Pepsi Cola Human Resource Management Project

HUMAN RESOURCES MANAGEMENT
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HUMAN RESOURCES
MANAGEMENT
COMSATS Institute of Information & Technology M.A Jinnah

Campus, Lahore.
Acknowledgment
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First of all we thank Allah Almighty the most beneficent and merciful
who gave us strength, patience and inspiration needed to complete this
task, which is essential requirement for the completion of our project.
We would like to acknowledge,
MAM FUKAIHA KAKAKHAIL

It was only due to his guidance, we had the opportunity to gain
the latest hand-on 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
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PepsiCo, Inc., incorporated in 1919, manufactures, markets and

sells soft drinks and concentrates, and snack foods. PepsiCo and its
divisions and subsidiaries operate in three business segments:
Worldwide Snacks, Worldwide Beverages and Quaker Foods North
America (QFNA). The Company's snack food business is comprised of
two business units: Frito-Lay North America (FLNA) and Frito-Lay
International (FLI). The Company's beverage business is comprised of
three business units: Pepsi-Cola North America (PCNA),
Gatorade/Tropicana North America (GTNA) and PepsiCo Beverages
International (PBI). On August 2, 2001, the Company completed a
merger transaction with The Quaker Oats Company (Quaker)
whereby Quaker became a wholly owned subsidiary of PepsiCo.
DEDICATION
Our Honorable Teachers & Loving Parents
Whose,
Love, Affection, Motivation, Patience, Support
&
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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 all of those people, they may be gone now
But they will never be
Forgotten....
Table of Content
 Mission statement
 Vision
 Pepsi introduction and future planning
 Pepsi slogan and logo
 Organizational structure
 Delivery system
 Direct delivery
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 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
 Forecasting
 External supply
 Internal supply
 Forecasting human resource demand
 Job description
 Job description process
 Job identification
 Job summary
 Responsibilities and duties
 Standard of performance
 Working condition
 Authority and incumbent
 Job specification
 Specification for trained personnel
 Specification for untrained personnel
 Specification 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
 Application process
 Model of result oriented needs assessment
 Compensation management
 Compensation
 Reward system
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 Salary
 Probation period
 Rent
 Medical care
 Social security card
 Transportation
 Changes within the organization
 Promotion
 Transfer
 Demotion
 Separation
 Lay off
 Retirement
 Resignation
 Leave system
 Casual leave
 Medical leave
 Annual leave
 Weakness in human resources department
 Observations and suggestions
 Recommendations
 Glossary
MISSION STATEMENT
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“The mission is to produce PepsiCo quality beverages,

maintain market leadership by growing our sales volumes,
strengthen our market share, delivering ROI to all of its
stakeholders and fulfill its responsibilities in the
community”.
VISION STATEMENT
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“The Vision of the company is to continue to build a strong

company which is the number one beverage company in
Pakistan and provides value to all of its stakeholders.”
PEPSI
IN PAKISTAN
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Pepsi cola is also very popular in Pakistan that’s why its

market share is about 90% 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 developed
following bottlers in Pakistan till now. Naubahar Bottling
Company
is the largest manufacturer and distributor of
Pepsi Cola soft drinks in Pakistan.
These franchises are located in PAKISTAN

 Karachi
 Lahore
 Multan
 Faisalabad
 Gujranwala
 Peshawar
 Islamabad
 Sukkher
 Hyderabad
Naubahar bottling company
(NBC)
Pvt. Ltd. Gujranwala
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Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of
“Pepsi 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 manufacturing and marketing business with Pepsi Cola in May 27,
1981. The Area allotted to it, was Gujranwala Franchise. The franchise area
consists of the following nine districts.
 Gujranwala
 Gujrat
 Hafizabad
 Mandibghaud
 Jehlum
 Sialkot
 Narowal
 Sheikhupura
 Chakwal
The company operates through a well-established network of a number of distributors. 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
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Manufacturer Retailers Customers
INDIRECT DELIVERY SYSTEM
Manufacturers distributor Retailers Customers
Most importantly, this direct delivery system is present only in Gujranwala franchise 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 system. 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 DRINK TO SERVE HIS CUSTOMERS. HE
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SUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INVENTED 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 gathering 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 "Pepsi-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
the new beverage
In 1902, he launched the Pepsi-Cola Company in the back room

of his 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 Caleb recognized that a greater opportunity existed to bottle Pepsi so that
people could 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 franchises to bottle Pepsi to independent
investors, whose number grew from just two in 1905, in the cities of Charlotte and
Durham, North Carolina, to 15 the following 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-than-sophisticated

engineering in the back room of Caleb's pharmacy. Building a strong franchise
system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers,
entrepreneurial in spirit and dedicated to the product's success, provided a sturdy
foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the
new company was selling more than 100,000 gallons of syrup per year.
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1898 Caleb Bradham’s, a New Bern, North Carolina, pharmacist, renames "Brad's
Drink," a carbonated soft drink he created to serve his drugstore's fountain
customers. The new name, Pepsi-Cola, is derived from two of the principal
ingredients, pepsin and kola nuts. It is first used on August 28.
1903 In keeping with its origin as a pharmacist's concoction, Bradham's

advertising praises his drink as "Exhilarating, invigorating, aids digestion."
1905 A new logo appears, the first change from the original created in 1898
1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."
1938 The 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 Pepsi canteen in Times Square, New York,
operates throughout the war, enabling more than a million families to record
messages for armed services personnel overseas.
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 again
updated.
1953 Americans become more weight conscious, and a new strategy based on
Pepsi's lower caloric content is implemented with "The Light Refreshment"
campaign.
1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the
kitchen cola," as a consequence of its long-time positioning as a bargain brand,
Pepsi now identifies itself with young, fashionable consumers with the "Be
Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier
straight-sided bottle.
1963 In one of the most significant demographic events in commercial history, the
post-war baby boom emerges as a social and marketplace phenomenon. Pepsi
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recognizes the change, and positions Pepsi as the brand belonging to the new
generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation"
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
change. It pictures us the way we are-one people, but many personalities.
1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an

improving national 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 With all the evidence showing that Pepsi's taste is superior, the only
question remaining is how to add that message to Pepsi Generation advertising.
The answer? "Pepsi's got your Taste for Life!" a triumphant 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 against 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 the Right one Baby, Uh-
Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon
to become the most popular advertising in America is on its way. Supermodel
Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's
updated logo and package graphics.
1992 Celebrities join consumers, 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. Mountain Dew growth continues, supported by the antics
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of an outrageous new Dew Crew whose claim to fame is that, except for the
unique great taste of Dew, they've "Been there, Done that, Tried that."
1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar
Shaquille O'Neal is rated as best in U.S.
1994 New advertising introducing Diet Pepsi's freshness dating initiative features
Pepsi CEO Craig Weather up explaining the relationship between freshness and
superior taste to consumers.
1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes
top honors in the year's national advertising championship.
In 2000 PepsiCo sales are $20 billion and the company has 125,000 employees at
year
Now Pepsi is available in more than 200 countries of the world.
Pepsi slogan and logo

1902 Brad's Drink
1903 Exhilarating, Invigorating, Aids Digestion
1906 Original Pure Food Drink
1908 Delicious and Healthful
1915 For All Thirsts - Pepsi: Cola
1919 Pepsi: Cola - It makes you Scintillate
1920 Drink Pepsi: Cola - It Will Satisfy You
1928 Peps You Up!
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1929 Here's Health!
1932 Sparkling, Delicious
1933 It's the Best Cola Drink
Double Size
1934
Refreshing and Healthful
1938 Join the Swing to Pepsi
1939 Twice as Much for a Nickel
1943 Bigger Drink, Better Taste
1947 It's a Great American Custom
1949 Why Take Less When Pepsi's Best?
The Light Refreshment

1954
Refreshing Without Filling
1958 Be Sociable, Have a Pepsi
1961 Now It's Pepsi for Those Who Think Young
1963 Come Alive! You're in the Pepsi Generation
Taste that Beats the Others Cold, Pepsi

1967
Pours It On.
You've Got a Lot to Live, Pepsi's Got a Lot

1969
to Give
1973 Join the Pepsi People Feelin' Free
1976 Have a Pepsi Day!
Catch That Pepsi Spirit

1979
Take the Pepsi Challenge
1981 Pepsi's Got Your Taste for Life
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1983 Pepsi Now!
1984 The Choice of a New Generation
1987 America's Choice
1989 A Generation Ahead
1992 Gotta Have It
1993 Be Young, Have Fun, Drink Pepsi
1995 Nothing Else is a Pepsi
1997 Generation Next
1998 Same Great Taste
1999 The Joy of Cola
2000 The Joy of Pepsi
2003 Pepsi. It's the Cola
2010 Yes you can
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Organizational structure
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Managing Director
Director
General Manager
Sales Manager Sales Manager (Out

(Local Sales) Sales)
Plant Manger
Marketing & Services
Manager
Production QC
Manager
Manager
HR Audit Purchase Finance MIS Shipping Store

Manager Manager Manager
Manager Manager Manager Manager
S&D Assistant Manager Publicity

Mangers Marketing & Services Manager
MAIN PRODUCTS OF PEPSI
Pepsi The flagship product and the best tasting beverage there is.
Diet Pepsi Great taste, with only one calorie.
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Pepsi Vanilla Fresh new Vanilla taste
Diet Pepsi Vanilla Fresh new Vanilla taste with only one calorie
Pepsi One Great tasting with only 1 calorie.
Pepsi Twist Adds a twist of lemon to the great Pepsi taste.
Wild Cherry Pepsi Adds the flavor of cherry to the great Pepsi taste.
Mountain Dew Crystal clear and refreshing.
Code Red Mountain’s product
Aquafina Bottled water.
Mirinda Fruit drink.
DEPARTMENTS
(1) OPERATING DEPARTMENTS
 Procurement store
 Raw material purchase
 General purchases
 Purchase process
 Domestic and foreign purchase
(2) PRODUCTION DEPARTMENT
 Quality control
 Water treatment
 Process of empty bottling filling
 Process of washing bottles
(3) H.R.M DEPARTMENT
 Structure of H.R.M Department

 No of employees working in H.R.M Department
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 Functions of H.R.M Department

 Human Resource Planning and Forecasting
 Human Resource planning process
 Recruitment and selection
 Employees Selection Process
 Recruitment Process in NBC
 Model of result oriented need assessment
 Training in NBC
 Organizational management
STRUCTURE OF HR DEPARTMENT
Assistant to H.R Manager Assistant to H.R Manager

(H.R Executive) (H.R Officer)
H.R Helper
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Number of employee working in the H.R.M Department:
Almost three employees working 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 coordination 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
focuses on questions such as these:
i. What do the proposed business strategies imply with respect to human

resources?
ii. What kinds of internal and external constraints will (or do) we face?
iii. What are the implications for staffing, compensations practices, training and
development, and Management succession?
iv. What can be done in the short run (tactically) to prepare for long term
(strategic) needs?
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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
effort to anticipate future business and environmental demands on an
organization, and to provide qualified people to fulfill that business and satisfy
those demands. 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:
Human resource forecast to predict future HR requirements (the number of

worker needed, the number expected to be available based on labor market
characteristics, the skills mix required, internal versus external labor supply)
 Action Plans:
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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 compensation.
 Control and evaluation:
Control and evaluation to provide feedback on the overall 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
Forecasting Requirements
Staffing levels
Staffing mix
(Qualitative)
Organization and job design

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Action Plans
Staffing authorizations
Recruitment
Promotions and transfers
Organizational changes
Training and development
Compensation and benefits
Labor relations
 Human Resource Forecasts:
The purpose of human resource forecasting is to estimate labor requirements

at some future time period. Such forecasts are two types.
 The external and internal supply of labor and

 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 of
operations or to normal workforce attribution, forays into the labor market are
necessary.
Managers in (PEPSI) Naubahar Bottling Company pay especially close attention
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to forecasts of HR supply.
 Forecasting Internal Human Resource Supply
A reasonable starting point for projecting a firm’s future supply of labor is its
current supply of labor. Perhaps the simplest type of internal supply forecast is the
succession plan, a concept that has been discussed in the planning literature for
over 25 years. Succession plans may be developed for management employees,
non management employees, or both. The process for developing such a plan
includes 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
Job description also provide on the basis of the designation. Job description
form also provides in the written form to the each department according to the
designation of the employees then each department provides job description to
their employees.
Here the pay professional should standardize and complete the job description
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.
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A written statement of what the worker actually does how he or she does it and
what the job’s working conditions are
 Section of a typical job description;
 Job identification
 Job summary
 Responsibilities and duties
 Authority of incumbent
 Standards of performance
 Working condition
 Job specification
 JOB IDIENTIFICATION;
 Job title
 FLSA status section
 Preparation date
 Prepared by
 JOB SUMMARY;
 Describe the general nature of the job
 Lists the major function or activities
 RESPONSIBILITIES AND DUTIES;
A list of the job’s 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 description’s
main duties and responsibilities.
Job description use for:
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 New position
 For promotion
 Recruitment
 Transfers
 Performance Management
 Career Planning
 Staff Planning
 Training and Development
Steps in the Job Description Process
Determine Method Design the

of collecting Data Questionnaire
Identify the Appropriate

incumbent
Review and Rewrite Write the Draft Conduct the Interview

process or Results
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Obtain Approval of Incumbent and

supervisor
JOB SPECIFICATION
 Specification for trained personnel

 Specification for untrained personnel
 Specification 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 best product or service, so
they must also complete to identify, attract, and hire the most qualified people.
Recruitment is a business and it is big business. It demands serious attention from
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management, for any business strategy will falter 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
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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
Future Job requirements
Performance Feedback regarding past and

Appraisal
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Present job performance supervisor/

subordinate plans for the future
RECRUITMENT PROCEDURE IN
NAUBAHAR BOTTLING COMPANY
 Major sources of potential job candidates are
 Newspaper Adds
 Internal Search Advertisement
 Employees Referrals (Permanent Employees of NBC)
 Types of Recruitment
 Permanent Recruitment (Minimum Requirement Intermediate)

 Daily Wages (At least Metric)
 Contract (Graduation and Master for one year)
 The candidates are selected on the basis of
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 Interview by HR Manager
 Interview by Factory Manager
 Interview by Concerned Department Head
 Final Interview by MD/Director
 Check list for newly hire employees
 N.B.C application form

 Application (own hand written)
 Original Resume
 Attested copies of academic certificates
 Four number of photographs (passport size)
 Salary evidence
 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
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It shows that in defining training needs we have to start by identifying and comparing
two levels of performance: the standard (desired, optimum, future, planned) performance level
(PS) and the current (existing real) performance (pc). The difference between these two levels
is the performance gap.
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 it. For example, the
plant utilization may be chosen and measured as global indicator of performance. The related
competence problems of production managers may be in areas of production scheduling and
control, maintenance management, quality improvement and purchasing. Factors other than the
production managers’ competence (calling for non-training solutions) may include a shortage of foreign
exchange, the absence of any bonus systems 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 debates on the differences between performance and competence, and
so on. In particular, it is useful to differentiate between the levels of organizational performance,
individual behavior and performance, and competence, this consist with the postulate that training must
be performance and result oriented.
 Organizational performance
 Individual behavior and performance
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 Competence
APPLICATION PROCESS
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Transfer in
Attendance
Application
&
Form
Leave Register
Application Process
Check by time
Submitted in office
Time Office availability of
leaves
Fill up and
Signature of
Department
Head
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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
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Training needs and solutions Non-Training needs and solutions
COMPENSATION MANAGEMENT
 Compensation
At a broad level, and organizational reward system includes any thing and employee
values and desires that an employer is able and willing to offer in exchange for employee
contribution.
More specifically, the reward system includes both financial 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, contract 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) 1. Petrol + Maintenance
2. Direct Payments (Salaries) 2. Protection Program
3. Bonus (Three Basic Pay Annually) 3. Effective Supervision
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4. Accommodation
5. Utilities bills
6. Vehicles
 SALARY
Salary of all the workers permanent and temporary (Daily Wages) is prepared in time
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 month. 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 worker complete one year in service. Following deductions are
made for preparation of salary.
Salary Preparation
Daily Wages Permanent
Basic (daily wages) Rs. 81
Basic Pay 66.7 % of gross pay
CLA- 1 Rs. 4
House Rent 40% of basic Pay
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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 Relief Rs. 14
EOBI& ESSI 6% (Company)
Total Rs. 116
 PROBATION PERIOD:
In the Naubahar bottling company the probation period of new employee is three to six
months in the probation period employee work routine wise. There is no leave granted during
the probation period.
In the probation period employee efficiency and effectiveness has been check the
permanent recruitment depends on the efficiency and effectiveness of the employee. The
probation period is necessary for the newly hire employee it is the basis for permanent
employee if the probation period of the employee is satisfactory the employee will be hire
permanently if the probation is not satisfactory level then the employee will be dismiss.
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During the 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 out 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 permanent
and daily wages. This card is issued by the Employee Social Security Institute (ESSI). With this card
an employee gets a lot of benefits with pay anything. 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
Application to the factory manager
ID card of Employee
Detail of depended persons
Registration Card (ESSI)
Affidavit of Parents Form
2
Medical Fitness Form
ID Cars 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 name of CONVEYANCE ALLOWANCE.
 CHANGES WITHIN THE ORGANIZATION

 Promotion
 Transfer
 Demotion
1. Promotion
Promoted employees usually assume greater responsibility and authority in return for
higher pay, benefits, and privileges, psychologically, promotions help satisfy employees needs
for security, belonging, and personal growth. Promotions are important organizational decisions
that should receive the same careful attention as any other employment decision.
 Promotion in NBC
 An employee Promoted after three years services in NBC but only on permanent basis.
 On the other hand if en employee has intermediate qualification and during the job he
complete his graduation he will be promote
2. Transfer
2
Transfer function performs in NBC. There are two types of Transfer
 Transfer with NOC

 Transfer without NOC
 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
An employee can transfer from sale department to sale department without NOC. For
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 opportunity, they
occur infrequently since they tend to be accompanied by problems of employee apathy,
depression, and inefficiency that can undermine the morale of a work group. For these reasons,
many managers prefer to discharge or to move employees laterally rather than demote them.
 SEPRATION
1) Layoffs
2) Retirements(PENSION)
2
3) Resignations
1. Layoffs
How safe is my job? For many people that is the issue of the late 1990s. It is becoming
clear that corporate cutbacks were not oddity of the 1980s and 1990s, but rather are likely to
persist.
Involuntary layoffs are never pleasant, and management policies must consider the impacts on
those who leave, on those who stay, on the local community, and on the company
2. Retirements(PENSION)
For selected employees, early retirement is possible alternative to being laid off. Early
retirement programs take many forms, but typically they involve partial pay stretched over
several years, along with extended benefits. Early retirement programs are intended to provide
incentives to terminate; they are not intended 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 employees
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. Employees 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 resignation is possible who will resign from the company; he must deprive from the
benefits of the company.
2
 LEAVE SYSTEM\\VACATION CRITERIA:

Like other multinational companies Naubahar Bottling Company (NBC) Allot to the
permanent staff different kind of leaves. Weekly rest day and other holidays declared by the
Government of Pakistan around the year enjoy every permanent employee of NBC. Except all
above leaves the company allotted the following holidays to the permanent workers.
 Causal Leaves
When a permanent employee completes his probation period of three month (Extendable if
required) he has awarded ten (10) causal leaves which one can avail in any cause of emergency with full
pay. A worker can not avail all the leaves (Expect 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 of one year. A
Permanent employee can avail these leaves with half pay. If the employee goes on leave for more then 4
leaves then he would have to present the Medical 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 with full pay. Mostly
these holidays are allotted to the workers in off season. If a worker did not avail these leave
2
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 against over
time. He can change his overtime to a leave. Every body can not do over time. Only those
persons those who are permitted by the department head.
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 availability of leaves in his account, if yes
then the concern person marked the application that many leaves in his account. After that the
applicant fills up this application for and then signature from hiss concern head of the
2
department. After fill 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
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 signature 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 time 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 promote soon that’s why employees leave the
factory.
3. New employee’s salary is more than old employees.
4. Lose the key employees because of the reference.
5. One person handles all the recruitment procedure of the N.B.C which may
be burden for him.
6. HRM department in NBC is not working professionally .Only two to three
persons are handling all the work.
2
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:
 Assessing current human resource standards & generating human resources inventory.
 Assessing future human resources needs by organization’s strategies & future programs.
 After assessing current capabilities of future needs a program should be developed to
have right person for the right job & at right time.
 At the moment, HR department is itself facing staffing problem & it seems to be non
existent.
 The selection process through which candidates pass is very slow & 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 patience test & trouble some for candidates from other cities
or already doing jobs.
 For the medical bills and small loan employees need to get managing director’s
approvals 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 selection tests to have
better job personality fit.
 Formal training is conducted but that is due to ISO department not with the
planning/efforts of HR department.
 Performance appraisal has only once but it was a useless exercise because its results
were not used in future planning or changes. Performance appraisal should be
conducted:
 To know development & training needs of employees.
 To get performance feed back.
 Anticipate direction for future performance
2
 To change/ compensation system.
There is not idea of planned career development in NBC. Career development can be in term of
job rotation, transfer & promotion. It improves the organization's ability to attract of retain
talented people, anticipating change & 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.
2
There would be lobbies or affiliations in the organization. These should 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 cooperation & improve employee morale.
There must be some channel to communicate employees

problem/suggestion/comments directly to top management e.g. suggestion box. These
suggestions should be discussed in quality control meetings.
No attitude surveyor any internal research has ever conducted by the HR department to get.
Employees in NBC are performing well but they have low level of motivation.
Absenteeism is controlled because total forty annual leaves are allowed but more important
reason it that employees feel self responsibility. However the alarming indicators 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 scales 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
employees
 Assess current human resource standards & generate human resources

inventory.
2
 Assess future human resources needs by organization’s strategies & future

programs.
 To know development & training needs of employees.
 Anticipate direction for future performance
 Formal training conduct with the planning/efforts of HR department.
 Perform all the functions of Human Resource Department more efficiently
and effectively.
GOLSSARY
ESSI: Employ Social Security Institute
EOBI: 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 Department). The
main purpose of this department (Time Office) is to keep record of the entire employee
that is working in the Naubahar Bottling Company (NBC)
BEVERAGE: Any liquid suitable for drinking

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HUMAN RESOURCES MANAGEMENT

COMSATS Institute of Information & Technology M.A Jinnah

We would like to acknowledge,

MAM FUKAIHA KAKAKHAIL

NAUBAHAR BOTTLING COMPANY

The manners we required.

PepsiCo, Inc., incorporated in 1919, manufactures, markets and

Our Honorable Teachers & Loving Parents

Love, Affection, Motivation, Patience, Support

To all those People who have quenched for

To all those who have dedicated their lives to

To all of those who have served and sacrificed for

To all of those people, they may be gone now

But they will never be

“The mission is to produce PepsiCo quality beverages,

“The Vision of the company is to continue to build a strong

Pepsi cola is also very popular in Pakistan that’s why its

These franchises are located in PAKISTAN

Naubahar bottling company

The company operates through a well-established network of a number of distributors. The

 Direct delivery system

 Indirect delivery system

DIRECT DELIVERY SYSTEM

Manufacturer Retailers Customers

INDIRECT DELIVERY SYSTEM

Manufacturers distributor Retailers Customers

HISTORY AND FUTURE PLAN

SUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INVENTED THE BEVERAGE

In 1902, he launched the Pepsi-Cola Company in the back room

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated

1903 In keeping with its origin as a pharmacist's concoction, Bradham's

1938 The trademark is registered in the Soviet Union.

1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an

Pepsi slogan and logo

1903 Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi: Cola

1919 Pepsi: Cola - It makes you Scintillate

1920 Drink Pepsi: Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

The Light Refreshment

1958 Be Sociable, Have a Pepsi

1961 Now It's Pepsi for Those Who Think Young

1963 Come Alive! You're in the Pepsi Generation

Taste that Beats the Others Cold, Pepsi

You've Got a Lot to Live, Pepsi's Got a Lot

1973 Join the Pepsi People Feelin' Free

1976 Have a Pepsi Day!

Catch That Pepsi Spirit

1981 Pepsi's Got Your Taste for Life

1983 Pepsi Now!

1984 The Choice of a New Generation

1987 America's Choice