Functional Analysis of Human Resource Department

Study developed by BBA students, University of Wah, Wah Cantt

February 2011

Kohinoor Textile

Mills Limited

Kohinoor Textile Mills Ltd

Textile is one of the oldest industries of the world and Saigols are among the

pioneers of this industry in Pakistan. KOHINOOR TEXTILE MILLS LTD is

ranked as one of the best composite textile units in Pakistan having a finishing

capacity of 4 Million Meters in form of Bleached, Dyed & Printed Fabric. All the

products are being exported in shape of Bleached, Dyed & Printed Piece Goods

and Home Textile Products including Bed Linen (Duvet Covers, Bed Sheets,

Fitted Sheets, Valance Sheets, Bed Skirts, Comforters, Bed Spreads, Pillow

Covers, Pillow Shams), Furnishing Items (Ready Made Curtains, Pelmets,

Drapery Sets, Tie Backs, Cushion Covers) and Table Linen (Table Covers,

Napkins, Seat Pads, Table Mats).

Kohinoor Textile Mills Limited (KTML) is a customer driven company that

believes in continuous improvement in its products & Services. It provides all the

times to customers a growing range of products to meet their changing needs.

Their trend-setting products include Fabrics as well as home fashion products.

KTML focus on specialty, value-added products that stand out in a crowded

marketplace.

History

The Kohinoor Maple Leaf Group (KMLG) was formed by the Saigol family.

Founded in the early 1950s in Pakistan, KMLG is a reputable and leading

manufacturer of textiles and cement. The Group currently comprises of Kohinoor

Textile Mills Limited (KTML) and Maple Leaf Cement Factory Limited (MLCF)

with KTML being the holding company of MLCF.KTML was established in 1953,

initially with 25,000 spindles and 600 looms with further expansion in 1954.

List of companies under the Saigol Group

Kohinoor Textile Mills.

Pak Elektron Ltd. (PEL).

Kohinoor Power Company.

Faisalabad Grammar School (FGS).

Kohinoor Energy

Saigol Computers (Private) Limited

Kohinoor Motor Works Limited

Saigol Motors

Sajeel Sehgal ltd

Shoaib steel ltd

Wahab Sehgal ltd

Introduction

The Kohinoor Maple Leaf Group was born from the trifurcation of the Saigol

group of companies and is a reputable and leading manufacturer of textiles and

cement. KTMG comprises of Kohinoor Textile Mills limited (KTML) and Maple

Leaf Cement factory limited (MLCF). Both companies are incorporated in

Pakistan and are listed on three stock exchanges of the country. Today, K.M.L is

considered to be at par with multinationals operating locally in terms of its quality

products and management skills. KTML was established in 1953 and is one of the

oldest companies of Pakistan with over 50 years experience in textile

manufacturing. The KTML is located at Peshawar road, Rawalpindi over an aria

of 997966.37sft including a residential colony (280,067sft) and colony clubs,

schools (43288 KTML sq ft) at the mill side KTML started its working with

25,000 spindles and 600 looms with further expansion in 1954. However, after

decades of aggressive expansion and modernization KTML has emerged into a

fully vertically integrated home textiles company with state of the art capabilities

for spinning, weaving, dyeing, printing and stitching. The company has a diverse

customer base with sales in both the local and export markets. The main

international markets include Asia, Europe, USA and Australia. The high quality

of management in the company has resulted in achieving many international

certifications, such as ISO 9001, 2000, OKEO TEX 100, WRAP and various

certifications from leading retailers of the world including Wal-Mart, Sears, JC

Penny, Macy's and Marks and Spencer. KTML is one of the most compliant to

international standards textile companies in Pakistan.

Company is presently headed by following persons:

Chairman: Tariq Saeed Saigol

MD: Mr. Waleed Saigol.

Vision Statement The Kohinoor Textile Mills Limited Stated Vision Is To Achieve And Then

Remain As The Most Progressive And Profitable Company In Pakistan In Terms

Of Industry Standards And Stakeholders Interest.

Corporate mission

Mission Statement: The Company Shall Achieve Its Mission Through A Continuous Process Of

Having Sourced, Developed, Implemented And Managed The Best Leading Edge

Technology, Industry Best Practice, Human Resource And Innovative Products

And Services And Sold These To Its Customers, Suppliers And Stakeholders.

Put the customer first always.

Be flexible to the customer’s needs.

Adhere to the highest quality standards.

Think innovatively but make informed business decisions.

Deliver results.

Values

"Honesty, integrity, and hard work."

The company’s success, as well as the success of individual employees, can be

traced to embracing and practicing these values. Flowing from the values of

honesty, integrity, and hard work are a set of principles that we believe in and use

to govern our behavior as Kohinoor Industries employees.

Certification:

Human Resource Department

All organizations have people -- they have human resources. Regardless of the

size of an organization or the extent of its resources, the organization survives --

and thrives -- because of the capabilities and performance of its people. The

activities to maximize those capabilities and that performance are necessary

regardless of whether the organization refers to them as Human Resource

Management. The Human Resource Department (HRD) is the key strength of any

organization in motivating employees, managing HRIS, dealing external affairs,

handling with each department’s performance, making promotions etc. HR

department of KTML is well established and working on the legal and ethical

principles.

Kohinoor believe that their people are the most valuable asset. They view human

resources as a competitive advantage and therefore ensure that only motivated and

professionally qualified people are employed here. KTML also ensure that

business goals are realized through people whilst meeting their own personal

aspirations. KTML is an equal opportunity employer with policies to ensure there

is no discrimination on the basis of cast, creed, sex and religion.

Hierarchy of HRD at KTML

General Manager is the top most position of the HR department of Kohinoor

Textile Mills Ltd. (KTML) Rawalpindi. Succession positions are Manger HR, and

then Deputy Manager HR following by three assistant mangers and a Labor

officer. Labor Officer who is responsible to deal with Government/cantonment,

labor union or any kind of legislation regarding KTM. There are almost 25

personnel in the HR department and the single Human Resource officer (HRO) is

responsible to deal with 1000 employees

Manager HR

Human Resource Officer

General Manager

Assistant Manager

Dy. Manager

Assistant Manager

Assistant Manager

Human Resource Officer

Human Resource Officer

Labor Officer

Functions of HRD

As the whole business of KTML

Rawalpindi is based on export so they

fulfill all the legal requirements of local

as well as International Laws and perform

following functions of HRM.

Human Recourse Planning

The first function of Human resource is

planning. Without appropriate plan it is

impossible to move a single step. The key

aspect of HR planning is to determine and forecast the HR needs. KTML forecasts

the need of Human recourses to perform the desired functions and moreover it

maintains the human resource inventory or we can say that they maintain the

standby employees in case of extra production in future. They plan for succession

paths and also mould the paths for employee development. At KTML human

resource department plans and forecasts for at least 6 months framework ahead in

future.

Job Analysis

Job Analysis is a process to identify and determine the detail of particular job

duties and requirements and the relative importance of these duties for a given job.

Job Analysis is a process where judgments are made about the data collected on a

job.

KTML has its own job analysis method according to that it analyze the jobs

according to the tasks, responsibilities and duties of the job along with what type

of qualities, knowledge, skills and abilities are require to fulfill the job. By

conducting job analysis benefit is that company able to find the right person for

the right job. It is important when the company create a new job or job change. By

the effective job analysis KTML is able to clearly describe the job, state the job

specifications and most of all it helps to evaluate the job that what is the worth of

particular job to organization.

Recruitment

Successful employment planning is

design to identify the need of HR in the

organization. Once these needs are

known an organization try to meet

them. Recruiting is a process of discov-

ering potential candidates for actual,

anticipated organization calamities or

for another perspective, it is linking

activates that brings together those with jobs to fill and those seeking jobs.

The KTML perform the recruitment process in such a way that it encourage the

qualified people and discourage the nonqualified people. Basically it utilizes both

sources of the employment i.e. internal and external. It prefers the internal sources

but if the particular person is not available internally than it look for external

sources.

Internal sources

The internal sources of the employment in KTML is their highly established

Human Resource Information System (HRIS) in which it provide the details about

the replacement chart, in which the details are provided about the vacant jobs and

details about the most suitable persons available for posts in succession. The

second internal source is employees’ referrals.

External sources

If the relevant persons are not available inside the organization than KTML seeks

for the external sources of employment. The organization’s external sources are

following:

Advertisement

Online CV Database

Regular Employment

Advertisement

Whenever the position is vacant

in the organization they advertise

the vacancy through the print

media and also uses the Internet

(hiring websites e.g. rozee.com

etc).

Blind Box ads

This is an external source of the employment for the Organization in which it uses

the Blind Box ads, there are many reasons behind that they advertise the vacant

job by the Blind Box ads, the main reason is that the people who want to apply for

managers level job in KTML, they approach to higher level management and even

to Owners of the Corporation for recommendations. The image of the organization

is very well reputed, that’s why the more people apply for the job even they are

not applicable.

Online CV Database

The organization has its website where it collects the CVs and maintain the

database or databank, and they can utilize when required.

Regular Employment

Above two sources are used for managerial level post and this source is use for the

labor hiring. The organization allocates two days every week (Monday &

Thursday) in which they recruit the labors.

Selection Employee Selection is the process of putting right

men on right job. It is a procedure of matching

organizational requirements with the skills and

qualifications of people. Effective selection means

effective matching of person with job. By selecting

best candidate for the required job, KTML gets

quality performance of employees. That’s why the

KTML faces less absenteeism and employee

turnover problems. By selecting right candidate for

the required job, organization also saves time and

money. Proper screening of candidates takes place

during selection procedure. All the potential candidates who apply for the given

job are tested on following steps:

1. Completion of application form

2. Employment test

3. Comprehensive interview

4. Background Investigation (Conditional)

5. Conditional job offer

6. Medical/physical examination

7. Permanent Job Offer

Completion of application form

There are lot persons who applied for the required post and the short listed

candidates are required to fill the form. Here company takes only the applicants

name, address, telephone no. and other specific information about the applicants.

For this purpose the company have specific application form that are given to

short listed candidates and collected later.

Employment Test

The firm takes different test of short listed candidates that include both written and

oral test. These tests measure intelligence aptitude, ability, perception skills,

mechanical comprehension, work sampling (the applicants are required to perform

some task of the job in the actual environment) and interest of the candidates.

Comprehensive interview

A selection tool that is used to obtain

in-depth information about the

candidates. Applicants who pass the

employment test are again short

listed and called for the interview.

The comprehensive interview is stru-

ctured and sometimes situation

based. Where the applicant has to

answer the questions of interview

panel. And the interviewer assess

ones motivation, value, stress manag-

ement, decision-making, ability to work under pressure and ability to fit with the

organization. The interview panel consists of General Manager HR, Health and

safety manager and head of concerned department (marketing, production, finance

etc). For the higher-level post the MD of KTM can be the part of the interview

panel.

Background Investigation (Conditional)

The Process of verifying information and record that are provided by the

candidates. Here KTML verify educational accomplishments, previous work

performance, personal references and individual’s legal status etc. The background

investigation is not necessary for every kind of post. Here it is mostly done for

managerial posts.

Conditional job offer

Individuals, who pass successfully in the preceding steps, are now consider

eligible to receive the employment offer on conditional basis. The employees are

crosschecked and observed for the period of three to six month called probation

period. After the end of that period the supervisor provide the detail report and

sent to HRD. The HR personnel take information about that employee with the

help of HIRS and evaluate performance. The decision for permanent job is made

on the basis of this performance report.

Medical/Physical examination

After conditional job offer the employee is examined medically and physically to

ensure the fitness for the job. At worker level the medical examination is done

through social security institute and for the managerial level the KTML has its

own medical officer.

Permanent Job Offer

If the probation period and all preceding steps are passed than the employee is

offered a permanent job. For the managerial level post, the supervisor of

concerned department gives the performance evaluation report (with his personal

suggestion) of the probation period to the HR Managers. The HR managers also

get the evaluation from HRIS about the particular person. They analyze the

performance and than the report sent to senior managers than the HR department

take decision to offer permanent job. At this level the employee is enrolled on

permanent basis and he is now liable for all the compensation and benefits

including, residence, medical and insurance etc.

Socialization and Orienting

Socialization

Socialization is the process of adaption that takes place when an individual

attempts to learn the values and norms of the organization. When selection process

is completed, the new stage starts called socialization. There are three stages of

socialization: pre arrival stage,

encounter stage and metamorphosis.

KTML supports the employees to quic-

kly adapt and pass these stages. The

process completion helps to increase

the productivity of employees and their

commitment toward organization.

Orientation

Activities that introduce new employ-

ees to the organization and their work units. In the orientation the employees are

given a formal presentation about objective, history, procedures, philosophy, roles

and regulation of the organization. The conducting the orientation is the

responsibility of the HRD. The employees are given handbook that states the

policies of the organization and FAQs.

At KTML the formal orientation is given by the head of department and if the

whole batch is new coming than the president of the KTML. The role of HR is to

perform coordination. In the orientation some following steps are taken.

Welcome to employees.

Provide a vision for the company.

Introduce company culture -- what matters.

Convey that the company cares about employees.

Allay some new employee anxieties and help them to feel good about their

job choice.

Training and development

The training is the changing knowledge, skill, behavior and abilities to develop

desired changes on permanent basis in employees to perform a current job. It is

present oriented to enhance the skills of the employees to perform the job. It is

especially given when the employees are new, change in technology, methods, or

when the productivity is declining.

The KTML adapt both training techniques “off the job training” and “on the job

training”

In “On the job training” the supervisor gives the instructions and train over the

equipments and machineries. While at off job training, they conduct lectures,

seminars and announce different courses. For the professional training, employees

are sent to other cities as well as abroad. The development is future oriented and

KTML uses the same techniques as used for training the employees along with the

job rotation.

Performance Management system

Performance Management system is an evaluation of employees’ performance

with respect to goals and objectives. KTML gives critical consideration to

performance management or performance appraisal system. For performance

evaluation the key method used, is essay appraisal method in which the supervisor

prepares detail report about employee’s performance and sent to the HRD. Where

they compiles the information given by the supervisor as well as from HRIS.

HRIS plays very important role in evaluating the employees’ performance. As it

contains real time up to date information such as working hours, absenteeism,

punctuality, over time, and time period of job etc. There is thumb impression

attendance system is installed exclusively in the organization, each and every

employees when enters in the work place, or exist he must has to give thumb

impression to the attendance system, which automatically updates the HRIS.

Compensation And Reward Management

Rewards are the incentives that are given to the employees to motivate them and

obtain the desired goals. The reward system of the KTML is comprises of intrinsic

rewards, extrinsic rewards, financial, non-financial, performance based and

membership based rewards. When the organization earns the high profit then the

expected standard it distributes the part of profit in employee. They establish their

pay structure according to the local laws as well as keeping view of international

laws. When the performance of particular employee is good the organization gives

both financial and non-financial rewards. The non-financial rewards include

attractive title, promotion or administrative assistants and preferred parking space.

Rewards are aligned with performance and these motivate the good performers as

well as non-well performers so that they try to improve their performance and take

the rewards.

Job evaluation is the relative worth of each job in organization. On the basis of job

evaluation company’s compensations are managed. KTML has its own

customized compensation management program in order to create pay structures

that attract, motivate and retain the captive employees. The compensation program

fulfills the local government policies as well as international laws of compensation

including least pay, work hours and other benefits etc.

Below are some policies of KTM to compensate their employees.

HR Polices:

Health And Safety Policy

Environmental policy

Social Compliance Policy

Labor union policy

Whistle blowing policy

Insurance policy

Promotion policy

Old age benefit policy

Accommodation policy

Recruitment policy

T & D policy

Noise Control Polices

Tobacco Smoking Policy

Security policy

Leave policy

Time policy

Over time policy

Health and Safety Policy

For maintaining the health of employees KTM provides safe and secure working

environment to its employees, so that they fully motivate and work at their

potential productivity. All employees are enrolled with social security institute for

medical facilities. There is a dispensary that facilitate to its employees and their

families where qualified doctors provide their services 24 hours.

Safety precautions are written on different Pillars in spinning, processing, and

stitching and quality assurance department so that employees may be aware from

safety and protection needs during their work. The fire extinguishers are installed

in overall organization.

Environmental policy

KTML also take care of the environ-

ment in which it operates. It is ISO

9001 & 2000 certified for the envir-

onmental policies.

Social Compliance Policy

Labor union policy

As per the labor union policy, there is a registered Labor union at KTML that

plays very productive role in the progress of the organization. The labor officer is

responsible to deal with the union and other legal affairs.

Whistle blowing policy

KTML has also developed a whistle blowing policy that provide complaint boxes

on the different sides of the organization and any employee can drop complains

without mention his or her name and designation. Complains are weekly checked

if the complain is genuine the organization surely take action against the

complaint.

Insurance policy

KTML provides life insurance to all its employees. In case of any accident or

causality in the working environment the employee get claim. Social security

institute insures the employees (labors) having pay less than Rs. 10,000. While the

insurance company EFU insures the employees (managers) having pay more than

Rs. 10,000.

Promotion policy

The firm has its promotion policy that fulfills all ethical as well as legal

requirements. And this policy purely follows merit.

Old age benefit policy

Company deducts 6% per month from the salary of all employees. The social

security institute is responsible for this policy under the Employees Old Age

Benefit Fund Act 1976.

Pension Benefit: Provident fund lump sum amount is given to the employee at

the time of retirement. And the pension is regular amount that is paid to employee

after the retirement for the lifetime. And in the case of death the part of the

pension is given to the employee’s family every month.

Accommodation & education policy

The KTM provides the residential facility

along with subsidized electricity, gas. Fatalit-

ies differ according to grade of the emp-loyees

The KTM also provide the education facility

to the children of its employees. There is an up to middle and secondary school,

where the qualified and hard working teachers mentor and enlightens the mind and

the personality of the students.

Recruitment Policy Of Company

Company has designed the Recruitment Policy as follows:

Age of worker should be 18 or more years at the time of recruitment.

He should have C.N.I.C.

Physical health should be proper as regarded to the nature of work.

This board is clearly seen at the front of the main entrance of the organization.

T & D policy

The KTM provide training and development opportunity to its employees on

continues basis to compete with latest trend in technology and methodology.

Noise Control Polices

Noise Control Policy is specifically for production department, where huge

machinery operates with considerable noise, so company provides noise control

equipment to overcome it. No smoking is allowed in the mill area as different

signboards are attached in different mill area.

Tobacco Smoking Policy

Smoking is strictly not allowed inside the organization. Signboards are attached at

many locations for prohibiting smoking. The organization has also allocated

particular open-air spaces for smoking called smoking zones.

Security policy

Company provides complete security and safety to employees and their families.

KTML designed different polices related to organizational security as well as

colony security. The KTML installed walk through gates on entrance and many

guards assure the security conditions. The KTML also installed CCTV cameras for

monitor.

Leave policy

Casual Leave: An employee can take ten casual leave during one calendar year.

Sick Leave: An employee can take eight sick leaves during one calendar.

Earned leave: Such leave is given to an employee for fourteen days after

completing one-year service.

Maternity leave: Company gives salary of six weeks before maternity and after

maternity to its ladies worker.

Time policy

KTM promotes punctuality and discourage to the latecomers. The automatic

machines mark attendance of each employee when he enters or exit. This system

also helps to HRIS for performance appraisal.

Over time policy

Under this policy company pays to its employees if they have done work more

than 40 hours a week. And the rate of over time amount is at least one and half the

normal rate.

Conclusion

The HR department is well

managed and follows the

cutting edge principles of

human resource managem-

ent. They are following

local as well as internatio-

nal laws. The pro-duct of

the KTML is demanded in

the international markets

due to its quality products.

KTML believes that a motivated workforce and a safe and healthy environment is

the key to its success, HR policies are reviewed every two years. Kohinoor

provides free housing in safe colonies to all its employees, medical insurance,

education for children and has also established provident and workers’

participation funds. Hospitals and schools have also been set up within the

colonies. Presently KTML employs over 5000 people. It has a comprehensive

HRIS that helps to mange all its employees and also helps in performance

management etc. Kohinoor Textile Mills is an SA 8000 & ISO 2001 certified

company and is also approved by the California Safety Compliance Corporation

(CSCC).