Acknowledgment:

We are highly obliged to our esteemed mentor Sir Imran
Akbar Saifi for his endless support throughout the project. Without his support
this project would not have been possible. We would also like to take this
opportunity to extend our humble gratitude to the management of PEL Company for
allowing us to collect all the relevant data about the company and using that
data for our respective project. In the end, we owe many thanks to the
participants of the group and their coordination to accomplish the task.

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Table of Contents:

 

Executive
Summary: 4

Company
Profile: 6

Analysis
of External Environment: 8

Growth: 13

Opportunities
and Threats: 13

Internal
Environment: 15

Structure
of Human Resource Department: 16

Description
of HR Practices followed by PEL : 16

Observation
of flaws: 26

Conclusion: 26

References: 27

 

 

 

 

 

 

Executive Summary:

This
project has been assigned to us (Ayesha Dastgir Khan, Arooha Nadir, Shehar
Bano, Muhammad Saqlain and Zohaib Anwar)
of Strategic Human Resource Management with a title “Overview of the Human
Resource Management Practices of PEL”. We went to
the company and met the strategic human resource partner, Mr. Arshad Ali A
question answer session was conducted in order to get the insights about the
company’s conduct in the field of HR. He gave us the overview of the overall
functioning of the HR Department. Due to time constraints, he could not proceed
with the interview in detail due to which he directed us to the learning and
engagement executive Miss Khadija Yousaf.

PEL
is the flag bearer of Saigol Group of Companies. The items produced by PEL have
always been of exclusive features and their name is synonymous to quality all across
the country. Besides their extraordinary products, the organization has
additionally created many experienced specialists, talented labourers and professionals
through its brilliant programs.

The
organization involves two divisions:

?         Appliances Division

?         Power Division

Organization
has a decent repute in the world of credit because of which the majority of the
institutions like National bank, Faisal bank etc. have given unique credit
parameters to them keeping in mind the end goal to benefit its operational
exercises. During our visit to PEL, we got a more extensive vision of the
appropriateness of the Human Resource Department in professional life and its
significance.

 

Company Profile:

Pak
Elektron Limited (PEL) is the pioneer producer of electrical merchandise in
Pakistan. In 1956, the Company was set up by Malik Brothers in specialized
joint effort with M/s AEG of Germany (“AEG”) to produce transformers,
switch-apparatus and electric engines. AEG relinquished their share of PEL to
the Malik Brothers in the late 1960s, which was subsequently acquired by the
Saigol Group of Companies in 1978.

Since
its origin, the organization has always been contributing towards the
progression and advancement of the engineering sector in Pakistan by presenting
a variety of electrical gear’s and home appliances and by delivering several
specialists, skilled labourers and experts through its apprenticeship plans and
training programs.

Until
the acquisition by the Saigol Group, PEL was exclusively catering power
equipment market. The Company ventured into home applications market in 1981
after acquisition as a part of the Group’s long term strategy of diversification.

Vision and Mission
Statement:

Vision:

To
Excel in providing engineering goods and services through continuous
improvement.

Mission:

To
provide quality products and services to the complete satisfaction of our
customers and maximize returns for all stake holders through optimal use of
resources.

To
promote good governance, corporate values, and safe working environment with
strong sense of social responsibility.

Power Division:

Energy
metersSwitch
gearsDistribution
transformersPower
transformersEPC

Appliances Division:

Washing
machineRefrigeratorDeep
freezerAir
conditionerMicrowave
oven

 

Analysis of External
Environment:

In
1948, from Calcutta the Saigols voyaged and began with their business in
Faisalabad, the city of textile in Pakistan, under the banner of Kohinoor
Industries Limited.

Kohinoor Textile Mills:

The
Saigols set up the major textile unit – The Kohinoor Textile Mills under the
umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has best in
class quality control from raw material to finished items fabricating. Its lab
is top of the line among the best research centers in Pakistan for testing of
textile raw material, other relevant inputs and yarn.

Initial
Capacity: 25,000 spindles Current Capacity: 71,648 spindles

Pak Elektron Limited (PEL):

In
1978, the Saigol Group of Companies bought major shares of Pak Elektron
Limited. At that point, the organization was just assembling transformers and
switchgears. With the Saigols in administration, PEL began extending its item
go by going into Air Conditioner production. The PEL Group comprises two
divisions

Appliances DivisionPower Division

Appliances Division:

PEL’s
Appliances Division is the banner bearer of the Saigol Group. This Division of
PEL comprises of home machines fabrication.

Power Division:

PEL
Power Division is one of the major electrical hardware providers to WAPDA and
KESC. Since 1956 the organization produces transformers, energy meters,
switchgears, booths, compact stations and shunt capacitor banks.

Description of the Products:

Appliances Division:RefrigeratorAir conditionerMicrowave ovenWashing machineWater dispenserDeep Freezer

All Air Conditioners:

PEL
presents Cool Life Split AC which is an innovatively propelled demonstrate
particularly designed for Pakistani market. This master piece from PEL gives
greatest cooling even at high temperatures while limiting power utilization.

PEL Silver Line Ovens:

PEL
the trustful organization name in home machines everywhere throughout the
nation has now presented every single new model of “PEL Silver line”
Microwave Ovens.

PEL Washing Machine:

PEL
washing machines are tremendously robust and contains cutting edge features
that helps lessen washing time, save detergent and give your laundry a high
quality finish.

Silver line Water
Dispenser:

Water
dispensers are a welcomed expansion to PEL scope of home apparatuses. Our
Silver line and Life-Stream water distributors make life somewhat less
demanding and fridge space ampler.

PEL Deep Freezer:

PEL
has presented its deep freezer which meets all the present and future demands
of a flawless kitchen! So Stock and Save more with our Deep Freezer!

Power Division:

Distribution
Transformer:

PEL
distribution transformers incorporates oil submerged centre compose
transformers, Dry write (VP impregnated) transformers and auto transformers.

Power Transformer:

Broad
experience and accomplishment in assembling distribution transformers prompted
the establishment of power transformer division in 2005. Since its inception,
the division has delivered transformers of ratings 31/40MVA, 20/26MVA, and
10/13MVA for appraisals up to 132 KV.

Dry Type Transformer:

Introduction:

The
demand of power in Pakistan has been expanding quickly over the recent couple
of years. There is a mushroom development in the tall structures, shopping
territories; the developed and also developing nations are introducing dry
transformers as a key for guaranteeing security in such situations.

Growth:

PEL’s
refrigerators and air conditioners are in extraordinary demand. At present, PEL
has 30% share of the overall industry. PEL deep freezers are preferred choice
of conspicuous organizations. Likewise, PEL is one of the major electrical
hardware providers to Water and Power Development Authority (WAPDA) and Karachi
Electrical Supply Company (KESC), the biggest power utilities in Pakistan.
Throughout the years, PEL electrical equipment has been utilized as a part of
various power projects of national significance in Pakistan.

Since
its beginning, the organization has always been contributing towards the
advancement of the engineering sector in Pakistan by presenting a range of
quality electrical equipment’s and home machines and by delivering a lot of
engineering, skilled labourers and experts through its apprenticeship plans and
training programs.

Lately,
PEL has been granted for the second time with ‘fourth CSR National Excellence
Award 2009’ for best endeavours inside the multi-dimensional extent of CSR and
an extraordinary award for ‘Best Information Material on CSR’.

Opportunities and
Threats:

Opportunities:

Exploitation of markets in PakistanOpportunities for exportIncrease in the capacity of productionIncrease in the range of products

Threats:

High competition in the marketChina’s increase growth rateGovernment instabilityIncrease in taxPrice competition

Competitors:

The
company is competing with many competitors. Some of them are as follows:

DawlanceOrientHaierWavesSamsungNobelMitsubishiSiemens 

Internal Environment:

Workforce
characteristicsStrengths
and Weaknesses  

Work force
characteristics:

PEL
has no particular necessity for the labourer being procured there however for
higher working position in PEL they require experienced, qualified and dynamic
supervisor projects, managers’ projects, and director security and
administrator business advancement. Mostly, they search for BSc Electrical
engineering with MBA.

Strengths:

Brand
NameQuality
ProductBest
sales serviceStrong
network of dealerStrong
management & R&DGood
customer service

 

Weaknesses:

Lack
of marketingFinancial
issueLess
capacity utilization

Structure of Human
Resource Department:

The HR manager of PEL
told us that the HR department promises and ensures to provide a positive
working environment and therefore our employees work together and coordinate
tasks in the form of teams which are related to different areas of expertise,
headed by an HR Manager. This shows joint specialization and complex
integrating mechanisms in which our teams are primary integrating mechanisms.
The Authority to control tasks is delegated and the communication is lateral.
Hence our department is a network of teams in which employees work in different
capacities simultaneously and over time. This highlights the organic structure of the HR department.

 

Description of HR
Practices followed by PEL:

For
each of the HR department functions, we interviewed the HR Manager who had 8
years’ experience in PEL’s HR department. He told us that he joined this
company as a training officer and then excelled as a recruiting head and then
finally achieved the position of HR manager. We started off by asking for his
introduction and the basic questions regarding HR. On being asked about the use of power that he possessed as an HR
Manager, he responded that power and authority was something which you don’t
need to use rather you need to exercise it. Further he was of the view that if
one had some logical reason to prove his decision right then he or she doesn’t
have to ask anyone. When asked about the use of power being on this designation
he added that if somebody had to leave the organization and you had to look for
another resource, that would be the time when you will realize the importance of the proper policy making
and when you will draft policy in such a manner that everything would be in its
optimal way, then you will not be questioned about anything. While enlisting the key points of his
self-assessment he told that he judges himself firstly by the turnover
ratio of the company. Secondly, he focused over the building of a polished
environment in the company i.e., the environment which was friendly enough for
the employees as well as the employer and this was where the key role of HR counts. For this purpose
PEL’S HR department celebrated family,
earth and children day and Eid with an orphanage named as Fountain House,
besides this PEL also launched a program, SIP, which was for internees in which
60 groups came as internees to become a part of different departments. PEL
conducted a seminar and assigned them projects and out of them top three
projects were selected by the top management of PEL and were  rewarded and this program of ours, according
to him, went  best so far nationwide. All
these activities count as one of PEL’s corporate social responsibilities, he
added. It’s all about interacting
with employees frequently, listening to
their grievances and at the time of
performance appraisal you try to take care of those grievances. He further
added, while appraising the performances you also needs to check the whereabouts of the market. For an HR
department, market intelligence means to check the structures, payrolls, perks
etc. of the organizations in your vicinity of our size and then compare our
structures with the current market condition in order to stay in competition
followed by the three steps as under:

Maintain a positive
working environmentTo provide the employees
with the privileges so that they remain a part of the organization.Facilitating the
employees with the opportunities of their self-growth.

On
being inquired about the departmental
structure of the company he answered that PEL as a company has one head f
the HR department that is situated in the head office and he governs all the
departments. Then comes 2 HRBP’s i.e. Human Resource Business Partners who look
after two divisions 1. Appliances division 
2.Power division. The job of the HRBP is to look after the division
needs and cover 4 functions:

Recruitment
Team

Training
and development team

Performance
and compensation

Employee
operations

For
instance if appliances division wants to hire HRBP will tell to the Recruitment
team; Similarly Power division can approach HRBP and tell that their department
requires training in some specific areas. HRBP understand needs and improves
communication with other departments. 
The HR department looks after both divisions at the same time. Following
are the major departments working in PEL:

Human ResourceFinance and Accounting Audit IR Import and logistics

Besides
this, the individual departments are:

Production,
Quality, Planning, Operations, Procurement etc.

Then
we asked him about the management style
he practices as an HR manager and he told us that he practices the management
style of power delegation.
Additionally he said that power delegation is important because the manpower of
the company should be capable enough to take their decisions themselves.
Definitely the management is there to cross check those decisions but they
should have an idea to design their decisions themselves. To support his view
he further added that if you want to have leaders in your company then you will
have to delegate power down the managerial hierarchy as this style of
management helps in building confidence and loyalty in the employees and they
work even harder for the success and betterment of the company. While talking
about the number of employees
working in PEL he quoted a rounded figure of 6500 which includes all the direct
and indirect employees. When we asked him about his areas of control as an HR manager he replied that the areas of
recruitment, performance appraisal and the creation and maintenance of
congenial working environment come under his control.

Furthermore we asked
him about the type of strategic
management being practised over there and he responded that the strategies
depend upon the dynamics of the company and the whole strategic management is
systematized accordingly. This is a part of the strategy of PEL to aware their
people about the team work and most of the work being done in this organization
is being achieved by this policy. The philosophy of Human Resource Management
according to our interviewee was that it’s not just about hiring and firing the
person but it’s a complete loop that starts from recruiting then comes the
screening of the resource. Next phase is of the training of the employee. This
is the point where most of the companies lack because they don’t possess any
specific training department (flaw). After the training process the need assessment of the employee is done
in which all the flaws of the employee are judged and then shared with the
concerned person after which the deficiencies are again highlighted and are
tried to overcome by the trainers again. This process builds confidence in the
employee and he gets convinced to think in the interests of the company as he
feels that the company is interested in his personal growth. And then his needs
are properly fulfilled. After that the stage of performance management comes
and finally the performance appraisal. This is the complete loop of the HR manager which is being practised in this
company. Then we questioned him about the talent
management technique’s practise in the company and he replied that they
call it as skill matrix and practise it in such a serious way i.e. first they
identify the skills of the employee as an individual then assign them the
suitable duties and in order to further enhance those skills the company gives
them the best facilities of the training workshops. When we asked him about the
HR tools being used in the company
the departmental level he told us that they are using straight forwardly Dashboard tool as the performance
measurement technique that contains all the consolidated information of the
employees overall. Later when he spoke to us about the high performance work systems he stated that if they have a top
manager who has his expertise in all the major departments of his related area
but possesses a little knowledge about the general departmental structures of
the company then the company organizes highly specialized training programs for
him in order to ensure the practise of high performance work system. While
talking about the identification of jobs
he told that the first need is analysed then
the job description is designed. This job description is designed by the departmental head in collaboration with
the concerned expert personality. This job description basically encompasses
all the important ingredients of the related job. In response to the question
related to the types of vacancies available
he replied that the vacancies have already been designed but now it’s just
being replaced but whenever there comes a need of a new department then
vacancies rise in the market. Moreover, he explained us about the process of Job analysis being practised
over there. He articulated that it is always the departmental manager who
always conducts the job analysis. He basically begins with the designing of job
description. Based on the job description the job analysis is done. An
important part of job analysis is the practise of continuous interaction with
the employees to get the insights. But specifically the job analysis is done at
the time of performance appraisal. The most important things that are identified during this process in PEL are
the training needs of the employee, his or her personal needs, his level of
satisfaction and motivation, his goals and objectives as an individual and
finally his expectations from the organization in future. All these things
count a lot in the growth of an employee and also in the successful running of
HR as a department because