Final report

Course: Human resource management

Instructor: Tahseen Saad

Submitted by:

Sohaib Sharif

Muhammad Hamza Khan

M Fahad Ayub

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Table of contents
1. Company Overview_________________________________________________ 3
2. Introduction_______________________________________________________ 3
3. Perspective________________________________________________________ 4
4. Hierarchy_________________________________________________________ 4
5. Departments_______________________________________________________ 5
6. Recruitment_______________________________________________________ 5
7. HR procedure being used in different departments of Gul Ahmed____________ 6
8. HR policies regarding issues of employees_______________________________ 7
9. Performance promotion policy________________________________________ 8
10. Criteria for Termination of Employees__________________________________ 8
11. Training Policy____________________________________________________ 9
12. Motivation and Compensation_______________________________________ 10
13. Labor Relation____________________________________________________ 10
14. Future Planning___________________________________________________ 11
15. SWOT analysis___________________________________________________ 12
16. Impact of COVID-19______________________________________________ 13
17. Interview Recording_______________________________________________ 14

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Company Overview
The narrative of textile in the subcontinent is the account of Gul Ahmed. The group started
exchanging textile in the mid 1900s. The gathering entered in the field of assembling with the
foundation of the present notorious name of Gul Ahmed Textile Mills Ltd in the year 1953.
Since its posting on the Karachi Stock Exchange in 1970, the organization has been gaining fast
ground and getting a charge out of a main situation in the realm of materials.

With an introduced limit of in excess of 51,840 axles, 300 best in class weaving machines and
most present day yarn coloring, preparing and sewing units, Gul Ahmed is a composite unit –
making everything from cotton yarn to completed items. Gul Ahmed has its own hostage power
plant including gas motors, gas and steam turbines, and reinforcement diesel motors. Putting
stock in assuming its job in securing the climate, Gul Ahmed has additionally set up a waste
water treatment plant to treat 100% of its pro fluent, carrying it to NEQS levels.

Gul Ahmed is assuming an essential job as a material goliath, yet has its solid presence in the
retail business too. The launch of its lead store – Ideas by Gul Ahmed denoted the gathering's
entrance into the retail business.

Introduction
The person we interviewed is tanveer zafar, a senior HR manager of Gul Ahmed Textile
Industries who has been working there since the last 5 years. Before this he had worked in many
different industries of different nature and this was his first experience in a textile industry. He
has worked in Abott, Shell, PSO and many other. He did his MBA and other diplomas from
Federal Urdu University. He is working as a HR Business Partner, looking after the processing
division and production department in the Gul Ahmed textile mill number 2 which is located in
landhi. There are more than 18000 employees working across different branches of which 90%
branches are located in the landhi area, where the production starts from raw cotton all the way
till the finished product. Gul Ahmed started as a trading company in early 1900’s but later on

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they entered the pasture of manufacturing with the brand name of Gul Ahmed Textile Mills in
1953. In 2003 they started the journey of ‘Ideas’ to cater the new retail market of clothing
products offering different value added products at very low and reasonable prices. As the prices
of cotton increased, they tried to change the definition of retail by introducing the different
products for home, men, women and children. At this moment, Ideas by Gul Ahmed is standing
in the retail industry with more than 100 outlets nationwide with national and international
customers. The growth rate is also very stable and good, and the market shares of Gul Ahmed
Ideas in terms of worth of total shares in the year 2018 was PKR 3.25 billion. Few of the main
competitors if Gul Ahmed are Alkaram, Khaadi, Sana Safinaz etc. Gul Ahmed Holds upto 80%
of the total shares in the textile industry and generates more revenue than its competitors. Most
of the revenue generated by exporting fine quality products all over the globe. Also, it has the
least ratio of imports in the textile industry meaning most of its raw materials are from within the
country promoting the local markets too. Gul Ahmed's products are accepted and recognized all
over the world. Gul Ahmed was the first company to be listed in the stock exchange of Pakistan
in 1970-71 and has been leading ever since, both in textile and as well as the retail business.
Having a diverse product line, it has captured both the domestic and international market in a
very short span of time, making it a globalized firm.

Perspective
A few years back there was a conventional HR department which only dealt with the hiring,
recruiting and firing issues, but as the years are going, this traditional role of HR is slowly
changing. Although it had changed a lot earlier all over the world but in pakistan it still is in the
changing process. Now HR has changed into a business partner of any organization or also called
division business partner. Which means that now it has to look after a whole lot of different
issues and problems and have to solve a lot of different hurdles. The new HR business partner
now has the same goals of the director level management and also the employees. It now works
according to the directors and have to take along the whole organization with them keeping an
eye on every department and all its problems. In other words, now HR has to learn the whole
business from the roots to understand each and everything related to the business so that new and
better strategies could be made to flourish the business. It has to understand the nature of the

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business and work according to it to make better future plans. By this, the domain of HR has got
very wide, now an HR team also has engineers to build better infrastructure and machinery,
diploma holders, people who have got different business field experience and know how to run
specific types of business, technical staff to deal with modern technology and many more.
Because of this revolution inside the HE department, the pays have also increased. The best thing
about the HR department is that there is a lot of exposure in this field, you have the chance to
meet many different people from different backgrounds, may it be personal life, work or business
related, there is more chance of learning new things daily. And also, there isn't a lot of gap
between the upper level management and the HR personnel, and has easy access to anyone
working inside the organization may it be a worker or even the CEO.

Hierarchy
In any organization, there are 3 tiers of management .The top level management, the staff level
and the workers. In Gul Ahmed, there are about 60% workers and 40% top level managers and
staff. There are two kinds of organization, structured and an unstructured organization. Although
in a structured organization everything is very structured and systematic and everything a very
defined way but, one thing that lacks is that there is not enough chances of learning and growth
as the system is so limited and bound. There is not enough freedom to think, to talk about
different ideas, to look at other stuff other than just work. Whereas in an unstructured
organization, there is more learning, there is freedom of giving new ideas, and has better chances
of growth. Although it also has rules and regulations, there is a less formal work environment
because of which there is less gap between the employees and the upper level management so
that's why they interact more often and have a friendly atmosphere which is a motivating factor
for them. Gul Ahmad is also an unstructured organization. There is very less communication gap
between everyone that is working in this organization. Infact, the upper level management pays a
regular visit to the production department to see how things are going and to boost the morale of
the workers which work more efficiently after interacting with the management as it is often seen
that the there is a huge gap between the workers and the management and workers are not
allowed to even speak to the management and cant tell them any issue they are going through
and have to take appointments and wait a long period of time before they can meet and address

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their issues. So that's why when the management visits the workers and listens to them and ask
how they are working and if they are going through any difficulty so they are very motivated.
Apart from that, if any worker wants to meet any top level management, they can simply just go
to their office and see if they are free, they can easily just meet them, or they can contact the HR
team which will immediately take them to their office.

Departments
There are 2 departments, the production department and the support department. The main aim
of the production department is to produce, whereas the production support department has to
look after a lot of things like quality control, inventory management, laboratory work, supply
chain department etc. The services include HR, finance, safety measures, procurement etc.
Basically the whole production department has to be looked after by the HR business partner.
They have to keep a check on each and everything starting from raw materials to the finished
goods, how the goods are being made, how the staff is working etc.

Recruitment
In the new HR model, the only goal of HR is not to just hire someone and their duty is done and
now they don't have to anything else regarding the person they hired for the company, but now if
they hire someone, they keep looking after that person for a specific time and keep a check on
whether that person is worth the job or not and whether they had made a right decision hiring
him. Now the HR department evaluates the performance of him for 6 months, keeps a check and
balance and does a regular followup to know how he is doing the job. There are two types of
hiring, refer hiring and social hiring. Refer hiring means in which someone from the organization
refers to someone for a specific job. The referred person may already be working inside the
organization or maybe he is a mutual of the person that has referred. If the referred person is not
eligible and is not worth the job, there appears to be a question on the person who has referred.
The other type is social media hiring in which ads are posted on different platforms of social

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media like the internet or maybe physical like newspapers, billboards etc. Internet platforms
include facebook, instagram etc. After this stage, if a person applies for the job, may he be a
referred person or he applied after watching social ads, he has to go through a series of well
defined entry tests in which he has to meet different criterias. There are two tests, one is for a
worker level and the other is for an employee or a staff level. For the worker, the test starts with
a written exam in urdu, in which he is asked various questions regarding different environmental
issues and regarding the kind of organization he has applied in for. The minimum studies criteria
for a worker is Matriculation. After the written test, a technical interview is conducted in which
he is asked how much he knows the job and how skilled he is regarding that specific work. It is
viewed how can he handle the technical issues at work. After this a behavior interview is
conducted. In this interview the overall behavior is monitored so that they know how he can
handle different issues at work and what kind of behavior he has towards the work. If he passes
these tests, then he is finalized for hiring. But before he is hired, he goes through security
clearance, and after this he gets safety training because he now has to work in a production
department handling different kinds of dangerous machinery. This is the last step and after this
the worker is finally approved. For a staff member, the test is pretty similar except for the written
test, as he will have a test according to his specifications and what type of job he has applied for.

HR Procedure being used in Different Departments of GUL

Ahmed
The man is vital resources of the organization because they think,speak, so that utilization
of this resource is very critical. Every success of origination is depending on efficient and
effective man power. HR starts when a man enters in the organization and its end, when
he leaves the organization. HR deals with the human dimension.
The goals of the CEO and every single employee and labor are similar and this is the duty
of HR to align this goal. Head of HR NaveedZafar has mentioned in the interview that
through proper trainings HR align the goal of CEO with the goal of every employee.
HR help production department in a way to recruits the skillful worker which helps
department in growing business. Developing and maintains quality of work life.

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 Spinning Department HR depute the modern machines and hire skillful worker to operate
that machines for that they need experience workers which they have to recruited
carefully. More or less procedures are same and mention below
Contribution HRM to different department of Gulahmed:

1. Helping the organization to search its goal.

2. Employing the skills and the activities of the workforce efficiently.
3. Providing the organization with well trained and well-motivated employee.
4. Increasing to the fullest the employee’s job satisfaction.
5. Developing and maintaining quality of work life
6. Communication
7. Helping to other department and function

HR Policies regarding issues of employees

In Gul Ahmed employees are divided in 2 categories

1: Daily wages works.

2: Salary based officer & Managerial level workers

HR provides work place protection. Provide them protection gadgets while operating machines.
So they cannot harm themselves while working. Such a policy includes innovative approaches to
compensation, pay for performance, flex-time, benefits, legal compliance and training of
company employees and related personnel. The key areas to HR policies include recruitments,
training, salaries and benefits, compensations, performance measurements, promotions, duties,
responsibilities, rewards and holidays, etc.

Performance Promotion Policy:

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In Gul Ahmed, all management employees are appraised annually for the period July to June.
Increments and promotions are given on the basis of their performance.

Performance Appraisal form is sent on the completion of 5 month probation. Evaluation of

employee is done on the basis of the objectives assessment and overall performance during the
period. Appraisal is discussed with HOD with regards to employees overall performance and
objective assessment by HR central. Feedback of employee is taken regarding the overall
working during the probation period ensuring understanding of the employee regarding
evaluation. Gul Ahmed measures the performance through MBO (Management based
objective).

Each employee is assigned their individual goals and the desired output expected from them.
Objectives are evaluated for the previous year and to be formulated for the upcoming year (Julyto
June) on form Objectives by developing yardsticks / tools for objectives. Performance is
evaluated with respect to the objectives of the employee or by the average performance level
throughout the appraisal period. Joint session / individual meeting with the employee is
conducted if required. Increments are given with respect to July 01st every year.

Criteria for termination of Employees

Termination of a permanent employee is very rare happen in Gul Ahmed Textile because
organization strongly belief in strong relationship of an employee with company; until and unless
there is a very serious action done by an employee like harassment or theft of designs or any
other serious ill action done by an employee.

There also happens a termination of new hiring candidates who was on a probation period of 3
months and their performance in that period was not satisfying than company gives them 1
chance and prolong their probation period for another 3 months but if still their performance
doesn’t improves the company will not make them permanent and just terminate them.

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During a lockdown imposed by government of Pakistan in COVID period, GTM had faced huge
losses and terminated the low performers who have been given prior warnings. But organization
have also told them whenever the situation will become normal and production will be normal
than company will not hire new people instead it will appoint the same people who have been
terminated. And in August 2020 Company has brought back more than 70% of the employees
who have been terminated.

Training Policy:
Fresh graduates from reputable universities/institutes are hired for a period of six to twelve
months and are trained by experienced personnel. They are evaluated through different
challenging projects after which they are offered employment opportunities depending upon their
assessment and availability of vacancy.

Internships are given out to students of various institutions, both local as well as international,
every summer and winter in different departments, depending upon the business requirements.
On the successful completion of the internship, the students are awarded with certificates and a
fixed stipend.

Gul Ahmed offers practical exposure to students and fresh graduates through internships and
management trainee programs. In a challenging learning environment, these young individuals
execute tasks with responsibility.

Motivation and Compensation:

External Rewards:
Amongst external benefits the Gul Ahmed grants performance bonus, pay increases, and plans
monetary rewards for its employees. Performance bonus varies according to the performance of
each employee.

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Other benefits like medical, mobile, and travel allowances, provident funds, Leave Fare
Assistance, car, fuel expense etc. is also provided. This technique motivates each employee to
work harder and give out their best. The HR head of Gul Ahmed also believe in equality and
providing adequate life and medical insurance to its employees in holistic measures.

Internal Rewards:
Gul Ahmed always looks for energetic and motivated individuals having a strong desire to excel
in their professional career and those who harbor a passion to embrace challenges.

Some of the internal benefits at Gul Ahmed are achievement, Recognition, feedback,
responsibility, learning and growth. Apart from this, on the annual ceremony employees also get
awards for best performer, best trainer etc. Moreover, Gul Ahmed also gives away its souvenirs
to their personnel.

Labor Relations
Gul Ahmed does not have an exercising labor union. As said by the HR personnel that they do
not deal with the labor they only deal with employees and the conflicts between employees and
management can be easily solved. Gul Ahmed has almost 18,000 employees which are working
in different departments.

National Labor law:

Gul Ahmed follows the National labor law to avoid any conflict. As said by the HR personnel
the work environment is quite good that’s why we haven’t face any issue which causes trouble.

Future Planning:
Every organization has specific policies for their employees. So Gulahmed also set some policies
and amend some policies along with advance HR policies

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It is very important that all employees know and understand these policies through new hire
training, an employee handbook, and updates reflecting any changes in policy or within the
organization. Employees who are vested in the success of the organization should be viewed as
important stakeholders that make a difference.

Ensure effective utilization and maximum development of human resources. Identifies and
satisfies the needs of individuals. Achieves and maintains high morale among employees.
Provide the organization with well-trained and well-motivated employees.

Establishing and maintaining these objectives of human resource management within Gulahmed
is a key part of creating a well-thought strategic plan. All of these components will be part of a
comprehensive human resources management plan to ensure organization is poised to succeed
and reach their goals

SWOT Analysis

Strengths:
CEO and upper management support the employees, workers and interns.
Gul Ahmed also conducts the co-curricular activities, training sessions, and workshops
for their employees, workers, and interns.
Since Gul Ahmed has variety of online recruitment platforms so they’re able to cover
large audience.
HR department of Gul Ahmed emphasizes greatly on health and safety of its workers
especially workers at site area (Korangi). They are also determined to offer excellent
working environment to their employees.
Individual goals assigned to employees are smart in nature and are based on MBO which
makes it easy for each employee to perform up to mark.

The HR department of Gul Ahmed encourages managers and supervisors to provide

regular feedback to workers for reinforcement or improvements.

Frequent evaluation and updating of human resources practices and policies.

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Weaknesses:
Very centralized decision making.
Gul Ahmed covers minimum medical coverage.
Performance appraisal method used by HR department of Gul Ahmed has unclear
standards and may be biased.
Since HR department has many sub-departments, it is difficult for them to coordinate
amongst each other.
Gul Ahmed doesn’t have any work diversity.
Gul Ahmed does not have a labor union which makes it impossible for them to deal and
satisfy labor demands.

Opportunities:
Growth in export as a result of GSP plus status from European Union.
Less explored Americans, Canadians and Australian markets.
Growing retail market including expansion of ladies and gents apparel.

Threats:
Internal and external security system
Worldwide surplus production capacity resulting in price cutting war between the
competitors
Continuous increase in energy price and gas shortage will affect production and cost.

Impact of Covid-19
As the Covid-19 started spreading all over the world, the whole world went into a state of
emergency and there was chaos everywhere, and mankind was afraid of how things would go.
But as time passed and things got a bit stable, in the textile sector opportunities started to arise
for Pakistan. The main competitors of Pakistan in the textile sector are Bangladesh and India,

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where covid19 was more severe and the situation was much worse than in Pakistan. This was a
plus point for Pakistan as in those countries there was a complete lockdown for a longer period
of time but in Pakistan the situation was under control and lockdown only happened for a few
months and after that everything started working. So when the industries of our competitors were
closed, we had the chance to show our articles to the world because there was still a lot of
demand and orders. So after Pakistani articles were sent to those markets where once Bangladesh
and India ruled over, they liked it very much and there was a huge increase in the demand and
Pakistan already had a lot of orders in hand so they handled the demand very efficiently and
were able to supply everything needed. Because of this the textile sector of Pakistan boomed.
Pakistan started getting full fledged orders from all over the world now. Because of this there
was a lack of skilled labour and the demand of labour also increased which resulted in employing
workers supporting many families. The textile industries started buying more and more
machinery. Looking at Gul Ahmed, it bought new machines to cope up with the high demand.
Before Covid-19, Gul Ahmed had a capacity of producing PKR 77.1 million per month, as the
covid started, it had a drastic downfall and the production dropped to only PKR 3.5 million
production per month. But as the situation got better, it increased and now has crossed PKR 1
Billion production per month. So this period turned out to be a golden time for Pakistan and now
textile is contributing a very large amount to the GDP of Pakistan.

Interview Recording
Google drive link:

https://drive.google.com/file/d/1sy5HBymrgR0_XVOszavuFOJbhtFkYEkb/view?
usp=drive_web

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