Human Resources Management Report MBA-IV GROUP MEMBERS REGISTRATION # AMMARA MEHMOOD HAWA BI IBRAHIM MAYET KULSOOM ZAFER SHEBA TAHIR NADIA FARHEEN ANAM SUBMITTED TO: MISS. ABIDA SHAHEEN DATE OF SUBMISSION: 5 th of August, 2009Engro Vopak Terminal Limited Page 1
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handling etc. are described in detail. After the detailed description of Engro
Vopak’s HRM practices some recommendations are given to remove flaws
and for further improvement of Engro Vopak.
INTRODUCTION
1.1-Introduction:
Engro is a diversified business enterprise, comprising of 5 subsidiaries and a joint venture company. Its
business line includes chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial
automation, foods and power generation. Engro is currently serving customers in 17 countries globally
through 11 offices in 3 countries in Asia and North America. A national company with an international
reach, Engro is one of the largest and fastest growing companies in Pakistan today.
Vopak complies with the majority of the principles and best practices laid down in the Dutch Corporate
Governance Code (the ‘Code’). The number of exceptions to the best practice provisions in 2008
remained unchanged from 2007. The exceptions are explained below. For their stakeholders and in
accordance with prior recommendations of the Monitoring Committee Corporate Governance Code (the
‘Monitoring Committee’), we include transparent, specific and concise information on the various risks
and the manner in which the organization manages these risks in their external accountability and
reporting on risks and risk management. We have closely monitored the results of the consultative
sessions on the preparation and effectiveness of the General Meeting of Shareholders (the ‘General
Meeting’) recently initiated by the Monitoring Committee as well as the dialogue between the company
and its shareholders. We have taken notice of the revised Code as published by the MonitoringCommittee on December 10, 2008 and are reviewing what the implications will be for Vopak .
WORK PLACE
Engro values each employee, their input and views. Continuously striving to become employer of choice,
Engro provides a workplace where people feel confident, valued and inspired.
DIVISIONS:
Engro today stands recognized as a successful business operation and a role model for doing business in
With a history going back almost four centuries, Vopak is the world’s largest provider of conditioned
storage facilities for bulk liquids. Whether it’s liquid or gaseous chemicals, oil products, petrochemicals,
biofuels, vegetable oils or Liquefied Natural Gas (LNG) we offer complete storage and transshipment
solutions at 80 terminals in 32 countries, covering and connecting the world’s major shipping lanes.
Vopak offers more storage capacity than any other independent tank terminal operator in the world.
Vopak distinguishes itself by offering service solutions that address a single, but crucial part of the supply
chain and then take it one step further. When you choose to work with Vopak, their operational and safety
standards apply to every country and to every continent where we operate. That means we offer uniform
quality wherever you take your shipments, conditioning your products, keeping them safe, and keeping
them secure - from ship to shore and from shore to inland transportation.
Vision"To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all
stakeholders.”
Long-Term Commitment
The long term vision is to become a diversified chemical company operating internationally. To achieve
this aim we need the best people. We therefore aim to recruit high caliber people and give them the
opportunity to grow and to develop their talents. They look for long-term commitment on the part of both
Company and employee and have designed their systems to fulfill the Company's part of this promise.
1.3-VOPAK Strategy
On the basis of their mission of becoming the most admired independent storage terminal company a
strategy has been defined that rests on three pillars:
1. Growth leadership
• Optimizing and expanding existing terminals
• Developing terminals in new geographical areas
• mergers and acquisitions
• developing terminals for new products or markets, like LNG and biofuels
2. Customer leadership through recognized excellence in customer service at every site3. Operational efficiency leadership through continuously improving operational processes
The strategy is being implemented through special internal programs, known as strategic initiatives, and
excellence programs for improving existing operating processes.
The Finance and Accounting departments at Engro Vopak are responsible for the total financial
management of the business of the company. From the usual accounting statements and sheets to risk and
portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets
is properly documented and audited.
• Administration
Efficient management of all administrative affairs of Engro Vopak is the job of the Administration
department. From legal matters to general day-to-day operations of the office, the Administration
department ensures that all affairs run smoothly.
• Human Resource
The Human Resource department at Engro Vopak spearheads the recruitment process to ensurethat the finest human resource is taken on board at Engro Vopak. Resumes of candidates are carefully
filed and documented for current or future reference. The department, besides carrying out succession
planning, maintains and implements HR policies pertaining to employment, retention and superannuation.
Assessing training needs of employees and ensuring adequate training is also carried out by the
professional HR supervisors at Engro Vopak. The detailed analysis of the department and its functions are
discussed later in this document. Although Engro Vopak has owned the HR policies and System of its
own mother company i.e. Engro Chemical and they have no labor laws but they have new guide line of
following OHSAS which is
TERMINAL:
Technical work is supervised by terminal division. Since the core business of Engro Vopak is to provide
safe supply of chemicals to its clients therefore the terminal division withholds a major responsibility. It
ensures the security and safety at its all terminals.
PROJECTS AND BUSINESS DEVELOPMENT:
This division’s core responsibility is to develop and maintain business plan, design strategies for
business development, fill the tenders for new projects and identifying the needs for them,
dealing with existing clients and attracting new customers and improving the overall condition of
business.
HUMAN RESOURCE MANAGEMENT AT ENGRO VOPAK:
Engro Vopak is a small subsidiary company of Engro chemical, it has owned HR rules, polices and
cultures of Engro chemical because it is Mother Company and it has quite strong history. In Engro
Vopak, there are two people in the HR department, Mr. Tabish is the person, who is actually acting as HR
supervisor and the 2nd one is HR officer who is responsible for every thing and playing leading role
related to Engro Vopak human resource management (HRM).
There are around 90 employees are working in the Engro Vopak, and they are largely committed to their
organization and have shown progress in the company that is the reason during the year, in 2007, thevolume of the chemical handled by Engro Vopak (EVTL) is increased by 38% and revenue increased by
18%.
As employees are satisfied with HR department of Engro Vopak (EVTL), there are several functions are
performed by HR department which are mentioned below:
HR Planning
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Career Planning and Development
Health and Safety measures
Retention Of employees
2.1-Strategic Human Resource Management at Engro Vopak Humans are the basic tool for having competitive edge in the market for most of the organizations and
VOPAK is one of these. HR strategy refers to the specific human resource management course of actions
that a company pursues to achieve its objectives. But how these strategies & policies are formulated and
implemented at Engro Vopak. The basic policies of HR are designed at Engro chemicals and are followed
by Engro Vopak as well. Like most big organizations, this process is also done in accordance with
company’s mission. First, Strategic planners analyze what are the strengths, weaknesses, opportunities,
threats (SWOT analysis) of business and its market, what is the culture of the organization and on the
basis of all the above analysis, company’s strategic plan is established. In the end HR strategies are
formulated in accordance with this overall business’ strategic plans. Based on these HR strategies, HR
policies and practices are also formed and implemented. Any abrupt change in the market requires theorganization to follow this analysis in order to be successful. But since Vopak is the pioneer of this
market therefore it is least affected by the disturbance in market.
2.2-ENGO VOPAK HR Policies:
• Vopak considers safe and healthy working conditions for its employees to be fundamental and a
• Vopak companies recruit, employ and promote employees on the sole basis of the qualifications
and abilities (including reputation and reliability). Vopak endeavors to enable each individual to
develop its talents in various ways (e.g. by offering training programs).
•
Vopak and its subsidiaries are committed to a work environment in which all individuals are treatedwith respect and dignity. Each individual has the right to work in a professional atmosphere that
promotes equal employment opportunities and prohibits discriminatory practices, including
harassment. Vopak expects that all relationships among persons in the workplace will be business-
like and free of bias, prejudice and harassment.
• It is the policy of Vopak to ensure equal employment opportunity without discrimination or
harassment on the basis of race, color, national origin, religion, sex (with or without sexual
conduct), age or any other characteristics protected by law. Vopak prohibits and will not tolerate
any such discrimination or harassment.
• It is the policy of Vopak and its subsidiaries to maintain a work environment at its terminals that is
safe for employees and conducive to attaining high work standards. This statement is to notify and
remind all employees and employees of contractors and other companies having access to a Vopak
terminal, that unauthorized possession or use of drugs, narcotics, intoxicating beverages, firearms
or weapons are not permitted on any Vopak terminal.
• Vopak is committed to conduct its operations in an environmentally sound and sustainable manner.
To achieve protection of the health and safety of employees, customers and the public, Vopak has
established procedures and compliance programs to ensure the minimum adverse impact on the
environment. Such procedures and programs are periodically being reviewed and appraised.
2.3- HR Officer and Its Role in Engro Vopak
Mrs. Mona is the person who has core responsibility regarding decision making, and setting overall
strategies for new hiring and existing employees, and even keeping effective check and balance of
overall performance of HR department including strategic human resource issues, possess
responsibility of all HR areas including forecasting the need of recruitment, selection of employees,
setting compensation pay rate according to tears in organization, and also involved and implementing
the health and benefits program, an even in promotion and many more etc.
Hr Supervisor and Its Role:
As Far as concerned to Mr. Tabish pursue the core responsibilities as HR supervisor;
He is involved in conducting Interview.
He is involved in preparing test and setting strategies to make it effective for management Staff
These are the characteristics and the abilities required from a person to work in that position such
as leadership and teamwork qualities or command over English.
Requisition Form
Mr. Tabish told us that when someone leaves the organization then usually need occur for hiring new
employees on the demand of that department, such positions can be fulfilled through external source or if
someone left from the top executive positions then it can be fulfilled through internal recruitment by
giving chance the potential executives employees which is observed by Compensation organization and
executive development committee COED to hire the employees in such department. It is a document inwhich just overview of required specification is mentioned like age of employees, Qualities required to
perform that job.
3.2-RECRUITMENT AND SELECTION PROCESS:
Engro Vopak Policies for Recruitment and Selection:
Policies for Recruitment and Selection as experienced at Engro Vopak are:
Recruitment Objectives
The policy is meant to ensure an effective and efficient method of recruitment and selection. It is aimed at
hiring without any discrimination based on race, color, sex, nationality, ancestry, religion or disability.
a) External Recruitment:
I. No candidate under the age of eighteen will be considered.
II. Human Resources will advise Department Heads on salary ranges to be offered to the applicant
keeping internal and external equity in perspective.
b) Internal Recruitment:
Internal candidates must be confirmed employees of Engro Vopak who have completed one year of
service. However exceptionally good candidates may be considered.
Selected candidates will join the new job/position after getting clearance from existing line manager.
General Conditions for Recruitment:
All recruitment will be done through the Human Resources Department in consultation with the Officers
The objective of orientation is to acquaint all new employees with the basic structured and rules of Engro
Vopak. A new employee is given general information which contain which contains Organizational
Charts and other information related to Engro Vopak.
Engro Vopak provides orientation at two levels (a) Generic or Organizational level orientation within one
to two days in HR-department. (b) Department level orientation within the first week of the
employeement.
Disclose Full Information
To disclose essential to employees, Engro Vopak has a publication policy, according to which report on
all Engro Vopak activities, booklets, news articles and news letters are published sound communication in
Engro Vopak also allows each employee to know exactly what is expected as far as her/his
responsibilities and organizational mission statement, and what is happening within each organizationalarea communication between management and employees, who deal with clients and organizational
process, is encouraged at Engro Vopak
Training and Development
The aim of training and development in Engro Vopak is to provide employees with the necessary
skills and knowledge to fulfill the organization’s corporate and business plan. All training
sessions are delivered in a highly participative style, introducing topics in a challenging and
thought- provoking way. At AVTL training is provided at two levels that is (a) organizational
and (b) operational level.
At Engro Vopak, training is need based and employees can fill a need and can give suggestions.
Employees are trained for Management Profession and Technician.
The Engro Vopak believes strongly that people grow and learn most effectively through
experience. Therefore, every opportunity is sought to try to develop an employee through work
related experience. Such development implies an expansion or stretching of abilities or aptitudes.
It has to be based on the knowledge, skills, and aspirations within oneself. This form of
development needs to be understood and actively supported by the employee and the supervisor.
Off the Job Training
To enhance work productivity, Engro Vopak continued with it’s off the job training programs to
develop the softer skills of its Management and Technician Employees. Specially designed
university- related programs from LUMS, PIMS and other training agencies; OCTRA, PSTD,
ACE Consultant and Winning Edge etc. Non-Management staff is only trained in-house
development centre.
Motivation
The HRM department of Engro Vopak motivates its employees by (a) Creating a friendly like
community, (b) providing interesting and rewarding jobs, (c) giving fair compensation and awards (d)
providing sports and recreational facilities like membership at Arabian sea country club, (e) sponsors
social events and outside activities (f) participating in different community welfare programs (g)
providing feedback and (h) providing training.
These motivating measures lead to better performance and productivity, enhancement in employee’s
skills, abilities and knowledge, reduction in turnover and encouragement of information sharing that is
high performance work system
Teamwork and Empowerment
Team work gives better results than that of individuals. At Engro Vopak makes remind with the habit of
out of the way thinking by assigning them motivational and recreational projects. Teams at Engro Vopak
(a) develop goals and plans, (b) enhance communication among members, (d) solve problems and make
decisions on a timely basis (e) successfully manage conflict, (f) clarify roles for team members, (g)
operate in productive manner, (h) exhibit effective team leadership and (j) provide developmentopportunities for team members. To empower employees. Engro Vopak uses self management work
2 Very Good Indicate performance that consistently meets
the requirement of the position, “very good”
indicates the is on track for advancement
10%
3 Good Indicate performance that requires
improvements (i.e. meet requirement without
initiative or advancement)
8%
4 Basic Performance to be improved ( hardly meet
requirement)
5%
Performance appraisal system of Engro Vopak links compensation to performance due to which
employees are motivated and committed. It also allows management to assess the performance of Engro
Vopak as a whole. It also identifies training needs and promotions and as a result employee’s skills and
knowledge is improved. It identifies employee’s weakness and strengths due to which employees
discover areas to improve and grow and ultimately improves productivity and Engro Vopak’s
performance. But the system lacks opinions of employees regarding their supervisor. This is the reason
that the employees at Engro Vopak are not entirely satisfied with the performance appraisal system.
Feedback:
Workers at Engro Vopak are informed of their performance and given the opportunity to express their
opinion over their own level of performance against each competence. This serves the following two
main purposes:
•It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist
that the reviewer is unaware of.
•By asking the worker what he sees to be his own strengths and development areas often help to reduce
negative responses and makes planning training needs/inputs activities easier if the person is able toexpress for himself the areas in which he feels he can improve.
The Engro Vopak structure is in three layers, comprising managers, officers and supervisors------in that
order starting from the bottom and working towards the top rung of the ladder.
The COED is responsible for promotion within the organization. Whenever a position is vacant and a
member of the organization is to be promoted, a member of COED brings his case to the COED meetingwhere it is thoroughly discussed. After the case is discussed a voting is carried out and it decides whether
to promote the person or not.
Supervisor 3-4 years
Officer According to the COED decision
Manager According to the COED decision
.
3.5-COMPENSATION AND BENEFITS:
Engro Vopak provides its employees with market competitive salaries, but through financial mean such as
intrinsic and extrinsic rewards and retains employees which are reviewed at frequent intervals. The
Company's Total Remuneration package is competitively aligned to the best in the industry and isappropriately balanced between providing cash compensation and benefits, including, medical and
retirement benefits. The annual salary rewards are linked to employee performance. An Employee Share
Option Scheme operated by the Employees Trust offers new employees the opportunity to acquire
ownership in the Company.
This compensation system of Engro Vopak ensures that salaries are competitive and equitable which
attracts and retain the services of competent qualified employees, providing fair and equitable
compensation, motivates employees, improves employee’s commitment and increase labor productivity
and performance.
Salary policy:
The company will pay salaries of the employees as fallows
• All new employees have to open bank accounts in specified banks prescribed by the company so that
their salary will be credited at the end of each month.
• After opening account with the bank employees should forward his account number to HR.
To establish core competencies and to bring competitiveness, ENGRO VOPAK should
implement numerous effective plans to improve the performance of its various departments.Supervisors must manage employee performance well in order for ENGRO VOPAK to
accomplish its mission and achieve its goals.
Following are some recommendations for ENGRO VOPAK, which we personally feel can be
useful for the organization, its employees and the customers.
Effective Performance Management
Performance management is one of the most important parts of a Supervisor’s or team leader’s
job. Developing skills in performance Management is wise investments that will help ENGRO
VOPAK to achieve its Goals. Managing employee performance includes:
1. Planning work and setting expectations.
2. Monitoring and measuring performance.
3. Developing the capacity to perform.
4. They should rate employee Performance on the basis of 360 degree because it has small
size so they can effectively do that.
They Should Do:
1. HR should develop there own policies in Engro Vopak instead of following mother
company policies i.e. Engro Chemical
2. It should be segregated from the supervision of Finance department and should work as
Separate HR department and so that they report directly to the top management instead
1. What are the criteria to evaluate the performance of employees in EFL? And what methods do you
use for it?
2. Could you please tell us about your MBO’s Programs?
3. Which type of problems do you face in performance appraisal and what do] you do to resolve
them?4. How do you provide promotion and on what basis?
COMPENSATION AND BENEFITS
1. How do u think employee safety and benefits are important to encourage the employees morale
and performance
2. Which type of compensation and benefits programs are offer to the employees in EFL?3. Is there any retirement benefit or some kind of provident fund benefit provided by organization to
employees?
HEALTH AND SAFTY PROGRAMS
1. What do you do for health’ safety and security for the employees in EFL?
MANAGEMENT AND CBA RELATIONSHIP
1. How is the relationship between management and at what extent it is effective for the
EFL?2. Could you please tell us about some key HR legislation? OR What are common hr laws that
are followed by organization like EEO?
3. Do Engro employees have freedom or empowerment in taking decisions and if so then to whatextent?
4. How do you see important to have diverse work force in organization?
3. Is competition creating opportunities for EFL and how?
4. What kind of career growth can one expect in EFL?5. What kind of work environment do you have in place?
6. Do you believe that Pakistani Universities are creating an effective talent pool and what isyour company’s strategy to attract and create the best talent in Pakistan?
7. Due to rough economic situation and soaring price rise how does your company deal with
keeping itself cost effective and attractive for job seekers?
8. How does Engro keep its graduates and faculty up to date with new trends?
9. While the dairy, chemical and fertilizer industry among others are facing competition’where do you see Engro overall in the next five years?
10. At what levels do you actively recruit professionals are required for the training?11. How do you see your strategic human resource role in organization and to what extent it would be
I certify that information contained in this application is true and complete. I understand that false information may begrounds for not hiring me or for immediate termination of employment at any point in the future if I am hired. I authorizethe verification of any or all information listed above.