Post on 23-Nov-2014
NISHAT GROUP
Nishat is playing a significant role in the private sector by adding value to cotton and the
cotton based economy, Nishat Group ranks among the top five business houses in
Pakistan in terms of sales and assts
Nishat has grown from a cotton export house into the premier business group of
Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement,
Banking and Power Generation. Today, Nishat is considered to be at par with
multinationals operating locally in terms of its quality products and management skills.
•Annual turnover 17 billion Rupees
•14 Billion from textiles
•Earn foreign exchange US $ 236 million
•Taxes and levi of 2,080 million Rupees annually
NISHAT MILLS LIMITED
Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern,
which was converted into private Limited company in 1959. In 1961, the company went
public and was listed on the Karachi Stock Exchange.
Flagship Company established in 1951
•Most Modern, Biggest Composite unit of Pakistan
•Professional and Client Oriented Marketing
•Green Company
•9000 Employees
•ISO 9001 and IKO-TEX100 Certified
•SA 8000 Certification currently in process.
NML started out as a weaving unit with 500 semi-automatic looms. Later on 10,000
spindles were added, laying the foundation of nation's biggest textile composite project.
NML today, has 177,000 spindles, 284 Sulzer shuttle-less looms and 244 TSUDAKOMA
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air jet looms. The company's production facilities comprise of spinning weaving,
processing, stitching and power generation.
All together NML has 17 Manufacturing units, each specializing in a specific product
rang. The spinning Division produces 120 Tons of yarn per day in a product range from
Ne 3 to Ne 120 using different cotton sources like Supima, Egyptian Giza and Australian.
Mission Statement
"To provide quality products to customers and explore new markets
to promote/expand sales of the company through good governance
and foster a sound and dynamic team, so as to achieve optimum
prices of products of the company for sustainable and equitable
growth and prosperity of the company."
Vision Statement
"To transform the company into a modern and dynamic yarn, cloth
and processed cloth and finished product manufacturing company
with highly professionals and fully equipped to play a meaningful
role on sustainable basis in the economy of Pakistan."
"To Transform the company into a modern and dynamic power
generating company with highly professionals and fully equipped to
play a meaningful role on sustainable basis in the economy of
Pakistan."
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Organizational Structure
Nishat Sectors
Textile-1Cement-2Banking-3
Power Generation-4
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NISHAT TEXTILES
Processing
An ISO 9001 certified unit, which is one of the largest and
most modern processing facilities of Pakistan. With an
array of custom-made machinery, it has the capacity to
produce 3 million meters of fabric /month. To ensure that
our customers get the very best we use more than 75% dyes
and chemicals that are of European origin. To maintain
quality and international standards, an on-line Quality
department has been setup. The QC department has the
backing of a fully equipped Laboratory, which scrutinizes
the fabric process flow at all levels.
Spinning
NML spinning is operationally organized into eight
spinning units, each with a distinctive product range and
capacity to keep a check on the quality standards. Every
cone undergoes inspection before packing to ensure that
our buyer gets only the best out of the lot.
Spinning production capacity for both Cotton and Blended
Yarns in 130 Tons / Day
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WeavingOperationally divided into:
NML Faisalabad:
Machinery: 188 Sulzer Ruti Looms Capacity: Approximate 2.1 Million Meters per
Month.
This Unit has been producing top quality fabrics for export as well as for the
consumption of our own processing unit. Awarded with ISO-9002 Certification, the
facility is highly regarded for the production standards and quality controls.
NML Sheikhupura:
NML Sheikhupura is one of the most advanced units in the country equipped with state-
of-the-art machinery and it is also awarded with ISO 9002 Certification. Future
Programs for the Unit include the purchase of Jacquard Looms, which will add to the
variety of product range that Nishat is offering to its customers.
Stitching
With an array of 500 modern new generation machines, the
stitching department has an average capacity to process up
to 1.3 million meters of fabric per month. The product line
is customized to manufacture products of various styles and
sizes according to the requirements of our customers,
wholesalers, retailers and contract textile business.
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Introduction“The policies and practices involved in carrying out the “People”
or Human Resource aspects of a management position, including
recruiting, screening, training, rewarding, and appraising"
HUMAN RESOURCE department exist to help people and organizations reach their
goals. Along the way, they face many challenges arising from the demands of the
employees, the organization, and society. The domestic and international environments
are particularly turbulent because of the growing diversity of the workforce and the
globalization of businesses. Challenges also result from ever changing laws, especially
laws that address the need for equal employment opportunity. Within these constraints,
the human resource department must contribute to the organization's "bottom line" in
ways that are
both ethical and socially responsible.
Purpose
The purpose of human resource management is to improve the productive contribution of
people to the organization in ways that are strategically, ethically, and socially
responsible. This purpose guides the study and practice of HR management, which is also
commonly called personnel management. The study of HR management describes the
HR-related efforts of operating managers and shows how personnel professionals
contribute to those efforts.
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Objectives of HRM
Managers and HR departments achieve their purpose by meeting objectives. Objectives
are benchmarks against which actions are evaluated. Sometimes they are carefully
thought out and expressed in writing. More often objectives are not formally though out
and expressed in writing. More often objectives are not formally stated. Either way, they
guide Hr function in practice .
Organizational Objective
To recognize that HR management exists to contribute to organizational
effectiveness. Even when a formal HR department is created to help managers, the
managers remain responsible for employee performance. The HR department exists to
help managers achieve the objectives of the organization. HR management is not an end
in itself; it is only a means of assisting managers with their human resource issues. For
example, NISHAT HR department found that it could enhance it contribution to the
organization through sophisticated information systems that allowed the department to
cut #35 million a year from its budget. Simply stated, an HR department exists to serve
the rest of the organization.
Functional Objective
To maintain the department's contribution at a level appropriate to the
organization's needs. Resources are wasted when HR management is more or less
sophisticated than the organization demands. Realizing that the HR department had
grown too large, NISHAT changed its ratio of HR staff members to employees from 1
per 53 down to 1 per 75 without violating the company's long-standing "no-layoffs"
policy ."
Role of HR Department
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Human Resource department play a very important role in Nishat Mills LTD. New talent
has a thirst for opportunity and that they are seeking such jobs which enhance there
capabilities and to gain some experience. Due to these facts the HR department
Of Nishat is looking for these kinds of people who want to excel in life and are highly
motivated to achieve some goals. The HR department of Nishat is working day and night
to make this Organization a better organization by hiring people who are self motivated
and there main aim is to make the company more profitable.
JOBS OF HRM
Conducting job analysis
Planning needs and recruiting job candidates
Selecting job candidates
Orienting and training new employees
Appraising performance
HRM in Nishat Mills
• Employing over 9000 people.
• Lowest Employee Turnover.
• Seeks to fulfill the highest practical degree in
administering its welfare and compensation program.
• Apprenticeship and other training schemes at all levels.
• To obtain, manage, develop, motivate and gain the
commitment of company's key resource- the people
who work in and for it.
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• To develop a positive corporate culture to promote
commitment to excellence and quality through out
the company.
• To identify training needs and provide required training
to all categories of employees.
• To make best use of the skills and abilities of all those
employed in the organization.
• To ensure that the company meets its social and legal
responsibilities towards its employees, with particular
regard to the conditions of employment, quality of
working life provided for them and the need to
promote environment, occupational health and safety.
• To ensure industrial peace and harmony through
excellent employee relations to achieve optimum level of
employee, productivity and to contribute towards
company’s aimed quality standards.
Classification of HR Department in NISHAT
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Human ResourceDepartment
Recruitment& Selection
Retention& Motivation
Training & Development
Responsibilities of HR Manager:
Following are the responsibilities of HR Manager in Nishat Mills-:
Recruitment And Selection
Policy Making
Retention Program
Improve Working Relation Of Employees
Competitive Advantages:
Nishat Mills has following competitive advantages over its competitors:
Strong Pay Structure
Retention Program
No Firing
After retirement contract basis job
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Recruitment Process
"The Process of seeking and attracting a pool of qualified applicants
from candidates for job vacancies can be selected."
Recruitment Policy
An organization's recruitment policy provides the framework for recruiting action and
reflects the organization's recruitment objectives. It details the overriding principles to be
followed by management in general and by HR manager in particular.
In Nishat Mills the recruitment process starts when a there is a vacancy and employee is
required. The job requirement is forwarded to the HR Department by the head of the
particular department. Hr department then use two approaches to hire the employee
internal recruitment and external recruitment.
Job Analysis“The procedure for determining the duties and skill
requirements of a job and the kind of person who should be
hired for it”
Nishat is one of the largest textile manufacturers in Pakistan having lots number of
different sectors o/departments working in it. It has many employees who are working on
different posts and are working hard according to their own capacity. Nishat Mills
conducted job analysis in order to hire new employees at every year.
This also enables management to have a better understanding of the jobs and duties being
performed at every level and also helps them in training the people who are freshly
recruited.
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In job analysis, firstly we specified two pillars which are
Job description
Job specification.
Uses of Job Analysis Information
The information collected during the process of job analysis is used by the company in
taking decisions regarding affairs like:
Recruitment & Selection decisions
Compensation
Performance Appraisal
Training
Methods of Collecting Job Analysis Information
There are two methods of collecting Job Analysis Information-: Interviews Observation
1-Internal Recruitment: Job Posting:
Advertising of job openings to current employees via bulletin boards,
newsletters, or personal letters. Filling a job opening from within the firm has the
advantages of stimulating preparation for possible transfer, or promotion and increasing
the general level of morale.
The first and foremost preference of Nishat Mills is to hire the employees through
internal recruitment and giving existing employees more chances to develop their career.
For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the vacant seat.
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Replacement charts :
A visual representation of which employee will replace the existing incumbent in a
designated position when it becomes vacant. In Nishat Mills replacement charts are used
rarely.
2-External Recruitment
To search the employee to fulfill the vacant seat outside the organization is called
external recruitment. HR Department can use various approaches to locate and attract
external candidates like Government agencies, private employment agencies, recruiting
consultants, executive search firms, and educational institutions .
Nishat Mills run the external recruitment campaign itself and do not use the other sources
like agencies and search firms .
Sources used for external job recruitment
Following are the some sources of Job Recruitment in Nishat Mills :
By Newspapers
By Website
By Universities
1-Advertising:
Advertisements are placed in various newspapers. More information about the
company and job specification is included in the ad to present some self-screening. The
advertisement is placed in Jhang and Din.
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Nishat Mills use print media for advertisement because they think most of the people
don’t have knowledge about computer or internet and they can easily find job
advertisement in newspaper.
2-Casual Applications/Unsolicited Applications:
Unsolicited applications are also welcomed in Nishat Mills; they are not neglected
as whole. If candidate have excellent performances throughout his career he can be hired
or these applications can be used for future references.
University Recruitment:
Nishat Mills used the university recruitment only once in LUMS but the result was not
such a good and only one candidate was hired that time.
Equal Employment Opportunity (EEO):
Nishat Mills provides jobs on Equal employment opportunity as they do not make any
discrimination in job description .The Company provide Equal Employment Opportunity
is also mentioned in the job advertisement .
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Selection Process
Following steps are followed in the selection process
1-Reception of Applicant
2-Preliminary Interview
3-Application Form
4-Tests
5-Interview
6-Background
7-Preliminary screening by HR Department
8-Final selection by line managers
9-Medical Examination
10-Placement on the Job
1-Reception of Applicant:
The importance of giving the applicant a favorable impression at this stage cannot be
overemphasized. Rudeness, disinterest or discrimination at reception may cost the
organization a good applicant and foster negative attitudes about the company and its
products.
Nishat Mills give high importance to the first step in selection process which is reception
of applicants. The staff makes such a friendly environment at this stage that does not
make any negative thinking about the company even if the candidate is refused for further
processing. The usually use the indirect way to inform candidate about refusal.
2-Preliminary Interview:
In Nishat Mills preliminary or initial screening interview is used to check quickly on
language skills, qualifications, willingness to do shift work, union membership and the
like.
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In Nishat Mills preliminary interview is typically brief and centered on very specific job
requirement. However has carried out in a courteous, non-discriminatory and efficient
way.
3-Application Form :
After preliminary interview or initial screening Nishat mills receives the applications
from the candidates who have cleared the initial screening step. The application form of
candidate is a valuable tool in screening out unqualified applicants.
The HR Manager considers the qualification, experience and other job related data
provided in application form.
4-Test:
In Nishat mills test is used to access the match between application and the job
requirement.
The most used types of test in Nishat Mills are following
1-Aptitude Test
2-Intelligence Tests
3-Personality Tests
The most frequent method used to take the tests is computer based tests but written tests
are also taken rarely in Nishat Mills.
5 -Interview:
There are three types of interviews take by the Nishat Mills
Initial Interview:
The initial screening interview is taken by the HR Manager. The only purpose of
initial screening interview is to access the language skills, qualifications, willingness to
do shift work.
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Panel Interview:
In Nishat Mills the Panel interview is the next step for the candidates who have
successfully passed the tests. In Nishat Mills panel interview is taken by three managers
1-General Manager
2-HR Manager
3-Head of the Department
Unstructured Interview:
Nishat Mills do not use a predetermined outlines or questions to be asked from
candidate but the take the unstructured interview and interviewer can ask anything which
he thinks is necessary.
Criteria for Selecting Candidate in interview:
Following is the criteria for selecting candidates in Nishat Mills based on:
Communication Skills
Present Personality
Educational Background (etc.)
Skills And Competency
6-Background:
After interview the Nishat Mills HR Department staff checks the backgrounds of the
successful candidates through the references provided by them. The background is
investigated to ensure that candidate have a fair character and is not involve in any
criminal activity.
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7-Preliminary screening by HR Department:
HR Department completes all the works assigned to it and finally do a preliminary
screening. This screening is based on the overall results of the candidates. A list of
successful candidates is made and the maximum no of toppers are screened as per
required by the head of department. The list of selected candidates is than forwarded to
the particular Head of the Department.
8-Final selection by line manager:
The list of selected candidates by HR Manager of Nishat Mills is given to the Head of the
particular department and now Head of the department is the final authority to select the
candidate.
9-Medical Examination:
After the candidates have been selected by the head of department, medical examination
of the selected candidates is taken by Dr. of the Nishat Mills. This is a check to ensure
that employees do not have any contagious disease and to save other employees from this
disease.
10-Placement on the Job:
After passing each and every selection step Nishat Mills the successful candidates are
given the job letter which indicated their job title, work timing, starting date and salary
package .
Successive hurdles approach
The Nishat Mills use the successive hurdle approach in the selection process which
involves the screening out of candidates at each stage of the selection process
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Training and Development
Training
Training is an activity that results in learning .it seems important than to consider what
learning is and what trainers can do to positively influence it. There is considerable
disagreement over which theory best explains how learning occurs.
This is however consensus on the definition of learning and the goals of learning process
Methods of training
The Nishat Mills adopts many different training programs for enhancing the skills of its
employee. In Nishat Mills following methods are used for employee training
On job training
Off the job training
On Job Training:
Making teams of new employees with a few old specialized Employees.
Acquaintance with day to day procedures
Contribution to overall productivity.
Lower cost
Lower Time
Off Job Training
• In-house training ,done at least once a year
• Specialist trainers are hired
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• Provide a proper learning environment to the employees
For employee training and development to be successful, Nishat Mills do following
things:
They provide a well-crafted job description- it is the foundation upon which
employee training and development activities are built
Provide training required by employees to meet the basic competencies for the
job. This is usually the supervisor's responsibility
Develop a good understanding of the knowledge, skills, and abilities that the
organization will need in the future. What are the long-term goals of the
organization and what are the implications of these goals for employee
development? Share this knowledge with staff.
Look for learning opportunities in every-day activity. Was there an incident with
a client that everyone could learn from? Is there a new government report with
implications for the organization?
Explain the employee development process and encourage staff to develop
individual development plans.
Support staff when they identify learning activities that make them an asset to the
organization both now and in the future.
In the development process Nishat aligns the interest and skills with the need of
organization. It means carrier must be managed strategically so the skills demanded by
the organization’s strategic business objectives are understood and a work force with the
matching profile of skills is developed.
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Retention and Motivation
Nishat Mills use retention process in which Nishat Mills wants to satisfy the individual
need of employees and to make the employees work with the organization. The company
use cash and non cash rewards to motivate its employees.
The company uses the following ways to retain the employ
Promotion
Promotion is direct shift only to the next level from the current grade, the
Employee’s performance is evaluated and if his performance is above average he is given
promotion.
In Nishat Two things are counted to give promotion
1-Experience
2-Performance
Increments
The company decides at the end of the financial year, according to its financial
condition, whether increments should be given or not. Once the increment is decided,
it is effective from January of each calendar year .
Free transport
Nishat Mills provide free transport to local employee and also to their children for
school.
Medical facility
Nishat Mills provide free medical facility to workers depending upon the
position/rank of the employee.
Free housing
They give the facility of free accommodation for all level of employees, again the
facility is provided according to the position.
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Performance Appraisal
“Performance appraisal concerned with determining how well
employees are doing, communicating that information to employees
and establishing a plan for performance improvement
The jobs are evaluated on yearly basis under superior evaluation method. The competent
employees are rewarded in shape of promotions, bonus, increments and annual holidays.
The results of an appraisal can be used to identify areas for further development of the
employee.
The method used to evaluate employee’s performance consists of 20-25 questions about
the behavior of the employee, and then on the basis of these answers personality of the
employee is judged.
There are two possible sources of errors of performance evaluation in Nishat
Halo EffectRecency effect
Retrenchment
The Nishat Mills always used to expand its business since its beginning and it has
never been into such a downsizing of its business which involves retrenchment of its
existing employees. Such special features differentiate Nishat Mills from its
competitors.
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Any “honesty test” you conduct or not?
Do you take written or computer based test?
How much importance you give to personality, IQ level and special ability?
Any medical examination of selected employees you conduct?
Who is the final authority to select an employee?
Do you use “performance appraisal” to evaluate performance of your employees?
Do you communicate performance appraisal directly to related employee?
How you motivate your employees?
What type of working environment you provide to your employees?
What is the preferred basis for promotion? (Experience, Age, Performance)
In which circumstances you prefer cash or non cash rewards for employees?
Any additional benefit such as pick & drop or medical facility you give?
Do you give any increment on yearly basis?
What are the rules and regulations for retirement?
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Questions asked from HR ManagerWhat is your recruitment policy?
What kind of source for advertisement you prefer?
Do you prefer internal or external recruitment for executive level job positions?
Do you use “job posting” why?
Do you advertise for job after vacancy or wait for a no of vacant positions and than hire the whole lot?
Do you outsource your recruitment process?
If yes, which company does u prefer?
Do you give jobs on EEO basis or not?
If yes, what type of policy you have?
Do you apply University recruitment? If yes, what result you face?
Which type of interview you conduct?
What is the percentage or importance of test and interview in your selection process?
What type of environment you provide to interview?
After interview which step you consider the most important to take?
What is the union role in your organization?Do you prefer old employees to retain or prefer employees on the bad of performance?
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Any “honesty test” you conduct or not?
Do you take written or computer based test?
How much importance you give to personality, IQ level and special ability?
Any medical examination of selected employees you conduct?
Who is the final authority to select an employee?
Do you use “performance appraisal” to evaluate performance of your employees?
Do you communicate performance appraisal directly to related employee?
How you motivate your employees?
What type of working environment you provide to your employees?
What is the preferred basis for promotion? (Experience, Age, Performance)
In which circumstances you prefer cash or non cash rewards for employees?
Any additional benefit such as pick & drop or medical facility you give?
Do you give any increment on yearly basis?
What are the rules and regulations for retirement?
What is the union role in your organization?
Do you prefer old employees to retain or prefer employees on the bad of performance?
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stions Asked from employeeseQu
Do you think that companies apply EEO? Yes No
Were you satisfied with the company advertisement? Yes No
Were the best candidates attracted through advertisement? Yes No
Was initial screening through based on merit? Yes No
Was you selected by this organization directly or selected by another organization?
Directly By other organization
How many interviewers were present during interview? 1 2
More than 2
Do you think that your appearance has any impact on selection? Yes No
What type of working environment given to you by employer? Good Average
Bad
Any Motivation by employer? By Promotion By Bonus
By Increment
*This information is obtained only for academic purpose and will be kept confidential.
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What is the preferred factor for promotion? Age Experience
Performance
Performance Appraisal is communicated with employees? Yes No
The way in which performance appraisal is communicated ? Direct discussion Indirect
Any old age benefit given by organization? Yes No
Any unfair promotion in your organization? Yes No
Are you satisfied with your pay amount? Yes No
Are you satisfied with the facilities providing by organizations? (Medical, Allowances etc.)
Yes No
The position at which you are; you are promoted to this position? Internally Externally
Any predetermined rules and regulations for retirement were communicated with you?
Yes No
Are you informed about retirement before time? Yes No
Emloyees Interview Result These Questions has been asked from 10 different
employeesDo you think that companies apply EEO?
Yes ( 10 ) No (0)
Were you satisfied with the company advertisement? Yes (8) No( 2)
Were the best candidates attracted through advertisement? Yes (6) No (4)
Was initial screening through based on merit? Yes (10) No (0)
Was you selected by this organization directly or selected by another organization? Directly(10) By other organization (0)
How many interviewers were present during interview? 1) 3 (2) 7 (
More than 2
Do you think that your appearance has any impact on selection? Yes (9) No (1)
What type of working environment given to you by employer? Good (10) Average
Bad
Any Motivation by employer?
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By Promotion (5) By Bonus
By Increment (4) All Of Above (1)
What is the preferred factor for promotion? Age Experience (5)
Performance (5)
Performance Appraisal is communicated with employees? Yes (8) No(2)
The way in which performance appraisal is communicated ? Direct discussion (0) Indirect (10)
Any old age benefit given by organization? Yes (10) No (0)
Any unfair promotion in your organization? Yes (2) No (8)
Are you satisfied with your pay amount? Yes (10) No (0)
Are you satisfied with the facilities provide by organizations? (Medical, Allowances etc.) Yes (10) No (0)
The position at which you are; you are promoted to this position? Internally (10) Externally (0)
Any predetermined rules and regulations for retirement were communicated with you? Yes (10) No (0)
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Are you informed about retirement before time? Yes (10) No (0)
Graphical Representation of Employee Interview Result
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Criticism
The HR Department of Nishat is very strong and the overall
performance of the Nishat HR Department is very good but some
weaknesses also lies which we have found while writing this
report .Nishat use the no firing concept for employees but they use
the training, demotion and job rotation of employees if their
performance is below average which is not in the favor of the
organization.
Other problem lies when company do not out source their external
recruitment process and do not give chance to specialized firms to
hire best employees while the banking sector of Nishat Group uses
only outsourcing in external recruitment process.
The Nishat Mills hire its old employees after their retirement which
is a hurdle in the development and progress of new
employees.Performance evaluation result is not directly discussed
with employees and an indirect way is choosen for this purpose due
to which gap is there between management and emloyees.
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Recommendations
In Order to solve the problem the company must fire those
employees who are giving continuous poor performance in spite of
job rotation and training. Company must use external recruitment
firms like Personnel consultancies, Management recruitment
consultants, and Executive search firms to hire the best employees
as these companies are the expertise. The Nishat Mills must not hire
the retired employees on contract and give more and more chances
to the new talent.
Nishat Mills needs to improve its advertisement campaign as the
results shows that the company advertisement process is not very
effective and the best candidates are not attracted. Company also
needs to motivate its employees in a better way like bonus,
commissions, promotions and increment at the same time.
The result of performance appraisal should be discussed directly
with the employees and should be kept up-to-date with their both
negative and positive aspects. This can be done by arranging
meetings etc.
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