provide for organizational success.
Organization should then identify and postulate HR policies and procedures in order to
gain full advantage of the strategy implemented.
6. In the end, results should be measured and evaluate the performance after which modify
plans accordingly. The last component provides a means to assess and sustain the
competence and performance of the organization and the people in it with regard to
outcomes that the organization seek
6. INTRODUCTION OF THE COMPANY
Historical perspective
Afroze Textile Industries started as a cottage industry in 1973 founded by Mr. Mehboob Alam
Lari (Late). At that time the factory just comprised of looms and machinery. Gradually they
started with limited finance and initial investment was done personally by the founder and
became a booming name in the textile industry as the Textile sector had always been in a bloom
from the very start. After the death of Mr. Mehboob Lari, his sons Mr. Afroze Lari (Director
Production) & Mr. Feroz Lari (M.D) carried on with their father’s business they inherited, and
are presently running the business successfully.
Initially when they started they just produced terry towels, the company’s quality products
quickly earned trust from across the continents, encouraging the management to step into the
home textile field.
At start they had many rivals like Gul Ahmed, Regal Textiles, and Sitara Textiles and so on but
still Afroze Textile strived and struggled hard to become successful.
Products:
• Towels
• Bed sheets
• Curtains
• Kitchen lining
• Garments
7. CURRENT ORGANIZATIONAL STRATEGY AT THE
AFROZE TEXTILES
Implemented Corporate Strategy
Corporate Strategy at Afroze Textiles is defined as:
The overall scope and direction of a corporation and the way in which its
various business operations work together to achieve particular goals.
MISSION
Over three decades ago, we emerged. And then started to grow - gaining more strength,
yielding more output, inspiring more lives - until we reached the top in our field. Yet, even
at this stage, the nature of growth continues to stimulate our genes. So we move on and on.
VISION
To be a complete and most respected processor for entire range of our products and
recognized for challenging conventional practices and delivering on our commitments with
fair trade practices.
VALUES
BUILDING HUMAN CAPITAL
o Afroze Textiles invests nurtures and support an environment that harnesses the energies
and aspirations of our employees and empower them for many innovative opportunities
with technical development and vocational training from time to time uplifting their skills
and capabilities. We have many program and services that motivate the workforce and
cultivate loyalty.
o Afroze Textile is an equal opportunity employer dedicated to providing a clean and
encouraging working environment. We have a well maintained occupational health unit
with a 24 Hr Ambulance facility managed by qualified person.
8. Company Profile:
The Company’s corporate hierarchy is tall (high power distance) and it emphasizes on
individualism and high uncertainty avoidance and there is masculinity factor in the corporation.
Type Private
Industry Textile Industry
Founded 1973
Headquarters Karachi, Pakistan
Key people Mr. FerozLari
Mr. Afroze Lari
Product-Line Towels,Curtains
Garments,Bedsheets
Revenue $ 150 millionperyear(2006)
Employees
Website
1100 +
http://www.afrozetextiles.com
9. Industry Profile:
Afroze Textiles falls under the category of Textile Industry. Its main focus is on production to
achieve the demand of market. Apart from that it uses latest equipments (Monsfortsthermosol
continuous dyeing machine) for weaving, spinning threads which are later developed into cloth
and state-of-the-art plants such as waste water treatment plants, reverse osmosis, compaction
machines etcetera. (www.afrozetextiles.com)
Competition:
Afroze Textiles has rivals as Gul Ahmed, Lakhani etcetera and it has differentiated itself by
using state-of-the art equipments coupled with cost reduction through reduction of advertising
expenses.
Labor Market Assessment:
Afroze Textiles considers the qualified pool for selecting as their employees.
It focuses on Qualification and training skills that candidates have acquired and on earning
ranges so that the company doesn’t set pay ranges too low that makes it difficult to attract
qualified employees.
10. ENVIRONMENTAL SCANNING
Environmental scanning is a process of gathering, analyzing, and dispensing information for
tactical or strategic purposes. The environmental scanning process entails obtaining both factual
and subjective information on the business environments in which a company is operating or
considering entering.
Kinds of Environmental Scanning:
Ad-Hoc Scanning - Short term, infrequent examinations usually initiated by a crisis
Regular Scanning - Studies done on a regular schedule (e.g. once a year)
Continuous Scanning (Also Called Continuous Learning) - continuous structured data
collection and processing on a broad range of environmental factors
Environmental scanning usually refers just to the macro environment, but it can also include
industry, competitor analysis, marketing research (consumer analysis), new product development
(product innovations) or the company's internal environment. Afroze textile therefore prefers
environmental scanning on a continuous basis to keep up with the dynamic needs of the industry.
Environmental scanning in Afroze textile includes external analysis, internal analysis, macro
environment, PEST and micro environment. Afroze Textiles do not use five force analyses as
yet.
A scan of the external macro-environment in which the Afroze Textile operates can be expressed
in terms of the political, economic, social and technological factors.
The acronym PEST (or sometimes rearranged as "STEP") is used to describe a framework for the
analysis of these macro environmental factors.
Political Factors:-Political factors include government regulations and legal issues and define
both formal and informal rules under which the firm must operate. Some examples include:
tax policy
employment laws
environmental regulations
trade restrictions and tariffs
political stability
11. Economic Factors:-Economic factors affect the purchasing power of potential customers and
the firm's cost of capital. The following are examples of factors in the macro economy:
economic growth
interest rates
exchange rates
inflation rate
Social Factors:-Social factors include the demographic and cultural aspects of the external
macro environment. These factors affect customer needs and the size of potential markets. Some
social factors include:
health consciousness
population growth rate
age distribution
emphasis on safety
Technological Factors:-Technological factors can lower barriers to entry, reduce minimum
efficient production levels, and influence outsourcing decisions. Some technological factors
include:
R&D activity
Automation
technology incentives
rate of technological change
Five force analysis
Threat Of New Entrants
Threat Of Substitutes
Bargaining Power Of Buyers
Bargaining Power Of Suppliers
Rivalry Among Existing Firms
WHY ARE THEY USEFUL?
Macro environmental and industry scanning are useful as they reveal current conditions of
market. It help managers of Afroze textiles to predict the future characteristics of the
organizational environment and hence make decisions today that will help the Afroze textiles
deal with the environment of tomorrow.
12. PROGRAM EVALUATION
Aligning HRM programs and policies with organizational goals is the beginning of the strategic
HR process. HR's ability to contribute to the organization's bottom line involves more than
aligning its talent management accountabilities with the mission and vision of the organization. It
means continually evaluating and strengthening these accountabilities to ensure value,
meaningful impact, and competitive advantage.
Afroze textile faces intense competition from the booming textile sector of Pakistan where
everyday several new names spring up and the industry is saturated with brands, it is absolutely
important for a company like Afroze that operates in such a competitive sector to continuously
keep on aligning its HR programs and policies with the objectives of the company.
13. JOB ANALYSIS
A job analysis is the process used to collect information about the duties, responsibilities,
necessary skills, outcomes, and work environment of a particular job. You need as much data as
possible to put together a job description, which is the frequent outcome of the job analysis.
Additional outcomes include recruiting plans, position postings and advertisements, and
performance development planning within your performance management system. The job
analysis may include these activities:
reviewing the job responsibilities of current employees,
doing Internet research and viewing sample job descriptions online or offline highlighting
similar jobs,
analyzing the work duties, tasks, and responsibilities that need to be accomplished by the
employee filling the position,
researching and sharing with other companies that have similar jobs, and
Articulation of the most important outcomes or contributions needed from the position.
Afroze textiles also use the traditional methods of job analysis to categorize jobs within the
textile sector. No process can be entirely accurate and fully serves the purpose. Job analysis is no
exception to it. The process involves a variety of methods, tools, plans and a lot of human effort. And
where there people are involved, nothing can be 100 percent accurate. However, they may be
appropriate consideringvariousfactorsincludingorganizational requirements,time,effort and financial
resources.Since the entire jobanalysisprocesses,methodsandtoolsare designedbyhumansonly,they
tend to have practical issues associated with them. Human brain suffers with some limitations,
therefore,everything created, designed or developed by humans too have some or other constraints.
14. Coming back to the subject, even the process of job analysis have lot of practical problems
associated with it. Though the process can be effective, appropriate, practical, efficient and
focused but it can be costly, time consuming and disruptive for employees at the same time. It is
because there are some typical problems that are encountered by a job analyst while carrying out
the process.
SPECIFIC JOB ANALYSIS TECHNIQUES IN AFROZE
TEXTILES
The organization shared with us a generic job description of a textile designer which is the most
wanted job in the company, it is given below:
Textile designers create two-dimensional designs that can be used, often as a repeat design, in
the production of knit, weave and printed fabrics or textile products.
Working in both industrial and non-industrial locations, they often specialize, or work in a
specialist context, within the textile industry. The two major fields are:
interiors (upholstery, soft furnishings and carpets);
Fabrics for clothing (fashion or specialist, e.g. fire-proof).
Textile designers may also work in associated industry functions, for example, designing
wrapping paper, packaging, greetings cards and ceramics.
Typical work activities
These include:
liaising with clients and technical, marketing and buying staff to plan and develop
designs;
accurately interpreting and representing clients' ideas;
producing sketches, worked-up designs and samples for presentation to customers;
making up sets of sample designs;
working out design formulae for a group of samples;
assessing and approving completed items and production standards;
using specialist software and computer-aided design (CAD) programs to develop a range
of designs;
experimenting with color, fabric and texture;
maintaining up-to-date knowledge of new design and production techniques and textile
technology;
15. developing new design concepts;
ensuring that projects are completed on time;
visiting sites and other sources of ideas for designs;
sourcing fabrics and other materials at trade fairs, markets and antique shops;
attending trade shows, as a delegate or as an exhibitor - this may involve representing the
company with a display or stand, or appraising the work of competitors;
keeping up to date and spotting fashion trends in fabric design by reading forecasts in
trade magazines and using internet resources;
developing a network of business contacts;
From the job description shared above, it appears that the company uses the HAY system of job
analysis techniques, which is a methodology used by corporations and organizations to map out
their job roles in the context of the organizational structure.
16. ANNEXURE
QUESTIONNAIRE
Section 1: Human Resource Management Practices (HRM Practices)
Please CIRCLE the levels of agreement
in each of the items below with regards
to nine criteria of Human Resource
Management (HRM) Practices of your
firm.
Level of
Agreement
Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
--------------
------------
1. Human Resource Planning (HR
Planning)
Firm forecasts personnel requirements
on a timely basis.
1 2 3 4 5
Firm has spent a great amount of money
on selecting staff.
1 2 3 4 5
A large number of people are involved in
HR planning in firm.
1 2 3 4 5
Structured and Standardized interviews
have been used in firm.
1 2 3 4 5
2. Staffing Practices
Firm adopts selectivity in hiring. 1 2 3 4 5
The focus of staffing in firm is for
a) Manual and Physical skills 1 2 3 4 5
b) Technical skills 1 2 3 4 5
c) Problem solving skills 1 2 3 4 5
3. Incentives Practices
Firm has favorable incentive practices to
encourage employees to achieve the
firm’s objectives.
1 2 3 4 5
Firm has very fair incentive practices,
aimed at rewarding people who
accomplish their goals.
1 2 3 4 5
Firm has incentive practices which really
recognize people who contribute the
most to firm.
1 2 3 4 5
17. 4. Performance Appraisal
Firm uses performance based appraisal. 1 2 3 4 5
Firm uses employee’s self-ratings on
performance.
1 2 3 4 5
Superiors in firm frequently discuss
performance with subordinates.
1 2 3 4 5
5. Training Program
Extensive training programs are
provided for employees in firm.
1 2 3 4 5
Employees normally go through various
training programs every year.
1 2 3 4 5
Firm provides formal training to promote
skills to new hires as well as to promoted
or existing employees.
1 2 3 4 5
6. Team work
Firm always gets team’s opinion and
ideas before making any decision.
1 2 3 4 5
Firm forms focused groups to solve
problems.
1 2 3 4 5
Teams are extensively provided with
sufficient power and resources to solve
problems.
1 2 3 4 5
7. Employee Participation
In firm, employees are allowed to make
many decisions.
1 2 3 4 5
Employees are often asked by their
supervisors to participate in decisions.
1 2 3 4 5
Employees are encouraged to suggest
improvement in the way jobs are done.
1 2 3 4 5
Supervisors keep open communication
with employees in firm.
1 2 3 4 5
Section 2: Operational Performance
Please CIRCLE the level of achievement on
each of the items below with regard to four
dimensions of firm’s operational performance.
Level of
Achievement
Very Low Low Neutral High Very
18. High
-----------------
---------
1. Product Quality
Rate the level of -
a) Firm’s high performance products.
1 2 3 4 5
b) Non-defective rate of firm’s
products.
1 2 3 4 5
c) Product Serviceability, Durability &
Quality.
1 2 3 4 5
2. Product Cost
Rate the ability to reduce -
a) Product Inspection
1 2 3 4 5
b) Inventory cost involvement 1 2 3 4 5
c) Overhead Cost 1 2 3 4 5
d) Product Cost 1 2 3 4 5
3. Delivery
Rate the level of -
a) Products on-time delivery to
customers 1 2 3 4 5
b) Short lead time from order to
delivery
1 2 3 4 5
c) Cycle time (From Production to final
product)
1 2 3 4 5
4. Flexibility
Rate the level of ability to -
a) Adopt changes in product mix.
1 2 3 4 5
b) Handle difficult/non standard orders. 1 2 3 4 5
c) Make product according to order. 1 2 3 4 5
d) Adjust capacity quickly. 1 2 3 4 5
e) Scale production up and down
quickly.
1 2 3 4 5
Section 3: Firm Performance
Level of
19. Please CIRCLE the level of achievement on
each of the items below with regard to firm’s
performance.
Achievement
Very Low Low Neutral High Very
High
------------------
--------
1. Non-Financial Performance
Compared to past year, rate the level of -
a) Increase in employee productivity.
1 2 3 4 5
b) Reduction in employee
absenteeism.
1 2 3 4 5
2. Financial Performance
Compared to your competitors what is firm’s
-
a) Sale Growth Rate. 1 2 3 4 5
b) Market Share Percentage. 1 2 3 4 5
Section 4: Business Operations Modes
For the following questions, please CIRCLE one of the boxes according to the degree of
achievement or adoption of firm. There are two sides of each factor, left & right. Respondent
should choose one between the left & right and rate with five degrees, ranging from 1,2,3,4 to 5
which means (5) Very High, (4) High, (3) Moderate, (2) Low & (1) Very Low. If the level of
achievement or adoption of firm between 2 sides (left & right) makes no difference or is
currently not adopted, then please CIRCLE zero (0) number.
1. Centralization versus Decentralization
Firm transfers responsibilities 5 4 3 2 1 0 1 2 3 4 5 Firm transfers responsibilities
to higher level. to lower level.
Communication among 5 4 3 2 1 0 1 2 3 4 5 Employees have greater
employees is not extensive. communication among them.
2. Trust versus Distrust
Employees only understand 5 4 3 2 1 0 1 2 3 4 5 Employees understand
their own behaviours. each other’s behaviour.
20. Employees care about their 5 4 3 2 1 0 1 2 3 4 5 Employees feel sense of
own responsibilities only. responsibilities for each other.
3. Proactive Culture versus Reactive Culture
Decision making is late to 5 4 3 2 1 0 1 2 3 4 5 Decision making is fast
take any action & in to take action & in
conservative manner. innovative manner.
Firm is unresponsive to 5 4 3 2 1 0 1 2 3 4 5 Firm is responsive to
change in business change in business
environment. environment.
Section 5: Company Information
1. Number of employees: less than 50 50 to 100 101 to 150
151 to 200 More than 200
2. Class of firm: Local Foreign/Export Joint Venture
Oriented
3. Years of Operation: less than 5 5 to 10 11 to 15
16 to 20 More than 20
4. Firm’s Sale Volume: ______________________ (Rs.)
5. Industry Type: Manufacturing Service Bank
Others, please specify_______________________________
6. Major Products (Atleast one product): _______________/_______________/_____________
Section 6: Personal Information
1. Sex: Male Female
2. Age: less than 30 30 to 40 41 to 50
51 to 60 More than 60
3. Education Level: Bachelor Master Doctor
Others, please specify_______________________________
4. Position/Title: Entrepreneur Employee Supervisor
Manager President & Vice President
Others, please specify_______________________________
5. Seniority: ______________________years
21. Thank you very much indeed for your time and effort filling in this questionnaire. We wish you
good health and luck. We would like to inform you that this questionnaire is anonymous. Your
personal information will never be disclosed to outsiders.