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MBA SP09-B4 “A”


COMSATS Institute of Information


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A million thanks to the Almighty Allah, for his blessings to enable us to fulfill
this training, but interesting job for the completion of our project.
I would also like to take this opportunity to extend my appreciation and
gratitude to MR. GHULAM HUSSAIN without their counseling and parallel
skills I would have never been able to prepare this Project.
We also want to pay a bundle of thanks to each and every person who has put
indeed effort to make this project possible. It is also our duty to pay thanks to
our parents for the moral and financial support.
We owe special thanks to PAK ELEKTRON LIMITED Company for
assistance, Development Work and data collecting. And especially We also
want to say thanks to HR Executive (R & S) FARAZ QAYYUM (Human
resource department).
Finally we owe many thanks for the participation of all group members and
their coordination to accomplish the task.

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Project is given to cover all the aspects about a specific product or service
according to the topic of project. We have made project on “Human
Resource practices”. And we examine and explained the human resource
practices of Pak Elektron Limited. Which is one of the most famous and large
electronic company .In our analysis of human resource practices we have
covered all the important parts of the HR department of PEL.First we
discussed about the history of the company, that how and when company
established and started its production. We have discussed its vision,
mission, and objectives. As we were conducted our research on human
resource practices. So our main focus was on HR department. We explained
the history of the HR department in PEL. After that we discussed about the
working or functional areas of the company. And also explain the
management structure of all the departments. After this we mentioned all the
functions of the HR department performed in PEL.We discussed that how
Hr department do planning about recruitment and selection procedure. How
company makes its job description form. After that we also discussed the
training and development programs. We also explained why there is need
of training and development .how Company trained the new employees. And
how company making programs for the existing employees if there is any
performance gap. After that we justify how performance management and
appraisal system work in company and what steps are made by the
Performance management to make the performance good of employees. And
how the company evaluates the performance of employees on annually, Semi
annually and quarterly. After that we elaborate the compensation and
benefits system of Employees. How employees are made satisfied by giving
incentives. And in last we mentioned the relations of management with
employees and labor of company and what are benefits are given to labor by
the management.

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1.1 History

Pak Electron Ltd. (PEL) was established in 1956 with the collaboration of
M/S AEG Germany .And PEL is one of the oldest industry in Pakistan among
those who have involved in the production of electrical equipments used for
different purposes.
In 1948
The Saigols migrated from Calcutta and initiated their business in Lyallpur
(later named to as Faisalabad), the textile city of Pakistan, under the banner of
Kohinoor Industries Limited.
In October 1978
The company was taken over by the SAIGOL GROUP, which is one of the
leading industrial and commercial groups of Pakistan.PEL is the industry in
Pakistan whose products and services is not only familiar in Pakistan but also
have a great wattage In the foreign industries. PEL products are reorganized
as the quality and valuable products in whole world. Its inspection tells that
they from its day of establishment till now have been made a great
development in different products by using advance technology. From its
establishment, the company has been working for the advancement and
development of engineering know-how in Pakistan. And its history also told
that PEL is not only doing researches that how they can use and produced
best technology but also producing many technicians and engineers to cope
with modern technology and development.

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PEL has been continuously adding new products to its range. As a result, PEL
has registered a significant increase in its sales volume, during the last ten
In 1978
The Saigol Group of Companies purchased major shares of Pak Electron
Limited. At that stage the company was only manufacturing transformers and
switchgears. And after the making profit in those products with the help of
Saigol Group management took its 1st step towards the production of air
In 1981
BY technical collaboration with the help of Germany general corporation PEL
introduced the window type air conditioners in Pakistan Industrial market. Ever
since their launch, PEL air conditioners have a leading position in the market.
PEL air conditioners cooling performance has been tested and approved by
Copeland and ITS USA. Today, PEL air conditioners hold approximately 45%
market share.
In 1983
Production of DOUBLE SIDED PLATED THRU HOLE PCBs initiated.
In 1986-87
The company started manufacturing of refrigerators in technical collaboration
with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are
also in great demand. Today, PEL Crystal has 30% market share. Its cooling
performance is tested and approved by Danfoss, Germany and its
manufacturing facility is ISO 9002 certified by SGS Switzerland.

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In 1987
Within the refrigerators manufacturing PEL started to manufactured deep
freezers with technical collaboration of M/s Ariston of Italy. Because of
durability and high quality, PEL deep freezers are the preferred choice of
companies like Unilever.
With technical collaboration of NECCHI of Italy, the company started
assembly and manufacturing of compressors for refrigerators and deep
In 2006
As the technology was going to be more and more advanced customers
demand was shifting from window type AC to more small and comfortable Company started to manufacture the spilt Air conditioner to cope with
the customer demand and changing industry environment.
When spilt air conditioner came in market it was well received by customers so
by this company started to expand its products not only in local market but
also in at national and international market.
Now a day PEL have expand its electrical appliances to export at national
market n making a large profit for company as well as for country to.

1.2 Vision

“To excel in providing engineering goods and services

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through continuous improvement.”

1.3 Mission Statement

 To provide quality products & services to the complete satisfaction of our

customers and maximize returns for all stakeholders through optimal use of
 To focus on personal development of our employees to meet future
 To promote good governance, corporate values and a safe working
environment with a strong sense of social responsibility.

1.4 Objectives

The objectives and mission for which the company is established are as
 To carry on the business or businesses of manufacturing, selling,
installing, maintaining designing and dealing in all kinds of electrical

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 To carry on any business whether manufacturing or otherwise which
maybe found convenient to undertake in connection with or in addition to
any of these objectives mentioned above?
 To do all such things that is incidental for the attainment of the above
objectives or any of them.
 To produce high quality and standard products.
 To produce equipment to be used in numerous projects of national
 To secure a high share / quota of WAPDA’s demand for power
 To produce skilled workers and technicians through its apprenticeship
schemes and training programs for engineers and technicians.

1.5 PEL Company Structure

Pak Electron Limited (PAEL or PEL) is the pioneer manufacturer of electrical
goods in Pakistan. The company is listed on all the three stock exchanges of

Principal Activity

 Manufacturing
 Sale of electrical capital goods and domestic appliances.
Now, PEL is operating a single business entity without any division.

1.5.2 Lahore Factory

In Lahore Factory, Refrigerators, Transformers, Energy Meters, and
Switchgears are produced. Previously, Window AC and Deep freezers were
also produced in Lahore Factory but PEL quit these operations. However, PEL
has restarted the production of Deep freezers once again at Lahore factory.

1.5.3 Divisions
By divisions mean company performing its activities in two major departments
which are

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 Appliances Division.
 Power Division.
 Appliances Division:
PEL’s Appliances Division is the flag carrier of the Saigol Group involved
in home appliances manufacturing.
Air conditioners.
 Refrigerator.
 Deep freezers.
 Microwave oven.
 Washing machine.
 Generators.
 Power Division
 Transformers
 Switchgears
 Kiosks
 Compact stations
 Shunt capacitor banks
 Energy meters
 Generators
All these electrical goods are manufactured under strict quality control and in
accordance with international standards.PEL is one of the major electrical
equipment suppliers to Water and Power Development Authority (WAPDA)
and Karachi Electrical Supply Corporation (KESC), which are the largest
power utilities in Pakistan.
Over the years, PEL electrical equipment has had been used in numerous
power projects of national importance in Pakistan.
In spite of stiff competition from emerging local and multinational brands, PEL
Group's appliances and electrical equipments have remained in the spotlight
due to constant innovation. Strategic partnership with multinationals of repute
have enabled the PEL Group to incorporate new technologies into existing

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product ranges, thus giving the Pakistani market access to innovative,
affordable and quality products.
Over the years, PEL electrical equipment has been used in numerous power
projects of national importance within Pakistan. PEL has the privilege of
getting its equipment approved and certified by well-reputed international
consultants such as:

Preece, Cardew and Rider, England

Harza Engineering Company, USA
Snam Progeti, Italy
Societe Dumezm, France
Miner & Miner International Inc. USA
Ensa, France

1.6 Product and Services

1.6.1 Products

 Refrigerators
 Deep freezers
 Microwave oven
 Transformers
 Generators.
 Energy Meters
 Switchgears
 Kiosks
 Compact stations
 Shunt capacitor banks
 Air conditioners.
 Window AC
 Spilt Air conditioner
 Washing machine.

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1.6.2 Services

 Major electrical equipment suppliers

 TO Water and Power Development Authority (WAPDA).
 Karachi Electrical Supply Corporation (KESC).
 Shop fitting services
 Shop fitting suppliers
 Shop fixture.
 PEL Repair center

1.7 PEL Functional Areas

Pak Elektron
Pak Elektron Limited
Purchase department.

Manufacturing department
Quality controldepartment
Human resource department
Human resource department
Marketing department
Sales Department. .

Finance department.

Information technologydepartment

1.7.1 Manufacturing Department.

This department involves the manufacturing of different products. Actually
this department is also called the assembled department. Because different

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parts of products are import from specialized countries and assembled or
joined in this department and than final products are send to market for selling.

1.7.2 Human Resource Management Department

The department is engaged in managing the human resources the company
has. All the basic functions of HR are performed by this department. But the
most common function of HR department is the selection & recruitment and
This department is further divided into sub department like Research and
development department .This department involves that how they can cope
with advance technology and how can train their employees to cope with this
new technology.

1.7.3 Quality Control Department

This department takes action in quality control programs. Make strategies and
planning that how they can make their products qualtiable and valuable .and
how they should follow the international standards of quality control of PEL to
make their more safe.

1.7.4 Marketing Department

Marketing department is engaged in performing all the marketing activities
like advertising, promotion and make sure the availability of the products in the
markets of both national and international levels.

1.7.5 Sales Department

This department involves the activities of sales. That how much price should
be fixing of a product according to its manufacturing cost. Perform his activities
regarding to wholesalers that who will deliver its products to customers and
markets. This department also has a sub department named
As export department .this department will manage all activities relating to
export of products, like Air conditioners, refrigerators, and generators.

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1.7.6 Purchase Department
This department involves all the activities relating to purchase of raw material,
This department also has another sub department import department .this
department involve in activities like from where they should import raw
material and different products from specialized countries like Japan,
Australia, Malaysia, China, England, Germany, India, and Italy.

1.7.8 Finance Department

This department involves the activities of Finance. That how they can
manage their inflow and out flow of cash. From which institutes they can take
loan. How much interest they have to pay on loan and how much finance
ability they have to purchase the assets of company.

1.7.8 Information Technology Department

This department take information about the modern technology .that how can
organization can take information about new advancement in technology .and
what are the changing are occurring related it technology environment.

1.8 Management Structure

Management structure tells that how the management staff control the whole
company in different. This structure also told that at which techniques each
and every department is controlled, checked and analyzed not only by the
relevant manager but also by the other executives of the company. This
structure also explains that how each department of the company is
connected with the management staff from its line staff. How work activities
are divided among the middle and line staff.
Figure 1 illustrates that how every department is interlinked with each other.

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Figure 1



Human HOD Of
Quality Marketin
Productio Resource finance
Purchase Control department g Sales
Manager n or plant departme
manager manager Manager Manager Manager

Human manager Accounta Loan
Import resource marketin Export nt funding
APM AQAM manager manager
Manager g manager manager

Advertise Assistant
OF Import Per motion
Team Supervi ment of export
Manager manager
leader sor manager manager

Assistant Assistant
purchase of sales
Manager Supervisor Supervisor Supervisor manager

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Purchase Department

Figure 1.1

Purchase Manager

Import manager

Assistant OF import

Executive import manager

Assistant Of purchase

Executive purchase manager

Manufacturing Department

Figure 1.2

Process Manager

Assistant OF plant manager

Team Leader


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Quality Control Department

Figure 1.3

Quality Assurance Control


Assistant of Quality Assurance




Human Resource Management

Figure 1.4

Human resource manager

Assistant of HR Manager

Executive OF HR Manager

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1.8.5 Marketing Manager

Figure 1.5

Marketing Manager

Advertisement Manager

Per motion Manager

Assistant OF per motion


Assistant of advertisement

Assistant of Marketing
Executive Marketing

Sales Manager

Figure 1.6

Sales manager

Export Manager Assistant of Sales manager

Assistant of Export
Executive Sales Manager

Executive Export Manager

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Finance Department

Figure 1.7

Finance Manager

Loan Funding Manager Accounts Manager

Assistant of Loan Assistant Of accounts

Manager Manager



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2.1 Back Ground

Human Resource Management is the future of organizations all over the
world. Without a developed HR system, no country can compete in the global
arena, and a country like Pakistan is no different, it needs Human Resource
Management for its future growth. Today, therefore in truly world-class
corporations the HRM function has assumed a greater significance and plays
a comprehensive role in organizational management. In the 1980’s and early
1990’s the term HRM came into academic horizons and gradually used by the
practitioners and researchers worldwide. The last two decades have seen a
marked change in HRM particularly in those activities, which involve acquiring,
developing motivating and utilizing human resources actively in the business.
Human resource management is the only one department in the organization
who deals with human resource. Its basic objective “is to provide the
required human resource to organization”. So to provide the human
resource to organization establishment of that department was essential. The
major purpose of HRM is to increase and improve the productive contribution
of personnel to the organization in more ethical, social, and administratively
responsible way. This purpose emerged from commonly called industrial
relations, personnel administration, industrial psychology and personal.
The 21st century will bring with it enormous opportunities but also enormous
pressure, if the companies will not improve the productivity of the people and
treat them “human being’ which are the vital objects of all the economic
activities leading towards development. Now there is worldwide consensus on
human resource being one of the major means of increasing efficiency,
productivity and prosperity of the firm.
In order to meet the requirement of right employees at right time and at right
time PEL established this department from its establishment to till now
providing the best employees to company. This department works that how
they can hire the best people and how they can cope with modern technology
and how they can made their employees to use this modern technology. The

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Human Resource Department at PEL is engaged in the areas of Recruitment
and Selection, Training and Development, Performance Management, and
Organizational Development, and strives to align these functions with the
overall business strategy. We place great emphasis on people development
so that people and the organization perform at maximum capacity in a high
effective manner.

2.1.1 Vision
To achieve excellence through innovative HR practices and continuously
exceeding our people expectations

2.1.2 Mission
Our mission is two-fold:
 To mange talent and build capabilities of our people thus enabling them
to deliver sustained performance.
 To facilitate them in creating a collaborative work environment that
develops a culture of continuous learning.

2.2 Functions OF HR Department

 Human resource planning.

 Job Analysis.
 Training and development.
 Rewards and compensation.
 Industrial relation.

2.2.1 Human Resource Planning

Human resource planning is the 1st and most important function of the
department. It is the base of all other departments. As it is deal with the
demand and supply of human resource to different departments as well as in
human resource department. “Human resource planning is the blend of Art
and science. that ensures the effectiveness of management of HR by
providing quality and quantity of employees when and where is necessary.”

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As definition shows that this department has linked with quantity (that how
many people are required) and quality (that which type of people are
required).Human resource planning depend upon the functions performed by
the PEL. So according to operations we arrange and made all planning.

2.2.2 Job Analysis

Job analysis deal with quality of people .That which type of people or
employees are required by department.
Through job analysis we also determine that what will be duties of the hired
person and which type of skills he should be contain for the Job.
The information is usually collected by communication with the required
department and also by interviewing of employees individually and also in
group forms.
So for selection of employee in PEL first they analyze their whole company,
conducted interview that where which type of people or employee they
required. And than they made their job descriptions and specifications. Job Description Form

This form contain information like if PEL company want to hire a person in HR
Department than how they will describe all their requirement for the applicants.
This form tells first about Title of the Job

Purchase manager Job identification

He will be at manager post.
He will assist or reported to General Manager of PEL Company.
His under employees will be assistant manager, import manager and assistant
of import manager.

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His duty involve all the activities related to purchase of raw material,
machinery and also will inspect to whom companies they will import either in
Pakistan or from foreign countries. Job environment

His job timings will be of general time but can be called at any time for
emergency meeting and dealing.
He will be provided by the official laptop, cell phone with official Number.
He will be provided by convance facility.
His salary package will be of 70,000. Job specification

The required qualification of the candidate should be specialized in Marketing
5 years of job experience.
He should have ability how they can do best deal for purchasing of products
according to their finance resources.

2.3 Recruitment and selection

Recruitment is a systematic procedure to locate and attract or encouraging in
order to fulfill the vacant position.
And selection is the most suitable way or systematic procedure to select
more suitable candidate.
.The recruitment and selection decision is of prime importance as obtaining
the best possible person to job fit which will, when aggregated, contribute
significantly towards the company’s effectiveness. It is also becoming
important, as the company evolves and changes, that new recruits show
willingness to learn and ability to work as part of a team. The company aims to
recruit and select staffs which are needed to achieve its strategic directions
and who show attributes that are consistent with the organization’s directions
and culture. The purpose of recruitment and selection is the cost efficiency to

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make the performance of company more effective. As under the employment
legislation every person should have the equal opportunity for job.
So PEl Company also hiring the best staff according to employment legislation
and to make operational process more effective and efficient by lowering the
cost included direct and indirect cost both.

2.4 Training And Development

As the world is going to be more globalize so environment changing are
occurring at very fast rate. Mostly these changes are related to the change in
technology so to prepare the employees for current and future job; different
training and development programs are made or arranged by the HR
department to achieve the goal of the organization.
PEL Company also organized different training and development programs for
their employees to cope with the current and future job changing.

2.5 Compensation And Reward System

Performance and reward system is essential for every organization to keep
the employees motivate and to encourage them to work at the work place.
This system is work by measure the performance of individual and by group of
employees. Their team work performance, their hardworking, devotion are
give to be rewarded. Its obligation on the organization to give the bonus, extra
allowances, incentives to encourage them more for their work.
PEL also have a compensation and reward system to make them motive for
achieving the goal of the company.

2.6 Industrial Relation

Industrial relation are the relation between the management and the
employees that how they can make their work place more safe and valuable.

2.7 Recruitment and Selection

For achieving the organization goal and targets it’s essential that its staff
should be competent towards the target. So recruitment and selections plays a

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very important role for the selection of employees. This selection finds the
current practices and decision making in recruitment and selection. We cannot
discuss how recruitment and selection take place without asking why certain
techniques are used in preference to others. According to Human resource
practices these procedures are not very simple for filling of any vacancy.
Once the organization’s human resource needs have been determine, they
necessarily have to be filled. These staffing activities include the following.
 Recruiting job candidates
 Selecting the most appropriate job applicants for the available job
Both procedures must be done in accordance with Equal Employment
opportunity (EEO) guidelines. Recruitment is one of the core activities of any
personnel department. Before the personnel department can proceed with the
recruitment, two further documents are necessary.
Competition for the 'best' graduates requires employers to have a clear idea of
what they mean by 'best'. Recruitment needs to send a strong, distinctive
message to these people.
 The Job specification
 A person specification
The line manager should draw these up and it may be necessary for a
member of personnel department to assist. Specifying the job and the type of
person required is a line management responsibility.

2.7.1 Recruitment And Selection Process

PEL Company follows the whole procedures for which are acceptable at
national and international level both. Mean they follow the standard operating
procedure for recruitment and selection.

2.7.2 Seek Information

First they get the information about the relevant department in which the
vacancy is available.

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2.7.3 Send Information To HR Department
Departments fill the slip named Man Recognition Slip in which they mention
all their requirements about employee needed like age, when and why
employee require, experienced or fresh employee, insurance and car etc.

2.7.4 Approval of Form

Then Head of Department (HR) send the slip to chairman and Managing
Director. From their approval further procedure start.
Potential candidates may come from an internal Side of the organization, or
from the external job market. The Information is reached through channels
such as recruitment advertising, employment agencies, professional
associations or word of mouth.
There are two approaches which can be used for hiring of potential employees
 Internal Sources.

 External sources.

2.7.5 Internal Resources

For a simple and ordinary job Organization with strong culture mostly look for
school leaving and bachelors .but for high level post or job they usually prefer
the internal job market.
So PEL Company Do This by job posting and employee referral programs. Job Posting

These methods of prominently displaying current job openings extend and
open invitation to all employees in the PEL Job posting serve the following
 Provide opportunity for employee growth and development
 Provide equal opportunity for advancement to all employees

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 Communicate organization goals and objectives and allow each
individual the opportunity to help find a personal fit in the organizations job
structure. Promote The Employees With In The Company

By analyze the Personnel replacement charts HR manager evaluate the
performance and promotion ability of inside candidate for the most important
Usually this option is for firm’s top positions. The management creates a card
for each position, showing possible replacements as well as their present
performance, promotion potential, and training.

2.7.6 External Sources

When company does not able to find the appropriate person from the internal
side of the organization according to the job specification form than they find
the best person from the out side.
External selection is done by the Equal opportunity for every person. This can
only be achieved through public and open recruitment. The likelihood of
attracting 'suitable' applicants depends on the detail and specificity of the
recruitment advertisement or literature. Key factors such as salary, job title,
career and travel opportunities obviously influence response rates.
PEL does not always produce enough qualified applicants internally so it
needs external sources including bringing in people with new ideas. The
external method includes media such as newspaper. Giving Advertisement In News Papers

The purpose of the ad is to attract those applicants who are suitable for the
job. The body of the advertisement contains a brief description of the job, a
brief description of the person required, including the essential requirements of
the person specification. Followed by the benefits offered and any other
attractive features of the job. PEL Company also considers the Cost factor for
giving the Ad in news paper. That this ad should be cost effective.

Comsats Institute Of Information And Technology 26 Giving Advertisement On Internet
One of the main recommendations is incorporating a link from the corporate
home page directly to the careers section on the company's Web site.
Another Best Practices feature is to make information available to candidates
about a company's culture and work environment.
It is critical that all companies make the most effective use of their corporate
career Web sites, to brand their companies with potential candidates, who
may also be customers and shareholders. Benchmarking practices against
those of the Fortune 500 provides a useful measurement and perhaps
motivation to implement best online recruiting practices.
A large and fast growing Rate of employers use the Internet as a recruiting
tool. PEL recruit electronically through the Internet.
They give ad on there web side
roozee.Com. Employee Referral Programs

Word-of-mouth applicants are likely to stay longer and may be more suitable
than recruits obtained by advertising. But word-of-mouth is discriminatory,
since it restricts applications to established communities and excludes recently
arrived minority groups who have not had time to become part of informal
This method is a low cost per hire way of recruiting, even though the
candidates, in many cases, come from outside the organization. This method
is useful for finding applicants in short supply and managerial candidates.

2.8 Selection
The recruitment Procedures should have attracted a pool of applicants from
which selectors can make their choice. If a job analysis has been conducted,
the criteria or competences which are deemed necessary have been
identified. These may be well defined and focused on experience and skills. as
in the 'right person' approach; or general and related to education,

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intellect and personality for the 'cultural fit' and 'flexible person' models
after the candidates have been identified, and they must be selected.
In PEL common procedures use in selection include
 Obtaining completed application forms or resume
 Checking education, background, experience and references
 Taking Tests & Interviewing the candidates.
 The selection procedure results in a match between a candidate’s ability
and the skills required by the job.

2.8.1 Tests
PEL test only the external employees not the internal employees, because
they have the complete data of internal candidates. Tests provide use full
back-up information and are an aid to selection but they cannot entirely
replace the interviewer. It tests the candidates only for specific positions not
for all the vacancies.

2.8.2 Interview
PEL conduct behavioral interviews to screen out the candidates. Behavioral
interview is a series of job related questions that focus on how they reacted to
actual situations in the past.
They also conduct individuals’ multiple interviews. The HR management
conducts the interview. Also the related department conduct interview. Their
main purpose for the interviewer to ascertain if the candidate is suitable for the
vacancy, and for the candidate to determine whether the job is suitable for him
or her. They have very specific panel for conducting interview. In which the
executives of the related department are present.

2.8.3 Medical Test

The candidates who passed the interview are passed through medical test PEL
have linked with so every candidate got examined there and his report are send
to department if candidate have every test clear than he selected for job.

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2.8.4 Back Ground Reference
The person who have been selected their back ground references are checked.
So in this way PEL Company select the required person for the required
vacancy. And person designated as the employee of the company.

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At every organization to cope with the new techniques training of new and
exiting staff is essential. So it is the second function of the HR department to
arrange the training and development program for the employees. These
qualities can be bought from outside the organization through recruitment,
consultancy and subcontracting, or grown by training and developing existing
Is a systematic procedure to equip or impart the knowledge and skills needed
to competently perform the current job.
Is a set of planned activities designed to prepared employees for their future
job role.

3.1 Training At PEL

Training in PEL. Is basically of two types.
 Training to new employees
 Training to existing employees
 External training
 internal training

3.1.1 Training Of New Employees

PEL have a very descriptive introduction plan for the new employees.
The training of new employees basically consist of two parts.
 Induction or orientation.
 Socialization

Comsats Institute Of Information And Technology 30 Induction Training
Systematic process to educate new employees about the organizational
philosophy and policies. And also concern about the job department and job
duties that will be perform by the employees.
Philosophies included the destination, target and aim of the company. It also
consists of the mission statement knowledge, core values, vision, culture,
norms, values shared by the members.
Policies included the time, shift time, compensation etc.
And knowledge about the concerned department in which the person has
been required to perform their duties.
Department training over an initial period of one to six months shall follow this. Days Orientation Program

They basically have three days Orientation program for new employees in
which they describe to employees with basic background information about
the firm such as:
 Welcome note from management director
 Mission, Vision, Values
 Brief introduction of PEL
 Company profile
 Organization
 Product profile
 General guidelines
 The working hours
 Head office
 Plant
 Canteen mess
 Bank account details
 Fair price shops

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 Traveling
 Department visit
 Meeting with HOD
 Colleague
 And other miscellaneous things.
General Guidelines
Working Hours
Head Office of PEL
 08:30 TO 04:30 from Monday to Saturday.
 They (essential) staff of HR, GS and sales will be on duty for day-to- day
 Lunch and prayer is 13:00 to 14:00 hours.
 Attendance currently is to be marked on the attendance sheet
maintained by GSD and placed on reception.
 Operations at plant rotate clockwise in three shifts.
 Timings for morning shift are 08:30 to 04:30 from Monday to Saturday.
Canteen Mess
 Facility is available at head office as well as at Factory.
 At head office expenses are deducted from the salary.
 At plant expenses are paid directly as well as deducted from the salary.
 Employees can check their category from the relevant accounts section.
Bank Account Details
Salary is paid through bank to all the company permanent employees as well
as contractual staff. HR & Finance departments, regarding opening of account
in the designated bank nearest to your residence/ place of appointment is
available for coordination.
Fair Price Shops
Company has provided fair price facility to all its employees where company
products are available at subsidized prices.

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Different quantities are allowed to different category of staff on monthly basis.
The shops are located at head office, plant, and Jhang and Arifwala zones.
Timing may vary from season to season or otherwise.
Company allows all its employees the travel facility according to his or her
category subject to approval from respective HOD for its business
development. See the relevant portion of HR policy pertaining to this section
Who Supervises The Training Program
Internal management supervise orientation program. This job has been
given to their Manager Training and Development who made the panel of
people to supervise orientation according to the nature of job.
Procedure Of Orientation
According to Managers the new employee has been rotated almost in every
department in his orientation so he is able to practically see the things
happening in the organization. It helps reduce the new employees jitters and
the Reality shock he or he/ she might otherwise experience (the discrepancy
between what the new employee expected form his or her new job, and the
realities of it).
Departmental Training
After induction training the employee has been shifted to the department he
was employed for, to go through departmental training and the training of
other relevant departments whom he has to interact in his day-to-day
activities. This basically is the start of his probation period.
On The Job Training
PEL always prefer to give on the job training to the new employees because
they think that on the job training is the best way to make employees learn the
skills required to perform different tasks.

3.1.2 Training Of Existing Employees

For training of existing employees some points are followed by the PEL

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 Training need Assessment
 Training design.
 Training implementation.
 Training evaluation Training Need Assessment

First company analyze where the performance gap is coming. Its purpose is to
identify where training can make major contribution to improve organizational
performance. It sets out the answer of the following questions about the way
the organization is functioning now and is expecting to function in future:
 What?
 When?
 Where?
 Why?
 Who?
 How?
By asking and searching for all these questions they will be able to find
answers they will discuss all problems and solutions. Important issues need a
planned response and the cases of problem need to be established and
possible solution identified. Training is one possible response and should be
selected only when it is most appropriate. Through the training need
assessment the company can be able to find the problems that can be
happened in he future and same they can take action for the potential problem
before the time. So PEL company also use the proactive approach to safe
their company from the future and unanticipated problems.
The process of conducting a TNA will allow decision to be made, on the basis
of evidence, about where training will offer the best investment.
It will strengthen for funding training and allow priorities between training need
to be established. It will also provide information upon which to judge whether
resources currently employed in training to be used more effectively.

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TNA requires the collection, interpretations and analysis of information from
across the to-day contact with the various activities need to be sought,
compared, interpreted and use.
Training Need Assessment eventually has to be dealt with at individual
level. The question that needs to be asked is whether this person
performance is satisfactory. If the answer is NO then come form of training
may be considered. If the answer is YES then training for the development
may be worthwhile for those with potential. This is usually the responsibility of
line manager who sets the performance required and judges whether it has
been achieved.
A training gap can be set to exist if the performance deficiency is due to lack
of knowledge and skill. The limitation of this individual approach is that it can
result in demands for training fro every employee. These demands may be for
training to improve current performance or develop the potential of the
individual. Training Design

After finding the reasons for the performance gap PEL Company design how
they will overcome this gap. Training Ability

For making the training design HR Manager OF PEL Company also considers
the factors that how much knowledge and ability their existing employees have
already. And in which fields they have to be more trained.

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Performance appraisal is a process for establishing shared understanding
about what is to be achieved, and an approach to managing and developing
people in a way which increases the probability that it will be achieved in the
short and long term. The purpose of performance appraisal is to improve the
organization’s performance through the enhanced performance of individuals.
The main objectives of performance appraisal are:

 To review past performance

 To asses training needs
 To help develop individuals
 To audit the skills with in an organization
 To set targets for future performance
 To identify potential for promotion

4.1 Performance Appraisal In PEL

In PEL performance appraisal is recognized as an important element of the
jobs of managers and supervisor. It provides significant help in meeting
departmental and company objective.
Given the vital role of performance appraisals, PEL needs to check appraisal
system, and the uses of such appraisal system to determine whether key
personnel decisions are affected by employee’s age, race, sex, religion, color,
national origin or handicap.

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4.2 Performance Management And THE APPRAISAL PROCESS

Figure 4.2.

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4.2.1 Performance Planning

 Establish & Define

 Key Responsibilities
 Objectives
 Expected Outcomes
 Priorities
 Behavioral factors Establish & Define

This is the first step in Performance planning in which PEL Performance
management tells his employees about the company establishment. That this
company is establishing at that time, about company history, its culture, rules
and regulations and define the purpose of the establishment. That what is the
vision and mission of the company. Key Responsibilities

Key responsibilities mean to tell the employees of PEl about the
responsibilities which are essential to perform for the purpose of achieving
Their TARGET. Objective
Objectives tells the employees what are the targets and goals of the company
and how they will achieve their targets, what are the ways or strategies about
through which they can achieve their mission or target. Expected Outcomes

PEL Performance Management tells about the outcomes and result which
they want by the performance of each employee. How they can provide the
required results. What type of activities will be performed by them for the
desired outcomes?

Comsats Institute Of Information And Technology 38 Priorities
PEL Performance Management tells about the priorities of the company
.mean in which they want to be, more grown. What are the points which
should be more consider and more need attention .in what product they want
to grow more .so in this point they tells about the priorities of the company.

4.2.2 Performance Monitoring

 Timely relevant feedback

 Maintain Load
 Quarterly Review
 Refine Responsibilities
 Revisit priorities Timely Relevant Feedback

In this step the performance management get the feedback about the
performance of the employees. That their performance sis according to their
planning or not. Than after taking feedback in to consider they make plans
now what type of steps should be make. Maintain Load

Through performance monitoring they can balance their work load. That how
they can effectively and efficiently balance their targets so that can be
achieved with out any burden or threat. Quarterly Review

In this method they monitor their performance on quarterly basis. PEL
Company divides its target in to annually, monthly basis. So after 4 months
they conduct a big audit and check all the aspects about the target which they
have to achieve till now.

Comsats Institute Of Information And Technology 39 Refine Responsibilities
After examine all the activities than performance management again refines
their responsibilities among the employees. This is more convenes because it
is based after the performance analysis.

Performance Appraisal

 Compile/Review data
 Request self appraisal
 Review with next-level supervisor
 Finalize appraisal
 Meet With Employee Compile /Review Data

In this we collect all the analyze data and compile it in the form so that this
may be review again for making the target near to achieve.

4.2.4 Development & Follow Up

 Identify interests & needs to enhance performance

 Establish Training plan
 Review job description
 Identify new challenges Identify Interests & Needs To Enhance Performance

This step is the last step in which we take the entire step after the analysis. In it
we find the interest of the company within its environment .that what type of
changes are occurring and how company can go well with this changes. And in
which fields company have to make more good performance. Establish Training Plan

After releasing that in which department and Field Company should have
more good performance .performance management establishes its training
program for the employees for getting more performance. This training plan is

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very essential to make the performance better for future as well as for current
job. Review Job Description

According to the changes which Management wants to see for making
company performance better we again review the job description form. Again
made and tell about the job, roles statement, and physical working
environment. Identify New Challenge

To make our company more globalize not only at the national level but also on
the international level we have to continuously consider the facts about new
changes at international market for making our company to cope with this
challenge more properly and good.

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Compensation and benefits are the rewards which are given to the employees
for their best performance and also to make them satisfy at the work place by
giving them the incentives, bonus, allowances.

5.1 Pay For Performance

Salary progress during an employee career with PEL is a function of
performance over time. Better performance is important higher pay.
Performance is also key factor in consideration for promotion.

5.1.1 Performance Designation

Performance designations are defined as follows.

5.1.2 Outstanding
Individual’s performance consistently exceeds performance criteria in virtually
all major responsibility areas and objectives:

5.1.3 Very Good

Individual performance consistently exceeds performance criteria in some
major responsibility areas and objectives and achieves criteria in all others.
Response to unplanned circumstances meets or exceeds what would be

5.1.4 Good
Individual’s performance fully meets performance criteria in all major
responsibilities areas. Performance is that of an employee who is competent,
knowledge, and capable of consistently achieving quality results on increasing
demanding objectives. Unplanned circumstances did not prevent the meeting

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5.1.5 Satisfactory
Individual’s performance meets performance criteria in most areas but not up to
required criteria and work accomplished:

5.2 Medical/Hospitalization Expenses

In order to assist the permanent Employees and their immediate family
members spouse and departmental children not more than 19 years old and in
case of unmarried and full time students the limit increased (to23 years) to
maintain their good health and pay for costs incurred on medicines, medical
services and hospitalization for themselves and their eligible family members,
the will reimburse 100% of the employee’s actual expenses. The employee will
be reimbursed for the expenses on presentation of doctor’s prescription and
Medical expenses (purchase of medicines) etc. for up to or less than Rs.500
(five hundred only) will be exempted from presentation of doctor’s prescription.

5.3 Uniform and Locker facility

Company gives two uniforms in a year to its workers and also provides lockers
to them for the safety of their personal things.

5.4 Conveyance Allowance

Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for motorcycle
in case of office work.

5.5 Loans
Loan is given to the employees from the provident fund; car loans are also
given to the executives level officers.

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5.6 Probation Period

5.6.1 Purpose
PEL set probation policy regarding the serving of a probationary period for
staff members covered by a collective bargaining agreement who are newly
hired. Probation is for newly appointed employees only.

5.6.2 Responsibility
The Head of Department Human resources is to ensure compliance with this

5.6.2 Duration
Probation period in PEL is six months for Managers and three months for
executive. Probation periods may be extended, with reason, where the
employer is not convinced with employee performance to the required
standard, and some time if employee does achieve the desired result the
company will terminate the employee.
 Employment Letter is attached
 Confirmation Letter is attached
Letter showing Different Allowances and Benefits is attached.

5.7 Description Of Some Of The Benefits

All benefits, allowances and salary vary equally from grade to grade.

5.7.1 Salary Structure

Salary is based upon the market practices. They attract their employees from
market pay levels. The basic salary structure is as:
Minimum Maximum
Executives 500,000 700,000
Managers 300,000 400,000
Non-Executives 90,000 100,000
Supporting Staff 50,000 70,000

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5.7.2 Basic Salary

 House rent allowance @ 45% of basic salary

 Utilities @ 10% of basic salary.

5.7.3 Provident fund

When employee’s service became confirm than they allowed the provident
fund at least @ 10% of the basic salary. The company will also contribute an
equal amount for credits to the PF account of the employee.

5.7.4 Gratuity
PEL Company also provided the gratuity fund to employee on leaving the job.
It’s the obligation on company to pay the fund to employee when he will leave
the job or will fill the year of his job.

5.7.5 Medical Outpatient Allowance

It is per month allowance in addition to the gross salary. But it doesn’t form
the part of the salary for any other benefits e.g. Provident fund, bonus.

5.7.6 Annual Bonus

Bonus on salary is provided annually to the employees.

5.7.7 Increments

Increments on the salary of the PEL Employees is occurred at 16% annually


5.7.8 House Rent Allowance

An employee shall be entitled to receive from company a house rent
allowance or house rent ceiling on such scales and on such terms and
conditions as may be determined by the Competent Authority from time to
time. The present rates of house rent allowance or ceiling are given below:
 Executives 50% of Basic Salary
 Officers 30% of Basic Salary

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 Clerical 20% of Basic Salary
 Non Clerical 45% of Basic Salary

5.7.9 Electrical Appliances For Employee

All employees shall be allowed to purchase furniture fixture and electrical
appliances for their residence up to a certain limit as per following entitlement:
Position Electrical Appliances
CEO Rs.400, 000
General Manager Rs.180, 000
Country Manager Rs. 80,000
Assistant Country Manager Rs. 50,000

5.7.10 Entitlement Of Cars For The Executives

Executives will be provided with the Official car and instead markup free loan
and a cash allowance will be allowed to eligible executives in order to assist
them in buying a car of their choice for business and personal use.
 General Manager Honda Accord

5.7.11 Mobile Phone Or Black Berry Facility

Executives will be provided with official mobile phone with following monthly
bill ceiling: Grade Monthly Ceiling Cost of Mobile Phone
 CEO 80,000
 General Manager 50,000
 Country Manager of each Sector 30,000
 Assistant Country Manager 20,000

5.7.12 Bonus Structure

NG/ Zero Grades...Workers Grade.

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C3/ Line Clerk Staff
F3/ Supervisor
Je GENERAL Executive
E3 Executives
M1 Manager


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6.0 Industrial Relations

Industrial relations mean the relations between the employees especially with
labor unions to make the work place safer. And to provide all the benefits and
compensation to labors through these relations. It also includes how to record
all the activities of employees especially of labor on effect basis.
In PEL the relations between employees, labors and management are kept
through different ways.
 Maintenance of Attendance
 Maintenance of Stores
 Check the material in & out from the factory
 Maintenance of factory
 Provide assistance to all departments regarding material
To maintain the record about internees
Industrial relations and administration department deals with employees but
the human resource department deals with managers.
 Dispensary
 Telephone
 Gate security
 PEL security
 Photo copier
 Canteen all the department are controlled by IR&A.
Attendance of all these departments is recorded by the IR & A department. All
the functions expect the basic function of account department performed by IR
& A department. T/D allowance, medical bill, telephone bill and utility bills are
also paid by the IR & A. Capital expenditure above Rs. 5,000 pay by IR & A.

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6.1 Union And Labor Law At PEL

6.1.1 Union
A labor union is elected by the employees of PEL every year. The union takes
an active part in all activities. It negotiates with management for employee’s

6.1.2 Labor Laws

Labor laws applicable in the country are also applicable at PEL. All benefits
imposed by the government of Pakistan and government of Punjab is granted
to employees.

6.1.3 Relation With Union

Good relationship between the management and union is very much essential
for any organization. It has much impact upon over all organization
performance. So management always tries to develop sound relationship with
union but not at the cost of organizational objective. On the other hand, union
tries to take possible benefits for the employees. If there is good relationship
between the management and union then there is a substantial degree of
peace between them. Strikes occur rarely. In such situation both parties
consider the needs and limitation of each other.
In Pak Elektron Limited, there is a sound relationship between management
and union. When union leaders are selected by employees for two years, the
management tries to give extra benefits to the union leaders to developed
good relation. In other words, we can say, union leader are obliged by the
management but it doesn’t mean that employees are deprived their basic
rights. PEL management itself tries to give possible benefits to employees.
Union bargain on annually bases with management on different issues like.
 Allowances
 Promotion
 Fringe benefits
 Working conditions

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 Health and safety
 Beneficiary and home
If company is earning high profit then management itself gives more possible
benefits to the employees i.e. in 1991-92 company earned more profit and
they gave extra benefits to the employees but company has been earning
nominal profits since 1992-94, so company is not in a position to give extra
benefits. In such situation, union considers the company’s real financial
position and does not go for strike. 15 years ago strike was observed by union
against management policies. When one party faces major problems other
party shares the problems and helps to overcome such problems. For
example, in 1991-92, company was earning high profit because demand of
their products was high in the period. To fulfill this increasing demand,
management hired more employees. But in 1994 when profit was decreased,
the management had to reduce the labor force. On this critical issue union
cooperated with management because there was no other way for
management. Both parties believe on the policy of give and take. They
compromise on different issues, which occur time to time. No party tries to use
power to force other.

6.1.4 Promotion
The present scenario particularly in PEL is that mostly there is not much
favoritism in the organization and promotion is based upon performance and
seniority. There is no influence of union regarding favoritism because the
management is restricted on performance for promotion.

6.2 Benefits Of Employees

Company provides retirement benefits in the form of gratuity and Provident
fund. For Provident fund the company has scheme of 10% contribution by
employees and 10% by the company. Cumulative provident fund is paid with
interest to employees in cash when he retires or resigns from the company.

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6.2.1 Subsidized Meal
Company provides the subsidized lunch to its workers and officers. For night
shift, it provides dinner to its employee in the factory mess.

6.2.2 Medical Allowances

Workers with salary Rs.3000/ month have medical facility under the social
security. The personnel having salary more than Rs.3000 monthly are paid
Rs.250 per month as medical allowances. For officers and high grades there
is no limit for medical allowances.

6.3 Uniform And Locker Facility.

Company gives two uniforms in a year to its workers and also provides lockers
to them for the safety of their personal things.

6.3.1 Loans
Loans are given to the employees from the provident fund, car loans are also
given to the executives level officers.

6.3.2 Performance Award

24th of December is celebrated every year as annual day. At that time award of
best attendants and special performance are given to most regular employees
and to those who perform an extra ordinary job.

6.3.3 Group Insurance

The company insures workers. The company pays all premiums.

6.3.4 Conveyance Allowances

Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for
motorcycle in case of office work.

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