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Introduction of National Fertilizer Corporation (NFC)
Islamic republic of Pakistan and state of Abu Dhabi, the two Muslim countries, agreed to establish a joint venture for contributing to Pakistan economy. Both the governments on November 15, 1972 to further strengthen the brotherly relations concluded a protocol. Subsequently a memorandum of understanding was executed between West Pakistan Industrial Development Corporation of Pakistan (WPIDC) and Abu Dhabi National Oil Company on March 07, 1973 followed by a participation agreement which was signed on November 01, 1973 establishing Pakarab Fertilizer as joint venture Company for the expansion and memorization of the Natural Gas Fertilizer Factory at Multan
The National Fertilizer Corporation of Pakistan is Government undertaking and is responsible for the installation and efficient operation of the fertilizer plans in the public sector. Apart from managing the existing production facilities at Haripur , Faisalabad /Jaranwala, Merpur Mathelo , the corporation is currently implementing installation of a large fertilizer complex for the manufacture of Urea at Iskanderabad (Daudkhi); District Mianwali.
The Abu Dhabi National Oil Company, also a state owned company, is responsible for the development and operation of Emirates oil and oil related industries, its diverse interest includes, off shore and on land drilling petroleum Investment Company (IPIC) which holds investment /interests in Morocco Tunisia and Egypt have now assumed ADNOC share in Pakistan fertilizers.
Pakarab fertilizer incorporated on November 12, 1973 is the largest fertilizer complex and a living symbol of fraternal relations between Islamic Republic of Pakistan and Emirates of Abu Dhabi and the only fertilizer manufacturing facility producing compound fertilizer in the country with total authorized capital of 1,000 million, the interest of WPIDC were assumed by National Fertilizer Corporation of Pakistan as a result of reformation of public sector in the country. Pakistan with the capital share through NFC and Abu Dhabi previously through ADNOC and now through IPIC has the equity participation in the ratio of 52% and 48% respectively, with the paid up capital of 743.061 million.
This Content Originally Published by a member of VU Students.
Human Resource Management
Human Resource management or Personnel management is the organizational function that consists of practices that helps the organization to deal effectively with its people during the various phases of employment cycle.
Purpose of Human Resource Management
The human resources of most organizations are properly viewed as their most important asset. The successes and failure of the organization are largely determined by the caliber of its work force (starting with management) and by the efforts it exerts. The purpose of human resource management is to improve the productive contribution of people to the organization in way that are strategically ethically and socially responsible. The purpose guides the study and practice of HR management which is also commonly called Personnel management.
There are three stages in the employment cycle these are as follows
It consists of two things planning human resource and job analysis. Job analysis is very important as for as recruitment is concerned because the basic purpose of the recruitment is to fill the job position that are created during the job analysis. So the job analysis should be done carefully to make the recruitment and selection process successful
The second stage of the employment cycle is the selection. This selection is generally divided into recruitment and selection. This phase largely depends upon the first stage. Recruitment is done before selection but after recruitment it is not necessary that selection is done. Recruitment means to attract the applicants and selection is a process to choose the best candidate among the applicants
After selection post selection is started it consists of many things such as training and development, performance appraisal, compensation and productivity and improvement
Introduction of Recruitment
Recruitment is a Human Resource Management practice that is designed to locate and attract job applicant for a particular job
Recruitment is one of the most important functions of the HR practices. The quality of an organization’s human resource depends on the quality of its recruits. The basic purpose of the recruitment is to recruit the new people in the organization and whenever a company wants to hire new people in the organization recruitment is done. Recruitment starts when a company announces for a job.
Introduction of Selection
Selection is a process to choose the best candidate among the applicants who have applied for job. Selection is conducted to verify an applicant can fulfill job demands.
Recruitment, Selection and job analysis
Recruitment strategies rely on job analysis information and human resource plan. When the job has been identified the recruiter learns what each job requires by reviewing the job analysis information particularly the job specification and job description. Recruitment plan is designed according to the job specification and job description and at the time of selection the people are selected according to the job specification.
Recruitment and Selection in NFC
As competent employees are need of every organization so there must be department or some time a group of employees to recruit and select the most competent candidate from job applicants. These candidates must meet the required skills, capabilities and knowledge required by the organization.
To meet all these requirements in National Fertilizer Corporation there is separate department called Personnel Department. All the human resource activities are performed by the personnel department. Selection and recruitment is an important step of employment cycle and an important activity of human resource department. In NFC this important activity is also performed by Personnel department.
After the brief introduction of human resource management and recruitment and selection, now we will discuss Selection and Recruitment in National Fertilizer Corporation in detail.
Objectives of Recruitment
After analyzing the different job position described in the organizational chart they see what different requirements are needed for different jobs. And the purpose of the Recruitment is to locate and attract those applicants who fulfill these requirements.
The purpose or objectives of Advertisement that they use for recruitment procedure is to locate and attract rather than improving the image of the company.
Types of Recruitment
There are two types of recruitment
· Internal recruitment
· External recruitment
If the employees are selected from within the organization and it is called internal recruitment. If the employees are selected from outsides then it is called external recruitment.
There are advantages as well as disadvantages of both types of recruitments
If the employees are selected from with in the organization then the previous vacancies remain vacant but there are fewer expenses to do this. If the employee is selected from out side the organization then it may be expensive but new people bring new idea with them.
In NFC both type of recruitment are done depending upon the situation. Internal recruitment is done by promoting the exiting employee. But if once the external recruitment is decided then the exiting employees have no preference on the others. At the time recruitment only purpose is to attract the employee they don’t use it for the promotion of the company because they do not heed to prove their organization.
Sources Used for Recruitment
There are different resources for Recruitment such as Print media (Newspaper and magazines), Electronic media (Internet and Television) and Employment Agencies. Organizations use these Medias according to their requirements and budget.
In NFC usually print media is used for the recruitment advertisement. Different print media are used for different grades.
For low level of jobs Urdu news papers such as Jang , Nawa-i-waqt , Khabrain are used and for higher grades of jobs print media like Dawn , The News are used. They usually don’t used employment agencies for the recruitment as the recruitment and selection is considered as a responsibility of Personnel Department.
They also don’t used walk in interview and referrals and web sums as there is already overstaffing in the organization due to political factors.
Selection is the process of choosing best candidate among the applicants. Selection is done after recruitment. Recruitment is necessary before selection.
Marc says that “Before they hire, employers want to be sure applicants can handle the demands.”
Sara says that “Labor shortages, which are predicted to last in to the next century, are expected to increase the importance of applicants’ attraction for organizations.”
Most of the cost depend upon the selection and can be important for both cost and quality differentiation. So it is an important function and legal requirements. Selection should be there to check age more than 12 years equal employment opportunity is also a legal.
Objectives of Selection
The objectives of selection is same as that of Recruitment but here the main purpose is not only to select the candidate but also to validate their skills and knowledge required by job through testing criteria.
Basically NFC prefer quality differentiation while recruitment and selection.
Because they think that recruitment and selection is very important function so they can not compromise quality.
Duration of Recruitment and Selection Process
Normally this process of recruitment and selection takes three to four months to complete. And one month of these three or four months is consumed for the advertisement/recruitment procedure.
To analyze the selection process in the NFC we will divide it in to difference steps. And we will explore each step one by one and see how each step is implemented in NFC.
Steps in the Selection Process from bottom to top
1) Preliminary reception
The organizations select employees from applicants and applicants select employers. It is the perception of applicants about organization and they try their best to be an employee of that organization.
As in these days there is unemployment so applicants are trying to get employment instead of organizations finding employees. Same situation is followed in NFC either applicant has good or bad perception of organization.
2) Employment Tests
Testing is process of matching the skills and capabilities of applicants and that of job requirements.
Tests are there to check two things as followed;
It means to check that either test is measuring the desired factor or not. If desired factor is according to the factors that we want to measure than test is valid and this criterion is known as validation.
It is the consistency of results of tests that is if a test gives same results if conducted more than once.
Validation and Reliability in NFC
In NFC tests are suggested by a group of competent employees having a lot of experience. These tests also depend upon the requirements of job so that it can measure the desired factor in applicants.
NFC uses mostly written and oral tests for checking the skills, abilities and knowledge of applicants. Mostly written tests are giving more preference and purpose of conducting these tests is to check basic skills and abilities such as IQ, memory, and numeral skills. Moreover different test types are used.
Physical and drug screen test are not used by the NFC. They just get this information from the medical certificate of the applicants.
3) Selection interview
Interview is a direct conversation between the job applicant and the group of panels conducting the interview. Mostly a limited number of applicants, who have performed well in written test, are called for interview.
Basic purpose of conducting the interview is to check three things:
1. Can applicant do the job?
2. Will applicant do the job?
3. And comparison of the job applicant with those applicants who are considered for the job
Type of Interview Used
In NFC mostly group interviews are conducted that is a group of interviewers conduct interview from one interviewee at a time.
Types of Questions Asked
Type of questions depends upon situation and requirements. These questions are usually related to the subject and related to the personality of the candidate Mostly the interview consists of mixed questions such as structured and unstructured. If an applicant is competent then some specific extra questions are asked.
Planning of Interview
Interviews are also planned by NFC. Following consideration are followed in interview planning:
· Timing of interview that is starting and ending time of interview and every applicant is given almost equal time depending on the number of applicants.
· Types of questions
· Creation of such a friendly environment so that interviewee is not confused.
· Group of employee who will conduct the interview.
No Interview Review
In NFC, they say that at the end of interview they just write the score of each candidate but no overall review of interview.
According to the NFC they say that group of panels is consists of competent and well experienced employees and they know almost all mistakes while scoring. However if some inconsistency is found then it is resolved due to result of multiple raters.
4) Reference and background checking
Background and reference checking is done to check that applicant is good and reliable, to confirm the qualifications and achievements of applicants mentioned in resume, and what type of person is applicant.
NFC checks applicant’s educational certificates and character certificate to verify the educational back ground. And also checks their previous job experience certificate to verify their job experience and job performance.
5) Medical Evaluation
Medical evaluation is required to check that either applicant is physically fit or not. In NFC there is no as such strong medical evaluation of applicants. They just check the medical certificate of doctor to check that applicant is physically fit or not.
6) Supervisory Interviews
This is the interview conducted by the supervisor under which selected candidates have to work. The purpose of this interview is that to check that either the candidate has enough skills and information for doing the job. In this interview supervisor ask job related questions.
In NFC they say that first selected candidate is selected as on contract bases. And he is kept under observation for the contract period and if employee has performed well then he/she is declared as permanent employee. NFC uses on job training.
7) Realistic Job Previews
The meaning of this step is to tell the employee about the job and environment in which he has to work.
In NFC this step is not indicated as they have told that if an applicant is an engineer then he already knows that he has to work in dusty, noisy and polluted environment. If applicant is applied for some higher post than he knows that he has to work indoor. So this information is almost known by the candidate or job applicant.
8) Hiring Decisions
This is the final decision made when a specific job applicant is selected for a specific job. This step is the end of the selection process. And information of new employee is added to Human Resource files that include basic information of employee and information related to his performance and audit. As candidates are selected on contract basis hence NFC makes final decision after the end of contract period if the employee has performed up to the mark then final decision is made to declare him/her a permanent employee otherwise employee is terminated. Termination of an employee means that he is not performed up to the requirements of the job then in this situation no one is blamed.
Accessing internal strengths and weaknesses enables manager to identify their organizations core competencies. This assessment covers the organization relative competitive position human resource skills, technological capabilities financial resources and managerial depth and the values and background of its key employees. At least three tests can be applied to identify core competence in a company.
· A core competence should provide potential access to a side variety of markets.
· A core competence should make a major contribution to customer’s processed benefits from the goods and service.
· A core competency should be difficult for competitors to copy
Most individuals find it easier to access strength than to access weaknesses. They are integrated as the fault of management and employees. Some managers perceive statement of organizational weakness as personal threat to there position influence and self-esteem. But weaknesses are not self-correcting and are likely to become worse if not dealt with as part of strategic planning
National Fertilizer Corporation of Pakistan is Government undertaking and is responsible for the installation and efficient operation of the fertilizer plans in the public sector. The corporation is divided into different departments. To manage the human resource activities in the organization there is separate department.
Recruitment and selection is one of the most functions that the Personnel Department performs. Recruitment is done both internally and externally in the organization. In the organization mostly print media is used as the source of recruitment. It takes about three to four months to complete to recruitment and selection procedure
After the recruitment is done selection procedure is started. For the selecting the candidate there is testing procedure tests are both oral and written types but the tests are not so much complicated. After the tests there is an interview. Interviews are held by the group of trained people. Interviews are planed before they are conducted. Also the existing candidates are not preferred over the other candidates. There is also reference and background checking for the selected candidates. The hired candidates are hired on contract basis after certain period usually after one year they are permanently hired
Selected candidates are also given on the job training and generally it is assumed that the people who are selected are trained enough and they know how to perform their job