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Acknowledgement
All praises to ALLAH ALMIGHTY, who guides us in the darkness and all respects for the Holy Prophet MUHAMMAD (PBUH) who enables us to recognize our creator. This dissertation would not have been possible without the encouragement and generosity of number of people. I am very thankful to Prof. Maj Nauman Majeed who provided me the opportunity to conduct this project work. And whose kind help was always been with me throughout the duration of my semester. I feel highly obliged and want to express my deepest heartiest gratitude to my family their encouragement, help and constant support.

Khurram Qayyum 10304

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..………………………... 12 ….22 ……………………………………………... 17 ……….. 13 …………………………………………….....……………………………………….……………………………… Page # …………………………………………. 21 ……………………………………………. 5 …………………………………………….………………………………….Table of Content Topic Introduction Organizational Chart Brief Introduction of other Dept HR Dept of PEL Strategic HRM Discussing process of SHRM in PEL Labor Union in PEL CBA working Benefits for Managerial Employees Benefits for Unionized Staff Major Challenges Working Conditions Steps Complying with Factory Act Application of Factory Act References ..... 4 .…………………………………………. 9 ………………………………………….... ...14 . 15 ..…………………………………..…………………………………..24 3 ..………………………………………...…………………………………………. 16 ……….8 …………………………………………. 20 ………………….. 19 ………..

switchgears and electric motors. PEL are also a Company on the go”. In October 1978. which is the largest and well-know industrial and commercial group in Pakistan. It is the oldest composite electrical equipment-manufacturing unit of Pakistan with the object of initially producing transformers. The result is a global business activity monitored through the various offices worldwide. The high growth rate proves the complete success of the professional management and provides sufficient confidence to trust in its future development schemes. The company comprises of two divisions:  Appliances Division  Power Division 4 . Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. The Saigol Group belongs to the Saigol family that is an old business family and has contributed a lot towards Pakistan’s industrial and believes in continuous development and growth. skilled workers and technicians through its apprenticeship schemes and training programmes. In 1962 after conclusion of joint venture agreement with AEG.INTRODUCTION Pak Elektron Ltd was established in 1956 with the technical collaboration of M/S AEG. West Germany. The company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers. PEL was taken over by SAIGOL GROUP OF COMPANIES. total shareholding was purchased than by sponsors M/S Malik Brothers Limited. Meeting Saigol’s traditions since its takeover by the group.

ORGANIZATIONAL CHART/HIERARCHY Power Projects Production MD.Haroon Khan Internal Audit Finance HR/Admn CEO Foreign Procurement R&D Director Operations Marketing/Sales Production/Mnfctrng Quality Assurance/Control 5 .

Haroon A. Masood Karim Sheikh Mr. Azam Saigol Mr. Tajammal H. Haroon Ahmad Khan Mr. Baqai (NIT Nominee) (NBP Nominee U/S 182 of the ordinance) (NBP Nominee U/S 182 of the ordinance) (NBP Nominee U/S 182 of the ordinance) (Chairman/Chief Executive) (Director ) (Director) (Managing Director) AUDIT COMMITTEE Mr. Bokharee Mr. Tajammal H. Wajahat A.BOARD OF DIRECTORS Mr. Gul Nawaz (Chairman/Member) (Member) (Member) (Member) COMPANY SECRETARY Sheikh Muhammad Shakeel 6 . Bokharee Mr. Khan Mr. Gul Nawaz Mr. Naseem Saigol Mr. Murad Saigol Mr. Azam Saigol Mr. Homaeer Waheed Mr. Muhammad Rafi Khan Mr.

CHIEF FINANCIAL OFFICER Syed Manzar Hasan AUDITORS M/s Yousaf Adil Saleem & co. Chartered Accountants LEGAL ADVISORS M/S Hassan & Hassan Advocates BANKERS Bank Alfalah Limited Bank of Punjab Deutsche Bank Faysal Bank Limited KASB Bank Limited Standard Chartered Bank My Bank Limited National Bank of Pakistan NIB Bank Limited 7 .

promotion. The financial manager manages the financial system and provides or raises funds for the purpose of the business. The financial system is composed of consumers. 8 . goods. FINANCE DEPARTMENT Finance department of the Company manages the financial system of the Company. SALES DEPARTMENT Sales department of the Company manages the sales functions of the business. manufacturers and distributors. services. The manager is responsible to achieve quantitative sales goals. organizations. planning. quality and cost of the products . executing and evaluating the marketing function.Royal Bank of Scotland Limited Brief Introduction about other Departments OPERATIONAL DEPARTMENT Operational department of the Company manage the operational system of the company. The Operational Manager manages the material. MARKETING DEPARTMENT Marketing department of the Company manages the process of planning and executing the conception. The marketing manager is responsible for formulating. and distribution of ideas. pricing. and events to create and maintain relationships that will satisfy individual and organizational objectives. Sales manager works for enhancement of sales.

Learning and Development. HR Dept of PEL HR VISION:   To achieve excellence through innovative HR practices and continuously exceeding our PEOPLE expectations. Main PROCESS OF HR:     Recruitment and Selection. performance management and organizational development and providing direction for the people who work in the organization. 2. learning and development. 3. 1. 5. GRADE CRITERIA: Managers of company are divided into the following grades. Performance Management. 4. Junior Executive Executive 3 Executive 2 Executive 1 Manager 1 Manager 2 9 . To manage talent and build capabilities of our people thus enabling them to deliver sustained performance. Organizational Development. Strength of HR Department  There are about 25 to 30 employees working in HR department. HR MISSION:  To facilitate them in creating a collaborative work environment that develops a culture of continuous learning.HUMAN RESOURCE MANAGEMENT: Human Resource Management is the function within an organization that focuses on recruitment and selection. 6.

Manager 6 HR Dept and its Sub Dept’s Organ gram R&S ER Manager HR (Unit1) HR Operations Performance Management Admn Manager HR (Unit2) T&D OD GM HR 10 .7. Manager 3 8. Manager 5 10. Manager 4 9.

HIERARCHY OF HR DEPARTMENT Manager HR GM HR HR Executives HR Officers HR Executives Manager HR HR Officers 11 .

Strategic Human Resource Management: Strategic human resource management is the proactive management of people. you will learn how your human resources. In short. that people add value to the business operations of your organization. 6. in order to minimize damage to your organization's image. Main Strategic HRM Processes:  Recruitment and Selection. 12 . To design performance incentive plans with the intention to continuously motivate employees and thus improve customer service in a dynamic environment. In Short: Strategic human resource management aligns your human resource function to your core business objectives. can play their important role in the accomplishment of the overall strategic plan and the success of your organization. 4. To ensure that HR people learn to think and act strategically when carrying out their duties and responsibilities. motivate and retain your talented employees. To arrange for the right training programs to enhance current skills of your people or to provide them with new skills in line with your core business activities and at the same time improve your organization's capability. To engage.and how these contribute to the achievement of organizational business plans.. increasingly described as “the only important asset”. To incorporate Human Resource plans into the “mainstream of organizational strategy and management". and planning ways for a company to better meet the needs of its employees. It requires thinking ahead. To instill belief on the importance of people in achieving the overall corporate plan. 3. and 7. This can affect the way things are done at a business site. according to existing laws. 2. Right strategic human resource management can help your organization … 1. To ensure that employee termination is properly done. and for the employees to better meet the needs of the company. 5. improving everything from hiring practices and employee training programs to assessment techniques and discipline..

these functions have been assumed by the state. Employees Details NUMBER OF TOTAL WORKERS: HR department work under two divisions i. Industrial Relation. ill health. Organizational Development.      Learning and Development. legal advice and representation for members is still an important benefit of trade union membership. the provision of professional training. Discussing Process of SHRM in PEL: In this project the discussing process is Labor & Industrial Laws Practices with SHRM. like Friendly Societies. old age and funeral expenses. Labor Union in PEL:   Provision of benefits to members: Early trade unions. Labor Relation. Performance Management. however. In many developed countries. often provided a range of benefits to insure members against unemployment.e. Labor laws & Industrial Act practices.  Collective bargaining: 13 . In PEL there is a good structured HR management. Appliances and Power division and about 750 managerial positions are in the Company and approximately more than 4000 workers are working in the Company. The application of Strategic HRM is widely in practice by HR Department.

No of Unions in PEL There is only one union in PEL named and its working unanimously for the benefit of workers and workers are satisfied with that particular union and trust on the efforts and steps taken by union. complaint procedures. work rules. benefits. This may include the negotiation of wages. Unionized Employees In PEL all workers lie in labor category are unionized. or financially support individual candidates or parties (such as the Labour Party in Britain) for public office. Political activity: Trade unions may promote legislation favorable to the interests of their members or workers as a whole. they may negotiate with employers over wages and working conditions.     Industrial action: Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals. To this end they may pursue campaigns. workplace safety and policies. 14 . Seasonal Employees There are at least 1000 to 1500 seasonal employees on contract basis hired by PEL from contractor in peak work season and those employees are not the part of union . The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers. All they are registered in labor union and take equal benefits from the efforts of Labor union. Type of Union in PEL In PEL we may say there is a type of “POCKET UNION” although it is working for the benefits of workers and maintaining a very strong bond between employer and employees. rules governing hiring. Labor Union in PEL The trade union or labor union in PEL is working likely to other Unions in other Organizations. The name of president of union is UMER SALEEMI. Where trade unions are able to operate openly and are recognized by employers. firing and promotion of workers. undertake lobbying.

CBA Agreement After negotiation and removal of conflicts between both parties’ employer and employees CBA agreement comes into existence.Name of Union In PEL name of labor union is “PEL LABOR UNION”. Procedure of Union /CBA Working CHARTER OF DEMAND Union set the demand plan called CHARTER OF DEMAND according to the wishes of workers with consensus than negotiation made on it between employer and employees Negotiation After preparation of CHARTER OF DEMAND step of negotiation come between employer and employees. Federal Govt to Employer and as well as Union office . Area Magistrate . CBA agreement copies to be send to Copies of CBA agreement have to send to various authorities including Govt Labor Department. Review of CBA agreement Review of CBA agreement made on annual basis and also renewed it according to law prescribed with the mutual consent of both parties. 15 . Which one is CBA There is only one union in PEL that’s why this is one collective bargaining agent. Labor Minister Office.

6. Provident fund: Company also provides provident fund facility to the managers. Mode: For Managerial Level (M1 to M6) In this range they can take the medical facility up to their 1. BENEFITS 1. The amount of provident fund is deducted from the salaries of the managers which is paid after the retirement. Mobile Bill Payment: Credit limit of different ranges allowed to managerial level personals and bill is paid by the company. Mess facility: Mess facility is provided to managers only and they pay 1500 per month for this facility. 5. Mobile Handsets: Mobile handsets are only provided to the managers. Bonus: 2 bonuses are provided on basic salary to every person per year on EID occasions. Medical facility: Medical facility is provided to the managerial employees but only for wife and children not for the whole family. For Executive Level (E1 to JE) In this range employees can take the medical facility up to their 2 basic salaries.Benefits of Working for Managerial Employees Following are some benefits provided by employer to managerial employees. 16 . 3.5 basic salaries. 2. 4.

Benefits of Working for Unionized Staff: Following are some benefits provided by employer unionized workers. (total 32 with prescribed distribution ) Distribution or arrangement is as under:  Sick leave. 17 . BENEFITS: 1. 11.  Paid leave.Especially highly facilitated to the employees of sales and marketing. Fuel for Auto Mobiles: Fuel facility is also provided to managers for their move . Overtime facility: Overtime facility is given to the employees. 10. (total 16 on half average pay)  Casual leave. 9. Leaves facility: Three types of leaves are provided to all the employees by the Company. EOBI: Employee Over Age Benefit Insurance provided to managerial workers in PEL.(total 10 with full average pay)  Annual leave (total 14 with full average pay) 8. Auto Mobiles: Cars are also given to Managers according to their designation and may be depends on negotiation.7. Lunch facility: There is a workers canteen in the Company where lunch is available in very cheap rates and they pay only 260 rupees per month for this facility.

7. 6. 9.  Paid leave. Group Life Insurance: Workers are insured in case of any injury or death. Break or Rest Time: In PEL there is ½ hour break available to workers in afternoon for rest and lunch. Labor’s Share of Income: In PEL there is 5% labor’s share of income in company’s profit in according to lines prescribed by LAW. EOBI (Employee Overage Benefit Insurance) This is also for the workers which benefits them when they become retired from company. Monthly rupees 70 deducts from their salary and deposited to Govt that has to be paid by Govt on the particular time.2. 4. 5. Canteen: Workers can get eatables and drinks from the canteen and also many other normal daily consuming goods are available at canteen for them. Food Cards: Food card is for the workers that enable them to get food items on credit basis later the bill amount will deduct from their salary. Bonus: 2 bonuses are provided on basic salary to every person per year on EIDs. 3. 10. Leaves facility: Three types of leaves are provided to all the employees by the Company. Advance Salary: Employees can get their salary in advance with a simple procedure in case of their need. This step facilitates them to cope easily with house hold needs. (total 32 with prescribed distribution ) Distribution or arrangement is as under: 18 . 8.

Package of Hajj: It has been settled that 3 workers have to send for HAJJ by PEL every year. Overtime facility: Overtime facility is provided to the workers in accordance with law they paid 2 hours wage for 1 hour labor work. 19 . 12.(total 10 with full average pay)  Annual leave (total 14 with full average pay) 11. Major Challenges Faced by HR Dept during Last year With Regard to Union: 1. Lunch Charges: It has been settled that workers will pay RS 260 as a per month charges for lunch prepared and provided by PEL. Compensation in Case of Worker’s Death: Dispute has been settled in case of worker’s death with the compensation of 30. (total 16 on half average pay)  Casual leave. Positive & Negative Demands by Union & to resolve the conflicts: Company’s high ups have been resolved some conflicts between union and company with consensus and mutual consent. 4. Medical facility: Medical facility is provided to the workers and they can get treatment from social security hospitals. 5. 2. Make a Plan for continues training of Labor Improvement: A plan has been made for continuous trainings of workers.000 RS. Sick leave. 3.

Timings: It is important that timings are to be followed by all the workers in the organization and rules and regulations are clearly expressed to all the workers. 2. Medical Test: It is a working condition to get a medical certificate before joining the job. 3.6. 20 . Intervals for Rest: No worker is allowed to take more time than prescribed ½ hour in this regard. Working Conditions: There are many conditions or restriction that are enforced by company in order to maintain the LAW and as well as the discipline of the organization. 1. Transport: It has not been settled yet and still in process to find out any solution in this regard. 6. 4. Uniform: Every worker in labor category has to follow the uniform code prescribed by PEL. 5. Adult Suffrage: To work in PEL the worker must be adult there is no concept of child labor in PEL and strictly followed by the organization. Leaves: No leave more than leaves prescribed by law (i.e paid 32 leaves) as per schedule shall be allowed by PEL and considered as an absent in fact violation of conditions prescribed.

exhaust and other types of fans and the structure and design of building is helpful in this regard. Smoking: Smoking is strictly prohibited in working areas in case of violation a serious action (fine or warning) can be taken against the person who is accused. Daily Hours: Every employee has to work for 8 hours daily as per law and company enforced it strictly as prescribed in rules. Double employment: There is restriction on double employment that no adult shall be allowed to work any other factory when he has already been working in PEL. Ventilation & Temperature: In PEL there is proper system of Temperature control and ventilation and through sealing. 9. Exemption: No employee shall be exempted from an order or duty as mentioned in notice displayed by company in union office or on main notice board. 10.7. 21 . 1. House Keeping section is responsible for this. Disposal of Wastes: House Keeping section is also responsible for disposal of wastes and effluents and this is properly maintained as per Law. 3. 2. Steps taken to Comply with Factories Act: Following are some steps taken by PEL in accordance with Factory act or meeting the specified standards of this Act. 8. Cleanliness: There is proper maintained cleanliness system in PEL. No lame excuse is acceptable.

5. 10. 9. Drinking Water: There is enough water coolers have been installed to full fill the need of workers in PEL. 7. Exclusion of Children: All the workers in PEL are within the age limit prescribed by Law . 8. Application of Factory Act: Following are some application of Factory Act by PEL. Latrine & Urinals: There is an adequate and maintained system in this regard. 22 . 6. Notice of Certain Accident: In case of any accident it has to be noticed to high ups within the limit of 24 hours and an immediate action has to be taken for the treatment of injured worker. Dust and Fume: There are proper arrangements to save the workers from dust and fumes with the help of exhaust fans and masks provided by company. there is no child labor work for PEL. Lighting: In PEL modern lighting arrangements are provided by the company for the workers to accomplish their works or tasks.4. Fire fighting equipments like extinguishers and sprinklers are available in case of emergency. Precautions in Case of Fire: In PEL there are adequate arrangements in case of fire emergency and also the direction boards or posters of emergency are fixed on visible areas of working area.

Weekly Holidays: There are 48 working hours per week for labors that is strictly followed by company. 23 . Intervals for Rest: In PEL there is ½ (half) hour of rest that is between 12:00 to 12:30 noon.Daily Hours: In PEL there are only 8 hours of working as per allowed by factories Act. Annual Holidays: There are 14 annual holidays allowed to workers as per Law. Compensatory Holidays: There are compensatory Holidays in PEL for those holidays which are announced by Punjab Govt. If any worker wants to do work on that particular day then the company is bound to give him/her a substitute Holiday with day pay. Weekly Holidays: There is one weekly holiday on SUNDAY in accordance with Law. Register for Adult Workers: In this modern era there is proper data base system in PEL that maintain the whole record of whole employees. Extra Pay for Over Time: In accordance to law workers paid 2 hours wage for 1 hour over time labor work. Festival Holidays: Any Festival Holiday announced by Punjab Govt is a Holiday with full day pay in PEL. Employee Welfare: In PEL this is related to ER department which is active in this regard.

Irfan Snr Executive ER PEL Cell no: 03004798355 24 .References: Mr.Salman Ch Manager HR Mr.Fraz Snr Executive HR PEL Cell no: 03004453653 Mr.

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