pel

Table of Content: - Brief history of PELDivision of PELCompany Information

HUMAN RESOURCE OF PEL

RECRUITMENT AND SELECTION TRAINING AND DEVELOPMENTEMPLOYEES’ SERVICES SAFETY, HEALTH & WELFAR MANPOWER PLANNING SALARY ADMINISTRATIONINDUSTRIAL RELATIONSYSTEMS OF COMMUNICATIONNEGOTIATING WITH UNIONTERMS & CONDITIONS OF EMPLOYMENT

SWOT ANALYSIS OF APPLIANCES DIVISION

Question To PEL Officials Relating Human Resource Management.

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Brief History Pak Elektron Limited (PEL) started working in 1956, with the technical

collaboration of AEG, it was primarily engaged in the production of

DISTRIBUTION TRANSFORMERS. PEL has come a long way since its

establishment and is now engaged in the production of transformers 33

KV-5Mva capacity, Switchgears upto 33KV, Squirrel Cage Induction Motors

upto 40 H.P, Single Phase Energy Meters, Small Generators, Shunt Capacitor

Banks and Reclosers etc. In 1980 the company expanded into consumer

durables with the introduction of window type Air conditioners and today also

manufacturers Refrigerators, Deep-freezes and Compressors etc. The

manufacturing of Television is facilitated by its joint-venture with DAEWOO.

In 1997 the Company collaborated with Carrier of America to produce splits

and Airconditioners in Pakistan.

PEL equipment has been used in numerous projects of national

importance. Over the years PEL has its equipment approved and certified from

some well reputed organizations such as:

1. Preece, Cardew and Rider, England

2. Harza Engineering Company, U.S.A.

3. SANAM Progetti, Italy

4. Societe Dumez, France

5. Ensa, France

6. Miner & Miner International Inc. U.S.A.

It was in early 70's that PEL became known in overseas markets due to

its quality and the company started exporting to countries like Saudi Arabia,

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Dubai, Qatar etc. Later on the exports extended to countries of Middle East,

Far East and Africa with great success.

Later on PEL started manufacturing goods for Army. These include

Generating sets and specialized D.C. Motors of various capacities.

In October 1978, PEL was taken over by Saigol Group of Companies,

which is one of the largest industries and commercial groups. The Saigol

Group belongs to the Saigol Family, which is one of the oldest industrialist

families in Pakistan and has contributed alot in the industrial development of

Pakistan. Since it's take-over by Saigols PEL is a "company on the go".

Presently the company is engaged in the manufacturing the following

products:

TRANSFORMERS

DISTRIBUTION TRANSFORMER is the first power product of PEL, up

to 33 KV and 5000 KVA capacity. The major buyer of Transformers is

WAPDA.

ENERGY METERS

The production of Single Phase Energy Meter was stared in June 1994

in the range 10-40 Amps and rated 240-volts. The major buyers of Energy

Meters are WAPDA and Government of Azad Jammu and Kashmir.

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SWITCHGEARS

SWITCHGEARS are produced under the specification of IEC, BSSOR

VDE. Switchgear manufacturing line consist of High Tension Indoor or

Outdoor type. The major buyers are WAPDA and KESC.

MOTORS

PEL manufacture MOTORS in 35 models upto 40 horse-power range.

PEL's totally enclosed fan-cooled motors are suitable operation under extreme

climatic conditions.

AIRCONDITIONERS

In 1980-81 window type air conditioners of 19000 BTU called

"PEL-air" was manufactured as a first consumer product in the technical

collaboration with General of Japan. During 1987-88 Split Type Air

conditioners were also introduced in market.

REFRIGERATORS

In 1986-87 PEL introduced refrigerators in technical collaboration with

M/s. SILTAL SPA (ITALY). PEL refrigerators are called "PEL COOL".

Refrigerators are produced in three different colours i.e. Green, Beige DEEP

FREEZERS

During 1986-87 PEL introduced the deep freezers by the name of "PEL

Freeze". Deep freezers are produced in six different models i.e, from 175 litres

to 410 litres in single and double door designs.

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COMPRESSORS

In May 1993 PEL set up a high-tech compressor manufacturing facility

at PEL in collaboration with NECCHI of Italy, the first such plant in Pakistan

to produce compressors for refrigerators and deep freezers.

TELEVISION

In June 1995 PEL started manufacturing television in collaboration with

DAEWOO. However the product is not as famous as other PEL products.

DIVISIONS OF PAK ELEKTRON LIMITED

PEL is mainly divided into two divisions

a) Power Division

b) Appliance Division

a) Power Division

Power Division is engaged in the production of transformers,

switchgears and energy meters. The main buyer of these products is

government. The PEL power equipment was chosen for such vital projects as

Mangla Power Station, Terbela Power Station and Combined Cycle Kot Addu

Power Station.

b) Appliance Division

The products manufactured in Appliance Division are Airconditioners,

Deep freezers, Television, Refrigerators.

Air conditioners and deep freezers are made in Gadoon Amazai while

refrigerators are assembled in Lahore. Television is manufactured at Hattar.

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COMPANY INFORMATION

BOARD OF DIRECTORS

Mr. M. Naseem Saigol

Chairman

Mr. M. Azam Saigol

Mr. M. Iqbal Khan

Chief Executive

Mrs. Sehyr Saigol

Mrs. Amber Saigol

Mr. Khalid A. Malik

REGISTERED OFFICE

6-Egerton Road, Lahore.

WORKS

14 k.m. Ferozepur Road, Lahore.

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HUMAN RESOURCE OF PEL

We have acknowledged the importance of human resource development.

In PEL, Merit selection, Improved compensation, training and

accountability at each level are being introduced to increase motivation

and productivity, which in turn leads to development of the quality

personnel with leadership, attributes to face the challenges ahead. The

management of the organization has been further strengthened through

recruitment of managers with proven professional records and market

credibility. They will not only provide the required leadership but also act

as ‘Agents of Change’ to improve the organizational structure.” I have

studied the Human resource department of Pak Elektron Limited(PEL)

thoroughly. PEL considers its human resource as an asset of the

organization and manages it according to the needs of the modern era.

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RECRUITMENT AND SELECTION

Recruitment is the process of searching for prospective employees

and stimulating them to apply for jobs in the organization.

ROLE OF HRD IN RECRUITMENT PROCESS

HRD of PEL is responsible for designing the selection system and

managing its everyday operation. Human resource mangers in cooperation with

other managers largely set the overall strategy; they are likely to be influential

in deciding, e.g., whether the department should focus on choosing people who

are best qualified for current vacancies of for those who have the greatest long

term potential. The personnel managers also decide how the guidelines for

equal employment opportunities met and whether the company needs outside

legal assistance in formulating its affirmative action plan.

Requirements

Following requirements are to be fulfilled on joining the company and

forwarded immediately to Human Resource Division for completion of

their record..

i) Photocopy of National Identity Card.

ii) Photocopies of all academic certificate especially metric certificate.

III) Photocopies of testimonials from previous employers

iv) Duplicate copy of appointment letter duly signed by the employee in

acceptance of the terms and conditions embodied therein.

v) Four copies of recent passport size photograph. .

vi) Fitness certificate as per Clause (4) of the letter of appointment..

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RECRUITMENT PROCESS

Recruitment of employees, in general the sources of recruitment can be

classified into two types.

i) Internal Job Posting:

Filling a job opening from within the firm has the advantages of

stimulating preparation for possible transfer, or promotion and increasing the

general level of morale.

Self Nomination:

Human Resource office publishes a monthly newsletter that list the

PEL's job posting program to different routes to nomination for a job, self

nomination and nomination by an employee supervisor..

Nomination by Employees Supervisor:.

In 4 years of its merger 3000 opening were advertised posted of which

approximately 68% were filled. 32% of the opening were cancelled.

supervisions with vacancies often post jobs and interviews can ideates, and

then when they are not satisfied with the qualify of the candidates, they

disquality all nominees and ask management for permission to recruit from

outside..

ii) External Job Posting:

PEL also go to external sources for positions whose specification can

not beam by present personnel. PEL uses following outside sources.

1) Advertising:

Advertisement is carried out in various newspapers. More information

about the company and job specification is included in the ads.

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2) Employment Agencies:

PEL also utilizes private employment agencies which have qualified

employees and also they have specialized in various types of workers and job

e.g. sales office, execution or engineer.

3) Casual Applications

Unsolicited applications both at the gate and through the mail constitute

a much used source of personnel recruitment. It has been developed through

provisions of attractive employment office facilities and prompt and

continuous replies to unsatisfied letters.

SELECTION PROCEDURE

In the hiring procedure, PEL are following steps to discover significant

information about an applicant.

1. Call for application

2. Preliminary interview

3. Applications blank

4. Check of References

5. Psychological lest

6. Employment interview

7. Approval by the supervisor

8. Physical examinations

9. Induction or orientation

1) Call For Application

First of all, an ad is given in the newspaper for the vacancy.

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2) Preliminary Interview:

In this step, .an idea of education and experience is obtained by asking

for the last grade finished in school and the names of jobs previously

Done. The more obvious facts and impressions are of the type generally

obtained in an initial interview. Applicants are often asked why they are

applying for a job in PEL

3) Application Form:

In PEL factual information are to be obtained by means of an

application blank.

Weighted application form is established and used with caution. It is

used for two prime objectives.

PEL has established the selection of more stable employees to decrease

labor turnover. They have discovered and utilized the particular data that

devote stability facts relating to home ownership, marital status, age and sex.

4) Check of References:

The purposes of the reference check are to obtain information about past

behavior of applicants and to verify the accuracy of information given. PEL

uses combination of letters and telephone calls, as a method of checking.

Reference includes only

1) Dates of employment

2) Job title

3) Absentee record

4) Promotions and demotions

5) Compensation

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6) Stated reason for termination.

5) Psychological Test:

In PEL, clericals jobs are subjected to the greatest amount of testing,

applicants for unskilled hourly jobs are tested least. The factors measured are

usually of the psychological type, such as ability to reason, capacity for

learning, temperament and specific aptitude.

Types of Psychological Tests:

Following types of tests are being used in PEL to identify talents.

i) Intelligence test:

ii) Mechanical Aptitude test:

iii) Clerical Aptitude Test:

iv) Interest Test:

6) Employment Interview:

PEL shapes interviewer behavior to establish a specific system

for conducting the employment interview. PEL considers following things to

set up such a system.

Conduct the interview in a relaxed physical setting. Begin by

putting the applicant at ease with simple questions and general

information about the organization and the position being filled.

To evaluate applicants, develop a form containing a list of

KSAOs weighted for overall importance to the job.

7) Approval by the Supervisor

The Supervisor approves the candidates immediately after the

employment interview and the candidate is recruited after probationary period.

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8) Medical Examination:

The. Medical test includes matching of an applicant's physical

capabilities to job requirements .In having the physical examination procedure

PEL has at least three basic objectives.

1) To ensure the applicant physical capabilities e.g. can the applicant

work standing up.2) To protect the company against unwarranted claims under worker's

compensation laws or against lawsuits for damages. If a record of a new

employees physical condition at the time of entry does not exit, a claim

could possibly be filed for injuries greater than after the job..

Questions to PEL Officials

1. What is recruitment?

2. Why recruitment is necessary?

3. Whose responsibility to recruit the candidates?

4. Method of recruitment you follow?

5. Is reference count in recruiting?

6. What kind of tests screens the employee abilities more properly?

7. Is background necessary for recruiting?

8. Why careful selecting is necessary?

9. Do you follow or have any selecting law or ordinance?

10. If selected employee does not work, as you like what you do?

11. Do you advertise your vacancy anywhere?

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PAK ELEKTRON LIMITED’s Practice

Recruitment refers the policies you need to carry out the people aspects of your management. These policies include:

a) Conducting job analysis

b) Planning labor needs and recruiting job candidates

c) Selecting job candidates interviewing

d) Orienting and training new employees

Recruitment is necessary for PEL because it is beneficial for the company and it is one of the basic requirements of the organization. It is the responsibility of Human Resource Department to conduct the job analysis and recruit the candidates. PEL follows both internal and external recruitment. Internal recruitment is beneficent because there’s really no substitute for knowing a candidate’s strengths and weaknesses. It is often there safer to promote employees from within, since you’re likely to have a relatively realistic view of the person’s skills than you would an outsider’s. Inside candidates may also be more committed to the company. Morale may rise, to the extent that employees see promotions as rewards for loyalty and competence. Inside candidates may also require less orientation and training than outsiders. So, PEL practices outside recruitment. PEL officials said that reference count in the recruitment up to some how and background is necessary for recruitment because it is the requirement of the organization.

Skilled people are the need of PEL because only skilled people have the good performance. And Intelligence tests best screen out the employee’s abilities and capabilities. In PEL physical test is necessary for all the candidates.

Careful selecting is necessary because if you hire wrong person it is a burden for the organization. The cost of hiring wrong person is much more than anything. So careful selecting is necessary so that right person for the right job can be selected.

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TRAINING AND DEVELOPMENT

Training is the systematic development of the attitude, knowledge,

skill pattern required by a person to perform a given task or job

adequately and development is 'the growth of the individual in terms of

ability, understanding and awareness'.

ORIENTING AND TRAINING OF EMPLOYEES

Once employees are "on board" their personal growth and development

overtime become a major concern.

In PEL both human resource directors and other managers play an

critical role in the development of orientation programs. Human resource

directors have assumed leadership in developing such programs.

ORIENTATION OF NEW EMPLOYEES

After the selection of successful employees the first step in their

introduction to company policies, practices and benefits is an orientation

program. PEL management as whose is initially interested in training and

educational programs in order to promote employment and utilize the talents of

its citizens.

The first phase is usually conducted by the staff personnel unit.

Subjects covered include products of the company, employee benefits, salary

schedules, safety, probationary period, timed recording and absence, holidays

equal employment opportunity programs, packing and the grievance procedure.

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The second phase of most organized induction program is performed by

the immediate supervisor. The inductee is introduced to fellow employees,

given a tour of the department, and informed about such details as locker and

rest rooms, supply procedures, hours of work overtime, call in procedures, rest

and lunch periods, and lunching facilities.

Phase three follow up some week later. The interview, conducted by

either the supervisor or a personnel specialist is concerned with

1) Employee satisfaction with the job and organization.

2) Supervisor satisfaction with the employees.

PEL is a multinational organization in which importance has been given

to training. The management consider the training as an "Investment in their

Asset". They believe that planed development programs will returns values to

the organization interms of increased. Productivity, high reined morale,

reduced costs and greater organizational stability and flexibility to adapt to

changing external requirements.

TRAINING NEEDS ASSESSMENTS:

In PEL there are three level of analysis for determining the needs

training can fulfill.

1. Organization analysis:

Focuses on identifying where within the organization training is needed.

2. Operation analysis:

Attempts to identify the content of training - what an employee must do

to perform competently.

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3. Individual Analysis:

Determines how well each employee is performing the task that make

up his or her job.

OPERATIVE TRAINING:

The development of operative calls for specific increased in skills and

knowledge to perform a particular job. In PEL there are primarily two basic

methods in use.

1) On The Job Training:

This method is most widely used and has the advantage of motivating the

trainee to learn. As the success of the system depends almost entirely upon the

immediate supervisor, the trainer, the personnel unit has a major responsibility

for making a good, effective reaches out of every supervisor.

2) Off the Job Training

There are three methods used in PEL for Off the Job training

i) Workers Training Program:

This program was inaugurated by M&F.A. Mirza, the CEO and MD of

PEL Pakistan Ltd. The main agenda of the program was to explore the hidden

talent of their worker and to make them cognizant of their own potentials. Mr.

A.I. Mir, the divisional head, and his team conducted the program in a very

interesting and entertaining manner with the help of IQ testing riddles and

different games.

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ii) Special Courses:

The second system of conducting training may be classified by some as

education rather than training.

iii) Skills training program:

This program was hold day and night from 25-10-97 to 27-10-97 at

LUMs. The objective of the program was to convert their sales staff into

technical sales staff. Mr. Mir. Presented on selling skills, while Mr. Mehmood

Hussain and Mr. Asim Naseer Presented on technical application knowledge.

Although, being held day and night, it was not a carry session but full of real

enthusiasm.

iv) IMPROVEMENT OF EDUCATIONAL AND TECHNICAL

QUALIFICATION:

The company adopts the policy of sending its employees for training

abroad. Apart from this, employees are sent to attend suitable training program

within Pakistan held by recognized institutions e.g. LUMS, IBA etc.

Employees who wish to improve their educational qualification by registering

in Diploma courses and degree courses are encouraged to do so.

Only admission to standard institutes e.g. IBA. Karachi university etc.,

the employee should not suffer. In return for any financial assistance provided,

it is expected that the employee will serve the company for a period of at least

five years after the completion of the Diploma / Degree.

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EVALUATION OF TRAINING PROGRAMS

To assess and evaluate the utility or value of training, in PEL

management seek ensures to four questions.

1. Did change occur,

2. Is the change due to training,

3. Is the change positively related to the achievement of organizational

goals;

4. Will similar change occur with new participants in the same training

programs.

In evaluating training programs, measures of change fall into four

categories.

How do participants feel about the training program?

To what extent have trainees learned what was taught.

What on the job changes in behavior occur because of attendance at the

training program?

Is what extent have cost related behaviour outcomes or quality

improvement, turn over or accident reduction (productivity) resulted

from the training.


12. What do you mean by training?

13. What is your training procedure?

14. Any Act, Law, or any prescribed method do you follow?

15. How do you Train your employees after selection?

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16. Do you provide some special training for some special purposes?

17. Method of training you follows?

18. What types of trainee are working in company?

19. Do you follow five steps of training and development process?

20. Do you hire any trainer or experts for lecturers for training of

employees Help?

21. Do you issue any diploma or certificate to trainees?

22. Does PAK ELEKTRON LIMITED has its own training center?


PAK ELEKTRON LIMITED Officials said that training means to update and boost up the knowledge and skills of the employees and it is a process of teaching new employees the basic skills they need to perform their job. They told me that company has its own prescribed methods for training the new employees. After selection they train their employees by providing theoretical as well as practical training. PAK ELEKTRON LIMITED provides both “On the Job Training” and “Off the Job Training” to its employees.

In PEL there are three level of analysis for determining the needs

training can fulfill.

1. Organization analysis:

2. Operation analysis.

3. Individual Analysis:

PEL trains its employees in its head office in Lahore and also

sends its employees at LUMS and |IBA for higher-level training.

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EMPLOYEES’ SERVICES SAFETY, HEALTH & WELFARE

To attract productive human resource and ensure positive

contribution to the organization's success, the company offers a variety of

facilities, benefits and welfare programs to its personnel.

Management at PEL, in addition to giving basic pay to its employees,

also cares for many employer benefit schemes and programs e.g. the distinction

of large corporations only. Here are important mentions in this respect.

Bonus:

In order to motivate the workers and get most out of them, incentives

and increments in salary are offered both to workers and officers. For this

purpose his performance is checked and if satisfactory he is given Rs.150 extra

in addition to basic salary.

Leaves:

PEL allows its employees leaves with the one basic salary per year.

People are facilitated with 30 days leave per year including 12 earned leaves, 8

sick leaves and 10 casual leaves. Company has its own guest house in Murree

and employees have options to spend one week there at company expenses.

Provident Fund:

In case of provident fund, 10% contribution is made by employees and

10% by the employee.

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Medical Facility:

People earning Rs.4000 per month have medical facility under the

Social Security. Those having salaries more than Rs.4000 per month, are paid

Rs.300 per month as medical allowance.

Provision of informative handbooks

In PEL, workers are also provided with informative handbooks which

can enhance their information about the optimum use of their skills.

Uniform Facility:

In PEL, Workers are provided with three uniforms in a year and

Performance Appraisal:

To boost the morale of employees, every year rewards are given to the

most regular person. A special performance award is also given

Loans:

Loan facility is also provided but it can be availed from the provident

fund of the employee, which is equal to 10%.

Workers Concession Shop:

In PEL, there is a workers concession shop where flour, ghee, sugar,

soap, etc is provided to the workers at subsidized rates.

Canteen Facility:

The Management of PEL believes that primary condition for good

health is nutritious food. So it is prepared under most hygienic conditions in

the company and is served at highly subsidized rates.

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23. What types of services are given to employees?

24. In case of health facility how much allowances you give to employees?

25. In case of any employee’s death, how much you give to his family?

26. Is any outside medical facility allowed to employees?

27. In case of welfare what facilities are given to employees?

PAK ELEKTRON LIMITED Practice

In PEL employees are provided with: -

Medical facility

Gratuity

Provident Fund

Utility Allowance

Conveyance Allowance

Outside medical facility is available for employees and they are paid at actual basis. It means if an employee gets treatment from the authorized hospital of the PEL where it will bear all its expenditure incurred.

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MANPOWER PLANNING

To get maximum output from minimum input of human resource.

Manpower planning requires an assessment of present and future needs

of the organization to be compared with present resources and future

predicted resources, appropriate steps should be planned to bring demand

and supply into balance.

Overstaffing is wasteful and expensive, if sustained, and it is costly to

eliminate. Understaffing loses the business economies of scale and

specialization, orders, customers and profits.

In PEL basic purpose for which HRD in relation to HRP serves are as under:

1. Balancing the cost between utilization of plant & manpower:

This theme involves comparing costs of these two resources in different

combinations and selecting the optimum.

2. Determining recruitment needs:

It is an essential prerequisite to the process of recruitment. It means that

HRD unexpected shortages, wastage, blockages of unexpected shortages,

wastage, blockages in promotion flow and needless redundancies.

3. Determining training needs:

HRD plans fundamental training programs for which it is necessary to

assess not only quantity but also quality in terms of the skills required by PEL.

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4. Management Development:

HRD provides succession of trained and experienced manager which is

essential to the effectiveness of the organization and this depends on accurate

information about present and future requirements in all management level in

PEL.

A system of HRP in PEL:

A system of HRP in PEL has some specific points on which company

act.

1. Defining or redefining organizational objectives.

2. Determining and implementing the basic requirement to sound planning.

3. Assessing future requirements to meet objectives.

4. Assessing current resources and availability of resources in the future.

5. Producing and implementing the plan in detail i.e balancing the forecast

for demand and supply related to short term and long term time.

6. Monitoring system and amending as indicated.

EVALUATION OF HRD PERFORMANCE

HRD of PEL is working very well. Such as planning, managing people,

resulting people, its objectives and its mission, guiding principle are very good

and helping in overall organization.

Managers of HRD are expected to organize and to be accountable for

the work of other people. In this process, managers act as employers as such

they create and sustain the employment relationships of their organizations.

The occupation of HRM specializes in technical skills of managing this

employment relationship. In the PEL specialist management has engaged.

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After we have seen how different models of personnel management have

developed, and it shall explore the interdependence between activities which

make up the personnel function of managements by looking at how these

activities interlock as a

"System in form of HRD"

REASONS FOR HUMAN RESOURCE PLANNING

The formal personnel planning is essential for PEL because it is

moderate to large in size, that experiences changes in technology, products,

markets and utilizes a lot of high talent personnel. Following are specific

reasons for which PEL management is carrying on systematic human resource

planning.

1) Future Personnel Needs:

2) Coping with Change:

3) High-Talent Personnel:

4) Strategic Planning:

5) Equal Employment Opportunity:

6) Foundation for Personnel Functions:

THE PLANNING PROCESS:

Planning for human resources is tied in with overall PEL long range

planning..

1) GOALS AND PLANS OF ORGANIZATION:

Human resource planning is a part of overall strategic planning for PEL.

A personnel vice-president and his staff cannot make useful plans for period of

one or three or five years, unless they have data on possible corporate

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expansions new products, new plants, new markets and so on. Important steps

involved in overall planning for PEL are:

1. To analyze and evaluate environmental influence.

a) Political trends and legislation which will have impact upon the

business.

b) Economic conditions such as competition inflation, rate of

change in gross national product and unemployment level.

c) Social trends in leisure time, consumer tastes, work values and

retirement.

d) Technological advances affecting enterprise.

2. To identify the values and aspirations of PELs directors and executive.

3. To identify and evaluate the internal strengths and weaknesses of the

enterprise.

4. To develop a strategy which relates the strength of the company and

aspirations of executives with opportunities perceived in environment.

5. To create specific enterprise objectives and plans for achieving these

objectives.

6. To prepare plans for the functional areas of the business; production,

finance, marketing, research and development and personnel.

7. To communicate with members of the organization and involve them in

planning process.

8. To evaluate progress toward implementation of plans and take

corrective action where necessary.

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PLANNING PERIOD:

The extent and rapidity of change in the forces affecting the business

determines the utility of forecasts into the future. PEL's planning period is from

3 years to 5 years. Period for three year is short range and of five years is long

range period.

2) CURRENT HUMAN RESOURCE SITUATION:

This is also called a skills inventory or manpower information system.

A skill inventory consists of up-to date information regarding the qualifications

of the selected categories of personnel. The skills inventory has several

important uses.

1) After preparing human resource forecast, PEL compare, the number,

types and skills specified by forecast with the present baseline or current

position given by skill inventories to as ascertain what skills must be

developed from present personnel via training, up grading and special

development efforts.

2. Other use is to identify talent within the organization for specific job

opening.

3. An up to date skill inventory is valuable for the preparation of rosters of

qualified technical and managerial personnel.

4. An inventory can be used in conjunction with an affirmative action

program to monitor progress toward meeting employment goals.

5. And finally the existence of a skills inventory enhance the opportunities

for employees to satisfy their career through development and

promotion.

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COMPUTERIZED SYSTEM:

PEL along with manually prepared Human Resource Data card also use

computerized system to handle data. The computer can readily provide a

printout of the age distribution of all mangers by level, job, and department.


28. What is manpower planning?

29. Why manpower planning is necessary?

30. In your bank, what is the role of manpower planning?

31. What is the maximum age of employee to earn salary in the

Organization?

32. Do tasks are given to employees at the start of year? If yes then how

they evaluate it?

33. Is there any difference in procedures of PEL after its take-over by

Saigols?


PEL Officials said that manpower planning means to use the human resource in such a way that we get maximum out put from minimum input of human resource. They said that manpower planning is necessary to use human resource economically and efficiently.

PEL Officials told that manpower planning has improved the working standard with economically and efficiently. Tasks are given to employees at the start of fiscal year. At the end of fiscal year, these tasks are evaluated by annual appraisal..

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SALARY ADMINISTRATION

There is no doubt that motivation is the crux for good performance,

but there is no clear-cut answer to the question of how to motivate.

Money is a factor in motivating people and this section concentrates on

this. Reward systems are discussed in general and later in specifics in

terms of payment by results. Various schemes for financial motivation

are also described.

i) In PEL all confirmed employees are allowed annual increments

ii) If service is less than one year then increment is granted in proportion of

the length of service during the year.

iii) Full normal increment is equal to the time scale of the grade in which

the concerned employee is placed.

iv) An employee can only be promoted when there is a vacancy in the

higher cadre of the organizational chart or position in which he is

working is being upgraded.

v) Promotion shall normally be considered at the time of granting the

increments i.e. at the end of June..

vi) Upto supervisory level employees, General Manager concerned and

General Manager (P&A) shall decide.

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vi) In order to give importance to the event, the employee concerned shall

also be interviewed.

vii) Merit shall be the only criteria for promotions. Seniority will be taken

into consideration only when every thing else is equal.


34. What is your minimum salary?

35. Is there separate salary department?

36. What steps you take to make your salary equitable for employees?

37. What is base of your compensation to employees?

38. Do you pay salary by cheque or cash?


PEL Officials said that their minimum salary in the organization is about Rs. 3000. There is separate salary department, which do the job of salary administration in PEL.

PEL takes many steps to make its salary equitable. Basically the salary at PEL is period based salary. If an employee works according to the rules and regulations of the organization, they pay them very well. I have not got information about their standards, which are seen by the management as a tool.

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INDUSTRIAL RELATION

The purpose of industrial relations is to ensure effective communication between management and staff, to secure maximum cooperation from staff, and to motivate staff to give their best by ensuring that they feel fairly treated, understands the overall direction and values of PEL and those of their departments, and how decisions that affect them have been reached.

DISPUTES IN ORGANIZATION

Sometimes the employees are not satisfied with their jobs and there are

some signs such as strikes, confrontation leading to lockouts and various forms

of withdrawal of cooperation by workers. But the typical conflicts which are

taking place in the organization are overtime bans, working to rules, refusal to

use new machinery have all seen in different sectors of PEL.

ROLE OF HRD IN SOLVING DISPUTES:

Different conflict resolution starts with a careful diagnosis of the

causes of the problem. And all the times HRD plays an important role in

solving there problems. It is then the responsibility of the manager of HRD to

apply an appropriate procedural, structural or personal solution or some

combination of all three. But the management of PEL believes that resolving

conflicts will be his or her own preparedness to adopt a pluralist stance, and the

interpersonal skills which he or she can bring to bear supplemented by --

honesty and pragmatism. But HRD performs following chief roles.

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Management communicates regularly and openly with staff; Staff consults on matters that affect them; Problems and disputes should be resolved through

discussion and consultation; and Management devises and encourages activities that

contribute to staff's well being.


39. Do you feel that industrial relationship is important?

40. Do you have international industrial relationship?

41. What is your practice to improve industrial relationship?

42. Is there any department for improvement of industrial relationship?


Good industrial relations, while a recognizable and legitimate objective for an organization, are difficult to define since a good system of industrial relations involves complex relationships between:

Workers (and their informal and formal groups, i. e. trade union, organizations and their representatives);

Employers (and their managers and formal organizations like trade and professional associations);The government and legislation and government agencies and 'independent' agencies like the Advisory Conciliation and Arbitration Service.

PEL understand the importance of industrial relationship, so, PEL tries to make good relations with employees. For this purpose PEL has a separate department for industrial relationship.

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SYSTEMS OF COMMUNICATION

Communication is a two-way process, for releasing staff's ideas, energy and ambitions. Through communication, management helps staff understand the mission, objectives and values of the department, and staff can let management know their ideas and aspirations for giving their best. Some specific communications objectives are:

Provide managers and staff with information to support

departmental budget decisions and workforce planning, including

context, benefits and challenges, training and technical

requirements, and implementation strategies.

Gather information on the campus’s business and training needs

at the appropriate times, to ensure that the system reflects those

needs to the greatest extent possible.

Encourage leadership and support from campus management.

Ensure that the various project staff and working groups receive

communication from project management and from each other.

Recognize the contributions and accomplishments of the many

participants in development and implementation.

Describe available resources and support for training, planning,

information, and assistance with change management.

1. Direct Communication Policy: PEL manager's door is

always open to employees. It provides continuous invitation for

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employees to come in and talk about everything that is

troubling them.

2. Effective communication: In PEL can be judged with.

Informal discussion

Meeting with manager

Formal meetingQuestions to PEL Officials

43. What are the tools, you use in internal communication?

44. What are the tools, you use in external communication?

45. Are you providing online banking?

46. How do you communicate with your foreign branches?

47. Are you using any intranet?


Good communication plays an essential role in the success of any organization. PEL uses all possible means of communication in its operation.

In Internal communication they use: -

Telephone (mostly) Email Fax

In External Communication they use: -

Written communication Verbal communication

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PEL gives you direct access to a comprehensive range of better facilities to help you monitor your business locally as well as internationally

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NEGOTIATING WITH UNION

Union:

In PEL, employees have a right to elect the Union on yearly basis. The

union includes one president, vice president, and general secretary and finance

secretary. It plays its part in all activities and arranges functions at important

occasions and negotiates with the management for employees problems. All

labour disputes are settled through the union.

Labour Laws:

Labour laws applicable in the country are also applied at PEL. All

benefits imposed by the Government of Pakistan and Government of Punjab

are granted to employees.


48. Is there any Union in your organization?

49.How do you manage unions and there problems?

50.Did PEL face any Strike in his life?

51.What are the main points of dispute between you and union?

52.Do you take unions seriously?

53.In your view, is union healthful for the bank?

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PEL has a very strong Union. PEL management manages the unions and problems by holding meetings with unions and discusses various problems.

PEL faced a strike in its life because the workers wanted increment in their pay but they did not have it. So, workers went on strike. Then management took a serious notice of this strike and went into negotiation with union of the workers and settled the issue.

These are the main points between PEL management and Union: -

Salary Various benefits

Promotion

All other staff related problems

PEL take union very seriously because they found very hard to manage the strike. PEL has a good reputation in the organization, so the management does not want to lose this reputation by union problems.

Human Resource Manager said that in his own view Union is healthful for the company because management cannot go against the benefits of the employees due to Union’s pressure.

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TERMS & CONDITIONS OF EMPLOYMENT

Productive human resource management in esteem organizations requires

two important foundations between the employee and organization -

terms and conditions of employment and a position description.

The term `employee' is used in the rules, regulations and covers all non-

unionized employees i.e. Junior Officer up to Managing Director

The company reserves the right in its discretion to modify, alter or

discontinue any rule, regulation or plan.

1. LEGISLATION FULFILMENT

All the legislations (which are followed by the organization)

should be taken into consideration while recruiting.

2. EMPLOYEES’ PERSONEL NUMBER & IDENTITY CARD

All the employees will be allocated their personnel numbers and the

Company will also issue a Company Identity Card to each employee. In case,

card is lost, the matter should be reported to Human Resource Division

immediately and a duplicate will be issued.

3. PROBATIONARY PERIOD.

During this period, the employee will not be entitled to avail any leave,

benefits of the medical scheme, coverage under Group insurance Policy and

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member ship of the Provident and Gratuity Funds except coverage under the

Accident Insurance Policy.

4. WRITTEN EMPLOYMENT CONTRACT

The employee should consider developing a written employment

Contract, which sets out any additional terms and conditions of

employment, which are applicable to the organization.

5. DUTIES & RESPONSIBILITIES

An employee shall devote the whole of his time to the business of the

Company and not be engaged, interested or concerned with any other business

or commercial activity of any kind whatsoever, whether directly or indirectly

without the prior written consent of the Company.

6. COMPENSATION AND BENEFITS

On the successful completion of the probationary period an employee's

services will be confirmed in writing and then an employee will be entitled to

avail benefits of Medical scheme, Leave Entitlements, Coverage under Group

Life Insurance, Membership of Provident Fund, Gratuity Fund, Pension Fund..

7. SALARIES, INCREMENTS AND PROMOTIONS

Salaries are disbursed to all employees on the 26th of the month or, if a

holiday, the next working day.

Salaries are remitted directly to the Bank Account and it is therefore necessary

that details of Name, Account Number, Branch and Place should be intimated

to H.R.D/S.P.C. on joining or if any change occurs.

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8. LEAVE: ENTITLEMENTS & RULES

All confirmed employees are entitled to leave according to the rules and

regulations stated below:

i. CASUAL LEAVE

RULES:

Casual leave may be allowed to be availed at one time for a maximum

of 3 days and shall not normally be combined with any other leave,

holidays and /or public holidays.

Causal leave shall not be accumulated and carried forward beyond a

calendar year.

ii. SICK LEAVE

Entitlement is 14 calendar days in a year and shall not exceed 28 days..

RULES

Any application for sick Leave which exceeds 3 days should be

supported by a medical certificate from a registered practitioner.

Company Doctor will examine the employee and his advice shall be

final, for the purpose of granting leave to the employee.

iii. PRIVILEGE LEAVE

The P/L entitlement for all employees is as follow:

Rules

a) An application for P/L shall be submitted to the Human Resource

Division duly recommended by the concerned Superior, a minimum of

14 days before commencement of leave.

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b) A minimum of 2 weeks P/L pertaining to one year has to be availed in

order to receive Leave fare Assistance for the year.

c) If privilege leave is cut short by any employee on his own accord, a note

should be sent to Human Resource Division immediately on resumption

of duty for adjustment of leave.

d) Prefix and suffix of weekly/gazetted/other holidays to Privilege Leave

will be allowed and as such will not be counted as Privilege Leave.

e) The management reserves the right to refuse any leave if the exigencies

of business so require.

iv. MATERNITY LEAVE

Maternity Leave will be allowed to the concerned employee for a period

of 12 weeks (85 Calendar days) for each case.

Application for the period of leave should be submitted well in advance.

9. TRAVELLING SCHEME

A travelling advance may also be taken by the concerned employee

keeping in mind, the entitlement and the length of stay planned. For this

purpose an advance form may be filled in, recommended by the

Division/Department Head and forwarded to Human Resource Division for

approval.

FOREIGN TRAVEL

In case of foreign travel, rules and regulations of the State Bank of

Pakistan will apply. Claims can be made according to he Daily allowance

prescribed for different countries by our principals.

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MEDICAL FITNESS PROGRAMME

The Company has a medical fitness programme whereby one in four

years each employee will undergo a complete examination at company's

expense on a schedule given by the company at specified clinics.

HOSPITALIZATION

In those cases where admittance to hospital is required total

hospitalization expenses, which include Doctor's fees, X-Ray charges,

Medicines, Laboratory charges etc., will be reimbursed by the company at its

description against proper receipts.

INSURANCE PLAN

The company has made arrangements to provide adequate 24 hour

insurance coverage of all its employees in case of death or permanent disability

while at work or traveling or at home.

SERVICE AWARDS

In recognition of loyal service, the company gives service awards to the

employees as follows:

1) Silver Plate: On completion of 10 years continuous service an engraved

silver plate or a gold ring is presented to the employee.

2) Gold Medal: On completion of 20 years continuous service a Gold

Medal is presented to the employee.

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54. Do you recruit on temporary basis?

55. Has your organization ever gone for Downsizing or Rightsizing?

56. Do you recruit on contract or permanent bases?

57. What are the terms and conditions of a Cashier Post?

58. Is there any quota system or your bank based on diversity?

59. Is there promotion criteria based on seniority or talent?

60. Why skilled people are required for job?


PEL recruits persons temporarily for temporary purposes. PEL also recruits on contractual and permanent basis as the requirement of the organization. There is no quota system in the recruitment of bank. PEL based on diversity. It means that organization can hire any appropriate person from the candidates without taking any quota into consideration.

PEL has gone for downsizing when it was privatized because the workers were not appropriate for the jobs. Now, the promotion criteria are based on talent rather than seniority.

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SWOT ANALYSIS OF APPLIANCES DIVISION

Strengths:

* The only A.C. in Pakistan which comes in three different weights i.e.

1.5 tons and 2 tons.

* The only local brand offering 5 year compressor and year parts

guarantee.

* Interior of the Freezer is lined with aluminum sheeting, further protected

by a rust profiling.

* Good picture quality

* Built in transformer to control fluctuations in electricity.

Weaknesses:

* High electricity consumption

* Poor after sales service

* Too heavy to carry and bigger in size as compared to other A.Cs

available in market.

* Inconsistent supply of product during peak season.

* Limited range of model.

Opportunities:

* Collaboration with carrier of American to produce new A.Cs (Window)

with American technology in Pakistan.

* Reduction in Excise Duty in 1997

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* Import duties are increased to reduce price gaps between local and

imported A.Cs.

* The Government is taking active measures to stop smuggling of A.Cs

from Afghanistan.

* Institutional Sales of deep freezers like sales of PEL ULTRA to walls.

* Ban on smuggled T.V. in Pakistan could increase, sales of PEL -

Threats:

* The influx of smuggled A.Cs in Pakistan from Afghanistan.

* The price gap between local and imported A.C. is reducing due to

decrease in import duties.

* Stagnant economy of Pakistan is a big threat to A.C. market.

* High Price

* Tough competition with foreign brands

* Increased input cost.

SWOT ANALYSIS FOR POWER DIVISION

Strengths

* The only plant in Pakistan which has got ISO 9000 certification

* It has technical collaboration with Asea Brown Boveri, USA

* Product is nearly flawless.

* Market leaders in Pakistan

* The ability to provide all types of designs as per customer's

specification and requirements.

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* Transformers have high short circuit withstand capability.

* High service life

Weaknesses

* Manufacturing cost is high as compared to competitors

* Improved quality standards is need of time.

* Instrument Transformer failure rate is relatively high.

* Temperature rise of transformers should be minimized at the design

state. Improvements in design need to be reviewed continuously..

Opportunities

* Government is planning to provide electricity in remote rural areas of

Pakistan

* ISO-9000 certification will enable the company to export energy meters.

* Power plants being installed in private sector provide a big opportunity

for switchgears.

* If payments are made by government PEL can improve the standard of

transformers.

Threats:

* High production cost can make the meters uncompetitive in competition

faced by Syed Bhais.

* Government taxation policies and custom duties.

* A huge amount of payment is not made by WAPDA & KESC. This has

hindered growth of switchgear plant.

* Heavy Electrical complex is a potential threat to the manufacturers of

transformers

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CONCLUSION

* The organizational structure of the company shows that the top

management is centralized as compared to middle and lower

management. The decision making is done at top level and the decisions

are enforced down the middle and lower management.

* The management is bureaucratic in nature. The authority increases as

we go up the hierarchy. Selection of members is based on their

qualifications and the requirement of the position determines who shall

be employed in what position.

* The organizational structure is not tall but flat. Due to flat structure span

of command is large.

* The organization's objectives are clearly communicated to each

employee through MBO program. This helps the employees to engage

themselves in those activities which lead towards achievement of

objectives.

* Top administrators ensure that every decision can be attributed to

someone. If some body is given responsibility and authority he is also

held accountable.

* The management audit is conducted after every six months which

considers policies, organization operating methods, financial

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procedures, personnel practices, physical facilities and over all

organization's condition. the information generated from this audit assist

top executive in ensuring that current policies and procedures relate to

the over all objective of the organization.

* The management is doing a great job in dealing with workers' union.

Management has good relationships with workers' union. The

management tries to meet as many demands of union as possible. If they

cannot they do every thing possible that workers union should be

satisfied.

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PROBLEMS AND RECOMMENDATIONS

Management is responsible for planning, organizing, coordinating and

controlling. A strong management is the back bone of a successful

organization. PEL has been a successful company in the industrial sector of

Pakistan. No doubt the management of PEL has played its role in the success

of the organization. The conclusions, problems and recommendations about the

management of the company are as follows:

Problems

* As company's organizational structure is centralized at top level, it is

causing an imbalance between responsibilities and authorities in the

lower portion of administrative span.

* There are not many career opportunities in the organization. Jobs which

are available are not very challenging. although the company offers

substantial monetary rewards but these rewards do not make the jobs

challenging.

* No training system is present in the company. The employees learn only

through experience.

* The promotion system is based on age and experience and not on

performance. This is a big reason due to which employees feel

dissatisfied with their jobs.

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* Centralized structure has blocked the way for unique and creative

decision in middle and lower administration. They are used to taking

orders as decisions are only taken by top management.

Recommendations:

* Organizational structure should be decentralized. This will solve the

problem of imbalance in the responsibilities and authorities of lower

administration. This way lower and middle administrators can be made

responsible and authoritative and at the same time would be held

accountable. This will also enable them to make unique and creative

decisions.

* PEL has recently adopted MBO. This will not only enable the company

to make the jobs challenging but also involve the employees to take part

in setting their objectives.

* The company should have an in-house training system. This would

enable the employees to keep in touch with latest development in their

field. Also the company should send able employees on courses in

different institutes.

* The promotion and reward system should be linked with performance

rather than age and experience. This will not only eliminate

dissatisfaction among the employees but will motivate them to perform

well on their jobs.

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