HUMAN RESOURCES MANAGEMENT PRACTICES PREVAILING IN DESCON ENGINEERING COMPANY

Submitted To: PROF SAPNA SURI

Submitted By: SUNITA MISHRA ROLL NO-09024 MBA-HR

Padmashree Dr.D.Y.Patil University

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TABLE OF CONTENTS

SERIAL NO 1 2 3 4 5 6 7 8 9 10

CONTENTS EXCUTIVE SUMMARY INTRODUCTION OF DESCON ENGINEERING LTD HUMAN RESOURCE DEPARTMENT MANPOWER PLANNING & JOB ANALYZING RECRUITMENT & SELECTION TRAINING & DEVELOPMENT PERFORMANCE MANAGEMENT SYSTEM REWARDS & REMUNERATION MANAGEMENT INDUSTRY RELATIONS BIBLIOGRAPHY

PAGE NUMBERS 3 4-10 11-14 15-17 18-24 25-30 31-34 35-36 37-38 39

EXECUTIVE SUMMARY

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Descon is the one of the leading company in project based business to business market in Pakistan. This summary is all about the Human Resource Department of Descon Engineering Company. We will discuss about the introduction of Descon in first chapter. The second chapter will tell us about the structure of HR Department in Descon. The third chapter shows planning and job analyzing steps in the department. The fourth chapter will help us to know about selection and recruitment procedures. The fifth chapter is all about training and Development through implementation and evaluation. Sixth chapter will give a knowledge how Descon conduct its Performance Appraisal System. The seventh chapter defines the compensation management. And the last chapter explains how this department handles the disputes and procurement procedures.

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CHAPTER NO.1 INTRODUCTION History Over the last three decades Descon has evolved into a multi faceted Engineering and Manufacturing concern and has further spawned a group of ventures with a diverse activities portfolio: Project Management, EPC, Engineering, Manufacturing, Construction, Maintenance, software development, Mining, Chemicals and Trading, While the group companies operate independently under a corporate structure, Descon Engineering remains the flagship company and provides the associated identity to its affiliates. The company is unique in its resources base with in house capabilities for Design Engineering, Manufacturing, Construction and Maintenance Service. These are applicable to a wide variety of projects related to Industrial plants, Energy and Infrastructure development for which services are provided selectively or on turnkey/ EPC basis. Project management expertise vested through sophisticated IT based systems is one of the key elements in achieving successful culmination of projects. The companys operations span Pakistan, UAE, Saudi Arabia, Qatar, Oman, Egypt and Afghanistan. Joint venture partners and technology alliances include JGC Corporation Japan, Enerflex Presson, Canada and Eckrohr Kessel, German. The roster of clients and end users is replete with auspicious names such as Sabic, Aramco, Adnoc, Borouge, Gasco, Qatar Petroleum and WAPDA, NHA, OGDCL at home. All establishments are system oriented with ISO and OHSAS certifications and ASME stamps. HSE achievements are reflected in the statistics with over 350

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million man hours of work executed. Considerable investment is made in human recourses focusing on development. Descon is project oriented and client driven. Quality and HSE are taken as Value adders and the company culture encourages teamwork and innovation. With all these attributes and resources, the company is well placed to compete and succeed in the local as well as international contracting arena while being recognized as a quality service provider and manufacturer of capital equipment. The synergy between various business areas fuels strategic growth by providing cost effective solutions. Vision To become a world class engineering, manufacturing and construction company operating internationally.1 Mission "To provide the valued customers with cost effective and reliable solutions in project implementation and be recognized as the leading manufacturer of high quality equipment for plants." 2 Core Values The purpose of Descon is to bring prosperity and well being to the stake holders and society at large by adding value through engineering, technology and management.3 Integrity The integrity of Descon is realization of its corporate Social investment and to play a leading role within spheres of influence. The aim of the company to work for achieving world class standards of openness and transparency towards all of their stockholders and serves the communities. They want to
1 2

http://www.descon.com.pk/Company/visionAndMission.aspx http://www.descon.com.pk/Company/visionAndMission.aspx 3 http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

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become the knowledge-based corporation in the world, capable of sustainable economic growth and greater social cohesion.

Corporate Social Responsibility Descon Groups business activities are based on relationships with many stakeholders, including customers, shareholders and other investors, business partners and the community at large and employees. Descon believes that earning the trust of these stakeholders through fulfillment of its responsibilities as a good corporate citizen is a key element in enhancing management quality and corporate value.

While operating globally, they touch upon many people. They would set CSR Objectives in the annual plans to take a leadership position in this regard. They believe in transparency and giving access to the information to people about the life cycle of their products and services. The core issues in their CSR strategy are given below, Compliance to our core and operating value Sustainable Business Environment Corporate Governance Community philanthropy Contribution to educational programs Promoting multicultural workforce Gender Empowerment Protecting Human Rights Honesty and integrity in our policies. These strategies require commitment from top to bottom level of their employees relationships. Because they want to see a healthy and safe world and trying to achieve their goal by using best practices at their premises. The annul objectives for CSR focus on six areas; - Business Integrity, Environment, People, 6

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Community, Human Rights and Suppliers. These all areas are integrated into Descons core values. Business Operations Descons engineering know-how is vested in various business areas across the company. All engineering facilities are equipped with the current software packages in IT-based environments and specialize in niches relevant to the core activity of a Business Area. At the forefront is JGC Descon Limited (JDL), the joint venture company which acts as engineering wing with capabilities in basic and detailed engineering for plant design. For JGC Corporation, it is key offshore Satellite Engineering Center for engineering of major hydrocarbon energy projects in the region. To enable value-addition in the field of equipment supply, the Manufacturing Business Area in Pakistan has its own design group for engineering process plant equipment and coded items mainly in accordance with ASME codes Equipment-oriented engineering capability is also present at a greater scale in Descon, the joint venture company in Saudi Arabia. This operation also has extensive capabilities for electrical design to support its mechanical and electrical shops. The EPC Business Area is also evolving into an autonomous entity which has its own engineering expertise for undertaking projects on a turnkey basis. These range solution for existing plants to Greenfield facilities pertaining to process, utilities and offsite areas. The infrastructure projects Business Area has developed its own in house design group for projects related to water reservoirs and irrigation channels. Descon is the only Pakistani company which has the complete design and construction capability for large infrastructure projects.

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Functional Areas at Descon There are two Heads of departments in Descon. 1. Business Support Departments 2. Business Area

Business Support Departments These areas are helping and supporting the Business areas and the Operation level areas. The corporate level and administration of Descon are working in these departments. In these departments, there are main heads of Descon, Company Supervision Department (Admin) This department consists on executives who supervise the rules and regulations. Finance Department This department supports all financial issues, information, trend analysis, and make financial statements to for future decision making. Project Management System (PMS) This department provides all information and manages all projects in which Descons employees are working through a scientific system. This system tells what time they should complete the project, how to complete the project and all plans which can be useful to generate efficiency level at maximize position. Human Resource Department (HRD) This department handles the human power of the Company. Make policies and procedures and helps to achieve organizations goals by hiring competent workforce and retain through training and motivating.

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Proposals Department (Bid Creators) This department creates bids for making projects, plan how to start project, this department also conducting research and development and making strategies to maximize those areas of Pakistan in which they work. Marketing (B.D) This department shows off all competencies and strength through Integrated communication technology (ICT) and advertising in their websites, Expo Center, and Push strategies for Stake holders. Strategic Planning This department checks overall market structure and find out all those opportunities which can help out in order to survive in the market. Construction Management This department manages the project handling issues and areas in which they are constructing continuously and new as well. HSE (Health Safety and Environment) This department plays an important role for CSR and social marketing as well by strict policies to make the environment of Descon clean, safe and environment friendly. Business Areas These areas are working under Business Support Department. These areas are further divide in National areas (Pakistan) and International Business areas. National Areas There are regional and site branches in Pakistan. Karachi Lahore Islamabad 9

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International Areas These areas are representing Descon as Pakistans Dynamic Engineering Company in different countries of the world. These countries are; Qatar Kuwait United Arab Emirates (Humria) Saudi Arabia Oman

Areas of Specialization There are different areas of specialization which are following; Manufacturing Engineering Procurement and Construction (EPC) Plant Construction and Services Infrastructure Project

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CHAPTER NO.2 HUMAN RESOURCE DEPARTMENT Human Resource Management The ultimate success of any organization depends on its Human Resource. This makes Human resource a challenging and critical element for managers to control. Thus Human resource of Descon is not only a critical asset today but has become an important source of competitive advantage in dynamic industry of engineering and construction. With the help of HRD, Descons rating in Pakistan is No.1 in Engineering and Construction based industry. They are standing for many years and no one even touch to their rank because of competent and willing work force. Organogram of HRD

Units in HRD 11

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Human Resources Planning It is a starting point of human resource management. If an employee leaves the firm due to any reason, which may be deliberate resignation to move to another firm, or any other reason such as, retirement, termination or death, a vacancy is formed at the respective department of the Descon. The department, carefully analyzed in all its respects identifies this vacancy and the job description is forwarded to the Human Resource department. Job analysis It is the procedure for determining the duties and skill requirements of a job and the kind of person who should be hired for it. a) Job Description It is a list of jobs duties, responsibilities, reporting relationships, working conditions and supervisory responsibilities. Descon Engineering Company makes a job description before recruiting people. b) Job Specification A list of jobs human requirements that is, the requisite education, skills, personality, and so on. They also make job specification hire the right people at the right place. Recruitment and Selection Descon Engineering Co. Maintains a strict difference between external recruitment and internal recruitment. It has given different names to both these functions that are Resourcing refers to internal recruitment the Descon Engineering Co.i.e. they

try to attract candidates for vacant jobs from within the organization, and

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Recruitment only refers to external recruitment that is locating candidates

from outside the firm, which may include fresh graduates or people working in other firms. Training and Development The Company holds that orientation program is very necessary for the Company as well as for the new employee. The unit of Training and Development performs several important functions for the Company, like orientation training, performance appraisal and the general Training and Development. Broadly speaking, Descon Engineering Co. holds a strict distinction between training and development. Performance Management System Descon Engineering Co. gives the importance to their employees as well as their performance. There are certain standards that are set by the Company to check the performance of staff. They give the incentives and bounces on the base of check performance. Descon Engineering Co. follows all the international rules when done performance management. Rewards and Remuneration Management Descon Engineering Co. gives utmost importance to rewards and compensation packages because this is the most crucial factor for retaining key employees. ... The amount of bonus depends on the amount of profit Descon Engineering Co. World makes. The amount of bonus and increments depend on the profit of Descon Engineering Co. world, then Descon Engineering Co. Pakistan, then for each department and finally for each employee. The Gross salary includes a number of allowances.

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Industry Relation As one of the international Companies, Descon employees almost 35000 people, representing more than 5 nationalities. This diversity lies at the heart of their values and supports their growth because they are a Pakistani company and now spread in the Asian Market. There is cooperative environment and relation between lower and upper staff is good. Expenses incurred on professional medical consultation including periodic health check- ups and costs of any diagnostic tests.

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CHAPTER NO.3 MAN POWER PLANNING AND JOB ANALYZING This chapter tells us how Man Power Planning and Job Analysis are important to select a job and the need for hiring or training the employees in Descon Engineering Company. The Company allocates the budget through they are receiving from profit margin. The opportunities find out when they work on project, and if something is missing in their specialized field. The budget for new employees and training the employees should be allocated. Then, the jobs and work is defined and analysis the job and person who can be do that type of job excellently. Criteria for Human Resource Planning HRM Audit The HRM (Human Resource Management Audit) of Descon uses this framework to try to answer such questions as: Are the mission and strategy of the human resource organization designed to match the business strategy of the Descon Engineering Co.? Does the design of the human resource organization enhance its ability to accomplish its strategy? Are the kinds of people who run the human resource function good choices for the ongoing task? HR Policy and Manual HR policies vary considerably from one organization to another, depending on its size, the nature of the workforce and the position regarding union recognition, but here are the main policy areas of Descons which are recognize as HRD executives in the Business Support Areas.

Criteria for Job Analyzing

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Job analysis is the process of determining the nature or content of a job by collecting and organizing information relevant to the job. A complete job analysis contains information relating to the following factors which deemed appropriate to fully describe the nature of the job. These factor are considering while the job is analyze for new and old employees as well in Descon Engineering Company. Key Components of Human Resource Development There are three fundamental component areas of human resource development (HRD): 1) Individual Development (Personal) 2) Career Development (Professional) 3) Organizational Development The importance of each component will vary from organization to organization according to the complexity of the operation, the critically of human resources to organizational efficiency, and the organizations commitment to improved human resources.

Job Analysis Interview Guide Job analysis interview guide is a tool that can be used in conducting job analysis process. It describes list of questions that should be asked to explore the content of a particular job. What is the job overall purpose? What the inducement does and, if possible, how he/she does it? Writing Job Description Most widely used job description format contain the following five sections (1) job identification 16

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(2) job summary or purpose (3) job duties and responsibilities (4) accountabilities (5) job specifications The most important thing to remember is that all job descriptions within Descon Engineering should follow the same format.

Strategies for Designing and HRD Program HRD philosophy that states unequivocally that effective human resource development can improve performance (i.e. change behavior, produce results, increase productivity). This provides a framework for the HRD program. It also provides a common objective for each of the members of the HRD staff of Descon Co. on which to focus their efforts. Job Time Study Time study is a work measurement technique for recording the times of performing a certain specific job or its elements carried out under specified conditions, and for analyzing the data so as to obtain the time necessary for an operator to carry it out at a defined rate of performance

CHAPTER NO.4 17

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RECRUITMENT AND SELECTION Descon maintains a strict difference between external recruitment and internal recruitment. It has given different names to both these functions that is: Descon Engineering is a multi dimensional engineering, construction and manufacturing company operating in Pakistan and the Middle East. With over million man hours of construction work executed in industrial and infrastructure projects, Descon employs over 34000 professionals and other personnel. Resourcing refers to internal recruitment the Descon that is; they try to attract candidates for vacant jobs from within the organization. Recruitment only refers to external recruitment that is locating candidates from outside the firm, which may include fresh graduates of people working in other firms. However, it must be noted that Descon prefers resourcing to recruitment. The Resourcing Process The resourcing process at Descon is conducted in a well planned in an efficient manner. Resourcing process can be summarized as: Identification of Job Vacancy Job Description forwarded by respective departments Determination of Grade and Designation Job Posting Candidates contact HR Department

Steps in the Resourcing Process Now we will discuss all the steps involved in the resourcing process in turn.

1) Identification of Job Vacancy

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If an employee of the company leaves the firm due to any reason. This may be deliberate resignation to move to another firm. This may also any other reasons such as, retirement, termination or death, a vacancy is formed at the respective department of the company. The department, carefully analyzed in all its respects identifies this vacancy and the job description is forwarded to the workers of the human resource department. 2) Job Description Forwarded By Respective Department Then the department, in which the vacancy is created, sends a complete Job Analysis Information to the HR Department. Thus, the Department forwards a complete document to HR specialists so that they can analyze the job correctly and efficiently. 3) Determination of Grade and Designation When respective departments have identified the vacancy and the job description has been sent to HR Department, the HR Department decides on the grade and designation of the vacancy. 4) Job Posting This is the most common practice at Descon. Moreover; the reporting time is also specified within which the candidate should contact the HR Department.

5) Candidates contact HR Department After job has been posted, the candidates who are interested contact the HR Department via mail, telephone or face to face. The candidates will include People working within the same branch of Descon. People working in some other branch of Descon. 19

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Managements View on the Resourcing Process The management of Descon holds that resourcing or internal recruitment is better: Because people not only seek a job at Descon but also find a prolonged career in the company, basically it is Project Company. The Recruitment Process In Descon recruitment refers to external recruitment only that is people are hired from outside the firm. The recruitment process involves the following steps: Internal unavailability of appropriate personal Screening of Available Resumes

Sop for Clerical/ Labor Job Descon engineering is undertaking a major expansion in its capacity to provide comprehensive, multi discipline engineering services in petroleum oil and gas, power generation petrochemical and chemical industry sector for EPPC projects. It is project based organization. Descon is renowned of diverse offer of training and development measures. They provide state of art facilities to conduct internal or external training. These trainings covers development of fresh gradates, project managers, department heads, technical staff and potential leader. Criteria for Officers Job 1) In charge Quality Assurance & Quality Control B.E (Mechanical / Metallurgy) with minimum 08 years of experience in the field of QA/QC, with at least 03 years as Head of a QA/QC team. The candidate

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should ideally have experience related to plant construction & Maintenance in Oil & Gas, Fertilizers, Power Plants and Petrochemicals Sector. 2) Incharge Production B.E Mechanical/Metallurgy with 10 years of experience in fabrication of Steel Structure, Boilers, Heat Exchangers and process equipment etc. 3) Site Managers (Mechanical, E & I) B.E/ M.E (Mechanical, Electrical) with 15-20 years of relevant experience. Able to lead the multi-discipline project team and responsible for the overall management of the project site to which assigned such that the contractual requirements and obligations are fulfilled, in accordance with drawings and specifications and all is completed within in safety goals set for construction, within budget, and within schedule. 4) Construction Managers (Mechanical, E&I) B.E Mechanical/Electrical having more then 10-15 years of experience of filed construction in mechanical works with proven leadership & entrepreneurial skills. Motivate construction team, Ensuring cost effectiveness and work progress to deliver the output as per schedule, Ensure implementation of Descons integrated project management systems and related procedures at the site.

5) Incharge Planning and FEDC (Civil, Mechanical, E&I) B.E Civil/Mechanical/Electrical with 10-15 years working experience on large mechanical construction projects (Oil& Gas, Petrochemicals etc).

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6) Incharge Fabrication B.E. Mechanical with more than 10-15 Years Experience in Site Engineering Oil & gas field construction, refineries, and Storage terminals. Must have sound Knowledge in plant Storage Tank Fabrication and erection and piping works.

7) Incharge Stores MBA/ M.COM, or equivalent with 8 years experience. They have Knowledge on Tool, Plant, Consumables, material identification and handling. Familiar with ACCPAC / any computerized Inventory Control Software. 8) Incharge (E&P) B.E Mechanical having 5-7 years experience or DAE with 10-15 years experience in maintenance of hydraulic and pneumatic systems of heavy equipments. They should be able to lead a team of technical persons and having strong communication skills. Computer knowledge shall be preferred.

9) Incharge Commercial / Sub-Contracts B.E (Civil/Mechanical) 10 15 years of experience. They have experience in knowledge of FIDIC and other international forms of contracts.

10) Mechanical Engineer (Piping, Equipment, Structure) B.E Mechanical with more than 5 - 8 Years experience in Erection of piping, Hydro testing and commissioning in mechanical construction of plants.

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11) Engineer FEDC (Civil, Mechanical, Electrical) B.E Mechanical having 5-8 years of experience in field related engineering information (drawings, project documents) in oil and gas. Candidate should be able to ensure the correct estimation of BOQ and BOM from drawings and breakdown in to workable package as per WBS and OBS. Sound knowledge on P3, or equivalent.

12) Planning Engineer/Area Planner (Mechanical/Civil/E&I) B.E Mechanical/Civil/Electrical with 3-5 years working experience on large scale construction projects. Must be well versed with Primavera Project Planner, MS Office. Incumbent will be responsible for project process monitoring, implementing of planning & monitoring systems, analysis of weekly project performance report, assistance during project launching, resource estimation, budgeting and cost analysis of project activities. 13) Engineer Cost Control B.E Mechanical / Civil having 3-5 years of experience. Having Knowledge for monitoring financial health of the project as compared to approved budget. Prepares Quarterly Cost/Revenue forecasts.

14) Rigging Engineer B.E Mechanical/DAE Mechanical having 5-7 years experience. Must have knowledge of all crane operation related to rigging, heavy lifts.

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15) QA/QC Engineer / Inspector B.E / DAE Civil, having sound knowledge of related materials, specification and testing.

16) Material Engineer B.E / B.Sc Mechanical / Civil / Electrical with 10 years experience. They must have worked in same capacity in Mechanical construction Projects, Knowledge on materials identification and handling. Criteria for Executive Level Job The criteria for executive level job are usually done for companys most experience employees who are very competent and knowledge of companys departments and they have the ability to perform their job as executive. Descon Company prefers those employees who have ability to do that job. The employees knowledge status and experience is based to do that job. The Board of Directors selects the vertical promotion of employees who are eligible for that. If the votes are more than opposition, they select for those employees as executive level job for new or existing jobs. They give a chance of shareholders also who are capable to do that job.

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CHAPTER NO.5 TRAINING AND DEVELOPMENT The unit of Training and Development performs several important functions for the company, like orientation training, and the general Training and Development. Orientation Process and Induction of New Employees The Descon holds that orientation Program is very necessary for the old as well as for the new employee. The entire process of orientation is conducted at Descon as follows: 1) 2) 3) 4) Need determination for orientation program Designing of orientation program Implementation of orientation program Analysis of orientation programming And Development

Steps of Orientation Program Need determination for orientation program. When an employee joins Descon, the HR Department, the department in which the employee has been selected and the top management determines the need for the orientation program. If the candidate has been transferred from some other country to Descon Pakistan, it is very necessary to acquaint him to the culture of the country and the general business practices. He is of course, aware of the Descon engineering culture but he may be informed about the new department he has joined and about his new duties and authority. Designing of orientation program At Descon the orientation program is designed by Head of HR Department

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Training Specialists Immediate Supervisor Head of the Department in which the employee is selected

In designing the orientation program, the length of the program depends on the employee for whom the program is conducted. If the employee has joined Descon from some other country the program is very lengthy as he is not only to learn the culture of the organization but also the culture of the country as a whole. The program usually includes History, policies, practices, rules and regulations of the organization An overview of the department, the employee joints An introduction to the work environment, co-workers, superiors, and subordinates.

Hence, in this way the new employee is thoroughly acquainted with the Descon culture and thus can perform his job effectively. Implementation of orientation program at this step management simply implement the already design orientation program effectiveness. Analysis of Orientation Program The HR Department of Descon holds that the feedback on the success of orientation program is very necessary. The follow-up is conducted in the following manner: Discussion amongst Key Personnel A comprehensive discussion is conducted by the HR Department with the immediate supervisor and the Head of the Department of the employee to evaluate the prose and corns of the orientation Program. If he is comfortable with the Descon environment, the Program is a success or vice versa. 26

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Managements View on Orientation Process The management of Descon believes that orientation Program necessary because of socialization and knows how about companys policies and procedures. The purpose of this step is to introduce the new employee with the work unit, organization, peers. Tell them the rule and regulations of the company. In different companies different persons are responsible for this but when we talk about Descon manager gives orientation. Training Policy Basic purpose of training is to update the knowledge of employees and enhancing their skills. Today organizations want professional employees because they have come know the importance of employee thats reason organization call employees their most important assets. Due to which companies send their employees on different types of workshop, seminars and other educational programs. Even some companies provide opportunity of getting knowledge on the cost of company. Training Need Assessment The training program of Descon normally for the period of lesser then six months and its purpose is to investigate strength and weakness after that making effort to remove these weaknesses. They analyze that employee need training by self assessment, performance record, and questionnaire. The handouts which they provide to trainee develop by themselves not net based. All the cost incurred by the company let it be in-house training or training organized by the Descon Engineering Co. The employee normally needs training about his skill, knowledge and career development.

Training design

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After the need assessment process is complete, the designing process starts to train employees in systematic way. Setting objectives The objective of the program is described in which a statement is passed. In this statement, the goal of the training program is written that what thing they should achieve by conducting this program. So the statement should be specific. Developing lesson plan The statement is not enough, so the whole lesson plan is prepared in which each and every activity is written in this portion. Selecting trainer/leader The company select the trainer based on the training criteria, No. of employees and their skill enhancement. If the No. of employees are less or any specific criteria demands to train through the outside trainer, they outsource the training program. Preparing material The material is prepared by Trainer if the trainer is of the organization. Selecting program methods and techniques Descon mainly uses the following training and development methods are: In-Housetraining On-the-Job Training Program Conducted Abroad

In-House Training is the most common method used at Descon. Under this bank have two options;

On-the-Job Training:

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Descon give the training to their employees on the job by hiring a trainer from outside or from within the organization. But company selects the trainer very carefully and only professionals individuals in field. Training In Institutes Within The Country: If the trainees need training in a specific technical skill, which the company cannot provide economically, it sends the employee to institutes where they get the requited training. The trainee interacts with new people and can make contacts for the organization.

Training Program Conducted Abroad Employees are sending abroad for special training and development Program conducted by the Descon Group. This training Program may be conducted in other countries Dubai or anywhere else where the Descon exists. Scheduling the program The scheduling of the program is helping to conduct the program in right direction and the employees learn in training. Implementing the Program After designing the program, the implementation process is playing Back Bone. If all the process of designing is complete but the program doesnt held due to certain reasons, their will be loss of money, time and efficiency. So Descons HRD convincing their executives to implement the program according to training design will be benefit to the organization.

Criteria for training and Evaluation The criteria for training and evaluation is to help that how well the program will benefit to the organization in a whole. Descons criteria contain four parts;

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Select the Evaluation Criteria In this segment, the base for evaluation the training program set. If the base is accurate, so the true results will be found. Determine Evaluation Design The evaluation design helps employees to set accurate base in which the criteria is set. Conduct Evaluation of Program The program is conducting on the basis of setting evaluation criteria. These criteria may be through questionnaires, Examination Papers, presentations or observation. Interpreting Results The results of evaluation criteria helps the Descons Engineering Company that how well their training staff learn and enhance their abilities for future role. If one person get full fledge train in this specific area of training, it is possible that he may receive rewards like, increase in salary or Promotion. Because he is now the precious asset of the organization and everyone wants to retain his precious asset. Descon Training Institute (D.T.I) Descon Has Specific institute (D.T.I) in the employees and especially technical workers are trained and become companys dynamic asset. These institutes have capacity to train all types of technical works done in Pakistan and other places.

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CHAPTER NO.6 PERFORMANCE MANAGEMENT SYSTEM A performance management system is very important in order to check efficiencyand effectiveness of work. Actually it is the process of creating the work environment in which people are enabled to perform their best abilities. It starts from the necessity of the job and ends with the employee leave from the organization. This picture indicates that How Performance management system works to evaluate the job and after evaluation, the management decides what strategies in which they can grow by considering the approach of their work force and set standards on the basis of evaluation. These standards are in shape of rewards and sanctions. The rewards are in the shape of promotion; increase their pay or some non-monitory reward. Performance Appraisal System

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Performance Appraisal Process Descon Engineering Company uses HAY Methodology as a Performance Management System to check the performance of employees of the company. This method is used by most of the worlds largest companies. This method helps to evaluate the right people, right job and execution of companys strategies. A thorough Hay method is followed by Descon Engineering Company, which determines the performance appraisal for each employee. At the end of the year, the manager and the HR Department at Descon evaluate the performance of each employee formally. At some branches of the Company in
4

Pakistan,

management

checks

the

performance on monthly bases.

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Goal Setting The strategic planning of Descon is to match the employees goals with organization goals. Performance Evaluation Method Descon set the appraisal criteria according to the national and international laws because it is a Multinational process organization. consists of The evaluation various

techniques which are adopted according to the Hay Methods of evaluation. The main Hay Group methodology, Hay Group Guide Chart-Profile Method of Job EvaluationSM provides with a consistent and objective framework to:5

Analyze Organizational Structure The first step of performance appraisal method is to analyze the structure of the organization and then identify those ways which help to make it more effective. Descon Company is Project Base Company in which the structure of the companys work
5

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force is usually contract base. But the company is focusing their employees to train them and motivate them. This thing starts from assessing needs to the completion of those needs. The performance management system is one of the ending processes of the whole retention program.

Evaluation of the Jobs When the structure of the company is analyze by the HR Managers. They start to evaluate the people and jobs to match the right individuals to the right roles. Define Career Progressions The company defines career progression both from individual roles and across related job groups and interlinking organizational goals with personal goals. Reward Program After the Performance Appraisal Process, the company develops targeted pay and reward programs, using Hay Groups global compensation database, optimize the return on investment in people by paying in proportion to contribution. All of this ultimately leads to an increased ability to manage human resources more effectively. The reward program is held and employees take reward according to these levels:

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Level I.D. Form L1 High Performance Potential / High

L2 High Potential Performance

/ Medium

L3 Medium Potential / Medium Performance L4 Medium Performance L5 Low Performance Potential Potential / / Low Low

L6 Cruse Performance Feed Back The person who is conducting Hay method of performance appraisal is sharing information and getting feedback from employees who are checking their abilities of their work and experience and their feedback helps both parties to create good results. The discussion have three parts in which first prepare feedback discussion, second part conduct feed back from employee and last one conclude the discussion through analyzing the behavior of employees

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CHAPTER NO.7 REWARDS AND REMUNERATION MANAGEMENT Rewards and Remuneration Management plays very important role in the motivation of employees. Every organization gives the importance to these activities. Monitory Rewards Salaries Descon pay the salaries to their employees according to their ability, skills and their experience. Company also considered the national laws of every country in which it operates regarding to salaries such as minimum salary act.

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Designations Like all other organizations Descon also have specific grades and designations for their employees that show the status, power and responsibilities of job at work place. These grades start from G-1 to G-9. G-9 is a executive level grade that shows the high level power and responsibilities in organization and G-8 show less than as compare with G-9 and so on. The monitory rewards include so many things in which an employee can be motivated through different packages. These rewards are following; Salaries Gratuity Funds Profit Sharing Provident Funds Annuities Bonus

Non-Monitory Rewards Descon most gives utmost factor for importance retaining to key compensation packages because this is the crucial employees. The amount of bonus and increments depend on the profit so they gives gratuity for those projects in which the

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workers perform well and effects companys extra profit, then for each department. Stock Ownerships are given, as Performance Bonuses to retain. Allowances Descon Engineering Co. gives different to employees giving high performance and whom the Company wants

allowances to their employees in order to increase their performance and loyalty. There is different allowance that included in basic salary of employees. These are: House Rent Allowance at sites Medical Allowance Conveyance Allowance Insurance Facility Food allowance Annual Leaves Hardship Allowances Health and Safety Environment

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CHAPTER NO.8 INDUSTRY RELATION The field of industrial relations (also called labor relations) looks at the relationship between management and workers, particularly groups of workers represented by a union. Descon treats their employees as partner in delivering superior customer value.The Companys operations are project based and they work in different types of construction, maintenance and development businesses. Procurement for election of labor union The company has very good system of procurement of labor union. There are several types of Technical, Engineering, and Managerial employees working in Descon. When any project is start, the Human Resource Department check all those workers who can work on that specific project. If the members are not available, so they are checking those projects which are at completing stage. If any one is at competing stage, the HRD pull some work force from these areas and start new project. If the demand does not fill right now, they hire new workforce for starting the project. Dispute Settlements 39

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We now that in any organization, there are different dilemmas between employees. If there is any dispute regarding any issue, the HRD plays an important roll and settling disputes which are not settling by supervisor. The climate survey is held to check both parties and some times punish both parties for their bad work. Some time handling miscommunication through interfere all those parties which are involve.

Health and Safety Measures As we know, Descon is a Multinational organization so it follows all laws regarding to Health and Safety at work place. The Head Office of Company at Lahore is very clean, well arranged and cool in summer. Descon provides the following health and safety equipment at all their branches: First aid at work In case of any sudden accident Company has First aid at work place Emergency doors and Direction In case of any emergency Company has doors and clear direction toward these doors through arrow signs.

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Fire extinguishers In case of fire there is fire save equipment at Company.

BIBLIOGRAPY BOOKS: Human Resource and Personnel Management(3rd edition) by K Aswathappa

A text book of Human Resource Management by C.B.Mamoria, S.V.Gankar

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Personnel Management(6th edition) by Edwin B.Flippo

WEBLIOGRAPHY: www.google.com

www.citehr.com

www.descon.com

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