ALLAMA IQBAL OPEN UNIVERSITY

Department of Business Administration

Course Human resource Management

Level COL.MBA/MPA

Course Code 5563

HRM Case study of Pakistan Audit and Accounts Academy,

Topic Assigned
Lahore

Name of Tutor Miss Farrazay

Name of Student Muhammad Nadeem

Roll No BN527844

Semester AUT-2017

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 Table of Contents
Page No
Contents
1. Title page 03

2. Abstract 04

3. Introduction 05

4. Major Characters 06

5. Company /Organizational Back Ground 07

6. Industry Objectives /context 08

7. Pakistan Audit & Accounts Academy's Values 09

8. Dilemma of Case /Story Line /Case Presentation. 10

9. Human Resource Planning and Forecasting 11

12
10. HRP Process (Forecasting HR Requirements, Methods of Forecast HR Needs)
11. Methods of Forecast HR Needs 13

12. Employee Recruitment and Selection (Recruitment, Advertisement and Job

14
Description, Standards for Selection, Special Attitudes, Interests, Sources of
Candidates)
13. Internal Sources/External Sources 16

14. Employment Selection Process (Initial Screening, Final Screening, Personnel

18
Specification Form, Interviewing, Selection Schedule, Reimbursement of
Expenses, Final Response)
15. Training and Development (Training Methods, Types of Training in PAAA, 20
Soft Skill Training, Computer Training)
16. Management Outcome (Strengths- Weaknesses) 23

17. Conclusion 24

18. Discussion 25

19. Exhibits 26

20. Acknowledgement 27

21. References 28

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Pakistan Audit and Accounts Academy,
Lahore

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 Abstract
Pakistan Audit and Accounts Academy, Lahore is operating on huge level all for the training and

retention of employee. HRM department is a great and timely need. This department has defined that

what are the goals and objective. This organization has and what are the goals of the organization.

Now they are excellently cooperating with management and implementing their rules and polices,

which Auditor General of Pakistan declared time by time.

Pakistan Audit and Account' HRM department is currently dealing with all workforce matters from

working environment to any certain injury. And facilitating employee for more productivity and

motivate them.

In Pakistan Audit & Accounts, all the rules and policies are implemented and some of them are

followed till now.

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 Introduction
Pakistan Audit & Accounts Academy (PAAA) is the supreme training institute of the department of

Auditor General of Pakistan dedicated to human resource development by way of imparting training.

Not only does it offer long term training for newly inducted probationary officers but it also caters to

the training needs of employees of the organization in line with the changing international

professional scenario. 'Audit and Accounts Training Institute, better known as 'Pakistan Audit &

Accounts Academy, is training provider in Pakistan. According to last 56 years statistics, PAAA has

million employees by June 2018. It still holds the leadership position with the largest training

network as well as subscriber base. PAAA's Head office is located at Government offices building,

Gurumangat Road, Lahore.

Audit and Accounts started operations in 1962 as the first Audit and Accounts Training service in

Pakistan Auditor General. Recently, it started offering ACL, FAM, NAM etc training.

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Major Characters:
Human resource management process is comprised of the staffing, development, motivation and

maintenance functions .Each of these functions, however is affected by external influences. In

Pakistan Audit and Accounts Academy human resources management is responsible for employee’s

dimension of organization. It is responsible for hiring competent people, training them, helping them

perform at high levels, and providing mechanism to ensure that these employees maintain their

productive affiliation with the organization.

Mission Statement of Pakistan Audit & Accounts Academy

Preparing and developing the human resource of the department of the Auditor General of Pakistan,
mainly, in their profession as auditors, accountants, managers and work facilitators, to efficiently

and effectively achieve the departmental objectives in the light of its training policy .

Pakistan Audit and Accounts Academy Vision:

"To be the leading Training services provider in Pakistan by offering innovative
communication solutions of our while exceeding shareholder value and exceptions"

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Company /Organizational Back Ground:

Pakistan Audit & Accounts Academy was setup at Lahore in 1962 under the control of Deputy

Auditor General (T&R). In 1980 it was renamed as Audit & Accounts Training Institute (AATI) and

its Regional Institutes were setup at Karachi, Islamabad and Peshawar. In December 1984, a post of

Director General was created and all the three regional Institutes as well as Railway Accounts

Academy Quetta were placed under the administrative charge of Director General.

The regional institutes were headed by Directors. Training centers were created in each field office

to train staff up to BPS-15 while training of B-16 and above was to be done at Pakistan Audit &

Accounts Academy.

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Industry Objectives/Context
In order to achieve its objectives, the PAAA performs the following functions:
• Conduct training, needs assessment.
• Develop an annual training plan for its human and physical resources and report progress of plan to
the Auditor-General at a pre-determined interval.
Deliver training program in the following areas:
o Specialized Training Program for Pakistan Audit and Accounts Service Probationers - BPS-17
o Computer courses for secretarial staff.
o Short courses in accounting, auditing, management and computer applications, for officers in BPS-
16 to BPS-21 on the following occasions:
• Changes in work methods;
• Maintenance of standards;
• Changes in equipment;
• Maintenance of capabilities;
• Changes in work codes, legislation or standards; and
• Special limited time executive assignments.
• Cooperate with other national or international training institutions and professional bodies for
achieving its overall mission.
• Train and develop its teaching faculty in the modern teaching techniques and methodology and
provide them with satisfactory work environment suitable for a training institution.
Pakistan Audit & Accounts Academy (PAAA) Lahore, which is headed by a Rector (BS-21), acts as

the Head Quarter for all the four regional academies at Islamabad, Karachi, Peshawar and Quetta. A

Director (BS-19) heads each of the regional training academies except at Peshawar where a Deputy

Director (BS-18) heads the regional academy.

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Pakistan Audit & Accounts Academy's Values:

Total Customer Satisfaction:

Participants of training are at the heart of our success. They have placed their trust and confidence in

us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their

expectations.

Business Excellence:
Pakistan Audit & Accounts Academy strives for excellence in that entire PAAA do. PAAA aspire to

the highest standards and raise the bar for ourselves everyday. This commitment to delivering world-

class quality translates into unmatched service and value for our customers and all stakeholders.

Trust & Integrity:

At Pakistan Audit and Accounts Academy, we take pride in practicing the highest ethical standards

in an open and honest environment, and by honoring our commitments. Pakistan Audit and Accounts

Academy take personal responsibility for our actions, and treat everyone fairly, and with trust and

respect.

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Dilemma of Case /Story line /Case Presentation:

Human Resource Management Process in the Organization:

Human resource management process is comprised of the staffing, development, motivation and maintenance

functions .Each of these functions, however is affected by external influences. In PAAA human resources

management is responsible for employee’s dimension of organization. It is responsible for hiring

competent people, training them, helping them perform at high levels, and providing mechanism to

ensure that these employees maintain their productive affiliation with the organization.

Pakistan Audit & Accounts Academy will achieve this by

 Inspiring and motivating its people.

 Developing its people to strive for higher standards.

 Driving an open minded and enterprising corporate culture where people through

leadership at all levels dare to dream, dare to try to fail and dare to succeed.

 Attracting and recruiting the best talent.

Pakistan Audit & Accounts Academy has a very defined and well structured department and its

various polices of keeping each employee productive part of the organization are intoned with the

corporate world requirement

Employee in the company is largely committed to their organization and has shown progress in the

company. Employees are satisfied with the HRT department of Pakistan Audit and Accounts

Academy GSM Company.

Human are the best tool having competitive edge in the market for most of the organization.

Employees has one of the best HR system in Pakistan that gives it an over its competitors.

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Human Resource Planning and Forecasting:

Whenever an organization is in the process of determining its human resource needs, it is engaged in

a process we call human resource planning.

Planning provides a sense of purpose and direction. It is a comprehensive framework for making

decisions in advance. It also facilitates the organizing, leading, and controlling functions of

management. Planning: allows you to make your decisions ahead of time, it helps we to anticipate

the consequences of various courses of action, it provides direction and a sense of purpose, it

provides a unifying framework against which to measure decisions, and thus helps you avoid

piecemeal decision making. Planning also helps identify potential opportunities and threats, and

facilitates control. It is concerned with the end (what is to be done) as well as with means (how it is

to be done).

The emergence of new training companies, market has become much more competitive and

employees are less loyal of the company. Whenever they get any opportunity better than existing job

they just opt for that which is there right, .However Pakistan Audit and Accounts Academy is

aware of this fact and that is why they do not have formal strategy for succession planning. They do

consider the people from inside but proper succession planning is not practiced in Pakistan Audit &

Accounts Academy these days. When they entered in to market they used to have strategy regarding

this matter.

But now due to market trends they have transformed there new strategies. According to the

management it is not useful to invest a lot in the employee at a larger extent. They do develop

employees for there career planning but no formal succession planning practice.

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HRP Process
“Process of determining an organization’s human resource needs “

HRP process broadly an effort to anticipate future business and environment demands on an

organization, and to provide qualified people to full fill that business and satisfy the demands.

PAAA faces much competition in the training industry so now they are focusing on career

management of their employees in which they enable the employees to better understanding and

develop their career skills and interests and to use these skills and interests most effectively both

with in the company and after they leave the firm . Planning is the deliberate process through which

some one becomes aware of personal skills, interests knowledge, motivation and other characteristic

acquire information about other opportunities and choices, identifies career related goals and

establishes action plans to attain specific goals.

In PAAA enlarge the pool of people qualified to fill the projected vacancies through such actions as

recruitment, selection, training, placement, transfer, promotion, development and compensation. In

PAAA HRP Process controlled evaluation to provide feedback on the overall effectiveness of the

human resource planning system by monitoring the degree of attainment of HR objectives.

Forecasting HR Requirements:
The purpose of human resource forecasting is to estimate employee requirement at some future time

period. Such forecasts are two types. The external and internal supply of labor and the aggregate

external and internal is demand for labor. Pakistan Audit and Accounts Academy have to prepare

one year, Annual Training Plan and Short Period i.e. 3 or 2 or 1 week training plan on the basis of

future forecasting of have to create more attracting pay packages so that more and more people come

in to organization representing that situation. A model is an abstraction of the real world.

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Methods of Forecast HR Needs
In Pakistan Audit and Training Academy, the managerial manpower requirements at the division

level will be function not only of such forecasts but also of other data reflecting attrition rates among

percent manager’s promotions and transfers between divisions, and prospective promo ability of

junior managers. Short range forecasts (up to 2years) will probably be easier to make than

intermediate ( 2 to 5 years )

 In PAAA, the longer period of advance planning, the greater possible margin of error in

forecasting But whether the period one year, two years or five years. The forecast has to be

based on some estimate of the future demand for final products changes in technology and

financial resources which may affect the organizations capacity to meet the market forecast.

 In PAAA finding it necessary to attempt to forecast their managerial requirements is as a part

of management development process as well as general planning process.

 In PAAA method used external and internal supply of labor, Recruiting and hiring of new

employees are essential activities for virtually, at least over long run.

 PAAA has established MIS department in which they have employee information software

where they keep record of all activities of each and every employee so that they can find

information about that specific employee which they want.

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Employee Recruitment and Selection
Recruitment:
This is an important step in the total staffing process for attracting qualified individuals for

appropriate job in the organization. Job analysis is a key stage in recruitment. It gives the base for

deciding where to look for people, for drafting advertisement, for interviewing and making the final

selection.

Recruitment is discovering potential applications for actual anticipated organizational vacancies. It

involves seeking viable job candidates. The two goals of recruiting are generate a large pool of

applicants and to provide enough information for individuals to self select out of process .Influences

that constrain HRM in determining recruiting sources include image of the organization ,

attractiveness and nature of the job, internal polices, and recruiting budget. In PAAA, the activity to

fill a vacancy fill a necessary jobs starts with requirement communicated by the respective managers

to the HR department. The HR department then looks for the possibilities of the internal and external

recruitment

Objectives:

To ensure the management selection:

 Is directed towards attracting and retaining capable and qualified management staff, which are
willing to contribute their best efforts to accomplish the objectives of the company.
 Is based on predetermined and well-considered criteria, which are valid in ensuring as
reasonable assessment of a candidate’s potential for future occupational success or failure in the
organization.
 Is based on assessments, which are objective as far as possible and include the full participation
of all concerned personnel.
 Is programmed according to a schedule.
 Is well supported and coordinated throughout the group by central personnel to ensure
uniformity of standards.
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Advertisement and Job Description
Making Advertisement is one of the critical issues in recruitment process because HR department

should design such type of an advertisement which helps to attract suitable candidate. For this

purpose we should mentioned all the personal specifications for each job title. For this purpose Job

Descriptions are used. Job description is a concise statement of duties, responsibilities, relationships,

environment and authorities built into a job. The description outlines the requirements for

performing the work, its frequency and scope. It is based on the nature of the work and not on the

individual currently performing it.

Standards for Selection

There are predetermined standards laid down for each vacancy so that the recruitment made is

efficient and accurate. For this purpose proper job studies and personnel specifications are drawn up

by the HR department or head of the area in which recruitment is made.

Special Attitudes
Does he/she possess any marked mechanical aptitude, manual dexterity, and facility in the use of

words or figures, talent of drawing or music?

Interests
To what extent is his/her interests intellectual, practical constructional, physically attractive, social

or artistic?

Sources of Candidates
Recruiting is more likely to achieve its objectives if recruiting sources reflect the type of position to

be filled. There are two types of sources Internal and external.

In PAAA uses recruiting internal and external sources

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Internal Sources:
The internal sources are a promotion from with in concept.

In PAAA internal recruitment is done for the managers of the higher grade and Directors. When a

position is vacant The HR department views the past performance of the people working at lower

levels that the vacant position and chooses the right who is promoted to that position.

At the manager and director level, the internal recruitment process is mostly carried out but when

managerial position is vacant and suitable person is not available for the desired post with in the

organization then external recruitment is carried out.

Promote from with in whenever possible policy had advantage.

 It is good public relations.
 It builds morale.
 It improves good individuals who are ambitious.
 It improves the probability of good selection, because information on the individual’s performance is
readily available.
 Those chosen internally already know the organization.

External Sources:
For external recruitment in PAAA, the line Audit Officers are required to make a requisition form

for the job in which they have to mention their need taking in account the budget for establishment

and salaries for their position of Management, Business support officers and workers . Role profile

for the specified job is also prepared matching up the requirement and the grade of the job. Training

period is also specified on the requisition form.

The requisition form along with the role profile is sent by the line manager to functional director for

approval and then forwarded to HR Manager. The HR manager confirms the availability of budgets

required for establishment, salaries and cost of advertisement for the job. After all this requisition

form is along the job profile and the budget forecast is sent to the HR Director for his final approval.

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After approval from the HR Director the HR Manager and the line manager work hand in hand to

prepare job person for advertising or giving to the head hunters.

The source of PAAA uses attract applicants are.

 Inviting applicants through advertisement.
 Recommendations from the head hunters.
 Applicants obtained from the data bank Pakistan Audit and Accounts Academy, where direct
applicants are received from time to time.

After a substantial amount of applicants have been received , the line and the HR Managers again work
together to shortlist the applicants .This is done by carefully going through all the applicants and giving
weight age to the following criteria .
 Quality of early schooling.
 Grade obtained
 Extra-Curricular activities. Overseas travel and education.
 Age
 Target University .Relevant experience

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Employment Selection Process:
There are two ways of recruitment method in Pakistan Audit & Accounts Academy, Lahore, if a vacancy
appears in any department then first of all a notification is issued to HR department from the relevant
department then a notice from HR is issued in entire organization for internal recruitment. If there is not any
suitable candidate is found within the organization, an advertisement is placed in the English leading
newspapers. Pakistan Audit & Accounts Academy, prefers to receive the Soft and hard copies of CVs
through proper channel

Initial Screening:
The HR department prepares an applicant summary giving all essential details of the applicants. If any
applicant doesn’t fulfill the selection criterion that is the relevant experience and education then he is not
called for the next process.

Final Screening:
Pakistan Audit & Accounts Academy uses the concept of Hay Management. According to Hay Management
20% weight age is given to technical and 80% to behavioral. Usually Ericsson uses test techniques to asses
the technical skills of the candidates and interview techniques to assess the behavioral skills.

Personnel Specification Form:

The candidates are asked to submit the Personnel Specification form. It helps in laying down the attributes
of a promising candidate for a particular job in the area of attainments, general intelligence, special
aptitudes, interests, disposition, potential, physical aspects, personal circumstances etc. Hence the
personnel specification form becomes a reference base, on which candidates can be rejected or considered
for employment depending upon the degree to which their attributes match with those in personnel
specifications. As such it serves as the basic tool to be used during an interview. Consequently, it also
serves as a reference during the interview as well as afterwards when writing assessments.

Interviewing:
In order to ensure greater effectiveness all preliminary interviews are held on a 1:1 basis. The recruiting
department of the respective city holds preliminary interviews for positions at all levels. However, the final
selection interviews are panel interviews.

Selection Schedule:
The entire selection process takes around two weeks after the requirement is finalized.

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Reimbursement of Expenses:
Candidates of all positions except the management trainees/interne are also reimbursed with the above
expenses, when called for the preliminary as well as the final selection at the Head office. In case of
management trainees, expenses are be reimbursed only when called for final interview at head office.

Final Response:
After the final stage of selection process, the HR department ensures that the candidates are informed
about their status in the process

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Training and Development:
Training is a planned effort by a company to facilitate employees learning of job related competencies.
These competencies include knowledge, skills or behaviors that are critical for the successful job
performance.
Training is a process whereby people acquire capabilities to aid in the achievement of organizational goals. It
involves planned learning activities designed to improve an employee’s performance at her/his current job.
Training refers to the methods used to give new or present employees the skills they need to perform their
jobs.

Trends:
 Skill requirements will continue to increase
 Workforce will become significantly better educated & more diverse
 Corporate restructuring reshapes businesses
 Technology will revolutionize certain training delivery methods
 The role of training departments will change
 More flexible courses aimed specifically at performance improvement
 More firms will strive to become learning organizations
 Emphasis on human performance management will accelerate

At Pakistan Audit & Accounts Academy, there is a continuous assessment of the technical and managerial
skills. For the further enhancement of these skills formal training programmed offered at all levels. The
employees are provided with opportunities to put these skills in to practice, in preparation for the move to
a management role.

Training is viewed at PAAA, as a way of creating intellectual capital employees are expected to acquire new
skills and knowledge apply them on job and share this information with other employees. The training is
cross functional for sharing of skill.

The employees are trained periodically either locally or abroad according to preplanned schedules. The
objective of such training is to upgrade the capabilities of employees.

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If an employee attends an overseas training then he/she has to serve the company for a certain period after
the date of completion of training subject to the cost and duration of training itself. In case an employee
leaves the company during this period he/she will have to pay the amount specified company during this
period he/she will have to pay the amount specified at that point in time.

Pakistan Audit & Accounts Academy needs well adjusted, trained and experienced employee to perform its
activities Employee training is a learning experience, it seeks a relatively permanent change in employees
that improves job performance. Training involves chaining skills , knowledge ,attitudes or behaviors .This
may mean changing what employee know , how they work, or their attitudes toward their jobs, managers
and the organization.
In Pakistan Audit & Accounts Academy training provided to the fresh candid dates by Experts they very
efficiently know that how to more better train them.
In course of training it is tried to cover all department and niche knowledge about the procedures and also
clearly define the goal & objective of the PAAA before them.

Training Methods:
 On job training Special training sessions
 Team Building
 Problem based
 Refresher courses

Types of Training in Pakistan Audit & Accounts Academy:

On general basis the training done in PAAA can be divided in to two categories
 Soft training
 Computer Training

Soft Skill Training:

Helping employees develop stronger base of knowledge on topics that affect their personal lives can make
them more productive and less distracted in their jobs. Soft skill development courses in all areas like
personal finance can help team better manage the most important areas in their personal lives.

This may include the following things for e.g.

 Conflict Management Training
 People Management Training
 Communication Skills

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  Audit Management
 Time Management Training
 Team Work Training

Computer Training:
This type of training has direct effect on the job of the employee. Specific skills are focused and developed
accordingly. The Technical trainings of Pakistan Audit & Accounts Academy are also included this along with
 Fraud Audit training
 Computer related training
 Accounts Checking and technology training etc.

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Management Outcome:
Strengths
1. PAAA has the latest employee training and development approaches. Therefore it can adapt to all sorts
of change and bring immediately improvement in work particles whenever the need arises.
2. PAAA hires only the most highly qualified and exceptionally intelligent and energetic people. This
resulting lesser HR problems as people are willing to change, take constructive critics and focus on
personal and professional development by focusing solely on achieving their work.
3. PAAA believes in making people realize their full potential and capabilities which is why jobs are
designed to be challenging and goals are made to be achievable yet competitive. This result in high
level of motivation and job satisfaction of the employees and automatically promotes a healthy work
environment.
4. The company has a well balance and realistic incentive programs. It also focuses on giving additional
benefits to its employees apart the basic remuneration. This result in the employee giving their “heart
and soul” in working for their employer.
5. The HR practices of PAAA greatly enhance its image as a company that wants to contribute towards
the society in every possible way. as the main focus is on developing better people not just better
employees.
6. There may be various other strengths of the HR practices and management system of PAAA, only the
most important have been discussed above.

Weaknesses
It is very difficult to find any weaknesses in the HR management of a company that has developed and created its HR
strategy with near perfection. However some weaknesses can be pointed out.
1. PAAA has a trend of maintaining long relations with employees and sticking with the same people as long as
it is productive. Most of these people and promoted from with in the company to from the middle and upper
management. This result in loss of creativity that can be recognized by external recruitment for these core
managerial positions.
2. The employees are supposed to work at late without being paid additionally. This creates mental tension.
3. CV’S are not properly entertained.
4. Certain non-financial rewards such as “employee of the year” which is used as motivation tool are not
properly communicated to the employees regarding their importance.
5. The most common complaint that is heard by the employees is the biasness of immediate bosses. That
creates a sense of concern within the employees.

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 Conclusion
To conclude PAAA has a strong HR system. That is the reason we didn't found much discrepancies in what
management says, what polices state and what employee say. 90% of the times they were same. There are
some minor discrepancies but they are adjustable with little effort.

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 Discussion
There are a number of opportunities that are available in areas of HR for PAAA during the course of its future
activities. These are:
 The company can discover great potential through the future graduates as every generation is being
taught in more effective manner that leads to better growth. Being a leading company in the
employment ranking of Pakistan PAAA can recruit the “creams of graduates” every year and utilize
their improved knowledge and abilities.
 There is an opportunity to create the best image of the company in the mind of customers by adding
the value added services.
 With the expansion in the company business in Pakistan, the HR department can be expended in
order to manage diversity of workforce.
 Due to entering of new companies in Training industry the competition has been enhanced. Like other
areas HR department is facing threat of employees from PAAA to other companies.
 The skilled and qualified workers are being attracted by the other Training & multinational Training
companies.

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 Exhibits

Organizational Structure

Auditor General of Pakistan

Mr. Javed Jehangir
Rector
Mr. Azhar Hameed
Chief Instructor
Mr. Shufaat Bokhari
Director Administration
Ms. Faryal Munir Magsi
Director Long Training/Probationary Officers
Mr. Fakhar-uz-Zaman Ali Cheema
Director Short Course
Mr. Ashfaq Ahmed Malik
Chief Administrator Officer
Mr. Abdul Mateen
Director Information Technology
Dr. Tuqeer Ahmed
Chief Financial Officer
Andis Locmelis

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 Acknowledgement
In the name of Almighty ALLAH, the most gracious, the most beneficent by help of whom I am able to
complete my report and accomplished all the difficult tasks relating to this assignment. Here it is worthwhile
to mention that the importance of Allama Iqbal Open University who gave the serving people like me a
chance to enter into professional education like Ex.MBA through distance education system.
With a deep sense of gratitude, I extend my thanks to teachers at Department of Business Administration,
Allama Iqbal Open University who provided me the opportunity through this internship report to learn
practically.
I am also grateful to the Pakistan Audit & Accounts Academy management & their staff whose help,
guidance and co-operation enabled me to complete this report

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 References
Books Used
 Fundamentals of Human Resource management ( Eight edition )
 Managing Human Resources (Fifth edition).
 Management by James A.F.STONER.
 Management by Robbins.
 Management and development By Joseph Prokopenko.
Other sources
 www.PAAA.com
 Personal observation
 Teacher discussion
 Mr Nasir Ali Associate Organizational Development Human Resources F-8/3 Islamabad.

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