Professional Documents
Culture Documents
HRM at Metro: Submitted To: Ms. Sonya Omer
HRM at Metro: Submitted To: Ms. Sonya Omer
Dated:
Group Members:
Noukhaiz Aslam
Syed Mohammad Hassan
Awais Ahmed
Abuzar Khan
Acknowledgement
All praise to the gracious ALMIGHTY ALLAH WHO blessed us with the courage to
complete this project.
This work would not have been possible without the support and encouragement of our
Marketing Management course instructor Ms. Sonya Omer. We express our gratitude
and deep sense of indebtedness for her valuable advices and encouragement, and for
giving us very useful information that helped us in completing this report.
WE must take this opportunity to appreciate co-operation of our fellow students and
friends whose constructive suggestions made it possible for us to conduct this project.
We extend our thanks to all of them for their helping hand whenever needed.
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Table of Contents
1) EXECUTIVE SUMMARY..........................................................................................4
2) INTRODUCTION.......................................................................................................5
3) HRM in Metro............................................................................................................6
4) ORGANIZATIONAL CHART.....................................................................................7
5) RECRUITMENT........................................................................................................8
a. INTERNAL TRAINING................................................................................10
b. EXTERNAL TRAINING................................................................................13
7) Payroll.......................................................................................................................14
b. Executive Compensation..............................................................................15
8) Leave Policy..............................................................................................................16
a. Previlage Leave..............................................................................................16
b. Casual Leave..................................................................................................17
c. Sick Leave......................................................................................................18
9) Performance Appraisal............................................................................................19
10)Employee Relations.................................................................................................20
11) HR Issue....................................................................................................................21
12) References................................................................................................................23
13) Appendix..................................................................................................................24
EXECUTIVE SUMMARY
Purpose of the study is to get insight regarding the HR practices at “METRO”. i.e. How
do they hire their employees, What`s their recruitment cycle, and how do they
compensate their employees for the work performed by them. Also the HR issues faced
by the company and their possible reasons and their solutions to these underlying
problems which METRO was facing. So that we could have a better understanding of the
HR practices when they are implemented in the company.
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INTRODUCTION
METRO is a leading chain of wholesale centers with outlets in several countries of Asia
and Europe. Metro opened its first cash & carry wholesale center in Pakistan in 2007 &
expanded to 5 wholesale centers in a short span of 18 months. In July 2012 METRO and
Metro-Habib combined their wholesale business in Pakistan marking the beginning of a
long-term partnership to the mutual benefit of both companies. The merger
allowed METRO and Metro-Habib to combine resources and gain the financial
strength to lead and grow in a challenging environment and to gain synergies targeted
to generate value for our customers and suppliers alike. Today the company is
operating 9 wholesale centers in Lahore, Karachi, Islamabad & Faisalabad.
METRO-Habib Cash & Carry Pakistan is part of METRO GROUP’s sales
division METRO Cash & Carry, the international leader in self-service wholesale.
The company has a simple and efficient business concept: cash & carry, which is defined
through its customer base, both professional and private consumption customers are
allowed to purchase at METRO-Habib Cash & Carry. The core customers are small and
medium-sized retailers as well as hotels, restaurants and caterers. The company offers
business customers a comprehensive product range both in food and non-food.
Metro’s human resources management is aligned with the strategy formulation and
implementation process. By integrating human resources management into the
planning process, emphasizing human resources activities that support broad Metro’s
mission goals, and building a strong relationship between HR and management. Metro
has been successful in ensuring that the management of human resources contributes to
mission accomplishment.
The management at Metro recognizes that it is not just financial and technological
capital that provide companies with the competitive edge. Without attracting and
retaining the right people, in the right jobs, with the right skills and training, an
organization cannot succeed. Therefore, at Metro, people have been recognized as the
company’s most important asset. This approach of strategic human resource
management at Metro has led to enhanced organizational performance.
Human Resource division is headed by Nayab Baig, who supports and develops METRO
Cash & Carry Pakistan's most important assets-its people. The division is divided into
two major departments:
People Excellence
Organizational Excellence
People Excellence team deals with recruitment, HR operations, reward and retention of
employees. Organizational Excellence team looks after culture, training and
development needs of our employees.
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ORGANIZATIONAL CHART (HR Specific)
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Recruitment and Selection
Mr. Nayab Baig is the senior recruitment & selection Manager at Metro. He is
responsible for all the Hiring being done at corporate Level & also is the authority for
every kind recruitment, selection & layoffs. There are four different categories for Hiring
Outsourcing
Employment on reference. (both internal & external)
Advertisement in Media. (mostly print)
Walk in Interviews. (encouraged at operational level only)
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Orientation & Induction
The purpose of this section is to ensure the successful implementation of a uniform
procedure for introducing new employees and help the new employees feel part of Metro
Family by providing information and assistance at the time it’s needed.
It is important that the induction process is consistent to ensure that all new employees
have the same induction experience and receive the same messages. Induction if
implemented effectively has the potential to reduce turnover, absenteeism and boost
morale.
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TRAINING AND DEVELOPMENT PRACTICES AT METRO
Permanent
Contractual
Part time
In the department of training and development, there are basically two types of training
being done:
Internal Training.
External Training
Internal Training
There are three major departments at Metro of whose employees are trained.
Commercial
Business Development
Customer development
Non food
Fresh food
Dry food
The major task of the commercial sector is to sell out the product range offered by
Metro. Special training is offered to the employees working under this division by senior
managers belonging to the international chains of Metro. The international senior
managers train the mangers in the Pakistan division of Metro and these managers then
further train their subordinates and other staff who work under the senior managers.
The employees are trained how to deal with the dynamic market, trade market, import
and export details, newly developed opportunities in the market and of any new system
which is being introduced at Metro.
The other staff trained at Metro belongs to the business development and the customer
development department. The sales and marketing executives of business development
unit belong to the head office where as that of customer development department
belong to the numerous stores of Metro. They are trained through the process of in-
house training which is a training program for learning opportunities developed by the
organization in which they are used. Since the training is required to be provided to
employees as part of legislative requirements for industry performance and safety
standards, competitiveness or continuing education requirements.
The staff from the House of Habib is responsible for training the business and customer
development unit and members of the head office (HOH) train all the employees
respectively.
The above factors are covered in the training program which is usually done by the
respective manager or supervisor who is assigned the responsibility of training the
newly recruited employees on the job under him. He gives the recruited employees an
overview of all the major topics in the categories mentioned above, and of the job
through the process of on the job training under the supervision of Human Resource
personnel.
The first step performed is to have a meeting with the training team and present the
overall goal for training. A private one-on-one meeting is scheduled with each person
within three to five days to go over their specific training program criteria. Detail of
what the management expect them to do is given and different tools of training are used
as well. The training process, however, must be good or it will not achieve its goals.
During the process of internal training, monitoring the process is essential to ensure
that all members of the training team are doing their job effectively. Auditing trainees
within each module until the organization is confident that the training is effective.
Good work habits from training only come when the habits become automatic.
Encouraging staff members to use the newly learned skills is strongly emphasized on at
Metro. Getting involved and, if necessary, being strong about helping people who are
reluctant to change. It takes a stiff backbone to make training pay off.
If the internal training process is not giving results as expected, Metro reviews how the
training is being done and fine tunes the process to ensure that any holes in the program
are plugged.
Since the basic training is only provided to the permanent members of the organization
such as the senior managers and managers who then later on train their subordinates.
After each component of the training plan and program is complete, outsourced trainers
or international employees of Metro meet with the managers from Pakistan division and
review all business development personnel to determine who will require what training
module. An employee is assigned to coordinate the dates and times for specific training
modules and then send invitations to those employees who are to attend each module.
EXTERNAL TRAINING
As part of its continuous learning philosophy, Training via Analysis seeks to support
employee training so that employees can fully contribute their talents to achieve TVA's
vision and business objectives. In keeping with this objective, TVA encourages
employees to participate in training activities so they may perform at their highest
potential. This practice establishes the process for all employees who participate in
External Training.
Payroll and timekeeping clerks perform a vital function at Metro: ensuring that
employees are paid on time and that their paychecks are accurate. If inaccuracies occur,
such as monetary errors or incorrect amounts of vacation time, these clerks research
and correct the records. In addition, they may perform other clerical tasks. Automated
timekeeping systems that allow employees to enter the number of hours they have
worked directly into a computer have eliminated much of the data entry and review by
timekeepers and have elevated the job of payroll clerks, allowing them to perform more
complex tasks. In Metro units that have not automated this function, however, payroll
and timekeeping clerks still perform many of the traditional job functions.
A base salary
Short-term incentives, or bonuses
Long-term incentive plans (LTIP)
Employee benefits
Perquisites
Employee benefits and benefits in kind (also called fringe benefits, perquisites, perks)
are various non-wage compensations provided to employees in addition to their normal
wages or salaries at Metro. Where an employee exchanges (cash) wages for some other
form of benefit, this is generally referred to as a 'salary sacrifice' arrangement.
Fringe benefits can include, but are not limited to: (employer-provided or employer-
paid) housing, group insurance (health, dental, life etc.), disability income protection,
retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-
paid), social security, profit sharing, funding of education, and other specialized
benefits.
The term perqs or perks is often used colloquially to refer to those benefits of a more
discretionary nature. Often, perks are given to employees who are doing notably well
and/or have seniority. Common perks are company cars, hotel stays, free refreshments,
leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when
multiple choices exist—first choice of such things as job assignments and vacation
scheduling. They may also be given first chance at job promotions when vacancies exist.
Executive Compensation
Executive compensation (also, director remuneration) is how top executives of business
corporations are paid. This includes a basic salary, bonuses, shares, options and other
company benefits for work on the board of directors. Over the past three years, director
remuneration has risen dramatically beyond the rising levels of an average worker's
wage.
The board of directors is the controlling organ of the company, so responsibility for the
levels of pay for all company employees is ultimately theirs. Pay is just one element in
the wide range of spending and resource allocation decisions by the heads of firms.
Others include investment decisions, which suppliers to use, which business partners to
contract with, how to distribute capital and dividends to shareholders, and so on. While
human resource department at Metro is usually delegated the task of setting pay levels.
Leave Policy
Objective
This Policy encourages the employees to take break from work as this provides for a
healthy and efficient staff. The leave policy sets out the various types of leaves that an
employee is eligible for and outlines the procedure for taking leave.
All permanent employees are eligible to avail privilege leave. Privilege leave is calculated
for a period of one calendar year (April- March)
Entitlement
18 days privilege leave P.A is allowed to each employee. Out of 18 days leave credited for
the year, any un-availed paid leave in excess of 10 days at the end of the year will lapse
automatically. In other words not more than 10 days leave will be carried forward
to next year.
All the employees are required to submit a leave plan to their respective head of the
department stating when he/she intends to take paid leave.
An employee who joins the company other than 1st day of April are entitled to earn the
leave in that respective year on a pro-rata basis.
Employees should submit application for leave in the prescribed format, 5 days in
advance to his/her departmental head. Even leave of casual nature needs prior approval
All leave will be sanctioned by the departmental head and sent to the HR department for
records. Paid leave cannot be encashed for more than 10days in any year. The
overall limit on encashment is 10 days only.
In order that we, as employer, respect the much needed employee leisure time,
compulsory paid leave is provided for. Employees must avail a paid leave of minimum 8
days in a year.
Casual Leave:
All permanent employees are eligible to avail Casual leave. Casual leave is calculated for
a period of one calendar year (April- March)
Entitlement:
All permanent employees are eligible for 1-day casual leave at the rate of 4
months served. An employee is eligible for a maximum of 3 days casual leave in a
calendar year. Half Day CL can be taken as needed. If an employee avails more
than 3 casual leave during the calendar year. Excess leave will be deducted as PL or
if PL is not available they will be unpaid leave.
All leaves should be applied for in advance unless circumstances are such that it is not
possible to do so. In such cases a telephone call or an email to the concerned reporting
authority or his/her absence to the concerned department, as intimation should serve
the purpose.
Sick Leave:
All permanent employees are eligible for 1-day sick leave at the rate of 4 months
served. An employee is eligible for a maximum of 3 days sick leave in a calendar
year.
If an employee avails more than sick leave during the calendar year. Excess leave
will be deducted as PL or if PL is not available they will be unpaid leave.
All permanent employees are eligible for 1-day casual leave at the rate of 4
months served. An employee is eligible for a maximum of 3 days casual leave in a
calendar year.
Half Day CL can be taken as needed.
If an employee avails more than 3 casual leave during the calendar year. Excess
leave will be deducted as PL or if PL is not available they will be unpaid leave.
All leaves should be applied for in advance unless circumstances are such that it
is not possible to do so. In such cases a telephone call or an email to the
concerned reporting authority or his/her absence to the concerned department,
as intimation should serve the purpose.
Performance Appraisal
Employee Relations
Employee Relations at Metro involves the body of work concerned with maintaining
employer-employee relationships that contribute to satisfactory productivity,
motivation, and morale. Essentially, Employee Relations is concerned with preventing
and resolving problems involving individuals who arise out of or affect work situations.
Major Issue:
The major challenge and issue faced by METRO was the leadership problem. The
amount of leadership was rarer than the average. The company was highly dependent
on those old leaders who have worked in the organization for several years, adapted
themselves according to the METRO`S culture; but they were unable to transfer their
leadership characteristics to the current management and nurture them.
Most of their employees are young and who have been into the organization for just
three years and therefore it becomes difficult, to adapt themselves according to the
METRO culture. Secondly the employee retention rate is low therefore it becomes
difficult for the organization to transfer their culture from old employees to the up
young ones.
Solutions:
Extensive training of staff regarding leadership and management issues.
Formation of cross divisional teams to share the cultural experience.
Provisional hiring of about six months, observe the employees behavior and look
if they could fit in the METRO culture.
During interview look for the people who are familiar with the METRO culture
and could adjust in it.
Recruit the people who are extrovert and are open to the experience.
Conclusion:
The main issue faced by METRO was the leadership problem and the employee
retention. METRO was unable to transfer their leadership characteristics to the current
management and nurture them. Secondly they were unable to grow and develop their
own leaders and management which was one of their core objectives.
The solution/conclusion to this problem could be extensive and regular training of the
employees thus making them familiar with the METRO culture. Secondly in order to
retain the employees METRO should provide them good packages and involve them in
decision making process of the company. Thus making an creative and an fair
organization to work in.
References
http://www.metro.pk/
http://metro.rozee.pk/index.php?pg=index
http://www.slideshare.net/CristianPistol/metro-4728567
http://www.scribd.com/doc/78114642/Metro-Cash-and-Carry-Pakistan