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PERFORMANCE MANAGEMENT SYSTEM
PAKISTAN TOBBACO COMPANY LIMITED.
SAAD IQBAL MUHAMMAD SAIF MB MB093065
Pakistan Tobacco Company
We dedicate this report especially to our honorable teacher Mr.Saif who really made it possible to complete it; also to all the members who helped us in gathering the information.
Pakistan Tobacco Company
We would like to acknowledge and extend our heartfelt gratitude for his support and encouragement which has made the completion of this Project possible.ACKNOWLEGEMENT We have prepared this project report on “PERFORMANCE MANAGEMENT SYSTEM IN PAKISTAN TOBACCO COMPANY LIMITED” under the guidance of Mr. Pakistan Tobacco Company . We thank him for his sincere help in making this project.Saif who is teaching us human resources management subject.
“Transform PTC to perform with the speed. flexibility and enterprising spirit of an innovative. consumer-focused company” and long term vision of becoming “First choice for everyone” Pakistan Tobacco Company .MISSION STATEMENT OF PAKISTAN TOBACCO COMPANY : The mission statement given in the company’s annual report is as follows.
VISSION MISSION AND KEY OBJECTIVES OF PTC: on Vi si N o . o r m P T C i l i t y c o t o a p e r f o f o r m w i t h c o t h e s p r i t e m p a n y o f io l iss S p e e d i n n f l e x i b n d n s . s k i l l e d a n d p r o c e s s e s c o n f i d e n t & s e p e o p Pakistan Tobacco Company .r e l e v a nm p o s i t i o n i n g n t s e g m e n t s t en es D r i v e w / c s t a n d a r d s i n p r o d u c t s . 1 F i r s t C h o i c e F o r E v e r y O n e To n ta T r a a n n s f o . t h r o u g h p a s s i o n a t e . e n t e r p r i s i n g ig Al M v a t i v e . c u s e d O b ke je y ct iv R e g a i n v o l u m e & v a l u e l e a d e r s h i p b y v i a b l e b r a n d s i n a l l c o n s u m e r .
Table of Contents CHAPTER 1 INTRODUCTION CHAPTER 2 ABOUT PAKISTAN TOBBACO COMPANY LIMITED CHAPTER 3 CONCLUSION Pakistan Tobacco Company .
CHAPTER 1 Pakistan Tobacco Company .
WHAT IS PERFORMANCE MANAGEMENT? To some people.INTRODUCTION:- Effective performance management relies on systems and people working together to make sure the right things happen. team. We define performance management as: "Taking action in response to actual performances to make outcomes for users and the public better than they would otherwise be". Improvement to outcomes should benefit service users but does not always mean increased service levels – sometimes better outcomes can mean delivering better value for money. review. but effective organizations share some common characteristics. are inseparable from the soft aspects such as culture. To others it implies a personal appraisal. no easy task. Performance management will look different in different places. resources and people are managed to deliver your ambitions. PRINCIPLE OF PERFORMANCE MANAGEMENT:The principles of performance management are straightforward – that is how capacity. These are: • • real-time. leadership and learning. A system does not stand apart from day-to-day management. The hard systems. corporate or community level. Achieving effective performance management is. Measurement and Information project (PMMI) definition incorporates a range of different tools and activities used to drive improvement. Action may be at individual. financial management and improvement systems to enable policy makers and managers to make informed decisions and improve services. however. Effective performance management arrangements can help to integrate planning. performance management means collecting performance information. The Performance Management. regular and robust performance data can-do culture inspired by strong leadership Pakistan Tobacco Company . processes and data. service. one does not work without the other. Reducing levels of service in one area may free up resources to be used more effectively elsewhere.
combining challenge and support Transparent set of performance rewards and sanctions . Pakistan Tobacco Company .• • • agreed lines of individual accountability clear performance management review.
Design effective compensation and recognition systems that reward people for their contributions. Provide on-going coaching and feedback. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Pakistan Tobacco Company . Develop clear job descriptions. Negotiate requirements and accomplishment-based performance standards. outcomes. A performance management system includes the following actions. “Performance management” as a substitution for the traditional appraisal system. and training.PERFORMANCE MANAGEMENT SYSTEM :DEFINITION:A management technique intended to holistically consider the performance of (usually a group of) employees or machines to work towards optimum performance of a particular task or (more frequently) a group of tasks. Provide effective orientation. and measures. Select appropriate people with an appropriate selection process. Conduct quarterly performance development discussions. education. Performance management is a whole work system that begins when a job is defined as needed.
speaking to users and stakeholders about their experience of performance and getting a better picture of changing circumstances. reviewing performance. although the cycle may occur every month at a more detailed level. • Review: Understanding the impact of your actions. On an informal level. • Revise: Using the lessons learned from review to change your plans or what you do so that future action is more efficient. identifying actions that need to be taken and planning for improvement.THE PERFORMANCE MANAGEMENT CYCLE :- The Performance. observe performance and give helpful Pakistan Tobacco Company . take action and manage risk – and helping people achieve better performance. prioritizing what needs to be done. Management. Major strategic reviews and revision may happen only every few years. effective and appropriate. • Do: Ensuring that the proper systems and processes are in place to support improvement. managers may set tasks. Measurement and Information approach performance management is based on the plan-do-review-revise cycle: • Plan: Understanding current performance. The stages will look and feel different depending on where you are in an organization and the timescale you are looking at.
1 page. service and financial planning – fit together in the form of a long. Good and improving authorities usually describe their framework in a way that gives a clear picture of how different elements – for example. the plan do review revise cycle of performance management diagram (PDF. 65KB).or mediumterm cycle. Pakistan Tobacco Company . This cycle is set out in a diagram. corporate policy. community planning.feedback from day to day. The different levels in this cycle need to be integrated across various organizational levels – and with partners. This is sometimes described as the golden thread.
CHAPTER 2 Pakistan Tobacco Company .
Important aspects include reducing water and energy consumption and CO2 equivalent and managing our impact on biodiversity. Almost everything they handle – tobacco. minimising waste and minimising the use of natural resources. Their operations in Pakistan began in 1947. Businesses can enhance efficiency through environmentally sound technology. Operating responsibly "As a business that operates in a controversial industry. water. with brands sold in 180 markets around the world. air and soil protection. afforestation. we have an increased impetus to demonstrate to our stakeholders that we run our business in a responsible manner. making them one of Pakistan's first foreign investments. Company is committed to providing consumers with excellent products and to demonstrating that they are meeting our commercial goals in the manner expected of a responsible tobacco group in the 21st century. health and safety management are key to the sustainability of our business and one of our top priorities. Recycle. agrochemicals and raw materials. They seek to control and reduce our impact via the ‘3 Rs’ principle: Reduce. They are committed to conducting our business operations in a manner that sustains the environment and protects the health and safety of their employees. We monitor. by adopting a proactive approach to using cleaner technologies and safer systems of work while Pakistan Tobacco Company . Head of Corporate and Regulatory Affairs Pakistan Tobacco Company is already widely recognized for its work in afforestation. so it makes good economic and environmental sense for them to make sure their use of raw materials is completely sustainable.ABOUT PAKISTAN TOBBACO COMPANY LIMITED:- Pakistan Tobacco Company Limited is part of British American Tobacco. They believe good environmental practice is good business practice. measure and report our progress against targets and aim at continuously improving our performance. We currently plant 4 million trees per year.they the first multinational in Pakistan. Environment. board – is grown in the natural environment. Recover." Shaiful Bahari Mahpar. they produce high quality tobacco products to meet the diverse preferences of millions of consumers. and they work in all areas of the business from crop to consumer. optimising products and processes and conserving energy and natural resources.their programmes cover energy conservation. the world's most international tobacco group. paper.
PERFORMANCE MANAGEMENT SYSTEM IN PAKISTAN TOBBACO:- PERFORMANCE MANAGEMENT SYSTEM ACCORDING TO PTC:Performance management is highly developed process in the company. EFFECT OF PMS:The effect of performance management system is good. Pakistan Tobacco Company . corporate affairs. then there is process of progress against these and individuals’ performances are judged by achievements against these objectives. finance. IMPACT OF PMS:The impact. our performance management system on our production. After setting the objectives. Opportunities for good trainings as well as for self development enhance their skills and knowledge as well as bring positive changes in their attitude. Factories Rules 1978 Electricity Rules. 1937 Boiler and Pressure Vessels Ordinance 2002 Over and above all this. The next stage is how marketing. Energy used per unit production has fallen down. growth. Human resource and IT functions set their targets in line with company targets.ensuring compliance with all applicable National laws and regulations and British American Tobacco's Environment. We start the year by setting targets for the company and these are related to productivity. Health and Saftey (EHS) policy. The transparency of the personal performance management and the realistic and well aligned targets at all levels and different functions helps in boosting the moral of the employees. These targets are in line with the global targets of the parent company. This process ensures that all the members act in a direction in which the company wants to move. Labor productivity has seen year-on-year growth. responsibility and winning culture. Their manufacturing sites ensure compliance with the following national legislations: • • • • Pakistan Environmental Protection Act 1997 Factories Act 1934 & Provincial Govt. Pakistan Tobacco Company ensures compliance with the stringent British American Tobacco EHS policy which is a compilation of International Standards and Best Practices. is extremely positive. material wastage has gone down and increase in conversion cost is always below the inflation. This can be judged by the improvements in the productivity. The next stage is to set individual targets which are in line with the functional targets.
DEVELOPMENT AND EVALUATION There are two steps in development. High moral of employees High rate of innovation and a culture of continuous improvement. realistic targets resulting in good achievements year on year. The difference between the employee training and development is that. communications. The HRD specifies needs of training and arranges courses. reduced role of HR in performance measurement system (this might be considered as an advantage by some). Training and development ii.ADVANTAGES:The advantages of the performance management system are Transparency. Improved process and high product quality. The courses include office management. Types of training programs Training & Development An employee is trained in accordance with the needs of the concerned department. Employee development helps the employees and enables them to cope the future challenges and perform the activities in the coming future. Pakistan Tobacco Company . Reduced wastes and production costs. The annual report of the employee includes the courses he/she has received. objective evaluation. training and evaluation process i. Other thing is the employee development. which can be carried out in the country or abroad also. DISADVANTAGES:The disadvantages are time consuming. etc. costly software to support the system etc GETTING OVER ITS MANAGEMENT SYSTEM:COMPETITORS BY USING PERFORMANCE There are quite a few advantages that the company is getting through its performance management system: Attraction and retention of talent. that training is present oriented activity while development is future oriented.
such as head office. These competencies include knowledge. areas. regions. Pakistan Tobacco Company . • Evaluation. factories and from where raw material comes. which are developed for different employees. Types of Training Programs There are different types of training programs. Management Development Training In management training you conduct a training program to managers to enhance their skills such as communication. • Training design and implement. Overall Training Training is a planned effort by a company to facilitate employees learning of job-related competencies. what difficulties may comes in this process and how he work efficiently. Employees are expected to acquire new skills and knowledge.There are three phases of training and development. skills or behaviors that are critical for the successful job performance. The training programs also include International Seminars. Technical Skills Training Technical skills means that the technique and other information which needs a workers to work with a machine. At PTC there is a continuous assessment of the technical and managerial skills for the further enhancement of these skills formal training programs are offered at all levels. in preparation for the move to a managerial role. Orientation Orientation is always only gives to new employees which is selected by external recruitment process. coordination and aware them the new working experiences. In this we give the information of all departments. The training is crossfunctional for sharing of skills. apply them on job and share this information with other employees. The employees are provided with opportunities to put these skills into practice. • Assessment phase. Training is viewed at PTC as a way of creating intellectual capital.
Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. Line managers do their assessments. PROMOTIONS:In order to retain employees and keep them motivated. and punctuality and attendance of a worker. So.COMPENSATION GIVEN BY PTC TO IMPROVE PMS:PTC considers its employees not just as a cost but as a resource in which the company has invested from which it expects valuable returns. In production upgrading is easy. versatility. It depends upon the work performance. cooperation. EXTRA PAY FOR OVERTIME:If a worker works for more than nine hours in any day or for more than 48 hours in any week in a non-seasonal or seasonal factory he shall be entitled in respect of overtime worked to pay at the rate of twice of his ordinary pay. There are certain jobs to which eligible persons are directly promoted and do not require any further training. There is an annual assessment form. general knowledge. sign of in charge of department marks according to percentage point system. But certain jobs require special training for a particular period. Suitability means the suitability of the person in terms of his performance on the job and seniority means the time he has passed in PTC. which can translate into highly effective and productive work force.the suitability and Seniority. There are two bases for promotion in PTC . quality of work. The advantage of paying above the market average is the ability to attract and retain the top talent available. Pakistan Tobacco Company . when a person is to be promoted to these jobs they are provided with specified training. That is from January to December having remarks of unit manager. which is used to grade employees. the employees having good performance can be promoted to the next higher post. their immediate bosses. group operator to machine controller.
CHAPTER 3 Pakistan Tobacco Company .
This kind of formal appraisal in PTC for Business Support Officer is called Steps or Success Through Performance Evaluation the method used for managers is called PACE or the Performance Appraisal for Career Enhancement. The strength and weaknesses are analyzed and according to that a training program is arranged to overcome the problems. 2. Pakistan Tobacco Company . Monitoring our progress towards a certain time-limited target or objective. Like its better known siblings—sales and marketing. 4. based on the outcomes of planning activities. and accounting and finance—performance management has a key role to play in improving the overall value of an organization. The appraisal forms are rated by the mangers or concerned authorities on the basis of Core Skills and Functional/Technical Skills. 3. orientation. In business. because it helps us to further understand why we may or may not be meeting specific targets. Executing. supply chain management. Feedback can also be used to modify our expectations. training and other activates.CONCLUSION:- Performance appraisal at PTC is used to evaluate the job performance of employees. The comparison of the actual level of competency and the expected competency level which is also defined as meeting the success criteria gives a true picture of where these employee stands. Formal appraisals are needed to help managers with placement. Analyzing further to understand why we may or may not be on-track to meet a specific target or objective. HR department use the information gathered through performance appraisal to evaluate the success of recruitment. human resources. In PTC a standard measure is a Success Criteria that reflect the behaviors needed to embrace to meet the future demands. a similar process takes place: 1. pay and other decisions. by making decisions and taking action. selection. placement. Feedback is important to us. and to set new objectives over the course of the program. Performance management is a quickly maturing business discipline. Planning what we would like to happen based on insights from analysis of trends in our industry and events that impact our business.
5. based on what we have analyzed. Here we build one or more scenarios to help us predict certain outcomes. These outcomes help us to confirm or refute our choice of tactics to meet our objectives. Forecast what we think will happen. Pakistan Tobacco Company .