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 Page | 1

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regional crisis. Uncertain economic and weather conditions, high natural gas prices, urea global product weak oversupply, domestic falling demand international prices and

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
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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 wo rk and dedication of all employees and the progressive approach and support from the top management. In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corp oration (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 investm ent 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

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METHODOLOGY OF STUDY
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

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FFC HISTORY
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 substitutio n 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.
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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. 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.

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Vision Statement
FFC's vision for the 21st
Century remains focused on harmonizing the Company with fresh challenges and encompasses diversification and embarking on ventures within territorial and beyond of the the limits

Country in collaboration with leading business partners.

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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, set new goals and take initiatives for development of profitable

business ventures.

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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. Management
by our business.

Commitment:

Compassion

in

our

relationships with our employees and the communities affected

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.

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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. To provide a neutral common platform to resolve contentious issues in fertilizer sector.

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Brand Name

The Company annually prod 2.05 million metric tons of marketed under the brand nam ´Sona Ureaµ.

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ISO-9002 Certification

Another major landmark for Fauji Fertilizer Company is ISO9002 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 ³SONA 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
KSE Top

NCCA Award ICAP & ICMAP Sector Award ICAP & ICMAP Overall Award

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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 / 19 93 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. No
1

Certification Name
ISO9001:2008 ISO 14001:2004 OHSAS 18001:2007

Brief Description of Certifications

Quality Management System Environmental Management System Occupational Health & Safety Assessment Series

2

3

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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 .

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.

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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. 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.

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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 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

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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
Dr. Haldor Topsoe Mr. Qaiser Javed Mr. Tariq Iqbal Khan Dr. Nadeem Inayat Mr. Istaqbal Mehdi Brig. Arif Rasul Qureshi (Retired) Maj. Gen Muhammad Tahir(Retired) Brig. Rahat Khan (Retired) Mr. Shahid Aziz Siddiqui Mr. Shahid Anwar Khan Mr. Khizar Hayat Khan

NOMINATED BY
Fauji Foundation Fauji Foundation National Investment Trust (NIT) Fauji Foundation Pak Kuwait Investment Company Fauji Foundation Fauji Foundation Fauji Foundation State Life Insurance National Bank of Pakistan Government of Pakistan

CHIEF FINANCIAL OFFICER
Syed Shahid Hussain

COMPANY SECRETARY
Brig. Khalid Kibriya (Retired)

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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

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

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FFC ORGANIZATIONAL CHART

CEO / MD

Business Development

Marketing

Manufacturing Operations

Technical Engineering

Finance

Goth Machhi Plant

Mirpur Mathelo Plant

Human Resource

IT
Company Secretariat Civil Works RM Office Goth Machhi RM Office Mirpur Mathelo

Admin

Public Relations

Internal Audit

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POLICY STATEMENT OF ETHICS AND BUSINESS PRACTICES
WHAT IS ETHICS?
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.
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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, 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.

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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. 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 ourselv es 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.
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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, company. 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. or engage in business activities which are inconsistent with, or contrary to, the business activities of the

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SWOT ANALYSIS OF FFC
Str ength:
Strengths refer to those activities that a company performs better than it has competitors. Strength basically means ³the 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. 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
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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. Distress in sales force due to extra burden of sales of acquired plan product Limited Diversification Dependence on Govt. Gas

Oppor tuni ty:
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.
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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

Thr eats:
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 eco nomic 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
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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 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
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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. Professional and Management Courses. Apprenticeship Programs for operators and technicians. Skill Improvement Programs for operators and technicians in the areas of Plant Operations, Maintenance & Safe ty.

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.

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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 periodicall y 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,

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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: Deputy Manager (HR): Senior executive HR Assistant Manager (legal & labor affairs) Chief supervisor (HR) Senior Supervisor HR (Offr Section): Senior Supervisor HR (Staff Section): Col. Shaukat Ali Alvi Mr. Iqbal Samdani Mr. Tamoor Akram Baig Major Nadeem Asghar Mr. Allah Bukhsh Mr. Rana M. Saleem Mr. Shakir Ashraf

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ORGANIZATIONAL HIRARCHY IN HR DEPARTMENT (GM)

Deputy Manager (HR)

CA

AM (LLA)

AM (HR)

AM (HR)

Sr. Clerk

Sr. Office Sup

Office Sup

Computer Sup

Sr. Clk

Sr. Clk

Clerk
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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.

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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:
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After successfully completing my 6th 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.

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BRIEFING BY HR MANAGER
I spend two day of my internship in the supervision of HR manger. He brief s 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
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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

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:
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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 indu strial management, but these traditional expressions are becoming less common for the theoretical discipline

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 implem entation.

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:
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Services include: Recruitment Documentation at entry/exit Maintenance of employee¶s record. Liaison/ correspondence with government agencies like labor social welfare department and apprenticeship authorities. department, EIOB

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 functionin g of various forums provided under law.
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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.

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 la st 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.
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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: 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 e mployees.
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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. 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.
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Brief history of Industrial climate of FFC Goth Macchi is covered under the following heads: y 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. y Industrial Peace Agreements: Eleven agreements have been signed so far. The last one was concluded on 10 July, 2005. y y 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 inclinati on.

BRIEFING ON FUNCTIONS OF HR by Mr. IQBAL SAMDANI
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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. 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
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The main functions of human resource section in Go th 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/intervie w 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. 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 Depar tment. Preparation and maintenance of record concerning EOBI. Preparation of attendance register on the basis of attendance sheet received daily from different sections
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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.

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.
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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 incentive s, bonuses, pay incentives, promotion, Medical facility, residential facility, fair well, annual dinners and much more . Just like it FFC create a community for employees. 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.

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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.

Evaluating results

Identify and diagnosin g problem

Generating alternative solutions

Evaluating Alternative

Choosing best alternative

Implication Decision

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. 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 rel ating to their customers (farmers) so they started planning at gross root level.
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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 t he 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.

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Set performance stander

Measure performance

Compare

Determine deviation

Standards

With in Limits

Taking corrective Action

No Continuous work progress

Yes

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

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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 a pproval 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.
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Merit scholarships for students of Tehsil Sadiqabad 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 u p-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
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This is to continue the work on weekends.

Stipend Hafiz-e-Quran 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 p rior 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.

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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 2 nd 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:

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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. 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 t he Goth Machhi, HR in consultation with the management. Goth Machhi HR will issue the offer/appointment letters to the selected candidates .
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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. 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 e mployee 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

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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 h is visit. The allowance is according to company policy which is made according to the designation of the employees. 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
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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 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

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Birthday cards are signed by GGM&O and then sent to the employees as gesture of congratulations a nd 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 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 acc ommodation 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.

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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 h ave 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.

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 i s 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. Application s for induction as apprentices are sent to technical training center (TTC) unit head for short listing. Page | 64

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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 individ uals 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
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.

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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 30 th 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) DES is processed in respect of those employees who proceed on out station official duty. Firstly it is checked along with supporting docu ments 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.
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3. Out Of Living Allowance:
It is given to those staff employees who live o utside 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% 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 apprenti ces 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 Page | 67

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promotion are made at plant site Goth Machhi but ³N o 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. ³Recommendation´ and ³No Recommendation´ both letters are issued from Head Office Rawalpindi for management employees.

OBJECTS OF PERFORMANCE APPRAISAL

y

To reward high performer

y

To counsel/admonish low performer

y

To identify potentials

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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 Request For Guest House Accommodation Form Gate Pass Leaving Plant Site Form Reproduction Request Form Provident Fund Trust Loan Application Form

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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 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. ³Sona´ had to struggle against such prime brands as ³Babbar Sher´ and ³Engro´ 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. 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: ³The 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. ³Market Leader´ in Urea industry. Management¶s progressive strategies have earned its Sona Urea an impress i.e. 48% ma rket

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Internship Report 2010

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 w as 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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Internship Report 2010

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
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Over staffing and unbalanced distribution of employees in departments. Like all the government and semi government institutions FFC has also excessive staff than 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 i mproved 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. T hey 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.
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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 prop er analysis should be 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 mach inery giving the standard product.

BIBLOGRAPHY

1) Persons:
Caption Taimor Anis Akram baig Page | 75

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Internship Report 2010

Assistant Manager (HR) Goth Machii

Major Nadeem Asgher Assistant manger (leagal and labor affairs) Goth Machii

Syed Aon Muhammad Bukhari 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 Page | 76

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Internship Report 2010

AM (LLA) DM (HR) AM (HR) JE (HR) SSR (HR)

assistant manger (legal & labor affairs) deputy manager (human resource) assistant manager (human resource junior executive (human resource) senior supervisor (human resource)

CSR (HR) chief supervisor (human resource)

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Department of management sciences

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