Engro Human Resource Policy

HUMAN RESOURCE MANAGEMENT

Developing HR Department and Implementation for All Its Functions Engro Eximp BBA 6 C

Group Members 1. 2. 3. 4. 5. 6.

Aamir Aghai 1111177 Bakhtawer Abbasi 1111181 Khadija Rehman 1211326 Naimuttullah Charo 1211339 Abdul Moiz Munaf 1211316 Isha Shaikh 1211325

Contents Executive Summary.................................................................................................... Acknowledgement Letter............................................................................................ Section: I.................................................................................................................... 1.0

Introduction-Engro EXIMP Private Limited.........................................................

1.1

Vision & Mission.............................................................................................

1.2

Hierarchy structure: HR Department.............................................................

Section: II................................................................................................................... 2.0

HRM Functions:.................................................................................................

2.1

Strategic Human Resource Management.......................................................

2.2

Job Analysis....................................................................................................

2.2.1

Steps in job Analysis................................................................................

2.2.2

Job Analysis Questionnaire......................................................................

3.0

Human Resource Planning & Recruiting.......................................................

3.1

Equal Opportunity Provider.......................................................................

3.2 For Existing Openings/ Job Positions – Looking for Experienced Individuals.......................................................................................................... 3.2.1

Internal Hiring........................................................................................

3.2.2

External Hiring.......................................................................................

3.2.3

Management Trainees – Fresh Graduates..............................................

3.2.4

Developing New Positions......................................................................

3.2.5

Resumes................................................................................................

4.0

Employee testing & Selection......................................................................

4.1

Internal Hiring...........................................................................................

4.2

External Hiring..........................................................................................

4.3

Management Trainees...............................................................................

5.0

Interviewing Candidates..............................................................................

6.0

Training and Developing Employees............................................................

Organizational Requirements:............................................................................ Individual Training and Development Requirements:......................................... 6.1

On-the-job experience..............................................................................

7.0

Performance Management & Appraisal........................................................

8.0

Coaching, Career and Talent Management..................................................

8.1

Talent Management System at Engro Eximp:........................................... 1

9.0

Establishing Strategic Pay Plans..................................................................

9.1

Compensation Scenario in Pakistan..........................................................

9.2

Establishing pay rates...............................................................................

9.3

Basis for Determining Pay.........................................................................

9.4

Job Scope..................................................................................................

9.5

Performance & Compensation Reviews....................................................

9.6

Broad banding..........................................................................................

10.0 Pay for performance and financial Incentives.............................................. 10.1 Straight Piecework.................................................................................... 10.2 Merit Pay or Performance Increments as an Incentive................................. 10.3 Incentives for Professional Employees...................................................... 10.4 Profit Sharing Plans...................................................................................... 10.5 Other Non-Financial Incentives.................................................................... 11.0 Benefits and Services.................................................................................. 11.1 Eligibility for Benefits................................................................................ 11.2 Absence paid Leaves................................................................................ 11.3 Employee Holidays................................................................................... 11.4 Holidays Recognized by Engro Eximp....................................................... 11.5 Vacations.................................................................................................. 11.6 Payment in lieu of Vacations..................................................................... 11.7 Other Paid Leaves..................................................................................... 11.8 Insurance Coverage.................................................................................. 11.9 Coverage Required by the Government:................................................... 11.10

Other benefits provided by Engro Eximp:..............................................

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Executive Summary This report provides us a detailed view into the Human Resource Department of Engro Eximp of how the Human Resource Workforce carries out its tasks and how the structure is defined within the company and a detailed account of all the ways tasks are carried out within all of the HR Functions of the organization including training, recruiting, appraising, compensating, etc.

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Acknowledgement Letter We would like to this opportunity to extent our deepest gratitude towards Ms. Samar Hussain for assisting and guiding us throughout the course to enable us to write such a detailed report on Human Resource and its functions. This would not have been possible without her cooperation and the knowledge she has transformed to us regarding the subject.

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Section: I 1.0 Introduction-Engro EXIMP Private Limited Engro Eximp (Private) Limited is the group’s commodity trading business that deals primarily in the import and trading of phosphate-based fertilizers for Engro Fertilizers Limited such as DAP, MAP, MOP and SOP, and also imports micronutrients like Zinc Sulphate, which it supplies as raw materials to Engro Fertilizer’s Zarkhez plant for manufacturing blended fertilizers. Over the past five years, Engro Eximp has become the single largest importer of phosphates and potash fertilizers in Pakistan. Engro Eximp is also engaged in imports of food and energy commodities such as sugar, palm oil, wheat and coal. EXIMP owns 100% stake in Engro EXIMP Agriproducts Ltd. which is involved in procurement, processing and export of rice to markets in the Middle East and the European Union along with local sales. The company owns and operates a state-of-the-art paddy processing plant in Pakistan’s core basmati belt with processing capacity of 120 KT of paddy, making it the largest rice processing and finishing mill in the country. Total Employees Total Sales Revenue CEO

311 Rs. 20977 million Abdul Samad Khan

1.1 Vision & Mission Vision: “To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders” Mission: “Our mission is to create wealth by creating new businesses based on company and country strength in information technology, petrochemicals, infrastructure, foods and other agriculture sectors

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1.2 Hierarchy structure: HR Department Director HR

Manager Compensa tion

Manager Recruitmen t& Selection

Asst. Manager Compensati on

Asst. Manager Recruitment & Selection

Officer Compensati on

Officer Recruitme nt & Selection

Manager Training and Develop ment Asst. Manager Training and Develop ment Officer Training and Developme nt

Manager Administra tion Asst. Manager Records & HRIS Officer Records & HRIS

Asst. Manage r Employe e/Labor Relation s Officer Employe e/Labor Relation s

Asst. Manager Employe e benefits Officer Employe e benefits

Section: II 2.0 HRM Functions: 2.1 Strategic Human Resource Management We know already Engro EXIMP is the group’s commodity trading business and deals in a highly competitive environment of imports and exports of agri products with both local traders and international investors in Pakistan. Now 6

since it has decided on how to function, EXIMP needs to formulate departmental strategies to support its core competencies. The first and foremost is to formulate a plan for Human Resource Management. Strategic Human Resource Management means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve. The strategic plans imply certain workforce requirements. Given these requirements, it formulates Human Resource strategies to produce the desired workforce skills, competencies and behaviors. The foremost policy of Engro EXIMP will be to mold policies in such a way that it helps grow and assist the core competencies of the business. The employees shall be provided incentives as to support the core business of imports and exports. To achieve the above; be a superior Pakistani enterprise with a global reach, passionately pursuing value creation for all stakeholders base don company and country strength in agriculture, employees at EXIMP will have to portray skills and behaviors as to attract clients through constant outstanding and superior services with easy and terms for transactions. They will have to think in a terms of providing services to customers including caring for the value, incentivizing customers deals and contracts and that can be achieved through training and motivating them to be proactive about providing superior customer service. There can be incentives to be provided for such services from the employees, for example on getting new clienteles on board, or showing skills that support customer service. Also, the recruitment to be based on such that employees hired should be more customer-focused. For that to be possible, the involvement of higher management is imperial.

2.2 Job Analysis Job analysis is the procedure for determining the duties and skill requirement for the job and kind of person who should be hired for it. job analysis comprised of detail of both, job description; the list of job entails and job specifications; the kind of person the job requires.

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Job Analysis Job Specifications Rescuitin g and Selection Discount s

Job Descriptions Job Evaluatio n - wage and salary

Perfoma nc Appraisal

Training Requiremen ts

2.2.1 Steps in job Analysis 1. Interview employees and send out online questionnaires, daily log books to maintain data that can later be used for valuation job comparison purposes. 2. Review relevant information produced by the employees for setting benchmarks, performance schedules, standard operating procedures through organizational and process charts. 3. Select positions that provide the job accurately. 4. Analyze the job by collecting data with employees, in the case of Engro EXIMP, on field and off filed including client reactions, acknowledgements, targets met etc. 5. Verify information collected through proper channels and means. 6. Develop JD and Job Specification for recruitment.

2.2.2 Job Analysis Questionnaire A. POSITION INFORMATION Job Title: Sales Representative Department: Sales B. GENERAL PURPOSE OF POSITION

Job Code: 10000001 Division: Higher Education

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The person is responsible for getting export and import clients on board for agriculture products of Pakistan only. Also, maintain relations with such employees through customer service and client retention. They are also responsible for maintaining a business environment keeping in mind the legal terms and making such terms easy and compatible for the clients. C. SUMMARY OF RESPONSIBILITIES/DUTIES LIST FOR IMPORTANT DUTIES Find new clients for imports and exports of agricultural products Maintain relationships with these clients as to retain these clients through superior customer service. Make sales reports to keep track of targets met. Maintain legal documents and LC documents. Maintain audit and quality if service. Total

Weightage 25% 25% 20% 20% 10% 100%

General Education & Experience D. EDUCATION Up to 8 years of education Some College/Associate's Degree 9 to 11 years of education Bachelor's Degree High School Diploma or GED Master's Degree Vocational/Technical/Business School Doctorate Degree E. EXPERIENCE Less than 6 months 3 but less than 5 years 6 months but less than 1 year 5 but less than 7 years 1 year but less than 3 years 7 years plus F. TYPE OF SKILLS AND/OR LICENSING/CERTIFICATION REQUIRED Writing skills, Presenting skills, English both verbal and written, G. SUPERVISORY RESPONSIBILITIES No supervisory responsibility. Work leadership of one or more employees. Supervisor over a section of a department. Assistant Manager over supervisors or a small department. Manager of one department. Manager of more than one department. Director, through managers, of a single department. Director, through managers, of multiple departments. How many positions report directly to you? None 1 2-3 4-6 7 or more

3.0 Human Resource Planning & Recruiting As we know, Engro comprises of 7 divisions of diversified businesses, each division has its own HR department since the HR professionals belonging to that particular business will best know who exactly they are looking for. Engro Eximp divides its planning and recruiting in three sections, 1. Management and Technician Openings 2. Non-Management and Non-Technician openings 9

3. Management Trainees. Engro being the large organization it is, takes it human resource planning and recruitment process very seriously this is because they need to hire the right people who can sustain their continuing success that has been visible to all since years. 3.1

Equal Opportunity Provider Engro Eximp is an equal opportunity employer and at time of recruiting aims to find certain competencies and capabilities that they think are vital for the employees working in their organization, these competencies and capabilities are basically the set of skills and knowledge that they desire with respect to their organizations objective. These determinants play a huge role in them calculating their accuracy and reliability of their process by helping to estimate job success of individuals.

3.2 For Existing Openings/ Job Positions – Looking for Experienced Individuals 3.2.1Internal Hiring Before Engro Eximp decides to recruit externally, they internally assess if there is a need or position open for anyone to be hired in the first place. This again leads to two sections, is there an already existing position that has become vacant or does the company see the need to open and develop some new vacancy positions for some need whatsoever. If there’s an already existing vacancy then the department with the opening notifies the HR Department that does an internal analysis if anyone can be hired for the post so that from the same human resource someone capable could be given that opening as a promotion. For these openings the HR Department can use their HR System to find who is capable or place the notification of this opening on the notice board and also circulate an email for the job opening for interested and capable replacements. 3.2.2 External Hiring If there’s an already existing vacancy then the department with the opening notifies the HR Department who sees that there is no existing person from the human resource that can fill that position then they will place an advertisement in the newspaper and can also upload the details on their career tab on their website.

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3.2.3 Management Trainees – Fresh Graduates For management Trainees and fresh graduates, the HR Department will be responsible to send their HR Team for campus drives if new fresh students are being sought for. The HR Department depending upon their vacancies trend can go to universities on an annual basis for this or otherwise every alternate year or as per their need unfolds. At the session the HR Team will give the students a brief of their organization and who exactly they are looking for. After taking the resumes of the eligible candidates the Team will then conduct their test at the decided venue. 3.2.4 Developing New Positions The HR team on a semiannual basis will also keep a check if there’s a need to develop new vacancies then the department closely analyses the need and develop the positions accordingly, if there a requirement to increase or diversify the work force with respect to a change or introduction of something new in the organization or expansion, etc. 3.2.5 Resumes In any case resumes and CV’s would be required to be submitted to screen down candidates. The resume requires the basic elements, a photograph, complete detail of talent, interest and ambition. This is the initial stage since only the resumes that are cleared from this round become legible for the testing criteria. They are also required to fill in the registration application forms for applying.

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4.0 Employee testing & Selection 4.1

Internal Hiring Since the department is already aware of their internal employees and their performance from their time spent in the organization, they simply involved in an interview to see if this existing employees is fit for the opening (no test is taken), if so they candidate is hired for the position, and the position that he leaves vacant is then again seen for internal or external hiring. Selection here is on the basis of past record and eligibility.

4.2

External Hiring The testing and selection process of external hiring for experience and technical positions is rather longer. For the external candidates being hired, if its for a non-technical position then simply they will be asked to appear in a written test at the organization’s office, where they candidate will take a test which will comprise of questions relevant to the field of the department where the position exists in depending of nature of the job, if it’s a more simple non-technical job like that of the work staff required in the administration and domestic staff then a simple interview in some cases and then submission of documents would be required in all cases with some recommendation. It’s for a technical position then the candidate will not only appear in a written test at the organization comprising of technical questions of his field and the field of the opening and also be engaged in a practical test to see if the candidate is capable enough to carry out the desired technical work. If the technical person clears these two areas then he/she shall be passed to the interview round.

4.3

Management Trainees Those legible from fitting the criteria of the organization after the evaluation of their resume get to appear for the test that is usually an online test but can also be a written one carried out at campus or location. The test is prepared by the HR department to analyse and assess the cognitive ability through a series of questions on Logic, English and IQ level of the candidates. The test is for a standard 1hour and is received back by the HR Department who has them checked.

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The candidates who meet the score requirement of the test are then called for interview.

5.0 Interviewing Candidates In most cases, the best strategy for a job interview is to be fairly honest, because the worst thing that can happen is that you won't get the job and will spend the rest of your life foraging for food in the wilderness and seeking shelter underneath a tree or the awning of a bowling alley that has gone out of business. After applicants are screened with respect to their entry forms and at times tests, they then reach towards the interviews. The first interview is done via telephone. The basic information about the individual is discussed in this telephonic interview. It last for not more than 30 minutes. Discussion in such an interview comprises of the field of specialization of the individual, reason for choosing that particular field, his/her most recent success or learning in that field and so on. This interview occurs for both National and International candidates. After interviewers screen out candidates from the telephonic interview, most of the candidates then proceed towards the In-person interviews. The length of these interviews depend on the post the candidate is applying for; the higher the post the lengthier the interviews are for. On an average such an interview lasts for 45 minutes. Location of the interview varies from city to city for candidates residing in Pakistan. Whereas, candidates applying from outside the country are invited for an interview in Pakistan. However, if that is not feasible at that time for the interviewee, In-person interview for that candidate takes place over Skype or over any other internet medium of communication. If we classify the interviews, three basic distinctions between each interview exists. Examples, its structure differences, its content disparities and lastly, how Engro EXIMP administers the interviews. The interviews that take place over at Engro EXIMP, can be classified as structured and unstructured, both at the same time. The interviews start off as a general conversation(Unstructured). There is no right or wrong for these types of questions. The interviewee starts off talking about the general environment, interviewee's hobbies and so on. The interview then takes a structured form. These questions vary from the type of preferred field of interests of each candidate. Furthermore, these questions are listed down before the interviews and are constant throughout for each candidate applying for the same position. At times each question carries a score. Both telephonic and In-person interviews comprises of both structured and unstructured questions. An interview stating off as unstructured minimizes the rigidness and increases the comfort zone of the interviewee. On the other hand, the structured part of the interview ensures standardization. It increases consistency across candidates, increases job relatedness and reduces bias. 13

The content of the interviews comprises of either all or a mixture of situational, behavioral and job-related questions. All three combined form the basis of an interview here at Enrgo EXIMP. Each type of content varies from the position the interviewee is applying for. Situational questions include giving the interviewee a situation and then asking him/her about his/her potential behavior in that particular situation. The situations that are given depend largely on the type of job the interview is being held for. Behavioral questions, on the other hand, help evaluate how employees would behave in a given hypothetical situation. For example, "Can you think of a situation when you were blamed for something? How did you tackle that situation?” Lastly, immense importance is also given to job related questions. Interviewees are asked about their past job experiences. These questions, unlike the first two set of questions, aren't situational based or hypothetical; these questions evolve around actual situations or scenarios. For example, "What course was your favorite during your university life? “Or "In your previous job, which project of yours was the most successful and why?" and so on. For positions of higher caliber, a psychiatrist is also present during the potential employees interview. Mostly all In-person interviews occur in a panel interview. Such an interview is conducted by a team of interviewers. This team comprises of one human resource representative, head of the department the interviewee is applying for and one senior most person from any department. Psychiatrist is also, at times, part of this team. After a person has been selected from the interviews, if it is a candidate applying as a management trainee then after this interview there is a stage of the assessment centre in which the candidate is tested through case studies to see their performance. After this stage a final interview is conducted with the management committee depending on the position and those who clear this round are selected are selected and reference checks are done by the HR Department to assure that the information provided by the candidate is correct. During all these procedures, pre-medical tests can also occur if required. Finally placement of the selected candidate is done.

6.0 Training and Developing Employees Training and development are important for all businesses and are particularly critical for small organizations. Experienced, competent people contribute to both the productivity and profitability of the company. Remaining competitive depends in large measure on ensuring that your workforce is trained and up to date with ever-changing skills and knowledge, especially in today’s global economy, in which keeping up with new methods is so important. Despite the clear need to keep employees current, small organizations often show a 14

reluctance to train. This can be due to cost or the desire not to have people away from their job for any length of time. The HR department maintains and implements HR policies pertaining to employees training and development. Adequate training is carried out by professional of the HR team. Engro EXIMP believes strongly that people grow and learn most effectively through experience. Therefore, every opportunity is sought to try to develop an employee through work related experience. Such development implies an expansion or stretching of abilities or aptitudes. This form of development needs to be understood and actively supported by the employee and the supervisor. Candid discussion in all employee interactions is encouraged and serves as an effective communication tool. Engro EXIMP has a range of training programs, both core management and technical, which are used on a regular basis to develop skill and knowledge. Once an employee is taken on board at Engro EXIMP, an orientation takes place. Employee orientation is a procedure for providing new employees with basic background information about the firm. Our basic objective is, firstly, to make the employee feel welcomed and part of our team. Secondly, making sure the new employees has the all the basic information with respect to email access, personal policies, his/her rights, human resource policies and benefits and also what are expected of him/her. Thirdly, ensuring the employee has the general knowledge about the firm, its past, its workings, its future and most importantly its strategies. Last objective in employee objective is familiarizing the new employed individual jells in, knows the culture of the organization and all the ways of doing work around Engro EXIMP. An employee handbook covering mostly all the objectives mentioned above is also provided to the employee. For such newly hired members of our organization, we also provide personal digital assistants. Every new employee is paired with another member of the same department for his/her first week, so that he/she familiarizes easily and quickly. As soon as a person is hired into the firm, there is a need to begin training. Rapid changes in technology, products, and business applications make it necessary for small firms to devote time to the ongoing training and development of their staff. Training is not only necessary to keep the skill of the creative person current; it also contributes to your company's needs and goals. Thus, training and development can be considered from two angles: the organization and the employee. Organizational Requirements: What skills and knowledge organization require to keep it up to date and competitive?

does

our

Individual Training and Development Requirements: What are the skills and knowledge that the individual employee requires to develop and perform the job at the highest possible level?

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Assessing the training and development requirements of the individual needs to be done on an ongoing basis and is a key component of the formal performance review process. Here the key components are: determining the individual’s development needs and working out a plan to meet them. This formal review and the follow-up ongoing discussions need to address: The level of competency required for the job and whether the individual employee has reached that level What the person wants to do over the coming year or so (choices might include: wanting to expand knowledge and become more proficient in his or her current job, wanting to work on special assignments or in different areas of the business) What the individual hopes to accomplish in terms of business results An assessment of the person’s current levels of competency and future requirements. This will reveal what gaps have to be filled to develop competencies to the required levels and allow the individual to meet future job requirements The development of a plan, mutually arranged between management and the employee, to acquire the competencies that are now seen to be needed for the present and the future. This means a concrete and detailed plan that covers the methods for development, together with the actions and schedules that will lead to the goals set After determining the needs from the two aspects, we go into the implementation step of training and development of employees with respect to the needs identified. For employee training and development to be successful, Engro EXIMP strives to: 1. Provide a well-crafted job description - it is the foundation upon which employee training and development activities are built 2. Provide training required by employees to meet the basic competencies for the job. This is usually the supervisor's responsibility 3. Develop a good understanding of the knowledge, skills and abilities that the organization will need in the future. Share knowledge with everyone. 4. 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? 5. Explain the employee development process and encourage staff to develop individual development plans. 6. Support staff when they identify learning activities that make them an asset to your organization both now and in the future. For employee development to be a success, the individual employee should: 16

1. Look for learning opportunities in everyday activities. 2. Identify goals and activities for development and prepare an individual development plan. There are many ways to provide employees with such learning opportunities, including: 6.1

On-the-job experience

6.1.1 Conferences Employees can attend conferences that focus on topics of relevance to their position and the organization Upon their return, have the employee make a presentation to other staff as a way of enhancing the individual's learning experience and as a way of enhancing the organization. (Some conferences and forums may be considered off-the-job learning) 6.1.2 Job aids Tools can be given to employees to help them perform their jobs better. These tools include: manuals, checklists, phone lists, procedural guidelines, decision guidelines and so forth. Job aids are very useful for new employees, employees taking on new responsibilities and for activities that happen infrequently 6.1.3 Job expanding Once an employee has mastered the requirements of his or her job and is performing satisfactorily, he/she may want greater challenges; consider assigning new additional duties to the employee. 6.1.4Job rotation On a temporary basis, employees can be given the opportunity to work in a different area of the organization. The employee keeps his or her existing job but fills in for or exchanges responsibilities with another employee. 6.1.5 Job shadowing If an employee wants to learn what someone else in your organization does, your employee can follow that person and observe him or her at work 6.1.6 Special projects Give an employee an opportunity to work on a project that is normally outside his or her job duties. 6.1.7 Other methods of training and developing employees:  Internet based learning: In today's fast and modernizing time, internet can help one reap benefits to the maximum. Internet leaning has proved to more effective the classroom learning's.  Outside Seminars 17

 

Case Study Method Role playing: The aim of role playing is to create a realistic situation and then have the trainees assumed the parts of specific persons in that situation.

7.0 Performance Management & Appraisal The process of evaluating employee's work behavior by a senior manager or counselor and matching with the performance standards that is already set. It basically helps employees in getting the feedback and knowing where enhancements are required and why these improvements are needed. We define the employee’s goals and work standards so the employees should know ahead of time the basis upon which Engro is going to appraise them. We set SMART goals, Motivational Goals and use Management by Objective (MBO) tools to clearly define the Engro Eximp standards. At Engro Eximp, once you get employed, it is expected from you to contribute from the start. 

Training and development programs are being conducted to groom one's



personal and professional training. To ensure mutual expectations are being met by the employees,



performance will be monitored as a means of appraisal In Addition, Engro has not fixed its employee's career path. They expect a lot from their employees which depends upon their knowledge expertise,



professional capabilities and their motivation towards the work. We focus on making Engro a truly exciting place to work. For this we



constantly invest in development the skills of our employees. Our employees are motivated to achieve the overall strategic goals



through our different complete 'Professional Development Programs' Career-focused appraisal system, On-the-Job training, regular in-house and external programs makes our employees more dedicated and feel



committed to be a part of our energetic system. The appraisal system includes performance related salaries, forced posts,



check mark rating process and an unhealthy condition of competitiveness. Later we came up with the idea of Perform Max Commitment Appraisal system. It emphasized on building good relationships between the employees and managers but also resulted in an increase in the productivity of the whole organization. It focused mainly on one's developments rather than rewards. Both managers and employees will

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have to coordinate by sharing responsibilities effectively and efficiently using a positive approach. Furthermore, At Engro Eximp, we use different performance appraisal tools like Graphic Rating Scale Method, Alternation Ranking Method and Critical incident method. 

Graphic Rating Scale Method lists a number of traits and a range of performance for each employee. It helps in accessing the Job dimensions, Job’s actual duties and competencies of an employee. The employee is then rated by identifying the score that describes his level of performance



for each trait. Alternation Ranking Method is done to rank employees from best top worst on a particular trait, choosing highest, then lowest, until all are



ranked. Critical Incident Method involves keeping a record of uncommonly or undesirable work from an employee’s behavior and reviewing it with the employee at predetermined times.

Also we conduct different appraisal interview from subordinates to review the appraisal and make plans to remedy deficiencies and reinforce strengths.

8.0 Coaching, Career and Talent Management At Engro, an organization development is significant and an important feature to motivate close relation of the employees on occasions, in building and mapping the company's value system and its long term organizational goals. Employees are given an opportunity to have their creative views and opinions about the company's future. This helps Engro in coaching their employees, building their career and knowing talent. Their philosophy about its employees is that they are the most valuable and important asset. The philosophy is put into practice through an extended set of rules and regulations focusing on human resource development and management. Furthermore, we care of our employees and strongly believe in the dignity and value of our people. We want to create a healthy workforce in which employees are fairly treated, encouraged and empowered to contribute. We expect them to grow and develop themselves and help develop each other. Engro appreciates employees for the risks which turns into success and for the results achieved later.

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At Engro Eximp, we use Innovative Employer Career Initiatives. These include Lifelong Learning budgets, Role Reversal, Organizing Career Success team, Providing Career Coaches, offering Career Online Programs and Career Planning Workshops. 

Lifelong Learning budgets: Both employers and employee contribute, and the employees can tap into these to get the career-related education



and development they desire. Role Reversal: Making employees work in different jobs in order to develop a better appreciation of their occupational strengths and



weaknesses. Organizing Career Success team: Small groups of employees meet



periodically to support one another in achieving their career goals. Providing Career Coaches: It helps employee to create 1-5 year plans



showing where their careers with the firm may lead. Offering Online Programs: It helps the employer to analyze an employee’s training needs and to offer them different programs to counsel



and train them accordingly. Career Planning Workshops:

Engro

Eximp

conducts

different

workshops which are a planned learning event and employees are expected to be actively involved to sharp their skills. 8.1 Talent Management System at Engro Eximp: It is our automated end-to-end process where we plan, recruit, develop, manage and compensate employees throughout the organization.

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9.0 Establishing Strategic Pay Plans Engro EXIMP focuses on both the talents and skills that its employees reflect through their performance and the current market trends in the country. Engro Eximp will ensure and confirm the significant contribution of its employees in uplifting the company that to the leader of success will be based on the Direct Financial Payments (performance-related pay, variable remuneration and incentive plans along with offerings of retirement plans and medical and health care coverage. The set of activities are based on the flexibility in working practices including flexible working hours, comprising rotation schedule to virtual, travelling and expatriate arrangement to meet our growing company portfolio. At Engro EXIMP we consider trust and integrity as the core value. We focus to implement such value in all our employee relations and Engro EXIMP is committed to safeguarding the rights and ensuring the work safety for all the employees. We abide by the law and set high standards as expected by the industry leaders. During our business operations we ensure that such principles are followed and in return expect the same promise from our partners. 9.1 Compensation Scenario in Pakistan We ensure the full legal practices mentioned in various laws of Pakistan to implement it in our employee compensation plan. We implement wage legislation in our nominal level of employee based on the following laws.    

Payment of Wages Act, 1936 The Minimum Wages Ordinance, 1961 Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969 Coal Mines (Fixation of Rates of Wages) Ordinance, 1960 21

9.2

Establishing pay rates Engro EXIMP Compensation Philosophy:  

Attract and retain the employees with highest performance efficiency Company will introduce pay levels that will be in competition with our



competitors in the same industry Keep the diverse workforce motivated by recognizing and rewarding their



achievement, individual or group contributions, and excellences Will provide the non-discriminatory and merit-based pay

To accomplish these objectives, the Engro Eximp will provide a compensation program that establishes and maintains competitive salary levels within relevant markets and available resources, and which is consistent with job content, responsibilities, and requirements. The program will emphasize and encourage excellence

by

rewarding

individual

and

group

contributions,

including

performance that supports funeral home values such as service excellence, teamwork, flexibility, innovation, fiscal responsibility, and leadership. Consistent with the above, salaries for administrative and support staff will lead relevant markets when performance is substantially above established standards and expectations, and lag relevant markets when performance is below established standards and expectations. 9.3

Basis for Determining Pay We consider three areas that influence the employees pay: 1. Job Nature and its Scope 2. Payments by the competitors to their workforce for comparable jobs 3. Individual based performance

9.4

Job Scope Engro EXIMP compares the scope, impact, responsibility and required skills and abilities for each job. It will result in relative ranking of each designation from higher to lower grade. The process of job evaluation would be independent of an individual employee or his/her job performance.

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9.5

Performance & Compensation Reviews

9.5.1 Performance Reviews The employee manager would continuously valuate employee’s job performance. The daily interaction among the employees and their employers will give the employees a sense of how their employers aspect their performance. In order to avoid any wrong misleading evaluations, Engro Eximp would conduct a formal review of its employees, three times a year. The performance appraisal of new employees would be conducted frequently. Managers should consider following points while conducting the performance appraisal.    

Employee attendance, his initiative and the effort How much the employee has knowledge about his work Employee’s attitude and the willingness to work How much work the employee performs(quantity) and how well he has performed (quality)

9.5.2 Compensation Reviews Increment in employee wage and salary should solely base on merit, rather than on experience or cost of living. Wage and salary increases are based on merit alone, not length-of-service or the cost- of-living. Having employee’s compensation reviewed does not necessarily mean that employees will be given an increase. Engro EXIMP would conduct compensation reviews annually by following employee performance review.

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9.6

Broad banding

The minimum salaries of clerical staff will start from the Rs. 12000 which is Rs. 2000 above the minimum wage standard, set by the Government of Pakistan. This above figure shows the different bands which comprises the different staff of 300 employees of Engro Eximp. Band A includes Clerical staff or lower level staff who will be paid a minimum of Rs. 12000 and maximum upto the Rs. 30,000 depending upon the nature of job, skills and time required to perform the specific jobs. This band will also be provided other facilities by the company including health and benefits services. The Band B comprising of middle level staff such as the Department Managers, assistant managers, accountants etc. they will be paid minimum of Rs. 50,000 and maximum upto Rs. 120,000 along with the other benefits by the company. The compensation to the Band C will be decided by the BODs, which will include different parameters but the minimum or fixed of Rs. 500,000 will be paid in all situations. Further it will depend on the performance of the executives the way they will manage and run the company, their pay will be decided accordingly by the BODs.

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10.0 Pay for performance and financial Incentives Performance incentives will comprise of both the financial and non-financial aspects

to

the

individuals

and

the

group

performance

and

work

accomplishments. Engro Eximp with its staff of approximately 300 employees will be given a high recognitions and rewards on yearly and monthly basis. 10.1 Straight Piecework The lower level staff will be given a certain share as a reward on monthly basis whether they perform high or low. This will be certain percentage decided. 10.2

Merit Pay or Performance Increments as an Incentive Those employees who are showing high performance they will be given incentive in terms of their salary increments. The increments will be based on the degree of high performance as below.

Engro Eximp Company's Performance Weight Employee Performance (weight 0.45) Outstandi Excelle rating ng nt Outstanding >0.85 0.75 Excellent >0.80 0.7 Good >0.75 0.65 Marginal _ _ Unacceptable _ _

Goo

Margin

Unaccepta

d 0.65 0.6 0.55 _ _

al 0.55 0.5 0.45 _ _

ble 0 0 0 _ _

10.3 Incentives for Professional Employees All the professional employees such as middle level employees will be given the following incentives.  

Increment in salary on annual basis (Rs.8,000 of basic pay) Recognition in the company and appreciation by the head of department



or employer Will be provided with



outstanding criteria Will be sent on training or workshop within or outside country along with

extra leaves if their performance match the

vacation it can be in group if more employees show their best.

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

Employees will be communicated directly through email to pay them



appreciation on their better performance Company will organize an annual dinner where the professional employees will be invited with their immediate family and they will be given



recognition awards Company will provide the merchandize incentives such as (TV, Laptop, or any other stuff) on their performance.

 10.4 Profit Sharing Plans If the company earns an annual profit; all the employees from lower to top management will be equally provided the share at the end of the year. This profit sharing budget will be 5% of company’s annual profit.

In case the company

suffers the loss or achieves the breakeven, the employees will not be provided with this incentive plan. 10.5

Other Non-Financial Incentives

All employees especially the lower level staff will be given the high recognition in company’s magazine or newsletter by conducting their interview or anything that matters the most to these employees, in order to keep them motivated. The middle level staff will be given such recognition through company’s website or by giving them the entitlements of:  

Employee of the month award Employee of the year award

This will be the great incentive for middle management to work sincerely and loyally towards the company.

11.0 Benefits and Services In order to receive an equitable pay and equal employee opportunity and participation in various company programs, Engro Eximp ensure such benefits that keeps its employees motivated and satisfied. Therefore a well mentioned benefit program is the guaranteed investment here at Engro Eximp which not only ensures the employees’ loyalty in the long-term but will help in targeting the new talent who can bring synergy towards 26

company’s operations. Engro Eximp will monitor and review its benefit program annually and semiannually, if found any discrepancies then company will make amendments to make the benefits program much better looking at company’s condition. 11.1 Eligibility for Benefits Full-time permanent employees will be eligible to avail all these benefits mentioned thoroughly in this manual. But those employees who are part-time will be excluded of such benefits. Employees who are full-time employees but are hired on temporarily or contract basis will not enjoy such benefits. 11.2 Absence paid Leaves If the employee couldn’t come due to any reason on the work, he will be adjusted with his allotted sick leaves with no deduction in the pay. After his/her sick leaves are adjusted with the absence, and then employee absence will be adjusted with his/her vacation allotted time. Any absence after this will be resulting in deduction of their salary. 11.3 Employee Holidays Permanent and full-time employees will be eligible to receive the holiday pays. Whereas newcomers, part-time and temporary employees will not be eligible to receive the holiday pays. 11.4 Holidays Recognized by Engro Eximp Engro eximp recognizes the following holidays under which full-time and permanent employees will be eligible for the pay.     

Independence day (14th August) Eid holidays (Eid-ul-Fitr and Eid-ul-uzha) Moharam al Haram Christmas day Labor day

11.5 Vacations Vacations are benefits to Engro Eximp to enjoy their life, rest and relax at home and spending time with family. This is one of our ways in which we show our appreciation to our loyal employees and their services. Only permanent and fulltime employees are eligible for this paid vacation, whereas no other part-time,

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introductory or temporary employees will be availed with these paid vacations benefits. 11.6 Payment in lieu of Vacations Engro Eximp aims to provide the vacation to its employee to relax, rest and enjoy with their family at home and pursue their interests. Company will not provide any additional wages or salary to employees instead of vacations.

11.7 Other Paid Leaves 11.7.1 Funeral Leave Employees will be allowed with leave of three (3) days on the death of his/her immediate

family

member

(mother,

father,

son,

daughter,

grandmother,

grandfather, brother, husband, wife or anybody living under one roof). Employee will be provided with one (1) day paid funeral leave. Only the permanent and fulltime employees will be eligible under this policy. 11.7.2 Sick Leave Employee must be a full-time and permanent employee in order to become eligible for the paid sick leave. Employee ill or sick leave will be availed only in case of employee’s personal illness. Employee would be paid the straight pay for 8(hours) per day for six (6) days for a calendar year. Employee’s manager must be informed as soon as possible that employee will remain absent due to his/her personal illness. Employee must bring the proof of his/her illness doctor recommendations, or medical record file etc. 11.7.3 Disability/ Pregnancy Leave If the permanent and full time employee of Engro Eximp becomes disabled and can’t come at work for an extended time period, will provided with paid leaves over that period. This plan is applicable under the short term disability plan of Engro Eximp. 11.8 Insurance Coverage 11.8.1 Employee Group Insurance Engro Eximp is devoted for the wellbeing of its employees and their families. Company has availed its employees a comprehensive insurance plan. Company will provide its employees with these benefits underwritten by the EFU life 28

Insurance carrier. Introductory employee after completing their 90 days at work will be eligible for this insurance program. Such benefits will be covered by EFU insurance company:    

Family life insurance Accidental death Dental care and vision care coverage Medical Health Care

11.8.2 Disability Insurance Engro Eximp employees are covered under the short-term insurance program due to the financial hardship which cause them serious illness and result their disability which is not job related. This insurance package will cover Rs. 300,000 (3 lac). If any cost incurred above this limit will be beard only by the employee on personal behalf. Company will only pay upto the limit of Rs. 250,000. 11.8.3 Life Insurance Engro Eximp full-time and permanent employees will be able to benefit from Group Life Insurance. If anyone of employees’ immediate family meets a certain death due to any cause will be availed with insurance in different installments as per the policy set by the employee. 11.9 Coverage Required by the Government: 11.9.1 Workers’ Compensation If any of Engro Eximp employees gets injured at work he will be eligible for the 100% pay. Therefore employees will be eligible to apply for the workers’ compensation if any such situation occurs at work. 11.9.2 Employee Retirement Plan Engro Eximp employees, who have completed their services tenure at this company, will eligible to receive every month the pension installments. The retirement plan holds only when employee’s age becomes (60 years), if any of the employees ask for the early retirement it will consider certain qualifications. 11.10 Other benefits provided by Engro Eximp: Annual family dinner: employees will be availed with a yearly event of family dinner where all employees will be able to come with their families and they will be having dinner and get together.

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11.10.1 Education Assistance Those permanent and full-time employees who want to pursue their further education will be availed with the assistance of their tuition fees. Employees will have to submit their education and institution details to the manager. Employee should take an approval from the manager before he/she take the specific courses. Employee will have to show their transcript or certificate after completing the degree or course. Employees will only be assisted with such facility that has shown excellent or average performance. 11.10.2 Bonuses Engro Eximp will distribute bonuses every year based on the employees attendance, competency, efficiency, knowledge of the field, attitude and behavior with colleagues, cooperation etc. Promotion Policy: Engro Eximp will advise its employees about any opportunities within the company, by mentioning on the bulletin boards or sending them emails etc. If there is any vacant position available within the company, every effort will be made to promote the qualified employee to that position.

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