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NISHAT GROUP Nishat is playing a significant role in the private sector by adding value to cotton and the cotton based economy, Nishat Group ranks among the top five business houses in Pakistan in terms of sales and assts Nishat has grown from a cotton export house into the premier business group of Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement, Banking and Power Generation. Today, Nishat is considered to be at par with multinationals operating locally in terms of its quality products and management skills . Annual turnover 17 billion Rupees 14 Billion from textiles Earn foreign exchange US $ 236 million Taxes and levi of 2,080 million Rupees annually NISHAT MILLS LIMITED Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern, which was converted into private Hazara University Haripur Campus
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NISHAT GROUP

Nishat is playing a significant role in the private sector by adding value to cotton and the

cotton based economy, Nishat Group ranks among the top five business houses in

Pakistan in terms of sales and assts

Nishat has grown from a cotton export house into the premier business group of

Pakistan with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement,

Banking and Power Generation. Today, Nishat is considered to be at par with

multinationals operating locally in terms of its quality products and management skills.

    •Annual turnover 17 billion Rupees

    •14 Billion from textiles

    •Earn foreign exchange US $ 236 million

    •Taxes and levi of 2,080 million Rupees annually

NISHAT MILLS LIMITED

Nishat Mills Limited, (NML), commenced business in 1951 as a partnership concern,

which was converted into private Limited company in 1959. In 1961, the company went

public and was listed on the Karachi Stock Exchange.

Flagship Company established in 1951

    •Most Modern, Biggest Composite unit of Pakistan

    •Professional and Client Oriented Marketing

    •Green Company

    •9000 Employees

    •ISO 9001 and IKO-TEX100 Certified

    •SA 8000 Certification currently in process.

NML started out as a weaving unit with 500 semi-automatic looms. Later on 10,000

spindles were added, laying the foundation of nation's biggest textile composite project.

NML today, has 177,000 spindles, 284 Sulzer shuttle-less looms and 244 TSUDAKOMA

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air jet looms. The company's production facilities comprise of spinning weaving,

processing, stitching and power generation.

All together NML has 17 Manufacturing units, each specializing in a specific product

rang. The spinning Division produces 120 Tons of yarn per day in a product range from

Ne 3 to Ne 120 using different cotton sources like Supima, Egyptian Giza and Australian.

Mission Statement

"To provide quality products to customers and explore new markets

to promote/expand sales of the company through good governance

and foster a sound and dynamic team, so as to achieve optimum

prices of products of the company for sustainable and equitable

growth and prosperity of the company."

Vision Statement

"To transform the company into a modern and dynamic yarn, cloth

and processed cloth and finished product manufacturing company

with highly professionals and fully equipped to play a meaningful

role on sustainable basis in the economy of Pakistan."

"To Transform the company into a modern and dynamic power

generating company with highly professionals and fully equipped to

play a meaningful role on sustainable basis in the economy of

Pakistan."

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Organizational Structure

Nishat Sectors

Textile-1Cement-2Banking-3

Power Generation-4

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NISHAT TEXTILES

Processing

An ISO 9001 certified unit, which is one of the largest and

most modern processing facilities of Pakistan. With an

array of custom-made machinery, it has the capacity to

produce 3 million meters of fabric /month. To ensure that

our customers get the very best we use more than 75% dyes

and chemicals that are of European origin. To maintain

quality and international standards, an on-line Quality

department has been setup. The QC department has the

backing of a fully equipped Laboratory, which scrutinizes

the fabric process flow at all levels.

Spinning  

NML spinning is operationally organized into eight

spinning units, each with a distinctive product range and

capacity to keep a check on the quality standards. Every

cone undergoes inspection before packing to ensure that

our buyer gets only the best out of the lot. 

Spinning production capacity for both Cotton and Blended

Yarns in 130 Tons / Day

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WeavingOperationally divided into:

NML Faisalabad:

Machinery: 188 Sulzer Ruti Looms Capacity:  Approximate 2.1 Million Meters per

Month.

This Unit has been producing top quality fabrics for export as well as for the

consumption of our own processing unit. Awarded with ISO-9002 Certification, the

facility is highly regarded for the production standards and quality controls.

NML Sheikhupura:

NML Sheikhupura is one of the most advanced units in the country equipped with state-

of-the-art machinery and it is also awarded with ISO 9002 Certification. Future

Programs for the Unit include the purchase of Jacquard Looms, which will add to the

variety of product range that Nishat is offering to its customers.

Stitching

With an array of 500 modern new generation machines, the

stitching department has an average capacity to process up

to 1.3 million meters of fabric per month. The product line

is customized to manufacture products of various styles and

sizes according to the requirements of our customers,

wholesalers, retailers and contract textile business.

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Introduction“The policies and practices involved in carrying out the “People”

or Human Resource aspects of a management position, including

recruiting, screening, training, rewarding, and appraising"

HUMAN RESOURCE department exist to help people and organizations reach their

goals. Along the way, they face many challenges arising from the demands of the

employees, the organization, and society. The domestic and international environments

are particularly turbulent because of the growing diversity of the workforce and the

globalization of businesses. Challenges also result from ever changing laws, especially

laws that address the need for equal employment opportunity. Within these constraints,

the human resource department must contribute to the organization's "bottom line" in

ways that are

both ethical and socially responsible.

Purpose

The purpose of human resource management is to improve the productive contribution of

people to the organization in ways that are strategically, ethically, and socially

responsible. This purpose guides the study and practice of HR management, which is also

commonly called personnel management. The study of HR management describes the

HR-related efforts of operating managers and shows how personnel professionals

contribute to those efforts.

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Objectives of HRM

Managers and HR departments achieve their purpose by meeting objectives. Objectives

are benchmarks against which actions are evaluated. Sometimes they are carefully

thought out and expressed in writing. More often objectives are not formally though out

and expressed in writing. More often objectives are not formally stated. Either way, they

guide Hr function in practice .

Organizational Objective

To recognize that HR management exists to contribute to organizational

effectiveness. Even when a formal HR department is created to help managers, the

managers remain responsible for employee performance. The HR department exists to

help managers achieve the objectives of the organization. HR management is not an end

in itself; it is only a means of assisting managers with their human resource issues. For

example, NISHAT HR department found that it could enhance it contribution to the

organization through sophisticated information systems that allowed the department to

cut #35 million a year from its budget. Simply stated, an HR department exists to serve

the rest of the organization.

Functional Objective

To maintain the department's contribution at a level appropriate to the

organization's needs. Resources are wasted when HR management is more or less

sophisticated than the organization demands. Realizing that the HR department had

grown too large, NISHAT changed its ratio of HR staff members to employees from 1

per 53 down to 1 per 75 without violating the company's long-standing "no-layoffs"

policy ."

Role of HR Department

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Human Resource department play a very important role in Nishat Mills LTD. New talent

has a thirst for opportunity and that they are seeking such jobs which enhance there

capabilities and to gain some experience. Due to these facts the HR department

Of Nishat is looking for these kinds of people who want to excel in life and are highly

motivated to achieve some goals. The HR department of Nishat is working day and night

to make this Organization a better organization by hiring people who are self motivated

and there main aim is to make the company more profitable.

JOBS OF HRM

Conducting job analysis

Planning needs and recruiting job candidates

Selecting job candidates

Orienting and training new employees

Appraising performance

HRM in Nishat Mills

• Employing over 9000 people.

• Lowest Employee Turnover.

• Seeks to fulfill the highest practical degree in

  administering its welfare and compensation program.

• Apprenticeship and other training schemes at all levels.

• To obtain, manage, develop, motivate and gain the

  commitment of company's key resource- the people

  who work in and for it.

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• To develop a positive corporate culture to promote

  commitment to excellence and quality through out

  the company.

• To identify training needs and provide required training

  to all categories of employees.

• To make best use of the skills and abilities of all those

  employed in the organization.

• To ensure that the company meets its social and legal

  responsibilities towards its employees, with particular

  regard to the conditions of employment, quality of

  working life provided for them and the need to

  promote environment, occupational health and safety.

• To ensure industrial peace and harmony through

  excellent employee relations to achieve optimum level of

  employee, productivity and to contribute towards

  company’s aimed quality standards.

Classification of HR Department in NISHAT

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Human ResourceDepartment

Recruitment& Selection

Retention& Motivation

Training & Development

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Responsibilities of HR Manager:

Following are the responsibilities of HR Manager in Nishat Mills-:

Recruitment And Selection

Policy Making

Retention Program

Improve Working Relation Of Employees

Competitive Advantages:

Nishat Mills has following competitive advantages over its competitors:

Strong Pay Structure

Retention Program

No Firing

After retirement contract basis job

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Recruitment Process

"The Process of seeking and attracting a pool of qualified applicants

from candidates for job vacancies can be selected."

Recruitment Policy

An organization's recruitment policy provides the framework for recruiting action and

reflects the organization's recruitment objectives. It details the overriding principles to be

followed by management in general and by HR manager in particular.

In Nishat Mills the recruitment process starts when a there is a vacancy and employee is

required. The job requirement is forwarded to the HR Department by the head of the

particular department. Hr department then use two approaches to hire the employee

internal recruitment and external recruitment.

Job Analysis“The procedure for determining the duties and skill

requirements of a job and the kind of person who should be

hired for it”

Nishat is one of the largest textile manufacturers in Pakistan having lots number of

different sectors o/departments working in it. It has many employees who are working on

different posts and are working hard according to their own capacity. Nishat Mills

conducted job analysis in order to hire new employees at every year.

This also enables management to have a better understanding of the jobs and duties being

performed at every level and also helps them in training the people who are freshly

recruited.

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In job analysis, firstly we specified two pillars which are

Job description

Job specification.

Uses of Job Analysis Information

The information collected during the process of job analysis is used by the company in

taking decisions regarding affairs like:

Recruitment & Selection decisions

Compensation

Performance Appraisal

Training

Methods of Collecting Job Analysis Information

There are two methods of collecting Job Analysis Information-: Interviews Observation

1-Internal Recruitment: Job Posting:

Advertising of job openings to current employees via bulletin boards,

newsletters, or personal letters. Filling a job opening from within the firm has the

advantages of stimulating preparation for possible transfer, or promotion and increasing

the general level of morale.

The first and foremost preference of Nishat Mills is to hire the employees through

internal recruitment and giving existing employees more chances to develop their career.

For this purpose Nishat Mills firstly use Internal Job Posting to fulfill the vacant seat.

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Replacement charts :

A visual representation of which employee will replace the existing incumbent in a

designated position when it becomes vacant. In Nishat Mills replacement charts are used

rarely.

2-External Recruitment

To search the employee to fulfill the vacant seat outside the organization is called

external recruitment. HR Department can use various approaches to locate and attract

external candidates like Government agencies, private employment agencies, recruiting

consultants, executive search firms, and educational institutions .

Nishat Mills run the external recruitment campaign itself and do not use the other sources

like agencies and search firms .

Sources used for external job recruitment

Following are the some sources of Job Recruitment in Nishat Mills :

By Newspapers

By Website

By Universities

1-Advertising:

Advertisements are placed in various newspapers. More information about the

company and job specification is included in the ad to present some self-screening. The

advertisement is placed in Jhang and Din.

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Nishat Mills use print media for advertisement because they think most of the people

don’t have knowledge about computer or internet and they can easily find job

advertisement in newspaper.

2-Casual Applications/Unsolicited Applications:

Unsolicited applications are also welcomed in Nishat Mills; they are not neglected

as whole. If candidate have excellent performances throughout his career he can be hired

or these applications can be used for future references.

University Recruitment:

Nishat Mills used the university recruitment only once in LUMS but the result was not

such a good and only one candidate was hired that time.

Equal Employment Opportunity (EEO):

Nishat Mills provides jobs on Equal employment opportunity as they do not make any

discrimination in job description .The Company provide Equal Employment Opportunity

is also mentioned in the job advertisement .

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Selection Process

Following steps are followed in the selection process

1-Reception of Applicant

2-Preliminary Interview

3-Application Form

4-Tests

5-Interview

6-Background

7-Preliminary screening by HR Department

8-Final selection by line managers

9-Medical Examination

10-Placement on the Job

1-Reception of Applicant:

The importance of giving the applicant a favorable impression at this stage cannot be

overemphasized. Rudeness, disinterest or discrimination at reception may cost the

organization a good applicant and foster negative attitudes about the company and its

products.

Nishat Mills give high importance to the first step in selection process which is reception

of applicants. The staff makes such a friendly environment at this stage that does not

make any negative thinking about the company even if the candidate is refused for further

processing. The usually use the indirect way to inform candidate about refusal.

2-Preliminary Interview:

In Nishat Mills preliminary or initial screening interview is used to check quickly on

language skills, qualifications, willingness to do shift work, union membership and the

like.

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In Nishat Mills preliminary interview is typically brief and centered on very specific job

requirement. However has carried out in a courteous, non-discriminatory and efficient

way.

3-Application Form :

After preliminary interview or initial screening Nishat mills receives the applications

from the candidates who have cleared the initial screening step. The application form of

candidate is a valuable tool in screening out unqualified applicants.

The HR Manager considers the qualification, experience and other job related data

provided in application form.

4-Test:

In Nishat mills test is used to access the match between application and the job

requirement.

The most used types of test in Nishat Mills are following

1-Aptitude Test

2-Intelligence Tests

3-Personality Tests

The most frequent method used to take the tests is computer based tests but written tests

are also taken rarely in Nishat Mills.

5 -Interview:

There are three types of interviews take by the Nishat Mills

Initial Interview:

The initial screening interview is taken by the HR Manager. The only purpose of

initial screening interview is to access the language skills, qualifications, willingness to

do shift work.

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Panel Interview:

In Nishat Mills the Panel interview is the next step for the candidates who have

successfully passed the tests. In Nishat Mills panel interview is taken by three managers

1-General Manager

2-HR Manager

3-Head of the Department

Unstructured Interview:

Nishat Mills do not use a predetermined outlines or questions to be asked from

candidate but the take the unstructured interview and interviewer can ask anything which

he thinks is necessary.

Criteria for Selecting Candidate in interview:

Following is the criteria for selecting candidates in Nishat Mills based on:

Communication Skills

Present Personality

Educational Background (etc.)

Skills And Competency

6-Background:

After interview the Nishat Mills HR Department staff checks the backgrounds of the

successful candidates through the references provided by them. The background is

investigated to ensure that candidate have a fair character and is not involve in any

criminal activity.

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7-Preliminary screening by HR Department:

HR Department completes all the works assigned to it and finally do a preliminary

screening. This screening is based on the overall results of the candidates. A list of

successful candidates is made and the maximum no of toppers are screened as per

required by the head of department. The list of selected candidates is than forwarded to

the particular Head of the Department.

8-Final selection by line manager:

The list of selected candidates by HR Manager of Nishat Mills is given to the Head of the

particular department and now Head of the department is the final authority to select the

candidate.

9-Medical Examination:

After the candidates have been selected by the head of department, medical examination

of the selected candidates is taken by Dr. of the Nishat Mills. This is a check to ensure

that employees do not have any contagious disease and to save other employees from this

disease.

10-Placement on the Job:

After passing each and every selection step Nishat Mills the successful candidates are

given the job letter which indicated their job title, work timing, starting date and salary

package .

Successive hurdles approach

The Nishat Mills use the successive hurdle approach in the selection process which

involves the screening out of candidates at each stage of the selection process

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Training and Development

Training

Training is an activity that results in learning .it seems important than to consider what

learning is and what trainers can do to positively influence it. There is considerable

disagreement over which theory best explains how learning occurs.

This is however consensus on the definition of learning and the goals of learning process

Methods of training

The Nishat Mills adopts many different training programs for enhancing the skills of its

employee. In Nishat Mills following methods are used for employee training

On job training

Off the job training

On Job Training:

Making teams of new employees with a few old specialized Employees.

Acquaintance with day to day procedures

Contribution to overall productivity.

Lower cost

Lower Time

Off Job Training

• In-house training ,done at least once a year

• Specialist trainers are hired

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• Provide a proper learning environment to the employees

For employee training and development to be successful, Nishat Mills do following

things:

They provide a well-crafted job description- it is the foundation upon which

employee training and development activities are built

Provide training required by employees to meet the basic competencies for the

job. This is usually the supervisor's responsibility

Develop a good understanding of the knowledge, skills, and abilities that the

organization will need in the future. What are the long-term goals of the

organization and what are the implications of these goals for employee

development? Share this knowledge with staff.

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?

Explain the employee development process and encourage staff to develop

individual development plans.

Support staff when they identify learning activities that make them an asset to the

organization both now and in the future.

In the development process Nishat aligns the interest and skills with the need of

organization. It means carrier must be managed strategically so the skills demanded by

the organization’s strategic business objectives are understood and a work force with the

matching profile of skills is developed.

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Retention and Motivation

Nishat Mills use retention process in which Nishat Mills wants to satisfy the individual

need of employees and to make the employees work with the organization. The company

use cash and non cash rewards to motivate its employees.

The company uses the following ways to retain the employ

Promotion

Promotion is direct shift only to the next level from the current grade, the

Employee’s performance is evaluated and if his performance is above average he is given

promotion.

In Nishat Two things are counted to give promotion

1-Experience

2-Performance

Increments

The company decides at the end of the financial year, according to its financial

condition, whether increments should be given or not. Once the increment is decided,

it is effective from January of each calendar year .

Free transport

Nishat Mills provide free transport to local employee and also to their children for

school.

Medical facility

Nishat Mills provide free medical facility to workers depending upon the

position/rank of the employee.

Free housing

They give the facility of free accommodation for all level of employees, again the

facility is provided according to the position.

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Performance Appraisal

“Performance appraisal concerned with determining how well

employees are doing, communicating that information to employees

and establishing a plan for performance improvement

The jobs are evaluated on yearly basis under superior evaluation method. The competent

employees are rewarded in shape of promotions, bonus, increments and annual holidays.

The results of an appraisal can be used to identify areas for further development of the

employee.

The method used to evaluate employee’s performance consists of 20-25 questions about

the behavior of the employee, and then on the basis of these answers personality of the

employee is judged.

There are two possible sources of errors of performance evaluation in Nishat

Halo EffectRecency effect

Retrenchment

The Nishat Mills always used to expand its business since its beginning and it has

never been into such a downsizing of its business which involves retrenchment of its

existing employees. Such special features differentiate Nishat Mills from its

competitors.

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Any “honesty test” you conduct or not?

Do you take written or computer based test?

How much importance you give to personality, IQ level and special ability?

Any medical examination of selected employees you conduct?

Who is the final authority to select an employee?

Do you use “performance appraisal” to evaluate performance of your employees?

Do you communicate performance appraisal directly to related employee?

How you motivate your employees?

What type of working environment you provide to your employees?

What is the preferred basis for promotion? (Experience, Age, Performance)

In which circumstances you prefer cash or non cash rewards for employees?

Any additional benefit such as pick & drop or medical facility you give?

Do you give any increment on yearly basis?

What are the rules and regulations for retirement?

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Questions asked from HR ManagerWhat is your recruitment policy?

What kind of source for advertisement you prefer?

Do you prefer internal or external recruitment for executive level job positions?

Do you use “job posting” why?

Do you advertise for job after vacancy or wait for a no of vacant positions and than hire the whole lot?

Do you outsource your recruitment process?

If yes, which company does u prefer?

Do you give jobs on EEO basis or not?

If yes, what type of policy you have?

Do you apply University recruitment? If yes, what result you face?

Which type of interview you conduct?

What is the percentage or importance of test and interview in your selection process?

What type of environment you provide to interview?

After interview which step you consider the most important to take?

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What is the union role in your organization?Do you prefer old employees to retain or prefer employees on the bad of performance?

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Any “honesty test” you conduct or not?

Do you take written or computer based test?

How much importance you give to personality, IQ level and special ability?

Any medical examination of selected employees you conduct?

Who is the final authority to select an employee?

Do you use “performance appraisal” to evaluate performance of your employees?

Do you communicate performance appraisal directly to related employee?

How you motivate your employees?

What type of working environment you provide to your employees?

What is the preferred basis for promotion? (Experience, Age, Performance)

In which circumstances you prefer cash or non cash rewards for employees?

Any additional benefit such as pick & drop or medical facility you give?

Do you give any increment on yearly basis?

What are the rules and regulations for retirement?

What is the union role in your organization?

Do you prefer old employees to retain or prefer employees on the bad of performance?

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stions Asked from employeeseQu

Do you think that companies apply EEO? Yes No

Were you satisfied with the company advertisement? Yes No

Were the best candidates attracted through advertisement? Yes No

Was initial screening through based on merit? Yes No

Was you selected by this organization directly or selected by another organization?

Directly By other organization

How many interviewers were present during interview? 1 2

More than 2

Do you think that your appearance has any impact on selection? Yes No

What type of working environment given to you by employer? Good Average

Bad

Any Motivation by employer? By Promotion By Bonus

By Increment

*This information is obtained only for academic purpose and will be kept confidential.

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What is the preferred factor for promotion? Age Experience

Performance

Performance Appraisal is communicated with employees? Yes No

The way in which performance appraisal is communicated ? Direct discussion Indirect

Any old age benefit given by organization? Yes No

Any unfair promotion in your organization? Yes No

Are you satisfied with your pay amount? Yes No

Are you satisfied with the facilities providing by organizations? (Medical, Allowances etc.)

Yes No

The position at which you are; you are promoted to this position? Internally Externally

Any predetermined rules and regulations for retirement were communicated with you?

Yes No

Are you informed about retirement before time? Yes No

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Emloyees Interview Result These Questions has been asked from 10 different

employeesDo you think that companies apply EEO?

Yes ( 10 ) No (0)

Were you satisfied with the company advertisement? Yes (8) No( 2)

Were the best candidates attracted through advertisement? Yes (6) No (4)

Was initial screening through based on merit? Yes (10) No (0)

Was you selected by this organization directly or selected by another organization? Directly(10) By other organization (0)

How many interviewers were present during interview? 1) 3 (2) 7 (

More than 2

Do you think that your appearance has any impact on selection? Yes (9) No (1)

What type of working environment given to you by employer? Good (10) Average

Bad

Any Motivation by employer?

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By Promotion (5) By Bonus

By Increment (4) All Of Above (1)

What is the preferred factor for promotion? Age Experience (5)

Performance (5)

Performance Appraisal is communicated with employees? Yes (8) No(2)

The way in which performance appraisal is communicated ? Direct discussion (0) Indirect (10)

Any old age benefit given by organization? Yes (10) No (0)

Any unfair promotion in your organization? Yes (2) No (8)

Are you satisfied with your pay amount? Yes (10) No (0)

Are you satisfied with the facilities provide by organizations? (Medical, Allowances etc.) Yes (10) No (0)

The position at which you are; you are promoted to this position? Internally (10) Externally (0)

Any predetermined rules and regulations for retirement were communicated with you? Yes (10) No (0)

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Are you informed about retirement before time? Yes (10) No (0)

Graphical Representation of Employee Interview Result

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Criticism

The HR Department of Nishat is very strong and the overall

performance of the Nishat HR Department is very good but some

weaknesses also lies which we have found while writing this

report .Nishat use the no firing concept for employees but they use

the training, demotion and job rotation of employees if their

performance is below average which is not in the favor of the

organization.

Other problem lies when company do not out source their external

recruitment process and do not give chance to specialized firms to

hire best employees while the banking sector of Nishat Group uses

only outsourcing in external recruitment process.

The Nishat Mills hire its old employees after their retirement which

is a hurdle in the development and progress of new

employees.Performance evaluation result is not directly discussed

with employees and an indirect way is choosen for this purpose due

to which gap is there between management and emloyees.

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Recommendations

In Order to solve the problem the company must fire those

employees who are giving continuous poor performance in spite of

job rotation and training. Company must use external recruitment

firms like Personnel consultancies, Management recruitment

consultants, and Executive search firms to hire the best employees

as these companies are the expertise. The Nishat Mills must not hire

the retired employees on contract and give more and more chances

to the new talent.

Nishat Mills needs to improve its advertisement campaign as the

results shows that the company advertisement process is not very

effective and the best candidates are not attracted. Company also

needs to motivate its employees in a better way like bonus,

commissions, promotions and increment at the same time.

The result of performance appraisal should be discussed directly

with the employees and should be kept up-to-date with their both

negative and positive aspects. This can be done by arranging

meetings etc.

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