Final report

ABC MEDICINES (PVT) LTD
FALL 2014
HR TERM REPORT
MAJOR HR ISSUES
AT ABC MEDICINES
(PVT) LTD
SUBMITTED TO:
SIR SHAH M SAAD HUSAIN
SUBMITTED BY UROOJ IQBAL

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Table of Contents
INTRODUCTION........................................................................................................................7
HISTORY......................................................................................................................................7
ABC MEDICINES (Pvt) ltd CUSTOMER............................................................................. 7
ABC MEDICINES (Pvt) ltd
OBJECTIVES..............................................................................8
ABC MEDICINES (Pvt) ltd CORE BUSINESS.......................................................................9
PRODUCT
OFFERINGS ............................................................................................................9
MANAGEMENT
SYSTEM .......................................................................................................10
ABC MEDICINES (Pvt) ltd Department and
Functions .......................................................10
LEVEL OF PEOPLE
WORKING ............................................................................................12
INDUSTRY
PROFILE ...............................................................................................................13
REPORTING RELATIONSHIP...............................................................................................
14
MANAGEMENT STYLE AT ABC MEDICINES (PVT)
LTD..............................................15

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ABC MEDICINES (PVT) LTD
ORGANOGRAM.................................................................15
HR DEPARTMENT AT ABC MEDICINES (PVT) LTD......................................................16
HR ISSUES IN ABC MEDICINES (PVT) LTD ....................................................................21
ROOT CAUSE ANALYSIS...................................................................................................... 27
RECOMMENDATIONS FOR ABC MEDICINES (Pvt) ltd.................................................29
HUMAN RESOURCE MANAGEMENT................................................................................29
STRATEGIC ROLE OF HR IN AN ORGANIZATION........................................................
30
METHOD FOR JOB ANALYSIS RECOMENDATIONS.....................................................
31
HRP / STAFFING RECOMMENDATIONS...........................................................................
34
SUCCESSION PLANNING
RECOMMENDATIONS ...........................................................35
PROCESS OF RECRUITMENT
RECOMNEDATIONS ......................................................36
EMPLOYEE DEVELOPMENT
RECOMMENDATIONS ...................................................37
PERFORMANCE MANAGEMENT
RECOMMENDATIONS ............................................38
APPRAISAL SYSTEM
RECOMMENDATIONS...................................................................41

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TRAINING AND DEVELOPMENT
RECOMMENDATIONS ............................................42
COMPENSATION MANAGEMENT PLAN
RECOMMENDATIONS ..............................43
COMPENSATION PLAN
RECOMMENDED .......................................................................44
ACTION
PLAN ..........................................................................................................................45
CONCLUSION ...........................................................................................................................5
0

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LETTER OF AUTHORIZATION
27th April, 2014
Urooj Iqbal
MBA Advertising and Media Management
IOBM
Dear Sir,
To whom it may concern
I am student of Human Resource Management and my course instructor Mr. Shah Saad
Husain has authorized me to prepare the term report on the topic of " MAJOR HR ISSUES
AND STRATEGIES IN AN ORGANIZATION". For this purpose, I have chosen " ABC
MEDICINES (Pvt) ltd ". I have conducted detailed interviews with HR Manager and MD of the
organization. I also interviewed some of employees and senior management to find out HR
issues in the organization.
This report is based on HR issues and flaws in ABCMEDICINES (Pvt) ltd . It will provide
detailed recommendations and action plan for implementation of proposed HR practices in
ABCMEDICINES (Pvt) ltd .
Sincerely,
Urooj Iqbal
Student of IOBM Karachi

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LETTER OF TRANSMITTAL
April 28th, 2014
Mr. Shah M Saad Husain
Human Resource Management Facilitator, IoBM Karachi
Subject: Human Resource Issues at ABCMEDICINES (Pvt) ltd
Dear Mr. Shah M Saad Husain,
It is my pleasure to present you report on “Human Resource Issues at ABCMEDICINES
(Pvt) ltd .” which has been prepared in accordance with the learning from this course. This
preparation of this report has provided me with great understanding with the implementation of
HR practices.
This report will present you details of the HR system and Practices implemented at
ABCMEDICINES (Pvt) ltd . I'd like to thank you for providing me opportunity of attaining this
practical knowledge.
Your Sincerely,
Urooj Iqbal
IOBM Karachi

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LETTER OF ACKNOWLEDGEMENT
April 28th, 2014
Mr. Shah M Saad Husain
Human Resource Management
Institute of Business Management
Karachi, Pakistan
Dear Reader,
It has been a great opportunity of learning for me to prepare this report on the HR issues at
ABCMEDICINES (Pvt) ltd which was assigned to me by faculty of the course of Human
Resource Management, Mr. Shah M Saad Husain, without his guidance and sharing of
knowledge it would be difficult to complete this report.
I'd also like to thank you to Mr. Abdul,(CEO) and Ms Iqbal ( Managing Director) of
ABCMEDICINES (Pvt) ltd , for providing me the complete information regarding the HR
functions and their implementation in the company.
Thank you & Best Regards
Urooj Iqbal
IOBM Karachi

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INTRODUCTION
Company Overview
ABCMEDICINES (Pvt) ltd is an established institute and research center for health care
services working in Pakistan since 1994.This belong to services industry and a well established
institution by Mr. Abdul who is renowned Traditional Medicines researcher and introduced 'S'
Therapy very first time in the world.
ABCMEDICINES (Pvt) ltd
ABCMEDICINES (Pvt) ltd is dedicated to providing quality Traditional, and Complementary
alternative health care solutions and well being programs leading to common man in the caring
of their psychological and physical health through natural procedures.
Their mission is to provide best and long lasting natural health care solutions to the lay man,
with prime affordability of cost to provide easy reach of Traditional, and Complementary
Medicines to every family of Pakistan.
The goal is to skilled individuals with best health care, self awareness, empowerment and
provide improvement to their overall quality of life. ABCMEDICINES (Pvt) ltd works for
individual’s well-being.
ABCMEDICINES (Pvt) ltd is committed to making a difference in the world, by providing,
· Personalized natural health care with the world’s most powerful healing system.· Providing
alternative health care education to spread knowledge on healthy living alternative cure from
chronic diseases.
Through the hard work in this field they are aiming to achieve the highest level of health for
their patients in a mutual fashion, improving their quality of life and educating them on how to
live to the fullest by making natural health care the superior part of their lives.
HISTORY
Since 1994, ABCMEDICINES (Pvt) ltd providing alternative health care services in two big
cities of Pakistan Karachi and Lahore. It has been the first institute of its type where alternative
medicines used professionally and scientifically to provide its whole essence for curing chronic
physical and psychological diseases. ABCMEDICINES (Pvt) ltd is formed by Mr. Abdul very

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first time in Lahore. As Mr. Abdul says" ABCMEDICINES (Pvt) ltd promises you to provide
best natural health care solutions and aims to become leading organization in traditional
complimentary alternative medicines industry".
ABCMEDICINES (Pvt) ltd CUSTOMER
Patients from psychological to physical diseases come to take alternative therapies for cure of
chronic diseases. People who prefer cure with natural procedures because it says there is no side
effect of natural procedures for curing diseases. People come to get cure for following issues.
ABCMEDICINES (Pvt) ltd OBJECTIVES
Corporate Objectives
Cater customer seeking natural health solutions with cost effectiveness
Satisfy customer need from point of sale to after providing services
To provide ultimate health care service that aims to serve customer's generations.
Operational Objectives
Standardized processes to achieve objectives on time.
Make operations efficient to cater targeted strength of patients

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Individual objectives
Every employee given a yearly planner and log to define their goals and execute tasks
accordingly.
Every employee work as the team member of ABCMEDICINES (Pvt) ltd .
ABCMEDICINES (Pvt) ltd CORE BUSINESS
Despite all the presence and marvelous advancements in the field of conventional medicine,
traditional and complementary medicine has always been practiced. Majority of Pakistan
population use various of the complementary therapies in their daily life and still depends on
the traditional systems of medicine.
Evidence-based traditional and complementary therapies have shown remarkable success in
healing acute as well as chronic diseases. Alternative therapies have been utilized by huge
number people in Pakistan since year.
The core business of company is to provide health solutions in which the treatment for all kind
of diseases(psychological/physical) is available through natural therapies (offered by
ABCMEDICINES (Pvt) ltd ). The customer reach them through mainstream media Television.
Mr Abdul does TV program on the daily basis 7 days a week on Health TV. TV program carries
content on Dr's discussion over several health diseases and their cure. People reach them via
calls or direct contact at their office. 16 CSRs available for catering these calls where Middle
management employees are available for catering patients who their office for guidance and
counseling. These people get themselves registered for workshops in which these therapies will
be provided by Mr. Abdul. These workshops held on monthly basis in Karachi, Lahore,
Islamabad, London and Dubai. Charges for therapies are depend upon modules of therapies for
which the patient is registering.
PRODUCT OFFERINGS
Herbal therapies
Healing Therapy
Magnet Therapy
Power Therapy
Various other therapies
Every therapy is offered in the form of course which held during workshop. Workshops
organized in every month in three big cities of Pakistan and in Dubai and London. These
therapies can be learnt and taken from Mr. Abdul during these workshops.

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Most emphasis on healing and magnet therapies due to their effectiveness and understandability.
The overall revenue and profit depends upon these two product's sales. There are various
modules of these therapies but to learn intermediate and advance modules an individual patient
or customer has to take path from healing module 1-4 to reach further modules.
MANAGEMENT SYSTEM
All authority for issuing orders and making decisions is restricted to senior management. Middle
level Managers may take casual decisions.
ABCMEDICINES (Pvt) ltd Department and Functions
Customer reach ABCMEDICINES (Pvt) ltd through calls or reach their office for guidance and
information. There is a small call center set up in ABCMEDICINES (Pvt) ltd where all kind of
customer data saved on daily basis. Daily operations held by direct initial dealing of office
assistant with visiting customers where HR and Operations Manager has responsibility to
consult those customer regarding their health queries and convince them to get registration for
therapy in upcoming workshop. The fee or charges submitted by HR or Operations Managers
and further hand over all fee to Accounts manager. Event Manager is mostly associated with

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workshop coordination and also responsible for updating customers for upcoming events
(workshop).
HR Department
HR department in ABCMEDICINES (PVT) LTD look after Employee relations, Customer
counseling, Compensation, and Implementation of policies and procedures.
Account Department
Accounts Manager has responsibility to handle fesses, petty cash and all other vendor and
customer related transactions on daily basis.
Customer Support Department
Customer support has prime responsibility to handle all incoming and outgoing calls, answering
to the queries of customer, providing after sales services, and providing information related to
therapies in detail.
Customer Care and Retention
As flow of new customer is too high, retaining old customer's has also prime value to provide
them after sale services. Every old customer provides guidance and counseling according to
their issues. Old customers has given special offers over product purchase. There is practice of
organizing meet ups with old patients to share their success stories.
Admin Department
Every employee and staff person has line Manger and its admin manager Mr. Ahmed. All kind
of delegation of authority, strategy generation and decision making regarding customer,
marketing, fesses, therapy courses and employee hiring and firing done by him.
Marketing and Media
There is no specific department handling marketing and media operations. These responsibilities
has been divided between senior and mid level management. These responsibilities includes
content development for TV program, content development for website and brochures. SMS
marketing is under event manager. Event management responsibility is also shared among HR
and operation manager.
Work Flow in ABCMEDICINES (PVT) LTD

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Customer landing towards the company done through TV broadcast of 45 minutes TV show
based on Health on Health TV Pakistan. With the program broadcast viewers calls to find
solution to their health queries.
LEVEL OF PEOPLE WORKING
There are three levels defined on which people are working at ABCMEDICINES (PVT) LTD ,
Senior Management, Mid level Management, and Staff. Total number of employees at
ABCMEDICINES (PVT) LTD is 35. They carry office in Karachi. Senior Management
consists of shared partners and owners of the organization. There three people in senior
management CEO, MD and Administration head. CEO and MD are owners of company where
Administration Head is the major partner of the company.
INDUSTRY PROFILE
In Pakistan traditional complimentary alternative medicines can be noticed mostly through
hakims, homeopathy experts but there are various dimensions of this industry that has been still
not fully defined in Pakistan especially. According to customer surveys, it has been found that
this industry carries only 1% market share in Pakistan. ABCMEDICINES (PVT) LTD carries
the customer profile of thousands from all around the world.

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REPORTING RELATIONSHIP
1: Account manager, HR Manager, Operations Manager, Event Manager directly report to
admin manger.
2: Customer Services representatives report directly to Supervisor(shift in charge)
3: General Staff includes office, office assistant reports to HR manager.
4: Admin Manager reports to MD
5: MD reports to CEO.
Admin
Manager
Managing
Director
Chief
Executive
Officer
Accounts
Manager
HR
Manager
General
Staff
Superviso
r
Customer
Support
Representatives

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MANAGEMENT STYLE AT ABCMEDICINES (PVT)
LTD
Centralized management system is implemented in ABCMEDICINES (PVT) LTD where
authority of taking decisions remain restricted to senior management. Line Managers has to
deliver those authorities that were previously delegated by senior managers.
ABCMEDICINES (PVT) LTD ORGANOGRAM
At ABCMEDICINES (PVT) LTD the management structure carries three people a CEO, one
Managing Director and an Administration Head. The company has major departments of
Finance, Customer Care and HR which lead by their heads or line managers. The
ABCMEDICINES (PVT) LTD 's current organogram is given below:

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HR DEPARTMENT AT ABCMEDICINES (PVT) LTD
HR functions in ABCMEDICINES (PVT) LTD mostly done by HR department. As
ABCMEDICINES (PVT) LTD is small company, so the HR department carries two people one
is HR manager and Operations Manager who assists HR manager in various responsibilities.
The HR Department started working in ABCMEDICINES (PVT) LTD in 2013 before that
hiring process done by CEO and MD. Following are the main functions that HR implements in
ABCMEDICINES (PVT) LTD .
Salary and Benefits
Maintaining healthy environment

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Hiring Process ( only short listing applications, and calling candidates for interview)
Implementation of polices and rules
Staff punctuality and discipline
Maintain employee customer relationship
Other than above given functions HR in ABCMEDICINES (PVT) LTD has no recruitment
process, performance management system, no succession planning, compensation management
plan, career development and employee retention system.
Previously, in ABCMEDICINES (PVT) LTD increments has been given by CEO on yearly or
sometimes quarterly basis without any job evaluation where no criteria for increments followed.
After the delegation of responsibilities to HR department, HR personnel is responsible for
implementation of policies and rules in the organization, look after procedures whether
employees are following SOPs and systems, HR manager is accountable for maintaining
discipline among employees, maintain healthy relationship between employee and employer,
employee and customer (B2C operations).There is Salary and compensation system which cater
employees base salary, incentives, promotions) but no criteria defined for incentives and
promotions grade wise.
HR STRUCTURE IN ABCMEDICINES (PVT) LTD
Authority and responsibility divided among staff in HR department according to the HR
organizational structure. Formal Communication between general staff and senior management
done through HR and operations manager.

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HR FUNCTION IN ABCMEDICINES (PVT) LTD
In ABCMEDICINES (PVT) LTD following HR function has been implemented by HR
department.
Recruitment and Selection
Payroll Management
Organizational Development
RECRUITMENT AND SELECTION
At ABCMEDICINES (PVT) LTD , Senior Manager takes decision for hiring and firing of
employees. Recruitment starts from administration head where he takes decision to fill the
vacant position, responsible for occupying advertisement in the newspaper. HR manager has
responsibility to shortlist people for an interview and call them. The Interview has been
conducted by administration head, HR manager and MD where the hiring authority is
Administration manager.
HIRING PROCESS IN ABCMEDICINES (PVT) LTD
In case of Employee termination, Employee resignation. Admin Manager take decision to hire
competent candidate to fill the vacant position. For this purpose following steps consider by
Management:
1: Generate ad copy for placing in newspapers.
2: Candidate send their resume on given email ID or contact through given phone number.
3: Assistant to Admin manager select appropriate Resume ( which have desired experience and
qualification) and call them for interview with Admin Manager.
4: Admin Manager select candidates for second interview.
5: In the second interview CEO also be the part of interview.
6: Second interview includes, Final decision for hiring candidates which also includes CEO's
suggestions, Salary negotiation with interviewee, final offer including complete package.
( Package includes salary, transport, lunch) for every employee.
7: After offer accepted by Employee. Appointment letter issues within one week after
completion of recruitment process.
8: At the joining day of employee. Team of ABCMEDICINES (PVT) LTD includes MD,
Admin Manager introduce new employee with company's culture, and with other employees.

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9: Employee book (carries Job description an SOPs) and book of code of ethics hand over to
every employee at the day of joining. Yearly Planner( to plan employee tasks for the year) ,
Note books, product manuals also provide by administration of ABCMEDICINES (PVT) LTD
10: Every new hired employee has been given training regarding the product and its
implementation.
11: Employees has to give training regarding therapies and their implementation.
12: These training sessions continue till one month.
13: Training includes Product knowledge( manuals), Mock practices( to entertain customers),
Call receiving etiquettes, Customer dealing, Mock practices for answering the queries according
to the customer need( health issue psychological/ physical).
PAYROLL MANAGEMENT
In ABCMEDICINES (PVT) LTD , payroll management done HR manager but the decision
making done at the end of senior management in this area also. Following are the incentives
given to employee at ABCMEDICINES (PVT) LTD ,
Base salary on the basis of relevant experience of work and skills inventory required.
Free Lunch for every employee.
Convince/ Transport or transport allowance given to every employee
Yearly bonus on the basis of ROI .
Celebration after every successful workshop.
Verbal Recognition for every individual on his/her performance
Separate office mobile numbers given to Managers.
Insurance for every employee.
There is no criteria for appraisal system defined where they depend on the rough analysis of
individual performance. There is no performance management criteria defined also to judge
people for their compensation plan accordingly.

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Average Salary of staff to Mid Managers lies between Rs 25000 to highest pay scale is Rs 45000
where junior staff has average salary is Rs 15000 to Rs 20000.
ORGANIZATIONAL DEVELOPMENT
Operations manager has responsibility to take control of systems and procedures follow by
employee in the organization. Operations manager acts like staff authority where HR manager is
the line manager to the department and other departments. The policies, procedures and rules
come from Administration head. HR and operations managers also look after employee relations
and forward their concerns to the senior management.
Code of Ethics:
Violation of rules and regulation may result in termination. Every employee would be
accountable for their act and answerable to the CEO and senior management. Serious action can
be taken against the person if he/she leaked any important information about the company. Use
of Personal cell phones, personal email IDs, social media accounts are strictly prohibited during
the office time. Political and any kind of discussion that can create conflict of interest is strictly
prohibited in the premises of ABCMEDICINES (PVT) LTD .
Dress Code:
In ABCMEDICINES (PVT) LTD dressing formal means dress to resemble organization's
culture. Green, blue, black , white and soft light colors are defined for women to wear. Dress
code has been defined specially to maintain the healthy image because patients of various
disease are the customer and colors has prime role on the psyche of human being.
STRATEGIC PLANNING IN HR DEPARTMENT
The main element on which ABCMEDICINES (PVT) LTD 's senior emphasis is to implement
policies and rules and it is also the base of HR in ABCMEDICINES (PVT) LTD . There is no
strategic plan for HR in ABCMEDICINES (PVT) LTD . Most of the times plans discuss
verbally where no written documentation happen to make plan for long term. Policies come
from administration head and as he has authority to take decisions so there is no intervention of
MD and CEO in his decisions. Due to this centralization, employees doesn't have awareness
about career planning, performance management criteria, and various other HR elements that
make their organization strong in the market.

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HR ISSUES IN ABCMEDICINES (PVT) LTD
OVER VIEW
As ABCMEDICINES (PVT) LTD is based on centralized management system, so it is mainly
working on the decisions and policies made by their senior management. In ABCMEDICINES
(PVT) LTD , there is a major problem of employee retention, where the management is lacking
in practice of various HR principles that would create difficulties for organization in future.
Especially in the area of Job analysis, updating Job description and Job Specification
documents, there is no criteria for performance management system, no concept of appraisal
form, Compensation plan for rewarding right things, lack in HRP planning, no succession
planning, and career and development parameters. Due to centralized and Seth based system
there is also no job security. The responsibility of training to new employees is also restricted to
senior management of ABCMEDICINES (PVT) LTD as it is the core responsibility of HR
department.

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JOB ANALYSIS
In my research for the term report, I have found that there is no official process for job analysis
before hiring people to fill vacancy, where there is no Job specification document to follow
before advertising ad in the newspaper. There is also no practice of updating the Job description
document in the company. The Administration Head and other senior management people
through observation presume that what are the requirements of the company from the position
and hire the person accordingly. The absence of job analysis process also creates mishandling of
tasks among employee when extra tasks divided among employees or extra and other than their
job responsibilities. As in ABCMEDICINES (PVT) LTD there is no marketing and media
department working so the responsibilities related to marketing and media either shared among
employees. These responsibilities are other than those which were defined to their job
descriptions.

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There is also no concept of job sizing related to the individual tasks that also creates confusion
among employees. In ABCMEDICINES (PVT) LTD 's, there is strong need to design new
organogram in which new departments and jobs according to those departments has to be
defined.
The recruitment process needs to be redesigned because there are various loop holes in the
process. As recruitment starts from Administration Head, where this process needs to be
initiated from Line manager. There is no concept of department line manager in the
organization. So there is no involvement of line manager in hiring, firing and interviewing
candidates. HR manager only plays role of short listing and calling candidates for interview. All
other process of interviewing, selecting, and hiring candidates done by senior management.
Although the selection and hiring is merit based but the absence of HR Manager made this
process wrong.
There is no concept of internal recruitment in the organization where it enhances confidence of
employee and brings internal goodwill to organization. The hiring process in ABCMEDICINES
(PVT) LTD includes all three factors but there is lack in the process of recruitment as defined
above.
HRP/ STAFFING
The portion of manpower planning in ABCMEDICINES (PVT) LTD has various loop wholes.
There is no planning that provides clear picture of labor demand and labor supply. As no system
is defined to find out future demands of manpower in the organization that is very bad for the
sake of organization. There is no concept of forecasting HR needs in the organization.
SUCCESSION PLANNING
There is no action plan, HRP tools and succession planning define officially. That's why there
is always been a issue arise whenever any employee wants to leave their job because there is no
successor behind them. As whole concentration of management remains on training of
employees for customer generation, product knowledge, customer satisfaction and fulfilling
their needs. There is another reason that why the management doesn't think about succession
planning is most people working are belongs to customer support where there are almost 16
people in this department and if anybody would leave the next person would be ready to carry
the load. Another reason the senior management doesn't care about succession planning that
they think they have highest salary percentile in the market comparative to other industries so
employees cannot leave them. There is no employee forecasting tool is to plan future human
capital needs in ABCMEDICINES (PVT) LTD .

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There is a very good system of issuing every employee a yearly planner to mark their goals on it
for whole year, assigning them goals , train them for generating competencies but the
measurement between physical tasks and behavior has not been judged by managers and that's
why employee doesn't reward on the basis of performance management. There is also no culture
of empowerment specially it is not applied on staff. There is a high population of customer
support representatives and they cannot take decisions without the permission of HR and
operations manager.
In ABCMEDICINES (PVT) LTD , Managers define performance (how to perform ) facilitate
performance ( Guide and coach), and Encourage performance ( verbal appreciation) but there is
no performance dimension define on which employee's performance quantify in numbers to
appreciate him/her. There is also no categorization of basic competencies defined to generate
them in employees by quantifying them. There is no performance management form in
organization that tells employee timely performance improvement record.
There is also issue in appraising employees that organization has no appraisal form where
reasons, competencies, performance reasons remain hidden on which employee gets appraisal.
The main reason for which people get appraised is they are providing high profits to the
organization.
In ABCMEDICINES (PVT) LTD , training is provided regarding the product knowledge,
human skills required for the job but there isn't any career planning and development system for
employees that provide an employee the view of future growth in the organization.
There is no concept of developing the employee for making him/her fruitful for the industry. As
the industry of alternative medicines is not so much grown in Pakistan but there is also lack of
educated professionals. If an employee join ABCMEDICINES (PVT) LTD , they always get
training regarding the product but if they have given advance training sessions or professional
training sessions and provide them long term professional development program it will not only
give boost to the industry but generate great professionals in the field.
REWARD AND COMPENSATION
Rewarding employees with Justice, Consistency, Transparency, fairly and equitably. In
ABCMEDICINES (PVT) LTD , there is one salary system according to which position wise
there is a salary range that has been decided by senior management applies.

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There is no concept of individual equity to define why the same job holder has different salary
package where incentives like transport, lunch etc has been given to everyone. Cell phones and
mobile prepaid Sims has been given to senior management and Mid level management people.
There is also lack of Job evaluation and internal equity that has not been taken into account ever
to judge the value of job in the system. There is also lack in defining grading level in
organogram so the rate at which promotions and rewards will occur also remain unknown to
employees.
REWARD SYSTEM IN ABCMEDICINES (PVT) LTD

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This reward system applied on every employee without grading levels in the organization which
is not good practice. There is a need to develop system foe compensation planning in the
organization.
IMPACT ON ORGANIZATION
As HR department executes everything but decision making comes from senior management so
there is no concept of empowerment. As no succession planning in the organization, whenever
the employee leave there is a need to recruit to fill that position and it also includes the whole
recruitment, hiring and training process that means extra time and cost required. As every
employee is provided with yearly planner where they have to ask to plan complete year tasks
and their goals but they have not provided with performance management system that tells their
improvement and appraise them accordingly. Same issue has been found in compensation
management system, where with base salary everybody has been provided with transport, lunch
and other incentives there is no criteria defined for perks and promotions in the organization that
make employees to think about it seriously.
Dissatisfaction among employees
Due to lack in performance management system, employees doesn't receive feedback and feed
forward reports on their performance. As there is no dimension define for performance it also
creates vague picture about their improvement. There is no appraisal form which also
demotivates employee where he/she cannot judge where they were and where they are now and

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how much improvement need them to reach their goal in the organization. There is no separate
employee development plan for employees that would tell them their future in the organization
and market worth.
ROOT CAUSE ANALYSIS
To support recommendations for improvement in HR systems in ABCMEDICINES (Pvt) ltd ,
I'd like to present detailed root cause analysis to find out the reason for HR issues in
ABCMEDICINES (Pvt) ltd .
Job Analysis
Employee
Development
Reward &
Compensation
No Performance
Dimensions

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Job analysis process
Updated JD & JS
Lack of
Succession
planning
Culture of
empowerment
Lack in
HRP
New
Appraisal
System is
missing
organogram
HRP/ Staffing
No Internal
Equity
No Grading
Level defined
No Compensation Strategy
No training for future
No Training & Development
Employee
Retention
JScope v/s Jdepth
Job design
No HR
Forecasting
Lack in Recruitment
process
No performance
management
There are five main HR functions that ABCMEDICINES (Pvt) ltd need to be implemented in
proper way to get competitive edge in the market for working capital.
1.Job Analysis
2.HRP/ Staffing
3.Employee development planning
4.Training and Development
5.Reward and Compensation

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For these issues, here we have defined detail gap analysis in above given factors.
1: Job Analysis
No culture for Job analysis
No concept of Job design
Lack in practice of Updating JDs and JS
Concept of Job Scope and Job Depth is missing
No Concept of Job enlargement
No Concept of Job rotation
2: HRP/ Staffing
NO concept of HRP
No standard process for recruitment is define
No exercise of redesign organogram
No succession planning
No HR forecasting
3: Employee Development
No criteria for performance management system
Appraisal system is missing
Performance dimensions not defined
No Culture of Empowerment
4: Training and Development
Avoid training needs of employees
No culture for continuous training
5: Reward and Compensation
No Compensation strategy
No concept of internal equity
Grade levels not defined
No Job Evaluation
Loop wholes in total remuneration system
These issues need to be solved to make effective HR processes in ABCMEDICINES (Pvt) ltd .
For small organization the strong strategy to earn through their best human capital. There is lack

30 | P a g e
in employee retention that is quite bad scenario for the future of organization, where unsatisfied
employees means no productivity.
RECOMMENDATIONS FOR ABCMEDICINES (Pvt) ltd
To fill out loop holes in ABCMEDICINES (Pvt) ltd 's HR system, here we'd like to present
detailed recommendations that are aiming to serve organization. The main issue is employee
retention which are found due to above explained problems. Following recommendations are
based on Strategic HR implementation which has been taught us in this course.
HUMAN RESOURCE MANAGEMENT
(Employee- Employer Relationship)
The reason behind sharing this diagram here is to explain the employee and employer
relationship to make it justified that why we are presenting recommendations over the system
HRM in ABCMEDICINES (Pvt) ltd and why just the presence of HRM is not only required but
it needs to be implemented fully to achieve desired results.
Human Recourse Management provides opportunity to understand the organization and their
people. It defines the culture and values of any organization. Organizations changes according
to the needs and wants of the customer. Meeting customer satisfaction is the prime need of
organization because those who can't fulfill their customer need dies easily.

31 | P a g e
To fulfill customer needs organizations are required with Human capital. Human Capital is the
only capital which never depreciates. The need of human capital varies from business to
business, country to country and organization to organization.
To become an efficient organization two things are required:
Satisfied Manpower and Technology efficiency.
To generate sustainable business it is important to acquire great competitive sustainability
Responsibilities of HR manager:
HR is the custodian of all processes including procedures and policies, performance
management, Recruitment, designer of the process and guide line manager how to handle their
issues and how to handle their subordinates. In ABCMEDICINES (Pvt) ltd , HR has to generate
processes to implement right HR practices.
STRATEGIC ROLE OF HR IN AN ORGANIZATION
HR isn't owner of processes in organizations it has to help people in implementing processes.
An organization cannot be successful unless it possess competitive human capital. HR has
prime role in achieving market share and creating competitive edge. HR department is the
supportive department to marketing, finance, and production department. Every department has
to define their line manager who should be the owner of their functions and their processes. HR
strategy helps these department to implement processes effectively.
ABCMEDICINES (Pvt) ltd needs to develop strategic plan for HR and align them tactics with:
Environmental Opportunities and threats ( lower than average market share )
Business Strategies ( Business extension in foreign countries)
Organizational unique Characteristics( Organization culture and values)
Organizations' competence( highly competitive human capital )

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METHOD FOR JOB ANALYSIS
RECOMENDATIONS
For job analysis it is very important to know where to take start and who will the owner of this
process. First we'd like to define what does Job analysis means"
" Job analysis is the process which defines the job and the skills, knowledge , abilities and
responsibilities must present in the job holder to deliver successful performance. "
There are different methods that use to analyze job. This is HR manager's responsibility to
conduct job analysis to get updated with the current requirement of the position and what other
skills required to fulfill the desired job. There are four methods to conduct job analysis in the
organization.

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Job holder and line manager has to make sure that they are updating job descriptions time by
time to make recruitment process effective.
There are two main products of Job Analysis
JOB SPECIFICATION DOCUMENT
Updated Job specification document helps to hire right people with right competencies. If Job
specification document doesn't tells right skills and competences then it may cause wrong
people selection leads to employee turnover, and organization failed to meet their targets. A
standard job specification document provides following elements that candidate must possess
for applying to any job. The responsibility for updating this document is done by both line and
HR Manager.

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JOB DESCRIPTION DOCUMENT
Job holder and Line managers are required to take care about employees job description
document and update it whenever a new job task add to the list of responsibilities of position in
the organization. A standard Job description document answers of following requirements:
There is also a need of defining job design in the organization, because due to unique nature of
business there are various special tasks
There is need to developing concept of Job design by HR manager that is the process of
structuring work and designing the specific work activities of an individual to achieve
organizational objectives. As ABC Health (Pvt) ltd, belongs to different industry. It has
different type skilled jobs for which job design for practitioners position is required. There are
two levels of employees working in ABC Health (Pvt) ltd Mid level Management and general
staff. Senior management has highest scope and depth which is also defined in the organization.

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Mid Management has less job depth and job scope then senior management where other staff
including Customer support and specialize skilled employees( graphic designer) has large scope
where there is less depth given them to perform. Here, HR manager has responsibility to
generate desired depth because this is generating irritation among these individuals and it may
lead to employee dissatisfaction.
For employees who works on same tasks repeatedly HR is required to implement Job
enlargement and job rotation concept there. To safe employees from boredom. Motivate
employees by assigning them stretched targets for performing well and associate those
achievements with appraisal or promotion.
HRP / STAFFING
RECOMMENDATIONS
Human resource planning gives detailed know how about the human resource needs in the
organization and the availability of skilled workers are available in the market. There are
different methods to forecast human resource demand and supply in the organization. Once HR
manager determined the number of employees required for hiring they can determined it in the
light of current human resource in the organization.
Human Resource Planning Process
HR manager at ABCMEDICINES (Pvt) ltd has to develop human resource plan to estimate
labor demand and supply in the future, develop succession plan to save organization from loss
of productivity due to lack of human resource. HR manager also required to redesign

36 | P a g e
organogram to know the future demands of organization. Before human resource planning HR
manager has to define organizational objectives that company is aiming to achieve next year.
SUCCESSION PLANNING
RECOMMENDATIONS
For organization it is important to plan at least two successors to every position. Succession
planning is the parameter that saves organization from loss of productivity due to employee
leave. Following is the suggested succession plan for ABCMEDICINES (Pvt) ltd .
There are some factors for selecting successors. A right successor should possess

37 | P a g e
PROCESS OF RECRUITMENT
RECOMNEDATIONS
Recruitment process aims to attract potential candidates in the market. There are two types of
recruitment process
Internal recruitment
External recruitment
There is no culture for internal recruitment in ABCMEDICINES (Pvt) ltd . There are various
advantages of internal recruitment, company knows better about candidates strengths and
weaknesses, mutual trust between employee and employer already been established, ROI that
organization invested in their current workforce increased.
Following is the recommended recruitment process for ABCMEDICINES (Pvt) ltd :

38 | P a g e
Although ABCMEDICINES (Pvt) ltd follows some of the steps of this process but for hiring
right candidates and making this process effective it is very important to implement this process
step by step.
RECOMMENDATIONS
Employee development is in interest of both parties. Whenever candidate appointed he/she two
things need to be delivered "Performance on the job" for present and "training" for future.
Training is given for current job and where development is for future.
In ABCMEDICINES (Pvt) ltd , there is very good culture of training but these trainings provide
for product knowledge only. There are some loop wholes in employee development area, where
development for employees didn't define. To check employee development parameters look
into given diagram:

39 | P a g e
This Employee employer relationship diagram, defines in detail why employee works in an
organization and why employer need to develop employees for their long term pursuits. HR
manager ABCMEDICINES (Pvt) ltd needs to follow the performance management system
given in this diagram. Employee deliver their time, their skills and abilities to the organization
where employer has to deliver them performance management system to provide growth for
future and Compensation and rewards to motivate them.
As ABCMEDICINES (Pvt) ltd , is in unique industry of Traditional Complimentary alternative
medicines, they have to provide employees long term development programs. Employees just
not only "SAMDA therapy " ( offered by ABCMEDICINES (Pvt) ltd ) practitioners but they
have also provided with international diplomas, certification and foreign degree programs to
become strength for your organization and to become competitive organization in the market.
Every employee has to be provided with separate employee development program that would
define where they are now and in future what else they are going to learn and what
competencies they would achieve.
Employee development programs generate long term relationship between employees and
employer. These help organization to generate ROI.

40 | P a g e
PERFORMANCE MANAGEMENT
RECOMMENDATIONS
Basic performance management provides us following elements:
In ABCMEDICINES (Pvt) ltd , goals come from senior management ad every employee has to
be assigned their goals. But how to measure performance .There should be a performance
management document for every employee which should carries basic competencies and
behaviors marked quantitively to judge employees performance in numbers. There should be
complete control and timely check over this system is required to obtain desired results.
There should be a culture of ranking employees according to the value they are providing
ABCMEDICINES (Pvt) ltd . Follow given chart for employees rating on desired traits

41 | P a g e
There is also requirement of performance review form that would tells details about employees
performance in a year and what tasks he/she failed to perform. Performance review form also
tells the requirement of employees training needs. There are another rating system that tells how
is employee is performing and now where he/she should be whether he/she should be promoted
for above level or they need job rotation in other departments.

42 | P a g e
There is also performance dimensions are required on which performance will be judged.
Dimension tells the aspect of performance that determine effective job performance.
Performance Dimensions also identified by job analysis. Performance dimension cannot be
based on traits like punctuality, and discipline. These type of dimensions made performance
evaluation meaningless for employee. Following is the rating chart given where employees
marked
These type of forms are commonly filled by line managers and department heads. It is line
managers duty to provide timely feedback on these forms and send them to HR. Line manager is
responsible for taking decisions of promotions of employee in his department where HR has
responsibility to look into this process whether the decision of line manager is fair or favoritism
based.

43 | P a g e
APPRAISAL SYSTEM
RECOMMENDATIONS
Model of Appraisal System
This flow diagram shows that the step for appraisal is to define dimension of performance for
which this appraisal is going to be considered. The best Appraisal system management practice
is to combine Salary, career planning and development in one performance review document.
Appraisal Evaluation and Appraisal Interview.
To judge employees performance Line manager in ABCMEDICINES (Pvt) ltd has to follow
given steps.
Line manager has to set up meeting with employee . Discuss goals and competencies.
Check his/her performance log.
Line manager has to fill up the performance review form where he /she has to rate
employee performance on given competencies.
Line manager and employee both has to provide their comments on evaluation
document.
Basis of performance rating, line manager conduct interview with employee to provide
feedback on his/her performance.

44 | P a g e
RECOMMENDATIONS
Trainings at ABC Medicines ( Pvt ) ltd provided initially at the time of hiring. Training and
development culture should be continuous. Following is the recommended phases of training
that must be implemented in the organization to fulfill employees training needs.
There is training needs assessment model that provides information about Organization analysis,
Operations analysis, and individual analysis for training. Following is the recommended
Training needs assessment model.

45 | P a g e
COMPENSATION MANAGEMENT PLAN
RECOMMENDATIONS
Compensation and reward system also lies on quantitative parameters of remuneration.
Compensation strategy need to be defined to know how much is to be paid and who gets paid
what.
In ABCMEDICINES (Pvt) ltd , compensation strategy is important to define because various of
the employees working on the same job size where it is not necessary that the compensation
would be equal and same. To justify this and stop arising conflict there are three concepts that
clarify this issue easily.
Internal Equity
External Equity
Individual equity
Internal equity is a major factor, it focuses on the value of the task and that make up each job
not individual. Job evaluation is also required to know that job worth. Because it creates
transparency in the system and enables organization to do sound comparison with market. Job
Evaluation is based on facts and bring human judgment into points.

46 | P a g e
In ABCMEDICINES (Pvt) ltd , there is a need to define grading system on which also required
to define salary ranges according to grades. Grading system also helps in defining performance
management criteria and appraisal dimension. Need of external equity in ABCMEDICINES
(Pvt) ltd , is to meet high salary percentile in the industry. It is aimed to know the market
competitive salary at every grade.
Individual Equity refers to the fairness in pay scale of same job holder. According to this system
every job is assigned to pay range and every employee assigned to the pay rate within the job
range. Performance evaluation, seniority in ABCMEDICINES (Pvt) ltd and previous
experience would decide how much employee has to be paid. This step will be applied on senior
and old employees. HR manager has to make it transparent to everyone that every reward is
associated with performance of the individual.
HR manager has to generate system that clarify every employee that their compensation is
justified and based on their performance, and job size.
COMPENSATION PLAN
RECOMMENDED
Competitive pay scale in the market
Increase compensation with the performance of the employee
Increase each job pay with the increase scope and responsibilities
Quantify job evaluation system
The more the revenue of company the more the number bonuses in the years

47 | P a g e
ACTION PLAN
For implementing these recommendation following is the proposed action plan for ABC
Medicines (Pvt) ltd for the year 2015 to increase employee retention. Have a look into plan.
S# Action Plan Responsibility Start Finish Outcomes
1 Design New
organogram
And mention
grades and
positions. Get
approval of
senior
management
HR Manager-
Administration
Head
1/1/2015 7/1/2015 Will help to
understand new
positions and
their grades,
JDs. How tasks
are divided
among
positions in
Organogram.
2 Generate policy
for updating Job
description and
Job specification
HR Manager
-Line manager
8/1/2015 8/1/2015 To generate
continuous
practice of
updating JD
and JS
description
3 Get updated Job
description and
Job specifications
for every position
HR Manager-
Line Managers
9/1/2015 12/1/2015 Maintain JD
and Job
specification
document for
right hiring and
get updated
with new tasks
of individual.
4 Generate
employee
requisition form
HR Manager 10/1/2015 12/1/2015 To inform
about hiring
need in the
department
5 HR Planning HR Manager 13/1/2015 20/1/2015 To forecast
future needs of

48 | P a g e
human capital
in the
organization.
6 Get reviews on
HR planning
from senior
management
HR Manager-
Senior
Management
21/1/2015 23/1/2015 To know the
demand and
supply of labor
7 Start
implementation
of Manpower
plan
HR Manager 24/1/2015 30/1/2015 For
implementation
of best HR
practices
8 Design each and
every job
available in the
organization
HR Manager 1/2/2015 2/2/2015 Detailed work
and tasks
defined to
every
employee.
Better know
their
responsibilities.
9 Define Job
rotation, Job
enlargement
policy . Discuss
with
Administration
Head
HR Manager-
Administration
Head
3/2/2015 4/2/2015 Will provide
know how
about internal
recruitment
needs.
10 Propose
succession plan
policy to senior
management
HR Manager 5/2/2015 5/2/2015 Increment and
promotion,
Competitive
employees
need to be
promoted.
Motivate
competitive
individuals

49 | P a g e
11
Get approval and
Develop plan
HR Manager-
Senior
Managers
6/2/2015 8/2/2015 Increment and
promotion,
Competitive
employees
need to be
promoted.
Motivate
competitive
individuals
Implement
succession plan
HR Manager 9/2/2015 15/2/2015 Increment and
promotion,
Competitive
employees
need to be
promoted.
Motivate
competitive
individuals
Evaluate the
parameters and
implementation
of succession
planning
HR Manager 16/2/2015 20/2/2015 Measure career
growth of
individual
Present updated
recruitment
process to the
senior
management and
get approval
HR Manager-
Senior
Managers
21/2/2015 22/2/2015 Right people
will be hired
within given
time and cost.
Align Job
description and
tasks with
performance
dimensions.
HR Manager 23/2/2015 24/2/2015 Will help to
develop and
promote people
on the basis of
their
performance

50 | P a g e
dimensions.
Propose
performance
management
system to the
senior
management and
get Approval
HR Manager 25/2/2015 27/2/2015 Rate every
competency,
develop their
abilities and
reward
employees
Develop
employee rating
form and get
approval on it
HR Manager 28/2/2015 2/3/2015 Rate every
competency,
develop their
abilities and
reward
employees
Send form to
every line
manager and
discuss with them
its
implementation
HR Manager-line
managers
2/3/2015 5/3/2015 Rate every
competency,
develop their
abilities and
reward
employees
Develop new
training and
development
strategy
HR Manager 6/3/2015 18/3/2015 To know every
employees soft
and technical
skills and
develop their
lacking
Present new
training and
development
strategy to senior
management
HR Manager 19/3/2015 19/3/2015
To know every
employees soft
and technical
skills and
develop their
lacking
Get approval and
implement
HR Manager 21/3/2015 21/3/2015 To know every
employees soft
and technical

51 | P a g e
skills and
develop their
lacking
Define new
methods for
developing
employees on
soft skills.
HR Manager 1/4/2015 2/4/2015 Motivate them,
provide them
with career
development
Arrange trainings
and share their
schedule with
senior
management and
employees
required training
HR Manager 3/4/2015 25/4/2015 Train them to
compete,
generate skills
Evaluate the
success of
training program
and employee
performance
HR Manager 26/4/2015 30/4/2015 Train them to
compete,
generate skills
Formulate
employee
feedback form
and get approval
from senior
management
HR Manager 2/5/2015 5/52015 What they have
achieved? Are
they applying
the right skills
and abilities.
Communicate
employees about
the feedback
form
HR Manager 6/5/2015 6/5/2015 What they have
achieved? Are
they applying
the right skills
and abilities
Develop
compensation
HR Manager 7/5/2015 11/5/2015 Fairness and
transparency

52 | P a g e
plan and present
it to senior
management
based system.
Get rid of
perception
based conflicts
Get approval and
implement it.
transparency
based system.
Get rid of
perception
based conflicts
Define pay scales
based on grades
transparency
based system.
Get rid of
perception
based conflicts
Announce new
appraisal system
based on
appraisal
interview
transparency
based system.
Get rid of
perception
based conflicts
ABCMEDICINES (Pvt) ltd is required to follow and implement above given action plan to
control the issue of employee retention and employee satisfaction.
CONCLUSION
To become competitive organization, means is to have highly competitive human capital.
Acquiring competitive human capital is not easy task when it comes to their retention and
training and development. Every employee in the organization has right to must possess a
unique career development plan to secure their future in the organization as well as in the
market. ABCMEDICINES (Pvt) ltd has to apply all provided parameters and strategies to
generate long lasting relationship with employees and becoming market leader.

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