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Brief History
Pak Elektron Limited (PEL) started working in 1956, with the technical
collaboration of AEG, it was primarily engaged in the production of
DISTRIBUTION TRANSFORMERS. PEL has come a long way since its
establishment and is now engaged in the production of transformers 33
KV-5Mva capacity, Switchgears upto 33KV, Squirrel Cage Induction Motors
upto 40 H.P, Single Phase Energy Meters, Small Generators, Shunt Capacitor
Banks and Reclosers etc. In 1980 the company expanded into consumer
durables with the introduction of window type Air conditioners and today also
manufacturers Refrigerators, Deep-freezes and Compressors etc. The
manufacturing of Television is facilitated by its joint-venture with DAEWOO.
In 1997 the Company collaborated with Carrier of America to produce splits
and Airconditioners in Pakistan.
PEL equipment has been used in numerous projects of national
importance. Over the years PEL has its equipment approved and certified from
some well reputed organizations such as:
1. Preece, Cardew and Rider, England
2. Harza Engineering Company, U.S.A.
3. SANAM Progetti, Italy
4. Societe Dumez, France
5. Ensa, France
6. Miner & Miner International Inc. U.S.A.
It was in early 70's that PEL became known in overseas markets due to
its quality and the company started exporting to countries like Saudi Arabia,
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Dubai, Qatar etc. Later on the exports extended to countries of Middle East,
Far East and Africa with great success.
Later on PEL started manufacturing goods for Army. These include
Generating sets and specialized D.C. Motors of various capacities.
In October 1978, PEL was taken over by Saigol Group of Companies,
which is one of the largest industries and commercial groups. The Saigol
Group belongs to the Saigol Family, which is one of the oldest industrialist
families in Pakistan and has contributed alot in the industrial development of
Pakistan. Since it's take-over by Saigols PEL is a "company on the go".
Presently the company is engaged in the manufacturing the following
products:
TRANSFORMERS
DISTRIBUTION TRANSFORMER is the first power product of PEL, up
to 33 KV and 5000 KVA capacity. The major buyer of Transformers is
WAPDA.
ENERGY METERS
The production of Single Phase Energy Meter was stared in June 1994
in the range 10-40 Amps and rated 240-volts. The major buyers of Energy
Meters are WAPDA and Government of Azad Jammu and Kashmir.
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SWITCHGEARS
SWITCHGEARS are produced under the specification of IEC, BSSOR
VDE. Switchgear manufacturing line consist of High Tension Indoor or
Outdoor type. The major buyers are WAPDA and KESC.
MOTORS
PEL manufacture MOTORS in 35 models upto 40 horse-power range.
PEL's totally enclosed fan-cooled motors are suitable operation under extreme
climatic conditions.
AIRCONDITIONERS
In 1980-81 window type air conditioners of 19000 BTU called
"PEL-air" was manufactured as a first consumer product in the technical
collaboration with General of Japan. During 1987-88 Split Type Air
conditioners were also introduced in market.
REFRIGERATORS
In 1986-87 PEL introduced refrigerators in technical collaboration with
M/s. SILTAL SPA (ITALY). PEL refrigerators are called "PEL COOL".
Refrigerators are produced in three different colours i.e. Green, Beige DEEP
FREEZERS
During 1986-87 PEL introduced the deep freezers by the name of "PEL
Freeze". Deep freezers are produced in six different models i.e, from 175 litres
to 410 litres in single and double door designs.
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COMPRESSORS
In May 1993 PEL set up a high-tech compressor manufacturing facility
at PEL in collaboration with NECCHI of Italy, the first such plant in Pakistan
to produce compressors for refrigerators and deep freezers.
TELEVISION
In June 1995 PEL started manufacturing television in collaboration with
DAEWOO. However the product is not as famous as other PEL products.
DIVISIONS OF PAK ELEKTRON LIMITED
PEL is mainly divided into two divisions
a) Power Division
b) Appliance Division
a) Power Division
Power Division is engaged in the production of transformers,
switchgears and energy meters. The main buyer of these products is
government. The PEL power equipment was chosen for such vital projects as
Mangla Power Station, Terbela Power Station and Combined Cycle Kot Addu
Power Station.
b) Appliance Division
The products manufactured in Appliance Division are Airconditioners,
Deep freezers, Television, Refrigerators.
Air conditioners and deep freezers are made in Gadoon Amazai while
refrigerators are assembled in Lahore. Television is manufactured at Hattar.
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COMPANY INFORMATION
BOARD OF DIRECTORS
Chairman
Chief Executive
REGISTERED OFFICE
WORKS
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HUMAN RESOURCE OF PEL
We have acknowledged the importance of human resource development.
In PEL, Merit selection, Improved compensation, training and
accountability at each level are being introduced to increase motivation
and productivity, which in turn leads to development of the quality
personnel with leadership, attributes to face the challenges ahead. The
management of the organization has been further strengthened through
recruitment of managers with proven professional records and market
credibility. They will not only provide the required leadership but also act
as ‘Agents of Change’ to improve the organizational structure.” I have
studied the Human resource department of Pak Elektron Limited(PEL)
thoroughly. PEL considers its human resource as an asset of the
organization and manages it according to the needs of the modern era.
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RECRUITMENT AND SELECTION
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RECRUITMENT PROCESS
Recruitment of employees, in general the sources of recruitment can be
classified into two types.
i) Internal Job Posting:
Filling a job opening from within the firm has the advantages of
stimulating preparation for possible transfer, or promotion and increasing the
general level of morale.
Self Nomination:
Human Resource office publishes a monthly newsletter that list the
PEL's job posting program to different routes to nomination for a job, self
nomination and nomination by an employee supervisor..
Nomination by Employees Supervisor:.
In 4 years of its merger 3000 opening were advertised posted of which
approximately 68% were filled. 32% of the opening were cancelled.
supervisions with vacancies often post jobs and interviews can ideates, and
then when they are not satisfied with the qualify of the candidates, they
disquality all nominees and ask management for permission to recruit from
outside..
ii) External Job Posting:
PEL also go to external sources for positions whose specification can
not beam by present personnel. PEL uses following outside sources.
1) Advertising:
Advertisement is carried out in various newspapers. More information
about the company and job specification is included in the ads.
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2) Employment Agencies:
PEL also utilizes private employment agencies which have qualified
employees and also they have specialized in various types of workers and job
e.g. sales office, execution or engineer.
3) Casual Applications
Unsolicited applications both at the gate and through the mail constitute
a much used source of personnel recruitment. It has been developed through
provisions of attractive employment office facilities and prompt and
continuous replies to unsatisfied letters.
SELECTION PROCEDURE
In the hiring procedure, PEL are following steps to discover significant
information about an applicant.
1. Call for application
2. Preliminary interview
3. Applications blank
4. Check of References
5. Psychological lest
6. Employment interview
7. Approval by the supervisor
8. Physical examinations
9. Induction or orientation
1) Call For Application
First of all, an ad is given in the newspaper for the vacancy.
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2) Preliminary Interview:
In this step, .an idea of education and experience is obtained by asking
for the last grade finished in school and the names of jobs previously
Done. The more obvious facts and impressions are of the type generally
obtained in an initial interview. Applicants are often asked why they are
applying for a job in PEL
3) Application Form:
In PEL factual information are to be obtained by means of an
application blank.
Weighted application form is established and used with caution. It is
used for two prime objectives.
PEL has established the selection of more stable employees to decrease
labor turnover. They have discovered and utilized the particular data that
devote stability facts relating to home ownership, marital status, age and sex.
4) Check of References:
The purposes of the reference check are to obtain information about past
behavior of applicants and to verify the accuracy of information given. PEL
uses combination of letters and telephone calls, as a method of checking.
Reference includes only
1) Dates of employment
2) Job title
3) Absentee record
4) Promotions and demotions
5) Compensation
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6) Stated reason for termination.
5) Psychological Test:
In PEL, clericals jobs are subjected to the greatest amount of testing,
applicants for unskilled hourly jobs are tested least. The factors measured are
usually of the psychological type, such as ability to reason, capacity for
learning, temperament and specific aptitude.
Types of Psychological Tests:
Following types of tests are being used in PEL to identify talents.
i) Intelligence test:
ii) Mechanical Aptitude test:
iii) Clerical Aptitude Test:
iv) Interest Test:
6) Employment Interview:
PEL shapes interviewer behavior to establish a specific system
for conducting the employment interview. PEL considers following things to
set up such a system.
• Conduct the interview in a relaxed physical setting. Begin by
putting the applicant at ease with simple questions and general
information about the organization and the position being filled.
• To evaluate applicants, develop a form containing a list of
KSAOs weighted for overall importance to the job.
7) Approval by the Supervisor
The Supervisor approves the candidates immediately after the
employment interview and the candidate is recruited after probationary period.
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8) Medical Examination:
The. Medical test includes matching of an applicant's physical
capabilities to job requirements .In having the physical examination procedure
PEL has at least three basic objectives.
1) To ensure the applicant physical capabilities e.g. can the applicant
work standing up.
2) To protect the company against unwarranted claims under worker's
compensation laws or against lawsuits for damages. If a record of a new
employees physical condition at the time of entry does not exit, a claim
could possibly be filed for injuries greater than after the job..
Questions to PEL Officials
1. What is recruitment?
2. Why recruitment is necessary?
3. Whose responsibility to recruit the candidates?
4. Method of recruitment you follow?
5. Is reference count in recruiting?
6. What kind of tests screens the employee abilities more properly?
7. Is background necessary for recruiting?
8. Why careful selecting is necessary?
9. Do you follow or have any selecting law or ordinance?
10. If selected employee does not work, as you like what you do?
11. Do you advertise your vacancy anywhere?
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PAK ELEKTRON LIMITED’s Practice
Recruitment refers the policies you need to carry out the people aspects of
your management. These policies include:
a) Conducting job analysis
b) Planning labor needs and recruiting job candidates
c) Selecting job candidates interviewing
d) Orienting and training new employees
Skilled people are the need of PEL because only skilled people have the
good performance. And Intelligence tests best screen out the employee’s
abilities and capabilities. In PEL physical test is necessary for all the
candidates.
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TRAINING AND DEVELOPMENT
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The second phase of most organized induction program is performed by
the immediate supervisor. The inductee is introduced to fellow employees,
given a tour of the department, and informed about such details as locker and
rest rooms, supply procedures, hours of work overtime, call in procedures, rest
and lunch periods, and lunching facilities.
Phase three follow up some week later. The interview, conducted by
either the supervisor or a personnel specialist is concerned with
1) Employee satisfaction with the job and organization.
2) Supervisor satisfaction with the employees.
PEL is a multinational organization in which importance has been given
to training. The management consider the training as an "Investment in their
Asset". They believe that planed development programs will returns values to
the organization interms of increased. Productivity, high reined morale,
reduced costs and greater organizational stability and flexibility to adapt to
changing external requirements.
TRAINING NEEDS ASSESSMENTS:
In PEL there are three level of analysis for determining the needs
training can fulfill.
1. Organization analysis:
Focuses on identifying where within the organization training is needed.
2. Operation analysis:
Attempts to identify the content of training - what an employee must do
to perform competently.
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3. Individual Analysis:
Determines how well each employee is performing the task that make
up his or her job.
OPERATIVE TRAINING:
The development of operative calls for specific increased in skills and
knowledge to perform a particular job. In PEL there are primarily two basic
methods in use.
1) On The Job Training:
This method is most widely used and has the advantage of motivating the
trainee to learn. As the success of the system depends almost entirely upon the
immediate supervisor, the trainer, the personnel unit has a major responsibility
for making a good, effective reaches out of every supervisor.
2) Off the Job Training
There are three methods used in PEL for Off the Job training
i) Workers Training Program:
This program was inaugurated by M&F.A. Mirza, the CEO and MD of
PEL Pakistan Ltd. The main agenda of the program was to explore the hidden
talent of their worker and to make them cognizant of their own potentials. Mr.
A.I. Mir, the divisional head, and his team conducted the program in a very
interesting and entertaining manner with the help of IQ testing riddles and
different games.
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ii) Special Courses:
The second system of conducting training may be classified by some as
education rather than training.
iii) Skills training program:
This program was hold day and night from 25-10-97 to 27-10-97 at
LUMs. The objective of the program was to convert their sales staff into
technical sales staff. Mr. Mir. Presented on selling skills, while Mr. Mehmood
Hussain and Mr. Asim Naseer Presented on technical application knowledge.
Although, being held day and night, it was not a carry session but full of real
enthusiasm.
iv) IMPROVEMENT OF EDUCATIONAL AND TECHNICAL
QUALIFICATION:
The company adopts the policy of sending its employees for training
abroad. Apart from this, employees are sent to attend suitable training program
within Pakistan held by recognized institutions e.g. LUMS, IBA etc.
Employees who wish to improve their educational qualification by registering
in Diploma courses and degree courses are encouraged to do so.
Only admission to standard institutes e.g. IBA. Karachi university etc.,
the employee should not suffer. In return for any financial assistance provided,
it is expected that the employee will serve the company for a period of at least
five years after the completion of the Diploma / Degree.
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EVALUATION OF TRAINING PROGRAMS
To assess and evaluate the utility or value of training, in PEL
management seek ensures to four questions.
1. Did change occur,
2. Is the change due to training,
3. Is the change positively related to the achievement of organizational
goals;
4. Will similar change occur with new participants in the same training
programs.
In evaluating training programs, measures of change fall into four
categories.
How do participants feel about the training program?
To what extent have trainees learned what was taught.
What on the job changes in behavior occur because of attendance at the
training program?
Is what extent have cost related behaviour outcomes or quality
improvement, turn over or accident reduction (productivity) resulted
from the training.
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16. Do you provide some special training for some special purposes?
17. Method of training you follows?
18. What types of trainee are working in company?
19. Do you follow five steps of training and development process?
20. Do you hire any trainer or experts for lecturers for training of
employees Help?
21. Do you issue any diploma or certificate to trainees?
22. Does PAK ELEKTRON LIMITED has its own training center?
In PEL there are three level of analysis for determining the needs
training can fulfill.
1. Organization analysis:
2. Operation analysis.
3. Individual Analysis:
PEL trains its employees in its head office in Lahore and also
sends its employees at LUMS and |IBA for higher-level training.
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EMPLOYEES’ SERVICES SAFETY, HEALTH
& WELFARE
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Medical Facility:
People earning Rs.4000 per month have medical facility under the
Social Security. Those having salaries more than Rs.4000 per month, are paid
Rs.300 per month as medical allowance.
Provision of informative handbooks
In PEL, workers are also provided with informative handbooks which
can enhance their information about the optimum use of their skills.
Uniform Facility:
In PEL, Workers are provided with three uniforms in a year and
Performance Appraisal:
To boost the morale of employees, every year rewards are given to the
most regular person. A special performance award is also given
Loans:
Loan facility is also provided but it can be availed from the provident
fund of the employee, which is equal to 10%.
Workers Concession Shop:
In PEL, there is a workers concession shop where flour, ghee, sugar,
soap, etc is provided to the workers at subsidized rates.
Canteen Facility:
The Management of PEL believes that primary condition for good
health is nutritious food. So it is prepared under most hygienic conditions in
the company and is served at highly subsidized rates.
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Questions to PEL Officials
• Medical facility
• Gratuity
• Provident Fund
• Utility Allowance
• Conveyance Allowance
Outside medical facility is available for employees and they are paid at
actual basis. It means if an employee gets treatment from the authorized
hospital of the PEL where it will bear all its expenditure incurred.
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MANPOWER PLANNING
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4. Management Development:
HRD provides succession of trained and experienced manager which is
essential to the effectiveness of the organization and this depends on accurate
information about present and future requirements in all management level in
PEL.
A system of HRP in PEL:
A system of HRP in PEL has some specific points on which company
act.
1. Defining or redefining organizational objectives.
2. Determining and implementing the basic requirement to sound planning.
3. Assessing future requirements to meet objectives.
4. Assessing current resources and availability of resources in the future.
5. Producing and implementing the plan in detail i.e balancing the forecast
for demand and supply related to short term and long term time.
6. Monitoring system and amending as indicated.
EVALUATION OF HRD PERFORMANCE
HRD of PEL is working very well. Such as planning, managing people,
resulting people, its objectives and its mission, guiding principle are very good
and helping in overall organization.
Managers of HRD are expected to organize and to be accountable for
the work of other people. In this process, managers act as employers as such
they create and sustain the employment relationships of their organizations.
The occupation of HRM specializes in technical skills of managing this
employment relationship. In the PEL specialist management has engaged.
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After we have seen how different models of personnel management have
developed, and it shall explore the interdependence between activities which
make up the personnel function of managements by looking at how these
activities interlock as a
"System in form of HRD"
REASONS FOR HUMAN RESOURCE PLANNING
The formal personnel planning is essential for PEL because it is
moderate to large in size, that experiences changes in technology, products,
markets and utilizes a lot of high talent personnel. Following are specific
reasons for which PEL management is carrying on systematic human resource
planning.
1) Future Personnel Needs:
2) Coping with Change:
3) High-Talent Personnel:
4) Strategic Planning:
5) Equal Employment Opportunity:
6) Foundation for Personnel Functions:
THE PLANNING PROCESS:
Planning for human resources is tied in with overall PEL long range
planning..
1) GOALS AND PLANS OF ORGANIZATION:
Human resource planning is a part of overall strategic planning for PEL.
A personnel vice-president and his staff cannot make useful plans for period of
one or three or five years, unless they have data on possible corporate
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expansions new products, new plants, new markets and so on. Important steps
involved in overall planning for PEL are:
1. To analyze and evaluate environmental influence.
a) Political trends and legislation which will have impact upon the
business.
b) Economic conditions such as competition inflation, rate of
change in gross national product and unemployment level.
c) Social trends in leisure time, consumer tastes, work values and
retirement.
d) Technological advances affecting enterprise.
2. To identify the values and aspirations of PELs directors and executive.
3. To identify and evaluate the internal strengths and weaknesses of the
enterprise.
4. To develop a strategy which relates the strength of the company and
aspirations of executives with opportunities perceived in environment.
5. To create specific enterprise objectives and plans for achieving these
objectives.
6. To prepare plans for the functional areas of the business; production,
finance, marketing, research and development and personnel.
7. To communicate with members of the organization and involve them in
planning process.
8. To evaluate progress toward implementation of plans and take
corrective action where necessary.
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PLANNING PERIOD:
The extent and rapidity of change in the forces affecting the business
determines the utility of forecasts into the future. PEL's planning period is from
3 years to 5 years. Period for three year is short range and of five years is long
range period.
2) CURRENT HUMAN RESOURCE SITUATION:
This is also called a skills inventory or manpower information system.
A skill inventory consists of up-to date information regarding the qualifications
of the selected categories of personnel. The skills inventory has several
important uses.
1) After preparing human resource forecast, PEL compare, the number,
types and skills specified by forecast with the present baseline or current
position given by skill inventories to as ascertain what skills must be
developed from present personnel via training, up grading and special
development efforts.
2. Other use is to identify talent within the organization for specific job
opening.
3. An up to date skill inventory is valuable for the preparation of rosters of
qualified technical and managerial personnel.
4. An inventory can be used in conjunction with an affirmative action
program to monitor progress toward meeting employment goals.
5. And finally the existence of a skills inventory enhance the opportunities
for employees to satisfy their career through development and
promotion.
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COMPUTERIZED SYSTEM:
PEL along with manually prepared Human Resource Data card also use
computerized system to handle data. The computer can readily provide a
printout of the age distribution of all mangers by level, job, and department.
PEL Officials said that manpower planning means to use the human
resource in such a way that we get maximum out put from minimum input of
human resource. They said that manpower planning is necessary to use human
resource economically and efficiently.
PEL Officials told that manpower planning has improved the working
standard with economically and efficiently. Tasks are given to employees at
the start of fiscal year. At the end of fiscal year, these tasks are evaluated by
annual appraisal..
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SALARY ADMINISTRATION
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vi) In order to give importance to the event, the employee concerned shall
also be interviewed.
vii) Merit shall be the only criteria for promotions. Seniority will be taken
into consideration only when every thing else is equal.
PEL takes many steps to make its salary equitable. Basically the salary
at PEL is period based salary. If an employee works according to the rules and
regulations of the organization, they pay them very well. I have not got
information about their standards, which are seen by the management as a tool.
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INDUSTRIAL RELATION
DISPUTES IN ORGANIZATION
Sometimes the employees are not satisfied with their jobs and there are
some signs such as strikes, confrontation leading to lockouts and various forms
of withdrawal of cooperation by workers. But the typical conflicts which are
taking place in the organization are overtime bans, working to rules, refusal to
use new machinery have all seen in different sectors of PEL.
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Management communicates regularly and openly with staff;
Staff consults on matters that affect them;
Problems and disputes should be resolved through
discussion and consultation; and
Management devises and encourages activities that
contribute to staff's well being.
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SYSTEMS OF COMMUNICATION
Communication is a two-way process, for releasing staff's ideas,
energy and ambitions. Through communication, management helps staff
understand the mission, objectives and values of the department, and staff
can let management know their ideas and aspirations for giving their best.
Some specific communications objectives are:
Provide managers and staff with information to support
departmental budget decisions and workforce planning, including
context, benefits and challenges, training and technical
requirements, and implementation strategies.
Gather information on the campus’s business and training needs
at the appropriate times, to ensure that the system reflects those
needs to the greatest extent possible.
Encourage leadership and support from campus management.
Ensure that the various project staff and working groups receive
communication from project management and from each other.
Recognize the contributions and accomplishments of the many
participants in development and implementation.
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employees to come in and talk about everything that is
troubling them.
• Telephone (mostly)
• Email
• Fax
• Written communication
• Verbal communication
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PEL gives you direct access to a comprehensive range of better facilities to
help you monitor your business locally as well as internationally
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NEGOTIATING WITH UNION
Union:
In PEL, employees have a right to elect the Union on yearly basis. The
union includes one president, vice president, and general secretary and finance
secretary. It plays its part in all activities and arranges functions at important
occasions and negotiates with the management for employees problems. All
labour disputes are settled through the union.
Labour Laws:
Labour laws applicable in the country are also applied at PEL. All
benefits imposed by the Government of Pakistan and Government of Punjab
are granted to employees.
Questions to PELOfficials
51. What are the main points of dispute between you and union?
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PAK ELEKTRON LIMITED’s Practice
PEL has a very strong Union. PEL management manages the unions
and problems by holding meetings with unions and discusses various
problems.
PEL faced a strike in its life because the workers wanted increment in
their pay but they did not have it. So, workers went on strike. Then
management took a serious notice of this strike and went into negotiation with
union of the workers and settled the issue.
These are the main points between PEL management and Union: -
• Salary
• Various benefits
• Promotion
• All other staff related problems
PEL take union very seriously because they found very hard to manage the
strike. PEL has a good reputation in the organization, so the management does
not want to lose this reputation by union problems.
Human Resource Manager said that in his own view Union is healthful for
the company because management cannot go against the benefits of the
employees due to Union’s pressure.
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TERMS & CONDITIONS OF EMPLOYMENT
The term `employee' is used in the rules, regulations and covers all non-
unionized employees i.e. Junior Officer up to Managing Director
The company reserves the right in its discretion to modify, alter or
discontinue any rule, regulation or plan.
1. LEGISLATION FULFILMENT
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member ship of the Provident and Gratuity Funds except coverage under the
Accident Insurance Policy.
4. WRITTEN EMPLOYMENT CONTRACT
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8. LEAVE: ENTITLEMENTS & RULES
All confirmed employees are entitled to leave according to the rules and
regulations stated below:
i. CASUAL LEAVE
RULES:
Casual leave may be allowed to be availed at one time for a maximum
of 3 days and shall not normally be combined with any other leave,
holidays and /or public holidays.
Causal leave shall not be accumulated and carried forward beyond a
calendar year.
ii. SICK LEAVE
Entitlement is 14 calendar days in a year and shall not exceed 28 days..
RULES
Any application for sick Leave which exceeds 3 days should be
supported by a medical certificate from a registered practitioner.
Company Doctor will examine the employee and his advice shall be
final, for the purpose of granting leave to the employee.
iii. PRIVILEGE LEAVE
The P/L entitlement for all employees is as follow:
Rules
a) An application for P/L shall be submitted to the Human Resource
Division duly recommended by the concerned Superior, a minimum of
14 days before commencement of leave.
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b) A minimum of 2 weeks P/L pertaining to one year has to be availed in
order to receive Leave fare Assistance for the year.
c) If privilege leave is cut short by any employee on his own accord, a note
should be sent to Human Resource Division immediately on resumption
of duty for adjustment of leave.
d) Prefix and suffix of weekly/gazetted/other holidays to Privilege Leave
will be allowed and as such will not be counted as Privilege Leave.
e) The management reserves the right to refuse any leave if the exigencies
of business so require.
iv. MATERNITY LEAVE
Maternity Leave will be allowed to the concerned employee for a period
of 12 weeks (85 Calendar days) for each case.
Application for the period of leave should be submitted well in advance.
9. TRAVELLING SCHEME
A travelling advance may also be taken by the concerned employee
keeping in mind, the entitlement and the length of stay planned. For this
purpose an advance form may be filled in, recommended by the
Division/Department Head and forwarded to Human Resource Division for
approval.
FOREIGN TRAVEL
In case of foreign travel, rules and regulations of the State Bank of
Pakistan will apply. Claims can be made according to he Daily allowance
prescribed for different countries by our principals.
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MEDICAL FITNESS PROGRAMME
The Company has a medical fitness programme whereby one in four
years each employee will undergo a complete examination at company's
expense on a schedule given by the company at specified clinics.
HOSPITALIZATION
In those cases where admittance to hospital is required total
hospitalization expenses, which include Doctor's fees, X-Ray charges,
Medicines, Laboratory charges etc., will be reimbursed by the company at its
description against proper receipts.
INSURANCE PLAN
The company has made arrangements to provide adequate 24 hour
insurance coverage of all its employees in case of death or permanent disability
while at work or traveling or at home.
SERVICE AWARDS
In recognition of loyal service, the company gives service awards to the
employees as follows:
1) Silver Plate: On completion of 10 years continuous service an engraved
silver plate or a gold ring is presented to the employee.
2) Gold Medal: On completion of 20 years continuous service a Gold
Medal is presented to the employee.
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Questions to PEL Officials
PEL has gone for downsizing when it was privatized because the
workers were not appropriate for the jobs. Now, the promotion criteria are
based on talent rather than seniority.
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SWOT ANALYSIS OF APPLIANCES DIVISION
Strengths:
* The only A.C. in Pakistan which comes in three different weights i.e.
1.5 tons and 2 tons.
* The only local brand offering 5 year compressor and year parts
guarantee.
* Interior of the Freezer is lined with aluminum sheeting, further protected
by a rust profiling.
* Good picture quality
* Built in transformer to control fluctuations in electricity.
Weaknesses:
* High electricity consumption
* Poor after sales service
* Too heavy to carry and bigger in size as compared to other A.Cs
available in market.
* Inconsistent supply of product during peak season.
* Limited range of model.
Opportunities:
* Collaboration with carrier of American to produce new A.Cs (Window)
with American technology in Pakistan.
* Reduction in Excise Duty in 1997
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* Import duties are increased to reduce price gaps between local and
imported A.Cs.
* The Government is taking active measures to stop smuggling of A.Cs
from Afghanistan.
* Institutional Sales of deep freezers like sales of PEL ULTRA to walls.
* Ban on smuggled T.V. in Pakistan could increase, sales of PEL -
Threats:
* The influx of smuggled A.Cs in Pakistan from Afghanistan.
* The price gap between local and imported A.C. is reducing due to
decrease in import duties.
* Stagnant economy of Pakistan is a big threat to A.C. market.
* High Price
* Tough competition with foreign brands
* Increased input cost.
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* Transformers have high short circuit withstand capability.
* High service life
Weaknesses
* Manufacturing cost is high as compared to competitors
* Improved quality standards is need of time.
* Instrument Transformer failure rate is relatively high.
* Temperature rise of transformers should be minimized at the design
state. Improvements in design need to be reviewed continuously..
Opportunities
* Government is planning to provide electricity in remote rural areas of
Pakistan
* ISO-9000 certification will enable the company to export energy meters.
* Power plants being installed in private sector provide a big opportunity
for switchgears.
* If payments are made by government PEL can improve the standard of
transformers.
Threats:
* High production cost can make the meters uncompetitive in competition
faced by Syed Bhais.
* Government taxation policies and custom duties.
* A huge amount of payment is not made by WAPDA & KESC. This has
hindered growth of switchgear plant.
* Heavy Electrical complex is a potential threat to the manufacturers of
transformers
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CONCLUSION
* The organizational structure of the company shows that the top
management is centralized as compared to middle and lower
management. The decision making is done at top level and the decisions
are enforced down the middle and lower management.
* The organizational structure is not tall but flat. Due to flat structure span
of command is large.
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procedures, personnel practices, physical facilities and over all
organization's condition. the information generated from this audit assist
top executive in ensuring that current policies and procedures relate to
the over all objective of the organization.
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PROBLEMS AND RECOMMENDATIONS
Problems
* There are not many career opportunities in the organization. Jobs which
are available are not very challenging. although the company offers
substantial monetary rewards but these rewards do not make the jobs
challenging.
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* Centralized structure has blocked the way for unique and creative
decision in middle and lower administration. They are used to taking
orders as decisions are only taken by top management.
Recommendations:
* PEL has recently adopted MBO. This will not only enable the company
to make the jobs challenging but also involve the employees to take part
in setting their objectives.
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