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F i r s t C h o i c e
F o r E v e r y O n e
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T r a n s f o r m P T C t o p e r f o r m w i t h t h e
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S p e e d , f l e x i b i l i t y a n d e n t e r p r i s i n g s p r i t e o f
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R e g a i n v o l u m e & v a l u e l e a d e r s h i p b y p o s i t i o n i n g
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D r i v e w / c s t a n d a r d s i n p r o d u c t s , p r o c e s s e s &
t h r o u g h p a s s i o n a t e , s k i l l e d a n d c o n f i d e n t p
HR Manager
HR Admin Officer
Assistant HR manager
Assistant HR manager Assistant HR manager
leaf & GLT
HR Welfare Officer
HR Legal Affairs
Unionized Employee
Recruitment
Recruitment is a searching for and obtains potential job candidates in sufficient number
and quality, to enable the organization to select the most appropriate people to fill its job
needs. First of all there is a requisition from a department for a post which if approved by
the HRD, it is advertised with full job description and specification in the leading
newspapers (it is also checked if the post can be filled from within or alternate solutions
are figured out in order to save hiring, training and other expenses). Thereafter, when a
pool of applicants comes up by the due date, the recruitment process comes to an end.
In PTC, employees from grade A–01 to A–10 are hired by Human Resource Department
whereas Business Support Officers BSO’s (grade A–30 to A–33) positions are
recommended by the HRD at the Factory to the Head Office. The recruitment of
Members of Management MOM’s (grade A–34 to A–37) is the responsibility of Head
Office where recruitment sources such as recruitment agencies, campus campaigns and
employees’ databanks are identified to attract world class candidates for the openings in
the company.
In PTC when a job vacancy arises, the following steps are taken in the process of
recruitment:
1. Recruitment Advertising (Internally or Externally)
2. Internal Vs. External Recruitment
3. Compilation of Applications / CV
Internal Recruitment
Commonly for position above the entry level the acceptable source of applicants may be
within the organization itself. To find qualified applicants within its own organization is
called internal recruitment.
In internal recruitment is through “job posting and bidding”. This process consists of job
vacancy notice on bulletin board.
External Recruitment
External recruitment is another method which is commonly user method. To find
qualified applicants without its own organization is called external recruitment. There are
many sources (universities, colleges, and other government, private sectors) from which
we can attract required employees.
Orientation
Orientation is always only gives to new employees which is selected by external
recruitment process. In this we give the information of all departments, such as head
office, regions, areas, factories and from where raw material comes.
Overall Training
Training is a planned effort by a company to facilitate employees learning of job-related
competencies. These competencies include knowledge, skills or behaviors that are critical
for the successful job performance.
At PTC there is a continuous assessment of the technical and managerial skills for the
further enhancement of these skills formal training programs are offered at all levels. The
employees are provided with opportunities to put these skills into practice, in preparation
for the move to a managerial role. Training is viewed at PTC as a way of creating
intellectual capital. Employees are expected to acquire new skills and knowledge, apply
them on job and share this information with other employees. The training is cross-
functional for sharing of skills. The training programs also include International
Seminars.
Personal Opinion
According to our personal opinion PTC has a very systematic approach to recruitment.
The most important thing as far as recruitment is concerned they recruit qualified and
quality personnel. The example can be that for MOM’s they recruit only those students
who are graduates from good institutions i.e. IBA, LUMS, GIK, NUST etc. As far as
training and development is concerned PTC has a very good training and development
programs.
PTC recruits both internally and externally, but as the skill available internally is not
sufficient, so they have to recruit externally. And if a situation comes in which skill is
available both internally and externally they will defiantly go for internal recruitment.
The reason behind this is that because the internal employee won’t be new to the
organization and he will be aware of the culture of the organization.
Their training and development programs are fully sponsored by the organization. For
Example: Mian Hameed (HR officer) the person we interviewed was sent to get HR
Diploma from NUST and he was fully sponsored by the company, which includes
traveling, accommodation, fee, food etc. For training and development PTC reviews the
performance of the employee every year and according to that they judge who should be
sent for training. It is also observed in PTC that employees can ask management to send
them for training if they feel that it is necessary. In reaction the management reviews that
problem and decides whether he/she should be sent or not.
Selection
Selection of candidates follow after the recruitment procedure is completed. Thus the
selection under take to consider those candidates who applied for respective job and
decides which one should be given the appointment. Selection process typically consists
of the following steps.
Advertising
First the post is advertised in the leading newspapers, and interested candidates are asked
to send their CV’s.
Employment test
Then there is a written test of the candidates who are selected and they have to go
through a proper written test.
Assessment test
After the written test there is an assessment test. In which leadership qualities, teamwork,
individual burden handlings are checked.
Comprehensive interview
Those candidates who are selected in assessment test are supposed to have a
comprehensive interview. In the comprehensive interview business questions are asked.
Background investigation
In This section the organization checks the background of the employee, in which
previous organizations, contacts, work experiences etc are checked.
Conditional offers.
The employer gives different packages to the new employee. In which salary, working
hours etc are decided.
Final interview.
After doing all the tests the employee has to give a final interview in which timings,
branch office are decided.
In first step they attract the people who are willing and having ability for that job. They
attract the people with advertisement in newspaper; go to different recognized institute
and the database or pool of application, which an organization has received already. After
screening from those applications here screening criteria are (education level, experience,
skills, etc). In next step they grade those applicants according to their education level,
experience, skills, university, etc. From third step they differentiate selected applicants in
to two groups. From third step the selection criteria is different.
Manager’s Criteria
In manager cadre those who are selected for next step the organization send them letters
in which initial interview date time are mention and also send them a form in which some
question about their previous career, functionality etc. The initial interviews are taken by
HR and the functional managers. The applicants who successfully cross this step, the next
step is Assessment center in assessment center in which the organization develop a
business environment to assess their managerial and non-managerial skills such decision,
communication, work in a group, individual, behavior, leadership and other. Later than
carry out the final interview, which is conducted by Functional Director or HR Director.
In next step the medical test of accomplishment applicants and then offer the package of
salary and all other benefits and allowances. When they accept the package then send
them to their position and the last step is joining.
Personal Opinion
Performance Appraisal
Performance appraisal at PTC is used to evaluate the job performance of employees. HR
department use the information gathered through performance appraisal to evaluate the
success of recruitment, selection, orientation, placement, training and other activates.
Formal appraisals are needed to help managers with placement, pay and other decisions.
This kind of formal appraisal in PTC for Business Support Officer is called Steps or
Success Through Performance Evaluation the method used for managers is called PACE
or the Performance Appraisal for Career Enhancement.
The appraisal forms are rated by the mangers or concerned authorities on the basis of
Core Skills and Functional/Technical Skills. The comparison of the actual level of
competency and the expected competency level which is also defined as meeting the
success criteria gives a true picture of where these employee stands. The strength and
weaknesses are analyzed and according to that a training program is arranged to
overcome the problems. In PTC a standard measure is a Success Criteria that reflect the
behaviors needed to embrace to meet the future demands.
Compensation
PTC considers its employees not just as a cost but as a resource in which the company
has invested from which it expects valuable returns. Pay policies and programs are one of
the most important human resource tools for encouraging desired employee behaviors.
The advantage of paying above the market average is the ability to attract and retain the
top talent available, which can translate into highly effective and productive work force.
Promotions
In order to retain employees and keep them motivated, the employees having good
performance can be promoted to the next higher post. There are two bases for promotion
in PTC - the suitability and Seniority. Suitability means the suitability of the person in
terms of his performance on the job and seniority means the time he has passed in PTC.
There are certain jobs to which eligible persons are directly promoted and do not require
any further training. But certain jobs require special training for a particular period. So,
when a person is to be promoted to these jobs they are provided with specified training.
There is an annual assessment form, which is used to grade employees. It depends upon
the work performance, quality of work, cooperation, versatility, general knowledge, and
punctuality and attendance of a worker.
Line managers do their assessments, their immediate bosses. That is from January to
December having remarks of unit manager, sign of in charge of department marks
according to percentage point system. In production upgrading is easy, group operator to
machine controller.
A8-A9-A10 while training promotion. A1-A6- takes nine months. A8-A9- takes eighteen
months.
In PTC, there are mainly three levels of employees working in different departments; one
level is workers from grade A–1 to A–10. The second level may be classified as Business
Support Officers from grade A–30 to A–33 and the third level is Members of
Management from grade A–34 to A–37. HRD at PTC deals in the benefits available to
blue–collar workers (level 1) working in different departments.
Monetary benefits available to these workers may be classified as
• Wages and Salary;
• Incentives;
• Fringe Benefits; and
• Bonus.
The wages of workers in PTC are determined through salary reviews, job surveys and
through collective bargaining. In PTC, the minimum wage for a general grade A–1
worker is at least Rs.7, 000 per month. This also makes PTC as a preferred employer.
Incentives
Fringe Benefits
PTC being a progressive multinational provides many fringe benefits to its employees.
The fringe benefits available to workers of PTC are explained as under:
Pension
In PTC on attainment of 58 years of age for men and 55 years for women or of
completing fifteen years insurable service, one gets eligible for retirement. But he is
given another option as well. If he wants to continue his job, he is awarded 3 extensions
(Each extension each year) for 3 years more.
Old Age Grant
Old Age Grant is payable in lump-sum at the rate of 50% of the average wages of an
insurable worker for his completed years of service.
Group Insurance
Under this scheme all the employees are insured with ALICO Insurance Company and
also with EFU Insurance Company. Under the former scheme the whole premium is paid
by the company on behalf of the workers. The workers’ heirs are entitled to receive
Rs.20, 000 at the time of worker’s death while he was on the company’s roll. The second
insurance plan EFU is optional. In case of EFU, 75% of the premium is paid by the
company on behalf of the worker while the rest of 25% is contributed by the worker.
Under this scheme the workers are insured against Rs.400, 000/.
Workers who have continued to maintain their commitment to the organization for long
period of time are given long service awards. Eligibility for this award is completion of
25 years of service. The employees eligible for this reward are given Rs.12000/- each as
their reward for their loyalty with PTC. A special party is arranged for this purpose.
• Hajj Scheme
Each year PTC sends seven workers to Mecca for pilgrimage (Hajj). Six of these
members are from Akora Khattak Factory and one is from Leaf Area. Financial
Assistance of Rs.110, 000 is given to each employee who proceeds on Hajj.
Scholarships
Each year Workers’ Welfare Board grants scholarships to academically talented children
of workers. These scholarships are provided to 24 students on merit basis. Maximum of
Rs.400 are granted to post matriculate students and Rs.500 to post intermediate students.
Bonus
PTC gives two types of bonuses to its permanent employees every year.
• Contractual Bonus
• Profit Bonus
These bonuses are declared in the month of January each year but are paid to workers in
March when the audited accounts of the company are declared along with three months
interest.
Employee’s motivation
PTC provides the following benefits to its employees to keep them motivated, confident,
up-to-date and to make them better citizens of the community:
Exit Procedure
Retirement
There is a limit for an individual to do a job. No individual can work throughout his life.
In PTC the age of compulsory retirement is 58 years for workers and managers, first
extension is given at the age of fifty-five years, second at 56, third at 57, subjected to his
performance and medical fitness. The retirement can also be on medical board
examination/ recommendation basis.
Retirement on medical grounds
Any employee, if becomes medially unfit to perform his job satisfactorily, is referred to
the Medical Board. If the Medical Board finds him medically unfit for the job, he is given
retirement on medical grounds.
Discipline
It is the company policy to ensure that the required standards of performance and conduct
are maintained. PTC respects and abides by the rules given under any Labor Law. For a
minor mistake, a worker may be cautioned or summoned by his supervisors not to repeat
the same mistakes or a written warning is given to him or a fine is imposed on him,
which is in conformity with the law. For a mistake of severe nature, a worker may be
Charge Sheeted under the law. The disciplinary procedure is intended only as a statement
of company policy and management guidelines. It does not form part of the contract of
employment or otherwise have contractual effect. There are four stages to the procedure
for permanent. The company reserves the right to initiate the procedure at any stage or to
jump depending on the seriousness of the conduct/performance.
Stage 1
Verbal warning (03 months)
Stage 2
Written warning (06 months)
Stage 3
Final written warning (12 months)
Stage 4
Dismissal
Methods of separation
Resignation
If an employee finds a good job offer elsewhere, better working environment, attractive
salary packages, fringe and other benefits or due to any other reason, and if he/she opts
for separation from the organization, it is termed as resignation. It is a right of a worker
but he/she has to inform his employer one month prior to his resignation from the
organization or one month wages/salary is deducted from him if he does not inform.
PTC is one of those organizations that keep pace with the changing technological
environment. It has recently replaced its old cigarette making machines with modern
machines, which require less manpower to produce more cigarettes per man hour. In
order to reduce the surplus employees, PTC in year 2001 launched schemes to reduce the
surplus employees, called Voluntary Separation Scheme VSS and Special Separation
Scheme SSS. It may be viewed as Golden Handshake or restructuring of PTC.
Any employee opting for separation under VSS or SSS is paid a specific percentage of
his/her salary and other benefits.
Up to 5 years 75%
6 to 8 years 40%
9 to 10 years 36%
11 to 15 years 25%
16 to 20 years 18%
1 to 25 years 15%
Immediate Boss
Solution No Solution
HR Department
Solution No Solution
Labor Court
Solution (FINAL
DECISION)
It is the company policy to ensure that the required standards of performance and conduct
are maintained. The disciplinary procedure is intended only as a statement of company
policy and management guidelines. It does not form part of the contract of employment
or otherwise have contractual effect. There are four stages to the procedure for
permanent. The company reserves the right to initiate the procedure at any stage or to
jump depending on the seriousness of the performance.
Stage 4
Dismissal
Attractive packages
Employees are given attractive packages that they are willing to leave the organization
themselves. Such an environment is made for them in which they are tempted to accept
the proposal and get retreat.
Voluntary Separation
Pakistan Tobacco Company launched two schemes as Voluntary Separation Scheme VSS
and Special Separation Scheme SSS in the year 2001 in order to reduce the number of
surplus employees. In this scheme organization gives a good amount to the employees
according to their job duration in the organization.