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HUMAN RESOURCES MANAGEMENT 2

HUMAN RESOURCES MANAGEMENT HUMAN RESOURCES MANAGEMENT COMSATS Institute of Information & Technology M.A Jinnah Campus, Lahore. Acknowledgment 2

HUMAN RESOURCES MANAGEMENT First of all we thank Allah Almighty the most beneficent and merciful who gave u s strength, patience and inspiration needed to complete this task, which is esse ntial requirement for the completion of our project. We would like to acknowledg e, MAM FUKAIHA KAKAKHAIL It was only due to his guidance, we had the opportunity to gain the latest handon knowledge conducting ON NAUBAHAR BOTTLING COMPANY We are also very thankful to all our fellows who Guide us in all The manners we required. Executive summary 2

HUMAN RESOURCES MANAGEMENT PepsiCo, Inc., incorporated in 1919, manufactures, markets and sells soft drinks and concentrates, and snack foods. PepsiCo and its divisions and subsidiaries o perate in three business segments: Worldwide Snacks, Worldwide Beverages and Qua ker Foods North America (QFNA). The Company's snack food business is comprised o f two business units: Frito-Lay North America (FLNA) and Frito-Lay International (FLI). The Company's beverage business is comprised of three business units: Pe psi-Cola North America (PCNA), Gatorade/Tropicana North America (GTNA) and Pepsi Co Beverages International (PBI). On August 2, 2001, the Company completed a mer ger transaction with The Quaker Oats Company (Quaker) whereby Quaker became a wh olly owned subsidiary of PepsiCo. 2

HUMAN RESOURCES MANAGEMENT DEDICATION Our Honorable Teachers & Loving Parents Whose, Love, Affection, Motivation, Pati ence, Support & Spiritual Inspiration Give us Encouragement, To all those People who have quenched for Knowledge, To all those who have dedicated their lives to others, To all of those who have served and sacrificed for Sake of Freedom To a ll of those people, they may be gone now But they will never be 2

HUMAN RESOURCES MANAGEMENT Forgotten.... Table of Content Mission statement Vision Pepsi introduction and future planning Pepsi slogan and logo Organizational structure Delivery system Direct delivery In direct delivery Departments Operating department Production department Human resource department

Structure of human resource department Major functions Planning and forecasting Planning Human resource planning Human resource planning process ernal supply 2

Forecasting

Ext

HUMAN RESOURCES MANAGEMENT

Internal supply

Forecasting human resource demand

Job description Job description process Job identification Job summary Responsibilities and duties Standard of performan ce Working condition Authority and incumbent Job specification Specification for trained personnel Specification for untrained personnel ication based on judgment Specification based on statistical analysis Recruitment and selection process Recruitment in Naubahar bottling company Major sources Types Candidates Newly hired Training and development Basic model GAP Structure need 2 Specif

HUMAN RESOURCES MANAGEMENT Application process Model of result oriented needs assessment Compensation manag ement Compensation Reward system Salary Probation period Rent Medical care Social security card Transportation

Changes within the organization Promotion Transfer Demotion Separation Lay off Retirement Leave system Casual leave Resignation Annual leave

Medical leave

Weakness in human resources department Observations and suggestions 2

HUMAN RESOURCES MANAGEMENT Recommendations Glossary MISSION STATEMENT The mission is to produce PepsiCo quality beverages, maintain market leadership b y growing our sales volumes, strengthen our market share, delivering ROI to all of its stakeholders and fulfill its responsibilities in the community. 2

HUMAN RESOURCES MANAGEMENT VISION STATEMENT 2

HUMAN RESOURCES MANAGEMENT The Vision of the company is to continue to build a strong company which is the n umber one beverage company in Pakistan and provides value to all of its stakehol ders. PEPSI IN PAKISTAN Pepsi cola is also very popular in Pakistan thats why its market share is about 9 0% in the soft-drink market. Pepsi Cola International, a remarkable name in the cola industry is doing its business in Pakistan through franchising. PCI has dev eloped following bottlers in Pakistan till now. Naubahar Bottling Company is the largest manufacturer and distributor of Pepsi Cola soft drinks in Pakistan. 2

HUMAN RESOURCES MANAGEMENT These franchises are located in PAKISTAN Karachi Lahore Multan Faisalabad Gujranwala Peshawar Islamabad Sukkher

Hyde

Naubahar bottling company (NBC) Pvt. Ltd. Gujranwala Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of Pep si Cola International in Pakistan. Naubahar Bottling Co. (Pvt.) Ltd. (NBC) first was involved in the business of manufacturing and marketing of Coca-Cola. Later on it started 2

HUMAN RESOURCES MANAGEMENT manufacturing and marketing business with Pepsi Cola in May 27, 1981. The Area a llotted to it, was Gujranwala Franchise. The franchise area consists of the foll owing nine districts. Gujranwala Gujrat Hafizabad Mandibghaud Jehlum Sialkot Narowal Sheikhupura al The company operates through a well-established network of a number of distribut ors. The company has two types of delivery systems i.e.

Direct delivery system Indirect delivery system The basic difference between the direct and the indirect delivery system is that in a direct distribution system, the company spends its own resources while in an indirect distribution; the dealer spends his own resources on all the factors which increases the sales volume: DIRECT DELIVERY SYSTEM 2

HUMAN RESOURCES MANAGEMENT Manufacturer Retailers Customers INDIRECT DELIVERY SYSTEM Manufacturers Customers distributor Retailers Most importantly, this direct delivery system is present only in Gujranwala fran chise in Pakistan. The company also has its depots (remote depots) in different cities. It helps a lot in increasing its sale and directing the distribution sys tem. They are in Sialkot Gujrat Shahdara Jehlum Sheikhupura Narowal HISTORY AND FUTURE PLAN THE SUMMER OF 1898, AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTH CAROLINA. SO A YOUNG PHARMACIST NAMED CALEB BRADHAM BEGAN EXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES, AND SYRUPS TRYING TO CREATE A REFRESHING NEW 2

HUMAN RESOURCES MANAGEMENT DRINK TO SERVE HIS CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INV ENTED THE BEVERAGE KNOWN AROUND THE WORLD AS PEPSI-COLA. Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathe ring place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Peps i-Cola," and advertised his new soft drink. People responded, and sales of Pepsi -Cola started to grow, convincing him that he should form a company to market th e new beverage In 1902, he launched the Pepsi-Cola Company in the back room of h is pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountain. He mixed the syrup himself and sold it exclusively through soda fountains. But soon Cale b recognized that a greater opportunity existed to bottle Pepsi so that people c ould drink it anywhere. 1903, "Pepsi-Cola" was officially registered with the U. S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franch ises to bottle Pepsi to independent investors, whose number grew from just two i n 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the followi ng year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states. Pepsi-Cola's first bottling line resulted from some less-thansophist icated engineering in the back room of Caleb's pharmacy. Building a strong franc hise system was one of Caleb's greatest 2

HUMAN RESOURCES MANAGEMENT achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornersto ne of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year. 1898 Caleb Bradhams, a New Bern, North Carolin a, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to ser ve his drugstore's fountain customers. The new name, PepsiCola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on Augu st 28. 1903 In keeping with its origin as a pharmacist's concoction, Bradham's a dvertising praises his drink as "Exhilarating, invigorating, aids digestion." 19 05 A new logo appears, the first change from the original created in 1898 1920 P epsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you." 1938 Th e trademark is registered in the Soviet Union. 1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A P epsi canteen in Times Square, New York, operates throughout the war, enabling mo re than a million families to record messages for armed services personnel overs eas. 1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is a gain updated. 2

HUMAN RESOURCES MANAGEMENT 1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign. 195 8 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitc hen cola," as a consequence of its longtime positioning as a bargain brand, Peps i now identifies itself with young, fashionable consumers with the "Be Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier stra ight-sided bottle. 1963 In one of the most significant demographic events in com mercial history, the post-war baby boom emerges as a social and marketplace phen omenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Gen eration" makes advertising history. It is the first time a product is identified , not so much by its attributes, as by its consumers' lifestyles and attitudes. 1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising. 1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin ' Free" captures the mood of a nation involved in massive social and political c hange. It pictures us the way we are-one people, but many personalities. 1976 "H ave a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving nat ional mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic. 1982 Wit h all the evidence showing that Pepsi's taste is superior, the only question rem aining is how to add that message to Pepsi 2

HUMAN RESOURCES MANAGEMENT Generation advertising. The answer? "Pepsi's got your Taste for Life!" a triumph ant celebration of great times and great taste. 1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas again st Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby." 1991 "You got the Right one Baby" is modified to "You got t he Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singe rs and a campaign soon to become the most popular advertising in America is on i ts way. Supermodel Cindy Crawford stars in an award-winning commercial made to i ntroduce Pepsi's updated logo and package graphics. 1992 Celebrities join consum ers, declaring that they "Gotta have it." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mo untain Dew growth continues, supported by the antics of an outrageous new Dew Cr ew whose claim to fame is that, except for the unique great taste of Dew, they'v e "Been there, Done that, Tried that." 1993 "Be Young, Have fun, Drink Pepsi" ad vertising starring basketball superstar Shaquille O'Neal is rated as best in U.S . 1994 New advertising introducing Diet Pepsi's freshness dating initiative feat ures Pepsi CEO Craig Weather up explaining the relationship between freshness an d superior taste to consumers. 1995 In a new campaign, the company declares "Not hing else is a Pepsi" and takes top honors in the year's national advertising ch ampionship. In 2000 PepsiCo sales are $20 billion and the company has 125,000 em ployees at year 2

HUMAN RESOURCES MANAGEMENT Now Pepsi is available in more than 200 countries of the world. Pepsi slogan and logo 1902 Brad's Drink 1903 1906 1908 1915 1919 1920 1928 1929 1932 1933 1934 1938 1939 1943 1947 1949 1954 Exhilarating, Invigorating, Aids Digestion Original Pure Food Drink Delicious an d Healthful For All Thirsts - Pepsi: Cola Pepsi: Cola - It makes you Scintillate Drink Pepsi: Cola - It Will Satisfy You Peps You Up! Here's Health! Sparkling, Delicious It's the Best Cola Drink Double Size Refreshing and Healthful Join the Swing to Pepsi Twice as Much for a Nickel Bigger Drink, Better Taste It's a Gre at American Custom Why Take Less When Pepsi's Best? The Light Refreshment 2

HUMAN RESOURCES MANAGEMENT Refreshing Without Filling 1958 1961 1963 1967 Be Sociable, Have a Pepsi Now It' s Pepsi for Those Who Think Young Come Alive! You're in the Pepsi Generation Tas te that Beats the Others Cold, Pepsi Pours It On. You've Got a Lot to Live, Peps i's Got a Lot to Give Join the Pepsi People Feelin' Free Have a Pepsi Day! Catch That Pepsi Spirit Take the Pepsi Challenge Pepsi's Got Your Taste for Life Peps i Now! The Choice of a New Generation America's Choice A Generation Ahead Gotta Have It Be Young, Have Fun, Drink Pepsi Nothing Else is a Pepsi Generation Next Same Great Taste The Joy of Cola The Joy of Pepsi 1969 1973 1976 1979 1981 1983 1984 1987 1989 1992 1993 1995 1997 1998 1999 2000 2

HUMAN RESOURCES MANAGEMENT 2003 Pepsi. It's the Cola 2010 Yes you can Organizational structure 2

HUMAN RESOURCES MANAGEMENT Managing Director Director General Manager Sales Manager (Local Sales) Sales Manager (Out Sales) Plant Manger Marketing & Services Manager Producti on Manager Purchas Purchas e e Manage Manage r r QC Manager HR Manage r Audit Manage r Finance Manager MIS Manage r Shippin g Manage r Store Manag er S&D Mangers Assistant Manager Marketing & Services Publicity Manager 2

HUMAN RESOURCES MANAGEMENT MAIN PRODUCTS OF PEPSI Pepsi Diet Pepsi Pepsi Vanilla Diet Pepsi Vanilla Pepsi One Pepsi Twist Wild Che rry Pepsi Mountain Dew Code Red Aquafina Mirinda The flagship product and the be st tasting beverage there is. Great taste, with only one calorie. Fresh new Vani lla taste Fresh new Vanilla taste with only one calorie Great tasting with only 1 calorie. Adds a twist of lemon to the great Pepsi taste. Adds the flavor of ch erry to the great Pepsi taste. Crystal clear and refreshing. Mountains product Bo ttled water. Fruit drink. DEPARTMENTS (1) OPERATING DEPARTMENTS Procurement store Raw material purchase General purcha ses Purchase process Domestic and foreign purchase (2) PRODUCTION DEPARTMENT Quality control Water treatment 2

HUMAN RESOURCES MANAGEMENT Process of empty bottling filling Process of washing bottles

(3) H.R.M DEPARTMENT Structure of H.R.M Department No of employees work R.M Department Functions of H.R.M Department Human Resource Planning and Forecas ting Human Resource planning process Recruitment and selection Employees Selecti on Process Recruitment Process in NBC Model of result oriented need assessment T raining in NBC Organizational management STRUCTURE OF HR DEPARTMENT Assistant to H.R Manager (H.R Executive) Assistant to H.R Manager (H.R Officer) 2

HUMAN RESOURCES MANAGEMENT H.R Helper Number of employee working in the H.R.M Department: Almost three employees worki ng under the Human Resource Manager but on the other hand 2500 employees working in PEPSI (Naubahar Bottling Company) also manage the H.R department with the co ordination of the each department. Major Functions Human Resource Planning and Forecasting 1. HUMAN RESOURCE PLANNING: Human Resource Planning Parallels the plans for the business as a whole. HRP foc uses on questions such as these: i. ii. What do the proposed business strategies imply with respect to human resources? What kinds of internal and external cons traints will (or do) we 2

HUMAN RESOURCES MANAGEMENT face? iii. What are the implications and for staffing, and compensations Managem ent practices, succession? iv. What can be done in the short run (tactically) to prepare for long term (strategic) needs? training development, Although HRP means different things to different people, general agreement exist on its ultimate objective-namely the most effective use of scarce talent in the interest of the worker and organization. Thus we may define HRP broadly as an e ffort to anticipate future business and environmental demands on an organization , and to provide qualified people to fulfill that business and satisfy those dem ands. This general view suggests several specific. Interrelated activities that together constitute an HRP System. They include: A talent inventory: A talent inventory to assess current human resources (skills , abilities, and potential) and to analyze how they are currently being used. Human Resource Forecast: 2

HUMAN RESOURCES MANAGEMENT Human resource forecast to predict future HR requirements (the number of worker needed, the number expected to be available based on labor market characteristic s, the skills mix required, internal versus external labor supply)

Action Plans: Action plans to enlarge the pool of people qualified to fill the projected vacancies through such actions as recruitment, selection, training, placement, Transfer, promotion, development, and compensati on.

Control and evaluation: Control and evaluation to provide feedback on the overal l effectiveness of the human resource planning system by monitoring the degree of attainment of HR objectives. Human Resource Planning Process Issues Analysis Business needs External Factors Internal supply 2

HUMAN RESOURCES MANAGEMENT Forecasting Requirements Staffing levels Staffing mix (Qualitative) Action Plans Staffing authorizations Recruitment Promotions and transfers Organizational chan ges Training and development Compensation and benefits Labor relations Human Resource Forecasts: The purpose of human resource forecasting is to estima te labor requirements at some future time period. Such forecasts are two types. The external and internal supply of labor and 2

HUMAN RESOURCES MANAGEMENT The aggregate external and internal demand for labor o EXTERNAL AND INTERNAL SUPPLY Forecasting External Human Resource Supply Recruitment and hiring new employees are essential activities for virtually all firms, at least over the long run. Whether they are due to projected expansion o f operations or to normal workforce attribution, forays into the labor market ar e necessary. Managers in (PEPSI) Naubahar Bottling Company pay especially close attention to forecasts of HR supply. Forecasting Internal Human Resource Supply A reasonable starting point for projecting a firms future supply of labor is its current supply of labor. Perhaps the simplest type of internal supply forecast i s the succession plan, a concept that has been discussed in the planning literat ure for over 25 years. Succession plans may be developed for management employee s, non management employees, or both. The process for developing such a plan inc ludes setting planning horizon, identifying replacement candidates for each key position, assessing current performance and readiness for promotion, identifying career development needs, and integrating the career goals of individuals with company goals. JOB DESCRIPTION 2

HUMAN RESOURCES MANAGEMENT Job description also provide on the basis of the designation. Job description fo rm also provides in the written form to the each department according to the des ignation of the employees then each department provides job description to their employees. Here the pay professional should standardize and complete the job de scription that were found to be lacking or missing during the initial audit and review. Job description will serve as and anchor for the pay professional .They will provide a comprehensive understanding of the organization and will serve as the initial basis for job evaluation. A written statement of what the worker ac tually does how he or she does it and what the jobs working conditions are Sectio n of a typical job description; t 2 Job identification Job summary Responsibilities and duties Standards of performance Working condition Authority of incumben

HUMAN RESOURCES MANAGEMENT Job specification JOB IDIENTIFICATION; JOB SUMMARY; Job title FLSA status section Preparation date Prepared by Describe the general nature of the job Lists the major function or activities RESPONSIBILITIES AND DUTIES; A list of the jobs major responsibilities and duties defines limits of jobholder decision making authority, direct supervision and budgetary limitation. STANDARD OCCUPTIONAL CLASSIFICATION; Classifies all workers into one of 23 major groups of jobs which are subdivided into further 96 minor groups of job and detailed occupations. STANDARED OF PERFORMANCE AND WORKING CONDITION Lists the standard the employees expected to achieve under each of the job descr iptions main duties and responsibilities. Job description use for: 2 New position For promotion

HUMAN RESOURCES MANAGEMENT Recruitment Transfers ning and Development Performance Management Career Planning Staff Planning Trai

Steps in the Job Description Process Determine Method of collecting Data Design the Questionnaire Identify the Appropriate incumbent Review and Rewrite Write the Draft process or Results Conduct the Interview 2

HUMAN RESOURCES MANAGEMENT Obtain Approval of Incumbent and supervisor JOB SPECIFICATION Specification for trained personnel Specification for untrained personnel ication based on judgment Specification based on statistical analysis Recruitment and Selection; A. Recruitment as a Strategic Imperative: Recruitment is a form of business competition. Just as corporations complete to develop, manufacture, and market the 2 Specif

HUMAN RESOURCES MANAGEMENT best product or service, so they must also complete to identify, attract, and hi re the most qualified people. Recruitment is a business and it is big business. It demands serious attention from management, for any business strategy will fal ter without the talent to execute it. Certainly, the range of recruitment needs is broad. A small manufacturer in a well-populated rural area faces recruitment challenges that are far different from those of a high technology firm operating in global markets. B. The Employee Recruitment and Selection Process: Job analysis Specification of people/task Requirements of jobs Human Resource Planning Specification of human resources Requirements Recruitment A pool of qualified candidates 2

HUMAN RESOURCES MANAGEMENT Initial Screening A smaller pool of qualified candidates Selection New Employees Orientation Understanding of Company / Departmental policies, procedures And benefits Placement Optimal match of employee talents With organizational needs Training Competence to perform present or 2

HUMAN RESOURCES MANAGEMENT Future requirements Job Performance Appraisal Feedback regarding past and Present for the future job performance supervisor/ subordinate plans RECRUITMENT PROCEDURE IN NAUBAHAR BOTTLING COMPANY Major sources of potential job candidates are Newspaper Adds oyees of NBC) 2 Internal Search Advertisement Employees Referrals (Permanent Empl

HUMAN RESOURCES MANAGEMENT Types of Recruitment Permanent Recruitment Intermediate) (Minimum Requirement Daily Wages year) Contract

(At least Metric) (Graduation and Master for one The candidates are selected on the basis of Interview by HR Manager Interview by Factory Manager rtment Head Final Interview by MD/Director Check list for newly hire employees N.B.C application form Application (own hand written) Original Resume opies of academic certificates Four number of photographs (passport size) evidence 2 Attested c Salary Interview by Concerned Depa

HUMAN RESOURCES MANAGEMENT Two reference with complete name, address, Designation and contact number Driving license of the employee Interview evaluation form and test result

Training and Development Training Need Assessment A. Basic Model It shows that in defining training needs we have to start by identifying and com paring two levels of performance: the standard (desired, optimum, future, planne d) performance level (PS) performance (pc). The difference performance gap. and the current (existing real) these two levels is the between B. Defining the gap between current and desired performance The identification of current performance starts by fact-finding, which consists of collecting information indicative of performance, describing and measuring i t. For example, the plant utilization may be chosen and measured as global indic ator of performance. The related competence 2

HUMAN RESOURCES MANAGEMENT problems of production managers may be in areas of production scheduling and con trol, maintenance management, quality improvement and purchasing. Factors other than the production managers competence (calling for non-training s olutions) may include a shortage of foreign exchange, the absence of any bonus s ystems for stimulating better utilization of plant, and so on. C. Structure of the needs In applying the approaches described above, it is useful to be able to refer to clear and generally acceptable ways of structuring the training and development needs. This help to avoid confusion in what is meant by needs, and endless debat es on the differences between performance and competence, and so on. In particul ar, it is useful to differentiate between the levels of organizational performan ce, individual behavior and performance, and competence, this consist with the p ostulate that training must be performance and result oriented.

Organizational performance Individual behavior and performance Competence APPLICATION PROCESS 2

HUMAN RESOURCES MANAGEMENT Transfer in Attendance & Leave Register Application Form Application Process Submitted in Time Office Check by time office availability of leaves Fill up and Signature of Department Head 2

HUMAN RESOURCES MANAGEMENT Model of results oriented needs assessment Spotting organizational problems Tracing problems to their main causes and areas Recognizing individual (group) performance problem Job analysis Performance appraisal Determining performance improvement needs Separating Training from non training solutions 2

HUMAN RESOURCES MANAGEMENT Training needs and solutions Non-Training needs and solutions COMPENSATION MANAGEMENT Compensation At a broad level, and organizational reward system includes any thing and employ ee values and desires that an employer is able and willing to offer in exchange for employee contribution. More specifically, the reward system includes both fi nancial and no financial Rewards. Financial rewards include direct payments (e.g . salary) plus indirect payments in the form of employee benefits. Compensation program also manage in the time office. Salaries are paid to the daily wages, co ntract and permanent employees according to their designation. Salaries and plus benefits also provide to the employees. REWARD SYSTEM Financial Non Financial 1. Pension (60 years) Maintenance 2. Direct Payments (Salaries) 3. Bonus (Three Basic Pay Annually) Supervision 1. Petrol + 2. Protection Program 3. Effective 2

HUMAN RESOURCES MANAGEMENT 4. Accommodation 5. Utilities bills 6. Vehicles SALARY Salary of all the workers permanent and temporary (Daily Wages) is prepared in t ime office with the help of attendance register. Salary of permanent employee is prepared at the last of month and the salary of daily wages workers twice a mon th. The increment is made when a worker complete one year in service. Following deductions are made for preparation of salary. The increment is made when a work er complete one year in service. Following deductions are made for preparation o f salary. Salary Preparation Daily Wages Permanent Basic (daily wages) Rs. 81 Basic gross pay CLA- 1 Rs. 4 Pay 66.7 % of 2

HUMAN RESOURCES MANAGEMENT House Rent 40% of basic Pay CLA- ii Rs. 2 Convene Allowance Rs.3oo/CLA- iii Rs. 7 Other Allowances Rs.3oo/Special Excreta Rs. 7 EOBI Rs. 30/- (Deduct) Adhock Reli ef Rs. 14 EOBI& (Company) ESSI 6% Total 116 Rs. PROBATION PERIOD: In the Naubahar bottling company the probation period of new employee is three t o six months in the probation period employee work routine wise. There is no lea ve granted during the probation period. 2

HUMAN RESOURCES MANAGEMENT In the probation period employee efficiency and effectiveness has been check the permanent recruitment depends on the efficiency and effectiveness of the employ ee. The probation period is necessary for the newly hire employee it is the basis for permanent employee if the probation peri od of the employee is satisfactory the employee will be hire permanently if the probation is not satisfactory level then the employee will be dismiss. During th e probation period the salary will be given to the selected candidate the salary will be start from the first month.

RENT OR RESIDENCE FACILITY: Rent or resident facility is given by company to those employees who are from ou t of station/town/city. And their rent is paid by company.

MEDICAL CARE: The company provide the facility of Social security card to the employee both pe rmanent and daily wages. This card is issued by the Employee Social Security Ins titute (ESSI). With this card an employee gets a lot of benefits with pay anythi ng. The social security card is allotted to these candidates whose pay is up to 5ooo/-. Following documents are required to achieve the social security card. Social Security Card 2

HUMAN RESOURCES MANAGEMENT Application to the factory manager ID card of Employee Detail of depended person s Registration Card (ESSI) Affidavit of Parents Form Medical Fitness Form ID Car s of Dependents Persons TRANSPORTATION: Transportation allowance is given to only permanent employees which is included in their salary. The amount of conveyance allowance vary from job to job depend on status of job. Transportation allowance is included in their salary in the na me of CONVEYANCE ALLOWANCE. CHANGES WITHIN THE ORGANIZATION Promotion Transfer Demotion 2

HUMAN RESOURCES MANAGEMENT 1. Promotion Promoted employees usually assume greater responsibility and authority in return for higher pay, benefits, and privileges, psychologically, promotions help sati sfy employees needs for security, belonging, and personal growth. Promotions are important organizational decisions that should receive the same careful attenti on as any other employment decision. Promotion in NBC An employee Promoted after three years services in NBC but only on permanent bas is. On the other hand if en employee has intermediate qualification and during t he job he complete his graduation he will be promote 2. Transfer Transfer function performs in NBC. There are two types of Transfer NOC Transfer without NOC Transfer with

Transfer With NOC If an employee transfer from department to any other department NOC is necessary for transfer. For example an employee transfer from production to shipping NOC is necessary for transfer. Transfer without NOC 2

HUMAN RESOURCES MANAGEMENT An employee can transfer from sale department to sale department without NOC. Fo r example an employee transfer from Gujranwala to Gujarat in sale department NOC is not necessary 2. Demotion Employee demotions usually involve a cut in pay, status, privilege, or opportuni ty, they occur infrequently since they tend to be accompanied by problems of emp loyee apathy, depression, and inefficiency that can undermine the morale of a wo rk group. For these reasons, many managers prefer to discharge or to move employ ees laterally rather than demote them. SEPRATION 1) Layoffs 2) Retirements(PENSION) 3) Resignations 1. Layoffs How safe is my job? For many people that is the issue of the late 1990s. It is b ecoming clear that corporate cutbacks were not oddity of the 1980s and 1990s, bu t rather are likely to persist. Involuntary layoffs are never pleasant, and mana gement policies must consider the impacts on those who leave, on those who stay, on the local community, and on the company 2. Retirements(PENSION) 2

HUMAN RESOURCES MANAGEMENT For selected employees, early retirement is possible alternative to being laid o ff. Early retirement programs take many forms, but typically they involve partia l pay stretched over several years, along with extended benefits. Early retireme nt programs are intended to provide incentives to terminate; they are not intend ed to replace regular retirement benefits. Any losses in pension resulting from early retirement are usually offset by attractive incentive payments. In NBC no early retirement is not possible pension are paid after retirement to those empl oyees who are more than 60 years of age. 3. Resignations Resignation, or voluntary worker turnover, has been increasing steadily over the past 15 years, particularly among white-collar and professional workers. Employ ees who resign should avoid burning their bridges behind them, leaving anger and resentment In their wake; instead, they should leave gracefully and responsibly , stressing the value of their experience in the company. In NBC early resignati on is possible who will resign from the company; he must deprive from the benefi ts of the company. LEAVE (NBC) Allot to SYSTEM\\VACATION CRITERIA: Like other multinational companies Naubahar Bottling Company the permanent staff different kind of leaves. Weekly rest day and other holidays declared by the Go vernment of Pakistan around the year enjoy every permanent employee of NBC. Exce pt all above leaves the company allotted the following holidays to the permanent workers. 2

HUMAN RESOURCES MANAGEMENT Causal Leaves When a permanent employee completes his probation period of three month (Extenda ble if required) he has awarded ten (10) causal leaves which one can avail in an y cause of emergency with full pay. A worker can not avail all the leaves (Expec t Special causes) at once he can maximum four (4) leaves can avail at once. Medical Leaves Sixteen (16) Medical leaves are given to the permanent employee for the period o f one year. A Permanent employee can avail these leaves with half pay. If the em ployee goes on leave for more then 4 leaves then he would have to present the Me dical certificate in which his disease and rest mentioned. ANNUAL LEAVES When a permanent employee complete his one year in this company, He is eligible to avail the fourteen (14) annual leaves for any visit purpose with his family w ith full pay. Mostly these holidays are allotted to the workers in off season. I f a worker did not avail these leave Then it transfers it into his account. But only two year vacations are recorded and two year it did not transfer to the previous balance. Leaves Against Over Time In Naubahar Bottling Company (NBC) at officer & supervision level did not pay ag ainst over time. He can change his overtime to a leave. Every body can not do ov er time. Only those persons those who are permitted by the department head. 2

HUMAN RESOURCES MANAGEMENT Types of Leaves Causal Leaves Medical Leave Annual Leaves Over time leave CRITERIA OF LEAVE APPLICATION When a permanent employee wants to a leave he gets an application form from the time office. First of all the time office staff checked that is there availabili ty of leaves in his account, if yes then the concern person marked the applicati on that many leaves in his account. After that the applicant fills up this appli cation for and then signature from hiss concern head of the department. After fi ll up this form submitted in the time office and the time office staff transfer it in the attendance and leaves register according to their department. OVER TIME APPLICATION To avail over time following process is completed by the applicant. INTIMATION FORM 2

HUMAN RESOURCES MANAGEMENT First of all a intimation form is filled by the applicant and then he go to his manager for sign that he is need to department for over time. After the signatur e of manager this for is submitted in the time office. OVER TIME/ALLOWANCE FORM Now after submitted the intimation form the applicant submit a form in the time office and the time office person transfer this from application to the over tim e register in which is against over time are recorded. WEAKNESSES IN HR DEPARTMENT 1. Policies have been developed but not implement. 2. The employees did not prom ote soon thats why employees leave the factory. 3. New employees salary is more th an old employees. 4. Lose the key employees because of the reference. 5. One per son handles all the recruitment procedure of the N.B.C which may be burden for h im. 6. HRM department in NBC is not working professionally .Only two to three pe rsons are handling all the work. H.R.M functions are more but employees working in H.R.M Department are less. OBSERVATINS AND SUGGESTIONS There should be proper planning by: generating human 2 Assessing current human resource standards &

HUMAN RESOURCES MANAGEMENT resources inventory. Assessing future human resources needs by organizations stra tegies & future programs. After assessing current capabilities of future needs a program should be developed to have right person for the right job & at right t ime. At the moment, HR department is itself facing staffing problem & it seems t o be non existent. The selection process through which candidates pass is very s low & time consuming pass is very slow and time consuming. Candidate have to sit day long waiting for management approval to start test & then. There is service of interviews which have no time table. It is generally three four days patienc e test & trouble some for candidates from other cities or already doing jobs. Fo r the medical bills and small loan employees need to get managing directors appro vals and then pass through a long procedure. It should be simplified. Department heads should be authorized to approved loans and medical bills up to a certain amount. Computer & job related aptitude test should also be made part of selecti on tests to have better job personality fit. Formal training is conducted but th at is due to ISO department not with the planning/efforts of HR department. Perf ormance appraisal has only once but it was a useless exercise because its result s were not used in future planning or changes. Performance appraisal should be c onducted: To know development & training needs of employees. To get performance feed back. Anticipate direction for future performance To change/ compensation s ystem. 2

HUMAN RESOURCES MANAGEMENT There is not idea of planned career development in NBC. Career development can be in term of job rotation, transfer & promotion. It improves th e organization's ability to attract of retain talented people, anticipating chan ge & helping employees to learn new skills and improve utilization of a personal abilities. Motivation is the willingness to exert high level of effort to reach organizational goals. The general level of motivation in NBC employees is very low and they are dissatisfied with their jobs and pay scales. Only best employee of the month program is implemented highlight employees whose work performance is excellent. There would be lobbies or affiliations in the organization. These should 2

HUMAN RESOURCES MANAGEMENT be canalized in positive approach e.g. mentoring, communication link instead of source of conflicts. Teams (functional, self-managed, cross functional, problem solving) should be to speed decisions, increase performance, facilitate cooperat ion & improve employee morale. There must be some channel to communicate employe es problem/suggestion/comments directly to top management e.g. suggestion box. Thes e suggestions should be discussed in quality control meetings. No attitude surve yor any internal research has ever conducted by the HR department to get. Employ ees in NBC are performing well but they have low level of motivation. Absenteeis m is controlled because total forty annual leaves are allowed but more important reason it that employees feel self responsibility. However the alarming indicat ors are turnover and job satisfaction. The organization is facing high turnover rate and employees are dissatisfied with their jobs and pay scales. Experienced staff is leaving the organization or searching for opportunities. With the kind attention and efforts of general manager & deputy general manager, the situation is improving. Qualified & young people are joining the organization. The pay sc ales of metric, intermediate & graduate employees are revised. However much more is needed to do in this regard. RECOMANDATIONS In PEPSI (NBC) Human Resource Department must expand the strength of its employe es 2

HUMAN RESOURCES MANAGEMENT Assess current human resource standards & generate human resources inventory. As sess future human resources needs by organizations strategies & future programs. To know development & training needs of employees. Anticipate direction for futu re performance Formal training conduct with the planning/efforts of HR departmen t. Perform all the functions of Human Resource Department more efficiently and e ffectively. GOLSSARY ESSI: EOBI: Employ Social Security Institute Employ Overage Benefits Institute TIME OFFICE: Establishment department is under the human resource manager. Time office of NBC is the part of establishment department. This office is lead by an office in charge under the guidance of factory manager (Head of Establishment D epartment). The 2

HUMAN RESOURCES MANAGEMENT main purpose of this department (Time Office) is to k eep record of the entire employee that is working in the Naubahar Bottling Compa ny (NBC) BEVERAGE: Any liquid suitable for drinking 2