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Project Report
Functions of Human Resource
Management
Company:
Naubahar Bottling Company (Pvt.) Ltd.
Gujranwala

Group Members
Saadullah BB17116
Awes BB17128
Waqar Ali BB17129
Tayyab Butt BB17146

Presented to:
Dr. Naveed Iqbal
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Contents
INTRODUCTION....................................................................................................................................... 3
Naubahar Bottling Company (NBC) ......................................................................................................... 4
Pvt. Ltd Gujranwala ................................................................................................................................... 4
Mission Statement ................................................................................................................................... 4
Organizational Hierarchy of (NBC) .......................................................................................................... 5
Departments in NBC................................................................................................................................... 6
Operating Department ............................................................................................................................... 6
Production Department ............................................................................................................................. 6
H.R Department ........................................................................................................................................ 6
Sales and Marketing Department .............................................................................................................. 6
Financial Department ................................................................................................................................ 6
Human Resource Department ................................................................................................................... 7
Structure of HR Department ..................................................................................................................... 7
Major Functions of HR Department ......................................................................................................... 7
Human Resource Planning ........................................................................................................................ 8
Recruitment ............................................................................................................................................... 9
Selection.................................................................................................................................................. 10
Training and Development ..................................................................................................................... 11
Performance Appraisal: .......................................................................................................................... 12
Compensation & Benefits: ...................................................................................................................... 12
Carrier Development ............................................................................................................................... 14
De-Recruitment ....................................................................................................................................... 14
Strengths of NBC ...................................................................................................................................... 15
Weaknesses of NBC .................................................................................................................................. 15
Conclusion ................................................................................................................................................. 15
Recommendations ..................................................................................................................................... 15
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INTRODUCTION
Pepsi is a carbonated soft drink manufactured by PepsiCo. The beverage was first made in the
1890s by pharmacist Caleb Bradham in New Bern, North Carolina. The product was trademarked
on June 16, 1903. There have been many Pepsi alternatives manufactured over the years since
1898. It was first introduced as "Brad's Drink" in New Bern, North Carolina in 1898 by Caleb
Bradham, who made it at his pharmacy where the drink was sold. It was later named Pepsi Cola,
possibly due to the digestive enzyme pepsin and kola nuts used in the recipe. Bradham wanted to
create a fountain drink that was delicious and would aid in digestion and boost energy.

Pepsi Logos

PEPSI IN PAKISTAN
Pepsi cola is also very popular in Pakistan that’s why its market share is about 63% in the soft-
drink market. PepsiCo a remarkable name in the cola manufacturing industry is doing its business
in Pakistan through franchising. Pepsi has developed franchises in different cities of Pakistan.

Franchises of PEPSI in Pakistan

Karachi Lahore Faisalabad

Multan Sukkur Hyderabad
Gujranwala Peshawar Islamabad
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Naubahar Bottling Company (NBC)

Pvt. Ltd Gujranwala
Naubahar Bottling Co. (Pvt.) Ltd. is the largest manufacturer and distributor of Pepsi Cola soft
drinks in Pakistan. NBC was established in 1981 to produce and market Beverages of International
Standards. The company is involved in the business of syrup preparation, filling, packaging and
selling of PepsiCo carbonated soft drinks for the Gujranwala franchise in Pakistan, as more
precisely defined in Exclusive Bottling Agreements renewed from time to time. The main
objective of the company is to achieve excellence in the Beverage Industry through production
and distribution of quality products. The company manufactures its products according to Pepsi
Cola International (PCI) Quality Standards and requirements. At present, the company has five
production lines having more than 300 spouts with an average capacity of producing more than
300,000 cases daily on three-shift basis. NBC has employed over 2500 skilled and semi-skilled.
The company sells its product under Seven brand names, PEPSI COLA, MIRINDA ORANGE,
LEMON LIME, 7UP, Mountain Dew, 7UP Diet, Pepsi Diet. The franchise area consists of the
following districts:

 Gujranwala
 Gujrat
 Sialkot
 Sheikhupura

Mission Statement

“The mission is to achieve excellence in the Beverage Industry through production and distribution
of quality products, delivering ROI to all of its stakeholders and fulfill its responsibilities in the
community”.
Company will achieve its objectives through its commitment to the following four key
components.
 NBC's focus CPQ (Consumer Perception of Quality)
 Benchmarking
 Up-gradation of Quality Measurement System
 Sensory & Appearance Testing
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Organizational Hierarchy of (NBC)

Production Manager
GM
Quality Control
Technical
Manager
GM Sales & Marketing
Managing Director

Sales & Market Manager

Financce Manager
GM
Finance Accounts/Audit
Manager
Administeration
Manager
Legal
Manager

GM Maintenance
Operations Manager

HR Manager
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Departments in NBC
For effective control and to serve these areas more properly the company has the following
departments:

Operating Department
 Procurement Store
 Raw Material Purchase

Production Department
 Water Treatment
 Production of Beverage
 Bottling Process
 Quality Control

H.R Department
 Human Resource Planning
 Hiring and Firing of employees
 Employee Relations
 Record Keeping
 Employee Performance Improvement Plans
 Recruitment and Training
 Payroll and Benefits

Sales and Marketing Department

 This department makes different efforts to increase the sales of the company.

Financial Department
 It deals with the financial matters of the company.
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Human Resource Department

Almost three employees working under the Human Resource Manager but on the other hand 2500
employees working in PEPSI (Naubahar Bottling Company) also managed by the H.R department
with the coordination of the other departments.

Structure of HR Department

Major Functions of HR Department

The following are the functions performed by HR department:
 Human Resource Planning
 Recruitment
 Selection
 Training and Development
 Performance Management
 Compensation
 Carrier Development
 De-recruitment
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Human Resource Planning

Human Resource Planning peers the plans for the business as a whole. HRP focuses on questions
such as:
1. What do the proposed business strategies imply with respect to human resources?
2. What kinds of internal and external constraints we face?
3. What are the implications for staffing, compensations practices, training and development
and management succession?
4. What can be done in short run to prepare for long term strategies?
Although HRP means different things to different people, general agreement exists on its ultimate
objective-namely the most effective use of scarce talent in the interest of the worker and
organization. The objective of HRP is to ensure the best fit between employees and jobs while
avoiding manpower shortages or surpluses. The following are several specific interrelated
activities that together constitute an HRP System.
They include:
1. Analyzing Organizational Objectives
It gives the idea about the work to be done in the organization in order to achieve future objectives
in various fields such as production, marketing, finance, expansion and sales.

2. Inventory of Current Human Resources:

From the updated human resource information storage system, the current number of employees,
their capacity, performance and potential can be analyzed. To fill the various job requirements, the
internal sources (employees from within the organization) and external sources (candidates from
various placement agencies) can be projected.

3. Forecasting Demand and Supply of Human Resource:

The human resources required for different positions according to their job profile are to be
estimated. The available internal and external sources to fulfill those job requirements are also
measured. There should be proper matching of job description and job specification of a particular
work, and the profile of the applicant should be suitable to it .

4. Estimating Manpower Gaps:

Comparison of human resource demand and human resource supply will provide with the surplus
or shortage of human resource. Shortage represents the number of people to be employed, whereas
surplus represents the number of employees to be terminated. Extensive use of appropriate training
and development program can be done to improve the skills of employees.

5. Framing Action Plan:

The human resource plan depends on whether there is deficit or surplus of human resources in the
organization. Accordingly, the plan may be finalized either for new recruitment, training,
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interdepartmental transfer in case of deficit of termination, or voluntary retirement schemes and

redeployment in case of surplus.

6. Monitoring, Control and Reaction:

It involves implementation of the human resource action plan. Human resources are allocated
according to the requirements, and inventories are updated over the period. The plan is monitored
strictly for the identification of and removal of deficiencies. Comparison between the human
resource plan and its actual implementation is done to ensure the availability of the required
number of employees for various jobs.

Recruitment
NBC uses both Internal and External Recruitment. But priority is given to the internal recruitment
if the employee has the capabilities, required by the management for that post. In the internal
recruitment they ask for employee referrals. Any employee can refer any competent and potential
person for the internal recruitment and if the referred person comes up to their expectations and
hired then the one who referred is rewarded with a bonus. In external environment the company’s
corporate image matters a lot in a way that not only new candidates are attracted but also the people
who became a part of it in past.
A. Internal Recruitment:
NBC usually prefers “Job Posting” in which employees from within the organization are preferred
but if the organization feels that employee is not competent enough they go for external
recruitment.
The following methods are used for internal recruitment:
 Employees Referrals through employees of NBC
 Manager’s Recommendations
 Previous record of CVs
 Job posting through Notice Board

B. External Recruitment:
NBC usually prefers advertising through newspaper, social media and their official website for
their recruitment purposes. The give an open invitation to everyone to apply, so people who are
interested come and if they are capable they are hired. NBC does not prefer any specific
universities or colleges to get the required applicants, what matters are the potential talent and
caliber of the person and his commitment to work.
The following methods are used for external recruitment:
 Newspaper Ads
 Social Media
 Official Website
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Strategies for Recruitment

The recruitment process is likewise the same but minutely varies in the organization depending on
the job. In recruitment NBC keeps certain things in front e.g.
 Whether the person has the required qualifications and technical skills for the specific job.
 Whether the person is polished enough to adjust in their environment.
 What the person was getting (in terms of salary) prior to NBC’s Job.

Selection
In Naubahar Bottling Company (NBC), selection is based on numerous factors such as health,
background and previous experience of the candidate.
The selection process includes the following steps:
1. The Application:
The job application is candidate’s first chance to present his qualifications to the Organization. It
is extremely necessary for his/her participation in the examination process. Before beginning, one
has to review thoroughly what the Job Ad specifies as the requirements to be eligible for the job.
Candidate must meet the criteria to be considered for the job. Otherwise he/she will be wasting his
effort in completing the application process.

2. Written Exams:
Written exams are usually acquired from one of several testing firms available to them. These tests
are usually designed to determine the technical and analytical abilities of the candidates. The test
which is conducted in selection purpose is “TEST OF COGNITIVE ABLITIES”. This test is
mostly taken from fresh graduates and undergraduates. Whereas, some people are selected on the
basis of experience.

3. Performance Exams:
Performance exams test the ability of the candidates to accomplish specific job-related activities
by providing the opportunity to actually perform those activities. These tests are scheduled through
the HR Department office, with notification in writing of the date, time, location and duration of
the test. Instructions are given about the tasks to be completed and then candidates are asked to
complete them. Individuals with significant experience conduct the evaluations. The performance
of the candidates is evaluated on the basis of safety, quality of work, adaptability, performance
under stress, etc.

4. Specialized Testing:
Some job positions require specialized testing, such as technical skills, communication skills etc.
These tests are arranged just as like other tests.
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5. The Panel Interview:

The results of the exam process are used to prepare the list of passing candidates for panel
interview Normally the panel is comprised of three qualified persons, which may or may not be
employees of the City. They evaluate responses to a variety of job-related questions over the
scheduled time period.

6. The Selection Interview:

Once the List of Eligible Candidates is established it is sent to the department that is hiring to fill
a current vacancy. The Head of Department is responsible for setting up Selection Interviews. The
HOD may interview anyone on the list, since all selected candidates referred to the department are
qualified. The Department Head selects the candidate with the best qualifications for their
particular position. The selected candidate undergoes a medical examination, drug screen,
background investigation, and a probationary period before attaining permanent employment
status.
Selection Process

Resume Resume
Advertisement
Collection Assesment

Selection Exams Screening

Interview Hired

Training and Development

NBC has trained and developed many of its senior and fast track managers and supervisors. For
lower and technical staff, the organization has a complete training calendar for the year, if
organization feels that an employee requires training to update his knowledge about the job, he
just have to report the HR department and he will be listed for the next training session. As
compared to other competitive organizations the training program of NBC is quite different. It
provides full opportunity to its employees to develop themselves and also train them according to
the requirements of their jobs.
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 On-the-job Training:
In on the job training employees are trained to perform specific job related tasks with in the work
space and work environment. In this training an experienced worker passing down his skills to a
new employee. On the job training uses the work space, equipment, machines, documents and
skills necessary for an employee to perform his job effectively.

 Off-the-Job Training:
These are formal training opportunities that NBC offers to employees either internally or
externally. A trainer, facilitator and/or subject matter expert are brought into the organization to
provide the training sessions or an employee is being sent to one of these learning opportunities
during work time. These training opportunities are provided in the form of seminars, training
centers, classroom training courses and workshops.

Performance Appraisal:
The jobs are evaluated on quarterly basis by the head of the departments; the competent employees
are rewarded with financial (increments, bonus etc.) or non-financial (promotion, annual holidays
etc.) rewards. The results of an appraisal can be used for further development of an employee. The
organization uses different questionnaires, which consist of several questions about the behavior
of the employee and job, and then on the basis of these answers character of the employee is
judged. If the evaluation is unsatisfactory performers are given warning. The employee after
warning is put under observation, for some time and if the employees’ performance is still
unsatisfactory then he is demoted or fired.

Compensation & Benefits:

 Promotion:
Promotion is direct shift to the next level from the current level, the employee’s performance is
evaluated and if his performance is above average he is given promotion. NBC promotes only
those candidates who are experienced and eligible for that particular vacancy.

 Increment:
The NBC provides increment to employees at the end of the financial year according to its financial
condition.

 Free Transport:
NBC provide free transport to local employee.

 Medical Facility:
NBC provide free medical facility to workers depending upon the position/rank of the employee.

 Overtime Payment:
Overtime payment is for only those workers who are working more than their working hours.
Mostly overtime payment is given to low level staff.
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Factors Determining Compensation

In NBC compensation is determined on the following basis:

Fixed Pay (Salary)

Fixed pay or salary is given to employees based on their job and rank. The salary is increased at
the end of financial year.

Variable pay (Bonus)

The most common type of variable pay for performance is the bonus that is one-time reward that
is not added to employees’ base pay.

Skill based pay

A system that compensates employees on the basis of job-related skills and the knowledge that
they possess.

Seniority
The length of time that an employee has worked in various capacities with the firm.

Health and Safety of Employees

Health Hazards
1. Noise of plant may reduce listening power of employees.
2. Bad smell was coming from store due to leakage of bottles can affect smelling power of
employees.
3. Dirty washroom system may be harmful for health.
4. Temperature is not maintained. It means in winter temperature is very cool and in summer
very hot temperature for workers.
5. Water leakage from roof during rain and stand on floor may cause for disease.

Safety Hazards
1. A bottle may burst during filling gas and pieces of glass fly in environment that cause to
injure operators.
2. During process of filling bottle operator may injure.
3. During handling bottles worker may suffer injury.
4. There is possibility during washing bottle, water may harmful for hands.
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Measures
There are following measures taken by NBC for safety and health hazards
1. Recently they have purchased latest plant that is noise free.
2. They are training employees how to operate machines and equipment.
3. They have provided mask and long shoes to employees for safety purpose
4. They do not force employee to work over his health condition.
5. Annual 28 leaves are allowed to employees.
6. They have provided cafeteria facility.
7. They hired the doctor for first aid, treatment of employees and medical allowance also given
to employees.
8. The management also observes necessary precautions for the safety and health hazards.

Carrier Development
In NBC carrier development of an employee takes place through
Promotion of Employee in NBC:
 In NBC permanent employee is promoted after three years of his services in the company.
 If the permanent employee has intermediate qualification and during the job if he completes
his graduation, he is promoted.
Transfer of Employee in NBC
Transfer function in NBC is of two types:
 Transfer with NOC
 Transfer without NOC
Transfer with NOC
If an employee transfers from department to any other department NOC is necessary for transfer.
For example, an employee transfers from production to shipping NOC is necessary for transfer.
Transfer without NOC
An employee can transfer from sale department to sale department without NOC. For example, an
employee transfers from Gujranwala to Gujarat in sale department NOC is not necessary.

De-Recruitment
If the performance of employee is unsatisfactory, he is given warning. The employee after
warning is put under observation, for some period of time and if the employee’s performance is
still unsatisfied then he is demoted or fired.
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Strengths of NBC
 Company Image
 Low employee turnover rate
 Quality Conscious
 Large Market Share
 Sponsorship

Weaknesses of NBC
 Decline in taste
 Weak supply chain
 Low consumer knowledge
 Financial downfall

Conclusion
NBC is a well renowned company and it has maintained its position well by:
 Understanding the client psychology
 Ensuring quality
 Introducing ingenuity in products
 Enlarging its product base
 Keeping economic factors in view
 Intense advertisements

Recommendations
In PEPSI (NBC) Human Resource Department must expand the strength of its employees
 Consider current human resource standards & generate human resources inventory.
 Consider future human resources needs by the organization.
 To recognize development & training needs of employees.
 Formal training should be conducted with the planning/efforts of HR department.
 Perform all the functions of HR Department more efficiently and effectively.