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Kultur Dokumente
KHANEWAL ROAD
MULTAN
FOREWORD
This report contains Compensation Management System of Pak Arab in detail
as far as we could find out. We personally visited Pak Arab, collected data
from internet and necessary documents provided to me by Pak Arab officials;
that heled me in completion of this report. The report starts with a slight
introduction to fertilizer industry and then Pak Arabs introduction is given,
highlighting its salient features, facilities, products and management.
Afterwards a comprehensive detail of Pak Arabs Compensation management
has given. The report concludes with my findings about Pak Arabs flaws and
some of my recommendations to eliminate these flaws. I dedicate this report
to my teacher Sir Fahad Labar who assisted me throughout the semester in
Compensation Management course, and my Group Fellows who were always
there to help me out in ups and downs.
TABLE OF CONTENTS
1. COMPANY INTRODUCTION:.........................................................................1
2. CORPORATE VALUES:.................................................................................3
3. COMPANY EMPLOYEES:...............................................................................4
4. NUMBER OF EMPLOYEES:...........................................................................4
5. TYPE OF EMPLOYEES:.................................................................................4
6. SELECTION CRITERIA:.................................................................................7
7. PAY PHILOSOPHY:........................................................................................7
8. COMPENSATION STRUCTURE:....................................................................8
9. BENEFITS OF EMPLOYEES:..........................................................................8
10.
PERFORMANCE EVALUATION:................................................................10
11.
12.
13.
1.
COMPANY INTRODUCTION:
SOP,
DAP,
CAN,
NP,
Urea Plant
Ammonia Plant
Nitro Phosphate Plant
Nitric Acid Pant
Calcium Ammonium Nitrate Plant
Power House
Along with the fertilizers plants, Pak Arab has its own Powerhouse, which has
the capacity to produce 27 Mega Watts (Turbo Generators of 9 MW each) of
electricity.
2.
CORPORATE VALUES:
3.
COMPANY EMPLOYEES:
4.
NUMBER OF EMPLOYEES:
o Executive Employees: 151
o Office Workers: 181
o Daily Wages Workers: 4140 (According to The Plant Requirements)
5.
TYPE OF EMPLOYEES:
The Board of Directors has appointed a full time managing director. The
Managing Director as Chief Executive of the company is responsible for the
efficient management and operation of the plants. There are four general
manager assisting MD. They are:
o
o
o
o
GM
GM
GM
GM
Finance
Manufacturing
Commercial
Audit
Under each general manager, there are two or three senior managers. Under
senior manager, there are manager then assistant managers and finally
supervisors. As our concern is with accounts department only, we will discuss
only the concerned department sketch.
The Managing Director, in accordance with the Memorandum and Articles of
Association, is the Chief Executive of the company and is answerable to the
Board of Directors. The company has two functional offices i.e. the corporate
office presently located at Lahore and manufacturing plant at Multan.
The organizational structure of corporate office is broadly designed into four
cells based on expertise and functions, namely the Personnel Group, headed
by Personnel Manager, the Finance Group, headed by General Manager
(Finance), the Planning Group, headed by General Manager (Planning), and
the Secretarial Group, headed by Secretary.
Besides evolving companys Management policies and procedures, the
function of the corporate office is also to render advisory services to the
Manufacturing plant. The Functional heads in the corporate office report to
Managing Director directly.
The board of directors has appointed a full time chairman and a managing
director, who is vested with adequate powers to manage the day to day
affairs of the company on sound commercial lines. The Managing Director as
Chief Executive is assisted by divisional heads i.e. General Manager (Mfg.),
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Manufacturing Division
Internal Audit Division
Finance Division
Corporate Affairs & Commercial Division (See organogram)
PLANT SITE
Khanewal Road, Multan
General Manager Manufacturing
Farrukh Iqbal Qureshi
Senior Production Manager
Mr. A. Majid Tariq (F.C.A)
Manager Training & Laboratory
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Company Secretary
Ausaf Ali Qureshi
Director Technical
Mr. Pervaiz Iqbal
Group Head of Human Resource
Mr. Haroon Waheed
6. SELECTION CRITERIA:
For hiring new employees, no informal method is practical here, personal
influence is more considered and when new ideas are required they hire
people from outside.
Selection criteria are developed from the knowledge, skills, and abilities
identified in the job analysis and stated in the job description.
To develop selection criteria, look at each of the knowledge, skills, and
abilities on the job description and define the standard for successful
performance of the related functions.
o
o
o
o
o
o
Values
Accountabilities
Key selection criteria
Qualifications
Skills
Experience
7. PAY PHILOSOPHY:
The philosophy behind Pak Arabs compensation program is to create a
compensation program that supports the companys mission and values. We
believe our compensation program is a management tool that when aligned
with an effective communication plan is designed to support, reinforce, and
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align our values, business strategy, operational & financial needs with a goal
of growth and profitability.
7.1. Competitive Set:
Pak Arab will benchmark the Multan metro area and target Fertilizer as our
industry and an organization size of FFCs and NFCs employees. We believe
that this definition of competitive set is most representative of our market.
7.2. Degree of Competitiveness:
Pak Arab will use the 50th percentile of base salary as the target for
employee base pay. Individual placement against that target will be based on
experience and performance.
7.3. Variable Pay Design: Pak Arab will use variable pay as a financial
incentive for rewarding individuals for individual and company goal
attainment based on the level within the organization.
Position Level
Individual Contributor
Supervisor or Manager
Director
Executive
8. COMPENSATION STRUCTURE:
Company says that the body also pays to employees as much satisfactory
salary, and they are allowed to have one leave if they wish, if worker do not
take leave it is accumulated in the leave bank.
Pay Ladder of Pak Arab:
Grade
Executive
Management
Officer
Daily Wages
Finance Division
70K 200K
40K 70K
20K 40K
Production Plant
70K 200K
40K 70K
20K 40K
360/Day 480/Day
9. BENEFITS OF EMPLOYEES:
Social Facilities
Workers are also provided with best
o
o
o
o
o
Medical facilities
Educational facilities
Recreational facilities
Communicational facilities
Housing facilities
10.
PERFORMANCE EVALUATION:
The rating scale for Performance Planning and Review is made up of five
factors: Poor, Needs Improvement, Meets Requirements, Exceeds
Requirements, and Outstanding. Any factor rated poor or needs
improvement MUST have performance comments. For any factor,
performance comments should support the rating given.
Poor:
Wastes supplies.
Needs Improvement:
Meets Requirements:
Turns off and secures all equipment at the end of the shift.
Exceeds Requirements:
Uses queries and reports to maximize efficiency in the office and find
errors.
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Outstanding:
11.
11.1. PROMOTIONS
For promotion employees have to want promotion is usually being the bases
of seniority and very good performance.
12.
12.1. TRAINING
Training is a very important point of the organization operations. Inside the
factory there is a technical training center for the workers to enhance their
abilities. It is modern computerized equipment to provide the best
knowledge with respect to the current requirements. Short training courses
are there. Job turnover is also there too more the personal more effective and
experienced. To broaden their views, if some specific training is required and
not possible here. Thus they send the workers on the behalf to foreign
technical Institutes. So therefore employees turnover is very low.
13.
To manage the work force is a crucial task in order to make the smooth
running of the business. Company said that their better management
departmentalization is necessary so that every department in charge can
hear a good control on the employees. All the general manager of
manufacturing.
In the factory 1500 permanent & 500 casual a daily labor is there. In order to
decrease the turnover of the labor they have provided the good working
conditions so that they can be satisfied with their work, so company has
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benefited them with many facilities. Which are enriching their physical
mental & psychological abilities.
o Pak Arab has excessive staff than required. Moreover, there is uneven
distribution at place where one man can do the job three people are
working there. And at some places a job of three persons is done by
one man. The uneven distribution results in de-motivation of the
employees and gradually his interest in his work decreases that effects
the efficiency. In order to Increase the efficiency of worker, job should
be assigned to its caliber to develop his interest in work that increase
the output and decrease the overall cost of organization.
o There are very few programs for career development of the employees.
People working in one section or department from years are still with
the same knowledge and style of doing job. There should be proper
career planning of employee that not only sharpens the skills of the
employee & improve the efficiency but also results in better and
improved output for the organization
o Too much centralization is there in the organization. Managers at low
level are not authorized to make decisions even about minor things,
they have to consult top management and give justification on small
matters. Involvement of top management and reaching at the final
decisions is time consuming and sometimes results in heavy losses.
Also man at low level with responsibility and no decision making power
gradually loses interest in his job and is de-motivated that effects his
performance. So there should be delegation of authority up to certain
extent that enables manager to take timely decisions at the spot with
confidence. When they take decisions they feel themselves more
involved and responsible for the job and in turn their efficiency
increases.
o There is no strict means to force employees to take safety measures
and show safety rules. Management should take necessary action in
implementing the safety rules in the organization.
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