STRATEGIC HUMAN RESOURCE

MANAMGEMNT

HR AUDIT

ENGRO VOPAK TERMINAL LTD.

PRESENTED TO:
Sir Waqar Akbar

PRESENTED BY:
 Ameer Ahmed Khan  2035328
 Rahema Shakeel  2035328
 Somaiya Sumit  2035342
 Ujala Zaki  2035347
 Usama Waseem 2035349
Contents
DETAILS OF INTERVIEW ...................................................................................................................... 1
SUMMARY ................................................................................................................................................. 2
ENGRO VOPAK ........................................................................................................................................ 3
COMPANY PROFILE ................................................................................................................................... 3
VISION ....................................................................................................................................................... 3
MISSION .................................................................................................................................................... 3
HR DEPARTMENT OVERVIEW............................................................................................................ 4
STRENGTH ............................................................................................................................................ 4
WEAKNESS ................................................................................................................................................ 4
RISK ........................................................................................................................................................... 4
COMMENTS ON HR POLICY ................................................................................................................ 6
ORGANIZATION ......................................................................................................................................... 6
RECRUITMENT PROCESS ........................................................................................................................... 6
PERFORMANCE APPRAISAL....................................................................................................................... 7
DOCUMENTATION .................................................................................................................................... 7
ACTION PLAN........................................................................................................................................... 8
ADVANCED TRAINING ............................................................................................................................... 8
POSITION TRANSFER AND SALARY ADJUSTMENT..................................................................................... 8
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DETAILS OF INTERVIEW

INTERVIWER  STUDENTS OF SZABIST – MBA 36 SECTION I (FALL 2020)

INTERVIEWEE  Ms. Mahvish – Manager Compensation & Benefits
INTERVIEW DATE  25th Dec, 2020

The interview was conducted by the group of 5 students AMEER, RAHEMA, SOMAIYA,
UJALA & SUMAIYA who are the students of SZABIST, enrolled in MBA 36 program. Interview
was conducted on zoom due to the ongoing COVID -19 on 25th Dec, 2020 @ 5:00pm.
Interviewee Ms, Mahvish is Manager compensation and benefits of HR department of Engro
Vopak. She is associated with the company since last couple of years. She joined Engro Vopak as
a contractual employee and on the basis of her satisfactory she is promoted to Manager level in
less than 2 years. As per the information given by her, currently there are 200 employees of Engro
Vopak. In every department, there is a department head followed by department managers or team
leaders of each sub – department. Team leads head the sub- department and supervise the
maximum of 5 people at their level. The 5 level includes Senior Managers, Managers, Senior
Executives, Executives and Officer based on the department requirements. Key takeaway of the
interview is discussed in the report.
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SUMMARY
Engro Vopak is a small organization related to chemical, gas and oil storage tank,
it workforce is around 200. Their business is not effected by high turnover due to
nature of having such nature of business. They set their goal every year. Made
polices what best for the organization and its employees. Set objectives according
to the need and requirement of the situations. They know how to recognize their
workforce and how to motivate them. The Human Resource Department at Engro
Vopak forefront the recruitment process to guarantee that the finest HR taken on
board. The check requires of hiring process are employment form need to be filled,
there is background check process, past company records, criminal records, degree
verifications and medical assessment. The data management system is
standardized. They do not destroy data of their employees. They have medical
insurance policies they have flexible car options at certain levels. They have good
life insurance plans. They take care mental/physical health of their employee.
Overall HR department at Engro Vopak is working with full dedication. However,
they are lacking in some of the process of organization and they are trying to
overcome them.
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ENGRO VOPAK
COMPANY PROFILE
Engro Vopak is a joint venture of “Royal Vopak of the
Netherlands” and “Engro Vopak Corporation Limited”.
It is the only Terminal and Storage facility for liquid
chemicals and LPG in Pakistan. It is just one of the 67
terminals of Vopak in 25 countries which has 34.7
million (CBM) capacity around the world.

Engro Vopak effectively extended its LPG storage

capacity in 2012; the total capacity for LPG presently
stands at 7000 MT. Our interest in the terminal activity
is currently over USD 100m with storage capacity of
82,400 cubic meters.
The coming together of this largest terminal service provider and storage of chemical, Oil and Gas
products in the world and Pakistan’s most diversified business group has actually resulted in
ongoing Provision of the world’s top class service to the growing chemical and petro chemical
industry in Pakistan since 1997

VISION
To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation
for all stakeholders

MISSION
Unlocking Pakistan’s potential through globally competitive, inclusive solutions to today’s
mostly pressing issues.
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HR DEPARTMENT OVERVIEW

Engro Vopak consider their employees to be one of the most important stakeholders and asset of
the company. The task aim of the company is to attract, hire and retain the best people.

Engro Vopak has made significant investment in a six-pronged strategy:

1. They create synergies across human recourse across the HR functions through the
implementation of a standard set of guiding principles
2. Provide growth opportunities in an effort to enhance the culture (this achieves through
organization development interventions such as training, traveling opportunities volunteer
work.
3. The strictest principles of merit in recruitment, compensation and promotion decision to
ensure that all employees are treated fairly
4. In order to create diversification, the recruitment and retention of women is done.
5. Safe working environment
6. Awards and recognitions programs are held. Encourage employees to build up to a
leadership position.

STRENGTH
 Being a small company, it is easy to control the organization and implement new policies
for HR department.
 More satisfaction of jobs results in less turn over.
 Open door culture motivates employees to take part in decision making process.
 Very well balanced incentive program, focusing on giving additional benefits to
employees other than basic remuneration

WEAKNESS
 HR department of Engro Vopak has no direct access to the management of parent
company which may cause to communication gap.
 Traditional method of hiring and selection is still used by the HR.
 Very small department leads to over work which may cause low efficiency.

RISK
 In recruitment process, there is a risk of finding the well qualified candidate at the right
time and the most cost-effective manner as Petroleum and Chemical Engineers are less in
number in Pakistan, so they needed to choose from selective number.
 Organization theft is also common now a day. During Covid there is also risk of leaking of
valuable data as many employees are working from home.
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 Health and safety of employees is also a risk factor for HR at Engro Vopak. It is a
responsibility of HR to have a proper system that control health and safety of employees.
Apart from the nature of industry, by looking at the current situation of Covid there is a
risk that work is done properly and effectively as many employees are working from home.
An unsafe working environment creates a risk of losing employees and the employees will
get demotivated to work which impacts their productivity.
 There is a legal risk that Engro Vopak can face if there is negligence in complying with
laws related to business which can result in failure of business too. It can arise from
dynamic changes in laws and regulations of business, for instance changes in taxation
policies.
 Having a best compensation and policy to keep the employee motivated and loyal with
company is also one of the major challenge for any organization. The Company
remuneration policy is competitively aligned and appropriately balanced in providing cash
compensation and benefits including medical and retirement benefits. The annual salary
rewards are connected with employee’s performance.
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COMMENTS ON HR POLICY

ORGANIZATION
At Engro Vopak, they set different goal every year made policies what best for their employees.
Set objectives according to the need and requirement of the situation.

Last year during lockdown, the most difficult job for HRM at Vopak is how to manage operation
remotely in pandemic? As their business nature required field work. They need some workforce
at the plant as they cannot shut down their operations.so they set their goal differently. Their
terminal had gone to work in shifts to rotations. They have to figure out how to compensate
employees who were working on locations as they are staying at the terminal for consecutive days
temporarily. They need to figure out how to motivate them to work for them in difficult times.
They called their worker as front line worrier during pandemic. They know how to recognize their
employees virtually. How to take care of them? They have set a medical facility for mental and
physical health of their employee.

RECRUITMENT PROCESS
The recruitment process is standardized and meant to ensure effective and efficient method of
selection. It depends on the job requirement who select the candidate for hiring.

Either HR or the department in which candidate is required. However, mostly it is a joint decision.
The feedback of department is very important because the job in Vopak terminal require unique
set of skills.

Their hiring process starts from receiving resume of the potential candidate along with the
organization standard form and ends at medical examination. After which the selected candidate
gets the final offer.

The negative point in their hiring process is for some important and senior level jobs, they arrange
the interview with heads of all the department and take decision on the feedbacks from all the
departments. Through this process there is a high probability that they may lose a good candidate
since not every person is good in everything. These type of processes are good and recommended
for the batches programs.

However, if it is for generic position as they hiring for HR or development or admin then they have
requisition filled by department managers. They have interviews taken by Department managers
and HR.
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Most of the employees are on contractual basis. Instead of hiring fresh new candidates from
outside, they usually do permanent their contractual employee or hire their best performer from
internship batches.

PERFORMANCE APPRAISAL
Performance appraisal at Vopak is very transparent. there is a 360-degree evaluation process.
Employee everything is being evaluated. They gave training to their employee on the evaluation
process. You have to evaluate your peer; you have to evaluate your boss. The feedbacks are very
important to them. If any employee gat negative remarks or not get good point in performance
appraisal, then strict actions taken against him.

DOCUMENTATION
Their documentation process is completely outsourced. Previously they managed their
documentation completely on paper based. However, in 2020 they have changed the whole process
from paper based to electronic based and it is with the third party. There is a high treat to
confidentiality of their employees as by shifting the paper work to electronic means third party can
easily use this data for any purpose. Moreover, there is no specific timeline of data retention that
for how long the data will be maintained in company’s record when the employee is no longer
associated with the company.
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ACTION PLAN
There are plenty of question which are still unsolved which includes How do they continue
recurring meetings? Are there any ways that are not currently set up to be completely paperless or
that need to be updated? For some organizations, these are brand-new challenges. Others may
have decades or even years of experience with remote staff. So let’s take a deeper dive into
common Human Resource policies and how they can be reconsidered for the greater good for
Engro

ADVANCED TRAINING
It is probably too late for many organizations to set up advanced training for remote working as
part of the pandemic (COVID-19). So, advanced training can give work force the Skills and tools
they need to succeed in a remote working environment while they are still in the in-person, face to
face environment they are used to before. So it’s necessary for human resource professional to
train employees accordingly and to help work force to do their jobs just as effectively if not more
from their homes. That will require a different set of skills, which includes:

 TIME AND DISTRACTION MANAGEMENT.

 COMMUNICATION ETIQUETTE.
Include guidelines on:
o acceptable hours to expect responses and sending messages.
o the right channels for exchanges (for example, use video conference
to make final decisions, chat to share documents, email to send
information before meeting, etc.)
o proper attire and surroundings for videoconferencing, and
expectations for continued collegiality and professionalism on all
channels.

POSITION TRANSFER AND SALARY ADJUSTMENT

It is important to notice that this operation must be exercised with particular caution, to avoid
possible labor litigation, which can put the employer at an obstacle. To reduce the legal risks, its
advised to consult with a local legal professional.

 RIGHT INTERVIEW PROCESS

The company should not use the boring traditional and conventional interview process.
The more procedural and strict approach the company will follow, the more nervous the
applicants would feel. Also it is recommended to do multiple rounds of interviews so
that the correct measure of passion of the candidate can be discovered.

 LEVERAGE TECHNOLOGY
Technology can be your biggest asset for the company in the hiring process. It can reduce
the manual intervention drastically and thus reduce manual errors as well. To sort out
the candidates, who would not make a great fit in the company culture, the company
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could easily give them an online personality quiz and see if they would be a good fit for
the company or not, rather than taking them for their word.

Not only does the company have to automate its recruitment process, it should also make
sure that everything is documented and archived properly. The company should also
automate the reporting procedure to easily comply the reporting requirements the
information should be recorded and maintained properly