HUMAN RESOURCE MANAGEMENT

PRACTICES AT
SHAN FOODS (PVT.) LTD.

Group Members:
 Muhammad Numair (1838)
 Hassan Nasir (2504)
 Muhammad Suhrab (1895)
 Danish Barolia (1726)
 Hammad Ali (1488)

Submitted to:
Mr. Salman Abbasi
HRM PRACTICES AT SHAN FOODS (PVT.) LTD.

ABSTRACT
This is a group project assigned by Mr. Salman Abbasi for the course of Human Resource
Management. The objective was to visit any well reputable, large scale organization and
Analyze the HRM functions on these lines; Recruitment, Selection, Training, Appraisal, and
Compensation. For the purpose, we have chosen Shan Foods.

Following report contains a brief description of HR practices at Shan Foods and the findings
collected and analyzed from the project questionnaires.

A group photo with Assistant Manager HR at Shan Foods (Pvt.) Ltd.

LIMITATIONS
Firstly, we decided to go KSE but due to their non-serious and delaying tactics, we had to
abandon it. Then we opted for Amreli Steels but they also gave us appointment of Tuesday,
which is really late as we have to present this report on Friday to our instructor. So, finally we
stuck on Shan Foods (Pvt.) Ltd but we came to know that their senior manager HR has just
resigned few days back but we successfully managed to have a meeting with their Assistant
Manager HR who was temporarily working as Manager HR, on Monday 04th May, 2015.

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ACKNOWLEDGEMENT

We would like to express our special thanks of gratitude to our instructor, Mr. Salman Abbasi
who provided us the golden opportunity by assigning us this knowledgeable project of
Human Resource Management, which also helped us in doing some research, related to the
topic and we came to know about so many new things and concepts. We are really thankful to
him.
We would like to thank the staff of Shan Foods (Pvt.) Ltd particularly their Assistant
Manager HR, Mr. Tariq for their help and cooperation, the knowledge they provided to us
and most importantly, allowing us to visit their organization on a very short notice.

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LETTER OF TRANSMITTAL

Iqra University

North Nazimabad, Karachi-74600, Pakistan

Tel: 36723220-6

Http://www.iqra.edu.pk/iunc

May 08, 2015

Dear Sir,

This is the final project report of Human Resource Management course which was assigned
to us by you. The objective of this report is to find out the HR practices and analysis of Shan
Food’s (Pvt) Ltd.

The report has been completed after the perpetual hard work, determination and devotion of
past few weeks.

If you have any additional questions, we would be pleased to answer them.

Yours sincerely,

Muhammad Numair (1838)

Hassan Nasir (2504)
Muhammad Suhrab (1895)
Danish Nazimuddin (1726)
Hammad Ali (1488)

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TABLE OF CONTENTS
Introduction to Shan Foods 6-8

Overview of HR department of Shan Foods 9

Overview of AM HR of Shan Foods 10

Mission statement of HR department of Shan Foods 10
Goal of HR department of Shan Foods 10

HR PRACTICES

 Mechanism of Job Analysis 11

 Job Evaluation 11
 Recruitment 12
 Strategies for hiring Senior/Mid/Entry level employees 13
 Selection Process 13-15
 Equal Opportunity Employment 16
 High/Low Risk Employees 16
 Training System at Shan 16
 Career Plans for Employees 17
 Motivation System 17
 Compensation 17-18
 Succession Planning 18
 Performance Management 18
 Retention Issues 19
 Turn Over Ratio 19
 Resignation 19
 Retirement 20
 Re-Hire of Formal Employees 20
 Alignment of HR Dept. with company’s strategy 20
 Status of HR 20
Conclusive Analysis 21

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INTRODUCTION TO SHAN FOODS

Shan Foods (Pvt.) Ltd is a leading name of food industry in Pakistan operating all over
Pakistan as well as having globally appreciated products.

The journey of Shan’s remarkable success started from 1981, when a visionary entrepreneur,
Mr. Sikander Sultan, CEO Shan Foods (Pvt.) Ltd, helped pave the way to success by
pioneering in the spice business. Today Shan Foods stands as one of the most reputed food
company and a powerful global brand with presence in more than 65 countries across 5
continents.

Revitalizing existing business, entering new ones, manufacturing high quality products and
expanding into foreign markets are among the initiatives the company has undertaken with
success. Looking to expand its product line, Shan continues to introduce new products that
better caters to the changing needs of the consumers. In order to take advantage of growth
opportunities, Shan has now expanded its production capacity even further with
manufacturing units installed in UAE, Saudi Arabia, United Kingdom and USA. The
company now also harbors offices in Sharjah- UAE, Makka- KSA and Manchester- United
Kingdom.

Shan is truly an example of a progressive Shariah Compliant business where Shariah guides
the business operations and values remain consistent. These values are embraced by its
people and have played a major role in Shan’s success to date and will continue to do so in
future. Shan does not offer products only; it provides an indulging and delightful food
experience that is JUST PERFECT!

COMPANY’S PROFILE
Business : Manufacturing and Marketing of Food Brands

Management Staff: around 360 & Non-Management

Employees :
Staff: around 281

Labor : Approximately 1000

374 distributors within Pakistan, 60 distributors across 45

Distribution network :
countries

HEAD OFFICE – Plot 29, Sector 23, Korangi Industrial

Head office :
Area, Karachi, Pakistan.

Manufacturing facilities : Pakistan, UAE, Saudi Arabia and United Kingdom.

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VISION
To be a consumer oriented company with keen insigne of food products ensuring quality
panty consistency and authentic taste to operate with state of the art technology to obtain
optimum results and retain highest quality standard thrived efficient and motivation human
resource and inculcate in them a sense of participation and proved for personal goals and
development.

MISSION

 To produce and market food products having quality standards much higher than set
internationally.

 To provide products of the highest quality at the least chargeable profit.

 To put the name of PAKISTAN as a hall mark of quality in food products among the
international community.

 To satisfy the needs of all stake holders in a just and equitable profit sharing.

 To ensure Shan products are in every kitchen / house holds all over the world.

CORE VALUES
 Being honest, fair and ethical with all stakeholders.
 Caring and actively contributing to the community in which they operate.
 Believing in truth, trust and team work. Promoting a creative environment, where
people have the opportunity to grow, dare to take risks and work with passion.
 Honoring their commitment. They set new benchmarks for the industry by going the
extra mile and delivering superior value to their consumers and stakeholders.
 They delight their consumers by offering innovative and exciting food solutions by
reaching out to them wherever they are, to meet their current and emerging needs.
 Actively seeking opportunities to reward & recognize their winning teams and
celebrate our success.
 They strictly comply with all Shariah laws and remain conscious of it in every sphere
of business.

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CORPORATE SOCIAL RESPONSIBILITY

 Sahar Press Release

As a socially responsible organization of Pakistani, Shan Foods (Pvt.)
Ltd is always willing to give back to the community and this glorious
nation. Pursuing this commitment, Mr. Ganatra (COO), Shan Foods
(Pvt.) Ltd. has launched SAHAR, an initiative which aims to further
Human Resource Advancement in the rural areas of Pakistan.

SAHAR specially aims to engage with the youth, enhancing their career potential and
helping them build and fortify the country’s future workforce. This way Shan Foods is
leading a positive change ensuring that the nation reaches greater heights.

 Noor Press Release

With the mission in mind, Shan Foods recently launched an initiative to
“Enlighten Shan for an Educated Pakistan” under the name of “Noor.”
The purpose of this initiative is to enlighten and education the
underprivileged employees of Shan and grant them an opportunity to
receive quality education so that they are able to learn new skills to
make literate, and take smarter decisions in life.

ACHIEVEMENTS
 Superior Taste Award from iTQi 2013
 PAS AWARD 2010, 2011, 2013- Foods Category.
 Best Export Performance Award 2003-2004, 2004-2005, 2005-2006, 2006-2007,
2007-2008, 2008-2009, 2009-2010, 2010-2011, 2011-2012, 2012-13 from FPCCI
(The Federation of Pakistan Chambers of Commerce & Industry)
 Superior Taste Award 2009-2010, 2010-2011 and 2011-2012 from iTQi (international
taste and quality intuition, Brussels.)
 Brands Of the year 2012-2011
 Consumer Choice Award 2008-2009, 2009-2010.
 Best Export Performance Award 2003-2004 and 2007- 2008 from KCCI (Karachi
Chamber of Commerce & Industry.)

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OVERVIEW OF HR DEPARTMENT AT SHAN FOODS

The Human Resources (HR) Department develops initiatives and provides strategic support
to SHAN FOOD’s Management with regard to human resources policy. It supports line
management in the departments, performs centralized service tasks, and ensures application
of operational human resources activities. Main areas of responsibility include manpower
planning, organizational development, employment and association conditions, recruitment,
job classification and salary administration, performance appraisal, advancement, internal
mobility, training and development, social services, social security, working conditions,
settlement of disputes and relations with the personnel. When employees sense a well-
documented plan of human resources management, they do not feel threatened by
inconsistent structure or an absence of discussion about advancing skills and reaching new
goals. Human resources conquer factors that challenge management by ensuring: legal
compliance in hiring, compensation, training and communication.

The objective of human resources is to maximize the return on investment from the
organization's human capital and minimize financial risk. It is the responsibility of human
resource managers to conduct these activities in an effective, legal, fair, and consistent
manner.

Human resource management serves these key functions:

1. Recruitment
2. Selection
3. Training and Development
4. Performance Appraisals and Management
5. Promotions
6. 6. Industrial and Employee Relations.
7. Record keeping of all personal data.
8. 8. Compensation, pensions, bonuses etc. in liaison with Payroll
9. 9. Confidential advice to internal 'customers' in relation to problems at work

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OVERVIEW OF ASSISTANT MANAGER HR OF SHAN

FOODS (PVT.) LTD.
Mr. Muhammad Tariq is Assistant Manager HR at Shan Foods Private Limited, having a first
class Master degree in MPA- HR from University of Karachi and having 09 years’
experience in HR management at different positions.

At present he has been working as “Assistant Manager HR” in the prestigious organization
Shan Foods (Pvt.) Limited since Mid-2006.

His expertise are;

HR Operations, Compensation & Benefit, Payroll, HRIS, Administration, Recruitment &

Selection, HR Budget, Salary Surveys, HR Policies and Manual, Talent Management,
Training and Development, Performance Management System, Staffing, Policy making,
Compensation Surveys, Employee's Counseling, Feasibility Reports.

MISSION STATEMENT OF HRM DEPARTMENT OF SHAN FOODS

The mission of the Human Resources Department of Shan Foods is to provide the
information and support needed to hire, develop, and retain qualified employees who model
organizational values and contribute to the attainment of the organization goals; to maintain
employee-employer relationships which are legal, ethical, productive, and positive; and, to
protect the district’s employees, property, and finances from avoidable loss.

HR DEPARTMENT GOAL
The goal of this department is to insure compliance with all mandated requirements,
maintaining good employee relations through fair and equitable treatment of all employees,
and encouraging an environment in which employees can maximize their potential, resulting
in a higher level of service to the organization.

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HR PRACTICES

MECHANISM OF JOB ANALYSIS

Job analysis is done subsequently by the line managers, heads of the departments and the HR
department. The job is completely analyzed on the basis of activities and responsibilities
involved and attributes or job requirements needed to perform the activities. The job analysis
are done by keeping in sight the functional or duty areas of a position, tasks, the basic
requirement for the job and the basic training to do the job. The job description and job
specifications are subsequently made and analyzed by line managers, HOD and HR
department which in turn helps hire the right quality of workforce for the company.

Another purpose of job analysis is later improvements, regarding performance appraisals,

selection systems, promotion criteria, training needs recognition, compensation plans etc.

The job analysis at Shan Foods aims to answer questions such as:

 Why does the particular job exist?

 What responsibilities does the worker undertake?
 How does the worker perform the job?
 Within how much time the job needs to be performed?
 What qualifications, skills, techniques and characteristics are needed to perform the
job?

JOB EVALUATION
Job evaluation is conducted by HR department determining the value and worth of a job. This
allows them to identify the highly responsible and tougher jobs so that they can set the
compensation package of an employee according to the nature of the job. Without job
evaluation, there is a threat of employees’ job dissatisfaction which can result in deterioration
in employees’ performances.

At Shan, jobs are arranged from highest to lowest, in order of their value, level of
responsibilities and the relative difficulty in performing them. Compensation packages are set
according to the ranking of the job as highest being most difficult and highly paid and lowest
being simplest and less paid.

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RECRUITMENT
CREATION OF VACANCY:
The vacant positions are usually assigned to the existing employees for the purpose of
replacement or promotions etc. But still there is a good amount of budget allocation for the
new vacancies at the end of every year which allows the HR department to create some new
vacancies for external recruitment.

The vacancies are created by the decision making of line managers of the departments, head
of the departments, HR manager and CEO regarding the need and necessity of the new
vacancies. New vacancies are created on the basis of termination, expansion etc.

PHASES OF RECRUITMENT
Phase 1: Identify Vacancy and Evaluate Need

The company first identifies and evaluates the need and necessity of the new vacancy and
internal replacement. The decision making is done with the collaboration of HR manager,
line managers, Heads of the departments and CEO keeping in sights the objectives and
strategic goals, budget allocation and job analysis.

Phase 2: Applicant Generation

In this phase of recruitment, the company decides the applicants to target in the search. More
specifically, what type of applicant would they like to attract to their organization’s open or
vacant positions for example, entry-level or experienced. The open positions are generally for
the non-experienced and entry-level applicants at Shan Foods as they prefer referrals for the
vacant positions which require replacement. Sometimes, for some new openings, the services
of headhunters are also availed for recruitment depending on the nature of job.

Phase 3: Maintaining Applicant Status

During the second phase of recruitment, the company is primarily concerned with
maintaining the applicant’s interest in the job and the organization so that the applicant will
accept the job offer.

Given the goals of both the company and applicant, the initial recruiter-applicant contact is
considered very important. First impressions revolve around the recruiter judging the
applicant and the applicant’s reaction to the recruiter’s attitude and behaviors. For this
purpose, numerous interviews depending on the nature of the job are held with HR manager,
line manager of the concerned department and finally with the Head of the department.

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STRATEGIES FOR HIRING SENIOR/ MID/ ENTRY LEVEL

POSITIONS
The senior and mid-level positions are filled using internal recruitment system and previous
employee on that position is replaced with another employee of the company. Entry level
openings are comparatively lesser at Shan Foods and for the purpose of hiring entry-level
employees, Shan gives job ads online and in newspapers, consider recommended applicants
of existing staff and avails services of headhunters.

SELECTION PROCESS
Review of Applications
a) Applications are reviewed by the HRD and suitable candidates are selected for the
departmental consideration.
b) Applications are reviewed by the Department concerned.
The department concerned and the HRD select those candidates who are to be called for an
initial interview by the HRD.

Preliminary Interview
 Candidates are screened by the HRD
 Appropriate tests are administered as mentioned below.
 Results of screening and tests are shared with the Department concerned
 Candidates for further interviewing are chosen on the basis of this screening
and testing.

Testing
The successful applicants may be asked to take selection tests in order for the organization to
assess applicant’s knowledge, skills, abilities and demonstrated capabilities relevant to the
job requirements.

Group HR will coordinate with the department the design and related elements (grades
applicable, test environment, checks and reviews, follow through with results vs. on the job
performance) of the tests.

Results of tests will be compiled and maintained in Human Resource department and will
remain confidential.

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The kinds of test measurements obtained and the questions that help to answer are:

Intelligence
- Can the candidate learn to do the job?
- Will he be expected to progress to higher job?
- Can he be expected to progress to higher job?
- Will he show sound judgment in crucial situations?
Educational Achievement
- Does the candidate have the basic education upon which is build?
- Does his/her achievement conform to his/her years of schooling and intelligence?
- Does his/her achievement show that he/she is highly motivated?
Attitudes
- Does he have the attitude, opinions and personal history that have been shown to be
characteristic of our successful employees?
- Does his judgment about himself and other people agree with the principles of Human
Relations practiced in the Company?
Job
- Does he know the principles and theory of his craft?
- Does he know the standards of practice of his craft?

Passing scores are determined by considering:

- The content of entrance training programs.

- The job requirement, present and future.
- The number of applicants.
- The status of the applicant’s present, former or new employer.

Final Interview
The candidates are short-listed by factory HR Manager against the requirements of the job
description and called in for interviews in consultation with the Department Head.

Interviews for Managers and above are conducted by the Chief Executive with facilitation
from the Group HR Department.

Interviews for all other positions are conducted by the General Manager in consultation with
the Factory Manager/ Department Head with the facilitation of HR department.

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Reference Checks
Reference checks are conducted for all qualified and selected candidates by the HR
Department. Reference Checks can reveal information about an applicant’s behavior with
prior employers that could be critical to your decision.

Medical
The purpose of the medical examination is to determine and evaluate the general health status
of the applicant as it is related to his ability to perform the job for which he is applying.
Appointment letter is issued only after the candidate has been found fit for the job applied
for.

Only successful candidates are asked to undergo the medical test, which will consist of a
blood test, chest x-ray and a urine test. The cost of the medical examination is borne by the
organization.

Appointment
On acceptance of “Offer Letter/Sheet” by the candidate, the HRD finally issues the
“Appointment Letter” signed by the Director for all Management employees and the by
Manager for all Non-Management employees and returns it to the HRD for further
processing.

Probationary Period
The appointment for a probationary period is as follows:

- MANAGEMENT Employees : 6 months

- NON-MANAGEMENT Employees : 3 months

On successful completion of the probationary period a “Confirmation Letter” is issued by

HRD, which is duly signed by the concerned Director/Manager, Employees will become
members of the Provident Fund only on confirmation of the employment.

Replies to other candidates

All other candidates who were called wither for initial interviews or any other interviews are
sent replies by the HRD thanking them for their cooperation and telling them that the position
has been filled.

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EQUAL EMPLOYMENT OPPORTUNITIES

Shan Foods (Pvt.) Ltd provides equal employment opportunities on pure merit system
irrespective of gender, race, religion, ethnicity, origin etc.

There is a general perception regarding Shan Foods that their organizational culture is
extremely religious and most of their staff strictly follows the religious values of a specific
religious sect. There is also a perception about Shan regarding discrimination on the basis of
gender that they don’t hire female staff because of religious extremism. By visiting the
company itself, we observed that the general perception is not absolutely correct and there are
equal employments opportunities for all as there is are female staff in the company, non-
Muslims are working in the company and employees belonging to Hindu religion are
provided with specially made vegetarian food for them. The general staff there was casual
and there was no sign of religious extremism. Although, because of being Shariah compliant
organization, the company completely stops its operation at Prayer breaks and car allowance
are given to employees through Islamic Ijara system.

HIGH/LOW RISK EMPLOYEES

There is no such formal classification of high and low risks employees at Shan Foods Ltd and
according to them; each and every employee is important to them whether they are of
managerial or non-managerial level. Although, like any other organization, there are some
employees whom the company cannot afford to lose at any cost and for the purpose of
retaining them, the company provides them with extraordinary salary packages, allowances
and other perks and privileges.

TRAINING SYSTEM AT SHAN FOODS

They have built an institution named ‘Shan Centre for Excellence’ where Training Sessions
are conducted for development of Technical and Managerial Competencies. The HRM
department at Shan Foods provides extensive on job training to its employees both internally
and externally on regular basis according to their respective job areas. The training system is
proper and transparent and every employee gets extensive training according to his
performance rating and job evaluation.

Necessary training is also provided to employees before promotions, transferring and external
projects to cope up with the changes in environment and increment in job responsibilities.

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CAREER PLANS FOR EMPLOYEES

Shan Foods is not an extremely formal organization like MNCs, therefore there are no such
visible career plans for the employees. Unlike big MNCs, Shan doesn’t inform its employees
regarding their career path and promotional limits or time periods.

The promotions and postings to other countries in which the company is operating are done
on the basis of performance and willingness of the concerned leadership. Shan doesn’t
provide clear lines of career planning to its employees. Although, there is rapid career growth
at Shan and on job trainings are provided to the employees to excel their career but still there
is no formal and fixed way of career planning at Shan.

MOTIVATION SYSTEM
There is a proper motivation system at Shan Foods Ltd. They have certain criteria for every
job and they rate the performance of their employees on the scale of 1 to 5 (1 being “needs to
improve” and 5 being “excellent performance”.) The increments, promotions and other
monitory benefits and incentives are given to the employees based on their performance for
the responsibilities which are quantifiable while non-monitory awards are given for good
conduct, dedication at work, punctuality and loyalty towards work and organization.

Surveys are conducted within the organization asking employees regarding the job
satisfaction and other motivational aspects promising them complete confidentiality
regarding their identity. In case of negative response from the employees, necessary steps are
taken to overcome their complaints to keep them satisfied and motivated at work and .
Besides that, several motivational programs and promises for opportunities are used to
motivate employees.

COMPENSATION
The compensation policy at Shan Foods is not strategic. Although they offer market
competitive salary, perks and privileges but their employees do not have clear vision
regarding their future salary increments and allowances on the basis of inflation and
economic forecasts. There is not a concept of “Salary Banding” so the compensations are
equal for the jobs having same workload and responsibilities according to their classification
irrespective of departments.

Because of the absence of strategic compensation policy, Shan Foods has faced serious
retention issues from their sales department and they had to revise their pay scale to
overcome that issue.

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BENEFITS FOR THE EMPLOYEES

Besides market competitive salary, the company offers various incentives and allowances to
its employees like bonuses, GP fund, medical allowance, car and fuel allowance etc.

The salaries of employees are reviewed and revised time to time against inflation and
economic conditions of the country.

BENEFITS ON SEPARATION
The Company endeavors to maintain a well-balanced program of employee benefits that is
financially sound and will confer benefits principally in recognition of long services.

The Principle features of these benefits are mentioned hereunder.

 Provident fund
 Gratuity fund
 Pension
On Termination due to “Misconduct” no gratuity shall be payable.

SUCCESSION PLANNING AT SHAN FOODS

Shan Foods doesn’t focus much on succession planning. According to Mr. Tariq, Assistant
Manager HR, there was a formal action plan made for succession planning few years back
but the top management of the company didn’t find it much effective, appealing and
beneficial and the keeping in sight the possibility of politics between company’s employees,
the concept of succession planning was not focused upon anymore.

PERORMANCE MANAGEMENT AT SHAN FOODS

Shan foods greatly emphasizes on performance management as they know the importance of
capable employees in the organizational progress. Performance of employees is monitored on
regular basis and appraisals are given to them annually regarding their performance. The
rating is done on the basis of bell curve. Performance appraisal is objective based at Shan
Foods (Pvt.) Ltd.

Employees performing well are given additional benefits along with additional
responsibilities and targets. Low performing employees are counseled and necessary trainings
are provided to them to let them overcome their weaknesses. Besides that, extensive on job
trainings are provided to the employees on regular basis to enhance their performance.

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RETENSION ISSUES
According to Mr. Tariq, Assistant Manager HR, they were facing serious retention issues
from sales department previously. The reason behind subsequent resignations was the salary
and compensation packages which, according to the sales people were not enough to prevent
them joining other organizations.

Though, the HR department was not facing such issues with other departments but necessary
steps were taken and pay scales for all the departments were revised to retain the employees
and now they are free from such retention issue.

The HR department does not instantly accept resignations from capable employees and tries
to retain them by overcoming the reason for resignation to some extent. The resignation is
only accepted if the employee doesn’t want to get retained even after efforts of HR
department for retaining him/her.

TURNOVER RATIO
The turnover ratio at Shan Foods is not alarming for the Human Resource department
because there is no culture of firing until and unless it becomes too necessary. Moreover, the
job satisfaction level and compensation packages are good enough to retain employees. The
brand name and company reputation also allows them to retain employees as employees feel
their jobs securer and their status higher working in a company like Shan Foods Ltd.

Although, there was a noticeable turnover ratio previously because of employees’ preference
of working in MNCs over working in a local based organization. But the issue has been
terminated ever since Shan Foods has expanded its production capacity even further with
manufacturing units installed in UAE, Saudi Arabia, United Kingdom, USA and setting up
harbor offices in Sharjah- UAE, Makka- KSA and Manchester- United Kingdom. This
enormous expansion has allowed them to retain employees even better.

RESIGNATION
All employees, upon resignation acceptance will be scheduled for an exit interview. Refer to
Exit Interview Form. HR will conduct an exit interview for employees placed in managers
and above category. For all other positions the concerned factory manager will conduct the
Exit interview.

Findings of the Exit Interviews will be compiled by HR Managers and forwarded to Group
HR Manager for onward review with management for corrective actions wherever required.

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RETIREMENT
Retirement age for all male employees is 60 years and female employees are 55 years.

Human Resources will issue all related correspondence to employee 1 month prior to
retirement

RE-HIRE OF FORMER EMPLOYEES

Rehiring of former employees can take place with the organization. In such cases, HR
Department will request recommendation of (previous) Department Head before forwarding
the case to the General Manager and Chief Executive.

The General Manager and Chief Executive will have the authority to approve/reject the
rehiring of the employee.

ALLIGNMENT OF HR DEPARTMENT ON ORGANIZATION’S

OVERALL STRATEGY
Strategic HR planning is one of the most important components at Shan Foods as they
consider the strategic HR planning as a core component in achieving organizational
objectives and strategic goals. The HR policies at Shan Foods are completely aligned with
company’s overall strategy and maintaining a pre-defined organizational culture like strict
Shariah compliance, decentralized decision making to some extent, informal means of
communication between managerial and non-managerial staff, employee empowerment etc.
The HR department, as per company’s policy primarily focuses on internal recruitment, merit
based selection, attractive and market competitive salary and compensation packages for
employees and fair wages to the labor as per government’s instructions, retirement plans etc.
All these factors align HR policies with organizational strategies assisting actively and
playing immense role in achieving strategic goals of the organization.

STATUS OF HUMAN RESOURCE MANAGEMENT DEPARTMENT

AT SHAN FOODS
The status of HR department at Shan is moderate. The HR department influences the
employees work and management’s decision to some extent but not at full. There are clear
lines of authorities for each department and maximum authority is given to the departmental
line managers as they are directly supervising the staff. Although, the HR policies are strictly
followed within the organization and every employee of every level has to comply with those
policies.

Shan Foods doesn’t have any visible talent acquisition system in place as they primarily focus
on internal recruitment and replacement for the vacant jobs and entry-level openings are
comparatively lesser at Shan Foods.

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CONCLUSIVE ANALYSIS OF THE HRM DEPARTMENT OF SHAN

FOODS
The human resource management department of Shan Foods is one the most influential and
powerful departments of the company. Although, the department has clear lines of authority
but still it has an influential role within the organization.

The HRM department of Shan Foods consists of well qualified and professional staff with
highly ethical working methodologies and effective system of recruitment, selection, training
and compensation. They value their employees and consider them as an organizational family
maintaining friendly and motivating organizational culture and informal means of
communication for better coordination. Although, there is still some capacity for further
improvement regarding clear and visual career planning of the employees.

At Shan Foods Pvt. Ltd, the recruitment is purely rational and requirement based, selection is
merit based with equal employment opportunities, training is extensive and compensation is
market competitive, fair and attractive. Although, they have faced some retention issues in
the past but due to the absence of strategic compensation policy. They have overcame it by
revising their pay-scale and now they are very successful when it comes to employee
retention. Their effective performance management and alignment with company’s overall
strategy have made them a successful and reliable department of the organization.

Human Resource Management Page 21