HUMAN RESOURCE MANAGEMENT

PROJECT REPORT
TEN HUMAN RESOURCE MANAGEMENT PRACTICES IN MNCs

SUBMITTED TO

SUBMITTED BY

Prof. NEHA SURI

SUBHASISH BHATTACHARJEE Roll:2K10IB24 SHIVAM DHARI Roll: 2K10IB23

INTRODUCTION
MOBILINK GSM has always been the market leader when it comes to introducing state-of-the-art

communication solutions for its customers. They are continuously adding up to the range of their Value Added Services, all for your convenience. The Value Added Services (VAS) Section will familiarize you with the new services you can now benefit from, which will give you all the freedom you need, making mobile communications more exciting, convenient and enjoyable. This section will walk you through services, which are not only useful but also cost-effective for both your business as well as personal use. These include the very basic yet indispensable services like Voice Mail to the more innovative and sophisticated ones like G-Mail.

PRINCIPAL AREA OF BUSINESS

Mobilink have 2 products and has about 53% market share.

1.

2.

TYPE OF CUSTOMERS
Major part of corporate sectors, Armed forces, Business community, Govt. organizations, Teen agars using JAZZ, Students. Shopkeepers, Bankers.

HRM DEPARTMENT
HR MISSION STATEMENT
To lead the organization in enhancing its human capital and creating a winning environment where everyone enjoys contributing to the best of ones ability.

Mobilink will achieve this by:

1. Inspiring and motivating its people. 2. Developing its people to strive for higher standards. 3. Driving an open minded and enterprising corporate culture where people through leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed. 4. Attracting and recruiting the best talent

Mobilink has a very defined and well structured department and its various policies of keeping each employee productive part of the organization are intoned with the corporate worlds requirement. Employees in the company are largely committed to their organization and have shown progress in the company. Employees are satisfied with the HR department of Mobilink GSM Company. Humans are the basic tool for having competitive edge in the market for most of the organizations and Mobilink is one of these. Mobilink has one of the best HR systems in Saudi Arab that gives it an edge over its competitors.

HR DEPARTMENT SECTIONS
HR department of Mobilink has three sections.

1. Employee services
Payroll information Leave and medical record Final settlements and provident fund Policies and procedures Employees record and recreation

2. OD and Effectiveness
Training plan Talent management Performance management Employees retention Orientation employee communication

3. Staffing and compensation

Staffing plan and HR budgeting Management trainee and internship program Interviewing and selection Headhunters Compensation, benefits and incentive

HR STRATEGIES
Human resource department is putting its efforts towards nurturing a winning corporate culture and building organizational capabilities by ensuring that its people at all levels are both able and willing to perform at consistently exceptional levels. At MOBILINK the people have been empowered to a large degree by minimizing out dated rules & regulations and plan to further eliminate the bureaucratic barriers to capitalize on their ingenuity and talent.

HR strategy refers to the specific human resource management course of actions that a company pursues to achieve its objectives. But how these strategies/policies/practices are formulated and implemented at Mobilink. There is a whole process behind this.

The top team continues to play its role in providing the guidance and support to people at all levels. The HR (peoples) function ensures that it leads the transformational change by nurturing a climate, which would help in converting the huge potential at disposal of the company into worldclass performance. The active and effective role played by HR in people development at different levels organizational, departmental and individual is considered in MOBILINK to be one of the most critical factors leading to the development of a winning corporate culture. The effort continues to be directed towards developing the skills of the shop floor employees, improving competencies of Business Support Officers (BSOs), and enhancing the leadership qualities of managers.

Like most big organizations, the development of HR Strategies is also done in accordance with companys mission. First, Strategic planners analyze what actually is the prevalent culture of the organization, what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of

business and its market, and on the basis of all the above analysis, companys strategic plan is established. In the end HR strategies are formulated in accordance with this overall business/companies strategic plans. Based on these HR strategies, HR policies and practices are also formed and implemented. Any abrupt change in the market requires the organization to follow this analysis in order to be successful. That why organizations continuously keeps on updating their strategies and policies.

Whole system for development of HR strategies/policies/practices is as below:

Mobilinks Competitive Environment Economic, Political, Demographic, Competitive and Technological Trends

Companys Strategic Situation

Companys Strategic Plan

Companys Internal Strengths and Weaknesses

Organizational Performance

Companys HR strategies

Formulation of HR policies

Formulation of HR practices

HR PRACTICES AT MOBILINK
These are few of the HR practices that I have learned from my resource person.
1. Planning 2. Recruitment 3. Selection 4. Training & Development 5. Compensation 6. Performance Appraisal System 7. Occupational Health and Safety measures 8. Career Planning and Development 9. Research and Development 10. Reward Management 11. Employee Relations

PLANNING
After the emergence of new telecom companies, market has become much more competitive and employees are less loyal to the company. Whenever they get any opportunity better than the existing job, they just opt for that. Which is there right, however Mobilink is aware of this fact and thats why they do not have any formal strategy for succession planning. They do consider the people from inside but proper succession planning is not practiced in Mobilink these days. When they entered into the market they used to have strategy regarding this matter.

RECRUITMENT AND SELECTION

In MOBILINK, the activity to fill a vacancy or a new job starts with the requirement communicated by the respective managers to the HR department. The HR department then looks for the possibilities of internal and external recruitment. 7

 Internal Recruitment:
In MOBILINK, internal recruitment is done for the managers of the higher grade and directors. When a position is vacant, the HR department views the past performance of the people working at lower levels than the vacant position and chooses the right person who is promoted to that position. At the manager and director level, the internal recruitment process is mostly carried out but when managerial position is vacant and a suitable person is not available for the desired post from with in the organization then external recruitment is carried out.

External Recruitment:
For external recruitment in MOBILINK, the line managers are required to make a requisition form for the job in which they have to mention their need taking in account the budget for establishment and salaries for the position of Management, Business Support Officers and Workers. Role profile for the specified job is also prepared matching up the requirement and the grade of the job. Training period is also specified on the requisition form. The requisition form along with the role profile is sent by the line manager to the functional director for his approval and then forwarded to HR Manager. The HR manager confirms the availability of budgets required for establishment, salaries and cost of advertisement for the job. After all this, the requisition form along with the job profile and the budget forecast is sent to the HR Director for his final approval. After approval from the HR director the HR manager and the line manager work hand in hand to prepare job and person specifications for advertising or giving to the head hunters.

The sources that MOBILINK uses to attract applicants are: Inviting applications through advertisement Recommendations from the head hunters Applications obtained from the data bank of MOBILINK where direct applications are received from time to time.

After a substantial amount of applications have been received, the line and the HR managers again work together to shortlist the applications. This is done by carefully going through all the application and by giving different weightage to the following criteria: Quality of early schooling Grade obtained Extra Curricular activities 8

Overseas travel and education Age Target University Relevant experience

The HR Department then issue call letters to the short listed candidates along with blank application forms by Date, time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. A two-member panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills. After the preliminary interview is cleared people applying for different jobs are tested in different ways. The following management competencies are assessed by a panel of cross functional assessors In the case of management selection: Communication skills Resource management Rational decision making Influencing Creative thinking Business development

The HR department is responsible for overall administration of the assessment centre including training of the assessors. . The HR department provides details of remuneration package and terms and conditions of service. The HR department also prepares appointment letter, service agreement and finalizes other documentation for service record.

Measures to improve competences and employee Skills:

In order to make its human resource productive and efficient, Mobilink aggressively work in developing its human resource capital through international and local trainings as well as structured employee well-being programs, making it one of the most sought after companies to work for in Pakistan. Mobilink conducts several training program in order to improve the competencies and skills of employees.

 Orientation:
Mobilink has a very well organized and well established HR department that practices all the HR strategies which are beneficial for the organization. As other departments are well established and operational for there matters, HR department is empowered to develop and plan what so ever is required for the company. Orientation and induction is required for employee familiarization with the organization and Mobilink is well aware of this fact. Affiliation with organization is only possible if the employees are informed about each and everything. When the employee is hired he get proper orientation and that orientation may exceed to few months until he get the feeling of affiliation and get to know the organization well.

Training:
Training is a planned effort by a company to facilitate employees learning of job-related competencies. These competencies include knowledge, skills or behaviors that are critical for the successful job performance. At MOBILINK, there is a continuous assessment of the technical and managerial skills. For the further enhancement of these skills formal training programs offered at all levels. The employees are provided with opportunities to put these skills into practice, in preparation for the move to a managerial role. Training is viewed at MOBILINK as a way of creating intellectual capital. Employees are expected to acquire new skills and knowledge, apply them on job and share this information with other employees. The training is cross-functional for sharing of skills. The employee are trained periodically either locally or abroad according to preplanned schedules. The objective of such training is to upgrade the capabilities of employees. If an employee attends an overseas training then he/she has to serve the company for a certain period after the date of completion of training subject to the cost and duration of training itself. In case an employee leaves the company during this period he/she will have to pay the amount specified at that point in time.

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TRAINING METHODS
On Job Training Special Training Sessions Team Building Problem Based Refresher Courses

Types of Training in Mobilink:

On a general basis the training done in Mobilink can be divided into two categories: Soft skill training Technical Training

Soft Skill Training:

Helping your employees develop a stronger base of knowledge on topics that affect their personal lives can make them more productive and less distracted in their jobs. Soft skill development courses in areas like personal finance and childcare can help your team better manage the most important areas in their personal lives. This may include the following things for e.g. Conflict management training People management training Communication skills Anger management Time management training Teamwork training etc 11

Technical Training:
This type of training has direct effect on the job of the employee. Specific skills are focused and developed accordingly. The engineering trainings of Mobilink are also included with this along with Customer Services training Sales related training Marketing and technology training etc.

All these types of training are done to enhance the employees job skills at the level he is at.

Training programs leads to:

Leadership Influencing Creative Problem Solving

Performance Appraisal:
Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in ensuring the success of the company through effective employee performance. A review is about ensuring people know what levels of performance are expected of them and then taking action to ensure they are trained and developed to perform effectively.

Objectives of Performance Appraisals

To measure the work performance To motivate and assist employees in improving their performance And achieving there professional goals To identify employees with high potentials for advancements To identify employees training and development needs 12

To provide a solid path for career planning for each individual

Appraisal Policy:
The intent of these appraisals is to review current job performance and responsibilities, set goals and discuss further opportunities with reference to past performance at Mobilink.

Performance Review:
At MOBILINK a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.

Appraisal categories
Appraisal category Definition of category % Of total numbers of employees which can be rated in this category 15% 10%

1.expert 2.very Good

3. Good

Indicates exceptional performance Indicate performance that consistently meets the requirements of the position, very good indicates the individual is on track for advancements Indicated performance that requires improvement (i.e. meet requirements without initiative or advancement)

8%

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Feedback:
Workers at MOBILINK are informed of their performance and given the opportunity to express their opinion over their own level of performance against each competence. This serves the following two main purposes: It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist that the reviewer is unaware of. By asking the worker what he sees to be his own strengths and development areas often help to reduce negative responses and makes planning training needs/inputs activities easier if the person is able to express for himself the areas in which he feels he can improve.

CAREER PLANNING & DEVELOPMENT

Mobilink faces much competition in the telecom industry so now they are focusing on career Management of their employees in which they enable the employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm. Career planning is the deliberate process through which someone becomes aware of personal skills, interests knowledge, motivation, and other characteristics; acquires information about other opportunities and choices; identifies career related goals and establishes action plans to attain specific goals. Career development is the lifelong series of activities (such as workshops) that contributes to a person career exploration, establishment, and success ad fulfillment. Mobilink gives promotion to their employees on the performance basis. The Mobilink HR department develops the employees career development plans in which the HR department predicts the next logical step for their employees within five years. Importance of Career planning in todays competitive world is as important as any other HR function. Retaining your valuable Human resource today is one of the biggest challenges that organizations are facing. So, HR needs to come up with new strategies. Career planning and development is one of the basic tool and strategy organizations are using for retaining their 14

employees. This function actually makes employees feel that they are important to the organization and Mobilink wants them to be at the top in their careers. However, at Mobilink this function is not fully performed or we should say this function is not performed satisfactorily. There are some policies on these but those are not recognized that well. One point of policy is found along with the compensation other with the recruitment. There should have been separate head for these policies. As far as the practices are concerned, all the employees were reluctant to talk about this during our interview. However, what we analyzed is that career development is practiced but not that openly. Specially, in case if some employee is considering of joining the competitors firm. If such is a case then organization has discipline policies for that even.

Promotion Policies
The new company structure is in five layers, comprising associates, specialists, managers, directors and chief officers------in that order starting from the bottom and working towards the top rung of the ladder. Until approved otherwise, it would be mandatory for the employees to spend the following maximum period at each level before a promotion to the next level depending upon availability of a slot: Associate Specialist Manager Director Chiefs 3-4 years 3-4 years 2-3 years According to the president decision According to the president decision

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REWARD SYSTEM
MOBILINK considers its employees not just as a cost but also as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force. The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated to all concerned.

COMPENSATION AND BENEFIT PLANS

Mobilink has a separate department for compensation. That department deals in staffing and compensation planning. First of all this department has all the information regarding who is being employed and how it is performing. What so ever promises are made to the employees, they know that. So its easy for them to design compensation plans because they know every employee which is being hired. Compensation and benefit plans are particularly based on performance. If performance is up to the standards of Mobilink and the employee has good conducts he is rewarded. After performance evaluation, results are rechecked and matched with the standards. Based on that, proper compensation plans are designed.

Salary policy
The company will pay salaries of the employees as fallows: o All new employees have to open bank accounts in specified banks prescribed by the company so that their salary will be credited at the end of each month. o After opening account with the bank employees should forward his account number to HR.

o Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day. o Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job.

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Promotions
Promotions are also reward management technique to motivate employees. In MOBILINK promotions are based on the merit and seniority (experience) basis. The one who performs well consistently over time gets reward in the form of promotion.

Bonuses
The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives. In Mobilink the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager of respective departments recommends a candidate from his section for the reward purpose to HR.

Reward Categories at Mobilink

Intrinsic and Extrinsic rewards include: Smart/Quality work Exceptional performance in a project Targets achievements Special assignments Medical care Life insurance Vacations Relocation Credit advance policy provident policy/advance against provident fund and a capping of gratuity Recreation Club Policy Travel Education assistance policy Mobile phone Business mobile phone policy Official Blackberry Policy Life insurance Medical entitlement

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HEALTH & SAFETY POLICIES

The safety of employees is everyones responsibility. Accidents, precaution and efficient work go hand in hand. All levels of employees have a primary responsibility for the safety and well being of all of us. Therefore, interest in practicing safety prevention must be encouraged by: a) Setting good examples. b) Acting upon safety records. c) Reviewing safety programs. d) Holding personal interviews or group conferences. e) Starting activities that will stimulate and maintain employees interests. No phase of operation of administration is of greater importance than accident prevention. It is the policy of the Company to provide and maintain safe and healthy working conditions and to follow operating practices that safeguard all employees and result in safe working conditions and efficient operations. Proper First Aid Kit will be available at all Mobilink Offices including remote locations. There is no need for such measures at Mobilink as maximum jobs do not expose you to the health hazards and are not such that require safety measures. However, there is a tendency of being safe in every human and that shows when you visit some Mobilink officer to meet someone of a high designation level. You need to fulfil various safety measures.

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EMPLOYEE RELATIONS
It is the company policy to ensure that the required standards of performance and conduct are maintained. The disciplinary procedure is intended only as a statement of Company policy and management guidelines. It does not form part of the contract of employment or otherwise have contractual effect.

Discipline Procedure:
Warning may be addressed to the employees verbally and in written through their immediate supervisor. The warning shall refer to the contraventions committed by the employee and will serve to remind the employees the he/she abide by the company rules and regulations in performing his/her work, and that this contravention should not be repeated in future. A written letter may be addressed to the employee describing the contravention committed. The employee will also be notified that a higher penalty may be inflicted on him in the contravention is repeated in future. The warning letter may be registered in the employees personal file .issuance of written warning can be recommended by the respective supervisor and HOD. It will be issued by the HR department after approval of VP HR. Deduction from the salary will be an amount of employee salary depending on the type offence and decision taken accordingly. The employee may be suspended from performing his or her duties for a period of time as conveyed in written. Unauthorized absence of more then two times in Six month can result in termination of employment.

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An employee who is absent from the job with out satisfactory explanation is considered to be an unauthorized unpaid absence.

Discrimination, intimidation and harassment based on sex, race, religion, age, color, disability, sexual orientation and cultural background is prohibited at the workplace.

The Head of Department should maintain direct control of all disciplinary records. A copy of all records must be placed on the employee's personal file in the Human Resources Department. All warnings will remain upon the employee's personal file indefinitely, but will normally be disregarded for disciplinary purposes after the following periods: Stage 1 - Verbal warning: Stage 2 - Written warning: Stage 3 - Final written warning: Stage 4 - Dismissal 03 months 06 months 12 months

These time periods may however be extended in appropriate circumstances taking into account the nature of the offence. The time period will commence from the date of the letter/memorandum confirming the warning, even though any specified time for improvement has expired.

Penalties:
Employees services may be terminated in following cases.

1. Insubordination
Willful failure to carry out reasonable orders including the performing of job assigned by supervisor.

2. Dishonesty
Falsification of any official company records will subject to the termination without prior notice.
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3. Violation of Safety Rule

Failure is refusal to conform to safety practices or the misuse of safety device.

4. Violence
Causing a disturbance on company property resulting from fighting.

5. Profanity or Indecent Conduct

The use of profane language or engaging in immoral conduct.

6. Intoxication
Coming to work under the influence of drugs or bringing drugs into the facility.

7. Willful Damage to Property

Careless spoilage, destruction of company property or material.

8. Misrepresentation
Deliberate misrepresentation of past history or other important matters.

9. Accepting Money or Gift

Taking advantage of ones positions to accept money or gift is against the rules of company.

MOTIVATION
The company recognizes the importance of making people drive towards their goals and the basic step towards this is made through recognizing the value of importance that the company gives to its employees. MOBILINK has a set of financial rewards, medical, dental, vision and life insurance, retirement plan, educational refund assistance, paid vacation days, family and work life balance benefits and profit sharing plan, Annual bonus opportunities, company cars etc. other ways in which employees are motivated are: Employees are safe in knowing that they will be rewarded for any exceptional work. This reward is not only monetary. It is accompanied by the employee being given recognition and greater empowerment.

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Employees are given a very beautiful and healthy work environment. Special attention is given to make the physical environment most productive. This is why MOBILINK offices are considered to be the most well decorated and organized. As we know MOBILINK has a desire to promote the high achievers from with in the company. Positions are given on merit and are transparent and fair in nature. There is no special treatment. Therefore each employee knows that he can aim for the top and actually get there. This has proved to be a great source of motivation for the employees of MOBILINK.

CONCLUSION
To conclude Mobilink has a strong HR system. That is the reason we didnt found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. There are some minor discrepancies but they are adjustable with little effort.

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REFERENCES
Mr. Mousier Javed Associate Organizational Development Human Resources Management. MOBILINK, F-8/3, Abudhabi, Dubai.

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