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HRM Final Report
Human Resource Management
Final Report: Stylo
Submitted by:
Fahad Hassan Noor (L1F15BBAM0319)
Isma Saeeda Nadeem (L1F15BBAM0387)
Aqsa Afzal (L1F15BBAM0214)
Amir Mumtaz (L1F15BBAM0282)
Umer Arif (L1F15BBAM0302)
Section: F
Submitted To: Ma’am Qurat-Ul-Ain-Muqarab
Date: 29/01/18
HRM Final Report
Acknowledgement
In the name of Allah, the Most Gracious, the Ever Merciful.
We would like to thank “Allah Al-mighty” for providing us the opportunity and the resources for letting us
achieve our goal and objective.
We would really like to thank the concerned officials of STYLO GROUP for giving us ample time to conduct
the interviews and providing us with appropriate and relevant information.
Then our sincere and humble thanks to our Course Instructor Ma’am Qurat-Ul-Ain Muqarab, for her guidance,
support, cooperation and encouragement throughout the project work. Without her it would not have been
possible.
Last but not the least; we would also like to thank our friends for their continuous and constant support.
Regards:
Isma Saeeda Nadeem
Fahad Hassan Noor
Aqsa Afzal
Amir Mumtaz
Umer Arif
HRM Final Report
Table Of Contents
Acknowledgement ........................................................................................................................................2
History of Stylo.............................................................................................................................................6
Human Resource Management.....................................................................................................................7
HR Practices..............................................................................................................................................7
Need and Job analysis:..................................................................................................................................7
Need and Analysis in Stylo Group:...........................................................................................................7
Recruitment...................................................................................................................................................7
Recruitment in Stylo .................................................................................................................................8
Job Portals Stylo that Use: ........................................................................................................................8
Selection........................................................................................................................................................8
Cognitive Test:..........................................................................................................................................8
Personality Test:........................................................................................................................................8
Mode of interview (Selection) ..................................................................................................................8
Orientation ................................................................................................................................................9
Training.........................................................................................................................................................9
Training need analysis ..............................................................................................................................9
Strategic training need analysis...............................................................................................................10
New and Current Employee Training.....................................................................................................10
Methods of training.................................................................................................................................10
Performance Management and Appraisal...................................................................................................11
Performance Management Objectives ....................................................................................................11
Performance Appraisal in Stylo:.............................................................................................................12
Appraisal Method Used In Stylo.............................................................................................................12
Exit Interview..........................................................................................................................................12
Compensation and Benefits ........................................................................................................................13
Compensation in Stylo............................................................................................................................13
Factors that affect compensation packages:............................................................................................13
Compensation Packages based on: .........................................................................................................13
Benefits at Stylo......................................................................................................................................14
HRM Final Report
Firing...........................................................................................................................................................14
Labor Union................................................................................................................................................14
Quality circle:..........................................................................................................................................14
Issues HR Department Is Facing.................................................................................................................15
Other issues and Solution: ......................................................................................................................16
Employee Relationship...............................................................................................................................16
References...................................................................................................................................................16
Mr. Ali Saqlain................................................................................................................................16
Mr.Mian Rasikh Aziz......................................................................................................................16
Ma’am Zunaira................................................................................................................................16
,
HRM Final Report
HRM Final Report
History of Stylo
The story Stylo begin with a young man Mr. Azhar Hussain Siddiqui who started his career as
a shoe salesman in an old Anarkali Market in Lahore. His hard work earned him many
opportunity and the doors of success started to show up. He got many job opportunities but he
started his own company. In 1974 he started the company with the capital of just Rs.174 pkr.
From 1974 to 1992 Stylo had remained restricted in the Anarkali and was originally called Bano
Chappal.
His work ethic, vision and sheer dedication finally started to pay off and over a time Stylo
become the success story. Now Stylo is leading the market and one of the most renowned brands
of women’s fashion in footwear, clothing, accessories and jewelry in Pakistan, with the presence
in more than 45 cities and over 150 stores stretching through all the country. Stylo is
continuously growing to meet the increasing demand and to provide quality fashion in both
urban as well as in rural Pakistan.
HRM Final Report
Human Resource Management
The process of acquiring, training, appraising, compensating employees, and attending to their
labor relations, health and safety and fairness concerns.
HR Practices
The success of most of the businesses depends on HR department. The HR department should be
as much as appropriate, effective, well-communicated.
HR Practices helps in increasing quality and productivity, and to gain the competitive advantage
of a work force strategically aligned with organizations goals and objectives.
The main Objectives of HR Practices in an organization is to differentiate the organization from
its competitors by using efficient and effective HR practices. The best HR practice is one which
optimize a workforce so that it cannot only get work done, but also ensure a greater level of
efficiency, timeliness and quality as it accomplishes increases productivity overall.
Need and Job analysis:
Need Analysis is part of planning; it means which position are empty and need to be filled. Need
analysis is done by department head. In job analysis we add duties and responsibilities that are
required from a person who is applying for a specific position. When it’s done we post job ads in
portals.
Need and Analysis in Stylo Group:
In Stylo there is a proper process of Job Analysis and Need Analysis. Stylo update their JD’s and
JS on quarterly basis depending on hierarchy and organizational structure. The reason behind
updating Job description and Job specification is that because various positions are being vacant
and some of them are being added as there is change in trends. If there is any position vacant
then department head contact HR and then there is filling of a form from that department head
for need, after that it gets approved and HR department post Job Ads. They have various Jobs
description and specification according to Job title, because criteria vary from position to
position. Criteria setting are a collaborated decision between HR and other departments
depending on positions. Some of Criteria that are involved are Human requirement, working
standards, Job context, duties and responsibilities.
Recruitment
Recruitment is core function of human resource management. It is the first step towards
appointment. Recruitment is overall process of attracting and appointing candidates. Recruitment
sources: There are two types of recruitment sources are used in an organization
1) Internal sources
2) External sources
HRM Final Report
Recruitment in Stylo
Stylo group uses both sources of recruitment that are Internal and External Recruitment. In
internal recruitment they mostly use job posting and send emails to employees. For external
recruitment they use Advertising:
• By social media (Facebook)
• By internet (Rozi.pk and jobeez.com)
Job Portals Stylo that Use:
Stylo use Rozee.pk for posting job vacancies because rozee.pk is one of big job portal in
Pakistan and Stylo has about 1.7K Followers on their profile on rozee.pk which are great source
of their building pool of CVs. Stylo itself job portal is under developing mode that will be
launched soon and will be available on their website in careers options. This portal will have
option for screening CVs of their interest and save their time.
Selection
Many candidates apply for job in response to vacancy ads by submitting their CVs. Stylo
Selection board goes through those CVs and select those candidates which initially fulfill their
criteria of selection board after prescreening selection board short lists the candidates, who are
considered most suitable for this job. Then Stylo conduct Tests and they take Two types of tests.
Cognitive Test:
Stylo conducted Test of Cognitive Abilities for their selection process. This test is mostly taken
from fresh graduates whereas some people are selected on the basis of experience.
Personality Test:
Interview is the procedure designed to predict future job performance according to their oral
response.
Mode of interview (Selection)
After initial screening of applications forms interviews and test are conducted for Hiring. Three
types of Interviews held in Stylo:
1. Initial Interview
2. Technical Interview
3. Final Interview
HR department is involved in all interviews; initial interview is conduct by Hr. department.
Technical interview department head is involved and in Final interview there is panel involved
directors and CEO. Candidates are interviewed individually in panel interviews. For group
interviews they ask candidates to fill form and write an essay of their own choice from which
their caliber level is checked and their knowledge. This tell Stylo that if that person will fit into
HRM Final Report
their organization culture or not. They have code of conduct that is signed by every new
employer and employee to maintain the decorum.
Orientation
A newly hired employee is oriented so that he can get the idea about organizational setup so that
he may feel at home. At Stylo orientation plan cover the following points:
• Visit to different dept. of company
• Company’s policy, rules and regulations
Stylo want our new employee couldn’t panic and feel stress on first day so they Make new-hires
feel welcome and at ease in their new work environment. Explain what the company is about-
how it originated, who its customers and competitors are, how it differs from other organizations,
what its structure, vision, values, and short- and long-term objectives are. Inform new-hires
about company products, operational methods, and policies and procedures.
Orientation varies position to position with proper plan. In executive level position they have
meetings and detailed plans and they visits depending on which department they are. And in
some positions they had a concise one day orientation plan.
Training
Stylo as a shoe brand is both manufacturer and service provider. When customer enters in the
store she/he not only buying the pair of shoes but they are also buying the experience, and an
inexperience, and rude salesperson can completely ruin this experience, which can be very
damaging for the brand image. Stylo highly rely on their in-store sales staff in terms of customer
satisfaction and revenue generation. A highly skilled salesperson can be valuable asset to the
company. Training at Stylo is an ongoing process. They have extensive detail network Training
regularly in head office.
Stylo follow a method of Performance Management System (PMS) for evaluating the
quarterly performance of their employees. Employees who are lacking in the performance are
selected for the training programs. Employees that are performing according to the standards set
and have good Key Performance Indicator (KPI) score are also enrolled in routine training
programs to meet the organizational goals effectively and efficiently.
Training need analysis
In Stylo they have Employee Development Programs which is also linked with employees KPI
scores. The first line manager or departmental manager develops a need analysis for the training
of his/her subordinates based on their KPI scores. Departmental manager than provide all the
information and training need analysis to the Human resource manager which than develop
Employee Development plan.
HRM Final Report
Strategic training need analysis
This is an ongoing process at Stylo and in integration with their long term strategic goals. Stylo
wants to have their presence in every region of Pakistan, having more than 100 outlets. They are
the leading female fashion shoe brand in Pakistan with more retail outlets than any of their
competitor. To maintain that position they have to expand continuously geographically. To meet
this strategic goal they have to hire new people to fill and populate the retail stores. Strategic
training programs are ongoing process of training the new employees.
New and Current Employee Training
In Stylo, they hire internal and external trainers for new and current employees. Example they
are hiring an employee for their retail shop. They do proper training for 3-6 months then they
allocate a shop for him or her. (This is used for retail & manufacturing). For head office or
current employees this training is not need just because they are already trained and well
experienced too, but in head office On Job Training is more used
Currently they are using software like: AX, oracle 65, SAC, Time trick and obviously they
trained new employee for any updated software.
Training are given for motivation to Current Employees, which they organize trips, food society
offers free food (only in office timing), gaming tournaments and motivational movies.
Methods of training
Both in formal and formal methods of learning are being used at Stylo.
 Job instruction training
 Lectures
 Behavior modelling
 Audio-visual based learning
 On job training
These are few of the methods that are being used by Stylo for their in store salespersons. Job
instruction training or ongoing training is very popular which sequential and step by step
learning. In this method employees are being taught to follow sequence of steps from customers
entering the store to the post purchase steps. For a fresh employee who has no experience, they
provide the ongoing training which is also called mentoring handled by line manager.
Audio-visual based training is also very effective tool, in this method salesperson watch a
series of videos about how to behave and act in front of the customers and they are being taught
the skills that are going to be used in their job.
On Job training and Job Rotation also held in Stylo Group, it’s for current employees
HRM Final Report
Performance Management and Appraisal
After completion of all the previous steps in the HR department, now it’s time to appraise the
performance of the employees. One must keep in mind that performance management and
performance appraisals are two different things and are considered separately in the terms of
organization.
Performance appraisal deals with setting working standards, assessing performance of the
employees and afterwards providing feedback to the employees to motivate, correct and continue
their performance, later on this appraisal is used to compensate the employees in terms of
financial and non-financial benefits
Performance management is an integrating approach to ensure that the performance of the
employee matches with the goals and objectives of the company and it must contribute towards
strategic aims.
Performance Management Objectives
The Stylo as an organization also focuses on the performance management approach in order to
ensure that following objectives are obtained:
 They ensure that quality work is performed by the employees that would ultimately
benefit the organization.
 They try to avoid appraisal issues like biasness, central tendency etc.
 Their main focus is on strategic goals in terms of performance given by employees of the
organization.
Before doing performance appraisal the company had ensured that it had proper set of guidelines
for the employees. They assign specific goals that are measurable and challenging but yet
attainable. Furthermore they encourage the participation of its employees. There might be a
problem in using this approach as it may have a conflict with the subordinates over objectives of
the company or may be the company’s objectives are unclear. Lastly appraisal process may be
time consuming. Following problems may occur while doing performance appraisal
 Unclear standards
 Halo effect
 Leniency or strictness
 Biasness
To avoid these errors in performance appraisal following corrective measure are taken by the
member of Stylo appraisal management team.
 They focus on the problem.
 They select multiple tools to get accurate results.
 They train the supervisors to use these tools correctly.
 They try to control outside influences that may affect the appraisal.
HRM Final Report
 They keep a record of all the activities of their employees to be used in appraisal time.
Performance Appraisal in Stylo:
At Stylo as we learned in this course the performance appraisal is done by the immediate boss or
the departmental head, but the tool for appraisal is developed and provided by the HR
department. They have developed Key Performance Indicator (KPIs), each KPI has specific
weightage assigned to it. HR department provide appraisal forms to the departmental heads on
quarterly basis and departmental managers fill appraisal forms because they believe that
feedback given at the end of the year is of no use to the company and may not be justified
correctly as it may be based on the single error made by the employee at the end of the year due
to other reasons, so the appraisal done through this way may go against that employee and hence
cause decreased motivation level that would ultimately lower the upcoming performance of the
employee. And send them to the HR. HR than at the end of the year compile all the quarterly
filled appraisal forms and analyze them and develop results on the base of appraisal forms.
Yearly increments, bonuses and other performance related benefits depend on the result of the
appraisal. There is a system of in depth interviews at the time of appraisal at the Stylo, so that
employees can work on their weaknesses and can get the right training for the skills that he/she is
lacking.
Appraisal Method Used In Stylo
Self-rating is another form of appraisal so that the employee should feel that nothing is unfair
while his/her appraisal.
Collogues also fill the appraisal form depending on their judgment of their colleague in terms of
performance.
360 Degree feedback, it is the feedback taken from all the people in the organizations that are
directly related to the person whose appraisal is being done it includes the boss, subordinates,
and colleagues.
180-Degree Feedback, from this method Employee can be judged. Here two people are
involved in the feedback process; one is the employee himself and his Line Manager.
Immediate supervisors provide their time to tome feedback so the corrections must be made on
immediate bases before the huge loss to the company in any terms.
Later on based on the appraisal form from these various sources, appraisal interviews are also
done by the managers of the particular department so that employee does not feel that something
unfair had happened. Appraisal interviews are followed by these points
Exit Interview
In Stylo, whenever an Employee leave the Organization the Exit interview is conducted just
because of knowing the reason behind so that they can try to solve the problem and further work
on it.
HRM Final Report
Compensation and Benefits
The performance appraisal done at the previous step is later used to compensate the employees.
The term compensation means all the form of pay to reward the employee against his work done
for the organization. Compensation can be divided into following categories:
Financial: it include all the compensation made through money against the work performed by
the employee
Non- financial: it includes all other benefits except money that are given as a reward to
compensate the employee for work performed.
Compensation in Stylo
When we asked Mr. Ali about the importance of equity theory at Stylo he answered that it is very
critical for us to compete with market especially when it comes to the sales staff. The switching
rate in salesperson is very high and it is quite a challenge that they are facing. They try to make
compensation procedure as transparent as they can so that there will no demotivation between
the employees. They are paying what the market is paying to sales staff and in some cases they
are paying more than market to retain their experienced salespersons because the competition is
very high in the business and the success of company is fairly dependent on the skills and
expertise of the salesperson.
Factors that affect compensation packages:
 Government has set a wage and pay rate for the labors and employees of any firm.
 Competitors also affect compensation because if the firm would not offer competitive
packages the employees would lose their interest
 JOB description also contributes towards setting compensation package as it relate the
package to the technicality of the task that is to be performed.
 Rank of the employee is also a factor to design the compensation package.
The above all points must be considered, otherwise the employee won’t be attracted towards
your firm and his motivation level to perform work may also be decreased.
Compensation Packages based on:
In the firm we have selected following compensation packages are given on the basis of scales of
the employees and these differ for the labor working in the factory:
 Salary to the employees depending upon their rank/scale of Employees
 Wages to the labor keeping in mind the minimum wage rate.
 Commission is given to the sales team to full fill the target that has already been set.
 Overtime pay to both employees and labor is also given to compensate their opportunity
cost
HRM Final Report
 Bonuses are also given to the employees depending on their performance.
Benefits at Stylo
Other than salary and wage, following benefits are also provided depending on the rank of the
employees.
 Pick and drop facility is given to the labors of the firm.
 Travel allowance is given to the employees.
 Meal allowances are also given to both labor and the employees.
 Accommodation is also provided for the male employees of the organization.
 14 Annual leaves are allowed to the employees and labor and are compensated if the
employee has a call for extra time. These leaves are not carried forward to the next year if
not consumed. This year Leaves include Sick leaves and Maternity leaves
 Insurance is provided to the employees which include Medical insurance
 Free of cost trips are also arranged for the employees
 Extracurricular activities are also encouraged at the organization. Like table tennis, carom
board and other related games for the employee’s relaxation.
 Provide daycare facility for the moms.
 Give Provident Funds.
Firing
There is as such no firing. The owner of the Stylo group said that if you hire someone than give
HR training or motivate him or her to not leave and give his 100%. Firing is not the solution. If
the employer fire the employees because of their standard are not focused by them, then why you
hire them only just for firing.
Labor Union
There is no labor union. Because Employee have given their rights what they deserve and they
are satisfy with employer. Instead of labor union they use quality circle method.
Quality circle:
5 people team. They choose their representative. There is one coordinator who is supervising
them. They do meetings on weekly or monthly bases. In those meetings they discuss issues and
there solutions. If they did not get any solution or the issue can’t be solved by them than they
convey their message to HR executives and they try to resolve the issue or they will convey
message to further seniors. This was 1st
time practice by Local Pakistani Company.
HRM Final Report
Issues HR Department Is Facing
When we asked the Stylo about the challenges or issues that there HR is facing they told us that
the problems and issues are arise on the routine bases and necessary actions are being taken on
continuously bases to resolve thousand issues. They were reluctant in revealing their problems at
first but after few questions they started to open up what they faced.
The case they discuss with was related to theft crime. The Stylo Group offers their employees a
gift card. Basically the purpose of this card is to motivate employees and try to engage them so
that they can purchase Stylo products. On each purchase they get points. And by collecting some
fixed amount of points they can get special discount offers etc. The condition was if the
employee purchase product for his or her personal use then the points will be awarded. The
process of getting theses points was very simple. The employee has to show his or her card to the
cashier and the cashier will scan the card. And the points will be awarded to him or her. One of
the employee sales people tries to cheat the system. What he did was on every random customer
purchase he scans his card and the system awarded him points. 2-3 times he tricked the system
easily. When the internal audit was done the auditors give his details to the HR department. HR
department didn’t take action at that time. But they observe him. Again he did the same trick and
gets many points than HR department called him and ask him how he get such points with so
much consistency. He explained that he has marriages and such stuff. They compare his salary
and bonuses with the products he purchased as mentioned by him. Than they check the camera
HRM Final Report
footage. The salesperson was guilty. The decision of HR department was to fire that person so
that other employees don’t try these types of tricks to cheat.
Other issues and Solution:
As such HR department of Stylo group is facing some issues which are time consuming. Firstly,
the salaries they pay and the incentives are on job grades. They categorized jobs in
ranks/Grading. For example L1 is for labor. L2 is for senior labor etc. So when they enter the
new employee data in software they grade him or her with standardized grading. If the grades
were entered incorrectly the employee will get different salary or incentives. And the procedure
to solve this problem is more time consuming.
Secondly the other major issue is labor workers left without giving notice. That can cause a huge
lose. It slows down the production and again they have to look for the labor worker and train
them.
Lastly, the common issues they face is attendance issue. Attendance is biometric but still we
face issues. So after having biometric they still take manual attendance of labors. Most of the
labor workers work throughout the month but in the end they counted as short attendance labor
worker. So solving this issue they have to take manual attendance.
Employee Relationship
In Stylo Employee’s relationship with other employees are good and their environment is
friendly. They work with each other in a team. They have respect for each other. The Stylo is
good for your initial stage in your career. You experienced a good work environment and it will
be fun for you the management are supportive and culture is also good. The Enjoyable part is
work pleasant of work place environment.
2 holidays in a week and except these, 2 more is allowed in a month, medical leave, urgent leave
etc. Nice office environment with helping and young colleagues who are always ready to share
experience and knowledge. The only hardest part is the salary/benefit system which causes to
low the moral. Salary structure for the old employees are good but not for new enrolments.
References
 Mr. Ali Saqlain
Designation: Executive (PMS)
 Mr.Mian Rasikh Aziz
Designation: HR Assistant Manager
 Ma’am Zunaira
Designation: HR Executive
HRM Final Report
A Group of UCP while Visiting Stylo Head Office.

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Stylo Human Resource Management - 2018 - Final Project

  • 1. HRM Final Report Human Resource Management Final Report: Stylo Submitted by: Fahad Hassan Noor (L1F15BBAM0319) Isma Saeeda Nadeem (L1F15BBAM0387) Aqsa Afzal (L1F15BBAM0214) Amir Mumtaz (L1F15BBAM0282) Umer Arif (L1F15BBAM0302) Section: F Submitted To: Ma’am Qurat-Ul-Ain-Muqarab Date: 29/01/18
  • 2. HRM Final Report Acknowledgement In the name of Allah, the Most Gracious, the Ever Merciful. We would like to thank “Allah Al-mighty” for providing us the opportunity and the resources for letting us achieve our goal and objective. We would really like to thank the concerned officials of STYLO GROUP for giving us ample time to conduct the interviews and providing us with appropriate and relevant information. Then our sincere and humble thanks to our Course Instructor Ma’am Qurat-Ul-Ain Muqarab, for her guidance, support, cooperation and encouragement throughout the project work. Without her it would not have been possible. Last but not the least; we would also like to thank our friends for their continuous and constant support. Regards: Isma Saeeda Nadeem Fahad Hassan Noor Aqsa Afzal Amir Mumtaz Umer Arif
  • 3. HRM Final Report Table Of Contents Acknowledgement ........................................................................................................................................2 History of Stylo.............................................................................................................................................6 Human Resource Management.....................................................................................................................7 HR Practices..............................................................................................................................................7 Need and Job analysis:..................................................................................................................................7 Need and Analysis in Stylo Group:...........................................................................................................7 Recruitment...................................................................................................................................................7 Recruitment in Stylo .................................................................................................................................8 Job Portals Stylo that Use: ........................................................................................................................8 Selection........................................................................................................................................................8 Cognitive Test:..........................................................................................................................................8 Personality Test:........................................................................................................................................8 Mode of interview (Selection) ..................................................................................................................8 Orientation ................................................................................................................................................9 Training.........................................................................................................................................................9 Training need analysis ..............................................................................................................................9 Strategic training need analysis...............................................................................................................10 New and Current Employee Training.....................................................................................................10 Methods of training.................................................................................................................................10 Performance Management and Appraisal...................................................................................................11 Performance Management Objectives ....................................................................................................11 Performance Appraisal in Stylo:.............................................................................................................12 Appraisal Method Used In Stylo.............................................................................................................12 Exit Interview..........................................................................................................................................12 Compensation and Benefits ........................................................................................................................13 Compensation in Stylo............................................................................................................................13 Factors that affect compensation packages:............................................................................................13 Compensation Packages based on: .........................................................................................................13 Benefits at Stylo......................................................................................................................................14
  • 4. HRM Final Report Firing...........................................................................................................................................................14 Labor Union................................................................................................................................................14 Quality circle:..........................................................................................................................................14 Issues HR Department Is Facing.................................................................................................................15 Other issues and Solution: ......................................................................................................................16 Employee Relationship...............................................................................................................................16 References...................................................................................................................................................16 Mr. Ali Saqlain................................................................................................................................16 Mr.Mian Rasikh Aziz......................................................................................................................16 Ma’am Zunaira................................................................................................................................16 ,
  • 6. HRM Final Report History of Stylo The story Stylo begin with a young man Mr. Azhar Hussain Siddiqui who started his career as a shoe salesman in an old Anarkali Market in Lahore. His hard work earned him many opportunity and the doors of success started to show up. He got many job opportunities but he started his own company. In 1974 he started the company with the capital of just Rs.174 pkr. From 1974 to 1992 Stylo had remained restricted in the Anarkali and was originally called Bano Chappal. His work ethic, vision and sheer dedication finally started to pay off and over a time Stylo become the success story. Now Stylo is leading the market and one of the most renowned brands of women’s fashion in footwear, clothing, accessories and jewelry in Pakistan, with the presence in more than 45 cities and over 150 stores stretching through all the country. Stylo is continuously growing to meet the increasing demand and to provide quality fashion in both urban as well as in rural Pakistan.
  • 7. HRM Final Report Human Resource Management The process of acquiring, training, appraising, compensating employees, and attending to their labor relations, health and safety and fairness concerns. HR Practices The success of most of the businesses depends on HR department. The HR department should be as much as appropriate, effective, well-communicated. HR Practices helps in increasing quality and productivity, and to gain the competitive advantage of a work force strategically aligned with organizations goals and objectives. The main Objectives of HR Practices in an organization is to differentiate the organization from its competitors by using efficient and effective HR practices. The best HR practice is one which optimize a workforce so that it cannot only get work done, but also ensure a greater level of efficiency, timeliness and quality as it accomplishes increases productivity overall. Need and Job analysis: Need Analysis is part of planning; it means which position are empty and need to be filled. Need analysis is done by department head. In job analysis we add duties and responsibilities that are required from a person who is applying for a specific position. When it’s done we post job ads in portals. Need and Analysis in Stylo Group: In Stylo there is a proper process of Job Analysis and Need Analysis. Stylo update their JD’s and JS on quarterly basis depending on hierarchy and organizational structure. The reason behind updating Job description and Job specification is that because various positions are being vacant and some of them are being added as there is change in trends. If there is any position vacant then department head contact HR and then there is filling of a form from that department head for need, after that it gets approved and HR department post Job Ads. They have various Jobs description and specification according to Job title, because criteria vary from position to position. Criteria setting are a collaborated decision between HR and other departments depending on positions. Some of Criteria that are involved are Human requirement, working standards, Job context, duties and responsibilities. Recruitment Recruitment is core function of human resource management. It is the first step towards appointment. Recruitment is overall process of attracting and appointing candidates. Recruitment sources: There are two types of recruitment sources are used in an organization 1) Internal sources 2) External sources
  • 8. HRM Final Report Recruitment in Stylo Stylo group uses both sources of recruitment that are Internal and External Recruitment. In internal recruitment they mostly use job posting and send emails to employees. For external recruitment they use Advertising: • By social media (Facebook) • By internet (Rozi.pk and jobeez.com) Job Portals Stylo that Use: Stylo use Rozee.pk for posting job vacancies because rozee.pk is one of big job portal in Pakistan and Stylo has about 1.7K Followers on their profile on rozee.pk which are great source of their building pool of CVs. Stylo itself job portal is under developing mode that will be launched soon and will be available on their website in careers options. This portal will have option for screening CVs of their interest and save their time. Selection Many candidates apply for job in response to vacancy ads by submitting their CVs. Stylo Selection board goes through those CVs and select those candidates which initially fulfill their criteria of selection board after prescreening selection board short lists the candidates, who are considered most suitable for this job. Then Stylo conduct Tests and they take Two types of tests. Cognitive Test: Stylo conducted Test of Cognitive Abilities for their selection process. This test is mostly taken from fresh graduates whereas some people are selected on the basis of experience. Personality Test: Interview is the procedure designed to predict future job performance according to their oral response. Mode of interview (Selection) After initial screening of applications forms interviews and test are conducted for Hiring. Three types of Interviews held in Stylo: 1. Initial Interview 2. Technical Interview 3. Final Interview HR department is involved in all interviews; initial interview is conduct by Hr. department. Technical interview department head is involved and in Final interview there is panel involved directors and CEO. Candidates are interviewed individually in panel interviews. For group interviews they ask candidates to fill form and write an essay of their own choice from which their caliber level is checked and their knowledge. This tell Stylo that if that person will fit into
  • 9. HRM Final Report their organization culture or not. They have code of conduct that is signed by every new employer and employee to maintain the decorum. Orientation A newly hired employee is oriented so that he can get the idea about organizational setup so that he may feel at home. At Stylo orientation plan cover the following points: • Visit to different dept. of company • Company’s policy, rules and regulations Stylo want our new employee couldn’t panic and feel stress on first day so they Make new-hires feel welcome and at ease in their new work environment. Explain what the company is about- how it originated, who its customers and competitors are, how it differs from other organizations, what its structure, vision, values, and short- and long-term objectives are. Inform new-hires about company products, operational methods, and policies and procedures. Orientation varies position to position with proper plan. In executive level position they have meetings and detailed plans and they visits depending on which department they are. And in some positions they had a concise one day orientation plan. Training Stylo as a shoe brand is both manufacturer and service provider. When customer enters in the store she/he not only buying the pair of shoes but they are also buying the experience, and an inexperience, and rude salesperson can completely ruin this experience, which can be very damaging for the brand image. Stylo highly rely on their in-store sales staff in terms of customer satisfaction and revenue generation. A highly skilled salesperson can be valuable asset to the company. Training at Stylo is an ongoing process. They have extensive detail network Training regularly in head office. Stylo follow a method of Performance Management System (PMS) for evaluating the quarterly performance of their employees. Employees who are lacking in the performance are selected for the training programs. Employees that are performing according to the standards set and have good Key Performance Indicator (KPI) score are also enrolled in routine training programs to meet the organizational goals effectively and efficiently. Training need analysis In Stylo they have Employee Development Programs which is also linked with employees KPI scores. The first line manager or departmental manager develops a need analysis for the training of his/her subordinates based on their KPI scores. Departmental manager than provide all the information and training need analysis to the Human resource manager which than develop Employee Development plan.
  • 10. HRM Final Report Strategic training need analysis This is an ongoing process at Stylo and in integration with their long term strategic goals. Stylo wants to have their presence in every region of Pakistan, having more than 100 outlets. They are the leading female fashion shoe brand in Pakistan with more retail outlets than any of their competitor. To maintain that position they have to expand continuously geographically. To meet this strategic goal they have to hire new people to fill and populate the retail stores. Strategic training programs are ongoing process of training the new employees. New and Current Employee Training In Stylo, they hire internal and external trainers for new and current employees. Example they are hiring an employee for their retail shop. They do proper training for 3-6 months then they allocate a shop for him or her. (This is used for retail & manufacturing). For head office or current employees this training is not need just because they are already trained and well experienced too, but in head office On Job Training is more used Currently they are using software like: AX, oracle 65, SAC, Time trick and obviously they trained new employee for any updated software. Training are given for motivation to Current Employees, which they organize trips, food society offers free food (only in office timing), gaming tournaments and motivational movies. Methods of training Both in formal and formal methods of learning are being used at Stylo.  Job instruction training  Lectures  Behavior modelling  Audio-visual based learning  On job training These are few of the methods that are being used by Stylo for their in store salespersons. Job instruction training or ongoing training is very popular which sequential and step by step learning. In this method employees are being taught to follow sequence of steps from customers entering the store to the post purchase steps. For a fresh employee who has no experience, they provide the ongoing training which is also called mentoring handled by line manager. Audio-visual based training is also very effective tool, in this method salesperson watch a series of videos about how to behave and act in front of the customers and they are being taught the skills that are going to be used in their job. On Job training and Job Rotation also held in Stylo Group, it’s for current employees
  • 11. HRM Final Report Performance Management and Appraisal After completion of all the previous steps in the HR department, now it’s time to appraise the performance of the employees. One must keep in mind that performance management and performance appraisals are two different things and are considered separately in the terms of organization. Performance appraisal deals with setting working standards, assessing performance of the employees and afterwards providing feedback to the employees to motivate, correct and continue their performance, later on this appraisal is used to compensate the employees in terms of financial and non-financial benefits Performance management is an integrating approach to ensure that the performance of the employee matches with the goals and objectives of the company and it must contribute towards strategic aims. Performance Management Objectives The Stylo as an organization also focuses on the performance management approach in order to ensure that following objectives are obtained:  They ensure that quality work is performed by the employees that would ultimately benefit the organization.  They try to avoid appraisal issues like biasness, central tendency etc.  Their main focus is on strategic goals in terms of performance given by employees of the organization. Before doing performance appraisal the company had ensured that it had proper set of guidelines for the employees. They assign specific goals that are measurable and challenging but yet attainable. Furthermore they encourage the participation of its employees. There might be a problem in using this approach as it may have a conflict with the subordinates over objectives of the company or may be the company’s objectives are unclear. Lastly appraisal process may be time consuming. Following problems may occur while doing performance appraisal  Unclear standards  Halo effect  Leniency or strictness  Biasness To avoid these errors in performance appraisal following corrective measure are taken by the member of Stylo appraisal management team.  They focus on the problem.  They select multiple tools to get accurate results.  They train the supervisors to use these tools correctly.  They try to control outside influences that may affect the appraisal.
  • 12. HRM Final Report  They keep a record of all the activities of their employees to be used in appraisal time. Performance Appraisal in Stylo: At Stylo as we learned in this course the performance appraisal is done by the immediate boss or the departmental head, but the tool for appraisal is developed and provided by the HR department. They have developed Key Performance Indicator (KPIs), each KPI has specific weightage assigned to it. HR department provide appraisal forms to the departmental heads on quarterly basis and departmental managers fill appraisal forms because they believe that feedback given at the end of the year is of no use to the company and may not be justified correctly as it may be based on the single error made by the employee at the end of the year due to other reasons, so the appraisal done through this way may go against that employee and hence cause decreased motivation level that would ultimately lower the upcoming performance of the employee. And send them to the HR. HR than at the end of the year compile all the quarterly filled appraisal forms and analyze them and develop results on the base of appraisal forms. Yearly increments, bonuses and other performance related benefits depend on the result of the appraisal. There is a system of in depth interviews at the time of appraisal at the Stylo, so that employees can work on their weaknesses and can get the right training for the skills that he/she is lacking. Appraisal Method Used In Stylo Self-rating is another form of appraisal so that the employee should feel that nothing is unfair while his/her appraisal. Collogues also fill the appraisal form depending on their judgment of their colleague in terms of performance. 360 Degree feedback, it is the feedback taken from all the people in the organizations that are directly related to the person whose appraisal is being done it includes the boss, subordinates, and colleagues. 180-Degree Feedback, from this method Employee can be judged. Here two people are involved in the feedback process; one is the employee himself and his Line Manager. Immediate supervisors provide their time to tome feedback so the corrections must be made on immediate bases before the huge loss to the company in any terms. Later on based on the appraisal form from these various sources, appraisal interviews are also done by the managers of the particular department so that employee does not feel that something unfair had happened. Appraisal interviews are followed by these points Exit Interview In Stylo, whenever an Employee leave the Organization the Exit interview is conducted just because of knowing the reason behind so that they can try to solve the problem and further work on it.
  • 13. HRM Final Report Compensation and Benefits The performance appraisal done at the previous step is later used to compensate the employees. The term compensation means all the form of pay to reward the employee against his work done for the organization. Compensation can be divided into following categories: Financial: it include all the compensation made through money against the work performed by the employee Non- financial: it includes all other benefits except money that are given as a reward to compensate the employee for work performed. Compensation in Stylo When we asked Mr. Ali about the importance of equity theory at Stylo he answered that it is very critical for us to compete with market especially when it comes to the sales staff. The switching rate in salesperson is very high and it is quite a challenge that they are facing. They try to make compensation procedure as transparent as they can so that there will no demotivation between the employees. They are paying what the market is paying to sales staff and in some cases they are paying more than market to retain their experienced salespersons because the competition is very high in the business and the success of company is fairly dependent on the skills and expertise of the salesperson. Factors that affect compensation packages:  Government has set a wage and pay rate for the labors and employees of any firm.  Competitors also affect compensation because if the firm would not offer competitive packages the employees would lose their interest  JOB description also contributes towards setting compensation package as it relate the package to the technicality of the task that is to be performed.  Rank of the employee is also a factor to design the compensation package. The above all points must be considered, otherwise the employee won’t be attracted towards your firm and his motivation level to perform work may also be decreased. Compensation Packages based on: In the firm we have selected following compensation packages are given on the basis of scales of the employees and these differ for the labor working in the factory:  Salary to the employees depending upon their rank/scale of Employees  Wages to the labor keeping in mind the minimum wage rate.  Commission is given to the sales team to full fill the target that has already been set.  Overtime pay to both employees and labor is also given to compensate their opportunity cost
  • 14. HRM Final Report  Bonuses are also given to the employees depending on their performance. Benefits at Stylo Other than salary and wage, following benefits are also provided depending on the rank of the employees.  Pick and drop facility is given to the labors of the firm.  Travel allowance is given to the employees.  Meal allowances are also given to both labor and the employees.  Accommodation is also provided for the male employees of the organization.  14 Annual leaves are allowed to the employees and labor and are compensated if the employee has a call for extra time. These leaves are not carried forward to the next year if not consumed. This year Leaves include Sick leaves and Maternity leaves  Insurance is provided to the employees which include Medical insurance  Free of cost trips are also arranged for the employees  Extracurricular activities are also encouraged at the organization. Like table tennis, carom board and other related games for the employee’s relaxation.  Provide daycare facility for the moms.  Give Provident Funds. Firing There is as such no firing. The owner of the Stylo group said that if you hire someone than give HR training or motivate him or her to not leave and give his 100%. Firing is not the solution. If the employer fire the employees because of their standard are not focused by them, then why you hire them only just for firing. Labor Union There is no labor union. Because Employee have given their rights what they deserve and they are satisfy with employer. Instead of labor union they use quality circle method. Quality circle: 5 people team. They choose their representative. There is one coordinator who is supervising them. They do meetings on weekly or monthly bases. In those meetings they discuss issues and there solutions. If they did not get any solution or the issue can’t be solved by them than they convey their message to HR executives and they try to resolve the issue or they will convey message to further seniors. This was 1st time practice by Local Pakistani Company.
  • 15. HRM Final Report Issues HR Department Is Facing When we asked the Stylo about the challenges or issues that there HR is facing they told us that the problems and issues are arise on the routine bases and necessary actions are being taken on continuously bases to resolve thousand issues. They were reluctant in revealing their problems at first but after few questions they started to open up what they faced. The case they discuss with was related to theft crime. The Stylo Group offers their employees a gift card. Basically the purpose of this card is to motivate employees and try to engage them so that they can purchase Stylo products. On each purchase they get points. And by collecting some fixed amount of points they can get special discount offers etc. The condition was if the employee purchase product for his or her personal use then the points will be awarded. The process of getting theses points was very simple. The employee has to show his or her card to the cashier and the cashier will scan the card. And the points will be awarded to him or her. One of the employee sales people tries to cheat the system. What he did was on every random customer purchase he scans his card and the system awarded him points. 2-3 times he tricked the system easily. When the internal audit was done the auditors give his details to the HR department. HR department didn’t take action at that time. But they observe him. Again he did the same trick and gets many points than HR department called him and ask him how he get such points with so much consistency. He explained that he has marriages and such stuff. They compare his salary and bonuses with the products he purchased as mentioned by him. Than they check the camera
  • 16. HRM Final Report footage. The salesperson was guilty. The decision of HR department was to fire that person so that other employees don’t try these types of tricks to cheat. Other issues and Solution: As such HR department of Stylo group is facing some issues which are time consuming. Firstly, the salaries they pay and the incentives are on job grades. They categorized jobs in ranks/Grading. For example L1 is for labor. L2 is for senior labor etc. So when they enter the new employee data in software they grade him or her with standardized grading. If the grades were entered incorrectly the employee will get different salary or incentives. And the procedure to solve this problem is more time consuming. Secondly the other major issue is labor workers left without giving notice. That can cause a huge lose. It slows down the production and again they have to look for the labor worker and train them. Lastly, the common issues they face is attendance issue. Attendance is biometric but still we face issues. So after having biometric they still take manual attendance of labors. Most of the labor workers work throughout the month but in the end they counted as short attendance labor worker. So solving this issue they have to take manual attendance. Employee Relationship In Stylo Employee’s relationship with other employees are good and their environment is friendly. They work with each other in a team. They have respect for each other. The Stylo is good for your initial stage in your career. You experienced a good work environment and it will be fun for you the management are supportive and culture is also good. The Enjoyable part is work pleasant of work place environment. 2 holidays in a week and except these, 2 more is allowed in a month, medical leave, urgent leave etc. Nice office environment with helping and young colleagues who are always ready to share experience and knowledge. The only hardest part is the salary/benefit system which causes to low the moral. Salary structure for the old employees are good but not for new enrolments. References  Mr. Ali Saqlain Designation: Executive (PMS)  Mr.Mian Rasikh Aziz Designation: HR Assistant Manager  Ma’am Zunaira Designation: HR Executive
  • 17. HRM Final Report A Group of UCP while Visiting Stylo Head Office.