NISHAT GROUP

Nishat is playing a significant role in the private sector by adding value to cotton and the
cotton based economy, Nishat Group ranks among the top five business houses in
Pakistan in terms of sales and assts

Nishat has grown from a cotton export house into the premier business group of
Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement,
Banking and Power Generation. Today, Nishat is considered to be at par with
.multinationals operating locally in terms of its quality products and management skills
Annual turnover 17 billion Rupees •
Billion from textiles 14 •
Earn foreign exchange US $ 236 million •
Taxes and levi of 2,080 million Rupees annually •

NISHAT MILLS LIMITED

Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern,
which was converted into private Limited company in 1959. In 1961, the company went
.public and was listed on the Karachi Stock Exchange
Flagship Company established in 1951
Most Modern, Biggest Composite unit of Pakistan •
Professional and Client Oriented Marketing •
Green Company •
Employees 9000 •
ISO 9001 and IKO-TEX100 Certified •
.SA 8000 Certification currently in process •
NML started out as a weaving unit with 500 semi-automatic looms. Later on 10,000
spindles were added, laying the foundation of nation's biggest textile composite project.
NML today, has 177,000 spindles, 284 Sulzer shuttle-less looms and 244 TSUDAKOMA

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air jet looms. The company's production facilities comprise of spinning weaving,
.processing, stitching and power generation
All together NML has 17 Manufacturing units, each specializing in a specific product
rang. The spinning Division produces 120 Tons of yarn per day in a product range from
.Ne 3 to Ne 120 using different cotton sources like Supima, Egyptian Giza and Australian
Mission Statement

"To provide quality products to customers and explore new markets

to promote/expand sales of the company through good governance
and foster a sound and dynamic team, so as to achieve optimum
prices of products of the company for sustainable and equitable
growth and prosperity of the company."

Vision Statement

"To transform the company into a modern and dynamic yarn, cloth
and processed cloth and finished product manufacturing company
with highly professionals and fully equipped to play a meaningful
role on sustainable basis in the economy of Pakistan."

"To Transform the company into a modern and dynamic power

generating company with highly professionals and fully equipped to
play a meaningful role on sustainable basis in the economy of
Pakistan."

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Organizational Structure

Nishat Sectors

Textile-1
Cement-2
Banking-3
Power Generation-4

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 NISHAT TEXTILES
Processing

An ISO 9001 certified unit, which is one of the largest and

most modern processing facilities of Pakistan. With an
array of custom-made machinery, it has the capacity to
produce 3 million meters of fabric /month. To ensure that
our customers get the very best we use more than 75% dyes
and chemicals that are of European origin. To maintain
quality and international standards, an on-line Quality
department has been setup. The QC department has the
backing of a fully equipped Laboratory, which scrutinizes
.the fabric process flow at all levels

Spinning

NML spinning is operationally organized into eight

spinning units, each with a distinctive product range and
capacity to keep a check on the quality standards. Every
cone undergoes inspection before packing to ensure that
.our buyer gets only the best out of the lot

Spinning production capacity for both Cotton and Blended

Yarns in 130 Tons / Day

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Weaving
:Operationally divided into

:NML Faisalabad

Machinery: 188 Sulzer Ruti Looms

Capacity: Approximate 2.1 Million Meters per
Month.

This Unit has been producing top quality fabrics for export as well as for the
consumption of our own processing unit. Awarded with ISO-9002 Certification, the
.facility is highly regarded for the production standards and quality controls

:NML Sheikhupura

NML Sheikhupura is one of the most advanced units in the country equipped with state-
of-the-art machinery and it is also awarded with ISO 9002 Certification. Future
Programs for the Unit include the purchase of Jacquard Looms, which will add to the
.variety of product range that Nishat is offering to its customers

Stitching
With an array of 500 modern new generation machines, the
stitching department has an average capacity to process up
to 1.3 million meters of fabric per month. The product line
is customized to manufacture products of various styles and
sizes according to the requirements of our customers,
.wholesalers, retailers and contract textile business

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Introduction
The policies and practices involved in carrying out the “People” “
or Human Resource aspects of a management position, including
"recruiting, screening, training, rewarding, and appraising

HUMAN RESOURCE department exist to help people and organizations reach their
goals. Along the way, they face many challenges arising from the demands of the
employees, the organization, and society. The domestic and international environments
are particularly turbulent because of the growing diversity of the workforce and the
globalization of businesses. Challenges also result from ever changing laws, especially
laws that address the need for equal employment opportunity. Within these constraints,
the human resource department must contribute to the organization's "bottom line" in
ways that are
.both ethical and socially responsible

Purpose
The purpose of human resource management is to improve the productive contribution of
people to the organization in ways that are strategically, ethically, and socially
responsible. This purpose guides the study and practice of HR management, which is also
commonly called personnel management. The study of HR management describes the
HR-related efforts of operating managers and shows how personnel professionals
.contribute to those efforts

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Objectives of HRM
Managers and HR departments achieve their purpose by meeting objectives. Objectives
are benchmarks against which actions are evaluated. Sometimes they are carefully
thought out and expressed in writing. More often objectives are not formally though out
and expressed in writing. More often objectives are not formally stated. Either way, they
.guide Hr function in practice

Organizational Objective

To recognize that HR management exists to contribute to organizational

effectiveness. Even when a formal HR department is created to help managers, the
managers remain responsible for employee performance. The HR department exists to
help managers achieve the objectives of the organization. HR management is not an end
in itself; it is only a means of assisting managers with their human resource issues. For
example, NISHAT HR department found that it could enhance it contribution to the
organization through sophisticated information systems that allowed the department to
cut #35 million a year from its budget. Simply stated, an HR department exists to serve
.the rest of the organization

Functional Objective

To maintain the department's contribution at a level appropriate to the

organization's needs. Resources are wasted when HR management is more or less
sophisticated than the organization demands. Realizing that the HR department had
grown too large, NISHAT changed its ratio of HR staff members to employees from 1
per 53 down to 1 per 75 without violating the company's long-standing "no-layoffs"
."policy

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Role of HR Department
Human Resource department play a very important role in Nishat Mills LTD. New talent
has a thirst for opportunity and that they are seeking such jobs which enhance there
capabilities and to gain some experience. Due to these facts the HR department

Of Nishat is looking for these kinds of people who want to excel in life and are highly
motivated to achieve some goals. The HR department of Nishat is working day and night
to make this Organization a better organization by hiring people who are self motivated
.and there main aim is to make the company more profitable

JOBS OF HRM

 Conducting job analysis

 Planning needs and recruiting job candidates
 Selecting job candidates
 Orienting and training new employees
 Appraising performance

HRM in Nishat Mills

• Employing over 9000 people.

• Lowest Employee Turnover.

• Seeks to fulfill the highest practical degree in

administering its welfare and compensation program.

• Apprenticeship and other training schemes at all levels.

• To obtain, manage, develop, motivate and gain the

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 commitment of company's key resource- the people
who work in and for it.

• To develop a positive corporate culture to promote

commitment to excellence and quality through out
the company.

• To identify training needs and provide required training

to all categories of employees.

• To make best use of the skills and abilities of all those

employed in the organization.

• To ensure that the company meets its social and legal

responsibilities towards its employees, with particular
regard to the conditions of employment, quality of
working life provided for them and the need to
promote environment, occupational health and safety.

• To ensure industrial peace and harmony through

excellent employee relations to achieve optimum level of
employee, productivity and to contribute towards
company’s aimed quality standards.

Classification of HR Department in NISHAT

Human Resource
Department

&Recruitment & Training &Retention

Selection Development Motivation
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:Responsibilities of HR Manager

-:Following are the responsibilities of HR Manager in Nishat Mills

• Recruitment And Selection

• Policy Making

• Retention Program

• Improve Working Relation Of Employees

:Competitive Advantages

:Nishat Mills has following competitive advantages over its competitors

• Strong Pay Structure

• Retention Program

• No Firing

• After retirement contract basis job

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Recruitment Process

The Process of seeking and attracting a pool of qualified applicants"

."from candidates for job vacancies can be selected

Recruitment Policy
An organization's recruitment policy provides the framework for recruiting action and
reflects the organization's recruitment objectives. It details the overriding principles to be
.followed by management in general and by HR manager in particular
In Nishat Mills the recruitment process starts when a there is a vacancy and employee is
required. The job requirement is forwarded to the HR Department by the head of the
particular department. Hr department then use two approaches to hire the employee
.internal recruitment and external recruitment

Job Analysis
The procedure for determining the duties and skill“
requirements of a job and the kind of person who should be
”hired for it

Nishat is one of the largest textile manufacturers in Pakistan having lots number of
different sectors o/departments working in it. It has many employees who are working on
different posts and are working hard according to their own capacity. Nishat Mills
.conducted job analysis in order to hire new employees at every year
This also enables management to have a better understanding of the jobs and duties being
performed at every level and also helps them in training the people who are freshly
.recruited

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In job analysis, firstly we specified two pillars which are
 Job description
 Job specification.

Uses of Job Analysis Information

The information collected during the process of job analysis is used by the company in
:taking decisions regarding affairs like

 Recruitment & Selection

decisions
 Compensation
 Performance Appraisal
 Training

Methods of Collecting Job Analysis Information

-:There are two methods of collecting Job Analysis Information

• Interviews
• Observation

:Internal Recruitment-1
:Job Posting
Advertising of job openings to current employees via bulletin boards,
newsletters, or personal letters. 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

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The first and foremost preference of Nishat Mills is to hire the employees through
internal recruitment and giving existing employees more chances to develop their career.
.For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the vacant seat

:Replacement charts

A visual representation of which employee will replace the existing incumbent in a

designated position when it becomes vacant. In Nishat Mills replacement charts are used
.rarely

External Recruitment-2
To search the employee to fulfill the vacant seat outside the organization is called
external recruitment. HR Department can use various approaches to locate and attract
external candidates like Government agencies, private employment agencies, recruiting
.consultants, executive search firms, and educational institutions
Nishat Mills run the external recruitment campaign itself and do not use the other sources
.like agencies and search firms
Sources used for external job recruitment

:Following are the some sources of Job Recruitment in Nishat Mills

• By Newspapers

• By Website

• By Universities

:Advertising-1

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Advertisements are placed in various newspapers. More information about the
company and job specification is included in the ad to present some self-screening. The
.advertisement is placed in Jhang and Din
Nishat Mills use print media for advertisement because they think most of the people
don’t have knowledge about computer or internet and they can easily find job
.advertisement in newspaper
:Casual Applications/Unsolicited Applications-2
Unsolicited applications are also welcomed in Nishat Mills; they are not neglected
as whole. If candidate have excellent performances throughout his career he can be hired
.or these applications can be used for future references

:University Recruitment
Nishat Mills used the university recruitment only once in LUMS but the result was not
.such a good and only one candidate was hired that time

:(Equal Employment Opportunity (EEO

Nishat Mills provides jobs on Equal employment opportunity as they do not make any
discrimination in job description .The Company provide Equal Employment Opportunity
.is also mentioned in the job advertisement

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 Selection Process
Following steps are followed in the selection process
Reception of Applicant-1
Preliminary Interview-2
Application Form-3
Tests-4
Interview-5
Background-6
Preliminary screening by HR Department-7
Final selection by line managers-8
Medical Examination-9
Placement on the Job-10

:Reception of Applicant-1
The importance of giving the applicant a favorable impression at this stage cannot be
overemphasized. Rudeness, disinterest or discrimination at reception may cost the
organization a good applicant and foster negative attitudes about the company and its
.products
Nishat Mills give high importance to the first step in selection process which is reception
of applicants. The staff makes such a friendly environment at this stage that does not
make any negative thinking about the company even if the candidate is refused for further
.processing. The usually use the indirect way to inform candidate about refusal

:Preliminary Interview-2

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In Nishat Mills preliminary or initial screening interview is used to check quickly on
language skills, qualifications, willingness to do shift work, union membership and the
.like
In Nishat Mills preliminary interview is typically brief and centered on very specific job
requirement. However has carried out in a courteous, non-discriminatory and efficient
.way

:Application Form-3
After preliminary interview or initial screening Nishat mills receives the applications
from the candidates who have cleared the initial screening step. The application form of
.candidate is a valuable tool in screening out unqualified applicants
The HR Manager considers the qualification, experience and other job related data
.provided in application form

:Test-4
In Nishat mills test is used to access the match between application and the job
.requirement
The most used types of test in Nishat Mills are following
Aptitude Test-1
Intelligence Tests-2
Personality Tests-3
The most frequent method used to take the tests is computer based tests but written tests
.are also taken rarely in Nishat Mills

:Interview -5
There are three types of interviews take by the Nishat Mills

:Initial Interview

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The initial screening interview is taken by the HR Manager. The only purpose of
initial screening interview is to access the language skills, qualifications, willingness to
.do shift work

:Panel Interview
In Nishat Mills the Panel interview is the next step for the candidates who have
successfully passed the tests. In Nishat Mills panel interview is taken by three managers
General Manager-1
HR Manager-2
Head of the Department-3

:Unstructured Interview
Nishat Mills do not use a predetermined outlines or questions to be asked from
candidate but the take the unstructured interview and interviewer can ask anything which
.he thinks is necessary

:Criteria for Selecting Candidate in interview

:Following is the criteria for selecting candidates in Nishat Mills based on

• Communication Skills

• Present Personality

• Educational Background
(etc.)

• Skills And Competency

:Background-6

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After interview the Nishat Mills HR Department staff checks the backgrounds of the
successful candidates through the references provided by them. The background is
investigated to ensure that candidate have a fair character and is not involve in any
.criminal activity

:Preliminary screening by HR Department-7

HR Department completes all the works assigned to it and finally do a preliminary
screening. This screening is based on the overall results of the candidates. A list of
successful candidates is made and the maximum no of toppers are screened as per
required by the head of department. The list of selected candidates is than forwarded to
.the particular Head of the Department

:Final selection by line manager-8

The list of selected candidates by HR Manager of Nishat Mills is given to the Head of the
particular department and now Head of the department is the final authority to select the
.candidate

:Medical Examination-9
After the candidates have been selected by the head of department, medical examination
of the selected candidates is taken by Dr. of the Nishat Mills. This is a check to ensure
that employees do not have any contagious disease and to save other employees from this
.disease

:Placement on the Job-10

After passing each and every selection step Nishat Mills the successful candidates are
given the job letter which indicated their job title, work timing, starting date and salary
.package

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Successive hurdles approach
The Nishat Mills use the successive hurdle approach in the selection process which
involves the screening out of candidates at each stage of the selection process

Training and Development

Training

Training is an activity that results in learning .it seems important than to consider what
learning is and what trainers can do to positively influence it. There is considerable
.disagreement over which theory best explains how learning occurs
This is however consensus on the definition of learning and the goals of learning process

Methods of training

The Nishat Mills adopts many different training programs for enhancing the skills of its
employee. In Nishat Mills following methods are used for employee training

 On job training
 Off the job training

:On Job Training

• Making teams of new employees with a few old specialized

Employees.

• Acquaintance with day to day procedures

• Contribution to overall productivity.

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 • Lower cost

• Lower Time

Off Job Training

• In-house training ,done at least once a year

• Specialist trainers are hired

• Provide a proper learning environment to the employees

For employee training and development to be successful, Nishat Mills do following

things:

• They provide a well-crafted job description- it is the foundation upon

which employee training and development activities are built
• Provide training required by employees to meet the basic competencies for
the job. This is usually the supervisor's responsibility
• Develop a good understanding of the knowledge, skills, and abilities that
the organization will need in the future. What are the long-term goals of the
organization and what are the implications of these goals for employee
development? Share this knowledge with staff.
• Look for learning opportunities in every-day activity. Was there an
incident with a client that everyone could learn from? Is there a new government
report with implications for the organization?
• Explain the employee development process and encourage staff to develop
individual development plans.
• Support staff when they identify learning activities that make them an
asset to the organization both now and in the future.

In the development process Nishat aligns the interest and skills with the need of
organization. It means carrier must be managed strategically so the skills demanded by

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the organization’s strategic business objectives are understood and a work force with the
matching profile of skills is developed.

Retention and Motivation

Nishat Mills use retention process in which Nishat Mills wants to satisfy the individual
need of employees and to make the employees work with the organization. The company
use cash and non cash rewards to motivate its employees.

The company uses the following ways to retain the employ

 Promotion
Promotion is direct shift only to the next level from the current grade, the
Employee’s performance is evaluated and if his performance is above average he is given
.promotion
In Nishat Two things are counted to give promotion
Experience-1
Performance-2
 Increments

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The company decides at the end of the financial year, according to its financial
condition, whether increments should be given or not. Once the increment is decided,
.it is effective from January of each calendar year
 Free transport
Nishat Mills provide free transport to local employee and also to their children for
.school
 Medical facility
Nishat Mills provide free medical facility to workers depending upon the
.position/rank of the employee
 Free housing
They give the facility of free accommodation for all level of employees, again the
.facility is provided according to the position

Performance Appraisal
Performance appraisal concerned with determining how well“
employees are doing, communicating that information to employees
and establishing a plan for performance improvement

The jobs are evaluated on yearly basis under superior evaluation method. The competent
employees are rewarded in shape of promotions, bonus, increments and annual holidays.
The results of an appraisal can be used to identify areas for further development of the
.employee
The method used to evaluate employee’s performance consists of 20-25 questions about
the behavior of the employee, and then on the basis of these answers personality of the
.employee is judged
There are two possible sources of errors of performance evaluation in Nishat

Halo Effect
Recency effect

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Retrenchment
The Nishat Mills always used to expand its business since its beginning and it has
never been into such a downsizing of its business which involves retrenchment of its
existing employees. Such special features differentiate Nishat Mills from its
.competitors
Questions asked from HR Manager
?What is your recruitment policy

?What kind of source for advertisement you prefer

?Do you prefer internal or external recruitment for executive level job positions

?Do you use “job posting” why

Do you
?Any advertise
“honesty test”for jobconduct
you after vacancy
or not or wait for a no of vacant positions and
?than hire the whole lot

?Do you take written or computer based test

?Do you outsource your recruitment process

?How much importance you give to personality, IQ level and special ability
?If yes, which company does u prefer

?Any medical examination of selected employees you conduct

?Do you give jobs on EEO basis or not

?Who is the final authority to select an employee

?If yes, what type of policy you have

?Do you use “performance appraisal” to evaluate performance of your employees

?Do you apply University recruitment? If yes, what result you face

?Do you communicate performance appraisal directly to related employee

?Which type of interview you conduct

?How you motivate your employees

What is the percentage or importance of test and interview in your selection
?process

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?What type of environment you provide Campus
to interview
?What type of working environment you provide to your employees
?Any “honesty test” you conduct or not

(What is the preferred basis for promotion? (Experience, Age, Performance

?Do you take written or computer based test

?In which circumstances you prefer cash or non cash rewards for employees
?How much importance you give to personality, IQ level and special ability

?Any additional benefit such as pick & drop or medical facility you give
?Any medical examination of selected employees you conduct

?Do you give any increment on yearly basis

?Who is the final authority to select an employee

?What are the rules and regulations for retirement

?Do you use “performance appraisal” to evaluate performance of your employees

?What is the union role in your organization

?Do
?Doyou
youprefer old employees
communicate to retain
performance or preferdirectly
appraisal employees on theemployee
to related bad of performance

?How you motivate your employees

?What type of working environment you provide to your employees

(What is the preferred basis for promotion? (Experience, Age, Performance

?In which circumstances you prefer cash or non cash rewards for employees

?Any additional benefit such as pick & drop or medical facility you give

?Do you give any increment on yearly basis

?What are the rules and regulations for retirement

?What is the union role in your organization

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Do you prefer old employees to retain or prefer employees on the bad of
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?performance
 stions Asked from employeeseQu

?Do you think that companies apply EEO

Yes No

?Were you satisfied with the company advertisement

Yes No

?Were the best candidates attracted through advertisement

Yes No

?Was initial screening through based on merit

Yes No

Was you selected by this organization directly or selected by another

?organization
Directly By other organization

?How many interviewers were present during interview

2 1

More than 2

?Do you think that your appearance has any impact on selection
Yes No

?What type of working environment given to you by employer

Good Average

Bad

?Any Motivation by employer

By Promotion By Bonus

By Increment

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This information is obtained only for University
academic purpose and will be kept*
.Haripur Campus
confidential
?What is the preferred factor for promotion
Age Experience

Performance

?Performance Appraisal is communicated with employees

Yes No

?The way in which performance appraisal is communicated

Direct discussion Indirect

?Any old age benefit given by organization

Yes No

?Any unfair promotion in your organization

Yes No

?Are you satisfied with your pay amount

Yes No

Are you satisfied with the facilities providing by organizations? (Medical,

(.Allowances etc
Yes No

?The position at which you are; you are promoted to this position
Internally Externally

Any predetermined rules and regulations for retirement were communicated with
?you
Yes No
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?Are you informed about retirement before time
Yes No
 Emloyees Interview Result
These Questions has been asked from 10 different
employees
?Do you think that companies apply EEO
(Yes ( 10 ) No (0

?Were you satisfied with the company advertisement

(Yes (8) No( 2

?Were the best candidates attracted through advertisement

(Yes (6) No (4

?Was initial screening through based on merit

(Yes (10) No (0

?Was you selected by this organization directly or selected by another organization

(Directly(10) By other organization (0

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?How many interviewers were present during interview
(7) 2 (3) 1

More than 2

?Do you think that your appearance has any impact on selection
(Yes (9) No (1

?What type of working environment given to you by employer

Good (10) Average

Bad

?Any Motivation by employer

By Promotion (5) By Bonus

(By Increment (4) All Of Above (1

?What is the preferred factor for promotion

(Age Experience (5

(Performance (5

?Performance Appraisal is communicated with employees

(Yes (8) No(2

?The way in which performance appraisal is communicated

(Direct discussion (0) Indirect (10

?Any old age benefit given by organization

(Yes (10) No (0

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?Any unfair promotion in your organization
(Yes (2) No (8

?Are you satisfied with your pay amount

(Yes (10) No (0

(.Are you satisfied with the facilities provide by organizations? (Medical, Allowances etc
(Yes (10) No (0

?The position at which you are; you are promoted to this position
(Internally (10) Externally (0

?Any predetermined rules and regulations for retirement were communicated with you
(Yes (10) No (0

?Are you informed about retirement before time

(Yes (10) No (0

Graphical Representation of Employee Interview Result

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 10
9
8
7
6
Employees 5
4 Yes
3 No
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12
Questions

Criticism
The HR Department of Nishat is very strong and the overall
performance of the Nishat HR Department is very good but some
weaknesses also lies which we have found while writing this
report .Nishat use the no firing concept for employees but they use
the training, demotion and job rotation of employees if their

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 performance is below average which is not in the favor of the
organization.

Other problem lies when company do not out source their external
recruitment process and do not give chance to specialized firms to
hire best employees while the banking sector of Nishat Group uses
only outsourcing in external recruitment process.

The Nishat Mills hire its old employees after their retirement which
is a hurdle in the development and progress of new
employees.Performance evaluation result is not directly discussed
with employees and an indirect way is choosen for this purpose due
to which gap is there between management and emloyees.

Recommendations
In Order to solve the problem the company must fire those
employees who are giving continuous poor performance in spite of
job rotation and training. Company must use external recruitment
firms like Personnel consultancies, Management recruitment

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consultants, and Executive search firms to hire the best employees
as these companies are the expertise. The Nishat Mills must not hire
the retired employees on contract and give more and more chances
to the new talent.

Nishat Mills needs to improve its advertisement campaign as the

results shows that the company advertisement process is not very
effective and the best candidates are not attracted. Company also
needs to motivate its employees in a better way like bonus,
commissions, promotions and increment at the same time.

The result of performance appraisal should be discussed directly

with the employees and should be kept up-to-date with their both
negative and positive aspects. This can be done by arranging
meetings etc.

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