MBA INTERNSHIP REPORT

PUNJAB RURAL SUPPORT PROGRAMME

Specialization: Human Resource Management

SUBMITTED TO:

Chairman Department of Business Administration

SUBMITTED BY:

Name: Roll #: Registration #: Mailing Address: Contact #: Date of Submission:

Zahid Gulzar W-589276 07-PKL-0158 House No. 31, Siddiqu-e-Akbar Town Khanewal +92-333-6222346

ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

ACKNOWLEDGEMENT
All humble words of profoundest thanks are due to ALLAH Almighty (SWTH), the compassionate, and the merciful who blessed me determination, potential and ability to complete this work successfully within the stipulated time. All praises are for the Holy Prophet Hazrat Muhammad (SAW) who brought the message of peace and happiness to all creatures. I am highly indebted to Mr. Fazil Ansari (District Manager) and Mr. Mian Muhammad Khalid (Admin Officer) of Punjab Rural Support Program District Office Khanewal. I also feel indebted to all the respected staff of Punjab Rural Support Programme District Khanewal, who gave me very effective guidance to make this work successful.

I must acknowledge my deep debt to my father; an integral part of all. I have accomplished in my life. I am grateful to him for his sustained help and moral support throughout completion of the thesis. I particularly wish to thank my friends Mr. Mirza Naveed Baig and Mr. Shehzad Sattar, who helped me with the documentation.

Zahid Gulzar

TABLE OF CONTANTS

1 2 3

Objectives of studying the organization Introduction to the organization Overview of the organization 3.1 Organizational structure

4 5

Organizational structure of the HRM department HRM Process in the organization 5.1 Human Resource Planning and Forcasting 5.1.1 HRP Process 5.1.2 Forecasting HR requirement 5.1.3 Methods to forecast HR needs 5.2 Employee recruitment and selection 5.2.1 Sources of candidates 5.2.1.1 5.2.2.2 5.2.3.3 5.3 Internal source External source Employment selection process

Training and dvelopment 5.3.1 Training need assesment 5.3.2 EmployeenDevelopment

5.4 Performance Management 5.4.1 Performance standard and expectations 5.4.2 How performance report are written 5.5 Employee compensation and benefits 5.5.1 Types of compensation and benefits 5.6 Organizational career management management

5.6.1 Employees job changes 5.7 Job change within the organization 5.7.1 Promotion 5.7.2 Transfer 5.7.3 Demotion 5.7.4 Sepration 5.7.4.1 5.7.4.2 5.7.4.3 5.7.4.4 6 7 8 9 10 11 12 Layoff Termination Resignation Retirement

Labor Management Relations SWOT analysis on HRM process in organization Weakness of the organization Recommendations Conclusions Reference & Sources used Annexes / Appendices

Abstract
Punjab Rural Support Programme is Non-profit Organization which is working in the rural areas of Province of Punjab. It was incorporated as a company, under section 42 of the Companies Ordinance, 1984, in November 1997. It currently has operations in 28 Districts of the Punjab. The core Program activities are overseen by 6 Regional offices located at Faisalabad, Gujranwala, Lahore, Multan, Sahiwal and Sialkot. These six Regions operate the core Program through 60 Social Mobilization Teams (SMTs) located at 33 points in 20 Districts. In some of these 20 Districts and 8 other Districts, PRSP also has other Programs such as in Health, Education, Livestock sectors etc. These are supplementary interventions that are intended to enrich the impact of the core PRSP operations. These are windows that open for specified durations, from time to time, in the form of Projects. Human Resource Department in Punjab Rural Support Programme works efficiently for establishing good working environment, skilled workers and efficient human resource process. One of HR function is creating an environment where the Punjab Rural Support Programme Culture is strong, the diversity of staff and customers is valued and embraced supporting the relocation or expansion processes through well structured and planned recruitment and selection. Punjab Rural Support Programme need to run the organization operation properly and to achieve the organizations goals, the organization needs qualified and right employees. HR helps to find the right person for the right job. This is the major work of Human Resource Division. Employee recruiting, selection, training, management development, and employee compensation all these things have done under HR division. To achieve their mission they provide effective training program, design attractive compensation package, provide performance appraisal. These entire things are done for finding the appropriate employee for the PRSP. Duties with Administration sector under PRSP HR Division are transportation management, protocol and health & safety of the employee in the same way the main objectives of HR in PRSP are to provide the right person for the right job, job satisfaction, career planning and development and to reduce the employee turnover by recruiting and selecting the right person.

PUNJAB RURAL SUPPORT PROGRAMME-DISTRICT KHANEWAL 1. Objectives of Studying the Organization The primary objective of this study is to learn about the customer care, recruiting, selection process and orientation, training and development process of PRSP. The overall objectives to study the organization are to get awareness about organizational hierarchy and organizational structure, internal values and culture. The ultimate goal is to study the Human Resource Department working, Management and workers relationships, employees selection, recruitment, and compensation and retention. To get the now how about this department that how it is working and what are its impacts to the organization. The understanding of PRSP Human Resource Department will help me to skillful and get experience that will facilitate me to work efficiently if I have been selected in Human Resource Department of any Organization. Human Resources is an increasingly broadening term with which an organization, or other human system describes the combination of traditionally administrative personnel functions with acquisition and application of skills, knowledge and experience, Employee Relations and resource planning at various levels. The field draws upon concepts developed in Industrial/Organizational Psychology and System Theory. Human resources have at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production although this perspective is changing as a function of new and ongoing research into more strategic approaches at national levels. This first usage is used more in terms of `human resources development', and can go beyond just organizations to the level of nations. The more traditional usage within corporations and businesses refers to the individuals within a firm or agency, and to the portion of the organization that deals with hiring, firing, training, and other personnel issues, typically referred to as `human resources management'. This article addresses both definitions. 1. Recruitment & Selection 2. Training and Development (People & Organization) 3. Performance Evaluation and Management 4. Promotions 5. Redundancy

6. Industrial and Employee Relations 7. Record keeping of all personal data. 8. Compensation, pensions, bonuses etc in liaison with Payroll 9. Confidential advice to internal 'customers' in relation to problems at work 10. Career development

Report Objective:
To give detailed information about recruiting, selection, orientation, training and development process of the company. To focus on the major activities of recruiting, selection, orientation, training and development process under which division these work. Show how these activities relates with the organization overall strategy and objective. To know how affectively these activity work for the organization. To focus on the extent and nature of any formal evaluation of the activitys effectiveness.

Introduction
The Punjab Rural Support Program (PRSP) was incorporated as a company, under section 42 of the Companies Ordinance, 1984, in November 1997. It currently has operations in 28 Districts of the Punjab. The core Program activities are overseen by 6 Regional offices located at Faisalabad, Gujranwala, Lahore, Multan, Sahiwal and Sialkot. These six Regions operate the core Program through 60 Social Mobilization Teams (SMTs) located at 33 points in 20 Districts. In some of these 20 Districts and 8 other Districts, PRSP also has other Programs such as in Health, Education, Livestock sectors etc. These are supplementary interventions that are intended to enrich the impact of the core PRSP operations. These are windows that open for specified durations, from time to time, in the form of Projects.

Strategy
PRSP believes in supporting people in harnessing their potential and in supplementing this potential. For this purpose, it helps in fostering a network of grass root level organizations to enable rural communities to reflect, plan, implement and manage activities and programs for productive employment and optimizing use of resources. PRSP, thus, provides assistance to the people in the following forms. Organize multi-purpose and broad based Community Organizations (COs) to create a feeling of strength that comes from being together; to facilitate focus on needs; to create the ability to plan; pool resources; reduce overheads, achieve economies of scale, etc. Help identify true and genuine activists within the community. PRSP believes that only through these individuals, the potential of the community can be harnessed. No outsider, no matter how sincerely motivated, can truly substitute needs. a motivated member of the community itself in such a role. Identify and prioritize the endeavors people are willing to make in terms of opportunities and

OVERVIEW OF PRSP
Social Mobilization the Hallmark of PRSP
PRSP is from the family of the Rural Support Programs (RSPs) that acquired a name in Pakistan for community mobilization, capacity building and socio-economic empowerment operations. In recent times, Social Mobilization, as a concept and a process, was refined over some years. Starting in the Northern Areas and other Districts of Pakistan, the success of the experience made it possible to also light a flame for the Punjab Province. This, as said in the beginning, happened in 1997. Social Mobilization is perhaps more widely talked about than is understood. Experience shows that a major disadvantage that accompanies poverty is that the poor need support even for reflecting on the problems of poverty, for considering solutions, for forging linkages, for accessing resources and services. Social Mobilization is a process that prepares the poor, and creates in them a capacity, for undertaking poverty combating activities. The orthodox process of social mobilization is designed around organization of the poor households through providing skills, credit, creation of local capital and infrastructure all

aided and facilitated by a support organization. The purpose of such support is to initiate and sustain a process of diversified growth of economic, human and natural resources for the household, for a group of households or a village. Given the multi-dimensional disadvantages connected with poverty, this process can get initiated only with advocacy, counselling, creating a new thinking and kindling of a new spirit. All these highlight the need for a support organization, hence the raison dtre for the Punjab Rural Support Program. Alongside, the core RSP operations are the other poor-centred interventions e.g. in Health, Education, Agriculture and Livestock sectors. The impact of these interventions on poverty is universally acknowledged. Social Mobilization continues to be the engine that drives these interventions. It is the life blood of all PRSP operations. It is the currency in which PRSP conducts all its business. However, social mobilization can take different forms as may be found relevant to a context. The number of beneficiaries or stakeholders, for certain interventions, may be very large. The group may, therefore, need to provide representation to important interests rather than ensuring the participation of every beneficiary. Groups may also have to conform to different operational processes depending on the precise role that the intervention envisages for them. Admittedly, the first focus in the broad brush approach is on the community and not on the household, unlike in the orthodox RSP strategy around which the core Program is organized. But the obvious assumption is that the benefits of the broad brush strategy do reach the poor households. Both paths lead to the poor households. One path has shown that it can carry the benefits to many more poor households though it does not directly engage them in a process. It is, therefore, given a place alongside the core RSP strategy, which centers around the household. It is relevant to add here that the Endowment for the PRSP from the GoPb is accompanied by special emphasis on precisely such social sector interventions that use the broad-brush approach of the second path. The first nine years of PRSP have witnessed the balancing of the operations along the two paths. Both courses are designed to support the poor in achieving the same object of Poverty Alleviation. Both are fuelled by social mobilization. During the first three years (19982000), PRSP had to take the orthodox path that is ruled by micro-credit. No other product was available for delivery at that time. During the later seven years of its existence, however, numerous opportunities became available to the PRSP, which it has tried to offer, alongside

micro-credit, as best as it could. The widening vistas of the PRSP operations have raised philosophical issues that take care to treat the RSP textbook with all due respect. The visioning and revisiting of the Program strategy goes on with earnestness. The object is to evolve, in course of time, a synthesized strategy best suited to the Punjab landscape. And to remain open to fresh ideas because, without fresh thinking, the changing realities of the landscape cannot be effectively catered for. We are working in an ever-changing environment. Our strategies must, therefore, be capable of responding to the rapidly changing environment. Our strategy, at any given point in time, has to be like a kaleidoscope, capable of infinite patterns and countless designs. Likewise, the constituents of the PRSP strategy must be numerous and varied. There is no other way of remaining relevant in different times and changing situations.

PRSP Finances
Since 1998, PRSP has operated off its Endowment of Rs.500 Million, provided by the GoPb in June 1998. Later, PRSP became part of major Partnerships with the Pakistan Poverty Alleviation Fund (PPAF) and with Health, Education, Agriculture, Livestock and Planning & Development Departments of the GoPb. PRSP is, or has been, a Partner with the Government of Pakistan, with International donors such as the ILO, the USAID and the Asian Development Bank. Since 2001, PRSP has ceased to depend exclusively on the Endowment income. It is now able to draw upon a wide range of other inflows.

Community Organization
The first step towards social mobilization is the organization of communities. As briefly mentioned earlier, this can vary with the purpose for which a group of poor households is brought together. A group formed for credit would have to meet one set of requirements. A group formed for establishing and managing a health or educational facility shall have to respond to quite another set of requirements. From July 1998, PRSP has been largely forming Community Organizations (COs) with micro-credit as the central opportunity. The group size is restricted to around 20 / 22 and a high degree of homogeneity is considered necessary so that all members of the group can vouch for each other and serve as collateral when it comes to ensuring repayments. Upto December 31, 2007, PRSP organized as many as 22,214 COs most of these around credit.

A very large number of these COs have also used other opportunities like the creation of Community Physical Infrastructure (CPI), etc. An equally large number of COs have, during these nine years, become inactive having remained associated with the Program for different durations for receiving assorted advantages. The number of such COs is around 5,556. We have 251,795 households actively associated with our core Program. Another 83,197 households disassociated having remained with us for different durations and purposes. PRSP maintains gender segregation because this is what the communities prefer. The numbers of male COs are 57% and 41% of the COs are of the female. The rest are a small number of mixed COs. Gender balance has improved in recent years. The imbalance remains despite efforts because, given the hard conditions of field work, we are always short of female staff. Stakeholders and beneficiaries are, as a matter of Policy, always integrated with all PRSP interventions e.g. managing a School, a Health Facility, improving a watercourse or with arranging a CPI. Each of these has an appropriate group attached to it, comprising or representing beneficiaries and stakeholders. These groups are not included in the number of COs mentioned here but will run into hundreds of thousands. Merely as an illustration, those who received only the curative assistance, at the Health Facilities managed by the PRSP in the 12 Punjab Districts, were nearly 20 million during the FY 2006-2007. Likewise, PRSP is managing 300 Community Primary Schools and 750 Government Primary Schools and the cumulative enrollment exceeds 103,000. Such is the number of households whose lives and well-being are receiving a profound impact.

Micro Finance Savings

In its simplest and most common form, Poverty is a lot about being low on liquidity; low on liquefiable assets. A poor person may be identified by many diverse features but one feature is more likely than others. S/he is likely to be short of liquid/readily liquefiable resources. Understandably, therefore, PRSP endeavours to create a habit of saving. It tries to disabuse the poor of the belief that they cannot save because they are poor. Very soon, the poor are pleasantly surprised that even they can save though the amounts may be tiny and not very regular. The process is dull and slow but the results, after a while, are spectacular for the

poor. What PRSP has been able to institutionalize is regular savings every fortnight or so during a CO meeting. The amount to be saved is left to the judgment of the concerned member. It is voluntary but strongly recommended by the PRSP. PRSP has not been successful so far in optimizing the advantages of savings in any imaginative way. The best that the savers may have, therefore, received is the ability to use their accumulations for urgent or unforeseen requirements. PRSP has arranged the saving of much more than Rs.100 million while the balance on June 30, 2007 was Rs.51.36 million. Members of COs continue to draw upon these for emergent purposes from time to time. Savings are verified from Bank accounts twice a year at the end of June and December.

Micro Credit
Income poverty is a common, and perhaps the simplest, form of poverty. Experience shows that the poor can be as reliable users of credit as the non-poor. What is important, however, is that (i) credit should not place a burden that cannot be offloaded and that (ii) the use of credit creates or enhances the capacity to repay. The care that PRSP takes for the security of its credit program is three-fold. One, the amount is kept small so that it remains within the ability to repay conveniently. Two, the object of the loan is carefully verified to ensure that it adds to the income/assets of the credituser. And third, that the other members in the CO not only vouch for the use of the credit for the stated purpose but also for its repayment, for which the CO binds itself jointly.

Micro Insurance
Since 2004, PRSP has arranged with the SLIC to provide an insurance cover for the poor. Progressively, the insurance cover has been extended to 95,367 of the PRSP associates. The Policy covers Death, Accidental Death and Disability. For the poor as a class, this must be one of the first, if not the first, service of the type at this scale.

Capacity Building
When working for Poverty Alleviation, one of the foremost requirements is the Capacity Building (CB) of the poor. Poverty and low capacities, for dealing with life and its substantial
issues, go together. The two are mutually perpetuating. One of the major concerns of the PRSP has,

therefore, been to create and enhance capacities directly relevant to combating and alleviating poverty. During the first nine years, PRSP has organized more than 8,765 capacity building events. The largest in number are the Community Management Skills Trainings (CMST) and the Refreshers for updating and upgrading these skills. This training is for the Activists who are the backbone of PRSP operations. Trainings for optimizing advantages from natural resources like land and livestock are also very popular.

Community Physical Infrastructure (CPI)

The development of the infrastructure of local importance is of great interest to the poor. Physical infrastructure has received investment in practically every village in the Punjab over a very long period of time. This neither means that further investment is not required nor that the investment made so far has always accommodated the preferences of the poor. PRSPs strategy, however, vests the selection of the required physical development in the CO. Since May 2001, PRSP has arranged the investment of Rs.1047.82 million in the physical infrastructure of local importance. It is important to note that all this investment was on a shared basis. In every development, the beneficiary community contributed materially and participated physically. The monetary/material contribution made by the community is seldom less than 20% of the cost of the asset created. However, PRSP encourages the community to voluntarily contribute more than the stipulated participation. The justification for encouraging higher investment is to ensure enhanced interest in the creation and the maintenance of the asset. The matter of pride for the PRSP is not so much that it has arranged the investment of Rs.1047.82 million in creating physical infrastructure of local importance. A matter of much greater pride is that, of this amount, Rs.262.53 million was contributed by the beneficiary communities. The contribution guarantees that the investment has been efficiently used for the most-needed development, which shall receive solicitous maintenance.

Community Primary Schools (CPS)

One of the first windows that the GoPb opened to the PRSP offered an assignment for establishing and maintaining 100 CPSs. These were expected to gather the out-of-school children and to provide early childhood education to the very young. The object was to mainstream these children not to set up a parallel school system.

Each school was to receive Rs.200,000 as an Endowment and the income from it was to be used by a Village Education Committee (VEC) to arrange a local teacher, enrolment of a female, to run the school in a premises arranged by the VEC. With time, and falling interest rates, the endowment of Rs.200,000/- was yielding less and less for the school. In Phase-II of the Project, PRSP received Rs.90 million to establish another 200 CPS and to endow all 300 Schools 100 of the Phase-I and 200 of the Phase II with Rs.300,000 each. The performance of these 300 CPSs has been a source of considerable satisfaction. The VECs, as on December 2007, were engaging 421 teachers, of whom 317 were female. The enrolment on the 31 December 2007 was 16,901 of which 8,968 were female.
st

Khush-hal Pakistan Program

PRSP Partnered the GoPb in the implementation of this Program, which was the most important local development initiative of its time. As many as 509 projects were completed by the PRSP communities under this Program. To the Rs.80 million that the PRSP received from the GoPb, the local communities contributed Rs.24.534 million, i.e. 31%, compared to the stipulated 20%.

Upgradation of Primary Schools to Middle Level

This is the only GoPb Project that envisaged up gradation of Government Primary Schools to Middle level with community participation. The local community was expected to pick up 20% of the capital cost. Originally, PRSP was assigned the up gradation of 10 Primary Schools. But it was soon realized that putting up a contribution of Rs.163,700/- for an up gradation was not a reasonable expectation from the poor. And this is what the 20% contribution came to. Accordingly, PRSP sought a downward review of the number of up gradations. By the close of the FY 2006-2007, PRSP had arranged the additional physical facilities at 7 Primary Schools for being raised to Middle level.

PRSP-PPAF Partnership
Pakistan Poverty Alleviation Fund (PPAF) is the most prominent of poverty related financing institution established by the Government of Pakistan. PRSP is among the earliest and major Partners of the PPAF. The Partnership has arranged PPAF support to the PRSP in the form of:

Loan for disbursement of micro-credit. Capacity Building Grant which shares cost on a diminishing scale. Grant for CPIs. Grant for HRD.

PPAF picking up 70% of the capital costs relating to the foregoing.

Both the PRSP and the PPAF started operations about the same time. Both organizations have, therefore, been susceptible to the common teething problems. Both have persevered steadfastly and have now entered upon a mature phase hopefully contributing to the achievement of shared objectives. So far, the PRSP has been unable to receive the optimum advantage from the various opportunities that were available from the PPAF from time to time. It is, however, a matter of some satisfaction that the Partnership operations were also able to accomplish significant outputs in every phase.

Missing Facilities in Elementary Schools

The Presidents Program for providing missing facilities at Elementary Schools was a hugely popular window. It enabled the poor communities to sponsor and participate in the provision of vital missing facilities at the schools their children attended. PRSP arranged boundary walls for Girls schools, toilets, drinking water, furniture, electrification, additional class rooms, etc. under this Program. The number of Elementary Schools where missing facilities were provided was 514, at a cost of Rs.25.75 million, of which the communities contributed 22%.

Primary Healthcare
This has received considerable notice, locally and internationally, as the Chief Ministers Initiative for Primary Healthcare (CMIPHC). It started from Rahim Yar Khan District, in March 2003, and went on to eleven other Districts in the Punjab between December 2003 and June 2005. It was named the Chief Ministers Initiative to recognize the generous patronage it received from the Provincial Chief Executive. It was, most of all, this patronage which made much good work possible. That memorable patronage now sadly belongs to the past. It has been replaced by painful and deliberate neglect. The wasted potential, that held vast possibilities for the poor, would be mourned by all those who, in one way or another, are working for the poor. The story of the CMIPHC is the story of the poor the cruel and harsh realities of their lives. It is a graphic account of the wages of poverty of how easily and thoroughly the cause of the poor can be put aside. It awaits a worthy narrator to tell the story to an audience that has the time and the desire to hear about the lives of the poor.

Village Electrification
In April 2003, PRSP embarked upon an unusual Partnership. This arranged to provide electricity to 16 villages in Sialkot District. The work was done strictly by WAPDAs specifications, which have since taken over the villages for power supply. What is noteworthy is that the prospective consumers

contributed 48% of the capital cost of electrification. The balance 52% was contributed from the PPAF funds.

Rewarding Innovations
The USAID came up with an offer of financial support for 3-way Partnerships for the creation of facilities of local importance. The parameters of the Project required a partnership among (i) the local communities, (ii) a Local Government and (iii) a For- Profit organization, e.g. a flour mill or a cotton ginnery. PRSP had the coordinating role for the Punjab Province. The Project supported ten local developments, which included establishment of Dispensaries, safe Drinking Water facilities, civic Parks, etc.

Integrated Pest Management (IPM)

PRSP received the assignment from the Punjab Agriculture Department to oversee the IPM Project in the Khanewal District. The Project is conceived around keeping the cotton crop protected from pest attack by introducing, propagating and promoting the population of friendly insects and using these for keeping the pests under check. It also propagates ways for controlling damage from the use of pesticides as also reducing the number of sprays and the expense. The same strategy is used for other pest attack-prone crops like vegetables, etc.

National Program for Improvement of Watercourses (NPIW)

PRSP received this assignment in August 2004 to improve 2000 watercourses over the 4 year Program period. Later, Watercourses in Barani areas were also included in the number. In the Districts where PRSP was not operational, it assigned the work to the NRSP which was able to do well and contributed a large number of improved watercourses. This has been a hard Project to implement, with most of the PRSP Districts throwing in the towel. It has been an uncomfortable Partnership. The Department of Agriculture and the Directorate General of Water Management remained less than happy throughout. Ostensibly, this was because PRSPs performance was adjudged slow. In making this judgement, however, it was disregarded that the terms of the Project were extremely hard to observe. Also that the watercourses assigned to the DG (WM) were effectively made the responsibility of the resourceful District Governments. All accomplishments claimed for this component are, therefore, the fruit of the executive writ forcefully wielded and enforced by the District Governments. PRSP, on the contrary, confined itself to advocacy, persuasion, participation and the like which can have limitations when the terms are hard to conform to. The Partnership appears to be headed for early conclusion.

The assignment to the PRSP envisaged improvement of 3,000 watercourses over four years both canal-fed and Barani. At the end of December 2007, PRSP had reported 1,110 as completed while a residual of 34 watercourses are still in the process of completion. This output is for three years with the first year being mostly devoted to mobilization.

Elementary Education
PRSP has a share in the Punjab Education Sector Reform Program (PESRP). It is implementing a part of the School Councils centred Project under the PESRP. It requires the establishment and capacity building of School Councils for each of the 750 Government Elementary Schools in Gujrat and Faisalabad Districts, training ofteachers, providing missing physical facilities, increasing enrolment and participation, decreasing drop-out rate and teacher absenteeism, etc. PRSP is, so far, ahead of the outputs envisaged in the Project and has been able to devote due attention to quality considerations. The Project requires: Re-activation and establishment of School Councils and their capacity building. Training of all teachers at the 750 schools. Improving participation and retention rates of students. Reducing dropout rate of students. Reducing incidence of teacher absenteeism. Provision of missing facilities and repairs through School Councils.

The Project has been largely a success. It has touched some of the central issues in the elementary education sector.

Sustainable Livelihood in Barani Areas (SLBAP)

It is an Asian Development Bank funded Project. PRSP is implementing it in 4 Districts of Narowal, Gujrat, Sialkot and Layyah. The Project has 5 components: Union Council Development Fund (UCDF) Targeted Poverty Alleviation Fund (TPAF) Literacy through Skill Training (LTST) Support to District Line-Agencies Institutional and Implementation Support

PRSP has been contracted to implement the Targeted Poverty Alleviation Fund (TPAF) component in 100 Unions Councils of the four districts (Gujrat, Narowal, Sialkot and Layyah). The start up has been generally slow for a variety of reasons but all efforts are being made not to let this interfere with the outputs envisaged at the end of the first two years. The Project envisages the preparation of 100 Baseline Surveys one for each UC; formation of 2,300 COs; skill enhancement of 6,700 Activists; vocational skills provision to 5,580; and disbursement of 22,000 loans of a total value of Rs.31.350 M. The Project also envisages the creation of 1,100 small village infrastructures at a cost of Rs.158.4 M.

IRDP for Poverty Alleviation in Southern Punjab

This Project was approved during June 2006 with the FY 2006-2007 as Year-I of the 4 years. PRSP is to implement the project in 124 Union Councils with the formation of 4,000 COs/VOs in four districts of Rajanpur, Dera Ghazi Khan, Layyah and Muzaffargarh with the object of poverty reduction through on-farm and off-farm income generating activities, improvement of socio-economic status through provision of Micro Credit and the creation of small physical infrastructure.

Establishment of Milk Processing Plant in District Sialkot

Livestock & Dairy Development Department of the Punjab Government and the PRSP entered into a Partnership for enhancing production of marketable milk in six Districts of Sialkot, Gujranwala, Hafizabad, Mandi Bahau-Din, Gujrat and Narowal and the establishment of a milk processing plant in district Sialkot. The objects of the Project are to promote livestock management; enhance productivity through breed improvement, better animal management, provision of veterinary services and establishing a producer-friendly marketing network. During the Project life, spanning five FYs (20062011), PRSP shall form 500 Farmer Organizations (FOs). It shall establish 7 Milk Collection Centers, 50 Chilling Centres, 20 Veterinary Centers for productive and curative services, 2 Feed Mills and 2 Semen Production Centers. The Milk Processing Plant that shall come up in Sialkot in the private sector after the availability of sufficient marketable surplus is arranged and ensured.

Primary Ministers Special Initiative for the Livestock Sector

Livestock is an important element of rural economy in Pakistan since 30 to 35 million people are associated with livestock resource. Keeping in view this importance, the Government launched the Prime Ministers Special Initiative for the Livestock Sector at a cost of Rs.1,696.40 million. Eight Rural Support Programs joined hands to implement this Project for Productivity enhancement,

exploitation of export potential, import substitution of milk and improvement of marketing infrastructure for the livestock products. The Project duration is five years. The Project envisages one or two DVM added to an SMT (one SMT typically comprises Social Organizer(s), One Field Engineer, Field Coordinators, an Accountant, etc.). Every DVM shall establish a Clinic. These Clinics will provide services at cost. An estimated number of 7,250 community-based workers will be trained by the DVMs. PRSP shall arrange to provide livestock production, extension and veterinary services to the poor farmers in 693 Union Councils in 21 districts.

PRSP Head Office: 7th Floor, LDA Plaza, Kashmir/Egerton Road, Lahore Phone: ++ (92-42) 636 9042-43, 6303745 Fax: ++ (92-42) 636 9043 prsp@brain.net.pk Planning, Monitoring, Evaluation and Research Section: prsppme@yahoo.com Engineering Section: prspcpi@hotmail.com MIS Section prspmis@yahoo.com

PRSP-Organizational Hierarchy

Fig.1.1

District Khanewal-Organizational Hierarchy

District Manager

1-District Engineer

2-SMT-Incharge

1-Admin Officer

1-District Accountant

2-Sub Engineer

(Each SMT) 1-Senior Social Organizer 2-Social Organizer 2-Junior Social Organizer 1-Field Coordinator

2-Field Unit Accountant

Supporting Staff 2-Naib Qasid 2-Driver 1-Chowkidar

Fig. 1.2

HUMAN RESOURCE MANAGEMENT PROCESS IN ORGANIZATION To run the organization operation properly and to achieve the organizations goals, the organization needs qualified, competent, target oriented and right employees. Human Resource Department helps to find the right person for the right job. This is the major work of Human Resource Department. Employee recruiting, selection, training, management development, and employee compensation all these things have done under Human Resource Department. To achieve their goals and mission they provide effective training program, design attractive compensation package, provide performance appraisal. These entire things are done for finding the appropriate employee for the PRSP how can assist the organization to accomplish its goal PRSPS visioning and revisiting of the Program strategy goes on with earnestness. The object is to evolve, in course of time; a synthesized strategy best suited to the Punjab landscape. PRSP adopted a paternalistic stance toward employees and their needs (as did many other developing organizations) and promoted employee empowerment. However, although the company had a positive HR philosophy and offered generous benefits, their application was more or less standardized and policies applied uniformly to all employees. This did not always work well, as different employees had different needs. Following are duties and responsibilities of Human Resource Department of PRSP: To perform job analysis To get engaged with recruiting and conduct initial screening To design the orientation, training and development materials. To help in designing organization development activities. To work with employees compensation and benefit To provide sufficient information in order to complete the processing of recruitment and selection. Duties with Administration sector under PRSP Human Resource Department o Transportation Management o Protocol

o Health and safety of the employee. These are the main objectives of Human Resource Department of PRSP: Providing the right person for the right job. Job satisfaction Career planning and development Reduce the employee turnover by recruiting and selecting the right person.

5.1 HUMAN RESOURCE PLANNING (HRP) AND FORECASTING Human resource planning is the term used to describe how companies ensure that their staff is the right staff to do the jobs and the Human Resource Forecasting is the techniques used to forecast the need of specific worker for ongoing activities or due to increasing work area or business. 5.1.1 HRP PROCESS Human resource basically means to fulfill the human capital no matter in any field or area. Apparently, most of the field requires human power to handle and to maintain in order to manage. Their planning will consist of how to optimize this human capital in an organization for it to achieve the maximum profit. Workforce planning is a systematic approach to anticipating staffing needs and determining what actions should be taken - starting now - to meet those needs. This multi-step process involves: Gaining a thorough understanding of your current workforce; Envisioning the operating environment that will most likely exist in the future; Identifying the competencies that will move the firm forward to overcome challenges, seize opportunities, and thrive in what will undoubtedly be a new world of work. Developing strategies and implementing tactics for building this workforce.

Workforce planning puts you "one step ahead," resulting in informed staffing decisions that benefit the company in both the short- and long-term. Its many advantages, however, are not limited to recruitment and selection; it also provides a framework for other HR policies and

programs such as training, compensation, and diversity management. More importantly, it helps you recognize the most effective and efficient use of your organization's human capital in creating a workforce that is 5.1.2 FORECASTING HUMAN RESOURCE REQUIREMENTS In the age of competition, companies do not have any other choice than to compete better than their competitors. Human Resource Management has a critical role to play in supporting the corporate strategic plan. All the HR functions contribute positively to achieving the objective. The main task of human resource management is to support other departments to have the best people. Therefore, there is a critical need to get the best people in the right place at the right time. Forecasting helps to match the requirements and the availabilities of employees. There are two kinds of forecasting methods: (i) (ii) Qualitative methods Quantitative methods.

Matching human resources with planned organizational activities for the present and the future is one of the main problems faced by an organization. Human resources have a certain degree of inflexibility, both in terms of their development and their utilization. It takes several months to recruit, select, place, and train the average employee; in the case of higherechelon management personnel in large organizations, the process may take years. Decisions on personnel recruitment and development are strategic and produce long-lasting effects. Therefore, management must forecast the demand and supply of human resources as part of the organizations business and functional planning processes. Long-term business requirements, promotion policies, and recruitment (supply) possibilities have to be matched so that human resources requirements and availability estimates (from both internal and external sources) correspond sufficiently 5.1.3 METHODS TO FORECAST HR NEEDS To find the appropriate person for the company Human Resource develop source of qualified applicant and engaged in recruitment activities. They construct contact with different source and try to build a pool of candidate. They try to assemble candidate of the organization and

from them they try to find out the right person. Recruiting is the first step for creating the human resources for the organization. Organizations can recruit employee when they need. PRSP recruit employees after consulting the monthly staff statements and manpower status from all districts of Punjab. In case of shortage of staff after reviewing the staff statements from all the districts of all regions, The Chief Operating Office directed to Regional General Managers to fill vacancies at their level strictly on merit basis. So Regional General Managers then precede the recruitment process. In case sanctioning of new posts from the Higher Management at different Regional offices and district offices, the HR Department first prepare the Job Description, Training Programs, Budget etc. To find the human resource requirement they consider all three techniques: 1. Trend Analysis: Basically trend analysis is a study of a firms past employment needs over a period of years to predict future needs in order to recruit and select the adequate number of employees. PRSP do use trend analysis in order to determine the number of employee need each period. Because they have to plan for different areas throughout the whole province for which they need to rely on past records of recruiting employees. 2. Ratio Analysis A method for forecasting future staff needs by using rations between disburse loan volume and number of employees, PRSP is micro finance institute, it needs to rely on ration analysis to have proper distribution of employees in loan disbursement sector and loan recovery sector. 3. Scatter plot A graphical method used to help identify the relationship between two variables. Most of the time, PRSP use scatter plot. The reason behind this is the populated area, where the PRSP is currently working. It varies upon the population density, location of that place and their budget to provide service in those areas. Since they have to make plan depending on these factors, they prefer scatter plot to determine the number of employees for recruiting and selecting.

5.2 EMPLOYEE RECRUITMENT AND SELECTION Subject to the decision of the Appointing Authority, all appointment shall be made one of the following methods. a. By promotion on the basis of merit and experience. b. By direct recruitment and c. By borrowing services of personnel from Government/statutory organization.

All regular appointments to Management and Professional positions shall be made competitively. Applications, if any, from existing staff members who fulfill the required qualifications are and meet other specified conditions for appointment for aforesaid positions shall be considered alongwith other applications.

Appointing Authorities for each category of staff is at ScheduleI to these Rules. The areas of work at the PRSP include jobs in Micro Finance (Loaning) Administration Engineering Teaching (Community Primary Schools)

An employee shall retire from service on completion of his/her sixtieth year of age unless his/her service is extended for a specified period under special circumstances to be recorded by the Appointing Authority and approved by the next higher Appointing Authority. Recruitment is a particularly important HR process for PRSP both in terms of value and cost. Handling applications efficiently has a significant influence on PRSPs goodwill as an employer. 5.2.1 SOURCES OF CANDIDATES Every organization has the option of choosing the candidates for its recruitment processes from two kinds of sources: internal and external sources. The sources within the organization

itself (like transfer of employees from one department to other, promotions) to fill a position are known as the internal sources of recruitment. Recruitment candidates from all the other sources (like outsourcing agencies etc.) are known as the external sources of recruitment. PRSP recruits from both internal and external source. 5.2.1.1 INTERNAL SOURCES Before hiring the outside candidate and organization should forecast the inside candidate. Internal Recruitment (Benefits): 1. Its lesser expensive as compared to recruiting a person from outside the organization because one avoids the cost of placing an ad then the whole process that follows etc. 2. The new person already knows about the organization culture so takes lesser time to fit in. 3. It creates motivation in the people of the organization as they believe that important positions can be filled by them as they show the promise and potential for them. Creates loyalty in the employees. 4. Reduces boredom by effective job rotation. PRSP keeps a record of a every employees performance evaluation according to Key performance indicators (K.P.Is). They evaluate before training and after training. They basically evaluate employee on the basic of 3 skills functional, behavioral and conceptual. After gathering all possible information about their employees performance they construct a position replacement card. They show here possible replacement, present performance and promotion potential. They also show what type of training an employee need for a particular job. They use it for promoting people for upper level or top-level management and technical position depending on the company situation. They also use it for job rotation. By using this technique they recruit most of their internal candidate. Three important ways of internal recruitment Promotion from within Job posting Contacts and Referrals

5.2.2.2 EXTERNAL SOURCES This refers to the filling of job vacancies from outside the business (contrast with internal recruitment). Most businesses engage in external recruitment fairly frequently, particularly those that are growing strongly, or that operate in industries with high staff turnover.

External Recruitment (Benefits):

1. Helps bring "fresh blood" in the organization. New ideas and approach comes with a person from outside the company. 2. Sometimes you need to acquire a particular competency / skill which is not already available in the organization so hiring an individual from outside with that competency / skill is the fastest way to get started. 3. When the organization needs to develop a totally fresh thinking or wants to go for major overhaul, it often does that by recruiting people from outside at the higher positions to drive that change throughout the company. The new guy shakes up the things and sometimes this is what the organization needs. PRSP uses different types of sources to find the candidate for their organization. Under this source, PRSP follows different kinds of sources that are described below. Advertising: PRSP uses different types of advertising to recruit employees. They generally go for newspaper advertisement and online advertising. Online advertisements are presented by their own website www.prsp.org.pk. Executive recruiting: Executive recruiters are special employment agencies retained by employees to seek out top-management talent for their clients. In order to have qualified candidates who are employed and not actively looking to change jobs, executive recruitment is also used as source of candidates in PRSP.

College Recruiting: As an important source of professional and technical employees, college recruiting is used by PRSP. The organization recruit employees from job fair also. They have participated in several job fairs. They recruit fresh graduate from university as well. Sometimes, they recruit fresh graduate after they have completed their internship in their organization. Forecasting the supply of Outside Candidate: PRSP consider the general market conditions, local market condition and occupational market condition when they recruit because it helps them to find whether they have suitable supply of candidate or not. The Procedure of CV sorting: PRSP sorts their candidates CV on the basis of few factors. These are: A. Educational Qualification, B. Candidates Experience, C. Skills in the specific field:

Staffing pattern: The Board of Directors shall approve a basic staffing pattern listing the regular positions at the lead Office and in each Region through the Budget for the financial year. Classification of employees and eligibility criteria: For the purpose of these rules, there shall be the following categories of employees: a. Employees: Employees appointed on regular basis who have completed the prescribed probationary period (which may include the original and the extended if deemed necessary) and have been confirmed in writing in their post against vacancy of an approved regular position by the relevant Appointing Authority of the PRSP.

b. Temporary Employees: Employees who have been engaged temporarily for a specified assignment and time, or employees under probation, or such employees who are engaged in a work of a temporary nature. For the purpose of distribution of duties, the employees shall be classified into the following categories based on their qualification, experience and duty to be performed. a. Management Staff: Persons providing leadership to an organizational unit. Qualification: Minimum qualification for recruitment to Management position is a Masters Degree or equivalent Professional Degree. The Board may specify such further requirements for academic background and experience as it may deem appropriate before proceeding to fill a management position. There shall be three distinct Grades with the Management Cadre. b. Professional Staff: Persons to provide professional back up to the management. Qualification: Minimum qualifications are a Masters degree and the Board may specify such further requirements for experience as it deems appropriate. There shall be four distinct Grades within the Professional Cadre.

c. Support Staff: Persons who provide support services to the Management and Professional Staff. Qualification: Minimum academic and professional qualifications and experience as specified for each post by the Board. There shall be three distinct Grades within the Support Cadre.

d. Auxiliary Staff: Persons who provide auxiliary support to the other staff and perform maintenance functions. Minimum Qualification: Primary to Matric level formal education with significant experience exhibited through proficiency in the performance of the job. There shall be three distinct Grades with the Auxiliary Cadre.

5.2.3.3 EMPLOYMENT SELECTION PROCESS Candidates can apply for a position in PRSP via an online CV submission through e-mail. They can also get information of new advertised jobs on the PRSP website. Candidates can apply for a specific vacancy, a student position or a position through the open applicant pool. It depends that where is the vacancies are announced to fill. If these positions are locating within the different districts in regions then Regional General Managers are responsible for collecting application and sort out for further processing to complete the selection process.

PRSP always prefer those candidates who have the required qualifications, sufficient related experience and if they are from the same local community area. Human Resource Department of PRSP announces for the upcoming job opportunities on website as well as in the leading newspapers of the country and receives applications and prescreens applicants. HR decides which applicants to interview contacts and arranges interviews with suitable applicants and selection process is completed and employee is called for joining and asked to sign agreement before joining. PRSP go through some selection process when they hire employees. They undergo some initial screening and testing techniques when they select an employee. These techniques help them to find the right person for the right job. They take interview of candidate; arrange different types of tests to find the appropriate person. Then they give final decisions. HR

Manager conducts initial screening part for the selection procedure. Executive Management who are responsible to take the final decision conducts the remaining part. However, for the selection procedure, PRSP follows two steps. These are: 1. Written Tests: The candidates who apply for the job should sit for a written test. The candidates who pass in the written tests are selected for further processing. In order to take written test, they generally follow two types of tests. These are given below. A. Specific cognitive abilities/mental abilities: The method is uses for measuring mental abilities such as inductive and deductive reasoning, verbal comprehension, memory and numerical abilities. Thus, PRSP use this type of test in order to select employees for the different posts in the company. B. Achievement test: These methods are widely used in employment screening. Since, it is basically a measurement of what a person has learned throughout his/her life; therefore PRSP uses this method in order to recruit and select employees for administrative section who are able to apply their gained knowledge in their practical field so that PRSP can find out the right person for the right job. 2. Interview PRSP has their own design template for taking interview for applicants who pass the written test. The different interview procedures are use in PRSP: a. Stress Interview: Most of the time PRSP takes stress interview for the only technical supported fields and higher management position. b. Job related interview The organization usually takes job related interview for every candidate in primary stage. c. Panel Interview PRSP sometimes use panel interview where groups of people of different jobs are encouraged to ask questions to evaluate the candidate more differently. However, sometimes they directly call for the interview without taking the written tests.

3. Other tests: Beside written test and interview PRSP likes to go through some other types of test. Presentation Skill Test PRSP takes presentation skill test to find whether the person is a good presenter or not. Theses types of test are taken for evaluating the ability for marketing or sales division. Medical Test PRSP take medical test from the Govt. Hospitals to find the employees physical condition. It helps them to find whether they are physically fit for doing their job properly. Final Selection After completing the entire test PRSP give their final decision on the basis of the results of all the different kinds of test. Then, an employee is finally selected to work in the organization at a joining date given by PRSP.

Appointment Letter/Job Offer Letter The letter of appointment for all staff members shall be issued by the Appointing Authority on the standard format, approved by the Board, clearly indicating the terms and conditions of the employment.

The Job description for inclusion in the appointment letters for use in performance evaluation shall be approved by the Appointing Authority.

The Chart of recruiting and Selection

Recruiting

C.V Sorting

Written Test

Interview

Other Test

Final Selection

5.3 TRAINING AND DEVELOPMENT In April 1992, Moberg hosted a two-day environmental seminar for IKEAs top management to increase their environmental awareness and to get their acceptance of the proposed environmental action plan. At this seminar, IKEAs environmental task force presented its analysis of IKEAs relationship with the natural environment. Karl-Olof Nilsson, Group Staff for Environmental Affairs, recalls: We stated that we had discovered that we at IKEA are environmental gangsters, that we are a threat to the environment. We are violating the possibilities of having a sustainable society. The task force used only three overheads to present the results of their analysis. One slide contained IKEAs success figures such as increased sales and new stores opened the previous year. The second slide pointed out that IKEA had distributed some three million cubic meters of future waste in the previous year. The third slide was a hand-drawn illustration of IKEAs relationship with the environment.

The environmental task force summarized by telling IKEAs top management that when they analyzed how IKEA works, how other companies work and how society works,what we are doing is actually transforming resources into waste. The process is measured at the cash register where we measure turnover. What we are actually measuring there is the rate at which we are transforming resources into waste. After the task force analysis was presented, Dr. Robrt introduced The Natural Step framework as a way to begin reconceptualizing and redesigning the relationship between IKEA and the natural environment. After the seminar, the group management approved IKEAs first environmental action plan, and launched a program of education and training. IKEA decided on a train the trainers approach to disseminating the environmental education. Trainers were chosen from each IKEA department. They attended an intensive week-long trainers seminar and received a trainers kit consisting of a manual and overhead slides. IKEAs goal was to provide full training to all co-workers directly involved in product development or with direct contact with suppliers or customers, about 90 percent of IKEAs 20,000 employees at that time. All other co-workers were offered the opportunity to attend a shorter version of the training. They started with their major environmental training in 1993, and including the retail side, the majority of the training was done by 1995. However, by the end of 1997, the coverage of the training program in IKEA stores around the world was uneven. In general, where there was higher demand and higher interest about environmental issues in the market, such as in Germany, the training rate was as high as 90 percent of the co-workers in a store. In other cases, it was closer to 50 percent. After five years experience, IKEA is developing its Natural Step-influenced environmental education in three general categories: 1. Basic training for all co-workers to create awareness, understanding and know how, and refresher training for co-workers who took part in the extended training in 1993-95 that will include information on what has occurred in IKEA since that time and what is being planned for the future. 2. Professional training for (a) Specialists to increase knowledge about the environmental aspects in IKEAs functional areas. (For example, IKEA has developed a program for transport buyers and transport planners who need to know more about the environmental aspects of the transport sector);

(b) Environmental coordinators and environmental trainers to develop more extensive environmental knowledge and greater capacity to help other coworkers see the connections between their day-to-day work and the natural world; and (c) Suppliers. 3. Master training, which is more advanced training for co-workers that support the professionals, to develop either a very deep knowledge in one or a few areas, or a very broad general knowledge. a) All coworkers are required to attend training sessions and compulsory meetings as scheduled by IKEA. b) IKEA reserves the right to amend or cancel the dates/times of scheduled training sessions or compulsory meetings, as deemed necessary from time to time with 48 hours' notice. c) IKEA training sessions and meetings will be held at a nominated and appropriate venue. d) Where a coworker attends a training session or compulsory meeting, attendance will be paid at the coworker's relevant rate of pay. e) Where a Permanent Co-worker is required to attend a training session or compulsory meeting on a Non-Working Day, attendance will be paid at the coworker's relevant rate of pay, with a minimum 2 hour payment. f) In the event that IKEA cancels a training session or compulsory meeting within 48 hours and it was scheduled to take place on a coworker's Non-Working Day, a minimum 2 hour payment shall be made at the coworker's relevant rate of pay. g) If IKEA does not require on a compulsory basis, but encourages coworker h) Attendance in meetings, such attendance will be facilitated but not paid. Objectives of IKEA training Programs: IKEA primary objective of many training programs is to teach the force how to be more productive. Usually, a persons productivity will increase with experience. But if some training can substitute for some of the needed experience, higher productivity levels should be reached earlier. The most important objectives of training program are shown in given diagram:

Improved
Communica tion

Improved Self reliance

Increased Productivit y

Training Program Objectives of IKEA

Improved Morale

Improved Customer

Training Plan: Training gives new employees the skills required to perform their jobs. So make the training program perfect IKEA plans some steps, which are helpful for the fresher. IKEA follows steps to conduct training. IKEA follows the following steps to conduct training Who should be trained:

As newly hired person doesnt have enough knowledge about the company and his job, training can help them in this regard. Although experience people have knowledge about their job still they need training to cope with the changing world. IKEA mainly follows need based training. That is, whenever the supervisor finds that his/her subordinates need sufficient training, they immediately take necessary steps and arrange training programs. The supervisors use several methods to assess training needs. They are follows: Performance testing Job Analysis Force Survey

Performance Survey Observation

When training should take place: Timing of the training has two basic attitudes. Some organizations prefer training first than go for the job, where as some organizations want training based on after job performance. In IKEA, the Training programs are made as yearly basis for providing training on techniques and skills for all level of their employees including the one form other departments because they believe that in a organization everybody needs to have skill. The marketing departments, sales department and HR department altogether do the overall plan. This yearly plan for training is enhanced by the monthly meetings held in every spots where IKEA subsidiaries. These meetings are referred to as pre-cycle briefing meeting. These meetings try to find out in which areas and for which employees training is needed. In the beginning of the training, expectations from each participant in the training program are assessed and according to that the manager design the content of the training. At every meeting, each department discuss and analysis the performance of the worker of their department in the past month and identifies whether they rare performing accordingly or not. If someone fails to performs and cannot reach the objective then the need for training arises. Plan of every individual department also has significant impact on the training plan because only proper training can ensure the implementation of the plan. They yearly plan for providing training makes sure that it can be helpful for the achievement of the objective of the plan. The training department plans the training before 2-3 months form time intended to provide the training to the employees. The training manager is responsible for preparing the budgeting, plan on which training for whom in all departments, planned actions, and also give guidelines to the human resource department for recruitment and selection. However, training manager specifically works with the related training. According to the

companys perspective, everybody should have knowledge about their related job. So, the training manager plans what type of training is required for new recruits and the existing personnel and how the training is going to change the current performance and will help in achieveing the desired level of performance. Both the managers analyze the performance of the trainee after attending the training program taken place in the last month and set strategy for the next months training plan. Where training should take place

Training can be provided in both centralized and decentralized manner. Centralized training occurs when all the people come to one central location (often home office ) to have training. On the other hand decentralized training of people is usually held in field or regional offices. IKEA both centralized and decentralized training. General management training program for the top level executives are mainly held in home office because centralized school normally has more formal facilities for training than are available in the field. As top- level executives need more advance training, thats why, it usually held in the head office. On the other hand, those whose works are mainly field based, they often have to go with their senior people to the field, have to do on-the-job training, attend seminars, conferences etc to increase their outer knowledge.

Who should be the trainer

A trainer is the person on whom the success or failure of the whole training program is dependent. There are three types of trainers by, they are1. Regular line executives 2. Staff personnel and 3. Outside specialists,

Because each has certain advantages, it is not usual to find organization using all these three types as well as using one or two types. It basically depends on the size of the firm, the characteristics of the product line, the focus of the training where the sessions are held etc. IKEA has both line executive trainer and outside specialists. The HR manager and senior supervisor usually train their own force. In that way, the trainer can get better understanding about the laggings of their force and can take necessary steps according to that. On the other hand, force also get known environment because of their own supervisor as trainer. IKEA also bring outside specialists from abroad. In this way, they get most advance and recent information form their competitors. In IKEA, the effectiveness of a training program is measure by evaluation of the trainees. This evaluation is necessary in terms of assessing the values of training and in terms of improving the design of future programs. There are mainly four customers based on which the IKEA evaluates the success or failure of each training programe. The four outcomes are Reaction Learning Behavior Results

After each training session, each must have to submit an annual assessment. In the annual assessment, each trainee is asked to do report regarding the training program and is asked to do presentation on the items they have learnt. During the training, quizzes and assignment are also given among the trainers. The effect of training on their performance are evaluated thought performance they have done after taking part in the training compared to the performance they used to do before the training and by this the organization measure the effectiveness of that training program. The trainers who have gone abroad for attending the training program are required to submit a report regarding on the materials taught in the whole training program. This type of evaluation helps both the trainers as well as the trainees. The trainees can compare their own performance and try to improve

according to that. The trainers can judge the effectiveness of training and can develop better strategy for the upcoming training program. 5.3.1 TRAINING NEED ASSESSMENT The training program is vital link in the process of converting the recruit into productive representatives. The money, which is spent on recruiting and selecting people, may be wasted if their selection in not followed up with proper training programs. Additionally, experienced reps may not improve or even maintain their productivity if they are not provided with an adequate amount of continual training. So the purpose of training is to relate and improve the specific performance related skills, attitudes, perceptions and behaviors require peoples success with the state of readiness of the force. As IKEA is leading of home furnishing business, they always want to serve their best. That is why, they have very strong and effective training development to train the best training to their employees. At IKEA the top-level management believes that their primary competitive advantage comes from their employees. In the home furnishing industry, all of they must consinuouslty upgrade their skills and knowledge in order to maintain this competitive advantage. Their training programs are based on the job natures and the performance of the employees. Their goal is to attract, retain and motivate the very best and to do that they support training, development and business education. Primarily, the importance of training stems from rapid change in the environment . As developing country, people, in general, are not very aware about the technological changes that are taking place. Training basically seek to take human inputs recruited or even existing employees and turn them into productive part of the company. Training programs should be taken as a continual, ongoing process, which improve the scenario in different dimensions such as: Training process is conducted to provide the fresher the basic knowledge which is required to perform their specific job perfectly. To implement the basic knowledge, IKEA provides practice session for the new employees. IKEA believed on the more practice the more perfect employee. Thats why they prefer more the practice session.

Training provides the people with better improved knowledge, working habits, working techniques which are essential part to achieve both employee and company satisfaction and thus retaining them in the long run.

Training programs also help trainee to develop positive attitude about themselves and company as a whole.

Therefore, training works as one the most vital weapons to achieve overall, long- run goals of an organization. IKEA uses different training techniques depending on the content, purpose of the training program, participants of the program as well as time required for the completion of the training. The training program of IKEA is conducted before sending the entry level employees to the workstation. The training need of each employee is analyzed through two processes: Training Need Analysis (TNA) Skill Gap Analysis (SGA)

The results of these two process measures how much training each employee needs. The Training Process: There are three types of training process: 1.In-House Training: The training is provide through the vendors. Employee supervisors or line managers provide a coaching for the new employees. In coaching, lectures are delivered to provide knowledge related to the specific jobs. A lecture is the best way to present a basic outline of a subject in a shorter time to a larger number of trainees than any of the other techniques. For example, when information about IKEA precuts, new services, and new findings in the research and company information, market condition is to be given to the trainees then the training

department adopts lectures. With this techniques, a trainer can handle a higher number of participants and give greater volume of information within a short time period. 2. Foreign Training To implement new technology or products IKEA hasve to train their new employees from foreign countries. They have arrange for international training for their employees according their performance. In this case the employee has to sign a bond assuring the company that he will not leave company next few years. This duration varies based on the training.

2. Job Rotation: IKEA provide job rotation to the entry- level employees. In this process they dont send their employee of one department to another department for training. What they do is that they just send employee of one branch to another or one region to another. 4. Discussion: In IKEA, when any new system is launched or when there is any need for changing the technique or policies, discussion is used as a training method where both the trainer and the trainees can share their thoughts and opinions. During the leadership training, induction training as training on advanced selling skill; the training department usually prefers discussion. Sometimes, when cases are given to the trainees to solve the problem and suggest recommendation, group discussion also takes place among the trainees. Supervision of Training by IKEA HR Department Though the training programs are provided by different departments, the overall supervision is upon the HR department. They look after the overall process and do some routine functions. They are as follows:

Prepare, maintain and update training related database. Prepare career development plan Prepare induction training manuals/modules Evaluate training program Make agreement between IKEA and employees for overseas training To communicate with trainers/instructor

5.3.2 EMPLOYEE DEVELOPMENT Management is development is any attempt to managerial performance by imparting knowledge, changing attitudes, or increasing skills. For the past few years management developments focus has been shifting from preparing managers to fill higher level slots to preparing them to meet challenges of managing in past paced environment. Increasingly, therefore, the emphasis is on developing a managers ability to learn and make decisions under conditions of rapid change. The management development program may be aimed at filling a specific position, such as CEO, perhaps with one of two potential candidates. When it is an executive position to be filled, the process is usually called succession planning. Succession planning refers to the process through which senior level opening are planned for and eventually filled. When IKEA selects their own employees to fill the vacant higher positions they look for the employee who are ready to get higher position. As they do not follow the personnel replacement chart or position replacement card they have to make those employees ready to acquire the higher position. IKEA conducts development program for them. It helps those employees to have the ability to take decisions those are required in the higher level position. Those who deserve the higher position receive a development process conducted by IKEA but its true that their development programs are not well organized though they take some necessary steps for developing their employees who are working inside the organization. To conduct a development process IKEA follows the following on the jobs techniques:

1. Job Rotation IKEA provide job rotation to the managerial employees. 2: Junior Board It is used for operational decisions in most cases. But sometimes it is used to take very few strategic decisions (example: to design training program). To attend junior board all employees should already receive the initial coaching. In junior board top level managers have a sit with the sub-ordinates and courage them to provide possible suggestions regarding a decision. The sub-ordinates try to give suggestions through brainstorming using knowledge provided in the initial coaching. 5.4 PERFORMANCE MANAGEMENT Before starting a development progam they analyze the employee to what extent they need the development to be fit for the higher position. To analyzed this they go through SGA (Skill Gap analysis). On the basis of the SGA every employee has to have a yearly 40 hours development process. It depends on the current skill of those employees. Eevery employee of IKEA goes through a career succession planning. Through this career succession planning employees develops their skills to deserve the vacant higher position. 5.4.1 PERFORMANCE STANDARDS AND EXPECTATIONS There are eight conditions to consider when setting standards of performance. Standard of performance are based on the job and not on the person in job. Standards of performance are achievable Standards of performance are understood by employee perfoming job Standards of performance are agree upon both employee and supervisor. Standards of performance are specific and and measureable as possible Standards of performance are time oriented. Standards of performance are always in writing Standards of performance allow for revision and change.

Have the ambition to do a good job, a desire to take on responsibility, and accept the consequences that entails. Do your best on the basis of your abilities and experience. Are service-oriented with the customers best interests at heart. Remain open to improvements, with a will to continually develop. Challenge established methods when you have a better suggestion for how to do something. Are always open and straightforward and act without ego or prestige in your cooperation with others. Are cost-conscious and know that everything has a price tag.

5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN Employee --------------------------Date Hired Job Title . Salary Date of Review.. 1. Performance Evaluation Interaction with Co-workers ---------------------------------- ----------------------------------------------------------------------- ----------------------------------------2. Performance Evaluation Professional attributes ---------------------------------- ----------------------------------------------------------------------- ------------------------------------------------------------------------- ----------------------------------------3. Performance Evaluation Quality of work

---------------------------------- ----------------------------------------------------------------------- -----------------------------------------

--------------------------------- ----------------------------------------4. Performance Evaluation Employee obligations ---------------------------------- ----------------------------------------------------------------------- ----------------------------------------5. Performance Evaluation Additional comments ---------------------------------- ----------------------------------------------------------------------- ----------------------------------------Date of next evaluation .. Employee Interviewer

5.5 EMPLOYEE COMPENSATION AND BENEFITS IKEA provides full medical/dental insurance to employees who work 20 hours or more per week. Other benefits include vacation time, paid maternity/paternity leave, paid time off for child adoption, tuition assistance, retirement contribution matches and discounts on IKEA merchandise. For co-workers with a years service, IKEA pay the first six weeks of maternity and adoption leave in full; for co-workers with two years service the next twelve weeks are at half pay. Paternity leave of two weeks is also on full pay with a years service. For staff with one years service IKEA offer a return to work on 50% of contractual hours for 12 weeks, but receive pay for full contractual hours. Alternatively, co-workers may have an additional six weeks half pay whilst on maternity leave and then return to work for six weeks on half of their

contractual hours. Some people prefer longer off with the baby, whilst others prefer to come back and work half their hours to gradually ease them back to work. Other family-friendly benefits offered are: Paid leave for a childs first day at school; Help to cover childcare costs, by paying for the first months childcare up front (an interest free loan) Childcare vouchers IKEA vouchers when a co-worker has a baby (service criteria) Childcare vouchers were introduced about four years ago and a few co-workers have taken them up. Due to Working Tax implications, the uptake of vouchers has not been as high as might be expected. The interest free loan of childcare fees, for the first month, helps people to afford childcare when they first return to work. 5.5.1 TYPES OF COMPENSATION AND BENEFITS Different types of compensations include Base pay Commissions Overtime Bonuses, profit sharing, merit pay Travel/Meal/Housing allowance Benefits including: dental, medical, vacations, leaves, retirement, taxes. Few of above are discussed as below: LEAVE Personal Leave Personal leave can be taken as either Sick Leave (in accordance with Clause 6.1.1) or Career Leave (in accordance with Clause 6.1.2) up to the maximum of 10 days (or pro rata for part time coworkers) per anniversary year. a) Personal Leave is payable at the Permanent Coworker's relevant rate of pay, except when Personal Leave is taken on a Public Holiday where the Ordinary Rate of Pay will apply and not the Public Holiday rate. b) Casual coworkers are not entitled to paid Personal Leave. However, they are entitled to decline to work on up to 2 occasions per anniversary year for the purposes of personal illness or to care for an ill member of their Immediate Family.

c) Any unused Personal Leave will accumulate from year to year. d) Coworkers are not entitled to be paid for their accumulated Personal Leave on termination. Sick Leave a) IKEA is committed to ensuring that Sick Leave is only utilized in cases of genuine need. The misuse of Sick Leave will lead to performance management of the coworker. b) Sick Leave only applies to Permanent Coworkers. c) If a Permanent Coworker is required to access their Sick Leave, all reasonable effort must be made by the coworker to contact their immediate manager or the person in charge of the location at the time, at least 1 hour prior to their roistered commencing time. At this point of contact, the coworker will also be required to advise management of the nature of their absence and the estimated duration of the absence. d) In order to qualify for paid Sick Leave, IKEA requires the production of a medical certificate from a medical practitioner dated at the time of absence or a statutory declaration signed by a Justice of the Peace, specifying the nature of the absence for: i. ii. iii. iv. v. vi. Any absences in excess of one day; Absences on a single day if they occur on either side of a Non-Working Day or Public Holiday; Where IKEA management believes that the coworker has had an excessive amount of single day absences or a pattern of absence has been identified; Where IKEA management has previously performance managed a coworker in relation to an excessive amount of sick Leave and has requested in writing that all future claims for sick leave be supported by a medical certificate. Where a coworker is absent on Sick Leave for a prolonged period of time, IKEA may request the coworker to provide further medical evidence to assist in the management of their absence. Career Leave Permanent Coworkers are entitled to use any portion of an existing personal leave entitlement for the purposes of: a) Providing care and support for a member of the coworker's immediate Family who is ill.

b) Attending to critical and unforeseen emergencies relating to the coworker's Immediate Family or member of the coworker's household, where alternate arrangements for time off cannot be made. c) Permanent Coworkers are also entitled to up to 2 days unpaid career leave per anniversary year, providing all paid leave entitlements have been used. d) In addition to the specified Career Leave, a Permanent Coworker will be entitled to use any accrued statutory leave entitlement (such as Annual Leave or Long Service Leave) for Career Leave purposes. e) Apart from unforeseen emergencies, Career Leave will only be available upon a minimum of 48 hours' notice being given by the coworker to their manager. f) A coworker must provide to IKEA a certificate from a medical practitioner (dated at the time of the absence) certifying that the coworker was required to support or care for the family, or a statutory declaration signed by a Justice of the Peace setting out the reason for the need to take Career Leave. g) IKEA location management must approve all Career Leave applications prior to the taking of such leave, with the exception of unforeseen emergencies. h) For events that can be planned for in advance, coworkers shall request roster changes or utilize available Annual Leave entitlements or time off in lieu, instead of taking Careers Leave. i) Careers leave is payable at Ordinary Rates of Pay, exclusive of penalties, allowances and overtime. Annual Leave a) All Permanent Coworkers shall be entitled to 4 weeks' paid Annual Leave per anniversary year in accordance with the provisions of Schedule 1 A of the Workplace Relations Act. b) No penalty or loading will be added during periods of Annual Leave with the exception of Clause 5.6 f). c) Part Time Coworkers shall be entitled to Annual Leave on a pro rata basis based on their Contracted Hours of work. d) Permanent Coworkers must apply for Annual Leave in writing by completing an Application for Leave Form and on giving a minimum of 4 weeks' notice. Annual leave is subject to the approval by management. e) IKEA must provide a minimum of 4 weeks' notice if it is requesting a Permanent Coworker to take Annual Leave that has become due or has accrued.

f) Annual Leave is to be taken within a period not exceeding 12 months from the date it becomes due. As a result of the peak business demands placed upon IKEA during certain periods of the year, no Annual Leave is available to be taken by coworkers during the weeks posted by IKEA at the beginning of each calendar year (known as "block out" periods), unless IKEA approves such an Annual Leave request in writing. Such Annual Leave "block out" periods may be different from department to department and subject to change from year to year. g) In cases of pressing and urgent circumstances a Permanent Coworker may request to have some of their Annual Leave cashed out on the following conditions: i. ii. iii. iv. v. Compassionate Leave a) Upon the death of an Immediate Family member, or a family member of the coworker's household, or for the purposes of spending time with a member of the co worker's Immediate Family who is suffering from a terminal illness, a Permanent Coworker shall be entitled to paid Compassionate Leave for up to a maximum of 3 days. b) Where a death of an Immediate Family member occurs interstate or overseas, a Permanent Coworker will be entitled to 5 days paid Compassionate Leave for the purpose of attending the funeral. c) Where a Permanent Coworker is distressed upon the death of a friend or family member not listed in Clause 1.4(j), the situation should be judged on an individual basis by the location Manager. d) Proof of the Compassionate Leave entitlement must be supplied to IKEA management on request. Not more than 2 weeks of Annual Leave entitlement will be cased out at any one time; Not more than 2 weeks of Annual Leave can be cashed out in any particular anniversary year. Coworkers must retain a minimum Annual Leave balance of 4 weeks at the time any payment is made; Once a coworker is cased out, that proportion of Annual Leave will not be available for use as Annual Leave; The granting of Annual Leave cashing out is at the complete discretion of IKEA.

e) IKEA may consider extending the amount of Compassionate Leave in exceptional circumstances but only on a case-by-case basis. Long Service Leave a) All coworkers covered by this Agreement shall be entitled to Long Service Leave on full pay, subject to and in accordance with the provisions of the Long Service Leave Act 1955 (New South Wales). b) This Act will be made accessible to coworkers upon request. Parental Leave a) Unpaid Parental Leave applies to Permanent Coworkers and eligible Casual Coworkers after 12 months' Continuous Employment. b) An eligible Casual Coworker referred to in 6.6 a) shall mean a Casual Coworker who has been employed by IKEA for at least one year and has been roistered to work on a regular and systematic basis each fortnight. c) Parental Leave includes: i. ii. iii. Maternity Leave that is, leave taken by the female coworker who is pregnant or the parent of the child. Paternity Leave that is, leave taken by the male coworker who is the parent of the child. Adoption Leave that is, leave taken by a male or female coworker on the adoption of a child. d) Coworkers deemed eligible for unpaid Parental Leave are entitled to a period of up to 52 weeks. e) An additional period of up to 52 weeks unpaid Parental Leave may be requested on the basis that the eligible coworker confirms the arrangements for this additional leave no later than 4 weeks before the commencement of the additional leave. f) The maximum period of Parental Leave is 104 weeks, inclusive of Paid Parental Leave, Annual Leave, Long Service Leave and Time in Lieu entitlements. g) Parental Leave is available to one parent at a time in a single unbroken period. h) Permanent Coworkers with more than 2 years' Continuous Employment will be entitled to payment for Parental Leave on the following basis: If the coworker is granted Parental Leave as a primary caregiver, upon the commencement of this Parental Leave, the coworker will be entitled to half their Ordinary Rate of Pay for the first 12 weeks of the Parental Leave. This leave must be commenced within 4 weeks of the birth or adoption of the child.

i.

If a coworker is not taking Parental Leave as a primary caregiver but is recognized under the Workplace Relations Act as a person entitled to Parental Leave as a primary caregiver, 2 weeks' leave on full pay will be provided to the coworker. This leave must be taken within 4 weeks of the birth or adoption of the child.

ii.

A coworker is not entitled to both payments in one instance of Parental Leave, nor is an IKEA couple entitled to the same payment in one instance of Parental Leave. a. A coworker must provide notice to IKEA in advance of the expected date of commencement of Maternity or Paternity Leave as follows: b. At least 10 weeks prior advise IKEA of the expected date of birth and include a medical certificate stating that the coworker (or, in the case of Paternity Leave, that their spouse or de facto spouse) is pregnant. c. At least 4 weeks prior advise IKEA of the date on which the coworker proposes to commence Parental Leave and the period of leave to be taken. d. In the case of Adoption Leave, a coworker will notify IKEA at least 10 weeks in advance of the commencement date of Adoption Leave and the period of leave to be taken. Included with the application for Adoption Leave will be confirmation from the appropriate government authority of the placement. e. A coworker, who originally applied for less than 104 weeks' Parental Leave, may extend their leave up to 104 weeks (inclusive of Paid Parental Leave, Annual Leave, Long Service Leave and Time in Lieu entitlements) by providing IKEA 4 weeks' notice. f. A coworker may shorten their period of Parental Leave by Mutual Agreement with IKEA and by giving not less than 4 weeks' notice. g. A coworker must notify IKEA of their intention to return to work after a period of Parental Leave at least 4 weeks prior to the expiration of the leave. h. Periods of unpaid Parental Leave do not count as service for the purpose of Continuous Employment. i. IKEA will also allow coworkers to access unpaid Pre-natal Leave during the pregnancy for a maximum of 38 hours (pro-rata for Part Time Coworkers).

Jury Service a) A Permanent Coworker shall notify IKEA as soon as possible of the date/s upon which they are required to attend for Jury Service and shall be allowed such leave. b) A Permanent Coworker will not suffer any loss of income in respect of the ordinary time they would have worked had they not been on Jury Service.

c) During this period of Jury Service, the Permanent Coworker will be paid as normal, in accordance with Clause 4.2, and return the Jury Service Fees paid by the Government to IKEA. d) A Permanent Coworker required attending for Jury Service during a period of Annual Leave will, on producing satisfactory evidence of attendance, be credited with Annual Leave for the period for which Jury Service was attended. e) To receive payment of wages for this period of absence on Jury Service, the Permanent Coworker shall provide to IKEA: i. Proof of their requirement to attend; ii. Proof of actual attendance iii. Monies received for Jury Service by the Government, made payable to IKEA Leave of Absence a) A Permanent Coworker with more than one year Continuous Employment, may take a period of authorized unpaid Leave of Absence provided: i. the maximum period of absence does not exceed 3 months; ii. all outstanding Annual Leave, Long Service Leave and Time In Lieu entitlements are taken prior to Leave of Absence. b) Applications for Leave of Absence must be approved by the location Manager and will only be available under the following circumstances: i. For travel and study linked to personal development. ii. To care for a sick or terminally ill member of the coworker's Immediate Family. c) Unpaid Leave of Absence shall not break Continuous Employment. However, all entitlements to Annual Leave, Personal Leave and Long Service Leave are frozen from the date of commencement of Leave of Absence until the date of return from such leave. d) Leave of Absence will typically not be granted during Annual Leave "block out" periods, unless approved by the location Manager. 6.9 Volunteer Emergency Services Leave e) In line with IKEA's business values of supporting its local community, this provision is to allow coworkers access to paid leave for volunteer service work in times of emergency, crisis or disaster in the local community. f) Only recognized volunteer emergency services are to apply under this Clause.

g) Coworkers who are required to attend to such emergency, crisis or disaster are entitled to 2 days' paid leave per occasion, based on their Ordinary Rate of pay, up to a maximum of 6 days per anniversary year. h) IKEA may consider extending the amount of Volunteer Emergency Services Leave in exceptional circumstances but only on a case-by-case basis. i) To access paid leave, a coworker will be required to make available written proof of their involvement. j) Volunteer Emergency Services Leave is not cumulative from year to year. Payment of Wages a) Wages shall be paid fortnightly by way of Electronic Funds Transfer. b) For the purposes of the payment of wages, only hours rostered, worked and authorized by the manager will be paid. No unauthorized roster changes or overtime will be paid. c) The transfer of funds will be made within 4 days of the end of the pay period. d) Termination payments will be made by way of Electronic Funds Transfer within 4 days of the end of the termination pay period, providing all IKEA clothing and property has been returned and accounted for. Refer to Clause 2.6 e) regarding IKEA Uniforms and Property. e) The pay week within the fortnight shall run from Monday to Sunday. f) IKEA has implemented a Time and Attendance System to collect daily punches, which are checked, authorised and downloaded into the payroll system for the purpose of efficient and accurate payment of wages. All coworkers are required to sign on this system at the commencement of their rostered shift and sign off immediately upon completion of their rostered shift. g) Payment of wages during periods of Annual Leave will be made as part of the normal Fortnightly Cycle payment and not in advance. 7.3 Probationary Period a) All Permanent Coworkers shall be advised in writing at the time of their employment that they are subject to a Probationary Period for the first 6 months of their employment. b) During this Probationary Period, IKEA or the coworker on probation may terminate the employment contract at any time, with 1 week's notice.

c) A member of IKEA management will conduct a coworker review prior to the end of the Probationary Period. 7.4 Temporary Employment Contract a) Where operational demands require extra staffing for a limited period of time, IKEA may employ Permanent Coworkers on a Temporary Contract. b) IKEA may also employ existing Casual Coworkers under a Temporary Contract either on a Full Time or Part Time basis, providing there is Mutual Agreement for these arrangements to occur. c) Prior to the commencement of employment on a Temporary Employment Contract, the coworker shall be advised in writing of: i. ii. iii. iv. d) The exact date of commencement and completion of the Temporary Contract; Whether they are employed on a Full Time or Part Time basis for the duration of the Temporary Contract; Their weekly or hourly rate of pay; and Any other specific terms and conditions agreed upon. It is important for all parties to be aware that a Temporary Contract

must not run beyond its completion date. If this seems a possibility a further Temporary Contract needs to be agreed in writing and countersigned by the coworker concerned, prior to the completion of the Temporary Contract in operation

5.6 ORGANIZATIONAL CAREER MANAGEMENT 5.6.1 EMPLOYEE JOB CHANGES If a co-worker wants to change their hours, they speak to their supervisor or manager, saying what they would like to change and the reasons why. This is then discussed with the manpower team and if there is no problem with this then their arrangements would be changed. 5.7 JOB CHANGES WITHIN THE ORGANIZATION

Job changes in classified service must be made in accordance with the company acts. Any person appointed or promoted as certified as qualified in accordance with and subject to company rules and regulations. Job also changes with organization because when employee achieved a chance of promotion in any other organization he will leave the current organization but their are some rules that he can follow. 5.7.1 PROMOTION The promotion is based on three parameters i.e 1. Qualification 2. Length of service 3. standard of service Separate marks were prescribed for each of three parameters and after obtaining the minimum qualifying marks varying from cadre to cadre, one could be promoted to next higher position. 5.7.2 TRANSFER Transfers on requests, however used to take place only on compassionate and medical grounds while another reason was that these were for filling up the vacant positions sometimes. Employees are considered as candidates for transfer in the following order or priority. a. Eligible employees in same department as the job opening. b. Eligible employees in other department s who have requested a transfer c. Eligible employees being considered for lay-off due to a reduction in force. Employees desiring a transfer will submit a written a request for transfer to his/her department head. The employee should identify specific vacancy in which they are interested. The department head will forward the request to Department of Human Resources for recommended action. The Department of HR will determine whether desired job or a suitable job opening exists. If a suitable job is available, the Department of HR will arrange for the employees application to be reviewed by the department in which the opening exists. Employees will be allowed time off with pay for job interviews related to transfers.

The decision to affect the transfer will be made by the head of department in which the job opening occurs.

5.7.3 DEMOTION An employee of IKEA may be demoted for violating the rules of the company by a behavior such as excessive lateness, misconduct or negligence. In some cases, though, an employee may be demoted as an alternative to being laid off, if the IKEA is facing a financial crisis. Notice: If an appointing authority of IKEA intends to involuntarily demote an employee, the appointing authority shall give prior written notice for specific reasons for the demotion to the employee. Conditions: An appointing authority may demote and employee under any of the following circumstances: a. The employee is not performing satisfactorily. b. The employees position is reclassified downward. c. The demotion is request by the employee and approved by the appointing authority. d. The position occupied be the employee is abolished. e. The employee is displaced by return to duty of another employee entitled to the position. f. The employee is displaced by another employee with more seniority during reduction in force. g. The employee does not receive a satisfactory probationary service rating. 5.7.4 SEPRATIONS An employees separation occurs when an employee ceases to be a member of IKEA. The rate of employee separation in IKEA is a measure of the rat at which employee leave the IKEA.

5.7.4.1 LAYOFF

When there is surplus of employees in IKEA then layoff occurs. Layoff is temporary suspension or permanent termination of employment of an employee or a group of employee for business reasons, such as the decisions that certain positions are no longer necessary or a business slow down or interruption in work. Ikea may lay off employees as part of a restructuring of its stores Reorganization" would makes outlets more "customer focused" and reduce layers of management. 5.7.4.2 TERMINATION Ikea works proactively to prevent corroption and illegal activities and disassociates itself in any form of corroption, weather direct or indirect. IKEA has corruption policy, rules of corruption prevention and an investigation policy that clearly states what coworker should do if they suspect corruption, fraud or illegal behaviour. It may result in termination of employee. Employment with IKEA may be terminated for a variety of reasons The supervisor Gives the employee the required notice in writing Notified the General Manager of the termination of the employee and reason of termination. It is ensured that the termination shall not be harsh, unjust or unreasonable. Termination form is completed and signed. The employee signature is not required. Completed form is forwarded to Assistant Finance Officer for processing. Completed form is placed on the employees personnel file. Employee gives the supervisor the required notice in writing Resignation by the employee Employee illness and inability to work The conclusion of the contract for which the employee was employee Dismissal of the employee Other reasons

Procedure adopted for terminatio is as under:

In case of termination of job by employee

The supervisor accepts and acknowledge the resignation It is notified to General Manager of the impending termination of the employee and reason for termination Termination form is completed and signed. The employee signature is no required. Completed form is forwarded to Assistant Finance Officer for processing. Completed form is placed on the employees personnel file.

5.7.4.3 RESGINATION Workers have to submit their resignation one month prior to leaving the job (Annex 2).

5.7.4.4 RETIREMENT Normal retirement age is 65 in IKEA. One may with the consent of the Company, retire at any time after age 50. A life assurance lump sum equal to 3 times of Contractual Salary (basic salary) is payable on the event of death during service. 6) LABOR MANAGEMENT RELATION At IKEA everyone is treated as an individual, because we know everyone is not the same. IKEA co-workers are of different ages, genders, ethnic backgrounds and come from varying life situations. This diversity is where we draw our strength from. IKEA believe that when working life and home life are in harmony, we are all happier and more productive. IKEA located a contact centre in the Dearne Valley, Rotherham, in 2001. It is one of six call centers in the area. As a business, IKEA aims to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. The world is changing and peoples needs for flexibility and individuality are increasing. IKEA create a better everyday life for their co-workers by ensuring work and home life are in harmony. They are committed to treating people as individuals and to eliminating barriers. Work life balance is considered to be important for all co-workers regardless of their role. All staff are known as co-workers and IKEA aims to make the contact centre a great place to work. Giving people the opportunity to grow and develop is an important part of this. The

contact centre has a flat organization structure and this provides lots of different opportunities for their co-workers. Once a year IKEA undertakes an in-house opinion survey called voice. The voice survey identifies areas that could be improved from the perspective of the coworker, giving them the opportunity to say what they feel. The company actively works on the results and if there is an aspect where they didnt score so well, they will look at what can be done to improve this. In addition to voice, there is an elected consultative Unit Committee which meets monthly. The committee discusses matters of interest, ideas and concerns that co-workers have raised with them with the unit manager. IKEA currently employ 160 coworkers at this site, 70% of whom are female. Half of the co-workers work full time. 85% are customer service advisers and the rest are supervisors, team managers, specialists and human resources. They aim for a maximum of 13 in a team. 24% of the co-workers are aged 16 to 20 and a large percentage of these are students working part time to support their studies. 7) SWOT Analysis Of IKEA STRENGTH Skilled personnel High pay scale IKEA has skilled personnel so that their operations are performed efficiently. IKEA claims that they have the highest pay scale among the all home furnishing companies. So that they get the right person for the right position. Corporate Culture Their corporate culture is so well developed that all the employees in IKEA have a friendly environment in their workplace. WEAKNESSES Development process is not well organized Some lacks of training program Some lacks in recruiting and selection process

OPPORTUNITIES Huge Candidates As the unemployment rate is high in world, IKEA get many more candidates when they advertise to recruit people.

THREATS Political instability In some countries political parties call strikes and other activities that hamper the HR operations of IKEA. HR Departments of other Business Companies IKEA always face competition with other companies HR departments because every company always tries to improve their HR operations according to their necessity. 8) WEAKNESSES OF THE ORGANIZATION Thought IKEA follows most of the rules and regulations of standard training program but still they have some problems with their existing training and development programs. Some of the problems are listed below: They dont have action-learning program. As a result employees dont get scope to increase their project skill and to know about the problems of another department. They dont concentrate on off the job training. We know, off the job training is sometimes more important to know about the job. Review system is not strong enough. As a result it becomes quite difficult to understand how effective the training was. Lack of motivation in the training side. IKEA dont motivate that much while employee took training. They took training just like they are doing their regular jobs. Less scope of developing for the senior employees. Senior employee especially the aged employees dont have sufficient idea about the changing environment of technology. 9) RECOMMENDATIONS In order to solve the problems with the existing training and development system, we recommend the following suggestions. The ways of implementing those recommendations is discussed. a. From the problem part, we become able to know that IKEA dont follow action learning training an doff the job training. We would not recommend to implement action learning training. But IKEA should provide off the job training. Because, for some sectors or jobs off the job training is more valuable than on the job training. In order to implement off the job training in the company they can follow those steps. Select the sectors and employees for this training

At time horizon for the training. It will be selected by the discussion with the employees. Then the trainer would be selected. They dont need to hire new trainer for this, they can provide off the job training with their existing trainer. Sufficient training materials should be provided to the employees. The progress of the trainee should be checked.

b. They should motivate employee to give more concentration on their training. The reason is that motivations dont cost enough money, but it helps to the employees to learn rapidly. If they rare motivated and learn the job then not only they will be benefited, at the same time they will serve the company with their best effort. In order to motivate them, IKEA can provide them various incentives, like informing them about the benefit of the training, how it will help them, etc. C. Senior employees should also be developed always. We already mentioned that in IKEA senior employees do not get enough facilities and time to develop themselves. As a result they always have lack of idea about the technological change. In order to provide training for the senior employees IKEA may need to provide different sessions like action learning, case study method, management games. So, it may cost IKEA. But in long run, they will be benefited. 10) CONCLUSIONS IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, and bathroom and kitchen items in their retail stores around the world. The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutchregistered foundation controlled by the Kamprad family. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county (Agunnaryd, in Smland, South Sweden). The motto of IKEA is to create a better everyday life for the many people by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

To run the organization operation properly and to achieve the organizations goals, the organization needs qualified and right employees. HR Helps to find the right person for the right job. This is the major work of Human Resource Division. Employee recruiting, selection, training, management development, and employee compensation all these things have done under HR division. To achieve their mission they provide effective training program, design attractive compensation package, provide performance appraisal. These entire things are done for finding the appropriate employee for the IKEA how can assist the organization to accomplish its goal Following are duties and responsibilities of HR division of IKEA: To perform job analysis To get engaged with recruiting and conduct initial screening To design the orientation, training and development materials. To help in designing organization development activities. To work with employees compensation and benefit To provide sufficient information in order to complete the processing of recruitment and selection. Duties with Administration sector under IKEA HR Division o Transportation Management o Protocol o Health and safety of the employee. Main objectives of HR in IKEA are : Providing the right person for the right job. Job satisfaction Career planning and development Reduce the employee turnover by recruiting and selecting the right person.

. From the problem part, we become able to know that IKEA dont follow action learning training an doff the job training. We would not recommend to implement action learning training. But IKEA should provide off the job training. Because,

for some sectors or jobs off the job training is more valuable than on the job training. In order to implement off the job training in the company they can follow those steps. Select the sectors and employees for this training At time horizon for the training. It will be selected by the discussion with the employees. Then the trainer would be selected. They dont need to hire new trainer for this, they can provide off the job training with their existing trainer. Sufficient training materials should be provided to the employees. The progress of the trainee should be checked.

b. They should motivate employee to give more concentration on their training. The reason is that motivations dont cost enough money, but it helps to the employees to learn rapidly. If they rare motivated and learn the job then not only they will be benefited, at the same time they will serve the company with their best effort. In order to motivate them, IKEA can provide them various incentives, like informing them about the benefit of the training, how it will help them, etc. C. Senior employees should also be developed always. We already mentioned that in IKEA senior employees do not get enough facilities and time to develop themselves. As a result they always have lack of idea about the technological change. In order to provide training for the senior employees IKEA may need to provide different sessions like action learning, case study method, management games. So, it may cost IKEA. But in long run, they will be benefited. 11) REFERENCES & SOURCES USED