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HRM: Engro Foods
[Submitted to :Nadir Ali Kolachi]
From the usual accounting statements and sheets to risk and portfolio management. 2. and Olpers cream. "Elevating Consumer Delight Worldwide". Marketing: 2 . The plant located at Sukkur on 23 acre land. Tarang. EFL wants to challenge the industry norms and surprise whom ever has eyes on EFL. Engro Foods has entered the Food business through milk processing and sale with the company’s vision to pursue growth opportunities based on country fundamentals and own strength. the Administration department ensures that all affairs run smoothly. 3. Administration: Efficient management of all administrative affairs of Engro Foods (Pvt. Engro Foods Limited defines its dreams: EFL dreams to be BIG. From legal matters to general day-to-day operations of the office. the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas.INTRODUCTION –ENGRO FOODS: Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. Engro Food’s vision: "To become a fast expanding mega foods company”. Olwell. Engro wants to be a major player in the food industry which is also evident in their vision. 1 billion which provides direct employment to 750 people. Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk.) Limited is the job of the Administration department. and to achieve this we will settle for nothing less than the Cream” In a nutshell. which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer and chemicals. DEPARTMENTS: 1. It also positions the company to leverage its corporate social responsibility initiatives and work closely with rural communities to promote integrated farming and livestock development. it has established itself as a major player in the foods business. Engro Foods has already set up two processing plants at Sukkur and Sahiwal. Finance and Accounts: The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. Engro Food’s Aim: “Dominate the food business. the plant has been established at a cost of Rs.
Quality Assurance: Quality Assurance is strictly followed in Engro Foods. Identifying the target markets.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Regularly modifying and updating the Company's accounting software is also the MIS team's responsibility. the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches its customers.Consisting of leading marketing professionals of the industry. retention and superannuation. MIS: The MIS department at Engro Foods ensures that all automation is running error-free at all times. all strategic decisions are made based on authentic information and research. is the job of the professionals running the marketing at Engro Foods. maintains and implements HR policies pertaining to employment. The department. 5. besides carrying out succession planning. is the responsibility of Milk Procurement department. From transportation management to obtaining route permits and approvals. is done by this department. Ensuring regular collection of fresh and pure milk right from the farmer to the factory and ascertaining the freshness of milk all across the milk procurement process. effectively communicating to them and building the image of the brands as well as the Companies. Production: Modern technology is part and parcel of Production at Engro Foods. 9. Supply and Distribution: This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. Human Resource: The Human Resource department at Engro Foods (Pvt. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods. who are graduates of top business schools of Pakistan. Milk Procurement: As all of Engro food products are milk based. the Marketing Department ensures that from product need identification to product development. consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers. launch and post-launch. Resumes of candidates are carefully filed and documented for current or future reference. 4. Qualified food technologists at this department ensure that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards. 7. 8. 6. 3 . making it one of the largest in the country. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300.000 litres of milk per day.
Model Town ‘A’. The principle of early job responsibility is followed wherever the company can.com Phone : (022) -2781275. HR PERSONNEL: CEO: Mr. Rb-2 Awami Complex 1-4 Usman Block. Abdali Road.Umer Road. 876354. Jalil Centre.4464504. For this reason the company concentrates on: • • • • • Placing an employee in an initial job which starts to use strengths and matches stated interests. New Garden Town Lahore Email : rolahore@engro. 2785875 MULTAN Nauman Shaikh 2Nd Floor. Bahawalpur Email : robahawalpur@engro. Introducing an employee early in the career to the people development system and giving him/ her feedback on own performance from the first year. In cases where traineeships are provided. Farid Town Road.885154 & 883541 LAHORE Eqan Ali Khan F-5 Ground Floor. Sahiwal Email : firstname.lastname@example.org Phone : (040) . Sarfaraz Rehman REGIONAL MANAGERS HYDERABAD Wajid Hussain Junejo 6Th Floor State Life Building Thandi Sarak Hyderabad Email : rohyderabad@engro. 7221630 BAHAWALPUR Khusrau Nadir Gilani 3 .com Phone : ( 061) 584117 .G. these are designed to bring employee up to the standard of skill and knowledge required in the shortest practicable time.118 SAHIWAL Nadeem Ahmad 79 . Multan Email : rmmultan@engro.The company believes that the best way to become integrated into their organization is to start contributing to it and to become accepted as part of its working community. Canal Colony. Providing an orientation program which helps understand the Company and its environment.com Phone : 042-5864428 4 .com Phone : (0621) 874354.
individuals may attend externally run programs and there may be cases where learning by planned job experience is the best answer according to different circumstances within the company. This has resulted in Engro being able to efficiently develop and implement large technological projects successfully. Cross training Distance learning Multimedia training Near transfer training On-the-job training (OJT) Team leader training. It has to be based on the knowledge. This form of development needs to be understood and actively supported by the employee and the supervisor. Training and Education at Olpers: The Engro Foods Company has a range of training programs. In addition ENGRO FOODS COMPANY do need assesment of training programs and leads to inputs into the overall training plans of the company to help them work towards realizing their full potential and then after that they do formulative evaluation of those programs and also uses different Training methods for their employees which are as follows: Continuous learning. Engro places a lot of emphasis on development of its technical resources also. skills. both core management and technical. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods. retention and superannuation. the Ministry of Industries and Production also established Olpers (Dairy Pakistan Company) on the lines and the main objectives of the company is to promote training and skills development of human resources associated with the dairy sector. every opportunity is sought to try to develop an employee through work related experience. To address future manpower needs of the 5 . etc Alternatively. maintains and implements HR policies pertaining to employees training. Relative to other dairy companies. In year 2005. besides carrying out succession planning. Therefore. On-the-Job Development at Olpers: The Engro foods company believes strongly that people grow and learn most effectively through experience. Employees contribution to assessing own training needs are welcomed as are the suggestions for suitable programs.TRAINING AND DEVELOPMENT MODEL: The HR department. Candid discussion in all employee interactions is encouraged and serves as an effective communication tool. which are used on a regular basis to develop skill and knowledge. and aspirations within oneself. Such development implies an expansion or stretching of abilities or aptitudes.
The organizational roles of hr department of Engro Foods Company includes: Human Resources management.company. vocational training school and a free clinic. runs a primary school. There are two different roles within the HR department of Engro Foods Company: the organizational ones and the operational ones. including HR support to business and HR design & delivery and Legal obligations including employee relations and well-being programs. Since its inception in 1999. including industrial relations managers (HR local specialists) who maintain relationships with other dairy’s HR specialist in order to remain competitive in this global world and to sustain long-term growth 6 . Training and Resource Centre at Olpers: Training and Resource Centre is the only teachers training facility in Ghotki district. employee career. a non-profit voluntary organization managed by company employees at Daharki. Sahara Welfare Society: The reach of vocational training program was increased with co-funding of USAID and (International Youth Foundation’s) program – (Education and Employment Alliance). training and succession planning activities are undertaken on an annual basis. more than 2500 teachers of Ghotki district have been trained at the centre. and on the other hand. that employees bring as much value-added as possible during their stay in the company. that the company acts in the interests of employees by giving them opportunities to advance their careers. The operational roles of hr department of Engro Foods Company includes: People management. on the one hand. A team of 4 full time PDTs carryout general and subject specific training sessions. HR MODEL: Engro Foods Company uses this HR Organizational model which basically describes the difference between main HR actors in their company to makes sure. Sahara Welfare Society. including company manager and Personnel management.
for the company. Car Allowance: For consulting positions a car allowance is included in the package. Pension and Life Assurance : After three months' service.their people . including. Benefits: At Engro Foods. with the maximum rising to 40 days per year after two years' service. for some people this amount is either too much or not enough.they base it on a certain percentage of the top performers among you. at Engro foods. Their employees lend the creativity and passion to meet business challenges with bold new ideas. or to take a cash alternative.to always keep employees above their profile's market value. ranging from medical. the top 50% performers qualify for bonuses. Holiday: Each employee is entitled to a basic 23 days holiday per year.healthy and happy. And its performance gauge is very different. Both roles are in fact involved in the HR process as far as they are responsible for the day-to-day HR management in the Engro Foods Company. The annual salary rewards are linked to employee performance. Employees can choose between 15 days and 30 days holiday per year. However. An Employee Share Option Scheme operated by the Employees Trust offers new employees the opportunity to acquire ownership in the Company. Gain Sharing: On top of their highest salaries and outstanding benefits are their performance based bonuses. They don't base employee’s performance on defined targets . They want to keep their most important asset . Highest Salaries: The salary packages Engro foods offer its employees the highest remuneration package that's far above the industry average. they value quality human resource. So every quarter. to financial and recreational. you'll get the highest salaries ever. medical and retirement benefits. COMPENSATION AND BENEFITS/ PERFORMANCE APPRAISALS: The Company's Total Remuneration package is competitively aligned to the best in the industry and is appropriately balanced between providing cash compensation and benefits. For this reason. every employee has the option to join the company's group personal pension scheme. All employees are covered under Life Assurance 7 . all their employees have the flexibility to trade salary and holiday. The package includes the following elements: Travelling and Subsistence Expenses: All employees will be reimbursed for any travel and subsistence expenses incurred in the course of their duties. It offers unparalleled employee benefits. And that's a major part of its compensation philosophy . So be you an experienced professional or a fresher.
To address future manpower needs of the company. Engro Foods Limited carried out certain compensation and performance APPRAISAL PROJECTS: REWARD MANAGEMENT : The reward management however is strictly performance driven and every opportunity is used to reinforce the culture of reward for performance. Engro places a lot of emphasis on development of its technical resources.from their first day with Engro foods. employee career and succession planning activities are undertaken on an annual basis. Relative to other chemical companies. an employee can elect to join the company's VIP private health scheme. strong communication skills and the drive to deliver and compensates them according to their relative performances. creativity. attractive and fair. training and developmental needs. The project has provided online consultation by specialist doctors to about 1400 patients to date. The system also focuses on the employee's training needs and leads to inputs into the overall training plans of the company to help them work towards realizing their full potential. To promote and strengthen a keenly competitive environment within the organization for enhanced quality and productivity. Pakola are the few names which have recently introduced their dairy product lines in the market. the format draws heavily on the employees own assessment of his job performance. to ensure that these remain suitable. The company contributes to the scheme and reviews its contributions on a periodic basis. good milk. To ensure employee participation and commitment to the system. Engro values people with passion. Permanent Health Insurance: Engro Foods provides Permanent Health Insurance to all employees from their first day. 8 . This has resulted in Engro being able to efficiently develop and implement large technological projects successfully. to the communities. Candid discussion in all employee interactions is encouraged and serves as an effective communication tool. en elaborate performance assessment and employee development system has been institutionalized which by design forces objectivity in employee appraisal against given dimensions of performance evaluation. PROJECT HOPE TELEMEDICINE INITIATIVE: The Project Hope Telemedicine initiative by Engro makes available doctors in no less than fifteen medical specialties ranging from neonatology to cardiology on a daily basis . COMPETITION: Competition is also increasing with the entrance of new domestic players in the dairy and food sector and plans to increase investments by the already established companies. leadership.and free of cost. career aspirations and any other employee related item that needs to be addressed. Nirala. Health Scheme: After six months' service.
The company’s reputation as a local giant actively involved with community welfare in remote areas has also been a positive add-on for Engro Foods. Today.”The name itself made it sound like a foreign brand. Nestlé’s largest milk reception facility in the world has a processing capacity of 2 million litres of milk per day. chemical and fertilizer) industry. “From the onset. Yet. “Olper’s is very strong in terms of consumer quality perception… our monthly blind taste tests show that consumers rate Olper’s significantly higher than Milk Pak and Haleeb. The critics had to grudgingly accept that the new entrant to the multi-billion rupee packaged milk category meant business. Brands like Milk Pak (owned by Nestle) and Haleeb Milk (from Haleeb Foods) had led the dairy market in the world’s fourth largest milk producing country for nearly two decades—without any real sustained competition. Nestle Pakistan opened a state-of-the-art milk processing facility in Kabirwala. and soon the brand had become a voice above the media clutter—a voice that differentiated Olper's brand from the others. bringing the dairy brand to the fore. the brand has a market share of close to 22 percent—second only to Milk Pak (estimated at 40 percent). but without much success. In March this year. This will ensure the increase in the consumption of processed milk instead of lose milk and so will in turn lead to increase in sales for the company. Billboards went up at key locations in the major cities. Milk Pak responded with campaigns of its own to reaffirm the positive equity of its brand and has largely focused on a message of health. Engro Foods aims to become the only company to utilize all of the milk collecting areas in Pakistan and also plans on developing the biggest dairy farm in the country. Punjab. Rafey comments on the increasingly competitive landscape. stepped into the foray by launching a massive campaign that started off with an introductory slice-of-life television commercial. Despite dwindling market share. the marketing manager for Engro Foods. Olper’s has woken up the competition. and strength through quality milk.Major textile groups are also diversifying into dairy and livestock business and some of them have even acquired lands to start their business. Branding experts could not imagine how Olper’s could distance itself from its parent company’s incredibly unappetizing. Haleeb implemented a response as well. Dewan Group of Industries and Shakar Ganj Sugar Mills have already made substantial investments in dairy & livestock sectors. Olper’s. and was unlike anything previously experienced by Pakistani consumers. Leading industrial groups such as Jamal Din Wali Sugar Mills. Engro Foods.” Competition may create opportunities for the company because each competitor in the milk industry wants to increase penetration of processed liquid milk and so they will create awareness for consumers through different advertising media. Also. by the end of 2006. 9 . and non-edible roots. in contrast. Haleeb increased its marketing in the media and commitment to promoting its brand. says. had only recently been established by Engro—a traditional giant in Pakistan's chemical and fertilizer (yes. Therefore there will be an opportunity for accelerated growth.1 billion (approximately US$ 15 million) and in 2008. newcomers such as the generically-named Good Milk and Pakola Milk have tried penetrate the market. vitality. chemical-laden. giving the perception of quality. we wanted to introduce a true paradigm. however. Rafey Nisar Zuberi. Evidently. sales for Olper’s Milk had reached Rs. The plant.
Engro foods is an equal opportunity employer. when and where to enter the market. are represented by trade unions who are their collective bargaining agents.CONCLUSION: This report gives us a deep insight into Engro Food performance as a classic example of how sound. other than marketing. an entry in a diverse field with very little or no on hands experience was a high risk. Still. It has not separately identified affirmative action initiatives. Some others who had entered the field failed to make any impact or inroads into the already established market players like Haleeb and Milk Pak. The journey of this very organization from Engro Chemicals to Engro Food provides us an opportunity to see how success may be achieved in the business world. All non-management employees. and employee friendly employee policies can help an organization not only to grow. expand but also to perform on competitive lines with the best in that field. It uses e-mail intranet. The launch itself was meticulously planned to get maximum mileage against the market 10 . It was a time full of market challenges.g. This enabled the staff to plan as how. efficient. Market surveys were conducted along the most scientific lines and data collected was interpreted by experts in the field. There may be faults in their marketing strategies or the quality assurance may be lagging behind somehow they could not create space for their new product in a market full of established players. Developing marketing strategies that help you create space for your new product. Engro Food did not enter the market without contemplating. While there is no specific policy statement forbidding child labor. their hiring practices are clear on complying with the minimum employment age mandated in Pakistan’s Labor Law. Engro foods has non-discriminatory policy for hiring and treatment of personnel in the workplace and it has no operations in an area that is home to distinct indigenous people. and printed communication to provide key information and to foster a dialogue about changes in operations. Nirala and Pakola). These new entrants to the market were not successful to niche a place for themselves in the market ( e. All the marketing tactics come into play and an organization full of new talent with skills refined and polished at the very best business schools of Pakistan and abroad at work nothing is beyond reach. the risk was undertaken with a firm belief on the part of the management that management is all about playing your cards at the right time. Engro foods inform employees of changes in the workplace through employee meetings and direct correspondence. All the homework was properly done before the launch. reflecting. However. Innovative and updated technology was used to analyses the findings and gaps were identified. planning with some of the most talented staff. Plans were made with the help of advertising agencies as how to launch the product where people may give up existing milk and opt for the new entry in the market. Its human resource policies support diversity and forbid harassment.
These results. still they belief where there is a will there is a way. low employee turnover. training.30. 11 . All these factors helped Engro Food not only to enter the market but capture 22% of the market is a very big achievement against any local or international benchmark. and more rapid acceptance and implementation of corporate strategy. Human Resource at Engro believes in learning by doing. high product quality. This transition was a superb act of HR in action. It had to fight against an image of chemicals. This major achievement had a lot to do with HR policies in terms of hiring. benefits and making the employee feel his/her worth in achieving specified goals of the organization against the strategic planning done by HR.000 people from a cross-section of society benefitted from it. embellishes them with the best training. lower production costs. The result of effectively managing human resources is an enhanced ability to attract and retain qualified employees who are motivated to perform.with a bang and made a place for itself against some of the food giants of the world ( Nestle ) in Pakistan. Staff is made to do things so that they get a firsthand experience. This HR that hires the best in the market. can create a number of competitive advantages through human resource management practices. not an easy transition. Social investment projects were organized and more than 1. They include greater profitability. rewarding. particularly if coupled with competitors who do not have the right people motivated to perform. and the results of having the right employees motivated to perform are numerous. The concept of a big organization involved not only in producing excellent products like Olper but also involved in community welfare has had a very positive impact on the image of Engro Food. Therefore adequate arrangements are made at the organization to impart training to the staff. gives them a sense of ownership and a shared vision on what is to be achieved. Engro Food is one of the few organizations that have through training contributed not only to the employees but to the community at large. It can take the shape of internal (in-house training) or external training depending on the specific need of the target audience. The innovative idea of giving it a name that sounded more foreign than local caught the attention of the common man. The excellent way in which marketing was done for Olper Milk for the point of naming the product to the point of making a household name in the major cities of Pakistan. fertilizers to that of quality milk.
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