Human Resource is an area, which has proved its worth in the history of business world. The organizations that opt it at very earlier stage and implement innovative and effective techniques get their reward in the form of high performance and marvelous growth. Darwin’s doctrine of ‘survival of the fittest’ is valid in the business world too and the organizations that want to survive in the market have to be fit in each and every respect. Among all the aspect of organizational functions, Human Resource Management is the backbone of all. It serves as the spinal cord of whole system and integrates different functioning efficiently and effectively.
Human Resource Management has lot of functions to do, dealing with the ‘Human’ asset of organization from hiring to firing them. In this process, it performs the functions of human resource planning, recruitment, selection, orientation and training, monitoring, performance appraisal and motivating the employees for the sake of higher performance.
SALARY SCALED (In Brief)
Officers Non- Officers
Basic Salary fixed at joining fixed at joining
House Allowance 40% of Basic Salary 40% of Basis Salary
Utilities Allowance 10% of Basic Salary 10% of Basic Salary
Conveyance Allowance Rs.500/- to Rs.700/-p.m Rs.200/- to Rs.400/-p.m
All permanent confirmed employees are eligible for membership of Bank Alfalah Employees’ Provident Fund Scheme. An employee will contribute an amount equivalent to one month’ basic salary in a year i.e. 833% of Basic Salary per month towards the Provident Fund Scheme and an equal amount will be contributed by the Bank
Ø If period of service is less than 05 years, no gratuity will be payable.
Ø If period of service is 05 years and above, gratuity will be payable equivalent to one month’s basic salary (last down) for each completed year of service.
Ø Period of any overseas posting other than with Bank Alfalah Limited will be excluded from the total service for calculation and payment of gratuity. Further, for the period of overseas posting with BAL, any local law governing gratuity will be applicable and if he/she is posted back in Pakistan, the period of overseas posting with BAL shall be excluded provided gratuity is paid according to the local laws of overseas posting.
Bonuses are paid to all employees of the Bank as decided by the Chairman based on financial results during a particular year.
In addition to fixed bonuses for all employees, performance bonuses are also awarded to those employees securing “Outstanding” performance rating through the Bank’s performance appraisal system, subject to the Bank’s overall profitability for the year.
Promotion to Higher Cadre
Promotions to higher grade/salary range are based on employee’s capability, maturity and readiness to assume higher responsibilities, supported by sustained excellent performance over a period of time. It also depends upon availability of positions of higher responsibility.
An employee recommended for promotion to a higher cadre must have minimum period of service of two years with Bank Alfalah.
A certain period of time must be spent by an employee in a certain salary range before he/she is recommended for promotion to a higher salary range. Minimum suggested period to be spent in each cadre/range is at least two years before one is considered for promotion to next grade/range.
The Bank’s Management, at its discretion, may authorize exceptions to afore-stated guidelines to suit the requirements of the institution. Detailed promotion criteria is formulated by the Bank to suit organizational requirements and circulate to all units by HRD.
Honorarium on passing IBP Examination
Cash prizes offered to employees, who pass these exams, are detailed below:-
1st Attempt 2nd Attempt 3rd Attempt onwards
Stage1 Rs.50, 000 Rs.30, 000 Rs.10, 000
Stage2 Rs. 75,000 Rs. 50,000 Rs.15, 000
Stage3 Rs.100, 000 Rs.75, 000 Rs.25, 000
Reimbursement of Professional Courses
In order to provide financial assistance to staff members who wish to enhance their professional competence, bank will reimburse up to 50% of costs incurred by employee in respect of admission/ exam fees up to a maximum of Rs.50,000/- whichever is lower. Such reimbursement would be authorized after successful completion of higher degrees and /or professional courses related to banking and finance from recognized institutions. List of courses eligible for said assistance is given below;
Name of the Courses
1) CFA (Chartered Financial Analysis) (USA)
2) Banking Diploma CIB (UK)
3) ACCA (UK)
4) CIMA (UK)
5) CIA (Certified Internal Auditor)
Special Increment on Improving Qualification (For Non Officers Only)
Salary Increment per month
a) Matriculation Rs.150 (gross)
b) Intermediate Rs.300 (gross)
c) Graduation Rs. 300 (gross)
d) Post Graduation Rs. 450 (gross)
The increase will effect from the date of passing the exam and declaration of the results.
Performance Appraisal System in BAL
Bank Alfalah’s performance appraisal system is based on a combination of ‘MBO’ and ‘Enabling Traits’ approaches, under which 60% weightage is given to performance goals discussed and laid out in the beginning of the year. Another 40% weightage is assigned to enabling personality factors, which are clarified to all employs by their supervising office at the start of each year.
The system and process flow of the appraisal process is modified, improved and upgraded from time to time in line with the Bank’s requirements, as well as with industry practices. HRD notifies all units of the Bank of the PA system and procedure currently in use. Units are also notified deadlines for goal setting, form filling, monitoring and final appraisals.
Salary increases and adjustments are based on performance of employees during a calendar year and are finalized during the first quarter of the new year. Grade promotions, on the other hand are based on the availability of higher positions, employee’s ability to fill those positions and sustained high performance during the last few years, and are finalize during the second quarter of each year.
B. Objectives of performance appraisal
1. Improving the performance of the Bank and its staff members
2. Laying a solid foundation for relationships between staff and management
3. Clarifying performance targets for all
4. Using the process for career planning and professional development of staff
5. Review of salary, assignment and career path
6. Award of bonus(es)
7. Promotion to higher salary ranges and functional responsibilities.
C. Role of immediate supervisor & Branch Manager/ Unit Head
Performance appraisal is an interactive exercise between the immediate supervisor and the staff member(s) reporting to him/her. (A supervisor is defined as the person to whom one or more employees report on a regular basis). Branch Manager and Unit Heads supervise this interaction from a distance, and try not to dominate the proceedings. With their greater maturity and experience, they discreetly guide the process in order to empower the departmental heads to assume greater responsibility in this area.
The Branch Manager and Unit Heads however, continue bear the ultimate responsibility for successful completion of the exercise. They discuss the goal setting done by their departmental heads and place second signature on appraisal forms of all non-supervisory staff.
Supervisory staff is evaluated by the Branch Manager and Unit Heads directly. In addition to personal skills, their supervisory skills are also evaluated, using the second page of the appraisal from for ‘Managerial’ staff.
SWOT Analysis of HRD of BAL
The strength of HR department includes its training program, its customership & incentive and benefits offers to its employees. It is also involve in various social activates; as they have donated grant to our own department in order to get the best Human Resources in future.
Usually practiced reference hiring.
BAL should adopt thorough orientation program
Working time can increase their turnover rate
The new entrants in the banking sector
Pepsi Cola International
Pepsi Cola International (PCI) Company includes in beverages industry. PCI is well-reputed multinational organization, which is doing its business in almost every part of the world. The company is registered in New York STOCK EXCHANGE U.S.A. to make a better control over the business. PCI has given the manufacturing rights to different local companies that are called as franchisee. Now these local companies are producing the licensed products on the behalf of PCI by using their trademark. To maintain its goodwill in the market the company has a strict policy while granting the manufacturing rights. PCI has standardized products all over the world (e.g. same in size, shape and quality). The franchises have to follow all the standards as given by the company. Even PCI has deputed mobile teams all over the world who check the franchises internal as well as external standards on a regular basis. It keeps the company image stronger than its competitors. PCI has given its license in Southern Punjab to SHAMIM & Co. situated in Multan near MDA round about.
SHAMIM & Co. was established in 1967 as a Private Limited Company. It started its business in 1968. Allah Nawaz Khan Tareen (Ret. DIG) got license of 7-up franchise and was producing only one product, 7-up. But in 1973, it also got the license from Pepsi Cola International as its franchise. Now a day the Managing Director of SHAMIM & Co. is Alamgeer Khan Tareen son of Allah Nawaz Khan Tareen.
In Pakistan, at present SHAMIM & Co. is the largest production unit out of 11 franchisees. SHAMIM & Co. covers the area of Southern Punjab which consists of Multan city and its surrounding areas, Bahawalpur, Bahwalnagar, Dera Ghazi Khan, Sahiwal, Khanewal, Rajan Pur, Taunsa, Okara, Rahimyar Khan, Layyah, Vehari, Burewala, Pakpatan. The company is properly serving all these areas with quality products. Pepsi have an extensive network of distributors and well-trained sales staff to market and distribute its products in the whole of Southern Punjab, a territory that covers almost 150,000 esq. Pepsi cover a population of over twenty million people through more than 22000 outlets out of which 14,000 are exclusive Pepsi sellers. We provide a complete business package to our retailers including horizontal and vertical bottle coolers, point of purchase advertising, cash credit, etc.
In Pakistan, SHAMIM & Co. is at the top of the list of all eleven franchisees showing financial and sales growth according to their relative sales volume size. SHAMIM & Co. has achieved “Mega Plant” status in 2000 and 2001. Shamim & Co. is currently enjoying 81% market share in the franchise which is the highest for any Pepsi Cola franchise in the world.
“To earn profit by meeting the customers needs with quality products”.
For effective control the company has the following departments.
1) Production Department.
2) Administration & Personnel Department.
3) Sales/ Marketing Department.
4) Finance Department.
5) Human resource department.
Ø Pepsi Cola
Pepsi is a manufacturing concern company. It is one of the leading multinational dealing in food and beverage industry. It has 157000 employees working with them and generating total revenues approximately over $32 billion in 2005.To remain a successful, the proper human resource planning is very necessary and Pepsi human resource department is trying it best to do this. Now we see Pepsi is at what extent successful in their Human Resource Management.
Human Resource Planning In Pepsi
For human resource planning the strategic goals and objectives are the key activities. Same is the case in the Pepsi. With the start of the season the goals and objectives are set. The goals of the organization are
Ø To meet customer demand by providing quality products.
Ø To remain market leader and improve its brand quality.
Ø To provide good services to customers, employees, communities, and the environment.
All these objectives are set to achieve the profit maximization and a greater market share for the firm. And on the basis of these goals each department sets its own goals. Each departmental head is responsible to meet those goals and objectives and further subdivide into his department and then yearly goals are divided into months.
Each departmental manager’s target is to meet these goals in each month. After each month they evaluate that whether they have met or not and if they are unable to meet those goals then they take necessary actions to cover them in the future.
For example the goals of the production department are to produce right number of product items with standard quality, minimizing the cost of desired production and to provide the final product to the next department on time.
Human Resource Planning Process in Pepsi
In Pepsi managerial estimates are used to determine the total future need of Human Resources in the organization. Than human resource department take actions to fulfill these needs. The employees hired both on permanent basis and temporary basis. After the season the temporary employees are layoffs. Normally the temporary employees are hired in production department.
Tools and Techniques of Human Resource Planning
Many tools are available to assist in human resource planning. In Pepsi the most commonly used tools are
1) Succession Planning. (managerial employees )
2) HRIS (non managerial employees)
Recruitment in Pepsi
In Pepsi the issue of employees hiring is more critical as compare to other organizations because there is cyclical demand for employees. Pepsi uses both methods internal and external for recruitment depending upon the number of the employees required.
Internal Recruitment Methods
External recruitment is necessary for the organizations like Pepsi that are rapidly growing because there are large demand of people and internal sources are not sufficient to fulfill this demand. Pepsi use following methods of internal recruitment to attract their existing employees to apply for jobs available in Pepsi
1) Job Posting and Biddings
2) Memos to Supervisors
External Recruitment Methods
Pepsi also use external recruitment methods to recruit a pool a qualified employees so that the most suitable persons can be hired for the job vacancies available in organization. Pepsi use the following external methods of recruitment
1) Job advertisement
2) Employees referrals and walk-ins
3) Campus recruiting
Who Is Responsible For Recruitment
In Pepsi assistant Human Resource Manager Miss Parsa Habib is responsible for both external and internal recruitment.
Selection in Pepsi
There are tow different process of selection in this company for non managerial and managerial employees
Selection process for non managerial employee
First of all a pool of applicants are attracted. All applicants provide information about them in form of resume. When resume received from applicants. Now, the HR department evaluates the information and considers the application which cover the criteria otherwise applications are neglected, this process is called short listing. After the short listing a skill test is taken, if test scores meet the criteria than employee is considers for interview. After this the final selection is made. HRD has advisory capacity but actually, the selection decision is made by immediate manager.
Selection process for Managerial employees
First the candidate applies or sends their resumes than an entry test is conducted by the organization. If the candidate is successful in this test than he move towards the next step of initial interview and than final selection is conducted by the manager of concern department and he makes the final decision about selection.
Orientation in Pepsi
Orientation is the process of introducing of new employees to the organization, their work units, and jobs. In Pepsi there are two types of orientation exist. In Pepsi there are two types of orientation exist
1) Official orientation provided by the organization.
2) Unofficial orientation provided by the co-workers.
Official orientation is for the managerial employees and unofficial orientations are for the non managerial employees.
Length and Time of Orientation
In Pepsi, the length and timing period of the orientation program is very short usually from 1 to 2 hours.
There is no concept of orientation kit in Pepsi. They are not providing their employees orientation Kit.
Training in Pepsi
Training for new employees is very necessary because without the proper training of employees no organization can achieve maximum output from their employees. Every organization offers their employees training so that they can sharp their skills and perform their jobs well. Pepsi is also offer to their employees training. They are doing both off the job and on the job training. 75% on the job training and remaining is classroom training. Following are the commonly used methods of training in Pepsi
Ø Understudy assignment.
Ø Classrooms training.
Ø University and professional associations.
Off the job training methods are used by the non managerial employees or technical staff. Classrooms training and university and professional association are generally used for managerial employees.
Who Train the Employees?
In case of non managerial employees training the immediate manager train the employees. This is for 3 days to 1 Month. For managerial employees Pepsi hire professional trainer. This training is held Hotels. This training is for 3 days to 15 days.
Training Evaluation is very necessary because there are a lot of benefits of training Evaluation. We come to know our strengths and weaknesses through training evaluation. But in Pepsi, there are no proper training evaluation system is existing.
Career Development in Pepsi
Career development is necessary in every organization. Because it something that makes employees satisfied and increase their performances level ultimately this increase organization productivity. This is also helpful in achieving organization objectives.
Career Planning In Pepsi
Pepsi provide career development opportunity only for managerial employee.
Organization secures the managerial employee future and gives them best opportunity to improve their knowledge by helping them in studying different courses related to their job. In Pepsi there is no concept of career development for the non-managerial employees because of this there is a very high employee turnover rate in Pepsi.
Performance management system in Pepsi
Performance management system is the important components of human resource management. Through this the organization identifies the strong and weak points of their employees and tries to rectify them.
In Pepsi they have no proper way of evaluating the performance of their employees.
Who Evaluate The Employees Performance?
Employee immediate manager evaluate their performance on regularly basis. on the bass of the evaluation the manager discuss with employee his strong and weak points and guide him how to overcome their weakness. The performance of the Managerial employee is measured by the manager of the department.
Compensation and Benefits in Pepsi
Compensation and Benefits motivates the employees and these must be offer by the organization. In Pepsi there is no concept of compensation and benefits for the non-managerial employees but Pepsi offer benefits and incentives to the managerial employees. These includes
Ø Medical allowances
Ø House rent
Ø Education allowances
Ø Convince allowances
SWOT Analysis of Pepsi
Strengths of Pepsi:
Ø Pepsi has a strong recruitment system.
Ø Pepsi has a database which contains the particulars of all the employees within the organization.
Weaknesses of Pepsi:
Ø Pepsi has no proper Human Resource Planning
Ø Pepsi has no proper selection system.
Ø Pepsi has no proper way for orientation system for new employees.
Ø .Pepsi has no proper performance management system.
Ø Pepsi has not provided good career opportunities for their employees.
Opportunities for Pepsi:
Ø Pepsi is going to establish online performance management system for their employees.
Ø Pepsi is going to establish proper recruitment system for new employees.
Threats for Pepsi:
Ø Pepsi has a very high employee’s turnover rate.
Ø Pepsi has no proper career development system that result employees job dissatisfaction.
Ø Pepsi has a small selection ratio for non –managerial employees.
BAL and Pepsi both are reputed business firms in their relative markets. Both the firms have some weaknesses which should be minimized; there are some suggestions for both of the firms which as follows
Increase compensation and benefits to retain their existing employees also should have a better career development strategy to make it happen for their employees to go up the organizational hierarchy.
A better orientation strategy should be adopted to socialize their employees with the organizational rules and regulation also they should provide orientation kit to its employees.
They should revise their timing schedule for the employees to that employee satisfaction level will increase.
They should provide equal employment opportunity and avoid referrals this will create a more positive image of the bank in general public.