EXECUTIVE SUMMARY

The leading local name of the freight forwarding company is DLI that we choose for our project

work. In 1997 it became a PVT Company with more than 800 headcounts working till now.

After two decades now they are expanding their business not only in Pakistan but also

internationally.

The objective of this project is to identify the current issues of HRM at DLI. The gaps in the

processes of HR cause costs and affecting the profitability of the company and also effecting

competitiveness in the market. The current logistics Industry required highly technological

implications and systematic approaches to get a competitive edge to meet market needs. As

CPEC will give more opportunities to Logistic sector to grow more and so DLI,therefore it will

require highly competent workforce in companies and to meet the challenge DLI’s HR

department must work strategically to contribute towards company’s objective and goals.

Regardless of the honest and genuine efforts, there were many limitations thatwe faced. The

major constraint was time, the respondents’ attitude or perception of bias may also be a hurdle.

And the Sample size of the project was not large which a constraint.

The problems were identified through the Interviews conducted at DLI with CEO, HR Manager,

Departmental Heads, and five junior level employees. We had made sure that the respondents of

our project are relevant and as appropriate as possible to our project. A set of interview questions

were prepared and approved by the supervisors that were asked.

The problems were identified are Inadequate Hiring & Selection Process, Insufficient &

Irrelevant Training and Development,Organogram and JD Inaccessibility, Inappropriate Process

of Performance Evaluation and Appraisal and Inappropriate Compensation and Benefits

Management. We had given suggestions and recommendations that will help the HR Department

and Top management to improve their HR processes.

 1. INTRODUCTION

1.1 The Firm, History, and Background

1.1.1 About Company

Dynamic Logistics International (DLI) is the leading freight forwarding company started as a

customs brokerage house in 1986 in Karachi, Pakistan. The close associations and confidence

bestowed on DLI by the customers encouraged the management to venture into a broader service

scope and thus Dynamic Logistics International was formed as Private Limited Company 1997.

The Vision of DLI is “To Offer Reliable and Integrated Logistics Solutions.” And the Mission

statement is “To provide Top quality to our customers with cost-effective solutions and

operational excellence to meet and exceed their growing business needs through the use of

modern technology and committed team members.”

DLI has over 800 headcounts working and the company hasa turnover of APPROX 3 Million

annualy. DLI has its offices Nationwide. Its Head office is in Karachi, whereas other offices are

in Islamabad, Peshawar, Faisalabad, Sialkot, Lahore, Multan, and Gwadar. DLI also has offices

Internationally in Dubai and Afghanistan.

The following worldwide network and affiliations DLI have:

 IATA: The International Air Transport Association

 FIATA: The International Federation of Freight Forwarders Associations

 IASA: International Air &  Shipping Association

 ACAAP: Air Cargo Agents Association Of Pakistan

 PIFFA: Pakistan International Freight Forwarders Association

 TPF: TPF is a Forwarding Network

 WCA: World Cargo Association

 5 Star Logistics Network

1.1.2 Key Executives

Following are the Top management and key Strategic persons of DLI:

1- Mr. Irfan Ahmed Faridi: Group Chief Executive Officer (CEO) and founder of DLI.

2- Mr. Shoaib Ahmed Faridi: Chairman

3- Mr. Qamar Abbas Zaidi: Chief Executive Officer (CEO)

4- Mr. Tahir Ali: Chief Financial Officer (CFO)

5- Mr. Imran Akhtar: Director

6- Ms. Unaiza Syed: HR Manager

1.1.3 Services

DLI provides a wide range of affiliated logistic services not confined to just transportation but

also includes pre-carriage from vendor or shipper at the place of loading, export/import

consolidation, competent assistance in export/import customs clearance and ware housing.

 Custom Brokerage Services (Import and Export Customs Clearance, Fast Track

Clearance, E filing, etc)

 Door Deliveries Services

 Freight Collect Services

 Delivery Order Services

 Inland Transportation Services

 Ocean Freight Services (Booking and Processing, Port Handling, Vendors

Documentation, and Compliance, Insured of Bill of Lading, FCL Contract Management

consolidation, Pre Alerts and more)

 Air Freight Services (Consolidation, Airport Handling, Documentations and Processing,

Track and Trace Pre alerts and Clearance and Delivery at both ends.)

 Warehousing and Inventory Management Services (Bonded Warehouse, Repacking, and

Palletizing)

 Vehicle Operating Lease Services

 Fleet and Distribution Management and other more.

 Specialized Transshipments (Movement of Oversized cargo/Projects, Afghan Trade and

Cross Borders)

Around 7000 jobs of Export clearance and 1500 jobs of Import clearance had been

accomplished. Moreover, the Average annual volume of ocean freight is 4000TEUs in Export

Ocean freight and 7000 TEUs in Import Ocean freight. The average annual volume of Air freight

is 200MT in Export air freight and 450MT in Import air freight is a great achievement.
1.1.4 Major Clients and Business Partners

DLI has major stakeholders of Pakistan on board e.g. Geo, Jung group, Karachi Electric, PSO,

Meezan Bank Ltd, Nokia, Telenor, UNICEF, EVA, Trimo, PakLibya, Mobilink, Rajby Textiles

and Industries, Huawei, Lucky Cement, and more others.

DLI is providing Vehicle Operating Lease services to companies like K-Electric, Mobilink, Jung

Group and Jazz and have provided 300 vehicles up till now. Whereas Custom clearance and

freight services and being provided to companies such as Rajby Textiles and Industries.

DLI is serving around 800 cities and 200 countries around the world their Ocean and Air freight

services. Their major airlines' partners are PIA, Emirates, Etihad Airlines, Air China, Qatar

Airways, Thai Airline, Singapore Airlines, Airbelin, Turkish Airlines, British Airways, Air

Canada, KLM, Air France, DHL, and others.

Their Major Shipping lines Partners such as MAERSK, CMA CGM, Safmarine, MSC, APL,

Cosco, Hamburg SUD, KMTC, HMM and more.

1.1.5 Major Competitors

Major Competitors of DLI are;

DHL is an international logistics company which is working in Pakistan. DHL Express has been

operating in Pakistan since 1982 and DHL Global Forwarding commenced its operations in

Pakistan in 2006. DHL also offers an end-to-end supply chain solution including warehousing,

distribution and other SCM services through its Supply Chain division.
AL-Hadi and Co, It is the national logistic company which achieved great success over the

period of time and marked their name in the industry, they gained a reputation in the market

through their professional approaches and international working standards. They provide the best

possible solution for the logistics need. They are the approved transport contractors in Pakistan

and deals with heavy duty trucks, Toyota vans, Toyota double cabin 4X4 and especially in

loading/unloading and transportation of heavy and light electrical equipment.

Agility,It is also a Middle East logistics company works in Pakistan since 2001. Their customers

span a range of industries such as FMCG, Telecom, Pharmaceuticals, Hi-Tech, Retail, Apparel,

Fashion, Chemicals, Engineering, Oil and Gas, and Government Services.

These companies provide services like fleet management, operating vehicles, custom clearance,

etc. Competitors of DLI follow the high standers of the workforce which make their reputation in

the market. Their goodwill in the market is very high and it is a great threat for DLI to compete

these companies in logistic industry. As it is the service industry their workforce and operating

standers are highly followed and companies focusing to develop their workforce to take

maximum competitive advantages in the market.

1.1.6 Human capital & HR dept at DLI

Practices/functions of HR define organizational behavior toward the employees, proper and good

HR practices determine the attainment of organizational objectives, benchmarks, and goals.

Human resource is the asset of an organization which becomes part of the business generation.

Therefore,the company needs to allocate this resource properly. Management of this resource is

very important and complicated due to the complicity of workforce diversity. Human resource
department make necessary arrangement to manage this resource properly and get the maximum

benefit. In order to achieve this target Human resource department, need to comprise capable and

trained staff that can run the functions of HR according to the need.

DLI HR functions are traditional as the HR department is not sufficient according to the

company's needs. HR activities perform by incompetent staff which effects their overall

performance and effects their goodwill in the market. The HR department is not properly

developed. Operations are performing but there is no proper organizational Organogram, so the

structure is undefined which makes functional work life offended and other issues raised at the

time of appointments and others HR operations. Reporting Relationships are undefined which

causes misclassification of functions and operations.

1.2 Economic Outlook

Recession in the Economy of Pakistan delayed due to logistic performance 34.2$ was the value

of the logistic sector in Dec.2018 and the annual growth rate is 18 % during the year 2017-

2018(Ministry of postal service & communication). It is also a fact that Pakistan does not have a

proper ministry to look after Transport moreover the difficulty to measure this sector’s

performance identifying the cost, time and quality inefficiencies in freight management,

transportation, warehousing, materials handling, protective packaging, inventory control, order

processing, market forecasting, and customer service. World Bank in 2015 estimated that logistic

sector of Pakistan has potential to capitalize 30.77$ billion, this value show integrated

development in transportation network (air, sea and dry port) this is due to effective measures

taken to improvement connectivity in between rural areas and urban markets and become

regional trading partners.

That is then evident that in the LPI (logistics performance index) given by World Bank in 2018

Pakistan score his ranking 122 in which 160 countries were included. We lost our ranking due to

poor record of customer clearance, tracing, tracking and timelines not only Pakistan but many

other countries face same issues as developing countries face many internal challenges like

political, financial and industrial, in the list, India scored 44 rank, Bangladesh ranked 100 same

as 114 ranked by Nepal. Pakistan’s performance is getting low continuously in the global index

regardless it 30% share receiving funds form annual PSDP (Public sector Development

Program).

Worldwide logistics industry worth is 4.3 $ trillion and contributing 10 % average to GD.

Industry creating new jobs and making competitive sustainability in export which is improving

the sector. Pakistan dealing with the critical position of balance of trade just because of weak

export it is not possible to make the economy sufficient to just invest in traditional export sectors

like textile, agriculture.

1.3 Logistic Industry

In 2025 the vision of Pakistan there is an important point to improve the infrastructure of

transportation so that we create a well planned system of logistics and transportation for a

growing economy. That is how we can strengthen the infrastructure of logistics and linkage of

transport to support CPEC (China–Pakistan Economic Corridor) as we know road cargo in

Pakistan contributes 90 percent in good transportation.

Transformation and development in Rail cargo also improve the share in logistics and

transportation systems. From 2016 till now private sector also take part in the development of
cargo structure as they inter in warehouses which increase the importance of logistic and industry

growth increase.

Ports like Karachi and Port Qasim also increase the opportunities for clearing forwarding cargo

due to an increase in trade activities. Recent reforms in trade also take part in a boom up trade

volume in inter and intra-regional trade. In ports development, the most important part take by

Gwadar port which generates the demand for warehouses specially in economic zones road&

railway infrastructures network. When the network connectivity develops Gwadar port will take

part to raise the shipment opportunities in the region. This route will take goods to China and

central Asia.

Due to CPEC and transportation reforms, the investments raise which expected to help in high

growth in the sectors of Energy and transportation during the year 2016 to 2020.

1.4 Definitions and Related Theory

The logistic business provides service so it is related to the service industry which totally

depends on staff to facilitate consumers. Staff related service industry needs to be competent

enough to provide better service for that they need to have logistics knowledge so that service

standards improve and that enables companies to grow in the future, this growth will sustain

company position in the market. The practices of HRM in the services business and how

awareness of systematic would HRM practices will benefits this kind of organization. And also

HRM practices can make employees performance better and their engagement better too(Vinoth

& Muthuvelayutham., 2018).

Many internal and external factors generally affect the company’s HRM practices and policies

and deferent models influenced these HRM policies. In organization HR professionals mostly
prefer to formulate HRM policies through most advantageous factors or the elements of the

models, it is observed that many researchers in a few last years’ create these HRM models.

During the formulation of these models, some of the researchers focused on humanitarian base

while other on materialistic. The author has reviewed many articles for this study and gathered

secondary data regarding these policies, factors, and models. The first thing that has discovered

the HR factors do impact and helped to formulate HRM models. The second observation and

argument found about some of these factors of HRM discovered and accepted at not the same

times and the third one has observed that many East Asian countries’ HRM practices and

classified the dominant factors and practical HRM models.(Andalib et al., 2019).

Accordingly, to the analysis of DLI we adopted inductive theory, we collect information through

interview to understand the major issues faced by the human resource department and then we

proposed the result.

1.5 Key Words

Current Issues, Logistics

1.6 Acronyms

DLI: Dynamic Logistics International

CPEC: China–Pakistan Economic Corridor

 2. DETAILED ORGANIZTION OPPORTUNITY / PROBLEM

2.1 Identification Process

Pakistan’s logistics sector is growing and will grow more due to CPEC which will bring more

technology integrations with systems. So to meet the requirements of International market

companies will need capable HR to remain more competitive. Realizing the current needs of

industry and organizations in Pakistan, the Logistics sector has more chances to grow and so do

DLI. Therefore to meet the future requirements and provide the opportunity of a competitive

edge to the organization, DLI must see insights into its structure, designs and procedures, Human

resource department and Human Resource working and contributing towards the company’s

vision and mission.

The human Resource department of any organization plays a vital role in the accomplishment of

organizational goals, therefore organizations invest in their Human Resources department and

Human capital and believe that this investment will bring higher revenues and return on

investment which will lead to success and growth to the organization.

So this project emphasis the challenges and problems and its way outs to Dynamic Logistics

International Pvt. Ltd. Due to revelation in technology entirely change all the games, methods of

recruitment, practices of training and new tools, etc. The HR department is working with

functions as discussed below to manage the workforce in the best way. As we will be discussing

the most recent problems and challenges that organization encounter now days and HR managers

and Top Management must need to build some procedures and standards that allow them to

manage a different kind of workforce simultaneously and contribute towards organizational

goals but to achieve the goals the mentioned identified problems plays role of barriers to HR

department to contribute effectively towards the accomplishment of DLI’s objectives.

The most significant challenges of Human Resource Management, E-commerce, technology,

diversity of the workforce, globalization and ethical considerations are some challenges which

affect organization competitive advantages directly or indirectly, the most important is a

technological advancement that affects job performance, recruitment, training, and development

with great impact can be observed in organization. If we summarize the following the most

leading challenges occur in the organization in HRM is globalization which means that current

flow of goods and services, ideas, information, capital and people which means the mobility of

these all things without using of human resource. Nowadays business becomes battlefield for the

local and foreign competitors to occupy the maximum market share in the market and for HRM

this globalization is a big task. That is an open truth that human resource is the main ingredient

to attain competitive advantage because a workforce is knowledgeable and competitive which

facilitate organization over other companies in foreign market and benefit to make investment

not only in locally market but in foreign markets too, in this regard HR managers maintain many

polices and strategies to retain and develop this kind of Human resource, it is because the human

resource is the key feature of the organization which make company successful in the era of

globalization.

2.1.1 Problem # 1: Inadequate Hiring & Selection Process

In the interview, employees mentioned that DLI is more focused on referral hiring more than any

other source which led to compromising the quality of work and productivity of employees. We

also came to know that there are no proper policies or procedures for the recruitment and
selection process and do documents available for the process. This inadequate process of

recruitment and selection is a great challenge for the HR department of DLI because of which

effort for generating a potential pool of candidate and retention of competent employees is

questionable to DLI.

We also get aware that their Website is not up-to-date and user friendly and therefore

inconvenient to access the current openings, to verify this we visit their webpage and face the

same issue. Selection criteria is undefined, unstructured interviews are conducted by the

managers who are also not enough competent to understand the criteria of conducting and

evaluating candidates for suitable jobs and before interview panel do not get enough information

about the applicant and mostly these interviews are the fulfillment of formality because preferred

candidate is already selected therefore informal process adopted by the HR.

In the interview we emanated to identify that at DLI the ratio of women work force is very less

due to discrimination or, top management does not encourage to hire female staff. The statistical

information of female employees is, in Head office, there are only three females working of

around 300+ employees where as in DLI Dubai only one female employee is available of 100+

employees. Discrimination on the basis of gender is also identified in the Hiring and Selection

process at DLI which is faced by HR because Management forces them to hire male employees.

2.1.2 Problem# 2: Insufficient & Irrelevant Training and Development

To improve individuals KSA (knowledge, skill, and abilities) company provide Training &

Development, this continuous training in the organization improves the performance of the

employee but DLI do not believe in continuous learning and training programs and also do not

encourage it. In some areas an employee can improve his professional expertise through
qualifications, he will develop his leadership capabilities but employees and management are

least bother. Diversification of Workforce is another challenge of human resource management

at DLI which is most important for any organization. Diversification of the workforce means to

manage staff comes from different backgrounds with respect to gender, region, race or culture. In

the world of competition business organization doing their business activities in different

countries to maximize their market share and to get competitive advantage, such multinational

companies adopt many strategies to compete in foreign markets in which competent human

resource is a major strategy.

Organizations are making policies and practices do develop and create environment and culture

to manage such diverse asset effectively but in DLI there is no emphasis on such sensitive issue,

to create better diversified environment training is the main source of development as we were

told that company is not much interested to build such culture. As most of the employees are on

a referring basis therefore DLI does not believe in the diverse environment rather they believe on

homogenous mindset. Therefore it’s a great challenge for HR department to move forward a

diverse team of DLI across the world.

At DLI trainings are being calculated only at costs not focused on the outcomes and inputs of

employees after their trainings and the change they will bring to their personality and to the

organization with their learning. Trainings offered by their affiliations for example PIFFA;

trainings by them can only availed by the Directors and Managers.

2.1.3 Problem# 3: Organogram and JD Inaccessibility

Employee Relations in an organization is frolicking vital role in upliftment and development of

an organization. Therefore, HR department always makes sure to have good communication and

professional relationship among employees with top management and with each other.

At DLI Organizational chart is not being followed. Each employee is directly reporting to CEO

and Group CEO or as per their interest and on basis of favors. Top management are not realizing

to delegate authorities and therefore allowing each individual to report them directly which most

of time create miscommunication between departments and Managers of the departments. In the

same scenario, there is Employee handbook available but it is not clear and not explained at time

of induction of new employees at DLI. Employee handbook is refer as welcome package in

which policies regarding working hours, leaves, loans and Prohibition period only no other

information like increment or other benefits were mentioned in the Employee Handbook. No

other manuals regarding Health and Safety of Employees, Performance evaluations and

Appraisals, Reward management are present at DLI.

Dual reporting is also an issue. Work done by executives are reported to managers and Top

management, so actions taken by both were not informed to each other create confusions an

conflicts in further work actions. This issue is also great challenge for HR department at DLI to

manage good relations and appropriate communication and reporting channel so that the

conflicts in reporting do not arise.

2.1.4 Problem# 4: Inappropriate Process of Performance Evaluation and Appraisal

A key factor in determining the level of resource allocation and quality of HR activities is the

dedication and commitment of the top management. In scenario of Pakistan most of the

companies are following traditional approach and so DLI, Top management (Group CEO, CEO
and Directors) are only focused on sales not on value addition and customer services therefore

those who are generating profits are apples of their eyes. And the perceptions for HR and HR

department for them is viewed as non-productive department and therefore not more focused and

include HR in organization strategic matters that is why the overall performance of the human

resource affected and raised many issues. Which create another related problem and that is the

evaluation process. As would be expected in a high power distance culture, a majority of

organizations (80 percent) conduct performance evaluations as a one-way process whereby

subordinates are evaluated by their superiors only. Moreover, self-assessment did not yield

reliable outcomes; as people tend to rate themselves lower than the ratings they received from

their supervisors and peers in collectivist cultures.

Performance evaluation is the problem in the process of evaluation. The second major challenge

of HRM is technology. Technology is the ways and approaches of working and living as these

working and living ways have been transformed by the advance technologies that are how

information technology has renovated the whole mechanism. Ideas and information are the major

necessities of economy which hit by technology. A large quantity of capital that belongs to

people has in economy. In economy there are many assets which are owned (physically) by

people but there is only human asset which is not belongs to anyone means there are no true

ownership regarding this asset. There must be a competent environment to develop and restrain

such human resource in the organization which is the actual challenge for the human resources

management.

At DLI customized ERP solution is being used. The usage of software is only limited to the data

entry of employees, their attendance and payroll. Sales data is being inserted when they
information get from the sales team but the data is not being used properly for any strategic

decisions at DLI. No proper tracking and tracking of data is administrated.

At DLI percentage will get set for Appraisals by the Top management without any evaluations or

analysis of performance. Ratings were decided by the management as per the designations,

positions and personal likeness or Favoritism. No rating criteria are being set for evaluating and

then appraising employees.

Growth of employees means growth of on Organization. HR department at DLI is facing

difficulties on working on Succession Planning. DLI is far away with this term because there is

no proper methods and system to evaluate and appraise employee performance. An employee

works on the same position on which he/she is hired till he/she left or retires. Young blood feels

low or no chances for Growth at DLI therefore retention of young skilled employees is hard and

is great challenge for DLI.

2.1.5 Problem# 5: Inappropriate Compensation and Benefit Management

DLI do not offer a market competitive remuneration package. There is no salary slab is designed

for any categories or any positions. In terms of benefits which contribute to the employees’ well-

being is not more focused in DLI. Following benefits are being offered to Permanent employees

according to their salary ranges and at certain managerial levels. No gratuity or any other

benefits other than below mentioned being offered.

 Medical Insurance (at certain managerial levels)

 Company car (at certain managerial levels)

 One Eid Bonus (Some percentage of gross salary or half salary)

 8 Casual leaves and 7 Sick leaves

 15 Annual Leaves (Cannot be en-cashed if not availed)

 Yearly increment

 Conveyance allowance

As mentioned earlier that there are no such benefits offered to the employees that can retain them

and thus lower the level of motivation and enthusiasm in them. Some employees working for 20

to 25 years know that they are not enough competent to work somewhere else therefore they are

working at DLI and also they know that they will get nothing after they left or resign. This

attitude of employees at DLI is realized but left unnoticed because most of them were inducted

because of family relations.

Through interview it is also noticed that Young Employees feel boredom after sometimes

because their competencies are not being challenged by their work and feel de motivated and

they search for better opportunities of growth and they switch with a year or two where they get

more benefits and better growth.

 3. METHOD / PROCEDURE ADOPTED

This chapter is very important for our project, as it comprises of result of the interviews

conducted at DLI premises. The discussed problems were identified through the Interviews

conducted at DLI with CEO, HR Manager, Departmental Heads and five junior level employees.

We had make sure that the respondents of our project are relevant and as appropriate as possible

to our project.

Interviews were scheduled prior and appointments confirmation were taken on email (Form 1 –

See Appendix) and calls with HR Manager and Secretary of CEO. Open ended questions were

asked from them which were structured and also asked some unstructured questions which were

arise as per the need of information required.

The questions asked from the CEO i.e. Mr. Qamar Zaidi, HR Manager i.e. Ms. Unazia Syed,

Departmental Heads i.e. Mr. Naimatullah (Export Manager), Mr. Waseem Iqbal (Project and

Chartering Manager), Mr. Imran (Import Heads), Mr. Shuja (Fleet Manager) and five employees

at Junior officer level.

The set of qualified questions were asked by all of them which were discussed and approved by

the supervisor (Form 2 – See Appendix). Through which problems are identified. The questions

were qualitative in nature and the development of questions was focused to understand and

identify the current issues of HRM at DLI. Questions were structured and semi-structured in

order to get maximum required information. Some unstructured questions were also asked as per

the requirement arises to get clear information.

3.1 Inadequate Hiring & Selection Process

Recruitment and selection is the major drawback of the company as due this reason work quality

and efficiency affect and work force of the organization motivation get low this was the first

impression we get after the interview conducted with the staff. In the time of interview all the

interviewees told us the referral hiring make them uncomfortable and also affect the productivity

of the company and the selection of the candidate based on biasness which de motivate other

employees.

Workforce Diversity makes company more productive and creative so that they can show their

potential capacity in the market and get competitive advantage. But this diversification bring

some challenges to the company which affect its environment and culture in result of that

company’s efficiency affect which make losses in long term. We will propose way out in the

light of researches and experiences of market professionals so that company gets supreme

benefits.

3.2 Insufficient & Irrelevant Trainings and Development

Inadequate Trainings are major issue of the industry; our company also does not understand the

importance of the subject which also affect the efficiency and productivity of the human capital.

In the competitive age every company spend on their human capital to enhance their

competencies and capabilities so that they become their asset.Through interview questions we

identify that there is no learn culture in DLI and top management not realizing the importance of

the training and development of each individual. On asking question regarding training and

development of employees we found that there is no concept of training need analysis and the

investment on training are considered as cost for the organization.

3.3 Organogram and JD Inaccessibility

Undefined Reporting Relationships take major part in inefficiency of the workforce; this can

make them depress which can affect their performance and this lad to company’s performance.

Though interview question we identify that organizational chart is not update and reporting

relations are not communicated to the employees this is the great challenge for the HR because

employees at DLI are reporting directly to CEO and Group CEO.

We also came to know that through interview that there is no document of job analysis available

which is also a great change as employees task are not defined for the positions they are hired.

3.4 Inappropriate Process of Performance Evaluation and Appraisal

Inappropriate Evaluation of Performance create great anxiety among the employees and this

concern led to de-motivation and affect their performance to overcome this challenge we will

analysis studies and get our answer form market leaders so that we came offer suitable solution

to the company.

The current system of performance appraisal at DLI is not clearly established nor documented,

and there is no proper plan for performance evaluation and appraisals of the employees.

Through interview we realized that Line Managers are not enough competent to evaluate and

analyze performances of individuals on merit basis. There is no proper document of Performance

evaluation and performance appraisal.

During interview we came to know that KPI’s are undefined and not communicated to

employees. There are no channels opened for all employees to express ideas. We analyzed that

performance based culture is not promoted by the top management and yearly performance
appraisals is given by the decision of top management which is not on yearly performance of the

employees.

3.5Inappropriate Compensation and Benefit Management

Compensations and Benefits Management is a key of attainment of human resource motivation.

We will offer solutions to get extreme advantages through this and we will obtain these solutions

through researches and actions taken by professionals in their organizations.

Inappropriate Compensation and Benefit leads to negative Job Attitude of Employees and lack of

Motivation makes company’s long term objective questionable as if the employees of the

company are not motivated, they will not perform well and company will not achieve their

targets so to obtain result we will go through previous studies and professional’s expertise to

resolve such issues.

 4. DISCUSSIONS AND FINDINGS

4.1Problem # 1: Inadequate Hiring & Selection Process

Satisfied employees are the key of success of any organization as they feel the ownership and

make company’s reputation better. It is very understood that employees participate crucial in the

company’s fortune. The result of the company must ensure to have right individual on board. It is

very important that company have right person at right time for the correct job. To fulfill these

requirements the strong recruitment and selection function of the company has to do a lot.

Recruitment and selection practices in DLI are very limited.

There is no appropriate source of recruitment is available in company, the do have web portal for

general query regarding services but they do not use their web page for job posting or even do

not have consent to use this tool to make the candidate pool.

During the interactive section we observe that they prefer to recruit on referral. Recruitment is to

gather pool of competent candidate to apply for the employment in company but DLI do not

have any such source. Quality of the workforce in the firm is totally depending upon these two

functions. If wrong candidate recruit and select who is not capable or fit for job can impact

negative on cost as well as growth.

We also concluded that top management is not willing to develop effective recruitment and

selection practices and policies, which lead to unstructured and unplanned interview sessions, in

result HR department have no focus on documentation e.g. interview evaluation, there was no

application form for the applicant, which may cause loss good potential.
HR department is not sufficient for the company as company size is average 800 headcounts are

incorporated and only one person is handling all HR function which directed to compromise on

the human resource effectiveness and it will impact on cost of the company in long term. HR

manger also understands the seriousness of the improvement in HR department so that HR goal

can be aligned with the company business objectives.

4.2 Problem # 2: Insufficient & Irrelevant Trainings and Development

Performance of an employee can be increased through training and development, therefore

employee who is fit for the job but need to develop skill and competency and learn new

technology, which can enhance quality of work and efficiency of the employee. As time pass

employees and company need to review performance so that they can develop plan for further

growth as the recent change in industry expedition DLI also need to develop competent

workforce to meet the challenges.

The requirement of training and development currently increase, in DLI we assess that they do

want to meet current requirements of the industry but not willing to provide proper training to

their staff as they think it is not required at this point, their whole focus is on sale. CEO of the

company brief that, employees do not need to have any training but we have affiliation with

PIFFA and they arrange some corporate training which attended by their senior management.

These training sessions do not intend to increase the competencies but the general discussions on

the current scenario of the Pakistan industry.

In the session on our one question HR manager told us that there is no development element in

the company, there is no concept of planning and preparing employees for future jobs or
upcoming issues. She also mentioned that their company is expending and they do required

competent staff to meet the challenges of the time. If company offers the training to their

employees they can become good resources of the company. Training can effectively correct

their behavior and increase performance. She said now company is adapting new software for the

business but employees are not capable to operate it properly but they are trying, they required

intensive training and it is also affecting their performance. Manager supply chain expressed that

our current workforce need to have learn new skills and traits as the trends of the market are

changing but he did not want company to invest in staff. He thinks that employees by themselves

need to acquire these skills either they go for training or increase their qualifications.

4.3 Problem # 3: Organogram and JD Inaccessibility

Structure of the company has a major part in the organization; it shows the relation of the

different positions. It helps to understand the line authority which makes systematic approach of

working.

an incorporated relation among business and human asset designs as one by which human asset

and line supervisors work mutually to create field-tested strategies and decide human asset

needs, dissect the work power profile regarding future business methodologies, audit rising

human asset issues, and create projects to address the issues and bolster the field-tested strategies

human asset arranging happens inside the wide setting of authoritative and key business

arranging. It include to develop objectives and other implementation e.g. trainings, promotion,

hiring.

Management of DLI has traditional mindset so they do not consider it important to develop

proper Organogram, in the interview with the one of the manger who told us that we do not give
any job description or related information to the employee as they do not want to report other

departmental heads, we all work as team and we do not need to delegate separate duties. So it

was intuitive that they do not want to delegate authority. We also asked HR Manager for these

documents she also said that she made once but management did not show interest in it. She said

we cannot evaluate any performance or plan forecast.

4.4 Problem # 4: Inappropriate Process of Performance Evaluation and Appraisal

All formal methods which are used for individual evaluation are refer to performance

management so we can say that it is to plan and measure the performance of an individual in

terms of the requirement of the job or it is a process of finding out how effective the organization

has been at hiring and placing an employee.

Performance appraisal is a recognized system of review and evaluation of individual or team task

performance but DLI do not have any appraisal system in the organization because of that

employees performance evaluate by the top management discretion which make unsatisfactory

behavior on the whole process and led to disloyalty and mistrust in the employees of the

organization.

Performance appraisals are the general practice of the organization for their employees, this

process can be formal or informal, can be annually or quarterly. In DLI performance evaluation

is annual process and generally it is done by top management without any concern with the

related employee. Due to this reason company’s long term goal are difficult to achieve.

For long term goal achievement performance appraisals are necessary but DLI do not understand

and their HRD do not improve employees’ performance. In fact, performance appraisal is the

basis for HRD but in DLI’s HRD is not well planned and do not perform appraisal process
properly which is useful for decision e.g. employees’ promotions, determination of salary etc.

Now it confirms that employees’ development also depends on performance appraisal but HRD

of DLI do not focus on such areas of HR as company do not have proper practices or systems of

Human Resources. As a company does not feel gap between the desire performance and actual

level of performance. This gap only can be filled by the human resource proper development

techniques e.g. trainings programs.

The current system of performance appraisal at DLI is not clearly established nor documented,

and there is no proper plan for performance evaluation and appraisals of the employees.

We realized that Line Managers are not enough competent to evaluate and analyze performances

of individuals on merit basis. There is no proper document of Performance evaluation and

performance appraisal. It is observed that there is no encouragement of performance based

culture. Top management and Managers do not have mindset to promote performance base

culture.

KPI’s are undefined and not communicated to employees therefore they are unaware the basis to

perform. There are no channels opened for all employees to express innovation/improvement

ideas, nor is there a committee or group responsible for assessing any proposed ideas and

deciding on further courses of action. Leaders are not involved in promoting a Performance

based Culture; the management meetings which held on monthly basis do not include any

performance results in the meeting agenda.

4.5 Problem # 5: Inappropriate Compensation and Benefit Management

Now HR is working as strategic partner in the company and playing important part to get

competitive advantages in the market. To achieve this competitive advantage successfully system

of Human resource management must aligned with the strategy of the company.

Organizational performance is influenced by the compensation system which is very critical in

organization. In service industry quality of the service depend upon their workforce, therefore it

should be appropriate remuneration system to motivate performance, attract and retain workforce

and this is the main key of employee-employer relationship. Compensation is divide into direct

and indirect benefits, as in direct compensation we have wage or salary, incentives like bonuses,

profit or share offer whereas in indirect we have medical benefits, insurance benefits, it is an

institutive understanding that employee do not leave company if he participate in benefit

program, they prefer to stay rather than go in some other company. Thus the incorporation of

good benefits offers directly affect company’s performance side by side attraction, retention and

section of competent employees.

Employees consider a company who offer them different type of benefits and good pay

incentives. Different companies have their own compensation programs, some companies focus

on benefits where other on cash payouts.

DLI have good cash payout structured but they do not have proper salary slab which cause de-

motivation among the employees. In interview HR manger told us that employees have

reservations on their compensation as top position holder get the maximum benefit where others
do not even get market competitive compensation packages and company do not interest to give

other benefits like medical, club membership, gratuity, provident fund etc.

She further explains due to this reason our turnover rate is high. And employees are searching

other jobs during their tenure with the company, which is affecting the company’s efficiency. As

company is not giving market competitive Compensation which is affects culture and

environment of the company.

 5. RECOMMENDATIONS

After the findings mentioned in earlier chapter we had given some recommendations to the

management for the improvement in current Human resource management so that the

recommendation can help in future alignment of business goals with their HRM. The following

recommendations are discussed below.

5.1Recommendations for Problem # 1: Inadequate Hiring & Selection Process

As discussed earlier that DLI is more focused on referral hiring that compromises the

productivity and create homogenous culture and environment. We suggest making Strategic

recruiting process.

DLI’s website need to be updated and HR portal or career link should be mentioned on which

HR manager should update if vacancy arises. Website should be user friendly so that applicant

can access easily and send their resume through website. It will create efficient pool of candidate

for DLI which can be referred for future positions.

Application forms should be designed so that walk in applicant’s data can also be gathered and

their information can be view in future easily. Proper interview assessment forms and

evaluations forms should also be designed for proper interview process. A background

investigation department should be formed and also reference checking form should be designed.

HR manager should have proper documentation related to the recruitment and selection process

as recruiting and selecting the right and competent employee will lead to accomplishment of
organizational goals. We had designed and proposed Application form (Form 1 – see Appendix),

Interview Assessment form (Form 2 – see Appendix) and Reference checking form (Form 3 –

see Appendix) to HR manager of DLI.

5.2 Recommendations for Problem # 2:Insufficient & Irrelevant Trainings and

Development

We mentioned in previous chapter that Top management of DLI do not believes in growth of

individual and thus there is no initiatives taken by Line managers and HR manager too.

HR manager should highlight the importance of training and development and should take such

initiatives like training and need analysis of each individual which will further enhance skills of

employees so that they can grow and perform better.

We recommend that proper department of Training and development should be made and HR

manager should communicate importance and need of the training and development of each

individual at DLI. Training need analysis (TNA) should be done by line managers; HR manager

should assist and coordinate with them. A proper document and form should be made for TNA

which we have made and proposed to HR manager (Form 4 – see Appendix).

Due to limited resources HR manager can also take initiatives with the help of technology and

can give short trainings on soft skills to employees according to the need and can record short

trainings so that it can be reviewed in future. Top management should promote learning culture

among their employees.

5.3 Recommendations for Problem # 3: Organogram and JD Inaccessibility

Reporting relations are not clear. Traditional approach i.e. direct reporting to the top

management is a culture at DLI. HR manager should update organizational chart and clearly

communicate it to employees so that there should be no conflicts in communications within

departments.

Job analysis should also be done by the Line managers with the help of HR manager so that task

of each individual will be aligned. Job description document should be updated and

communicated for each position in which their reporting supervisors should be mentioned which

will further be useful at the time of performance evaluation.

We have proposed HR manager to conduct job analysis through Interview method, Observation

method and questionnaire method so that proper document can be made which be helpful in

effective recruitment and selection process and most importantly JD document will help in

performance evaluation because the job tasks will be clearly defined.

5.4Recommendations for Problem # 4: Inappropriate Process of Performance Evaluation

and Appraisal

As per the findings, following are the Recommendations for the Performance Appraisal System

at DLI. The objective of Performance Appraisal and its importance should be clearly

communicated to each employee in the organization. Proper policies and procedures for

performance Appraisal system should be made and documented and communicated to each

individual in the organization.

Top management should promote performance based culture through different rewards and other

initiatives so that employees get motivated to perform more effectively in a better way. The

proper Performance Appraisal should be made that will assist effectively to the employees as it

recognizes the competence and potential of an individual.

The employees should assess and appraised by their HOD once in a year and Succession

Planning should be made for competent employees so that promotions on the basis of

competency can be done in future. HR manager should organize monthly or quarterly

performance review meetings and invite both decision makers and KPI owners to attend.

Organize target-setting workshops and invite the employees responsible for reaching the targets

and those responsible with collecting data for measuring target achievement. Provide dedicated

training and/or coaching programs on performance measurement for all key employees.

Centralize and monitor the decisions from one performance review meeting to another;

Performance Management relies on data analysis and reporting. Develop a standardized initiative

documentation form with relevant information that supports implementation (e.g. initiative

name, start date, end date, initiative owner and status)

Open at least one channel for employees to submit their innovation ideas

andassignacommitteeresponsiblewithassessingallinnovation/improvement ideas proposed by

staff members and deciding on further courses of action. We had proposed a Performance

Appraisal form (Form 5 – See Appendix).

5.5 Recommendations for Problem # 5: Inappropriate Compensation and Benefit

Management

Limited benefits are being offered at DLI which do not promote Motivational practices i.e.

benefits offered at DLI do not attract employees to retain for long term, therefore HR manager

should design Salary slabs as per set criteria like designation, experience, nature of job etc.

Company should conduct market survey and make the benchmark for them, they also can

provide non-financial benefits to their employees e.g. gratuity or provident fund, medical, club

memberships, educational assistance, subsidized food.

We have recommended Top management and HR manager to adopt point method job evaluation

so that compensable factors can be identified through which value of jobs are expressed in

monetary terms and we also proposed job evaluation form (Form 6 – See Appendix). The factors

of point methods are skills, efforts, responsibilities and working conditions; should be measured

properly so that wages and salaries could be offered accordingly.

 CONCLUSION

Dynamic Logistics International (DLI) is the leading freight forwarding company and was

formed as Private Limited Company 1997.DLI has over 800 of headcount working. DLI have its

offices Nationwide. Its Head office is in Karachi, whereas other offices are in Islamabad,

Peshawar, Faisalabad, Sialkot, Lahore, Multan and Gwadar. DLI also have offices

Internationally at Dubai and Afghanistan.

DLI HR functions are traditional and perform by incompetent staff which effects its overall

performance and effects it goodwill in market. HR department is not properly developed.

Operations are performing but there is no proper organizational Organogram, reporting

Relationships are undefined which cause misclassification of functions and operations.

Due to CPEC, Logistics sector have more chances to grow and so do DLI. Therefore to meet the

future requirements and provide opportunity of competitive edge to the organization, DLI must

see insights of its structure, designs and procedures , Human resource department and Human

Resource working and contributing towards the company’s vision and mission.

Through interview we came to know that DLI is more focused on referral hiring more than any

other sources. We also came to know that there are no proper policies or procedure for

recruitment and selection process and do documents available for the process. For this we

recommended that DLI’s website need to be updated and HR portal or career link should be

mentioned. Website should be user friendly Application forms should be designed. Proper
interview assessment forms and evaluations forms should also be designed for proper interview

process. HR manager should have proper documentation related to the recruitment and selection

process.

At DLI trainings are being calculated only at costs not focused on the outcomes and inputs of

employees after their trainings and the change they will bring to their personality and to the

organization with their learning. We recommend that proper department of Training and

development should be made and HR manager should communicate importance and need of the

training and development of each individual at DLI and should conduct training and need

analysis of each employee.

At DLI Organizational chart is not being followed. Each employee is directly reporting to CEO

and Group CEO. Dual reporting is also an issue. Work done by executives is reported to

managers and Top management. This issue is also great challenge for HR department at DLI to

manage good relations and appropriate communication and reporting channel so that the

conflicts in reporting do not arise. We recommended that HR manager should update

organizational chart and clearly communicate it to employees so that there should be no conflicts

in communications within departments.

At DLI percentage will get set for Appraisals by the Top management without any evaluations or

analysis of performance. Ratings were decided by the management no rating criteria are being

set for evaluating and then appraising employees. We recommended that Top management

should promote performance based culture through different rewards and other initiatives so that

employees get motivated to perform more effectively in a better way and also rating criteria

should also be designed.

DLI do not offer a market competitive remuneration package. There is no salary slab is designed

for any categories or any positions. In terms of benefits which contribute to the employees’ well-

being is not more focused in DLI. We recommended that Salary slabs should be designed as per

set criteria like designation, experience, nature of job etc. We have recommended Top

management and HR manager to adopt point method job evaluation so that compensable factors

can be identified through which value of jobs are expressed in monetary terms.

HRM of an organization plays an important role therefore Top management at DLI should

understand and support HR department to take initiatives and make efficient HRM to align HR

goals with business goals.