Fauji Fertilizer Company Limited

Internship Report 2010
INTRODUCTION OF THE ORGANIZATION
FFC occupies a special niche in the industrial and agricultural

development of the country with a successful track record of excellence
business performance. The company moved from one high level of
achievement to other establishing records year after year and is now
ranked as a top tier player in the fertilizer industry with highest
production capacity and market participation.
During the year, FFC acquired 100% management control. Of PSFL, a

wholly owned subsidiary of NFC, through competitive bidding on
payment of RS.8.15 billion to the Privatization commission. With the
integration of PSFL, which now stands dissolved and merged with FFC
effective july1, 2002, pursuant to a scheme of amalgamation approved
by the Honorable High Court of Sindh, the production capacity of our
urea manufacturing facilities has more than tripled from 570 thousand
tones p.a. in 1982 to almost 2 million tones p.a. in this short span of
less than 25 years of existence. FFC now owns three mega plants
worth over 1 billion dollars in terms of replacement value, besides over
49% stake in FJFC.
2002 was a difficult year and business conditions were challenging
because of the economic fall out of the recent regional crisis. Uncertain
economic and weather conditions, high natural gas prices, global
product oversupply, falling international urea prices and weak domestic
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Department of management sciences

demand contributed to an extremely difficult operation environment

during the year which created a downward pressure on prices and
margins.
These adverse factors are continuing since past few years and have
created intense competition for the industry players; however, once
again our diversification has paid dividends and strategies
implemented over the years allowed the company to maintain solid
financial foundation throughout this prolonged downturn.
With a vision to acquire self - sufficiency in fertilizer production in the

country, FFC was incorporated in 1978 as a private limited company.
This was a joint venture between Fauji Foundation (a leading charitable
trust in Pakistan) and Haldor Topsoe A/S of Denmark.
The initial authorized capital of the company was 813.9 Million Rupees.
The present share capital of the company stands at Rs. 3.0 Billion.
Additionally, FFC has Rs. 1.0 Billion stakes in the subsidiary Fauji
Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company
Limited).
FFC commenced commercial production of urea in 1982 with annual
capacity of 570,000 metric tons.
Through De-Bottle Necking (DBN) program, the production capacity of
the existing plant increased to 695,000 metric tons per year. Production
capacity was enhanced by establishing a second plant in 1993 with
annual capacity of 635,000 metric tons of urea. FFC participated as
major shareholders in a new DAP/Urea manufacturing complex with
participation of major international/national institutions. The new
company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan
Fertilizer Company Limited) commenced commercial production with
effect from January 01, 2000. The facility is designed to produce
551,000 metric tons of urea and 445,500 metric tons of DAP. This
excellent performance was due to hard work and dedication of all
employees and the progressive approach and support from the top
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management. In the year 2002, FFC acquired ex Pak Saudi Fertilizers

Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki
from National Fertilizer Corporation (NFC) through privatization
process of the Government of Pakistan. This acquisition at Rs. 8,151
million represents one of the largest industrial sector transactions in
Pakistan
Recently Fauji Fertilizers Company offered the highest bid of Rs 8.151

billion for the Pak-Saudi Fertilizers Limited here on Saturday. Second
highest bidder was the Dawood Hercules that offered Rs 3.78 billion
while the lowest bid of Rs 3.602 billion was received from Engro
Chemicals. In simple words Fauji Fertilizers Company offered Rs 4.50
billion rupees more than
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Engro and Rs 4.371 billion more than Dawood Hercules in bidding for
Pak-Saudi Company. Sealed bids for the privatization of Pak-Saudi
Fertilizer Company were opened by journalists on the request of
Privatization Minister in the presence of bidders, senior government
officials and private sector representatives. Three companies, Fauji
Fertilizers, Engro Chemical and Dawood Hercules filed bids for the said
company. Fauji Fertilizers offered Rs 135.85 for each share of the Pak-
Saudi Company, Dawood Hercules offered Rs 70 per share, while
Engro Chemical offered Rs 66.70 for a share. Seeing a far high
difference in the price offered by Fauji Fertilizers, the other two bidders
did not take interest in contesting privatization of the said company and
wished a good luck for FFC.
NATURE OF THE BUSINES

The company is a public company incorporated in Pakistan under the
Companies Act, 1913, (now the Companies Ordinance, 1984 and its
shares are quoted on the stock exchanges in Pakistan. The principal
activity of the company is manufacturing, purchasing and marketing of
fertilizer, including investment in other fertilizer manufacturing
operations. Now FFC is proposed for steel sector also. FFC is in the
progress of setting up a Wind Power Project with an estimated
investment of US $ 130 Million at Jhimpir Distt. Thatta, Sindh with an
installed capacity of 50 Mega Watts for onward supply to national
Transmission & Dispatch Company (NTDC).
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PUPOSE OF THE STUDY

The main purpose of the study in hand is to gather relevant information
to compile internship report on Fauji Fertilizer Company Limited
To observe, analyze and interpret the relevant data competently and in
a useful manner.
To know how to practically work in an organization.
To develop interpersonal communication
Scope of Study
As an internee in FFC the main focus of my internship was on HR

Department. I included all the concerned sections in which I learned
how to make different types of reports and I was given different
responsibilities for certain durations.
The area where I done my internship is Human Resource Department
which consists of three main sections:
(1).HR Section (MANAGEMENT)
(2).HR Section (STAFF)
(3).Labor Law& Handling of Disciplinary Case
METHODOLOGY OF STUDY
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The report is based on my six week internship program in FFC. The

methodology reported for collection of data is primary as well as
secondary data. The primary source of information is my personal
observation while working with staff and having discussion with them.
Specially, in HR Section to get the relevant information about certain
topics.
Primary Data:
Personal observation
Discussion with staff
Practical work
Secondary Data:
Policy Manuals.
www.ffc.com.pk
www.faujifertilizer.com
HR Department Goth Machhi
A Research Report on Fertilizer Industry in Pakistan
FFC HISTORY
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During the mid 70's the Government of Pakistan expressed the desire
that Fauji Foundation should look into the possibility of establishing a
urea manufacturing plant to fill the projected gap in demand and
indigenous production. The shortfall was being met through imports at
a high cost in foreign exchange. The project was sanctioned by the
Government of Pakistan on 17th December, 1977.
FFC was incorporated on May 8, 1978.
Based Unit at Goth Machhi commenced commercial production in June
1982 with annual designed capacity of 570 thousand tones urea.
Based Unit up-graded in April 1992 to produce 695 thousand tones
annually.
Expansion Unit at Goth Machhi commenced commercial production in
March 1993 with designed capacity of 635 thousand Tonnes.
FJFC founded in November 1993 with initial contribution of Rs. 1
billion. The company’s investment in FJFC now stands at over RS 4
billion.
PSFL acquired on May 31,202 and merged with FFC on July 1, 2002.
Situated at Mirpur Mathelo the plant has annual designed production
capacity of 574 thousand tones.
The aggregate designed production capacity of FFC is three plants
now stand at almost 2 million tones annually.
Since inception to 2002, FFC has produced and marketed 21million
tones of urea. In terms of import substitution this has resulted in
national savings of well over 3 billion dollars in foreign exchange.
Since inception the company has sold/marketed almost 28 million
tones of fertilizers.
FFC is the only company providing Mobile Farm Extension Services at
the farmers, door-step since 1986.
FFC was the first company in fertilizer Sector to achieve in 2002 the
highest ever.
FFC was the first company in Fertilizer sector to achieve ISO 9002
certification in 1997.
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FFC has been placed amongst the list of top 25 companies of

PAKISAN BY KSE for eight years consecutively, topping the list in
1997.
21.5 million Man-hours of operation without injury were achieved in
2003, the highest ever.
The company’s annual Reports have been adjudged as one of the best
reports in the Chemical sector twice by joint committee of
ICAP/ICMAP.
Vision Statement
FFC's vision for the 21st

Century remains focused on
harmonizing the Company with
fresh challenges and
encompasses diversification and
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embarking on ventures within and beyond the territorial limits

of the Country in collaboration with leading business
partners.
Mission Statement
FFC is committed to play its

leading role in industrial and
agricultural advancement in
Pakistan by providing quality
fertilizers and allied services to its
customers and given the passion
to excel, take on fresh challenges,
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set new goals and take initiatives for development of

profitable business ventures.
CORE VALUES
At FFC people seek uncompromising integrity through each individual’s

effort towards quality product for our customers and sizable contribution
to the national exchequer.
Our business success is dependent on trusting relationships. Our
reputation is founded on the integrity of the Company’s personnel and
our commitment to our principles of:
Integrity: At FFC we seek uncompromising integrity through each
individual's effort towards quality product for our customers and
sizable contribution to the national exchequer.
Trusting Relationships: Our business success is dependent on
trusting relationships. Our reputation is founded on the integrity of the
Company's personnel and our commitment to our principles of.
Honesty: Honesty in communicating within the Company and with
our business partners, suppliers and customers, while at the same
time protecting the Company's confidential information and trade
secrets.
Customer Focus: Excellence in high-quality products and services
to our customers.
Consistency: Consistency in our word and deed.
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Management Commitment: Compassion in our relationships with

our employees and the communities affected by our business.
Miscellaneous Values: Fairness to our fellow employees,
stakeholders, business partners, customers and suppliers through
adherence to all applicable laws, regulations and policies and a high
standard of moral behavior.
OBJECTIVES OF THE COMPANY

The broad objectives of the company are:
To play a vital role in agricultural development of the country.
To provide the quality products.
To be environment-friendly organization.
To sustain its role as market leader in urea production and marketing.
To deliver exclusive values and services to the shareholders and
customers through its strategies.
To place great value on social responsibilities and welfare.
To develop a culture based on principles of honesty, integrity, fairness
and respect.
To create the agricultural awareness in farmers through media and
training.
To provide farmers technical services through technical services
department free of cost.
To hire and retain satisfied workforce.
To set high standards for production and sale and achieve these
objectives.
To promote education in the farmers community by awarding merit
scholarships.
To help upgrade the capability of fertilizer research, extension and
marketing personnel in the transfer of fertilizer technology.
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To provide a neutral common platform to resolve contentious issues in

fertilizer sector.
Brand Name
The Company annually

produces 2.05 million metric
tons of urea, marketed under
the brand name of “Sona
Urea”.
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ISO-9002 Certification
Another major landmark for Fauji Fertilizer Company is ISO-9002

certification for its manufacturing division 1st Goth Machhi. Quality in all
areas has been a hallmark of the Company right from the beginning
and our product “SONA UREA” has already established its rightful
place in the market.
Therefore to bring their system in line with internationally recognized
quality standards, they decided to go for ISO-9002 certification. To
achieve a total quality management system, FFC surpassed the
requirement of ISO-9002 standards by including all support services
like Admission, personnel, Finance Hospital, Schools and Management
Club etc. also in the certification scope. They selected Bureau of
VERITAS quality international (BVQI), England, a leading certification
agency as our registrar. BVQI is honored by various accreditation
authorities of the world. Quality management system of FFC got ISO
certified in its first attempt during November 1997 with the honor of
being the 1st Fertilizer Plant in Pakistan. Since then they have not
looked back. They have passed all surveillance audits with
commendable remarks from their registrar.
Since 21 February, 2001 Quality Management system of FFC now
stands recertified (ISO 9002) by BVQI after successful completion of
initial certification period of 3 years.
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Achievements
ISO Certification
KSE Top KSE Top
Companies
Award
TPM
Award
Health and
Safety
Award
Asian CSR
Award
SAFA Award
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NCCA Award
ICAP & ICMAP
Overall Award
ICAP & ICMAP
Sector Award
SAFETY AWARDS
The effectiveness of the safety program is
reflected by the various awards won from National
Safety Council (USA) since 1982. The company
has received 15 awards of honor.
Two special safety awards on outstanding
performance were given to FFC in 1989 / 1993 by the council for
constantly achieving outstanding performance in the field of safety.
FFC also has the honor of achieving all time best
16.49 Million man-hours without lost time injury as
of 31 December 2001, which is the all time best.
ISO Certifications
Sr. Certification Brief Description of

No Name Certifications
1 ISO-9001:2008 Quality Management System
2 ISO 14001:2004 Environmental Management System
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OHSAS
18001:2007 Occupational Health & Safety
3
Assessment Series
POLICY FORMULATION
QUALITY POLICY:
Fauji Fertilizer Company Limited is committed to attaining excellence in
all areas of its operations. They continue to strive for improvement
through coordinated efforts, feedback, and training and employee
motivation. They are determined to ensure customer satisfaction,
Company’s productivity & profitability, occupational health, safety and
care for their environment and continue playing their role in the
industrial and agricultural development of Pakistan.
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SAFETY AND HEALTH POLICY:

At FFC, we are committed to maintain a safe and healthy environment
having the same significance as productivity. They inculcate safety
culture by specific training, incentives, and effective control, to ensure a
safe and healthy working environment. They resolve to attain the
highest standards of safety and health through consistent
improvements in on-the-job and off-the-job safety and in the working
conditions.
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ENVIRONMENTAL POLICY:
Fauji Fertilizer Company Limited is committed to achieve
environmental protection through compliance with all the applicable
laws and regulations. An active pollution prevention program is
followed with efforts for continual improvement in the environmental
aspects related to plant operations.
Top 25 Companies KSE Awards

7th Position in 2009:
In 1991, the company was listed on Karachi and Lahore Stock

Exchanges and in 1992 on Islamabad Stock Exchange when it was
formed. Shares were offered to the public and company employees. In
1993/94 FFC achieved the distinction of paying the highest income tax
in the country.
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Based on the exemplary dividends to the shareholders and other

criteria of Karachi Stock Exchange, FFC has consistently remained in
the list of top 25 best performing companies of Pakistan consecutively
for 14 years since 1994. As a result of excellent performance over the
years, the company's ranking in the Karachi Stock Exchange list of 25
companies improved from fifth position in 1995 to second in 1996, it
was awarded the first position in 1997 and again second prize in 1998.
Addresses
HEAD OFFICE
93-Harley Street,P.O Box No. 253, Rawalpindi.
PABX: 9272307-15,9272318-9
TELEX: 5785 FFCRP PK, 54310 FFCRP PK
TELEFAX: (051)9272316,9272345
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MANUFACTURING DIVISION
PLANTS
Goth Machhi, Sadiqabad, Rahim Yar Khan.
PABX: (068)5786420-9,(068)5873001-9
TELEX: 42469 FFCGM PK, 42468 FFCGM PK
TELEFAX: (068)5786401
MARKETING DIVISION
Lahore Trade Centre
1-Shahrah-e-Aiwan-e-Tijarat,Lahore
PABX: 6365736,6369137-40,6308429-30
TELEX: 44843 FFC PK
TELEFAX: (042)6366324
RESIDENT MANAGER KARACHI

B-35, KDA Scheme No. 1,Karsaz
Karachi.
TELEFAX: (021)4390117,4390122
TELEPHONE: 4390115-6,4390118-20
BOARD OF DIRECTORS
CHAIRMAN
Lt. Gen. Hamid Rab Nawaz, HI(M) (Retired)
CHIEF EXECUTIVE AND MANAGING DIRECTOR
Lt. Gen. Malik Arif Hayat, HI(M) (Retired)
DIRECTORS NOMINATED BY
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Dr. Haldor Topsoe Fauji Foundation

Mr. Qaiser Javed Fauji Foundation
Mr. Tariq Iqbal Khan National Investment
Trust (NIT)
Dr. Nadeem Inayat Fauji Foundation
Mr. Istaqbal Mehdi Pak Kuwait Investment
Company
Brig. Arif Rasul Qureshi (Retired) Fauji Foundation
Maj. Gen Muhammad Fauji Foundation
Tahir(Retired)
Brig. Rahat Khan (Retired) Fauji Foundation
Mr. Shahid Aziz Siddiqui State Life Insurance
Mr. Shahid Anwar Khan National Bank of Pakistan
Mr. Khizar Hayat Khan Government of Pakistan
CHIEF FINANCIAL OFFICER

Syed Shahid Hussain
COMPANY SECRETARY
Brig. Khalid Kibriya (Retired)
MANAGEMENT
CHIEF EXECUTIVE AND MANAGING DIRECTOR

Lt. Gen. Malik Arif Hayat HI(M), (Retired)
Group General Manager Marketing

Mr. Asad Sultan Chaudhry
Group General Manager Technology & Engineering

Syed Iqtidar Saeed
Group General Manager Finance/CFO

Syed Shahid Hussain
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Group General Manager Manufacturing & Operations

Mr. Tahir Javed
General Manager Manufacturing & Operations (Mirpur

Mathelo)
Mr. Naeem-ur-Rehman
Senior Manager Corporate Affairs/Company Secretary

Brig. Khalid Kibriya (Retired
FFC ORGANIZATIONAL CHART
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CEO / MD
Business Marketing Manufacturing Technical Finance

Development Operations Engineering
Goth Machhi Mirpur Mathelo Human

Plant Plant Resource
IT Admin Public
Relations
Company Civil RM Office RM Office
Secretariat Works Goth Machhi Mirpur Mathelo Internal
Audit
POLICY STATEMENT OF ETHICS AND

BUSINESS PRACTICES
WHAT IS ETHICS?
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Ethics when social interactions are premised on the unquestioned

belief that the self and other deserve equal consideration.
Ethics, on other hand, is not an individual attribute as it is a quality that

marks social interactions. In other words, one cannot be ethical alone
as it becomes relevant only in the context of social relations. But only
those interactions are ethical which are premised on a concern for
other people. Ethics seek justifications in the lives of mortals and not in
the eyes of GOD. This also implies that people have a definite stake in
upholding these ethical norms as there is something that is
experientially valuable in term for everybody.
A quick even trivial, example of ethics is traffic rules. In order to get to a

destination in the shortest time for everybody it is the best that all drive
in their own lane and obey street signals. Deviations from this may
work for some time but is collectively counter productive.
BUSINESS ETHICS
Business Ethics demands that profit be made on a sustainable basis by

observing norms that respect other people. Fairness, transparency,
and individual ambitions must all find a place in the practice of
Business Ethics.
The success f a Company depends on its ability to create a culture

which makes clear to the naked eye that individual gain is an integral
part of collective profit. This demands that all functionaries in a
corporate unit pull together as a term.
It is the policy of FAUJI FERTILIZER COMPANY LIMITED to follow the

highest business ethics and standards of conduct. It is the obligation of
every one of us to act responsibly; that is, to be honest, trustworthy,
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conscientious, and dedicated to the highest standards of ethical

business practices.
The company’s reputation and its actions as a legal entity depend on

the conduct of its Directors and employees. Each one of us must
endeavor to act according to the highest ethical standards and to be
aware of and abide by applicable laws.
We all must ensure that our personal conduct is above reproach and
complies with the highest standards of conduct and business ethics
and have the obligation to ensure that the conduct of those to work
around us complies with these Standards. The Company’s Code of
Business Ethics and Standards of Conduct will be enforced at all levels
fairly and without prejudice.
This code to which the company is committed in maintaining the

highest standards of conduct and ethical behavior is obligatory, both
morally as well as legally and is equally applicable to all the Directors
an Employees of the company who all have been provided with a
personal copy.
STANDARD OF CONDUCT FOR

EMPLOYEES
We shall conduct our employment activities with the highest principles

of honesty, integrity, truthfulness and honor. To this end, we are to
avoid not only impropriety, but also the appearance of impropriety.
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We shall not make, recommend, or cause to be taken any reaction,

contract, agreement, investment, expenditure or transaction known or
believed to be in violation of any law, regulation or corporate policy.
We shall not use our respective positions in employment to force,

induce, coerce, harass, intimidate, or in any manner influence any
person, including subordinates, to provide any favor, gift or benefit,
whether financial or otherwise, to ourselves or others.
In business dealings with suppliers, contractors, consultants,

customers and government entities, we shall not provide or offer to
provide, any gratuity, favor or other benefit and all such activities shall
be conducted strictly on an arm’s length business basis.
While representing the company in business dealings with third parties

we shall not allow ourselves to be placed in a position in which an
actual or apparent conflict of interest exists. All such activities shall be
conducted strictly on an arm’s length business basis.
All of us shall exercise great care in situations in which a preexisting

personal relationship exists between an individual and any third party
or Government employee or official of an agency with whom the
company has an existing or potential business relationship. Where
there is any doubt as to the propriety of the relationship, the individual
shall report the relationship to management so as to avoid even the
appearance of impropriety.
We shall not engage in outside business activities, either directly or

indirectly, with a customer, vendor, supplier or agent of the company,
or engage in business activities which are inconsistent with, or contrary
to, the business activities of the company.
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We shall not use or disclose the company’s trade secret, proprietary or

confidential information, or any other confidential information gained in
the performance of company duties as a means of making private
profit, gain or benefit.
SWOT ANALYSIS OF FFC
Strength:
Strengths refer to those activities that a company performs better than

it has competitors. Strength basically means “the core competency of
the company.”
The following points are our company’s strength:

FFC has a very stable urea market.
FFC is market leader; its share is 68%.
FFC has a strong dealer ship network and a large sales force to cater
to its needs.
FFC produce best quality urea.
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Its brand is preferred on others.

FFC owns three mega plants with Central location.
Broad production range.
No deceptive & unethical practices.
Experience in production and marketing of product.
Top player of fertilizer business with maximum production capacity.
Significant contribution towards the economic and agricultural
development of the state.
Core competence in distribution with the largest distribution network.
Excellent environmental & working conditions.
Safety measures of international standards are exercised.
Strong Distribution Network
Low Fixed Costs (Depreciated Plants)
Management Quality
Weaknesses:
Weaknesses are the activities that the firm does not do well or the
resources it needs but does not possess. It also includes the factors
that cause losses, hardships, disputes and complaints for a business.
The following are our company’s weaknesses:

Because of high share in total production, it is allotted more of imported
urea which sells slowly.
Its price is higher than of competitors.
Dependence on imported feed stock, suppliers and special
repair/maintenance facilities.
Too much centralization bureaucratic control effects timely decision
making.
Decline in sales in economic zones of competitors.
Lack of long term planning, decisions are made keeping in view the
short term benefits.
Sales force is over staffed.
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Distress in sales force due to extra burden of sales of acquired plan

product
Limited Diversification
Dependence on Govt. Gas
Opportunity:
These are the directions that the business could profitably take in
future because
of its strengths or because of the elimination of its weaknesses.
The following are opportunities for our company.

Demand of Urea is growing very rapidly.
Good chances of expansions.
Expansion of plants to meet the demand more efficiently.
Efficient as well as appropriate sales promotion and dynamic
advertisement.
Proper placement of warehouses.
Delegation of authority so that decisions can be made at the spot
without any delay.
Great opportunities for joint ventures.
Quality should be improved gradually with the results and trends in
market, may utilize the word of mouth influence by giving more benefits
to dealers.
May diversify the business in allied services .may be cost leaders by
cutting down the unnecessary expenditures.
Diversification Opportunities
Favorable Industry Indicators
Favorable New Policy- Expansions
Threats:
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A threat to a business arises from the activities of competitors

and from failing to avail opportunities because of so many reasons like
political instability and economic and financial crises etc.
The following are the threats that our company is facing.

Any sharp decline will heart it the most.
A free trade policy of WTO is a major threat to the company.
Threat of water and gas crisis.
Rising Internal Oil Prices
Expansion in Global DAP Capacity
New Entrants (Fatima in 2008)
Gas Supply Constraints
Unfavorable Fertilizer Policy: increase in feedstock or new entrant
incentives
PEST ANALYSIS OF FFC
Political Instability:
The political situation of Pakistan is not satisfactory. Due to the rapid

change in the Government every government sets its own new trade
policies.Govt. should apply sustainable policies for the beneficial of the
exporters as well as the investors.
Economic situation:
The economic condition of Pakistan can also affect the foreign

investors increasing inflation rate make the cost of production high and
thus reduce the profit margin of the investor.
Social situation:
The change in the lifestyle of the people affects the growing demand of
the FFC products. The change in the lifestyle and needs in different
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demographics also affect the demand of the customers.Due to all these

changes FFC is performing excellent for the excellence organization as
well as for the customer.
Technological factor:
Technological advancement in all the sectors of the country has

changed the entire socio-economic environment. Especially in the
fertilizer sector there is a lot of technological development.High
technology is the basic requirement of FERTILIZER industry. The
companies that are using latest technology have some cost benefits
over the companies, which are not using high technology. The key to
survival for companies in this industry is using high technology for
quality and cost purposes
TTC (Technical Training Centre)
BACKGROUND
The strength of FFC’s Technical Training Centre
(TTC) lies in its expert faculty having rich plant operation and
maintenance experience, functional pilot plants, well equipped shops
for practice and access to FFC operating plants for real life
demonstration.
TTC FACILITIES
The facilities include pilot plants for operations practices, small size
mechanical equipment along with cut models for training in mechanical
trade, pilot plant control loop for practice in Measurement and Control
Laboratories for Instrument Engineers/Technicians.
PROGRAMS AVAILABLE
Training of engineers and technicians customized to Client’s specific
needs.
Fertilizer Technology Course for fresh engineers.
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Professional and Management Courses.

Apprenticeship Programs for operators and technicians.
Skill Improvement Programs for operators and technicians in the areas
of Plant Operations, Maintenance & Safety.
JOB SCOPE
No job offer is indicated or guaranteed by FFC in any way after
the course completion. However, the knowledge and skills gained in
the course will prepare the participant in a better way for securing jobs
in fertilizer and other Hi-tech process industries through normal
procedures.
HUMAN RESOURCE
DEPARTMENT
The FFC Management, acknowledging the importance of human

resources has always placed personnel management at the top of its
priority list. The Human Resources Department, therefore, right from
the inception of the Company has played a vital role in steering the
Company through all its phases, operations and progress .
The functions of Human Resources Department

vis-à-vis personnel management and human resources development
are going side by side and it is due to the progressive approach and
dynamic philosophy of the management that Personnel Management
remains abreast with the latest style of management ensuring high
level of motivation and satisfaction of the work force under varied
situations. Personnel policies are kept updated and are periodically
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modified to respond to the latest socio-economic changes and market

trends of the country.
Hiring quality manpower, keeping them happy, satisfied and

motivated are the pillars of the Human Resources Department; justice,
fair play and merit oriented treatment are some of the ingredients of
processing cases by the Human Resources Department.
For Human Resource development, another

aspect which receives its due share is training. The employees are
exposed to various kinds of cross training, technical courses,
management courses, workshops and seminars both at home and
abroad. At Plant site, the Company has a Technical Training Centre,
which is unique, and the only centre in Asia having a true replica of the
Plant for providing realistic training as far as possible, to the
employees.
Employees' welfare has all along received due consideration by the

Management. A number of agreements have been signed with CBA
Workers Union, resulting in handsome remuneration packages to
employees. The company, since its inception, has undertaken five
salary revisions for Management employees, to remain amongst the
top paying organizations of the country. It is due to the sheer sincerity,
welfare oriented policies and concern for every single employee that
there has never been any strike, lock out or go slow in FFC.
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COMPANY’S HR DEPARTMENT
FFC/GM has a very effective as well as efficient HR section which is operating

very lucratively to provide solutions for the problems of all the employees of the
company. Procedures and policies for serving of both of management and staff
employees are designed by HR head office located in Rawalpindi, and are worked on in
FFC Goth Machhi and Mirpur Mathelo.
The setup of FFC’s HR Department is as follows:

HR Manager: Col. Shaukat Ali Alvi
Deputy Manager (HR): Mr. Iqbal Samdani
Senior executive HR Mr. Tamoor Akram Baig
Page | 34

Assistant Manager (legal & labor affairs) Major Nadeem Asghar

Chief supervisor (HR) Mr. Allah Bukhsh
Senior Supervisor HR (Offr Section): Mr. Rana M. Saleem
Senior Supervisor HR (Staff Section): Mr. Shakir Ashraf
ORGANIZATIONAL HIRARCHY IN HR
DEPARTMENT (GM)
Deputy
Manager (HR)
CA
AM (LLA) AM (HR) AM (HR)

Page | 35

Sr. Clerk Sr. Office Office Sup

Sup
Computer Sr. Clk

Sup
Sr. Clk Clerk
INTERNSHIP PROGRAM AT FFC

Every year, FFC offers an internship program for the students of MBA, BBA, and
Engineering to play the national role in improving quality of technical education.
FFC offers internship positions to eligible students from well known educational
institutions. It offers internship positions to presentable and responsible looking
candidates who fulfill the eligibility criteria. Major objectives of offering these positions
are:
To provide practical training and exposure to intending interns a service to students,
educational institutions and to the community as a whole.
To evaluate fresh interns as a potential source of future hiring.
Page | 36

Duration of Internship:
FFC offers internship for 4-6 weeks
Eligibility:
Candidates for internships should be graduates or should be studying
for a graduate degree.
Monthly Stipend:
A stipend of Rs. 3000 shall be paid to interns upon
completion of the internship period. Non-graduate student if accepted for internship will
not be eligible for any stipend.
Applying for internship program:

Page | 37

After successfully completing my 6 th semester at CIIT Lahore, I had to fulfill the

six week requirement for internship at any renowned organization. In addition to
complete the requirement, another important objective was to gain experience of the
corporate world and understand its strengths and weaknesses. As my father is already
working in FFC/GM, I had the opportunity to apply in this renowned organization.
My subject of interest for internship was Human Resource Management, as I
want to specialize in this field so University has send my application for internship in
Human Resource Section of FFC/GM. Application was approved and I received a
joining letter from Head Office of FFC.
Starting the internship:
At first day of internship, I was briefed about the Fauji Fertilizer Company. We
had a very informative session there concerning the history, structure, procedures, and
achievements of FFC in TTC.
The presenter Mr. Anthony Gomes informed me about all the rules and
regulation regarding safety and work environment so that I would not face any difficulty
while performing my job. A book-lit of PLANT DESCRIPTION was also given to me to
improve my understanding of the Plant site norms and procedures. Next day my actual
internship started, with accordance to a schedule given to me in HR Department.
Issuance of Internship Certificate:

Internship Certificate is an official document and may only be issued by the
Technical Training Centre (TTC).Copies of Internship Evaluation Form and Internship
Certificate should be retained in TTC files for future reference.
Page | 38

BRIEFING BY HR MANAGER
I spend two day of my internship in the supervision of HR manger. He briefs me about
concept of organization, human resource management, human resource practices, and
also about nature of human resource.
ORGANIZATION:
Basically, organization is a combination of three concepts.
People
Structure
Shared purpose
An organization is a social arrangement which pursues collective goals, which controls
its own performance, and which has a boundary separating it from its environment.
HRM is the effective use of human resources in order to enhance organizational
performance.
HUMAN RESOURCE MANAGEMENT
It includes recruitment and selection of appropriate staff and management of the

employment relationship, which includes contracts, collective bargaining, reward
systems and employee involvement, and considers the strategic and operational view
of human resource requirements. Human resource management (HRM) is the strategic
and coherent approach to the management of an organization's most valued assets -
the people working there who individually and collectively contribute to the achievement
of the objectives of the business
Page | 39

Human resource practices:
Following are the practices conducted in the FFC.

Recruitment
Hiring
Training
Performance Management
Employee Development
Pay structure
Compensation & Benefits
Documentation
Maintenance of record
Leave
Daily attendance
Medical bills
Leave for assistance
Payment of bonuses
Transfer
Resignation
No demand certificate
Long service award
Merit scholarship
Internship training
Crew week schedule
Manning level
Working industrial relations and welfare offices
NATURE OF HRM:
Human resource management (HRM) is both an academic theory and a business
practice that addresses the theoretical and practical techniques of managing a
workforce. Synonyms include personnel administration, personnel management,
manpower management, and industrial management, but these traditional expressions
are becoming less common for the theoretical discipline
Page | 40

BRIEFING BY AM (LLA) ON LABOR LAWS

AND DESCIPLINARY CASES
During my internship I spend two days with Major Nadeem Asgher AM (LLA).He tells
me about company policies labor laws, industrial relationship, Industrial climate.
Ordinance and laws, labor union, and also grievance handling.
1-Formulation & interpretation of company policies

Major policies are formulated at the head office of FFC. Local policies are formulated
according to needs of concerning area. Policies are made in accordance with:
Need analysis(individuals/ company)
HR department give suggestion to head office for change in policies. It also interprets
the policies for proper implementation.
2-Advice:
HR section counsels with employee and authorities concerning the following issues
when they are needed to be discussed:
Grievance handling
Disciplinary cases
Dealing with union office bearers
Labor laws
3-Service:
Services include:
Recruitment
Documentation at entry/exit
Maintenance of employee’s record.
Liaison/ correspondence with government agencies like labor department, EIOB social
welfare department and apprenticeship authorities.
Page | 41

4-Control:
Control is applied by:
Monitoring of performance of departments to ensure that they conform to establish HR
policies procedures and practices.
Ensuring that departments comply with the applicable labor laws.
MRCD/performance appraisal.
AM (LLA) IS RESPONSIBLE FOR:

Industrial relations
Disciplinary matters
Pursuance of legal cases
Intermediary role
Advisory role
Participation in negotiation with CBA for agreement/settlement
Grievance handling
Welfare activities
Welfare activities
Processing of interest free loan
Processing of application for Umrah/Hajj
Grant of talent scholarships to workers’ children by the Govt.
Processing of applications to obtain loan for building of house
Processing of applications for advance payment of house rent allowance
To ensure the smooth functioning of various forums provided under law.
Welfare of Employees:
Welfare of employees has all along received manager’s top priority and the
workforce has responded to Management’s welfare oriented gesture positively.
Company can safely say that the industrial environment of the FFC is such that any
organization can feel proud of.
Page | 42

INDUSTRIAL RELATIONS:
Ensuring implementation of various labor laws and enactments relevant to the plant.
Submission of reports and returns to Labor Department as required under the labor
laws.
Handling and maintenance of documents for the sub-judice cases and assisting the
Legal adviser preparing various court cases.
Preparation of progress reports on disciplinary and court cases and their submission to
Head Office.
Keeping close liaison and correspondence with the labor department.
Continuous monitoring of Union activities and keeping g the higher management
informed.
Correspondence with CBA in the light of Management decisions.
Grievance handling and their redress.
Industrial peace agreement:

Eleven agreements have been signed so far. The last one was concluded on 10 July
29, 2009.
Industrial climate:
Most important function of human resource management is to ensure a healthy
industrial environment through implementation of labor laws, company policies and
welfare of the industrial workforce. In the capacity of the Factory Manager, RM signs
various contracts deeds and carries out negotiations with the CBA Workers unions on
behalf of the management.
Grievance handling:
A proper grievance handling procedure exists for employees.
Other forums as envisaged in the Labor laws also exist where the workers can come up
for the resolution of their problems.
The grievance handling procedure is:
Page | 43

An employee having grievance approaches the section head/in charge.

If the matter is not resolved, may request for interview of Department Manager.
Ordinances and Laws
Following are some of the Ordinances and Laws that are commonly used at the IR
office:
Industrial Relation Ordinance 2002:

Deals with the formation of Trade Union.
Deals with the relation between staff employees and management through CBA Union.
Provides solution and avoidance of disputes.
Defines benefits and legal rights of CBA and employees.
Standing Orders Ordinance 1968:

Deals with monetary benefits, leaves, bonuses, discipline and legal benefits of CBA.
Factory Act 1934:

Deals with leaves, working hours in a factory, work place and working environment,
over time and compensation etc.
Payment of Wages Act 1936:

This tells us how the payment of wages will be made to employees.
It also tells how an employer can deduct a certain amount from the employee’s wages.
Workmen Compensation Act 1923:

It deals with the compensation in case of accidents, disability, death and mode of
payment.
Employee Old Age Benefit Institution (EOBI):

Deals with the various benefits given to the insured workers under the act at the
time of retirement or death. It is a benevolent act.
Page | 44

Workers Participation in Profit Fund (WPPF):

It deals with the distribution of profit amongst the workers earned by the
employer in a financial year.
Advisory role
AM(LLA) also plays advisory role in the disciplinary and all other legal matters for Plant
Management.
Intermediary role
Whenever the Management and CBA do not agree on any point of issue/ dispute and it
seems to be difficult to reach the conclusion, the IR office tries to play an intermediary
role through formal and informal meetings with CBA.
Maintaining Industrial Climate:
Most important functions of Human Resources is to ensure healthy industrial

environment through implementation of Labor Laws, company policies and welfare of
workforce. In the capacity of Factory Manager,
RM signs various contract deeds and carries out negotiations with the CBA Workers
Union on behalf of the Management.
Brief history of Industrial climate of FFC Goth Macchi is covered under the following
heads:
 Workers Union: The union came into existence in 1983. FFC has encouraged healthy
industrial relations. Over the years the workers have been groomed into responsible force
with understanding of healthy environment.
 Industrial Peace Agreements: Eleven agreements have been signed so far. The last one
was concluded on 10 July, 2005.
 Strikes: No strike or Go Slow even for a day has occurred in 22 years.
 Union Elections: There is only one union and elections are held regularly with
management’s interference. The present CBA got elected on April 24 th, 2010. The office
bearers have no political inclination.
Page | 45

BRIEFING ON FUNCTIONS OF HR by
Mr. IQBAL SAMDANI
Handling daily mail record:

Handling of daily mail record is an important job of HR department. It is performed as
follows:
If any services are to be rendered by HR section of FFC then a mail from head office is
forwarded to HR section of FFC Goth Machhi to perform subsequent action.
In HR section of FFC/GM, mail is received by Office Superintendent. Then he forwards
the mail to SR, HM, AM (LLA), AM (HR) officer, and AM (HR) staff for their approval.
Page | 46

After the approval of the mail, it is forwarded to the concerning department to take
subsequent action. Then that department is responsible for later action.
Maintenance of mail record:

An appropriate record of all the mails is maintained by Office Superintendent. So
that if record of mails is required in future then it can be acquired easily .
While working in HR Section, I found that this department is performing its duties
whole heartedly and performing a lot of functions in this regard. Following area some
function that is performed by HR section:
FUNCTIONS OF HUMARN RESOURCES SECTION

GOTH MACHHI
The main functions of human resource section in Goth Machhi are:

Interpretation of company policies and monitoring its implementation.
Issue of implementation instructions at the plant site.
Continuous monitoring of manpower and keeping the Department Manager abreast
with the current manning level the entire time.
Finding critical deficiencies, inviting applications from suitable candidates to fill in the
deficiencies. Short listing of applications with the concerned department manager.
Issuing call letters and subsequent arrangements for tests/interview of the candidates.
Personnel documentation, maintenance and updating of records. Processing medial
bills, Daily expense statement, leave applications, payment orders and no demand
certificate in the light of Company policy pertaining to all staff employees based at Goth
Machhi.
Page | 47

Processing of CAT claims, daily expense statement, medical bills, and leave of
management employees.
Ensuring implementation of all company policies in day to day routine and bringing all
irregularities to the notice of Department Manager.
Maintenance and handling of MRCD and Performance Appraisal forms record of all
staff employees. Initiating action for MRCD with concerned department for their timely
action and submission of these reports to head office. Likewise handling of these
documents up to all level of Management employees.
Providing guidance to Section heads in dealing with staff employees working under
them with regard to handling of disciplinary problems under the company policy.
Keeping close watch on the disciplinary state of the Plant and initiating immediate
disciplinary action where required.
Dealing with matters relating to FFC schools at Goth Machhi.
Maintaining liaison with outside agencies like Social Welfare Department, Civil
Administration, EOBI and Labor Department.
Preparation and maintenance of record concerning EOBI.
Preparation of attendance register on the basis of attendance sheet received daily from
different sections
Ensuring welfare of all the personnel’s in the light of Labor Laws and Company policies.
TRAINING OF EMPLOYEES
FFC recognizes TRAINING as an essential component in maintaining excellence in

productivity, efficiency, quality and safety. FFC Technical Training Centre (TTC) is
situated at plant site. It is spread over an area of 5.8 acres and consists of covered area
of approximately 50,000 square feet. TTC has been modernized in association with M/S
Stamicarbon BV, a DMS subsidiary in Holland. TTC has facilities like process simulator,
workshops, laboratories, library, audio-visual aids etc. Staff and Management
apprentices go through an extensive training programme before joining the company as
regular employees. TTC conducts refresher and skill improvement courses for regular
employees of all trades. FFC pays special attention to develop and enhance the
management and professional skills of its officers. In-House management courses are
a regular feature of the training plan.
Page | 48

BRIEFING ON FUNCTIONS OF HR SECTION (STAFF)

by CAPT.TAIMOOR BAIG
Capt. Taimoor Anis Akram Baig briefed me about functions of HR Section Staff.
He showed me about company vision statement mission statement Organization chart,
Pay scale according to grades, industrial zone, Location of Company offices, Briefing
on Hiring of Staff Employee, Production of FFC Plant Goth Machhi and Mir pur Mathalo.
Communication
In FFC downward and upward communication is used through hard and soft copy but
they converted their communication channel from hard copy to soft copy.
There are following way of communication in FFC.
Use of telecommunication
Use of electronic media, e-mail, fax etc.
They heavily invested in the technology. They are using the latest technology especially
imported from the foreign country.
Motivation
FFC focused on the motivation of employees to do work and for this purpose FFC give
them different types of incentives, bonuses, pay incentives, promotion, Medical facility,
residential facility, fair well, annual dinners and much more.
Just like it FFC create a community for employees.
Page | 49

The Company has built a model township for its employees at this remote location
which consists of residential accommodation along with allied facilities. In caring for the
community in health, education, environment & sports, Fauji Fertilizer Company Limited
follows its key objective:
Health facilities include a modern clinic equipped with a laboratory in the vicinity of the
residential area. A panel of competent doctors is available round the clock to take care
of the community's health.
Two schools, FFC Grammar School & FFC Model School are operating in parallel in
the FFC Township, offering upto the Higher Secondary level. Imparting computer
literacy to children is one of the main elements of FFC schools, modern education.
Decision Making
In FFC decision making done by the team work. Leaders consult with individual or
group subordinates, obtaining their ideas and opinion, and then make the decision.
While doing decision making FFC identifying and diagnosing the problems or facts or
both, generalizing the alternatives, choosing best alternative and after implication
evaluation the results.
Identify
Generating Choosing Evaluat
and Evaluating Implication
alternative best ing
diagnosing Alternative Decision
solutions alternative results
problem
Planning
In FFC planning through by a proper channel and it take a long time. When they plan
something, they started their planning from the beginning of year and almost taking one
year on research and other precaution and facts relating to their planning they implied
what they planed.
In their planning there is a proper channel/ sequence which we mentioned above.

Page | 50

First of all they analysis the situation and see with the alternative goals and plan and
measure the opportunity cost. After that they select the best way and last step of their
planning is implication with monitoring and controlling.
While doing planning and implication of planning they also see and measure internal
and external threats, weakness, strengths, resources etc.
The most interesting thing in FFC’s planning that there is vertical planning but from
Bottom to Top because their bottom staff directly relating to their customers (farmers)
so they started planning at gross root level.
Innovation Impact
In fertilizer sector innovation is not so much important aspect. Because as old as

fertilizer product as increase in value and demand of product. Because Industry Market
innovation are slowly as compare to Consumer Market
In FFC for the purpose of innovating ideas Research and Development (R&D)
Department is working. They used the latest equipment and welcome to positive
innovation by all over the world.
Controlling
Controlling is a very much important aspect of big business.

FFC controlling technique is Bureaucratic.
Because of in rules and regulation they use Bureaucratic controlling mean the formal
control, feed forward control aims to prevent problem before they arise, feed back
control implies the performance measure by the data and analysis the results. With this
they have the also have audit management and budgetary control by the help of
auditors, balance sheet, income statement and financial ratios.
Page | 51

Set
Measure Determine
performance Compare
performance deviation
stander
With in
Standards Limits
Taking corrective
Action No Yes
Continuous work
progress
Some times employees show reaction against these control then management take the
actions against him/her.
Employees Development:
The channel has strongly focused on the employee development.

Cover the laps among the employees by using the frequently the mentor in the
organization.
Make promotions regarding to their performance
Job rotation is also done if the managers see any need of it. But they also watch the
interest of the employee.
BRIEFING BY SYED AON BUKHARI (JE-HR)

OVER ALL WORKING OF HR DEPARTMENT
Page | 52

Syed Aon Bukhari briefed me on functions of HR Section Staff. He told me

about the overall working of HR department in FFC/GM. Also about billing of Staff
employee, Hiring processing of joining document, maintenance/updation of personal
files, updation of family data, processing of DES & Medical bills, attendance etc another
correspondence relating to Staff employees.
Daily attendance staff/apprentice

Attendance sheets duly approved by Section Head/In charge in respect of the staff
employees/apprentices are received from their respective sections and then entered in
the computer date wise. These attendance sheets are retained for 3 years.
Transfer/relocation – officer/staff
Relocation order is issued from Head Office Rawalpindi to maintain accurate manpower
status and records of employees.
Transfer (Local) such as cross training, attachment, inters and intra department transfer
of employees are carried out with the approval of GMP (General Manager Plant).
Long service awards

Long service awards are given to employees to recognize long service with the
Company and to inculcate a sense of loyalty and belonging amongst the employees.
These awards are in the form of a wrist watch/gold medal or some other .Worthwhile
gift and a certificate after completing 10/20/25 year’s continuous service.
No demand certificate
It is processed to finalize the terminal benefits.
Merit scholarships for children of FFC employees’ students

These scholarships are awarded to those children of FFC employees who are studying
in colleges or professional universities.
Merit scholarships for students of Tehsil Sadiqabad
Page | 53

The captioned scholarships are awarded each year to the students who have passed
their matriculation/intermediate Examination from Govt/recognized colleges of Tehsil
Sadiqabad and have domicile certificate of Tehsil Sadiqabad.
Internship
Internship at FFC is offered to the students of MBA, MPA, & Engineering to play FFC’s
national role in improving quality of technical education in the country and identifying
prospective bright candidates for future hiring.
Birthday cards
Birthday cards are signed by GGM&O and then sent to the employees as gesture of
congratulations and as part of motivation process. A cake is also sent to management
employee at his residence on due date.
Manning level
Section/Department wise authorization/holding of manpower at the end of the month is
shown in the manning level.Its purpose is to keep an up-to-date information regarding
manpower at plant site Goth Machhi.
Condolence message
The condolence message is sent in the event of death of a close relative of an
employee.
Issue of certificate
Generally service certificates, residential certificates and income certificates are issued
to employees to produce before Govt. agencies to resolve their personal maters.
Crew week schedule

This is to continue the work on weekends.
Stipend Hafiz-e-Quran
Page | 54

A stipend of Rs2000 is paid every month to permanent/Daily wages employees who

are Hafiz-e-Quran.
Under taking on retirement

All management employees retiring from company service are required to give an
undertaking attached on Rs 100 stamp paper binding them selves that they shall not
without prior written approval of FFC render any services or collaborate with any
company which may be competing with FFC.
BRIEFING ON FUNCTIONS OF HR SECTION

(MANAGEMENT) by RANA M.SALEEM
General working of HR Section
It includes all the things under working of HR Section as given below
1) Recruitment:
In FFC both recruitment processes are followed.
Page | 55

External Recruiting:
In the external recruiting, FFC advertises through its website www.ffc.com.pk &
also through the newspaper. They also attract the job applicants through the reference
of existing employees.
Internal recruiting:
They also make internal recruitment by hiring an existing employee to another
job according to the need.
2) Hiring:
The hiring procedure they have conducted is the following.

Screening of applications:
Screening of all applications received in response to the advertisement, will be done by
HR Division in close coordination with the sponsoring department/division. Experienced
candidates being considered for regular appointment shall be short listed based on the
education and quality of experience. The criteria of short listing for
apprenticeship/trainee shall be as followed:-
First class academic career with no 2nd division.
Interview calls:
The HR division will finalize interview date in consultation with the respective
department/division manager and with the approved of the management. The short
listed candidates will be issued interview call giving them a minimum notice of 2 weeks.
The candidates may be called at convenient place. The call letters will give the
candidates information about the preliminary tests and interview procedure.
Reception of the candidates:

A representative from the Hr division preferably an officer will receive the candidates at
interview site and brief them. The candidates will fill out the company’s application form
in neat hand writing in capital letters.
Page | 56

Traveling expenses:
Candidates called final interview from a distance beyond 50 kilometers will be paid
traveling allowance and daily allowance (TA/DA) as per company policy to cover travel
expenses.
Preliminary test/interview:
A written test comprising test comprising of IQ, English and trade test will be given to
the candidates. The candidates selected for final interview shall be informed about the
date and venue of the interview immediately after preliminary interview.
Selection board:
The selection board will consist of the following:
Management (In Chairman)
Concerned general manager/Divisional manager (member)
General Manager HR (secretary)
Management may co-opt any other department/Division Manger as member of board.
Interview:
The selection board will conduct interview of candidates. The Chairman decides the
final ratings of the interview.
Approval and Appointment:

The management may decide the result at the time of interview or after the
compensation based on over all interview results. The salary and the positions for
which the candidates are to be hired will be worked out by the Goth Machhi, HR in
consultation with the management. Goth Machhi HR will issue the offer/appointment
letters to the selected candidates.
Medical Reimbursement:
Fauji Fertilizer Company provides the medical facility to its employees and its family.
There is a medical center in FFC, which provides the medical treatment and medicines
to its employees free of cost. Sometimes the patients are referred to some other doctor
out of city if the disease is of serious nature or it requires the treatment of a specialist.
Page | 57

The traveling allowance is also given to the employees when they go out of city for
medical checkup. The employee incurs the expense of medicine and travel himself and
later on the amount is reimbursed to him on his claim.
Company Assisted Travel (CAT):
Fauji Fertilizer Company provides airline tickets to its management staff free of cost.
These airline tickets are called CATs. Two types of CATs are given:
Simple CAT:
9 CAT are given to each employee for the whole year. Incidental charges of Rs-1000
are also given for each cat. If you travel from RYK-Khi and then return back from KHI to
RYK then one cat is complete. The employee has the option to travel by air train or by
car. If he travels by car then RS 5.5 per km is given to the employee. The total number
of kilometers traveled by the employee is multiplied with per km charge and the total
amount is reimbursed. If he travels by air then the payment order should accompany
the air ticket boarding pass and Request for travel booking form if the employees
purchase the ticket thru company representative. The employee can also purchase air
ticket on his own.
Education CAT:
4 cats are given to the children of the management employees who are studying in
universities. No incidental charges are given for education cat. A verification letter from
the University of the Child who is studying in the university has to submit to the human
resource department. When the payment order is made and it is sent to HR department
it verifies it through its records and the verification letter of the university.
Official Visits:
Fauji Fertilizer Company also sends its employees out of city and sometimes out of
country for official purpose i.e. to attend some meeting, for training, etc. When the
employees are sent abroad for official purpose he is given official daily allowance and
out of pocket allowance for the duration of his visit. The allowance is according to
company policy which is made according to the designation of the employees.
Page | 58

Following allowances and facilities are given to the person in this regard:
Traveling allowance
Out of pocket allowance
Accommodation
Daily allowance
Documentation officers/staff
The following documents are filled in/provided by the employees on prescribed

performer which are maintained by HR Section.
Candidate’s bio data
Personal data card
FFC medical card
Family data form
Joining report
Acceptance letter
Photographs
Photocopies of educational qualification certificates
National ID card
Domicile certificate
Maintenance of records
The following information is entered in the computer and updated regularly:
P.No.
Name
Designation
Date of birth
Cost center
Marital status
Academic qualification
National and international training courses record
Previous employment record
Page | 59

FFC employment record

Family data
Leave record
Accommodation
Basic pay
Promotion record
Account No.
Shift group
Maintenance of service books
Leave officers/staff
The purpose of leaves is to provide for & regulate absence from work for rest &
recreation, sickness, recuperation after sickness & for attending to personal affairs.
On receipt of leave application, it is scrutinized whether it is as per company policy via
dates, no. of days, type of leave, leave balance etc. After that it is entered in the
computer.
Birthday cards
Birthday cards are signed by GGM&O and then sent to the employees as gesture of
congratulations and as part of motivation process. A cake is also sent to management
employee at his residence on due date.
Car
Working directors and head of division employed are allowed to purchase assigned
cars. On completion of minimum 3 years he shall be allowed to purchase his assigned
car.
Company assisted car policy for SH AND UM

To assist unit managers and section heads in providing suitable transportation
Unit managers: Suzuki liana
Honda city 1300cc
Section head: Suzuki cultus
Page | 60

Employees will be entitled to purchase cars after six years
Policy on exit interview

Feedback is obtained from officer leaving the company with a view to improve working
conditions.
Housing policy
To provide reasonable and comfortable accommodation to employees at plant site A
and B type houses are meant for GMP and RM and SR.DEPT MANAGERS/DEPT
MANAGERS respectively. All other employees may be allotted C, D, E, MOQ, E
(MOD), F (MOD) type houses by plant management based on status and seniority of
the employees.
Under taking on retirement

All management employees retiring from company service are required to give an
undertaking attached on Rs 100 stamp paper binding them selves that they shall not
without prior written approval of FFC render any services or collaborate with any
company which may be competing with FFC.
Policy on visiting cards

To facilitate employees in developing social\business contacts in the interest of the
company and enhance its image. Employees are entitled to have business cards.
Marketing division is responsible for arranging printing of visiting cards on request.
Leave fare assistance (LFA)

The employees having completed 12 months service with the Company are entitled to
receive 5 basic pays to assist the company to meet passage cost of travel at the joining
date.
Page | 61

BRIEFING ON FUNCTIONS OF HR SECTION BY SSR-

HR MR.ASHRAF SHAKIR
Hiring of staff employees:

Man power induction plan on prescribed Performa is asked from all the department
mangers in the month of September every year wherein approved/actual strength,
vacant positions, expected attrition and number of permanent employees/apprentices to
be hired, are indicated. Inputs received from the department manager are compiled and
a consolidated manpower induction plan duly signed by resident manager and general
manager (maintenance & operation) is sent to human resource division Rawalpindi for
obtaining management approval. After management approval, applications are invited
through an advertisement which is designed by SE (HR) and is published in daily news
papers enjoying wide circulations. Applications held on waiting list are also included.
Applications for permanent staff employees are sent to respective department manager
for short listing. Applications for induction as apprentices are sent to technical training
center (TTC) unit head for short listing. The shortlisted candidates are issued with the
call letter by human resource section Goth Machhi. The selection board is composed as
per parameters laid down in policy on the subject/instruction from the human resource
division Rawalpindi. Written/practical tests and interviews are conducted in the
TTC/specified locations. Candidates qualifying for final interview are paid TA/DA as per
company policy vogue. Recommendations of the selection board are approved by
general manager (maintenance and operations). The selected candidates are issued
with offer letters by human resource section Goth Machhi.
Consequent upon medical fitness and joining duty by individuals the report to this effect
is forwarded to human resource section Rawalpindi for issuance of P.NOs.
Appointment letter are issued by human resource section Goth Machhi.
Documentation staff and maintenance of record is as above mentioned in the

management section.
Leave policy
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FFC have to provide for and regulate absence from work for rest and recreation,
sickness, recuperation, after sickness and for attending to personal affairs Leave policy
administered on calendar year basis and prorated accordingly. These leaves
administered on working day basis. Absence without approval is as serious infraction of
policies and likely to be subjected to disciplinary action. Leave must be applied and
sectioned by the designation authority. In case of over/under utilization, the leave can
be adjusted accordingly.
BONUSES & ALLOWANCES
BONUSES
1- 10-C BONUS
It is paid to all regular staff employees/apprentices who have completed 90 days
continuous service during the previous calendar year.
2- MOIPI (Payment of maintenance of industrial peace incentive)

MOIPI is paid to those permanent staff employees/apprentices who are on the
payroll of the company at the plant site with effect from 1 st October of the proceeding
year to 30th September of current year.
3- GOOD PERFORMANCE AWARD

This is not fixed. Company gives this to encourage its permanent
employees after completing specific job duration.
ALLOWANCES
1. PAYMENT OF SHIFT ALLOWANCE

Shift allowance is paid to those staff employees who are assigned to perform duty in
rotating shifts.
2. DES (Daily Expense Statement)
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DES is processed in respect of those employees who proceed on out station official
duty. Firstly it is checked along with supporting documents for its correctness in
accordance with the policy and then paid through finance department to the employee
after approval of RM-GM.
Superannuation – officers/staff
Superannuation age for both management and non-management employees is 60
years. A letter is issued to the concerned employee from Head Office 15 days before
attaining the superannuation age.
Conditional Allowances:
There are few conditional allowances which are given to only few employees.
1. Technical Allowance:
It is given only to the technicians and supervisors.
2. Shift Allowance:
It is given to only those staff employees who work in shifts.
3. Out Of Living Allowance:
It is given to those staff employees who live outside the township
BRIEFING BY CSR (HR) MR. Allah Bakhsh

CONFIDENTIAL ASSISTANT
Performance Management:
They made evaluation of their employees after six months. Feedback is taken from
employees and their performance is judged.
GRANT FOR ANNUAL INCREMENT FOR STAFF

Annual increments are granted on MRCD Rating basis. e. g.
For A – 12%
For B – 10%
For C – 08%
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For D –06%
MRCD – officers/staff (Merit Rating & Career Development)

Annually Management and Staff employees are given promotion on the basis of their
performance and that is judged through MRCD form. Two types of forms are.
Performance appraisal forms for promotion
Performance appraisal forms for permanent hiring apprentices
Performance appraisal forms for confirmation – staff
Performance appraisal factors include job knowledge, discipline, punctuality, and

attitude, and efficiency, quality of work, quantity of work, safety consciousness, initiative
and self development. Probation period for staff employees is 90 days and promotion
period is minimum 2 years according to their grades consistency. Recommendations of
staff employees/apprentices for hiring or confirmation or promotion are made at plant
site Goth Machhi but “No Recommendation” letters are issued from Head Office
Rawalpindi.
Performance appraisal forms for confirmation – officers

Performance appraisal factors for officers include conceptual, human, professional,
expression, proficiency, loyalty to organization, and honesty.
“Recommendation” and “No Recommendation” both letters are issued from Head Office
Rawalpindi for management employees.
OBJECTS OF PERFORMANCE APPRAISAL
 To reward high performer
 To counsel/admonish low performer
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 To identify potentials
IMPORTANT FORMS USED AT HR OFFICE FFC

GOTH MACHHI
Leave Application Form
Leave Adjustment Form
Payment Order Form
Request for Travel Booking Form
Daily Expense Statement Form
Request for Transport Form
Material Issue Voucher Form
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Request For Guest House Accommodation Form
Gate Pass Leaving Plant Site Form
Reproduction Request Form
Provident Fund Trust Loan Application Form
CONCLUSION
Fauji Fertilizers Company is the larges Urea producer in Pakistan with two process
lines having the aggregate capacity of 1.33 million metric ton per annum. The plant is
located Goth Machhi near Sadiqabad (District Rahim Yar Khan). Despite being the
latest entrant, Fauji fertilizers Company is enjoying a comfortable position “Market
Leader” in Urea industry. Management’s progressive strategies have earned its Sona
Urea an impress i.e. 48% market share in 16 years.
FFC’s top management consists of highly competent personnel who were hand picked
from the industry at the time when the industry was facing a supply surplus. “Sona” had
to struggle against such prime brands as “Babbar Sher” and “Engro” with the backing of
international sponsors, Hercules Limited and Exxon Chemicals. Since then, FFC has
eagerly followed a policy of growth increasing its annual capacity 235% within 16 years.
At present the financial position of the company is very strong and some new
expansions plans are under considerations.
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After observing performance of the company’s management one can bet that there is
nothing going wrong with the company. The financial position of the company also
reveals the same fact.
But it doesn’t mean that no improvement is required because according the Japanese
saying:
“The Best Is Not Good Enough”
The strategy should be that FFC should continuously scan the environment and
maximize its core competencies while diminishing its weakness and coping with the
threats.
FEED BACK
(POSITIVE ASPECTS OF HR SECTION AT FFC GM)
I have completed my internship of six weeks in the HR dept of Fauji Fertilizer Company
at Goth Machhi, and I have observed many of its plus points which are necessary for
the success of any organization. These are
The working Environment of HR Section is very Friendly and co-operative.

Employees here are working with there full concentration and dedication, and I am not
hesitating in saying that everybody is loyal to his work.
Safety Precaution is the major concern for all the employees here.
HR is efficiently trying to resolve the problems related to any issue regarding all
employees at all levels and guideline requirement.
Seniors are given high respect by their juniors and in turn, seniors are always ready to
solve the problems.
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Benefits of the Program

In retrospective, I can say that I benefited from the internship programme than I thought
I would in a number of ways:
Having a rare opportunity to use the knowledge and skills that I hadacquired back at the
college to provide critical environmental information to nations in order for them to
develop and put in place competent policies for environmental protection for the
betterment of the society.
Career-wise, the internship program undoubtedly enriched my curriculum vitae (CV).

Also, having gotten a chance to interact with most staff, I have had an insight on how to
shape my career towards a humanitarian job in the near future
.
The internship programme gave me a chance not only to work with Fauji Fertilizer
Company limited but also a chance to learn from the best environmental experts the
.world could probably provide. This would reflect much onto my experience
To conclude, I can state that my internship at the FFC was a rewarding experience and
provided me with some new perspectives that I did not come across during my studies
back at the university. I also have to stress that my colleagues at the FFC contributed
greatly to making my stay there a very enjoyable one.
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EXPERIENCE WHILE WORKING AT FFC
This is my first ever experience of working in any organization, and I have enjoyed my
work a lot. Prior to this I have only bookish knowledge, but this Organization has given
me an opportunity to implement my knowledge and I have gained a realistic perspective
of the Working World, which is beyond books.
I believed the things I have learned here will be helpful for me in Future also. I have
learned about factory and labor laws which is a completely new thing for me and very
important from any Company’s perspective.
I have learned Company Policies and procedures and observe how these things are
made and where Improvements can be done in order to increase an employee
satisfaction.
This Internship Program has gone beyond my expectations and helped me contribute,
learn and most importantly achieve my goals. During this Internship I observed how
Company Analyze things which are going on and it will helpful for me in establishing my
professional career.
I have learned many of Personal and Professional Responsibilities for my activities and
actions. And I am glad as being a part of this Organization and I am encouraged to
express my new ideas as it has broadened my thoughts.
SUGGESTIONS AND RECOMMENDATIONS
Over staffing and unbalanced distribution of employees in departments. Like all the
government and semi government institutions FFC has also excessive staff than
Page | 70

required. Moreover, there is uneven distribution, a place where one man can do the job
three people are working there. And some place a job of three persons is taken from a
man. This uneven distribution results in de-motivation of the employee and gradually
his interest in his work decreases that effects the efficiency. In order to increase the
efficiency of worker job is assigned to its caliper to develop his interest in work that
increase the output and decrease the overall cost of organization
.
In the company there is an unnecessary emphasis on documentation. In transactions a
lengthy procedure of paper work is involved that decrease the efficiency and results in
wastage of time. It is also observed that in some cases the same record is maintained
by more than one department.
There are very few programs for career development of the employees. People working
in one section or department from years are still with the same knowledge and style of
doing job. There should be proper career planning of employee that not only sharpens
the skills of the employee & improve its efficiency but also results in better and
improved output for the organization.
Some employees are working in the same department or section since they are
appointed.
Too much centralization in the organization. Managers at low level are not authorized to
make decisions even about minor things. They have to consult top management and
give justification on small matters. Involvement of top management and reaching at the
final decisions is time consuming and some times result in heavy losses. Also man at
low level with responsibility and no decision making power gradually lose interest in his
job and de-motivated that effects his performance. So there should be delegation of
authority up to certain extent that enables manager to take timely decisions at the spot
with confidence. When they take decisions they feel themselves more involved and
responsible for the job and in turn their efficiency increases.
Due to high rate of unemployment in the country person join those jobs which are
against their interest and not according to their calipers. So proper analysis should be
Page | 71

done, and explore those employee which can do better what they are currently doing in
the organization.
There in no strict means to force employees to take safety measures and follow safety
rules. Management should take necessary action in implementing the safety rules in the
organization.
After viewing the marketing analysis we see that product quality is not up to standard
because management is more quantity conscious than the quality. While, FFC with
almost the same plant and machinery giving the standard product.
BIBLOGRAPHY
1) Persons:
Caption Taimor Anis Akram baig
Assistant Manager (HR) Goth Machii
Major Nadeem Asgher

Assistant manger (leagal and labor affairs) Goth Machii
Syed Aon Muhammad Bukhari
Page | 72

Junior exective(HR)
2) Books:
Policy Manuals.
Human Resource Management
3) Internet:
www.ffc.com.pk
www.faujifertilizer.com
A Research Report on Fertilizer Industry in Pakistan
GLOSSARY
TTC technical training center

AM (LLA) assistant manger (legal & labor affairs)
DM (HR) deputy manager (human resource)
AM (HR) assistant manager (human resource
JE (HR) junior executive (human resource)
SSR (HR) senior supervisor (human resource)
CSR (HR) chief supervisor (human resource)
Page | 73

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Fauji Fertilizer Company Limited

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Internship Report 2010

INTRODUCTION OF THE ORGANIZATION

FFC occupies a special niche in the industrial and agricultural

During the year, FFC acquired 100% management control. Of PSFL, a

Department of management sciences

demand contributed to an extremely difficult operation environment

With a vision to acquire self - sufficiency in fertilizer production in the

Department of management sciences

management. In the year 2002, FFC acquired ex Pak Saudi Fertilizers

Recently Fauji Fertilizers Company offered the highest bid of Rs 8.151

Department of management sciences

NATURE OF THE BUSINES

Department of management sciences

PUPOSE OF THE STUDY

As an internee in FFC the main focus of my internship was on HR

Department of management sciences

The report is based on my six week internship program in FFC. The

Department of management sciences

Department of management sciences

FFC has been placed amongst the list of top 25 companies of

FFC's vision for the 21st

Department of management sciences

embarking on ventures within and beyond the territorial limits

FFC is committed to play its

Department of management sciences

set new goals and take initiatives for development of

At FFC people seek uncompromising integrity through each individual’s

Department of management sciences

Management Commitment: Compassion in our relationships with

OBJECTIVES OF THE COMPANY

Department of management sciences

To provide a neutral common platform to resolve contentious issues in

The Company annually

Department of management sciences

Another major landmark for Fauji Fertilizer Company is ISO-9002

Department of management sciences

Department of management sciences

Sr. Certification Brief Description of

1 ISO-9001:2008 Quality Management System

2 ISO 14001:2004 Environmental Management System

Department of management sciences

Department of management sciences

SAFETY AND HEALTH POLICY:

Department of management sciences

Top 25 Companies KSE Awards

In 1991, the company was listed on Karachi and Lahore Stock

Department of management sciences

Based on the exemplary dividends to the shareholders and other

Department of management sciences

RESIDENT MANAGER KARACHI

Department of management sciences

Dr. Haldor Topsoe Fauji Foundation

CHIEF FINANCIAL OFFICER

CHIEF EXECUTIVE AND MANAGING DIRECTOR

Group General Manager Marketing

Group General Manager Technology & Engineering

Group General Manager Finance/CFO

Department of management sciences

Group General Manager Manufacturing & Operations

General Manager Manufacturing & Operations (Mirpur

Senior Manager Corporate Affairs/Company Secretary

FFC ORGANIZATIONAL CHART

Department of management sciences

Business Marketing Manufacturing Technical Finance