HRM @ METRO

Submitted to: Ms. Sonya Omer

Dated:
12
TH
May, 2014

Group Members:
Noukhaiz Aslam
Syed Mohammad Hassan

Awais Ahmed
Abuzar Khan




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Acknowledgement
All praise to the gracious ALMIGHTY ALLAH WHO blessed us with the courage to
complete this project.
This work would not have been possible without the support and encouragement of our
Marketing Management course instructor Ms. Sonya Omer. We express our gratitude
and deep sense of indebtedness for her valuable advices and encouragement, and for
giving us very useful information that helped us in completing this report.
WE must take this opportunity to appreciate co-operation of our fellow students and
friends whose constructive suggestions made it possible for us to conduct this project.
We extend our thanks to all of them for their helping hand whenever needed.











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Table of Contents

1) EXECUTIVE SUMMARY ......................................................................................... 4
2) INTRODUCTION ..................................................................................................... 5
3) HRM in Metro .......................................................................................................... 6
4) ORGANIZATIONAL CHART ................................................................................... 7
5) RECRUITMENT ....................................................................................................... 8
a. Orientation & Induction................................................................................ 9
6) TRAINING AND DEVELOPMENT ....................................................................... 10
a. INTERNAL TRAINING .............................................................................. 10
b. EXTERNAL TRAINING .............................................................................. 13
7) Payroll ..................................................................................................................... 14
a. Employee Benefits & Compensation .......................................................... 14
b. Executive Compensation ............................................................................. 15
8) Leave Policy ............................................................................................................ 16
a. Previlage Leave ............................................................................................ 16
b. Casual Leave ................................................................................................. 17
c. Sick Leave .................................................................................................... 18
9) Performance Appraisal........................................................................................... 19
10) Employee Relations ................................................................................................ 20
11) HR Issue.21
12) References23
13) Appendix..24



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EXECUTIVE SUMMARY
Purpose of the study is to get insight regarding the HR practices at METRO. i.e. How
do they hire their employees, What`s their recruitment cycle, and how do they
compensate their employees for the work performed by them. Also the HR issues faced
by the company and their possible reasons and their solutions to these underlying
problems which METRO was facing. So that we could have a better understanding of the
HR practices when they are implemented in the company.
Recommendations were given considering facts and findings by consulting the HR
manager of METRO Mr. Nayab Baig". Main recommendations revolved around
Recruiting, training, hiring the extrovert people who would be able to adjust in the
culture of METRO.




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INTRODUCTION
METRO is a leading chain of wholesale centers with outlets in several countries of Asia
and Europe. Metro opened its first cash & carry wholesale center in Pakistan in 2007 &
expanded to 5 wholesale centers in a short span of 18 months. In July 2012 METRO and
Metro-Habib combined their wholesale business in Pakistan marking the beginning of a
long-term partnership to the mutual benefit of both companies. The merger allowed
METRO and Metro-Habib to combine resources and gain the financial strength to lead
and grow in a challenging environment and to gain synergies targeted to generate value
for our customers and suppliers alike. Today the company is operating 9 wholesale
centers in Lahore, Karachi, Islamabad & Faisalabad. METRO-Habib Cash & Carry
Pakistan is part of METRO GROUPs sales division METRO Cash & Carry, the
international leader in self-service wholesale.
The company has a simple and efficient business concept: cash & carry, which is defined
through its customer base, both professional and private consumption customers are
allowed to purchase at METRO-Habib Cash & Carry. The core customers are small and
medium-sized retailers as well as hotels, restaurants and caterers. The company offers
business customers a comprehensive product range both in food and non-food.
The mission statement of Metro is,
The distribution of products with excellence in price, quality and variety
to professional customers, and so offering the customer advantages and
opportunities of growth.







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HRM in "Metro"
Metros human resources management is aligned with the strategy formulation and
implementation process. By integrating human resources management into the
planning process, emphasizing human resources activities that support broad Metros
mission goals, and building a strong relationship between HR and management. Metro
has been successful in ensuring that the management of human resources contributes to
mission accomplishment.
The management at Metro recognizes that it is not just financial and technological
capital that provide companies with the competitive edge. Without attracting and
retaining the right people, in the right jobs, with the right skills and training, an
organization cannot succeed. Therefore, at Metro, people have been recognized as the
companys most important asset. This approach of strategic human resource
management at Metro has led to enhanced organizational performance.
Human Resource division is headed by Nayab Baig, who supports and develops METRO
Cash & Carry Pakistan's most important assets-its people. The division is divided into
two major departments:
People Excellence
Organizational Excellence
People Excellence team deals with recruitment, HR operations, reward and retention of
employees. Organizational Excellence team looks after culture, training and
development needs of our employees.


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ORGANIZATIONAL CHART (HR Specific)


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Recruitment and Selection
Mr. Nayab Baig is the senior recruitment & selection Manager at Metro. He is
responsible for all the Hiring being done at corporate Level & also is the authority for
every kind recruitment, selection & layoffs. There are four different categories for Hiring
Hiring on permanent basis.
Hiring on contracts.
Hiring as Part timers.
Seasonal Hiring.
There are different sources of recruitment used at Metro.
Outsourcing
Employment on reference. (both internal & external)
Advertisement in Media. (mostly print)
Walk in Interviews. (encouraged at operational level only)



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Orientation & Induction
The purpose of this section is to ensure the successful implementation of a uniform
procedure for introducing new employees and help the new employees feel part of Metro
Family by providing information and assistance at the time its needed.
It is important that the induction process is consistent to ensure that all new employees
have the same induction experience and receive the same messages. Induction if
implemented effectively has the potential to reduce turnover, absenteeism and boost
morale.

















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TRAINING AND DEVELOPMENT PRACTICES AT METRO
There are three types of employees working at Metro:
Permanent
Contractual
Part time
Purpose of performing training and development processes:
To improve employee relations and soft skills.
To upgrade skills via internal and external training.
To increase work performance.
To skill unskilled and partially skilled employees.
In the department of training and development, there are basically two types of training
being done:
Internal Training.
External Training
Internal Training
There are three major departments at Metro of whose employees are trained.
Commercial
Business Development
Customer development
The commercial sector comprises of the following units
Non food
Fresh food
Dry food


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The major task of the commercial sector is to sell out the product range offered by
Metro. Special training is offered to the employees working under this division by senior
managers belonging to the international chains of Metro. The international senior
managers train the mangers in the Pakistan division of Metro and these managers then
further train their subordinates and other staff who work under the senior managers.
The employees are trained how to deal with the dynamic market, trade market, import
and export details, newly developed opportunities in the market and of any new system
which is being introduced at Metro.
The other staff trained at Metro belongs to the business development and the customer
development department. The sales and marketing executives of business development
unit belong to the head office where as that of customer development department
belong to the numerous stores of Metro. They are trained through the process of in-
house training which is a training program for learning opportunities developed by the
organization in which they are used. Since the training is required to be provided to
employees as part of legislative requirements for industry performance and safety
standards, competitiveness or continuing education requirements.
The staff from the House of Habib is responsible for training the business and customer
development unit and members of the head office (HOH) train all the employees
respectively.
Training New Recruits
The plan is the most important part of training, Metro determines what skills and
knowledge are needed to produce an effective business development professional, and
then it establishes a criterion to include in the training program. Training is an ongoing
process. Internal Training is being done for the betterment of the process at the work
place of Metro. The most important factor in creating a training program is making sure
the proper criteria is being taught




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The training being offered to new recruits includes the following aspects:
Company Knowledge and Company history
What the company sells and to whom
Time management
Organization skills
Reporting
Focus on achieving goals
Selling for the company
Terms and conditions
The above factors are covered in the training program which is usually done by the
respective manager or supervisor who is assigned the responsibility of training the
newly recruited employees on the job under him. He gives the recruited employees an
overview of all the major topics in the categories mentioned above, and of the job
through the process of on the job training under the supervision of Human Resource
personnel.
The first step performed is to have a meeting with the training team and present the
overall goal for training. A private one-on-one meeting is scheduled with each person
within three to five days to go over their specific training program criteria. Detail of
what the management expect them to do is given and different tools of training are used
as well. The training process, however, must be good or it will not achieve its goals.
During the process of internal training, monitoring the process is essential to ensure
that all members of the training team are doing their job effectively. Auditing trainees
within each module until the organization is confident that the training is effective.
Good work habits from training only come when the habits become automatic.
Encouraging staff members to use the newly learned skills is strongly emphasized on at
Metro. Getting involved and, if necessary, being strong about helping people who are
reluctant to change. It takes a stiff backbone to make training pay off.


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If the internal training process is not giving results as expected, Metro reviews how the
training is being done and fine tunes the process to ensure that any holes in the program
are plugged.
Training Permanent Employees
Since the basic training is only provided to the permanent members of the organization
such as the senior managers and managers who then later on train their subordinates.
After each component of the training plan and program is complete, outsourced trainers
or international employees of Metro meet with the managers from Pakistan division and
review all business development personnel to determine who will require what training
module. An employee is assigned to coordinate the dates and times for specific training
modules and then send invitations to those employees who are to attend each module.
EXTERNAL TRAINING
As part of its continuous learning philosophy, Training via Analysis seeks to support
employee training so that employees can fully contribute their talents to achieve TVA's
vision and business objectives. In keeping with this objective, TVA encourages
employees to participate in training activities so they may perform at their highest
potential. This practice establishes the process for all employees who participate in
External Training.
External Training includes training activities such as:
Seminars, workshops, and conferences.
Technical and nontechnical training.
Noncredit courses or activities that lead to continuing education units (CEUs).
Review courses in preparation for a professional exam.
Continuing education activities to maintain certifications or licenses.




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PAYROLL
Payroll and timekeeping clerks perform a vital function at Metro: ensuring that
employees are paid on time and that their paychecks are accurate. If inaccuracies occur,
such as monetary errors or incorrect amounts of vacation time, these clerks research
and correct the records. In addition, they may perform other clerical tasks. Automated
timekeeping systems that allow employees to enter the number of hours they have
worked directly into a computer have eliminated much of the data entry and review by
timekeepers and have elevated the job of payroll clerks, allowing them to perform more
complex tasks. In Metro units that have not automated this function, however, payroll
and timekeeping clerks still perform many of the traditional job functions.
The fundamental task of timekeeping clerks at Metro is distributing and collecting
timecards each pay period. These workers review employee work charts, timesheets, and
timecards to ensure that information is properly recorded and that records have the
signatures of authorizing officials. These clerks also review computer reports listing
timecards that cannot be processed because of errors, and they contact the employee or
the employees supervisor to resolve the problem.
Employee Benefits & Compensation
There are five basic tools being used at Metro for compensation or remuneration.
A base salary
Short-term incentives, or bonuses
Long-term incentive plans (LTIP)
Employee benefits
Perquisites
Employee benefits and benefits in kind (also called fringe benefits, perquisites, perks)
are various non-wage compensations provided to employees in addition to their normal
wages or salaries at Metro. Where an employee exchanges (cash) wages for some other
form of benefit, this is generally referred to as a 'salary sacrifice' arrangement.


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Fringe benefits can include, but are not limited to: (employer-provided or employer-
paid) housing, group insurance (health, dental, life etc.), disability income protection,
retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-
paid), social security, profit sharing, funding of education, and other specialized
benefits.
The purpose of the benefits is to increase the economic security of employees.
The term perqs or perks is often used colloquially to refer to those benefits of a more
discretionary nature. Often, perks are given to employees who are doing notably well
and/or have seniority. Common perks are company cars, hotel stays, free refreshments,
leisure activities on work time (golf, etc.), stationery, allowances for lunch, andwhen
multiple choices existfirst choice of such things as job assignments and vacation
scheduling. They may also be given first chance at job promotions when vacancies exist.
Executive Compensation
Executive compensation (also, director remuneration) is how top executives of business
corporations are paid. This includes a basic salary, bonuses, shares, options and other
company benefits for work on the board of directors. Over the past three years, director
remuneration has risen dramatically beyond the rising levels of an average worker's
wage.
The board of directors is the controlling organ of the company, so responsibility for the
levels of pay for all company employees is ultimately theirs. Pay is just one element in
the wide range of spending and resource allocation decisions by the heads of firms.
Others include investment decisions, which suppliers to use, which business partners to
contract with, how to distribute capital and dividends to shareholders, and so on. While
human resource department at Metro is usually delegated the task of setting pay levels.





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Leave Policy

Objective
This Policy encourages the employees to take break from work as this provides for a
healthy and efficient staff. The leave policy sets out the various types of leaves that an
employee is eligible for and outlines the procedure for taking leave.

Leave Year & Applicability
Leave year is from 1
st
April 31
st
March
The different types of leaves covered under this policy are:
Privilege Leave
Casual Leave
Sick Leave
The policy is applicable for all Permanent employees. Employees who are on
Probation are not covered under this policy. In the event of an employee leaving the
service of the organization by the way of resignation or attaining the age of retirement or
otherwise, except as a result of disciplinary proceedings, he/she shall Not earn Privilege
leave during the notice period that the employee needs to serve, in case of a resignation.
All leaves should be applied in Standard Leave Form available with the company
Minimum of 8 days leave per year by each employee is intended.

Privilege Leave/ Earned Leave

All permanent employees are eligible to avail privilege leave. Privilege leave is calculated
for a period of one calendar year (April- March)




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Entitlement
18 days privilege leave P.A is allowed to each employee. Out of 18 days leave credited for
the year, any un-availed paid leave in excess of 10 days at the end of the year will lapse
automatically. In other words not more than 10 days leave will be carried forward to
next year.
All the employees are required to submit a leave plan to their respective head of the
department stating when he/she intends to take paid leave.
An employee who joins the company other than 1
st
day of April are entitled to earn the
leave in that respective year on a pro-rata basis.
Employees should submit application for leave in the prescribed format, 5 days in
advance to his/her departmental head. Even leave of casual nature needs prior approval

All leave will be sanctioned by the departmental head and sent to the HR department for
records. Paid leave cannot be encashed for more than 10days in any year. The overall
limit on encashment is 10 days only.
In order that we, as employer, respect the much needed employee leisure time,
compulsory paid leave is provided for. Employees must avail a paid leave of minimum 8
days in a year.


Casual Leave:
All permanent employees are eligible to avail Casual leave. Casual leave is calculated for
a period of one calendar year (April- March)
Entitlement:
All permanent employees are eligible for 1-day casual leave at the rate of 4 months
served. An employee is eligible for a maximum of 3 days casual leave in a calendar year.
Half Day CL can be taken as needed. If an employee avails more than 3 casual leave
during the calendar year. Excess leave will be deducted as PL or if PL is not available
they will be unpaid leave.
All leaves should be applied for in advance unless circumstances are such that it is not
possible to do so. In such cases a telephone call or an email to the concerned reporting


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authority or his/her absence to the concerned department, as intimation should serve
the purpose.


Sick Leave:
All permanent employees are eligible for 1-day sick leave at the rate of 4 months
served. An employee is eligible for a maximum of 3 days sick leave in a calendar
year.
If an employee avails more than sick leave during the calendar year. Excess leave
will be deducted as PL or if PL is not available they will be unpaid leave.
All permanent employees are eligible for 1-day casual leave at the rate of 4
months served. An employee is eligible for a maximum of 3 days casual leave in a
calendar year.
Half Day CL can be taken as needed.
If an employee avails more than 3 casual leave during the calendar year. Excess
leave will be deducted as PL or if PL is not available they will be unpaid leave.
All leaves should be applied for in advance unless circumstances are such that it
is not possible to do so. In such cases a telephone call or an email to the
concerned reporting authority or his/her absence to the concerned department,
as intimation should serve the purpose.













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Performance Appraisal
Performance appraisals are a regular review of employee performance within Metro.
Generally, the aims are:
Give feedback on performance to employees.
Identify employee training needs.
Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administrator.
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
METRO Management Planning (MMP) is a unique tool used to establish a culture of
feedback METRO. Every Year through MMP reviews, vertical and horizontal
potential is identified and exposed to the following development centers at various
levels after having two years in the same position.
Regional Development Center (RDC):
This is held two times in a year with 12 Participants each time. A team of 6 Assessors
who are members of the local management board give the Development feedback to
employees.
International Development Centre (IDC)
This is held 3 times in a year with 12 Participants each time. A team of 6 Assessors
who are Members of the Executive management board & MDs Assessors who are
Members of the Executive management board & MDs, Metro Pakistan under the
supervision of METRO Asia is also undertaking the following special initiatives to
provide cutting edge knowledge to its executives.



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Apart from the initiatives mentioned above there are at all times various local programs
and initiatives in place for the development and assessment our employees at all levels
and at all locations.




Employee Relations
Employee Relations at Metro involves the body of work concerned with maintaining
employer-employee relationships that contribute to satisfactory productivity,
motivation, and morale. Essentially, Employee Relations is concerned with preventing
and resolving problems involving individuals who arise out of or affect work situations.
Advice is provided to supervisors on how to correct poor performance and employee
misconduct. In such instances, progressive discipline and regulatory and other
requirements must be considered in effecting disciplinary actions and in resolving
employee grievances and appeals. Information is provided to employees to promote a
better understanding of management's goals and policies. Information is also provided
to employees to assist them in correcting poor performance, on or off duty misconduct,
and/or to address personal issues that affect them in the workplace. Employees are
advised about applicable regulations, legislation, and bargaining agreements.
Employees are also advised about their grievance and appeal rights and discrimination
and whistleblower protections.






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HR ISSUES
Major Issue:
The major challenge and issue faced by METRO was the leadership problem. The
amount of leadership was rarer than the average. The company was highly dependent on
those old leaders who have worked in the organization for several years, adapted
themselves according to the METRO`S culture; but they were unable to transfer their
leadership characteristics to the current management and nurture them.
Most of their employees are young and who have been into the organization for just
three years and therefore it becomes difficult, to adapt themselves according to the
METRO culture. Secondly the employee retention rate is low therefore it becomes
difficult for the organization to transfer their culture from old employees to the up
young ones.
Solutions:
Extensive training of staff regarding leadership and management issues.
Formation of cross divisional teams to share the cultural experience.
Provisional hiring of about six months, observe the employees behavior and look
if they could fit in the METRO culture.
During interview look for the people who are familiar with the METRO culture
and could adjust in it.
Recruit the people who are extrovert and are open to the experience.

Conclusion:
The main issue faced by METRO was the leadership problem and the employee
retention. METRO was unable to transfer their leadership characteristics to the current
management and nurture them. Secondly they were unable to grow and develop their
own leaders and management which was one of their core objectives.


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The solution/conclusion to this problem could be extensive and regular training of the
employees thus making them familiar with the METRO culture. Secondly in order to
retain the employees METRO should provide them good packages and involve them in
decision making process of the company. Thus making an creative and an fair
organization to work in.


















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References
http://www.metro.pk/
http://metro.rozee.pk/index.php?pg=index
http://www.slideshare.net/CristianPistol/metro-4728567
http://www.scribd.com/doc/78114642/Metro-Cash-and-Carry-Pakistan