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Overview of the Management Practices of (ORIENT Group of Companies)

Prepared for Imran Akbar Saifi

Managing Human Capital

Class: BBA (H) Section: A, Fall 2018

A Study Conducted by (Ismail Shahid, Umair Shahid, Smama Shakil, Midhat Awais, Abdullah

Hassan and Javed Iqbal ID’s: 15052005058, 15052005057, 15052005051, 15052005055,

15052005089 and 15052005070)

Submitted on: Thursday May 3, 2018

University of Management and Technology


Executive Summary

In this project we selected the company Orient Group of Companies to analyze their Human

Resource department and its role in organization. We made questions to conduct a brief interview

from HR head of Orient MR. Muhammad Arslan. We did the analysis of external and internal

environments of the Orient. We mentioned the background and history of Orient and also talked

about the Products and competitors. We also analyze about the Human Resource, Job Analysis,

Performance Appraisal, Employee Benefits, Recruitment and Selection Process of the organization

and Activities performed by the Human Resource department.

ORIENT GROUP OF COMPANIES

Introduction

Orient Electronics Pvt. Ltd, established in 2005, is one of the fastest growing consumer electronic

companies in Pakistan. With a wide range of home appliances, including Air Conditioners, Refrigerators,

LED TVs, Water Dispensers, Microwave Ovens etc., the company is proud to introduce modern

technologies in the industry at a very affordable price. A dedicated workforce, professionals and the

inspiring management leadership of Orient Electronics have powered the company to pursue its vision and

mission which lead to innovation.

Vision:

Our vision is to be an innovative company that is driven by modern and cutting-edge ideas and

concepts. We work and rework on ideas that could lead us to providing convenient, durable, lasting

and innovative consumer electronic goods to our valued customers.


Mission:

Our mission is to lead the consumer electronics goods industry in the country with quality

products. We aim to work on ideas that lead to innovative products resulting in a user-friendly

experience for the customer. Our products are constantly evolving to meet this objective.

Organizational Chart:

Departments of the Company:

Department Number of Personnel

Human Resource

Administration 318

Accounts and Finance 78

Sales and Marketing 110

Customer Services 242

Information Technology 30
Logistics 111

Production 1019

Imports 07

Part Time 16

Total 1931

External Environment

Description of Industry:

In 1957 the founder of Orient started the photography business in Lahore. In 1975 he started

importing. In 1983 Orient Colour Labs (Pvt) Ltd first company of the group was incorporated. In

1988 Resounding success in sales of imported products gave birth to M/S Orient Enterprises. In

1999 started import of lighting products from M/S Osram lighting of Germany. M/S Adnan

Corporation was set up for facilitating this business. In 2000 entered in Home Appliances business.

A dealership agreement with Mitsubishi electric was signed and for the first time Split Air

Conditioners were introduced in the country. In 2005 new manufacturing company with the name

of “Orient Electronics PVT. Ltd” was established on almost 250 KANALS with strategic

partnership of Mitsubishi Electric. In 2009 enter in manufacturing business by introducing

refrigerator in its product line. The major areas of export for Orient Electronics are Middle east

and Afghanistan. In 2012 Orient introduced Innovation-World’s 1st Glass Door Refrigerator with

LED TV. In 2013 Expanded their network by offering Franchise of Orient Centre. Orient also

signed nationwide/wise dealership agreement with M/S MIDEA Electric which is China’s largest
home appliances producing company. This brand name is marketed in Pakistan through the

network of MIDEA Home Appliances. In 2014 Introduce biggest innovation in the history of

Orient in form of Orient Android Smart TV.

Products/Services:

1. Air Conditioners

2. Refrigerators

3. Fans

4. Dispensers

5. LCD/LED Tv’s

6. Washing Machines

7. Vacuum Cleaners

8. Kitchen Appliances

Unique Products:

1. Pakistan first Quad core Android enabled LED

2. World’s first glass door refrigerator with LED Tv

3. Orient WIFI enabled Air Conditioner

Competitors:

1. PEL (Started in 1956, SAIGOL group 1978, Home Appliances 1981) compete Orient in Air

Conditioner

2. WAVES and DAWLANCE compete Orient in Refrigerators


3. Hair compete Orient Washing Machin, Tv’s, Air Conditioner

4. CHANGONG RUBA and Eco Star compete Orient in LED/LCD Tv’s

Labour Force Characteristics:

Orient hired the best candidates from top universities and white-collar candidates from recruiting

agencies. The labour force is effective and competent and is experienced by getting trained by

professionals for the field works.

Internal Environment

Work Force Characteristics:

Orient ensures the family environment for their employees; their owners sort out employee’s

problems as their own. If they have any difficulty in their work the owners provide training or help

them in the field, they motivate them to work more effectively.

SWOT ANALYSIS

Strength:

 International market coverage

 Market coverage within Pakistan

 Orient care

 Strategic Alliance

 Training & development (T & D)

 Product Line
 Cost of Production

 Aggressive Advertisement

 MEVRIS Methodology

Weakness:

 High staff turn-over

 R & D is weak

 Low storage capacity

 Manufacturing unit is not centrally located

 Raw material imported from China

Opportunities:

 Exponential increase in population

 E-Marketing

 Network Extension

 Public limited company

Threats:

 Intense competition

 Intervention of Chinese products

 Devaluation of Pakistan’s currency

 Burden of taxes by government to the manufacturers.

 Black Economy

 Technology
 Load Shedding, which ultimately increases the cost of production which reflects in

increased prices of products.

 Political instability

Human Resource Development

After taking the interview of the Head of HR Department of ORIENT MR. Muhammad Arslan

He responded to every questions that we asked about the Strategic human resource management,

Job Analytics, Recruitment and selection process of the organization, Orientation and training

process and procedures, performance appraisal, Compensation Management, Employee benefits,

Health and Safety Conditions and Career development.

THE INTERVIEW

CH 1 (HR DEPARTMENT AND ITS MANAGERS)

1)Basically, HR has a critical role in an organization. There are three major assets; first one is

human resource second one is technology and thirdly is the SOP (Standard Operating Procedure).

Human resource is managed by the HR department. In HR department there is hiring, talent

management and training & development. Even If one of these functions are not performed

properly the organization is going to suffer. That is why HR is very important in every

organization.

2)HR manager should be a quite open person who should have leadership skills, team management

skills and communication skills. These skills are important for a HR manager because they must

see all the organization rather than HR.


3)Talent management is a complete process from recruitment to employee career development

how to motivate and retain employees. In Orient the procedure we have is that we select the top

candidates from different top universities and then we evaluate them in a way and after evaluating

if they are eligible we hire them and try to retain them.

4)HR manager deals with line and staff manager in different ways through email, direct telephonic

communication, directly called to the department and many other ways like calling the supervisor

or the line manager to the office directly.

5)In reporting basically, line and staff manager report to head of department. There is a reporting

mechanism which is through email, hard form, verbally of daily operations to be concerned head

of department.

CH2 (STRATEGIC PLANNING & MANAGEMENT PROCESS)

1)There are many strategic plans of Orient, if we see specifically the strategy plan of HR

department of Orient. Strategically the core focus is on retaining the employees. Company has

taken many initiative like bringing the new performance management system with the help of third

party, it is going to take 1 and a half year to complete, some of it has been completed and some is

in process. When it is going to completed there is going to be employee retention and motivation

in performance management system this is the strategic initiative from HR perspective.

2)The company thinks strategically. The directors are more focused on outcomes how much is the

sales how much is the growth and how much is the production are. These things are linked with

everything. Let’s suppose the production of the fridges last year were 1000 and it required 10

resources, the management decides to double the production to 2000 so, we are definitely going to
increase the human resource, then we are going to need to train them accordingly and motivate

them and retention activities. So, these things are related to strategic decision of the company.

3)We are currently using digital dashboard, we do reporting and analysis on it. There is reporting

on digital dashboard and we also have ERP system implemented which is well known. In ERP

system there is also a system for reporting it is just done by a single click. By the HR analytics we

get to know about how much employees have left the company in this month, how many

employees are going to be retained and how many years have been employees working and the

ratio of males and females in company, by this we can forecast and predict everything.

4)HR audit is done on annual basis which is done thoroughly, and the payroll related audit is done

on monthly basis.

5)Yes, we are using the Software for HR planning. The Software which we are implementing in

our company is the ERP system.

CH 3 (JOB ANALYSIS IN ORIENT)

1)In job analysis, as we told you before we are implementing a new tool or software which is

performance management system its basic job is to do job analysis. Orient uses MEVRIS

technology which makes a role clarification document. In role clarification, all thing are included

about the particular position, what is the JD (Job Description) and JS (Job Specification) related

things in which what is going to be the minimum level of education for that particular job and the

minimum level of experience required and with which stakeholders he is going to be interact with

and on which level he is going to interact with different persons, these things are included. We use

interview method to collect job analysis information.


3)For writing the JD we use MEVRIS methodology in it there is role clarification document which

is related to a particular position and the interview is conducted of the particular employee of a job

role of that department or we interview the HOD of that department for that particular position and

then note down everything and then we have a format of role clarification document and then we

drop our note there.

4)Job analysis plays a big role, basically there are two components, and the number one is that you

hire the right resource for the right position. So, it will cover all the things you will know the

minimum requirements and at least you will know the minimum requisite of that particular

position, and the second is, the candidate also know about his responsibilities and he will know

whether he is capable for these responsibilities or not.

5)No, we don’t have any electronic tool to write job analysis.

CH4 (RECURITMENT)

1)Well we don’t have specific technique for workforce planning and forecasting we are in

implementation phase but, related to forecasting and planning we use them whatever the strategic

plan of a company. Like if they want to increase the sale then how much number of resources they

want and how much are working now and then we see our previous history and we use trend

analysis to plan our future accordingly.

2)For internal replacement basically, company sees concerned HOD recommendation, if the

particular position is vacant so that internal candidate is fit for that particular position because he

meets prerequisite. If he does not meet then, we can take a candidate from outside department.

Let’s suppose we post a vacancy or advertise in a job portal or in a different medium then any of

our employee can come up and tell us that I am capable of this particular position. Then we have
a complete procedure about it, in the procedure we concerned HOD approval of that department

then the HOD of the particular position department evaluates him, if he sees him fit for this

particular position then we transfer him to that department.

3)Well effective recruiting is very important for company because if you can’t hire the right

resource for a position then it will ultimately cost organization. If I do not hire the right resource,

or an HR department couldn’t hire the right resource for the company so ultimately the company

will not perform well, or the company cost increase and when it increases the sales decreases and

then company revenue decrease, so right hiring is very important for the company.

4)Well we go for online job portal plus recruitment agency we advertise in newspaper and we also

go to the universities.

5)We do temporary hiring, so the benefits of temporary hiring are we can easily find worker for

work. We don’t need any legal binding with the temporary worker, we also don’t give multiple

benefits to them as we are giving to our permanent employees and the major drawback of the

temporary employee is turnover as they work only for 15 days or 1 month and they turn around

and leave the company. We have a phase if a temporary worker completes his one year in the

company then we evaluate his performance. Once the management thinks that if he is capable for

being permanent then we hire him or her permanently.

CH 5 (RELIABILITY AND VALIDITY)

1)We have multiple level of tests for multiple positions the test includes aptitude test, technical

skills for evaluate. First of all we check the reliability that the results have no variations in it if one

person give the test twice then the test result varies and the reliability of test gets bad and secondly

if we talk about the validity of the test we see that how relevant the test is for that particular position
how function demand about this so either that test related to that position or not. So, the HR

department give the mechanism the test will conduct for candidates keeping in mind of these two

parameters to evaluate and then we see the outcome will come or not. If there is a deviation is

needed to them then we correct them.

2)If we particularly talk about HR we have multiple test first is skill-based test in it, we have

Microsoft office skill portion, aptitude test portion and three to four objective questions of

communication skills these are the multiple areas of HR if we want to have addition in HR

department we should keep in mind these three elements. If we talk about other departments it

depends on the department. Let’s suppose if we want to hire the security guard, then we check

integrity, we check his past records etc. so it depends on department to department.

3)To check the background, let’s suppose if we hire the experience candidate then we send the

verification letter to his previous organization or if we want to check the qualification related things

then we send the verification letter to university via online through email. If the candidate has

diploma or inter graduate, then we check his education on board site.

4)Work performance of a candidate; As I told you we don’t have such a mechanism yet, so we are

still depending on the performance management system which will be implemented soon so it will

work on our role clarification and our job description and key performance indicators will define

on it and the competencies which will be required to us will also define on it, we will review it on

annual basis and evaluate it.

5)As still we are focusing on the job training whatever the resource we induct we assigned the

mentor to them who will provide them on the job training, in most of the cases 80 to 90 percent it

implemented. In some specialize skills we organize training sessions, there are some specialized
trades in which we train our employees to adopt the skills, it will only happen 5 to 10 percent cases

otherwise there will be an on the job training.

CH 6 (INTERVIEWS FOR NEW CANDIDATES)

1)We conduct both structured and unstructured interviews, for different positions there are

different levels of questions in different type of interviews. It depends upon the position or level

of the position. Well, all of the nature of questions will be covered in our interview.

2)We conduct panel interview mostly or one to one interview it depends on the position and

department. Some department conduct panel interview and some department conduct one to one

interview. Let’s suppose there is a vacancy for financial position so in the interview there will be

an audit head, one is finance head, and an HR head will be involved in it. It depends in which level

you are hiring.

3)Mostly we consul the interviewer let’s suppose we organize a session for our interviewer that

you will conduct an interview and these types of errors will probably occur and we will tell him

what the strategy is to overcome to these errors.

5)There are quite 3 to 4 important things while recruiting the employees first of all we check the

interest level of the candidates that is he capable for the particular position or particular job role or

we check how much aptitude that candidate have for that particular function, this is the most

important point. Secondly we check his knowledge for that particular domain. Thirdly how much

he is prepared for the orient electronics interview. Fourthly there are other factors like

communication skills and his appearance.


CH 7 (TRAINING PROCESS OF HR)

1)In training need we conduct TNA (training need analysis) as I told you that there is on the job

training mostly for the new employees and there is a 5 percent chance that we identify need.

Basically, HR head will go to that particular department of head to ask him about the questionnaire

and then he design the questionnaire for need and then we plan training programs accordingly.

2)As on the job training is 80 to 90 percent in our company so for our perspective it is effective.

4)For the long term management development of our company we take competency based

framework so definitely the people who are in the managerial role, in some place they will lack in

some competencies and if contingence’s then we will prepare someone for that managerial role.

We will evaluate him or her for that competency, if he scores low for that competency then we

train accordingly in long term for that position particularly that he will perform good in future.

5)As we have no such way to analyze there is a need for training of employees in Orient mostly

there are on the job training for the new employees and now we will implement performance

management system then we have true performance picture of an employee. We would get to know

if the employees has low score in competency, than we accordingly conduct TNA (training need

analysis) and we will also plan the training.

CH8 (PERFORMANCE APPRAISAL)


1)It’s very important to appraise the performance of employees because in order to retain we

should motivate them. Like if two persons working together one is good and other is normal and

we are giving them same rewards then the good one will be demotivated. This is why we should

give employees reward and satisfy them and the employees who are performing low we should

also motivate them that we will reward you if you perform well.

2)Basically, in Orient you can say that there is 180 ͦ feedback that in it the employee will evaluate

himself and then its test is going to be evaluated by the head of their department.

3)The techniques we are using for appraising performance is critical incident method we set the

employee goals then he comes up and say that on his appraisal form that these works are done

related to the goals. Let’s suppose they check him on the team work competency we want them to

perform in leadership then he will tell us that this day I performed as a leader. So he told us about

the critical incident related to the competency. Then the HOD will evaluate the validity and

accordingly we will appraise him.

4)While conducting the appraisal form the one of the critical thing is that the employee is self-

evaluating him or HOD is evaluating him and there should be no biasness whatever they are doing

they should be based on objectives secondly confidentiality is important that the appraisal of the

other person should not be known by the other person.

5)We yearly set the objectives our appraisal cycle is run January to December and there will be

also evaluation in the midyear concerned head of department will sit with the employee in one to

one meeting and HOD decides their goals, then HOD sees their goals and evaluate their

performance.

CH9 (SALARIES)
1)Yes, we use the tool of external salary survey. Some of the external salary survey is done by us.

People from different industry also come to us, then by these people coming to us, by them we

also make the survey. Secondly for some positions we involve the third parties also.

2)We have 13 grades and we have categorized them from assistant officer to director level.

3)Yes, job evaluation is done for a particular position. If the company wants and if the management

gives instruction to do so.

4)Well there are different logics and objectives. If we talk about salaries and increments, it is the

company’s annual policy with salary reward is also given. Promotion is also linked with the annual

performance. Orient is in 18 to 19 cities, it varies according to the area of promotion and

increments and salaries

CH10. (SALARIES)

1)Orient gives both incentive and merit pay, let’s suppose for some positions we give incentive

pay if they achieve the target they are going to receive incentive. On merit pay new hiring people

which come we negotiate with them and the candidate which comes on the merit we give him

accordingly the merit pays.

2)Salary is one of the greatest motivator for anyone, salary plays a very critical role at any level

and if we talk about the management level it depends on person to person.

3)Orient sales team is on salary, plus incentives salary is given on the monthly basis and incentives

are given when the targets or the goals are achieved.


4) Annual bonuses are given to all level of employees even for the executive level as well.

The benefits given by orient to its employees are provident funds, transportation, health insurance,

and it varies to position to position.

FLAWS

 They do not have any electronic tool to write Job Analysis

 Right now, they do not have specific technique for workforce planning and forecasting

 They still do not have work performance of a candidate

CONCLUSION

References

1. https://prezi.com/qrrjmkoksopz/swot-analysis/

2. https://orient.com.pk/pages/about-us