46163187-hr-at-descon.doc

HUMAN RESOURCES MANAGEMENT PRACTICES

PREVAILING IN DESCON ENGINEERING COMPANY

Submitted To: Submitted By: PROF SAPNA SURI SUNITA MISHRA

ROLL NO-09024

MBA-HR

Padmashree Dr.D.Y.Patil University

HUMAN RESOURCE DEPARTMENT

TABLE OF CONTENTS

SERIAL NO CONTENTSPAGE

NUMBERS

1 EXCUTIVE SUMMARY 3

2 INTRODUCTION OF DESCON ENGINEERING LTD 4-10

3 HUMAN RESOURCE DEPARTMENT 11-14

4 MANPOWER PLANNING & JOB ANALYZING 15-17

5 RECRUITMENT & SELECTION 18-24

6 TRAINING & DEVELOPMENT 25-30

7 PERFORMANCE MANAGEMENT SYSTEM 31-34

8 REWARDS & REMUNERATION MANAGEMENT 35-36

9 INDUSTRY RELATIONS 37-38

10 BIBLIOGRAPHY 39

EXECUTIVE SUMMARY

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Descon is the one of the leading company in project based business to business

market in Pakistan. This summary is all about the Human Resource Department

of Descon Engineering Company. We will discuss about the introduction of

Descon in first chapter. The second chapter will tell us about the structure of HR

Department in Descon. The third chapter shows planning and job analyzing steps

in the department. The fourth chapter will help us to know about selection and

recruitment procedures. The fifth chapter is all about training and Development

through implementation and evaluation. Sixth chapter will give a knowledge how

Descon conduct its Performance Appraisal System. The seventh chapter defines

the compensation management. And the last chapter explains how this department

handles the disputes and procurement procedures.

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CHAPTER NO.1

INTRODUCTION

History

Over the last three decades Descon has evolved into a multi faceted Engineering

and Manufacturing concern and has further spawned a group of ventures with a

diverse activities portfolio: Project Management, EPC, Engineering,

Manufacturing, Construction, Maintenance, software development, Mining,

Chemicals and Trading, While the group companies operate independently under

a corporate structure, Descon Engineering remains the flagship company and

provides the associated identity to its affiliates.

The company is unique in its resources base with in house capabilities for Design

Engineering, Manufacturing, Construction and Maintenance Service. These are

applicable to a wide variety of projects related to Industrial plants, Energy and

Infrastructure development for which services are provided selectively or on

turnkey/ EPC basis.

Project management expertise vested through sophisticated IT based systems is

one of the key elements in achieving successful culmination of projects. The

company’s operations span Pakistan, UAE, Saudi Arabia, Qatar, Oman, Egypt

and Afghanistan. Joint venture partners and technology alliances include JGC

Corporation Japan, Enerflex Presson, Canada and Eckrohr Kessel, German. The

roster of clients and end users is replete with auspicious names such as Sabic,

Aramco, Adnoc, Borouge, Gasco, Qatar Petroleum and WAPDA, NHA, OGDCL

at home.

All establishments are system oriented with ISO and OHSAS certifications and

ASME stamps. HSE achievements are reflected in the statistics with over 350

million man hours of work executed. Considerable investment is made in human

recourses focusing on development.

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Descon is project oriented and client driven. Quality and HSE are taken as Value

adders and the company culture encourages teamwork and innovation. With all

these attributes and resources, the company is well placed to compete and succeed

in the local as well as international contracting arena while being recognized as a

quality service provider and manufacturer of capital equipment. The synergy

between various business areas fuels strategic growth by providing cost effective

solutions.

Vision

“To become a world class engineering, manufacturing and construction company

operating internationally”.1

Mission

"To provide the valued customers with cost effective and reliable solutions in project implementation and be recognized as the leading manufacturer of high quality equipment for plants." 2

Core Values

The purpose of Descon is to bring prosperity and well being to the stake holders

and society at large by adding value through engineering, technology and

management.3

Integrity

The integrity of Descon is realization of its corporate Social investment and

to play a leading role within spheres of influence. The aim of the company to

work for achieving world class standards of openness and transparency

towards all of their stockholders and serves the communities. They want to

become the knowledge-based corporation in the world, capable of sustainable

economic growth and greater social cohesion.

1 http://www.descon.com.pk/Company/visionAndMission.aspx2 http://www.descon.com.pk/Company/visionAndMission.aspx3 http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

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http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

http://www.descon.com.pk/Company/visionAndMission.aspx

http://www.descon.com.pk/Company/visionAndMission.aspx


Corporate Social Responsibility

Descon Group’s business activities are based on relationships with many

stakeholders, including customers, shareholders and other investors,

business partners and the community at large and employees. Descon

believes that earning the trust of these stakeholders through fulfillment of

its responsibilities as a good corporate citizen is a key element in enhancing

management quality and corporate value.

While operating globally, they touch upon many people. They would set

CSR Objectives in the annual plans to take a leadership position in this

regard. They believe in transparency and giving access to the information to

people about the life cycle of their products and services.

The core issues in their CSR strategy are given below,

Compliance to our core and operating value Sustainable Business Environment Corporate Governance Community philanthropy Contribution to educational programs Promoting multicultural workforce Gender Empowerment Protecting Human Rights Honesty and integrity in our policies.

These strategies require commitment from top to bottom level of their employee’s

relationships. Because they want to see a healthy and safe world and trying to

achieve their goal by using best practices at their premises. The annul objectives

for CSR focus on six areas; - Business Integrity, Environment, People,

Community, Human Rights and Suppliers. These all areas are integrated into

Descon’s core values.

Business Operations

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Descon’s engineering know-how is vested in various business areas across the

company. All engineering facilities are equipped with the current software

packages in IT-based environments and specialize in niches relevant to the core

activity of a Business Area. At the forefront is JGC Descon Limited (JDL), the

joint venture company which acts as engineering wing with capabilities in basic

and detailed engineering for plant design. For JGC Corporation, it is key offshore

Satellite Engineering Center for engineering of major hydrocarbon energy

projects in the region.

To enable value-addition in the field of equipment supply, the Manufacturing

Business Area in Pakistan has its own design group for engineering process plant

equipment and coded items mainly in accordance with ASME codes

Equipment-oriented engineering capability is also present at a greater scale in

Descon, the joint venture company in Saudi Arabia. This operation also has

extensive capabilities for electrical design to support its mechanical and electrical

shops.

The EPC Business Area is also evolving into an autonomous entity which has its

own engineering expertise for undertaking projects on a turnkey basis. These

range solution for existing plants to ‘Greenfield’ facilities pertaining to process,

utilities and offsite areas.

The infrastructure projects Business Area has developed its own in house design

group for projects related to water reservoirs and irrigation channels. Descon is

the only Pakistani company which has the complete ‘design and construction’

capability for large infrastructure projects.

Functional Areas at Descon

There are two Heads of departments in Descon.

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1. Business Support Departments2. Business Area

Business Support Departments

These areas are helping and supporting the Business areas and the Operation level

areas. The corporate level and administration of Descon are working in these

departments. In these departments, there are main heads of Descon,

Company Supervision Department (Admin)

This department consists on executives who supervise the rules and regulations.

Finance Department

This department supports all financial issues, information, trend analysis, and

make financial statements to for future decision making.

Project Management System (PMS)

This department provides all information and manages all projects in which

Descon’s employees are working through a scientific system. This system tells

what time they should complete the project, how to complete the project and all

plans which can be useful to generate efficiency level at maximize position.

Human Resource Department (HRD)

This department handles the human power of the Company. Make policies and

procedures and helps to achieve organization’s goals by hiring competent

workforce and retain through training and motivating.

Proposals Department (Bid Creators)

This department creates bids for making projects, plan how to start project, this

department also conducting research and development and making strategies to

maximize those areas of Pakistan in which they work.

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Marketing (B.D)

This department shows off all competencies and strength through Integrated

communication technology (ICT) and advertising in their websites, Expo Center,

and Push strategies for Stake holders.

Strategic Planning

This department checks overall market structure and find out all those

opportunities which can help out in order to survive in the market.

Construction Management

This department manages the project handling issues and areas in which they are

constructing continuously and new as well.

HSE (Health Safety and Environment)

This department plays an important role for CSR and social marketing as well by

strict policies to make the environment of Descon clean, safe and environment

friendly.

Business Areas

These areas are working under Business Support Department.

These areas are further divide in National areas (Pakistan) and International

Business areas.

National Areas

There are regional and site branches in Pakistan.

Karachi Lahore Islamabad

International Areas

These areas are representing Descon as Pakistan’s Dynamic Engineering

Company in different countries of the world. These countries are;

Qatar

Kuwait

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United Arab Emirates (Humria)

Saudi Arabia

Oman

Areas of Specialization

There are different areas of specialization which are following;

Manufacturing

Engineering Procurement and Construction (EPC)

Plant Construction and Services

Infrastructure Project

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CHAPTER NO.2


Human Resource Management

The ultimate success of any organization depends on its Human Resource. This

makes Human resource a challenging and critical element for managers to control.

Thus Human resource of Descon is not only a critical asset today but has become

an important source of competitive advantage in dynamic industry of engineering

and construction. With the help of HRD, Descon’s rating in Pakistan is No.1 in

Engineering and Construction based industry. They are standing for many years

and no one even touch to their rank because of competent and willing work force.

Organogram of HRD

Units in HRD

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Human Resources Planning

It is a starting point of human resource management. If an employee leaves the

firm due to any reason, which may be deliberate resignation to move to another

firm, or any other reason such as, retirement, termination or death, a vacancy is

formed at the respective department of the Descon. The department, carefully

analyzed in all its respects identifies this vacancy and the job description is

forwarded to the Human Resource department.

Job analysis

It is the procedure for determining the duties and skill requirements of a job and

the kind of person who should be hired for it.

a) Job Description

It is a list of job’s duties, responsibilities, reporting relationships, working

conditions and supervisory responsibilities. Descon Engineering Company makes

a job description before recruiting people.

b) Job Specification

A list of job’s “human requirements” that is, the requisite education, skills,

personality, and so on. They also make job specification hire the right people at

the right place.

Recruitment and Selection

Descon Engineering Co. Maintains a strict difference between external

recruitment and internal recruitment. It has given different names to both these

functions that are

• Resourcing refers to internal recruitment the Descon Engineering Co.i.e. they

try to attract candidates for vacant jobs from within the organization, and

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• Recruitment only refers to external recruitment that is locating candidates

from outside the firm, which may include fresh graduates or people working in

other firms.

Training and Development

The Company holds that orientation program is very necessary for the Company

as well as for the new employee. The unit of Training and Development performs

several important functions for the Company, like orientation training,

performance appraisal and the general Training and Development. Broadly

speaking, Descon Engineering Co. holds a strict distinction between training and

development.

Performance Management System

Descon Engineering Co. gives the importance to their employees as well as their

performance. There are certain standards that are set by the Company to check the

performance of staff. They give the incentives and bounces on the base of check

performance. Descon Engineering Co. follows all the international rules when

done performance management.

Rewards and Remuneration Management

Descon Engineering Co. gives utmost importance to rewards and compensation

packages because this is the most crucial factor for retaining key employees. ...

The amount of bonus depends on the amount of profit Descon Engineering Co.

World makes.

The amount of bonus and increments depend on the profit of Descon Engineering

Co. world, then Descon Engineering Co. Pakistan, then for each department and

finally for each employee. The Gross salary includes a number of allowances.

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Industry Relation

As one of the international Companies, Descon employees almost 35000 people,

representing more than 5 nationalities. This diversity lies at the heart of their

values and supports their growth because they are a Pakistani company and now

spread in the Asian Market. There is cooperative environment and relation

between lower and upper staff is good. Expenses incurred on professional medical

consultation including periodic health check- ups and costs of any diagnostic

tests.

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CHAPTER NO.3

MAN POWER PLANNING AND JOB ANALYZING

This chapter tells us how Man Power Planning and Job Analysis are important to

select a job and the need for hiring or training the employees in Descon

Engineering Company. The Company allocates the budget through they are

receiving from profit margin. The opportunities find out when they work on

project, and if something is missing in their specialized field. The budget for new

employees and training the employees should be allocated. Then, the jobs and

work is defined and analysis the job and person who can be do that type of job

excellently.

Criteria for Human Resource Planning

HRM Audit

The HRM (Human Resource Management Audit) of Descon uses this framework

to try to answer such questions as: Are the mission and strategy of the human

resource organization designed to match the business strategy of the Descon

Engineering Co.? Does the design of the human resource organization enhance its

ability to accomplish its strategy? Are the kinds of people who run the human

resource function good choices for the ongoing task?

HR Policy and Manual

HR policies vary considerably from one organization to another, depending on its

size, the nature of the workforce and the position regarding union recognition, but

here are the main policy areas of Descon’s which are recognize as HRD

executives in the Business Support Areas.

Criteria for Job Analyzing

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Job analysis is the process of determining the nature or content of a job by

collecting and organizing information relevant to the job. A complete job analysis

contains information relating to the following factors which deemed appropriate

to fully describe the nature of the job. These factor are considering while the job

is analyze for new and old employees as well in Descon Engineering Company.

Key Components of Human Resource Development

There are three fundamental component areas of human resource development

(HRD):

1) Individual Development (Personal)

2) Career Development (Professional)

3) Organizational Development

The importance of each component will vary from organization to organization

according to the complexity of the operation, the critically of human resources to

organizational efficiency, and the organization’s commitment to improved human

resources.

Job Analysis Interview Guide

Job analysis interview guide is a tool that can be used in conducting job analysis

process. It describes list of questions that should be asked to explore the content

of a particular job. What is the job overall purpose? What the inducement does

and, if possible, how he/she does it?

Writing Job Description

Most widely used job description format contain the following five sections”

(1) job identification

(2) job summary or purpose

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(3) job duties and responsibilities

(4) accountabilities

(5) job specifications

The most important thing to remember is that all job descriptions within Descon

Engineering should follow the same format.

Strategies for Designing and HRD Program

HRD philosophy that states unequivocally that effective human resource

development can improve performance (i.e. change behavior, produce results,

increase productivity). This provides a framework for the HRD program. It also

provides a common objective for each of the members of the HRD staff of

Descon Co. on which to focus their efforts.

Job Time Study

Time study is a work measurement technique for recording the times of

performing a certain specific job or its elements carried out under specified

conditions, and for analyzing the data so as to obtain the time necessary for an

operator to carry it out at a defined rate of performance

CHAPTER NO.4

17


RECRUITMENT AND SELECTION

Descon maintains a strict difference between external recruitment and internal

recruitment. It has given different names to both these functions that is: Descon

Engineering is a multi dimensional engineering, construction and manufacturing

company operating in Pakistan and the Middle East. With over million man hours

of construction work executed in industrial and infrastructure projects, Descon

employs over 34000 professionals and other personnel.

Resourcing refers to internal recruitment the Descon that is; they try to attract

candidates for vacant jobs from within the organization. Recruitment only refers

to external recruitment that is locating candidates from outside the firm, which

may include fresh graduates of people working in other firms. However, it must

be noted that Descon prefers resourcing to recruitment.

The Resourcing Process

The resourcing process at Descon is conducted in a well planned in an efficient

manner. Resourcing process can be summarized as:

Identification of Job Vacancy

Job Description forwarded by respective departments

Determination of Grade and Designation

Job Posting

Candidates contact HR Department

Steps in the Resourcing Process

Now we will discuss all the steps involved in the resourcing process in turn.

1) Identification of Job Vacancy

If an employee of the company leaves the firm due to any reason. This may be

deliberate resignation to move to another firm. This may also any other reasons

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such as, retirement, termination or death, a vacancy is formed at the respective

department of the company. The department, carefully analyzed in all its respects

identifies this vacancy and the job description is forwarded to the workers of the

human resource department.

2) Job Description Forwarded By Respective Department

Then the department, in which the vacancy is created, sends a complete Job

Analysis Information to the HR Department. Thus, the Department forwards a

complete document to HR specialists so that they can analyze the job correctly

and efficiently.

3) Determination of Grade and Designation

When respective departments have identified the vacancy and the job description

has been sent to HR Department, the HR Department decides on the grade and

designation of the vacancy.

4) Job Posting

This is the most common practice at Descon. Moreover; the reporting time is also

specified within which the candidate should contact the HR Department.

5) Candidates contact HR Department

After job has been posted, the candidates who are interested contact the HR

Department via mail, telephone or face to face. The candidates will include

People working within the same branch of Descon.

People working in some other branch of Descon.

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Management’s View on the Resourcing Process

The management of Descon holds that resourcing or internal recruitment is better:

Because people not only seek a job at Descon but also find a prolonged career in

the company, basically it is Project Company.

The Recruitment Process

In Descon recruitment refers to external recruitment only that is people are hired

from outside the firm. The recruitment process involves the following steps:

Internal unavailability of appropriate personal

Screening of Available Resumes

Sop for Clerical/ Labor Job

Descon engineering is undertaking a major expansion in its capacity to provide

comprehensive, multi discipline engineering services in petroleum oil and gas,

power generation petrochemical and chemical industry sector for EPPC projects.

It is project based organization. Descon is renowned of diverse offer of training

and development measures. They provide state of art facilities to conduct internal

or external training.

These trainings covers development of fresh gradates, project managers,

department heads, technical staff and potential leader.

Criteria for Officers Job

1) In charge Quality Assurance & Quality Control

B.E (Mechanical / Metallurgy) with minimum 08 years of experience in the field

of QA/QC, with at least 03 years as Head of a QA/QC team. The candidate should

ideally have experience related to plant construction & Maintenance in Oil & Gas,

Fertilizers, Power Plants and Petrochemicals Sector.

2) Incharge Production

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B.E Mechanical/Metallurgy with 10 years of experience in fabrication of Steel

Structure, Boilers, Heat Exchangers and process equipment etc.

3) Site Managers (Mechanical, E & I)

B.E/ M.E (Mechanical, Electrical) with 15-20 years of relevant experience. Able

to lead the multi-discipline project team and responsible for the overall

management of the project site to which assigned such that the contractual

requirements and obligations are fulfilled, in accordance with drawings and

specifications and all is completed within in safety goals set for construction,

within budget, and within schedule.

4) Construction Managers (Mechanical, E&I)

B.E Mechanical/Electrical having more then 10-15 years of experience of filed

construction in mechanical works with proven leadership & entrepreneurial skills.

Motivate construction team, Ensuring cost effectiveness and work progress to

deliver the output as per schedule, Ensure implementation of Descon’s integrated

project management systems and related procedures at the site.

5) Incharge Planning and FEDC (Civil, Mechanical, E&I)

B.E Civil/Mechanical/Electrical with 10-15 years working experience on large

mechanical construction projects (Oil& Gas, Petrochemicals etc).

6) Incharge Fabrication

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B.E. Mechanical with more than 10-15 Years Experience in Site Engineering Oil

& gas field construction, refineries, and Storage terminals. Must have sound

Knowledge in plant Storage Tank Fabrication and erection and piping works.

7) Incharge Stores

MBA/ M.COM, or equivalent with 8 years experience. They have Knowledge on

Tool, Plant, Consumables, material identification and handling. Familiar with

ACCPAC / any computerized Inventory Control Software.

8) Incharge (E&P)

B.E Mechanical having 5-7 years experience or DAE with 10-15 years experience

in maintenance of hydraulic and pneumatic systems of heavy equipments. They

should be able to lead a team of technical persons and having strong

communication skills. Computer knowledge shall be preferred.

9) Incharge Commercial / Sub-Contracts

B.E (Civil/Mechanical) 10 – 15 years of experience. They have experience in

knowledge of FIDIC and other international forms of contracts.

10) Mechanical Engineer (Piping, Equipment, Structure)

B.E Mechanical with more than 5 - 8 Years experience in Erection of piping,

Hydro testing and commissioning in mechanical construction of plants.

11) Engineer FEDC (Civil, Mechanical, Electrical)

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B.E Mechanical having 5-8 years of experience in field related engineering

information (drawings, project documents) in oil and gas. Candidate should be

able to ensure the correct estimation of BOQ and BOM from drawings and

breakdown in to workable package as per WBS and OBS. Sound knowledge on

P3, or equivalent.

12) Planning Engineer/Area Planner (Mechanical/Civil/E&I)

B.E Mechanical/Civil/Electrical with 3-5 years working experience on large scale

construction projects. Must be well versed with Primavera Project Planner, MS

Office. Incumbent will be responsible for project process monitoring,

implementing of planning & monitoring systems, analysis of weekly project

performance report, assistance during project launching, resource estimation,

budgeting and cost analysis of project activities.

13) Engineer Cost Control

B.E Mechanical / Civil having 3-5 years of experience. Having Knowledge for

monitoring financial health of the project as compared to approved budget.

Prepares Quarterly Cost/Revenue forecasts.

14) Rigging Engineer

B.E Mechanical/DAE Mechanical having 5-7 years experience. Must have

knowledge of all crane operation related to rigging, heavy lifts.

15) QA/QC Engineer / Inspector

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B.E / DAE Civil, having sound knowledge of related materials, specification and

testing.

16) Material Engineer

B.E / B.Sc Mechanical / Civil / Electrical with 10 years experience. They must

have worked in same capacity in Mechanical construction Projects, Knowledge

on materials identification and handling.

Criteria for Executive Level Job

The criteria for executive level job are usually done for company’s most

experience employees who are very competent and knowledge of company’s

departments and they have the ability to perform their job as executive. Descon

Company prefers those employees who have ability to do that job.

The employee’s knowledge status and experience is based to do that job. The

Board of Directors selects the vertical promotion of employees who are eligible

for that. If the votes are more than opposition, they select for those employees as

executive level job for new or existing jobs. They give a chance of shareholders

also who are capable to do that job.

CHAPTER NO.5

TRAINING AND DEVELOPMENT

The unit of Training and Development performs several important functions for

the company, like orientation training, and the general Training and Development.

Orientation Process and Induction of New Employees

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The Descon holds that orientation Program is very necessary for the old as

well as for the new employee. The entire process of orientation is conducted

at Descon as follows:

1) Need determination for orientation program

2) Designing of orientation program

3) Implementation of orientation program

4) Analysis of orientation programming And Development

Steps of Orientation Program

Need determination for orientation program. When an employee joins Descon, the

HR Department, the department in which the employee has been selected and the

top management determines the need for the orientation program. If the candidate

has been transferred from some other country to Descon Pakistan, it is very

necessary to acquaint him to the culture of the country and the general business

practices. He is of course, aware of the Descon engineering culture but he may be

informed about the new department he has joined and about his new duties and

authority.

Designing of orientation program At Descon the orientation program is designed

by

• Head of HR Department

• Training Specialists

• Immediate Supervisor

• Head of the Department in which the employee is selected

In designing the orientation program, the length of the program depends on the

employee for whom the program is conducted. If the employee has joined Descon

from some other country the program is very lengthy as he is not only to learn the

culture of the organization but also the culture of the country as a whole. The

program usually includes

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History, policies, practices, rules and regulations of the organization An overview of the department, the employee joints An introduction to the work environment, co-workers, superiors, and sub-

ordinates.

Hence, in this way the new employee is thoroughly acquainted with the Descon

culture and thus can perform his job effectively. Implementation of orientation

program at this step management simply implement the already design orientation

program effectiveness.

Analysis of Orientation Program

The HR Department of Descon holds that the feedback on the success of

orientation program is very necessary. The follow-up is conducted in the

following manner:

Discussion amongst Key Personnel

A comprehensive discussion is conducted by the HR Department with the

immediate supervisor and the Head of the Department of the employee to evaluate

the prose and corns of the orientation Program. If he is comfortable with the

Descon environment, the Program is a success or vice versa.

Management’s View on Orientation Process

The management of Descon believes that orientation Program necessary because

of socialization and knows how about company’s policies and procedures. The

purpose of this step is to introduce the new employee with the work unit,

organization, peers. Tell them the rule and regulations of the company. In

different companies different persons are responsible for this but when we talk

about Descon manager gives orientation.

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Training Policy

Basic purpose of training is to update the knowledge of employees and enhancing

their skills. Today organizations want professional employees because they have

come know the importance of employee that’s reason organization call employees

“their most important assets”. Due to which companies send their employees on

different types of workshop, seminars and other educational programs. Even some

companies provide opportunity of getting knowledge on the cost of company.

Training Need Assessment

The training program of Descon normally for the period of lesser then six months

and its purpose is to investigate strength and weakness after that making effort to

remove these weaknesses. They analyze that employee need training by self

assessment, performance record, and questionnaire. The handouts which they

provide to trainee develop by themselves not net based. All the cost incurred by

the company let it be in-house training or training organized by the Descon

Engineering Co. The employee normally needs training about his skill, knowledge

and career development.

Training design

After the need assessment process is complete, the designing process starts to

train employees in systematic way.

Setting objectives

The objective of the program is described in which a statement is passed. In this

statement, the goal of the training program is written that what thing they should

achieve by conducting this program. So the statement should be specific.

Developing lesson plan

The statement is not enough, so the whole lesson plan is prepared in which each

and every activity is written in this portion.

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Selecting trainer/leader

The company select the trainer based on the training criteria, No. of employees

and their skill enhancement. If the No. of employees are less or any specific

criteria demands to train through the outside trainer, they outsource the training

program.

Preparing material

The material is prepared by Trainer if the trainer is of the organization.

Selecting program methods and techniques

Descon mainly uses the following training and development methods are:

• In-Housetraining On-the-Job Training• Program Conducted Abroad

In-House Training is the most common method used at Descon. Under this bank

have two options;

On-the-Job Training:

Descon give the training to their employees on the job by hiring a trainer from

outside or from within the organization. But company selects the trainer very

carefully and only professionals individuals in field. Training In Institutes Within

The Country: If the trainees need training in a specific technical skill, which the

company cannot provide economically, it sends the employee to institutes where

they get the requited training. The trainee interacts with new people and can make

contacts for the organization.

Training Program Conducted Abroad

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Employees are sending abroad for special training and development Program

conducted by the Descon Group. This training Program may be conducted in

other countries Dubai or anywhere else where the Descon exists.

Scheduling the program

The scheduling of the program is helping to conduct the program in right

direction and the employees learn in training.

Implementing the Program

After designing the program, the implementation process is playing Back Bone. If

all the process of designing is complete but the program doesn’t held due to

certain reasons, their will be loss of money, time and efficiency. So Descon’s

HRD convincing their executives to implement the program according to training

design will be benefit to the organization.

Criteria for training and Evaluation

The criteria for training and evaluation is to help that how well the program will

benefit to the organization in a whole. Descon’s criteria contain four parts;

Select the Evaluation Criteria

In this segment, the base for evaluation the training program set. If the base is

accurate, so the true results will be found.

Determine Evaluation Design

The evaluation design helps employees to set accurate base in which the criteria is

set.

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Conduct Evaluation of Program

The program is conducting on the basis of setting evaluation criteria. These

criteria may be through questionnaires, Examination Papers, presentations or

observation.

Interpreting Results

The results of evaluation criteria helps the Descon’s Engineering Company that

how well their training staff learn and enhance their abilities for future role. If one

person get full fledge train in this specific area of training, it is possible that he

may receive rewards like, increase in salary or Promotion. Because he is now the

precious asset of the organization and everyone wants to retain his precious asset.

Descon Training Institute (D.T.I)

Descon Has Specific institute (D.T.I) in the employees and especially technical

workers are trained and become company’s dynamic asset. These institutes have

capacity to train all types of technical works done in Pakistan and other places.

CHAPTER NO.6

PERFORMANCE MANAGEMENT

SYSTEM

A performance management system is very

important in order to check efficiencyand

effectiveness of work. Actually it is the

process of creating the work environment in

which people are enabled to perform their best

abilities. It starts from the necessity of the job

30


and ends with the employee leave from the

organization.

This picture indicates that How Performance

management system works to evaluate the job

and after evaluation, the management decides

what strategies in which they can grow by

considering the approach of their work force

and set standards on the basis of evaluation.

These standards are in shape of rewards and

sanctions. The rewards are in the shape of

promotion; increase their pay or some non-

monitory reward.

Performance Appraisal System

Performance Appraisal Process

Descon Engineering Company uses HAY

Methodology as a Performance Management

4

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System to check the performance of employees

of the company. This method is used by most

of the world’s largest companies. This method

helps to evaluate the right people, right job and

execution of company’s strategies.

A thorough Hay method is followed by

Descon Engineering Company, which

determines the performance appraisal for each

employee. At the end of the year, the manager

and the HR Department at Descon evaluate the

performance of each employee formally. At

some branches of the Company in Pakistan,

management checks the performance on

monthly bases.

Goal Setting

The strategic planning of Descon is to match

the employee’s goals with organization goals.

Performance Evaluation Method

Descon set the appraisal criteria according to

the national and international laws because it is

a Multinational organization. The evaluation

process consists of various techniques which

are adopted according to the Hay Methods of

evaluation.

The main Hay Group methodology, Hay Group Guide Chart-Profile Method of Job

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EvaluationSM provides with a consistent and objective framework to:5

Analyze Organizational Structure

The first step of performance appraisal method

is to analyze the structure of the organization

and then identify those ways which help to

make it more effective.

Descon Company is Project Base Company in

which the structure of the company’s work

force is usually contract base. But the company

is focusing their employees to train them and

motivate them. This thing starts from assessing

needs to the completion of those needs. The

performance management system is one of the

ending processes of the whole retention

program.

Evaluation of the Jobs

When the structure of the company is analyze

by the HR Managers. They start to evaluate the

people and jobs to match the right individuals

to the right roles.

5

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Define Career Progressions

The company defines career progression both from individual roles and across related job groups and interlinking organizational goals with personal goals.

Reward Program

After the Performance Appraisal Process, the company develops targeted pay and reward programs, using Hay Group’s global compensation database, optimize the return on investment in people by paying in proportion to contribution. All of this ultimately leads to an increased ability to manage human resources more effectively.

The reward program is held and employees take reward according to these levels:

Level I.D. Form

L1 High Potential / High Performance

L2 High Potential / Medium Performance

L3 Medium Potential / Medium Performance

L4 Medium Potential / Low Performance

L5 Low Potential / Low Performance

L6 Cruse Performance Feed Back

The person who is conducting Hay method of

performance appraisal is sharing information

and getting feedback from employees who are

checking their abilities of their work and

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http://www.haygroup.com/ww/services/index.aspx?ID=112

http://www.haygroup.com/ww/services/index.aspx?ID=112


experience and their feedback helps both

parties to create good results. The discussion

have three parts in which first prepare

feedback discussion, second part conduct feed

back from employee and last one conclude the

discussion through analyzing the behavior of

employees

CHAPTER NO.7

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REWARDS AND REMUNERATION

MANAGEMENT

Rewards and Remuneration Management plays

very important role in the motivation of

employees. Every organization gives the

importance to these activities.

Monitory Rewards

Salaries

Descon pay the salaries to their employees

according to their ability, skills and their

experience. Company also considered the

national laws of every country in which it

operates regarding to salaries such as minimum

salary act.

Designations

Like all other organizations Descon also have

specific grades and designations for their

employees that show the status, power and

responsibilities of job at work place. These

grades start from G-1 to G-9.

G-9 is a executive level grade that shows the

high level power and responsibilities in

organization and G-8 show less than as

compare with G-9 and so on.

The monitory rewards include so many things

in which an employee can be motivated

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through different packages. These rewards are

following;

Salaries Gratuity Funds Profit Sharing Provident Funds Annuities Bonus

Non-Monitory Rewards

Descon gives utmost importance to

compensation packages because this is the

most crucial factor for retaining key

employees. The amount of bonus and

increments depend on the profit so they gives

gratuity for those projects in which the workers

perform well and effects company’s extra

profit, then for each department.

Stock Ownerships are given, as Performance

Bonuses to employees giving high

performance and whom the Company wants to

retain.

Allowances

Descon Engineering Co. gives different

allowances to their employees in order to

increase their performance and loyalty. There

is different allowance that included in basic

salary of employees. These are:

House Rent Allowance at sites Medical Allowance

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Conveyance Allowance Insurance Facility Food allowance Annual Leaves Hardship Allowances Health and Safety Environment

CHAPTER

NO.8

INDUSTRY RELATION

The field of industrial relations (also called

labor relations) looks at the relationship

between management and workers, particularly

groups of workers represented by a union.

Descon treats their employees as partner in

delivering superior customer value.The

Company’s operations are project based and

they work in different types of construction,

maintenance and development businesses.

Procurement for election of labor union

The company has very good system of

procurement of labor union. There are several

types of Technical, Engineering, and

Managerial employees working in Descon.

When any project is start, the Human Resource

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http://en.wikipedia.org/wiki/Trade_union

http://en.wikipedia.org/wiki/Management


Department check all those workers who can

work on that specific project. If the members

are not available, so they are checking those

projects which are at completing stage. If any

one is at competing stage, the HRD pull some

work force from these areas and start new

project. If the demand does not fill right now,

they hire new workforce for starting the

project.

Dispute Settlements

We now that in any organization, there are

different dilemmas’ between employees. If

there is any dispute regarding any issue, the

HRD plays an important roll and settling

disputes which are not settling by supervisor.

The climate survey is held to check both

parties and some times punish both parties for

their bad work. Some time handling

miscommunication through interfere all those

parties which are involve.

Health and Safety Measures

As we know, Descon is a Multinational

organization so it follows all laws regarding to

Health and Safety at work place. The Head

Office of Company at Lahore is very clean,

well arranged and cool in summer. Descon

provides the following health and safety

equipment at all their branches:

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First aid at work

In case of any sudden accident Company has

First aid at work place

Emergency doors and Direction

In case of any emergency Company has doors

and clear direction toward these doors through

arrow signs.

Fire extinguishers

In case of fire there is fire save equipment at

Company.

BIBLIOGRAPY

BOOKS:

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http://www.hse.gov.uk/firstaid/index.htm


Human Resource and Personnel Management(3rd edition) by K Aswathappa

A text book of Human Resource Management by C.B.Mamoria, S.V.Gankar

Personnel Management(6th edition) by Edwin B.Flippo

WEBLIOGRAPHY:

www.google.com

www.citehr.com

www.descon.com

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http://www.citehr.com/

http://www.google.com/

46163187-hr-at-descon.doc

Documents

decades descon

design engineering

project management expertise

compensation management

training development

human resource department11

human recourses

multi faceted engineering