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HR Policies Analysis
Submitted To: Mr. Abdul Hameed Khan Submitted By: Shazia Tabassum(ID#11616) Saba Salahuddin (ID#13153) Abdullah Chaudhry (ID#10244) Submitted On: 20thApril, 2013
Table of Contents
PAKISTANS SOFTWARE INDUSTRY .................................................................................................... 1 Statistics of the Pakistani IT Industry .............................................................................................. 2 Pakistani IT Export ......................................................................................................................... 3 HR CHALLENGES IN THE SOFTWARE INDUSTRY .................................................................................. 4 Workforce Retention and Motivation ............................................................................................ 4 Attracting the Best Talent .............................................................................................................. 4 Compensation and Reward ............................................................................................................ 5 Being the best place to work with .................................................................................................. 5 Coping with the Demand-Supply Gap............................................................................................. 5 Integrating HR strategy with Business Strategy .............................................................................. 6 Encouraging Quality and Customer focus ....................................................................................... 6 Up-gradation of Skills through Re-training ..................................................................................... 7 In a nutshell ................................................................................................................................... 7 COMPANY INTRODUCTION ................................................................................................................ 8 Company ....................................................................................................................................... 8 Vision Statement ........................................................................................................................... 8 Mission Statement......................................................................................................................... 8 Corporate Values ........................................................................................................................... 8 Business Philosophy....................................................................................................................... 8 History........................................................................................................................................... 9 Global Operations.......................................................................................................................... 9 Human Resource ........................................................................................................................... 9 i) HR Vision ............................................................................................................................... 9 ii) HR Mission ............................................................................................................................ 9 iii) HR Values ........................................................................................................................... 10 iv) HR Performance Areas ....................................................................................................... 10 Career Management.................................................................................................................... 11 HR Tools for Career Management ................................................................................................ 11 HR Area of Practice ...................................................................................................................... 12 Staffing/Recruiting ................................................................................................................... 12 Succession planning ................................................................................................................. 12 Staff turnover .......................................................................................................................... 12 Staff motivation ....................................................................................................................... 12
Employment equity ................................................................................................................. 12 Performance Management ...................................................................................................... 12 RECRUITMENT ................................................................................................................................. 13 Equal Opportunity Employment................................................................................................... 13 New Employee Orientation.......................................................................................................... 13 New Employee Documentation ................................................................................................... 13 Identification ............................................................................................................................... 14 Job Announcements .................................................................................................................... 14 Probation .................................................................................................................................... 14 CAREER PATH IN AVANZA SOLUTIONS ............................................................................................. 15 Performance Areas: ..................................................................................................................... 15 Career Path ................................................................................................................................. 16 Performance Management .......................................................................................................... 17 COMPENSATION & EMPLOYEE BENEFITS ......................................................................................... 18 Salary .......................................................................................................................................... 18 Payouts ....................................................................................................................................... 18 Increments .................................................................................................................................. 18 Reward & Recognition ................................................................................................................. 18 Provident Fund ............................................................................................................................ 19 Employee Old Age Benefit ........................................................................................................... 19 Car Entitlement ........................................................................................................................... 19 Car Maintenance ......................................................................................................................... 19 Fuel Entitlement .......................................................................................................................... 20 Group Life Coverage .................................................................................................................... 20 Cell Phone ................................................................................................................................... 20 Laptop ......................................................................................................................................... 20 Blackberry ................................................................................................................................... 20 Travel & Daily Allowance (TADA) ................................................................................................. 20 Office Meals ................................................................................................................................ 21 Travel Allowance ......................................................................................................................... 21 Health Care ................................................................................................................................. 21 i) Family Outpatient ................................................................................................................. 21 ii) Group Health Coverage ........................................................................................................ 21
HEALTH & SAFETY ............................................................................................................................ 22 a) Management Responsibilities ................................................................................................ 22 b) Team Lead Responsibilities .................................................................................................... 22 c) Staff Member Responsibilities.................................................................................................. 23 HEALTH COVERAGE POLICY ............................................................................................................. 24
LETTER OF AUTHORIZATION
20th- April, 2013
Dear Reader
As a student of IoBM, I have been authorized by our Human Resource Management course teacher Mr. Abdul Hameed Khan to submit a term assignment on the HR Policies Analysis of any reputed organization. I have chosen to write a report on Avanza Solutions. The efforts put in to collecting and analyzing the data will polish my analytical skills and also furnish my report writing ability which is an essential component of the corporate world.
Sincerely, Shazia Tabassum (2010-1-46- 11616) Saba Salahuddin (2011-1-07- 13153) Abdullah Choudary (2009-1-44- 10244)
LETTER OF TRANSMITTAL
April20, 2013
Abdul Hameed Khan Course Instructor Human Resource Management Institute of Business Management
Here is my term report of Human Resource Management course on Avanza Solutions. I have chosen the organization Avanza Solutions. I greatly benefited from this report as it helped widening my vision, improving my quality of work, building self-reliance and gave a vital experience in order to improve my research and analysis skills. I hope it is up to your expectations and fulfills all the requirements given by you.
Yours sincerely, Shazia Tabassum (2010-1-46- 11616) Saba Salahuddin (2011-1-07- 13153) Abdullah Choudary (2009-1-44- 10244)
The Government of Pakistan has been proactively developing the IT sector in Pakistan since the last few years. A few of the incentives offered include tax exemption till 2016, establishment of IT Parks with low rent, foreign ownership of equity invested in IT and 100% repatriation of profit allowed to IT companies.
Pakistans IT industry has been rising steadily since the last three years. A marked increase in software export figures are an indication of this booming industrys potential.
Percent growth in exports over the last one 61% year Number of IT graduates produced per year Approximately 20,000 Export targets for the current fiscal year US$ 162 million 2007-2008 Number of programs universities offering IT/CS 110
Number of IT professionals engaged in export-oriented activities (software More than 15,000 development/call centers etc.) Total number of IT professionals employed in 110,000
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Pakistan Total IT spending in the fiscal year 2005-2006 US$ 1.4 billion Total space utilized in IT & Software Eleven IT Parks covering an area of 750,000 sq ft Technology Parks
Pakistani IT Export
The State Bank of Pakistan in its statement for the year 2006-07 reports the export figures of software and IT-enabled services to be US$116 million which shows a consistent annual growth. State Bank of Pakistan adopted BPM 5 Reporting system to report the IT exports revenue, which restricted the export figures to US$116 million only in 2006-07. In India, the Reserve Bank of India follows the BPM 6 (also called MSITS) Reporting System, which raises its exports to billions of US dollars. BPM 6 includes sales to multinationals, earning of overseas offices & salaries of nonimmigrant overseas workers to export revenue. Using the MSITS Reporting System, Pakistan IT Industry exports are estimated at US$ 1.4billion while the industry size is estimated at US$ 2.8 billion. It is significant to note that Pakistan IT exports growth in each of the last few years has been more than 50%. State Bank Reporting Earnings US$ 116m Estimated Total IT Industry Export Revenue US$ 1.4b Estimated Total IT Industry Size US$ 2.8b
The World Trade Organization (WTO) lists Mode 3, revenue generated by commercial offices overseas, and Mode 4, compensation received by temporary workers who have travelled abroad, as export revenue streams which must be included in trade revenue calculation. There is also strong evidence to suggest that other countries, such as India, in fact employ global services export figures when reporting or estimating revenue. The following table describes the four WTO modes for export-in-services recognition. The need for the four-mode model arises because trade in services is much harder to monitor than trade in physical goods. Physical goods pass through air, sea or land ports, and are accompanied by detailed financial and other documentation. Services trade, on the other hand, can be transacted over the Internet, through post, or through travel of personnel, with revenue flowing into company or personal accounts, which can exist anywhere in the world.
suffers from a shortage of experienced people such as systems analysts and project managers, and attracting them is a key HR challenge .
He said that local universities are producing merely 50 percent workforce of the what market requires. Not only this, very few of these fresh graduates come with exceptional professional skills. P@SHA chief mentioned that top-notch universities including FAST, NUST, GIK and few others institutes produce excellent graduates but their share is very limited, just around 1,000 graduates an year or so. He urged that Pakistani IT universities should enhance their standards of the education as well as number of students to meet the growing demand of local and international market. The local software houses are once again making high success to obtain handsome businesses in developed countries, particularly in US and EU markets, nonetheless they keep their firm focus on local market, which is also witnessing significant expansion thanks to multinational and private sector entities of the country, he added. I hire 40 to 50 fresh IT graduates every year for different positions but this figure will increase in next couple of years, Kapadia said, who is also Managing Director of System Limited.i
In a nutshell
With the advent of a work situation where more and more companies are having to concede that their valued employees are leaving them, a new concept of career and human resource management is bound to emerge. The focus of this new paradigm should not only be to attract, motivate and retain key 'knowledge workers', but also on how to reinvent careers when the loyalty of the employees is to their 'brain ware' rather than to the organization. With lifetime employment in one company not on the agenda of most employees, jobs will become short term. Today's high-tech employees desire a continuous up-gradation of skills, and want work to be exciting and entertaining, a trend that requires designing work systems that fulfil such expectations. As employees gain greater expertise and control over their careers, they would reinvest their gain back into their work. HR practitioners must also play a proactive role in software industry. As business partners, they need to be aware of business strategies, and the opportunities and threats facing the organization. As strategists, HR professionals require to achieve integration and fit to an organization's business strategy. As interventionists, they need to adopt an all-embracing approach to understanding organizational issues, and their effect on people. Finally, as innovators, they should introduce new processes and procedures, which they believe will increase organizational effectiveness.
COMPANY INTRODUCTION
Company
We are a software solutions and service provider company with an employee base of around 250 and a clientele of 150 plus spread across four continents. We provide specialized IT products, solutions and services to financial institutions, mid-large corporations and government organizations.
Vision Statement
To be recognized and respected as the best in class Software and Services Corporation an organization built on core values of integrity, professionalism and excellence.
Mission Statement
To be the premier provider of technology based business solutions in our key focus areas of ebanking, ebusiness and professional enterprise services To continuously innovate solutions, processes and strategy to keep pace with changing marketplace dynamics To create powerful partnerships and alliances to deliver best of breed solutions to customers
Corporate Values
Business Philosophy
Our business philosophy is based on the importance of relationships and a relentless search for greater accomplishments. At Avanza, we never lose sight of our commitment to fulfilling the needs of each client, building a long-term, mutually beneficial relationship on that foundation. We have adopted state-of-the-art tools, technologies and methodologies to provide hi-tech and high quality
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solutions for our clients. We can advise and explore new and exciting possibilities for our customers that can help them in optimize their investments and achieve the bottom line: RESULTS!
History
Avanza Solutions foundation in 2000 provides an answer to the aim of building a net of both business development and software production multi centers. "Onsite-offshore model enables the presence of a consultancy team at the client's house, as well as production from remote centers. Business development centers are inaugurated in New York, New Jersey and Madrid, and a first production center was launched in Karachi. In 2003 Avanza has started its operation in Middle East. In this short span Avanza Solutions was able to cater its valued customer in 4 continents i.e. Asia, Europe, North America and Africa.
Global Operations
Human Resource
The Human Resource department at Avanza Solutions is focused towards becoming a strategic partner in attaining organizational objectives by providing value added services to its staff members and developing them to meet future operational challenges.
i) HR Vision To attain Employer of Choice by developing true human capital and providing opportunities for growth, well being and enrichment
ii) HR Mission To establish the organizational climate in which people have the competency and commitment to serve the internal and external customers with complete satisfaction, thus leading to an empowered, responsive and competent organization.
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Career Management
People
Profit
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HR Area of Practice
Staffing/Recruiting Effective career management helps ensuring the continuous provision of different levels of staff required by the organization in order for the organization to achieve its goals. Recruiting of new employees may be easier if prospective employees are made aware of the fact that the organization has an effective career management system whereby employees are developed and provides career opportunities. Succession planning Effective career management will ensure that employees can perform effectively in the positions which they have been promoted to. Staff turnover An effective career management system will contribute to the lowering of staff turnover by ensuring that employees are made aware of career opportunities within the organization. Staff motivation Because progression along the career path is directly related to job performance, an employee is likely to be motivated to perform at peak levels so that career goals may be accomplished. (Grobler, P. Et all. 2006) Employment equity An effective career management system will have to be in line with the Employment Equity Act and also with the organizations BBBEE strategy. This would result in enhancing the career mobility of the historical disadvantaged. Performance Management An effective career management system will work in tandem with a well-developed performance management system whereby gaps in employee performance can be identified by the manager and / or supervisor. These can then be addressed by specific T&D activities which will positively affect the employees career development.
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RECRUITMENT
Equal Opportunity Employment
It is the policy of Avanza Solutions that employee recruitment, appointment, assignment, training, compensation and promotion shall occur on the basis of merit and without regard to race, gender, religion, color, ethnicity, origin, age, political affiliation, or disability. Ensuring equal employment opportunity is the responsibility of all managers, supervisors and employees. Equal employment opportunity means providing a workplace where decisions are made solely on individual performance and ability. It is our policy to select the best-qualified person for each position in the organization. This policy applies for all positions including permanent, contract or temporary staff.
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Identification
In order for you to be recognized as a staff of Avanza Solutions and for others to associate with you, an Identity card will be issued to you within a few days time. You are required to wear your ID card in plain view at all times during office hours. In the event your ID card is lost or stolen, you must notify the HR department immediately to arrange for a replacement card. Upon termination of your employment, you must return the ID card to the Human Resource department.
Job Announcements
At Avanza, we make every effort to fill open positions from within the organization. Announcements for open positions will be made by Human Resources Department via regular bulletins as and when they become available. These announcements will contain the required eligibility criteria, qualification, experience, position level and related information. However, the decision to consider the candidate for this position will be solely with the management. In the event a suitable candidate is not available from within the company, Management may consider filling the open position by hiring from
Probation
All persons newly hired or re-hired will be put on probation for a period of three months and will be reviewed upon completion of this period or before if required. This period may be extended upon Department Head recommendation if additional time is required for further assessment of employees performance. The probationary period gives both the Company and the employee time to assess their new relationship and performance. Upon successful completion of the probationary period, your employment will be confirmed as a permanent member of Avanza staff and you will enjoy all benefits as a regular permanent staff member. In the event of unsatisfactory performance or conduct during the probation period, your services may be terminated by giving one days notice. Similarly, you may also choose to terminate the relationship by giving one days notice.
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Performance Areas:
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Career Path
Management Level 9 8 7 6 5 4 3 2 1 Functional Grade
9c 9b 9a 8c 8b 8a 7c 7b 7a 6c 6b 6a 5c 5b 5a 4c 4b 4a 3c 3b 3a 2c 2b 2a 1c 1b 1a
Competency Level
Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry Expanded Target Entry
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Performance Management
Performance Management is a system to record and review employee overall conduct and performance on the job consistently. It is used to help develop a channel of communication between employee and the management regarding current job performance and to help set expectations for future. The performance appraisal process is also used to identify areas of personal and technical development in employee and to provide supporting information for decisions related to salary increments, promotions, variable pay, commission and transfers on periodic basis.
Performance Rating Definition 5 = Outstanding Conduct and Performance far exceeds expectations. Exceptionally high quality of work performed in all essential areas of responsibility. Quality of work is superior and supports department and organizational objectives on a consistent basis Conduct and Performance consistently exceeds expectations in all essential areas of responsibility and the quality of work is overall excellent. All annual goals were met. Conduct and Performance fully meets expectations in essential areas of responsibility, at times possibly exceeding expectations, the quality of work overall is good. Meets critical annual goals. Conduct and Performance does not consistently meet expectations. Conduct and Performance is significantly below expectations.
4 = Above Expectations
3 = Meets Expectations
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Salary
Salary scale is established for each level of job within the organization and is controlled by Human Resource department. These salary ranges are internally equitable in relation to each other and are also externally competitive. All compensation and benefits related information including salary, bonus and other payments are strictly confidential and must not be shared with anyone within or outside the company. Non compliance with the confidentiality clause may result in stern action including penalties or warnings leading to termination of service.
Payouts
All permanent / contract / temporary staff members will be paid salary / fee / stipend / on monthly basis as per the agreed terms. The salary / fee / stipend paid to staff members will be subject to income tax deduction as per applicable regulations and will accrue on the basis of actual number of days worked in a month. Salary will be credited to the company recommended bank / branch on or about the 5th day of the month. All reimbursement claims of previous month are to be submitted by 5th of every month to be credited or paid by 20th of the same month.
Increments
Salaries are normally reviewed on an annual basis and are effective from January 1st of each year. Salary increments are made on the basis of employee conduct and performance during the year. Employees who have served 3 months or more will be considered for salary reviews at the time of Performance Appraisal. Salary increase will be calculated on pro-rated basis for those employees who are eligible but have not completed a full year of service.
awarded solely at Management discretion from time to time, based purely on individual an d company performance and maintaining an active employment status at the time of disbursement.
Provident Fund
All permanent staff members upon confirmation of employment are entitled for Provident Fund. Company will start contributing 10% of the staff me mbers Basic Salary Employee i.e. 2/3 Gross Salary (Basic, House Rent & Utilities) in the Provident Fund Trust Account every month until the day employee retires or submits a resignation for early separation. Similarly the staff member will also contribute the same ratio of their monthly Gross Salary in this Trust Account on monthly basis. The total contribution amount accumulated from both the company and the staff member will be paid back to the staff member upon retirement or separation from the company after deducting any outstanding dues/loans. The Provident Fund is managed by a board of trustees appointed from within the management. The board is responsible for decisions pertaining to investment of Provident Fund. Provident Fund contribution will not be applicable during notice period.
Car Entitlement
Staff members entitled for a company maintained car or equivalent car allowance (whichever is applicable as per prevailing company policy/practice) will be eligible for the same from the date of joining as per company policy and management level. In case of company maintained car not being available for immediate delivery, staff member will be compensated as per the defined Car Allowance applicable at their management level as per company policy which will continue to be credited along with their monthly salary until car is provided. Car allowance will discontinue from the day a car is handed over to the staff member. Please note Car Allowance paid along with monthly salary will be subject to tax as per applicable regulations. All types of taxes, insurance premiums and regular maintenance of the vehicle are included in Car Allowance.
Car Maintenance
Staff members entitled for company maintained car will be eligible to claim reasonable reimbursement in lieu of car maintenance that covers routine car wash, oil change, tire puncture, battery, tune-up, brake, axle and electrical faults. Any other item that was not factory fitted from the manufacturer will not be subject to reimbursement.
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Fuel Entitlement
Staff members entitled for Fuel as per their functional grade may avail their monthly fuel limit from the date of joining. Staff up to Level 3 will be paid Conveyance Allowance along with their monthly salary. All other staff members will be issued a Corporate Fuel Card with limits as per their functional grade. In case Fuel Card is not issued due to whatever reason staff members may claim their monthly fuel entitlement through reimbursement by submitting original and legitimate receipts.
Cell Phone
All permanent staff members who are entitled for Cell Phone Allowance as per their functional grade may claim their entitlement limit upon submission of duly completed Reimbursement Claim Form (available at HRMS) by 5th of every month to be reimbursed within the same month. In case a post paid SIM is provided by the company to make official calls as per job requirement, staff member may avail the limit as per their management level entitlement. However any amount spent over and above the entitled limit that is not utilized for official purpose is subject to be paid back through cross cheque in favor of Avanza Solutions (Pvt.) Ltd.
Laptop
Staff members who are entitled for a company provided Laptop as per their functional grade or job requirement may be issued the same from the effective date. Maintenance and security of the Laptop will be responsibility of staff member. Any loss or damage incurred due to personal negligence is not covered through insurance and hence will be charged to the staff member.
Blackberry
Staff members who are entitled for a company provided Blackberry as per their functional grade or job requirement may avail this facility from the date of joining that will be provided to them by Admin Department upon submission of Joining Report to HR Department. Maintenance and security of the Blackberry will be responsibility of staff member. Any loss or damage incurred due to personal negligence is not covered through insurance and hence will be charged to the staff member.
client subject to submission of duly completed and approved Travel Requisition Form by the competent authority. In addition to this they will be entitled for TADA that will cover their daily meals, laundry, transportation and personal calls as per company policy.
Office Meals
Occasionally staff members may be required to stay beyond office hours in order to complete a pressing task to meet certain deadlines. In the event any staff member is Employee required to stay late in excess of 4 hours after the regular office timings or gazette holiday for official purpose, they will be entitled to claim Rs.150 for their meal through submission of meal claim form that is duly approved by their manager.
Travel Allowance
This is paid to staff members who are not entitled for company conveyance and are required to travel regularly for official purpose.
Health Care
Ensuring continued employee health is of major importance to the management of Avanza Solutions. The employee Out Patient and Hospitalization policies have been framed to ensure coverage to employees in the event of sickness or injury. i) Family Outpatient Out Patient facility is limited to staff and their immediate family only i.e. Self, Spouse, Children and Parents. All permanent staff members entitled for Family OPD (Outpatient) as per their functional grade may avail their annual OPD limit upon submission of a duly filled Reimbursement Claim Form (available with HR or Reception) along with original doctor consultation, medicine, test receipts of staff member / spouse / children / parents by the 5th of every month to be paid within the same month. Annual OPD Limit is entitled from the date of appointment; however may only be claimed upon successful confirmation of employment. Any un-availed balance will lapse at year end. ii) Group Health Coverage In order to provide better healthcare benefits to our staff members, all permanent employees along with their spouse and children upon confirmation of employment are entitled for the Group Health Coverage through the company selected service provider. It is recommended that all entitled staff members avail this benefit to secure themselves and their family members in case of any unforeseen emergency or health condition that may require additional financial assistance.
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a) Management Responsibilities
I. Maintain an effective program to ensure that all workplace hazards are systematically identified and appropriate measures introduced to control these hazards. Review and monitor the hazard management program to take account of changing conditions and circumstances within the workplace, and ensure appropriate records are kept. Ensure all staff members have the opportunity to participate in the development of health and safety practices, and that all relevant documentation relating to health and safety issues is made available. Ensure that all staff members and contractors are trained, supervised and provided with information to undertake their duties safely. Ensure all personal protective equipment needed to secure health and safety is provided to staff members and that they are adequately trained in its proper use, maintenance and storage. Encourage all staff members to set a high standard of health and safety management by personal example.
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iv) v)
Ensure a prompt response to any health and safety issues brought to their attention. Ensure that all accidents and incidents are investigated and reported promptly and accurately to the Health and Safety Unit. Ensure that health and safety objectives and responsibilities are included in individual role descriptions and are reviewed annually. Undertake training and / or instruction in health and safety related subjects to ensure they are competent to carry out their health and safety responsibilities.
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iii) iv)
v) vi)
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