Report on

compensation
Submitted to: Mam Iqra Megsi

Submitted by:
Usama tanveer
Mujahid abbas
Zeeshan azam
MBA(HRM) 5th sem

Introduction of Al-Hilal Industries

pvt.ltd

History of Al-Hilal:
Al-Hilal was established in 1960 and it launched its first product in 1962 that was Sultan Banaspati
cooking oil.
Then they launched beverages like

FRESHER fruit juice

BLU Water
VERVE smart Water
KOOLER brio Energy Drink
Palm Oil, Ghee, Cooking Oils, Juices, Mineral Water, Seeds, Soaps

Vision of Al-Hilal:
They want to become food leaders by spreading the smiles and freshness

Mission of Al-Hilal:

We care the health of our customers by providing them, wherever they live

Goals of Al-Hilal:

To utilize maximum production capacity

To improve the efficiency of employees
To increase market shares in Pakistan
To develop long lasting good relationships with distribution dealers
To dispose and utilize the wastage in a better way

Nature of the organization:

Manufacturer
Importers

Product line of Al-hilal:

FRESHER fruit juice

BLU Water mineral water
VERVE smart Water
KOOLER brio Energy Drink
Palm Oil
Ghee
Cooking Oils
Seeds
Soaps

Competitors:

Nestle
Shezan

Organization structure:

Reporting the existing compensation in the organization:

Seniority pay system
Annual increase in remuneration of an employee is made in the 1st of April every year. This
increase is subject, however to the performance of the individual during the preceding period. In
case, if an employee improves his qualification in line with his duties, he is allowed and
increment in his regular grade.

Human Resource Department (HR)

HR department is also called Personnel Department since its different sections perform most of the HR
activities.

HR department consists of the following sections which perform different tasks

regarding factory workers as well as employees of other grades:
1. Time Office & Establishment
2. Legal Cell
3. Labor Welfare
4. Canteen/Mess
all these sections are interlinked and work in collaboration with each other like a
team to perform the HR duties efficiently and effectively. They are doing the HR best to
improve individual as well as departments productivity.

Structure of HR Department
Welfare officers
HR Manager
Assistant Manager (Welfare)(Personnel Officer (Law)
Personnel officers (Payroll Section)
Personnel officers (Incentive Section)
Assistant Manager (Compensation &Establishment)

Functions of HR Department
Recruitment and selection
Maintaining and updating Personnel record
Monitoring Payroll Process
Monitoring Attendance record
Planning work for Employees
Training and Development
Conducting Performance Evaluation and Appraisals
Handling legal aspects
Labor Welfare
Keeping record of JDs of all employees

Compensation Management
Maintaining Management Labor Relations
Maintaining Discipline
Supervising and handling all issues related to internee

Job Analysis
Job analysis a detailed study of a particular job, the tools and equipment needed to do it, and its
relation to other jobs in an organization. The analysis should also provide the information needed
to say how the job should best be done and the qualifications, experience, or aptitudes of the

person best suited to doing it. Data is usually collected by questioning those already doing or
supervising the job and is subjected to various forms of interpretation by a job analyst. Accurate
job analysis is crucial to effective job evaluation, employee evaluation, and personnel selection.

Job analysis methods

Methods of collecting job analysis information include:

OBSERVATION METHODS
Methods of observation include direct observation, work methods analysis, critical
incident technique.

Direct observation
Direct Observation is a method of job analysis to observe and record behavior /
events / activities / tasks / duties while something is happening.

Work methods analysis

Work methods analysis is used to describe manual and repetitive production
jobs, such as factory or assembly-line jobs. Work methods analysis includes time
and motion study and micro-motion analysis.

Critical incident technique (CIT model)

Critical incident technique is a method of job analysis used to identify work
behaviors that classify in good and poor performance.

INTERVIEW METHOD

Interview method is a useful tool of job analysis to ask questions to both

incumbents and supervisors in either an individual or a group setting. Interview includes
structured Interviews, unstructured interview, and open-ended questions.

QUESTIONNAIRE METHODS
Questionnaire methods include techniques as follows:

Position Analysis Questionnaire (PAQ model)

PAQ model is a questionnaire technique of job analysis. It is a structured
instrument of job analysis to measure job characteristics and relate them to
human characteristics.

Functional job analysis (FJA model)

FJA model is another technique of job analysis.

Work Profiling System (WPS model)

WPS model is a questionnaire technique of job analysis, is a computer administered system for
job analysis.

Job Description
job description, or job profile, is an official document which states detailed
specifications of duties to be performed, responsibilities, and working conditions
and indicates what is expected of a job holder. A job specification is a profile of

the human characteristics needed for the job, such as education, training, skills,
experience, and physical and mental abilities.

Employee Compensation and Benefits

Compensation means all forms of financial returns and tangible services and
benefits which employees receive as part of an employment relationship.
Organization has well established compensation program. For company, the
resources running Al-Hilal are not machines, but the people. It does not seek
employees but seek people who will think, feel, express themselves, learn, teach, and
grow with it. The HR growth is the company's growth. Al-Hilal Ltd has designed an
impressive range of facilities and services to free its people from worries and allow them
personal and professional freedom.

Mode of payment on monthly basis

Employees working in the offices/ security/transport and those performing supervisory
nature of jobs on the process are paid on monthly basis.

Remuneration
the Remuneration includes:

Basic Pay
Basic salary is an amount which is paid to an employee in accordance with the
grade in which he / she is placed.

Conveyance Allowance
this is also paid to all employees. Employees are also offered the option of
buying vehicles at reduced prices.

Cost of living Allowance

As per law employees are entitled to Cost of living allowance

Utility Allowance

Benefits in shape of Allowances

Supervisory Allowance
all the employees having supervisory nature of job and are in grade IV, V and JE
are entitled to supervisory allowance as stipulated in the grades.

Night Shift Allowance

all the employees up to junior executive grade are allowed night shift allowance
while performing night shift duty.

Shoe Allowance
Production employees up to JE and office employees up to Grade-V are allowed
shoe allowance which is paid in the month of July every year. Workers of the technical
division are provided safety shoes where the nature of duties so demand.

Employment Benefits
Bonus
A cash bonus is paid annually to all employees subject to the profitability of the

Company at the end of its financial year i.e. 31st December.

Provident Fund
On confirmation, the permanent employee becomes the member of Al-Hilal
Employee Contributory Provident Fund and contributes 10% of the basic pay plus cost
of living allowance earned by him in a respective month and an equal amount is
accredited to the name of the employee by the Company. An employee is entitled to
take loans on refundable and non-refundable basis from his provident Fund.

Workers participation fund

all the employees covered under the workers Profit Participation Act are paid
some %age of the profit as specified there under.

Telephone facility
In order to ensure that key executives are available in case of emergency, the
Company encourages them to have telephone at the HR residence for which they are
allowed part re-imbursement of the HR telephone bills.

Motorcycle loan facility

All permanent employees are eligible to take loan from this scheme in
seniority basis. The company arranges for the loan from the Bank which is re-paid in
monthly installments along with the interest thereon.

Service Award
On the completion of 20 years, 25 and 30 years service, Company gives gifts as
a token of its appreciation of continued association and loyalty of employee with
management.

Annual Increment

Annual increase in remuneration of an employee is made in the 1st of April every

year. This increase is subject, however to the performance of the individual during the
preceding period. In case, if an employee improves his qualification in line with his
duties, he is allowed and increment in his regular grade.

Leave entitlement
Annual leave
Casual leave
Medical leave
Hajj leave
Compensatory leave

Benefits in Shape of Incentives

Attendance allowance
All the employees are given attendance allowance as specified in
the Rules provided they have not:Reported late for duty by 15 minutes for more than 3 days in a month
Availed more than 3 casual leaves
Availed leave without pay or social security leave:
Absented for any day in a month

Production incentive
The management has set up a production incentive scheme for various machines or jobs as the

case may be. To motivate employees for higher production a certain base rate i.e. minimum
required production, for a machine/ job, for a specified period, has been fixed.

Retirement Benefits
Employees' Old Age Benefit Scheme
The Company contributes a percentage of workers' wages towards this
government scheme, which ensures a reasonable pension on retirement.

Management Staff Pension Fund

all the employees up to JE and above are eligible to become on confirmation, the
member of Management Staff Pension Fund. For the purpose, he or she has to submit
application form for it. On becoming a member, the employee shall be called upon to
contribute 4% of his basic salary towards the fund every month. The Management shall
also contribute an amount which is determined by the Actuary.
In case of death 50% of pension is given to widow and 20% to children (each)
under age of 21.

Gratuity
It is paid to the employee in case of retirement, termination, resignation or death. It is paid
provided an employee has completed 10 years continuous service with the company. But it is not
paid on dismissal of the employee.

Personal Services and Family-Friendly Benefits

Loan Facility

Employees are facilitated with the opportunity of loan that they can get from the HR
provident fund.

Sports & family Meal

The management strongly believes in the maxim a healthy body has a healthy
mind. It has facilities for practically all the sports and tournament is held every year and
the winners as well as the losers are given handsome prizes. In the same spirit,
management arranges a family Meal for the families of workers. The prizes for the
annual sports are distributed in a gala function which is arranged for this very reason.

Insurance Benefits
Group Insurance
All the confirmed employees are insured under the Group Term Insurance Policy
by the Company. Under this Group Insurance Policy, an employee is entitled to
compensation from the State Life Insurance Company in case of death and disablement
as stipulated under the Policy.

Employee contributory welfare funds

The Company establishes a welfare fund wherein all the permanent employees
are eligible to become member. All members are required to contribute a nominal
amount towards the fund and the company contributes an equal amount.

Executive Staff Minimum Gross Salary

Designation

Gross Pay

HR manager

35000-40000

Assistant manager

28000-30000

Personnel officers(payroll section)

19000-21000

Personnel officers(incentive section)

15000-18000

Assistant manager(compensation &

30000-33000
establishment)