The document outlines human resource procedures and policies at FFC. It discusses the aim to prepare an HR manual and study existing procedures. It also highlights areas for improvement. The presentation includes information on FFC's vision, mission, core values and human resource division. It describes the organization structure, recruitment process, sources of recruitment, and procedures for hiring management and non-management employees. It also covers training and development programs for employees.

1. 1
HUMAN RESOURCE PROCEDURES & POLICIES
MANAUL OF FFC
Centre for Advanced Studies in Engineering
Islamabad
Presented by:
Muhammad Zubair Sp-2015-Msc/EM/003
Mohammad Umer Bashir Fa-2014-Msc/EM/013
Muhammad Akhtar Fa-2014-Msc/EM/032

2. 2
AIM
 To prepare the HR Procedures and Policies Manual of FFC
 To study existing HR procedures and policies manual in light of latest
development in filed of HRM
 To highlight the area of improvement /discrepancies and to suggest
the changes to be made for process improvement and enhance
Human Resource Management

3. 3
SEQUENCE OF PRESENTATION
 To prepare the HR Procedures and Policies Manual of FFC
 To study existing HR procedures and policies manual in light of latest
development in filed of HRM
 To highlight the area of improvement /discrepancies and to suggest the
changes to be made for process improvement and enhance Human Resource
Management

4. Incorporated in 1978 as a Joint Venture1
Commissioning of 2nd Manufacturing Unit in 19922
Fauji Fertilizer Bin Qasim Limited4
Manpower Training and Turnaround Services5
Fauji Fresh n Freeze, Askari bank limited, Multinational joint ventures in Sub Saharan African countries
6
FFC BRIEF OVERVIEW
3 Acquired ex -Pak Saudi Fertilizers Limited (PSFL) (NFC) in 2002

5. 5
VISION
 To be a leading national
enterprise with global
aspirations
 Effectively pursuing multiple
growth opportunities
 Maximizing returns to
the stakeholders
 Remaining socially and ethically
responsible

6. 6
MISSION
 To provide quality products in a safe,
reliable and efficient manner
 Maximizing returns to the shareholders
through core business and
diversification
 Providing a dynamic and challenging
environment for our employees

7. CCORE VALUES
 Excellence
 Consistency
 Compassion
 Fairness

8. HUMAN RESOURCE DIVISION AT FFC

9. +State of the art Production Facilities
+ Solid Financial Position
+Brand Preference
+ISO Certification
+ Clogged Market Share
+Non availability of R&D
+ Fixed Customer Base
+ Narrow Product Line
+ Less Potential for New Entrants
+ Industry’s Resistance to Recession
+ Horizontal as well as Vertical Diversification
+Gas Curtailment
+Deteriorating Local Currency
+Depleting Natural Gas Reserves
KET ASPECTS

10. SCOPE
Political
Economical
Social
Technological

11. HR STRATEGY
 Farm Advisory Centers (FAC)
 Sales expansion through geographical diversification
 Synchronize business processes
 Keeping resource utilization at an optimum level

12. VALUE CHAIN ANALYSIS
Plant Warehouse
Open Yard
Bulk Ware house
Chemical Warehouse
Packing Material
Transportation
Material handling
Packaging
Shipment
Information systems
Supply of Natural Gas
Desulphurization
Reforming
Methanation
Compression and Synthesis
Urea Reaction

13. VALUE CHAIN ANALYSIS
Marketing Network
Audio/video
Communications
Information systems
Testing
Communications
Information systems
Cost advantage
Differentiation
Technology

14. Modification Philosophy
QUANTATIVE ANALYSIS
Profit after Tax
20,135 M
4%
Revenue 74.481
0.2%
Retention 3.01
2%

15. Operation and Maintenance Division-
Organization
Overall Strength
Mgmt: 264
Staff: 790
Trainee Engineers: 47
Trainee Staff: 161
UM IT
SH Safety
CMO
HR
Manager
Procurement
Manager
Planning
Manager
Maintenance
Manager
E & I
Manager
Production
Manager
(Plant - I)
Production
Manager
(Plant - II)
Engineering
Manager
Training
Manager
General Manager
Plant
Plant
Management
(GMP)
Administration
(Resident Mngr.)
Production
(Sr. Prod. Mngr.)
Technical
Services
(Sr.Tech.S.Mngr.)
Maintenance
(Sr. Maint. Mngr.)
Finance
(Fin. Mngr. Plant)

16. Operation and Maintenance Division-
Organization
Overall Strength
Mgmt: 264
Staff: 790
Trainee Engineers: 47
Trainee Staff: 161
UM IT
SH Safety
CMO
HR
Manager
Procurement
Manager
Planning
Manager
Maintenance
Manager
E & I
Manager
Production
Manager
(Plant - I)
Production
Manager
(Plant - II)
Engineering
Manager
Training
Manager
General Manager
Plant
Plant
Management
(GMP)
Administration
(Resident Mngr.)
Production
(Sr. Prod. Mngr.)
Technical
Services
(Sr.Tech.S.Mngr.)
Maintenance
(Sr. Maint. Mngr.)
Finance
(Fin. Mngr. Plant)

17. Allows some flexibility to buyer & seller in that it
allows for deviation from
performance
Responsibility
Ceiling Price
Financial incentives
Flexibility
Cost above price ceiling is
responsibility of the seller
established price beyond which buyer
has no obligation to pay
Linking of financial incentives
tied to achieving agreed upon metrics
RECOMMENDATIONS

19. 1
• Suitable for acquiring
commercial items,
services fro which
detailed specification is
available
• establish fair and
reasonable prices at the
outset
2
• Adequate price
competition
• Establishing the base
level from which
adjustment is made
• Contingencies that
would otherwise be
included in price can
identified and covered
separately.
3
• Serious doubts
concerning stability of
economic stability
• Willing to accept fixed
price representing
assumption of the risks
involved.
RECOMMENDATIONS

20. Delivery Management
Relationship Management
Contract
Administration
Striking The Critical Balance
Delivery Management
Relationship Management
Contract
Administration

21. W
T
O
S
Strength
Solid financial position
State of the art production facilities
The only DAP manufacturer in Pakistan
Weaknesses
Mature industry with clogged overall market share
Reliance on depleting natural resource
Dependency on costly logistics in the absence of proper railway netwrok
Fixed customer base
Narrow product line
Opportunities
Horizontal as well as vertical diversification
Increase in product covering Macro and Micro nutrients
Growing fertilizer demand in country
Absence of substitute products
Opportunity to export fertilizer
Brand Goodwill
Threats
Increasing trend of gas price and curtailment
Depleting natural gas reserves & gas curtailment
Fluctuation in international prices of DAP and Phosphoric Acid
Domestic law and order situation
Declining international fertilizer prices
General inflation and environmental threats

22. Recruitment
• An integral part of the staffing strategy .
• Process of screening, and selecting qualified people
– workforce planning,
– internal transfers,
– job descriptions,
– classification and evaluation, and
– term of appointment.

23. Objectives
• Recruiting the right employees, for the right
positions in an efficient and effective manner.
• Advance planning of Staffing requirements
• Managing the employment with the required skills.
• New ideas and approaches
• Ensuring a diverse workforce.

24. Recruitment Policy of FFC
• FFC created a website
http://careers.ffc.com.pk/ad/Guidebook.pdf for
– creating applicant’s profile and submission of the application.
– E-Recruitment
– both external and internal recruitment processes

25. Recruitment Policy of FFC
• Recruitment activities
– remain within the approved workforce plan.
– for non-budgeted positions need special approval.
• To adopt fair and consistent methods of recruitment and selection.
• Preference to hiring for equally qualified candidates
– Pakistani Nationals over non Pakistanis and
– internal candidates over externals.
• HR Department
– facilitator for the recruitment process
– Responsible for issuing of all offer letters and employment contracts
• Hiring Authority
– Responsible for Selection of candidates.

26. Sources of Recruitment
• Internal Sources
– Retrenched Employees
– Retired Employees
– Dependent of deceased employees
– Internal Job Postings
– Promotions
– Demotions
– Moving across verticals

27. Sources of Recruitment
• External Sources
– Placement Agencies and Consultants
– Campus Recruitments
– Off-campus Recruitments
– Employees working in other organizations
– Employment Agencies
– Referrals
– Walk-Ins

28. Issues of Recruitment
• Qualified and experienced employees’ shortage in the
market.
• Lack of loyalty of young talent to the organization.
• Pressure to offer lucrative packages and
• Huge Cost of recruitment and

29. Recruitment Strategy-Key Areas to Address
• Business Strategy
• HR Strategy
• Gap Analysis
• External Market
• Recruitment Processes

30. Hiring Procedure
• Take the written tests
• Conduct the interview

31. Hiring of Management Employees
Purpose
To hire competent and most suitable to fill up the
vacant position in management cadre
Scope
Applicable to HR group Rawalpindi

32. Procedure
• Submission of Manpower requirement to HR group
• Comments and confirmation from OD section
• Soliciting management Approval
• Advertisement in print media
• Collecting Data for available candidates
• Entertaining the NTS cleared candidates
• Short listing of candidates
• Preliminary interviews

33. Procedure
• Instructions to all concerned for hiring arrangements
• Approval for call letters from Head HR.
• Final short listing with approval of Head HR
• Preparation of details of vacancies through OD section.
• Conducting Interviews.
• Preparation merit list for candidates
• Preparing set of documents for final interview

34. Hiring of Non Management Employees
Purpose
To hire competent and most suitable to fill up the vacant
position in non management cadre
Scope
• Hiring of Non management employees of all categories
• Decentralized policy
• Responsibility of Every Group/Div./Deptt
Responsibility
• Head HR

35. Hiring of Non Management Employees
Procedure
• Receiving application through mail
• Initiating case for hiring through Concerned Div and
respective HR Deptt.
• Obtaining the approval of MD.
• Formation of selection board
• Advertisement
• Short listing of employees
• Call Letters

36. Training and Development of Employees
• Company conducts on-the-job training(OJT) programs for its
employees.
– Functional programs- for expertise in respective domain.
– Talent Acceleration programs- improving soft skills
• Eligibility Criteria: voluntarily by self nomination or when
nominated by the branch managers.
• Duration: Monthly or Quarterly or Weekly depending upon product
and requirement.
• E-learning courses
• Career progression programs
• Leadership Development ladder

37. Training and Development of Employees
Two ways of Training
• Internal Training
– Done by pool of experienced people
• External Training is given
– By hiring the international consultancy firm
– For two months normally.
– By experienced persons of Denmark and China
– On the job and Off the job training

38. Compensation & Benefits
• Bonus(yearly)
• HRA
• Free medication
• Free pick & drop
• Other Allowance(Food, mobile phone bills, etc.)

39. Performance Management
Purpose
• Employees evaluation after six months.
• Feedback from employees.
• Record performance for rewards , annual increments and
their growth
Scope
• Applicable to HR Group Head Office
Responsibility
• HR Group

40. Performance Measurement
Procedure
• Annual Performance Appraisal Report(APAR) for each
employee
• Assessed grades and marks after APAR
• MD finalizes grades of management employees and
• Head of HR finalizes grades
of staff

41. Performance Measurement
• Target Achievement
• Quality of work
• Ethics used in target achievement
• Customer satisfaction

42. Motivation
Focus on the motivation of employees to do work by giving them
• incentives,
• bonuses,
• pay incentives,
• promotion,
• Medical facility,
• residential facility,
• fair well,
• annual dinners and much more.

43. Motivating Employees
• Motivational training programs
• Incentives
• Recognition to employees
• Sponsored holidays for employees and their family
• Helping them in converting a prospect into a sale.

44. LEAVE POLICY
• Objective
– Providing positive, productive and safe working environment
to its employees.
– Help employees to maintain a healthy work-life balance by
providing for and regulating their absence from work for rest,
recreation, other personal reasons, sickness and
hospitalization etc.

45. LEAVE POLICY
• General Considerations
– Leave quotas are based on a full calendar year i.e. from
January 01 to December 31
– Leave unless specified otherwise shall be administered on
working-day basis.
– All leave is processed/approved as specified in SAP Org
structure (except for Special Leave).
– Any leave that extends to next year will not be debited from
the employees next year quota and will be adjusted /
regulated from the same year.

46. LEAVE POLICY
• General Considerations
– While on leave the employee cannot engage himself in any
other employment or business or profession.
– Any employee proceeding abroad during the approved leave
period is required to inform his/ her respective Head of Org Unit
about the destination, duration and contact address during his/
her stay abroad.
– Any unapproved absence is a serious infraction of company policy
and should be reported to local HR within three working days from
the date of absence.

47. LEAVE POLICY
• General Considerations
– While on leave the employee cannot engage himself in any
other employment or business or profession.
– Recalling an employee before completion of leave should be
discouraged. However an employee can be recalled before
completion of leave due to exigencies of service with the
permission of respective functional head.
– Only Annual leaves are cashable at the time of separation from
Company.

48. LEAVE POLICY
• Leave Types
– Annual Leave
– Casual leave
– Sick leave
– Compensatory leave
– Maternity leave
– Family Responsibility Leave
– Family Illness Leave
– Disability Leave
– Study Leave
– Special Leave

49. LEAVE POLICY
• Annual Leave
– Annual Leave is essentially meant to provide paid time off to
employees from daily work routine as per the yearly quotas.
– Annual leave for less than five working days is not permitted or
adjustable except under special circumstances.
– No annual leave is permissible during the probation period
except under compelling circumstances.
– Any unused quota of Annual Leave shall be carried forward for
accumulation automatically. Ceiling for such an accumulation is
210 working days for Managers & above and 120 working days
for Deputy Managers & below without any exception.

50. LEAVE POLICY
• Annual Leave
– Any period of sickness during Annual Leave shall not be taken as
‘an absence on account of sickness’ but shall be counted
towards the period of Annual Leave.
– An employee, who desires to avail annual leave for more
number of days than his leave entitlement, will have to take
special permission from his Group/Functional Head.
– Accumulated Annual Leave is cashable to employees upon
separation from Company service.
– Advance annual leave beyond 15 days will be approved by the
management on merit.

51. LEAVE POLICY
• Casual Leave
– Casual Leave is essentially meant to provide paid time off for
personal commitments and emergencies as per yearly quota as
given in the above table.
– The leave will be allowed to be taken at one time for a maximum
period of 3 (three) working days. Furthermore, this leave will not
be cumulative and cannot be prefixed or suffixed to any other
type of leave except closed holidays.
– Casual leave is not cashable.

52. LEAVE POLICY
• Sick Leave
– Sick leave is intended to provide paid time off for sickness as per
the yearly quota.
– An employee can avail sick leave up to two consecutive days
without submitting any evidence of sickness.
– Any unused quota of sick leave gets accumulated up to
maximum 30 days during the service.
– Sick leave is not cashable.

53. LEAVE POLICY
• Compensatory Leave
– Compensatory leave

54. LEAVE POLICY
• Maternity Leave
•
– Regular Employees:
• Maternity Leave is meant for female employees hired on regular basis in
the Company to provide them with adequate paid time off for antenatal,
postnatal and infant care.
• The leave may be granted on calendar-month basis to the extent
required on the merit of each case for the first 3 months as full paid
leave.
• Maternity Leave can only be availed on the explicit recommendations of
respective Manager.
• Maternity Leave is admissible for a maximum of up to first 3 live
deliveries during an entire service in the company.

55. LEAVE POLICY
• Maternity Leave
•
– Management Trainees/ Contractual Employees
• Contractual employees will be entitled for un-paid maternity leave
only. The leave duration, will however, be included in the contractual
period and the contract term will be terminated according to the date
of contract agreement.
• There will be no maternity leave for MTs. However MTs on extended
training may be granted special leave on case to case basis.

56. LEAVE POLICY
• Family Responsibility Leave
– Employees who have been in employment with the employer for
more than 12 months and who work for the same employer for
at least 5 days per week is entitled to 3 days Family
Responsibility Leave full pay per annum.
– Family Responsibility Leave applies when the employees child is
born, when the employees child is sick, or in the event of the
death of the employee’s spouse or life partner, or the
employee’s parent, adoptive parent, grandparent, child, adopted
child, grandchild or sibling.
– Family Responsibility Leave is not cashable.

57. LEAVE POLICY
• Family Illness Leave
– Family Illness Leave is an extension of the benefits provided
under the Family and Medical Leave Policy. A qualifying
employee is entitled up to 52 weeks of leave without pay during
a 5-year period to care for the employee’s seriously ill child,
spouse, or parent. Health benefits are not covered under Family
Illness Leave.
– An employee’s eligibility for Family Illness Leave shall be made
based on the employee’s months of service and hours of work as
of the date the leave is to commence.

58. LEAVE POLICY
• Disability Leave
– Employees having one year of state service are covered under
the Short-Term Disability Plan. A maximum of one year of
disability leave (for either physical or mental disability) is
available to eligible employees.
•
– Short-term Disability provides 50% of the employee’s salary
after a 60- day waiting period for up to one year of the disability.
Short-term benefits can be extended up to an additional 12
months if the company receives the appropriate documentation
from the employee’s doctor verifying that the medical condition
will be resolved within the second year and can return to the
employee’s usual occupation within that second year

59. LEAVE POLICY
• Study Leave
– Regular, MTs, Managers and above employees are eligible to
pursuit of higher education for Masters / MS / MPhil for a
maximum period of 2 years.
– Probationary, temporary, or intermittent employees are not
eligible for educational leave.
– Educational Leave will not be granted in cases where
management has determined that neither the course, nor the
degree pursued, is of sufficient benefit to the Company.

60. LEAVE POLICY
• Special Leave
– Special Leave (either unpaid or paid) will be considered by the
Management under special circumstances on the merit of each
case usually after other leave quotas and balances have been
fully exhausted and is permissible up to maximum period of two
years.
– Some of the key factors to be considered in this regard include
Company’s interest, employee’s needs, performance, general
conduct, and tenure of service.

61. LEAVE POLICY
• Special Unpaid Leave (SUL)
– Improvement of skills through certifications, trainings, courses of
duration from 3-6 months.
– Participation in military reservist training or duty etc. for period
exceeding 30 days.
– Extended leave during child birth when maternity leave has been
consumed by the employee.
– Any other reason as deemed appropriate by the Management.
• Employees having less than five years of service in the company
are not eligible for SUL except under exceptional circumstances
on case to case basis up maximum of six months.
• Time taken for SUL shall not be counted for career advancement .

62. LEAVE POLICY
• Special Paid Leave (SPL)
– Special Paid leave (SPL) will only be allowed in exceptional
circumstances after all leave quotas and accumulations have
been consumed. An employee on SPL will continue to get all
the benefits that are admissible to him/her on any other leave.