115629873 aiou hrm internship report shaheen paharmaceuticals pakistan

8/14/2019 115629873 AIOU HRM Internship Report Shaheen Paharmaceuticals pakistan

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INTERNSHIP REPORT

SHAHEEN PHARMACEUTICALS

Specialization: Human Resource Management

Su mitte! To: C"airman# $eptt% o&

'usiness

A!ministration

Su mitte! '(: )Name o& Stu!ent*

Roll No%

Registration No%

A!!ress

$EPARTMENT O+ 'USINESS A$MINISTRATIONALLAMA I,'AL OPEN UNI-ERSIT.#


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H/0# ISLAMA'A$


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AC1NO2LE$3EMENTS

All praises and thanks are for ALMI3HT. ALLAH who is entire source of

all knowledge and wisdom to mankind.Special praises for the HOL. PROPHET MUHAMMA$ )P%'%U%H* who

forever is touch of knowledge and goodness for humanity as a whole on the

successful completion of the project. I would like to acknowledge my deep sense of

gratitude and indebtedness to academic assistance of my best teacher Mr. Mujeeb

Alam , without his continued guidance and timely advice the completion of this

report would have been difficult. He has been a source of continuous encouragement

throughout the execution of my internship period.

ords cannot say the gratitude that we feel for our parents, friends and the

members of my family whose affection and prayers have always been the key to my

success.

I applaud the nice company of my best and true friends Mr. Sir Zamin Khan ,

Mr. Riaz and all the class fellows during the past few months of !"A studies. I will

always remember my association and affinities with all of them and treasure the

good days and happy moments spent with them.

#inally I am also very thankful to all members of S"a"een

P"armaceuticals# with out their guidance and help, it will be impossible for me to

complete my internship. I am thanking the management of S"a"een

P"armaceuticals for rewarding me such a great experience during my stay.

$hanks to all who helped me in completing my project.

I


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Table of Contents:

%&'() *A+(

A% -& (/+(!(-$ I

$A" ( %&-$(-$ II

IS$ $A" (S 0 I 1S$)A$I&-S I'

(2(%1$I'( S1!!A)3 '

4 O'5ECTI-ES O+ STU$.IN3 THE OR3ANI6ATION 4

7 INTRO$UCTION TO THE OR3ANI6ATION 7

8 O-ER-IE2 O+ THE OR3ANI6ATION 9

4.5 &)+A-I6A$I&-A S$)1%$1)( 7

9 OR3ANI6ATION STRUCTURE O+ HUMAN RESOURCE $EPARTMENT

; HUMAN RESOURCE MANA3EMENT PROCESSS IN OR3ANI6ATION 0

7.5 H1!A- )(S&1)%( * A--I-+ 0 #&)(%AS$I-+ 58

7.5.5 H)* *)&%(SS 55

7.5.9 #&)(%AS$I-+ H) )(:1I)(!(-$S 54

7.5.4 !($H&/S #&)(%AS$ H) -((/S 54

7.9 (!* &3((S )(%1)I$!(-$ 0 S( (%$I&- 57

7.9.5 S&1)%(S %A-/I/A$(S 5;

7.9.5.5 I-$()-A S&1)%(S 5;

7.9.5.9 (2$()-A S&1)%(S 5. *()#&)!A-%( !A-A+(!(-$ 99

7.>.5 *()#&)!A-%( S$A-/A)/S 0 (2*(%$A$I&- 94

7.>.9 H& *()#&)!A-%( )(*&)$S A)( )I$$(- 94

7.7 (!* &3((S %&!*(-SA$I&- 0 "(-(#I$S 97

7.7.5 $3*(S %&!*(-SA$I&- 0 "(-(#I$S 9?

7.? &)+A-I6A$I&-A %A))() !A-A+(!(-$ 9=

7.?.5 (!* &3(( @&" %HA-+(S 48

7.; @&" %HA-+(S I$HI- &)+A-I6A$I&- 45

7.;.5 *)&!&$I&-S 49

II


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7.;.9 $)A-S#()S 49

7.;.4 /(!&$I&-S 44

7.;.> S(*A)A$I&- 4>

7.;.>.5 A3# 47

7.;.>.9 $()!I-A$I&- 4?7.;.>.4 )(SI+-A$I&- 4;

7.;.>.> )($I)(!(-$ 4 SALAR. RECOR$

A/4? EMPLO.EE SALAR. SLIP

A/44 EMPLO.EES PRO-I$ENT +UN$ RECOR$

A/47 RECRUITMENT > APPOINTMENT PROCESS

III


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LIST O+ +I3URES > ILLUSTRATION

+I3URES

#igure 5 Structure of H) /epartment ?

#igure 9 Shaheen traditional style of management =

#igure 4 Shaheen modern projecti ed style of management =

#igure > Human )esource *lanning *rocess 55

#igure 7 #orecasting $echniBues 54

#igure ? (stimating internal labor supply 5>

#igure ; Sources of )ecruitment 57

#igure < Stages of )ecruitment 5?

#igure = Sources of %andidates 5;#igure 58 *erformance !anagement %ycle 99

#igure 55 (mployees %ategories 97

#igure 59 %omposition of Salary 9;

TA'LES

$able 5 $able showing current and needed staff level 59

E@ECUTI-E SUMMAR. I'


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Irrespective of the si e or objectives of an organisation, the most valuable

resource it possesses is its workforce. ithout workers who are both

efficient and effective, the longCterm success of an organisation cannot be

assured. $he human resource of an organisation is its entire workforce D

from managing director to partCtime cleaner. (ach person is employed to

perform specified functions which play their part in the overall success or

failure of an organisation.

It is the human resources employed by an organisation which generate wealth

through the provision of services or the production of goods. %onseBuently,

just as machinery and buildings need to be protected if they are to work

properly, time and care must be taken if an organisation is to secure andretain the human resources that it reBuires. It is the responsibility of the

Human )esource /epartment to devise and implement the organisationEs

policies and strategies for managing its human resources in a way that will

satisfy both the objectives of the organisation and the objectives of the

human resources it employs.

$his report contains valuable 0 important information regarding H)

practices which I observed and documented in the form of this report.

Shaheen is one of the reputed pharmaceutical present in *akistan. H)

/epartment of Shaheen is not as per that of the other reputed

pharmaceut icals. Several flaws in the H) *ractices in Shaheen are identified

and recommendations are made which are present at the end of this report.

H) in Shaheen is responsible for several activities which can be enhanced to

other areas. #inally it is found that Shaheen can best utilise its H) function

and ripe the fruits of benefits both in short term and in long terms.

Important 2or!: orkforce, #unction, H)!, *roduction, *harmaceuticals,

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O'5ECTI-ES O+ STU$.IN3 THE OR3ANI6ATION

$o study 0 review the function 0 structure of H) /epartment of

S"a"een P"armaceuticals%

Analysis of S"a"een P"armaceuticalBs mission, vision, strategy and

goals and diverse functions of H) department.

$o look into the special assignments carried out by H) team

like

preparation of the generic job descriptions for all field positions

and conducting $-A research program to detect gaps in S:

F nowledge, Skill and *ersonal :ualitiesG of employees.

An exclusive probe into $raining -eeds Assessment strategy of H)

/epartment of S"a"een P"armaceuticals%

$o find out the Strength, eaknesses, &pportunities and $hreats

F SWOT G ofS"a"een P"armaceuticals .

Analysis of H) /epartment policies.

$o put suggestions 0 recommendations to further improve the

activities of H) /epartment of S"a"een P"armaceuticals .

And finally to prepare an internship report in the light of observation I

found and recommendation I forwarded to the management of Shaheen

*harmaceuticals.

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%ardiovascular products

Iron supplement products

#oliate supplement products

AntiCinflammatory , Analgesics and Antipyretic productsH9 )eceptor antagonist

Hepatic protective products.

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8 O-ER-IE2 O+ THE OR3ANI6ATION

Shaheen *harmaceuticals is one the famous and reputed

pharmaceut icals with more than 478 employees belong from different

regions. Shaheen *harmaceuticals has achieved the distinction of being the

first organi ation in the S A$ 'alley, which achieved IS& =885 9888

:uality !anagement %ertification from one of the famous and recogni ed

organi ation II% which have a registered head office in /ubai, 1.A.(. and

approved from @oint Accreditation System of AustraliaC-ew 6ealand F@ASC

A-6G in 988;. Shaheen in recent years initiated implementation of the H)

reforms in a structured manner. Shaheen *harmaceuticals has successfully

launched its H) development process at the beginning which was aligned to

the new organi ation knowledge, skill and competencies needs.Shaheen *harmaceuticals have a traditional management style i.e.

functional departments are present to perform various organi ation activities.

A list of these functional departments is shown in organogram.

LOCATIONS O+ O++ICES

Shaheen *harmaceutical marketing office is present in *eshawar while

!anufacturing *lant is present in Swat. $he addresses of these offices are as below

+actor( > Hea! o&&ice: Shaheen *harmaceuticals 4C m, !urgh ar )oad , Saidu Sharif

Swat , -. .#.* *akistan

Mar eting o&&ices: Shaheen *harmaceuticals 4C"ashir ane , #akhrC(CAlam )oad ,

*eshawar , -. .#.* *akistan

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8%4 OR3ANI6ATIONAL STRUCTURE

)eproduces with the permission from the management of Shaheen *harmaceuticals

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9 STRUCTURE O+ THE HUMAN RESOURCE $EPARTMENT

Shaheen *harmaceuticals follows bureaucratic style for their H)

/epartment activities i.e. all major activities are concentrated to one position

which means that only one person is holding major activities of H)

/epartment. $he H) department of Shaheen *harmaceuticals are composed

of 4 main segments. $hey are

Emplo(ee serDices

(mployees Services

Staffing 0

%ompensation

&/ 0 (ffectiveness

Shaheen H) %ore

%ompetency

#igure 5

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o *ayroll Information

o eave and !edical )ecord

o #inal Settlements

o *olicies and *rocedures

o (mployees )ecord and )ecreation

O$ an! E&&ectiDeness

o $raining plan

o $alent !anagement

o *erformance !anagement

o (mployees )etentation

o &rientation 0 (mployee %ommunication

Sta&&ing an! Compensation

o Staffing *lan and H) "udgeting

o !anagement $rainee and Internship *rogram

o Interviewing and Selection

o %ompensation, "enefits and Incentive

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; HUMAN RESOURCE PROCESS IN THE OR3ANI6ATION

Shaheen is basically a functional organi ation with functional

departments covering #inance, *roduction, )0/, :uality %ontrol 0 :uality

Assurance, and !arketing 0 /istribution. Having more than 98 3ears

experience in the field of !arketing 0 /istribution, Shaheen was formed by

the founder 0 present %(& /r. Syed ar im in 988>C87 as a fourth

pharmaceut ical in S A$ valley. !r . )ashid which has an experience of 57

years was appointed as consultant and head of H) /epartment. At the

beginning the management of Shaheen uses traditional techniBues such as

interviews to select candidates for various jobs. -ow the traditional way of

appointing the employees are changed and some of modern techniBues such

as filling a short Buestionnaire along with interviews are used to select thecandidates.

Shaheen makes a great change in their working style and nowadays

Shaheen is converting itself into more projecti ed style than traditional

hierarchy style but the management of Shaheen still uses the old tradition of

interviewing.


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$op !anagement$op !anagement

#unctional /epartment5

#unctional /epartment5

#unctional /epartment 5#unctional /epartment 5 #unctional /epartment 5#unctional /epartment 5

#igure 9

*roject 9*roject 9

*roject 4*roject 4

*roject 5*roject 5

$op!anagement

$op!anagement

Shaheen $raditional Style of !anagement

Shaheen !odern *rojecti ed Style of !anagement

#igure 4


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;%4 HUMAN RESOURCE PLANNIN3 > +ORCASTIN3

*lanning 0 #orecasting in the modern age is a matter of life 0 death

for organi ations of modern age. $he same is true for pharmaceuticals

industry. (ach 0 every consecutive day new research product is developed,

deployed for trails 0 testing. All these effort reBuire skilful, trained and

experienced workforce. It is for this reason organi ation plan and forecast for

human resource so as to remain competitive.

$he management of Shaheen *harmaceuticals also uses planning 0

forecasting procedures to cope with human resource reBuirement but these

*roject 9*roject 9 *roject 4*roject 4

*roject 5*roject 5

$op

!anagement

$op!anagement

=


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planning are usually of short term. As a result when the management of

Shaheen open there iBuid Section, they faces a serious shortage of skillfull,

trained 0 experienced workforce. Although the management strongly

believes that employees are there supreme strength. "ut they are not

adeBuately planning to anticipate the future need.

7.5.5 HUMAN RESOURCE PLANNIN3 PROCESS

$he H) *lanning *rocess of Shaheen is shown in the following #igure. 58


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Shaheen H) *lanning are usually of short time in nature usually of > to ?

months. "ecause of shortage of skill workers and because of the presence of

pharmaceutical industries in the S A$ 'alley, the competition is very high so theH) /epartment of Shaheen continuously looking for skill workers. #or this purpose

Shaheen scan internal environment to find out suitable employee and promote to fill

the vacancy, if there are no such employees available, then H) /epartment scan

external environment for skilled and experienced employees. As a result it is found

the H) /epartment minimally interviewed 9 D 4 candidates daily, most of these

interviewed candidates are called 4 to > months later of which almost ?8 C ;8 get

jobs else where and only 48 C >8 available. &nce the internal environment along

with external environment is scanned, a draft forecast is prepared. $here are no

forms for this purpose Shaheen uses, instead Shaheen only colleted %'s and

credentials for future need with H) comments written on it.

Shaheen uses surveys to find out the present employees, their strength and

experience and then find out the no of reBuired employees in near future. $his gives

S"a"een O ectiDes > Strategies

+orecasting

S"a"een HR Plans

Internal (nvironmentScanning

(xternal (nvironmentScanning

Survey &f (mployeesAvailable

Survey &f (mployees -eeded

#igure >

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the organi ation the ability to cope with future need of employees. "ut the same is

not true for high level employees such as *harmacists, %hemists, Analysts, &fficers

0 !anagers. Shaheen does not have a valid planning for higher level officers. As a

result there is always a shortage of skilled, technical 0 experienced top level officers

as indicated by the following table.

-o. )anks Available )eBuired

4 Managers ?= 4?

7 C"emist ?4 ?8

8 P"armacists ?8 ?=

9 2are House O&&icers ?7 ?8; Accounts Sections ?8 ?;

3o!oFn Sta&& ?8 ?;

= InDentor( Control ?7 ?

0 Pro!uction O&&icers ?7 ?0

< Anal(sts ?7 ?=

Total O&&icers 7; ;9

;%4%7 +ORECASTIN3 HUMAN RESOURCE PLANNIN3 PROCESS

Shaheen uses the information which was gathered from external

environmental scanning and assessment of internal strengths and weaknesses

is used to forecast H) supply and demand in light of there objectives and

strategies. #orecasting in Shaheen contains information from the past and

present to identify expected future conditions. "ecause of the rapid changes

in the political, economical 0 global changes, Shaheen mainly emphasi e on

short term forecasting usually of > to ? months durations.

$able 5

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/espite the availability of vary sophisticated techniBues, forecasting

in Shaheen is still subjective judgment. $he facts are some times evaluated

and weighed by knowledgeable individuals, such as managers and H)

experts, and some times not.

;%4%8 METHO$S O+ +ORECASTIN3 HUMAN RESOURCE NEE$S

H) at Shaheen uses 9 method when forecast the human resource need using

judgmental methods and mathematical methods. Although Shaheen uses these two

types of model, the management still do not know the model and the difference

between them.

In @udgmental $echniBues, Shaheen uses (stimates which are both topCdown

and bottomCup, but mainly the H) 0 !anagement teams combinely interviewed the

top level employees who are in a position to know that How many people will they

need next year to cop with employees shortage and to increase productivity. After

obtaining responses, the H) prepare forecast sheet and submit it to chief executive

for approval.

hile In !athematical methods, extensively used for lower level worker,

Shaheen uses *roductivity ratios which calculate the average number of units

produced per employee. $hese averages are then applied to forecasts to determine

the number of employees needed. #or example when Shaheen launches new product

F*reston $ablets, -ormidol Suspension 0 &lox $ablets in April 988=G the

Shaheen #orecasting $echniBues

@udgmental $echniBues !athematical

#igure7

(stimates *roductivity )atios

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management decide to hire new employees to increase the production level from

4 to 57888 packs with ?9 packing

staff per day. $o reach this objective Shaheen hire fresh 9; packing section

employees through referral, interview and other methods.

;%7 EMPLO.EES RECRUITMENT > SELECTION

#igure ?

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&nce the forecast is developed and approved from the top management, the

H) department of Shaheen start )ecruitment 0 Selection process to fill the

vacancies.

ike all good plans, H) !anager of Shaheen builds employment plans on premises. "asic assumptions for employment reBuirement by forecasting contain

three important things

$he supply of inside candidatesJ

*ersonnel needsJ

$he supply of outside candidates according to their company reBuirements.

InternalSources

(xternal)ecruitment

Sources of)ecruitment

#igure ;

57


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"y the utili ation of their resources, firstly it is checked that either there is any job

placement or company is expending their business so that new jobs are open for new

candidates. $hese issues are tackled by the H) !anger. If staff is reBuired then

company tries to find them inside the company by upgrading their employees if it not

possible then new jobs are created and fill by the outside market.

$he overall aims of the recruitment and selection process in Shaheen are to obtain, at

minimum cost, the number and Buality of employees reBuired to satisfy the needs of

staff reBuirement. $he three stages of recruitment and selection in Shaheen are

$e&ining reGuirements: *reparing job descriptions and

specificationsJ deciding terms and conditions of employmentJ

Attracting can!i!ates: )eviewing and evaluating alternative sources

of applicants, inside and outside the company, advertisingJ

Selecting can!i!ates: Sifting applications, interviewing, testing,

assessing candidates, offering employment, obtaining referencesJ

preparing contracts of employment.

Stages of )ecruitment

/efining )eBuirements Attracting %andidates Selecting %andidates

#igure


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;%7%4%7 E@TERNAL SOURCES

If there are no people available within the organi ation the other sources of

candidates, are used for recruitment such as internal or external referral 0

advertising etc.

In external sources, the H) department uses internal and external referrals i.e.

when job is posted then existing employees recommend some employees for the job

or !anagers of other pharmaceuticals recommend some candidates for the job. H)

gives first priority to internal referral and then external one. if the H) /epartment

still not find out the potential candidate, then Shaheen advertise the job opening in

local news paper.

Almost more than ;8 of employees both workers, technical staff andmanagers are appointed through external or internal referrals.

Initially every officer rank employees are appointed for a probation period of

4 to ? months as trainee. After successful completion of training a permanent job is

offered to the trainee.

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7.4 TRAININ3 > $E-ELOPMENT

$raining is one of the most important tool any organi ation using to

cope with the rapid change in technology and way of doing business. H)department of Shaheen is responsible for the training and /evelopment of

existing as well as new coming employees.

$he difference between the training of new and existing employees

are orientation and Shaheen culture.

hen a new employee is selected, an orientation of the new

employees is conducted. *roduction !anager is responsible for the

orientation of new employees. &rientation is basically a one to two hour

activity in which the new employees are informed about the organi ational

structure, term 0 conditions of employment, the duties of incumbent, the

ethical 0 behavioural reBuirement for the new employee and the so. $his

activity is only design for the officers and managers. orkers 0 employees

of lower level are exempted from orientation. As a result most problems are

observed at this level during dayCtoCday transaction.

-ew or (xisting employees are trained in H) /epartment via three

methods. (mployees Handbook

$raining by concerned department !anager.

$raining to visit to other pharmaceuticals.

$he period of training is not specified, some times it covered in a

week some times it is extended upto ? months.

;%8%4 TRAININ3 NEE$ ASSESSMENT

$here is no document for training need assessment in H) department,however a document is found in IS& !aster #ile :!SK89K885 along with severalforms.

5 E@PECTATION

Although Shaheen is a well reputed pharmaceutical organi ation, what

target the employees must achieve is totally the matter of perception.

/ifferent standards are set for different employees. i.e. if two employees

which perform same task in which one are highly experience and skilled and

other have relative lower experience than the management expect a high

Buantified target achievement for the experienced one than from other.

It is because of this reason, an atmosphere of conflict found in some

section of Shaheen *harmaceuticals. !anagement still not do sufficient

planning to overcome these differences in targets and for the smoothing of

organi ational environment.

$he production department are usually engage in performancestandard setting and reviews of activities to find out that these standards are

met during normal course of operation. However if the standard are not met

there are no mechanism how to remove inefficiency. $hus some one can say

that performance standards are not a matter of seriousness in Shaheen. It was

also found that some employees are also reluctant to these standards because

no reward are attach to these standards. /uring my internship, several times

the product staff achieves the target but they are not appreciated well.

;%9%7 HO2 PER+ORMANCE REPORTS ARE 2RITTEN

*erformance reports are the responsibility of all managers of the concern

department. However these reports must be submitted to H) /epartment. A major

drawback is that these report are not considered when pay raise is recommended by

the manager of various department, as a result every employee get 58 annual

increase in their pay regardless of their performance. $his creates a lack of

seriousness about the performance report preparation. (very department uses their

own performance sheet. A typical performance report of Shaheen contains

information as

-ame of employee

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/esignation of (mployee

-ame of performance evaluator

/epartment

/ate 0 $ime

*erformance Standard FArranged according to their priorityG

)emarks

Signature of Supervisor

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;%; EMPLO.ESS COMPENSATION > 'ENE+ITS

Shaheen *harmaceuticals currently highly compensating there

employees with respect to other industries present in Swat valley, however

among the lowest compensation payable organi ation in the industry in

*akistan. "ecause of very low number of pharmaceuticals in Swat valley and

absence of many taxes in Swat valley, Shaheen is one of the most profitable

pharmaceut ical in *akistan, but these benefits are not transferred to their

employees as a result the employees turnover is very high.

Shaheen have a different pay structure for different level of employees

and also employees of same level. i.e. Head of two departments are paid two

different type of compensation.

H) department is responsible for pay and pay related issues. It wasalso found that salary determination in Shaheen is a matter of bargaining. i.e.

Shaheen pay 7788 * ) to an analyst while at the same time pay 57888 to

other analyst working in a same post.

Shaheen creates 9 categories for their employees. (xempt 0 -onC

(xempt. Shaheen pay overtime to its nonCexempt employees who work in

excess of < hour and are one 0 half times there base pay. Almost all officers,

managers, directors 0 executives are exempt from overtime allowance.

$here is no shift premium and night allowance for workers. $he pay structure

changes in Shaheen with that of based on seniority and not on performance.

Although Shaheen is considered as one of the most profitable

organi ation in pharmaceutical sector, it does not distribute some portion of

(mployees%ategories

(xempt (mployees -onC(xempt

(mployees

#igure 55

97


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35/59

"asicSalary

%ost ofiving

Allowance &vertime

AttendanceAllowance

IndexationAllowance

%omposition of Salary

#igure 59


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Shaheen pay a higher wage to his high level employees. $he

composition of the salary given to these employees consists of

+ross Salary

"asic Salary

House )ent

$ransportation Allowance F usually between 488 to 788 * )G

%ost of iving Allowance

Special Allowances

'ocational *ay

$e!uctions

oan Instalments

*rovident #und

(mployees &ld Age "enefit InstitutionM.. (.&.".I.

'ene&its

$he following benefits are being paid.

(&"I CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC 7 of wages

Advance against salaryCCCCCCCCCCCCC up to one third of salary F#or all

employeesG

!edical allowance CCCCCCCCCCCCCCCCC > of Salary F&nly for !anagersG

Accommo!ation

&nly for those employees living outside Swat 'alley.

Loans

$he employee is given loans as per the loan policy mentioned in the Service

)ules. $he employees submit their application for loan approval to H) department

after the approval of the !anaging /irector the loan is granted to the applicant.

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;% OR3ANI6ATIONAL CAREER MANA3EMENT

Shaheen *harmaceuticals have one of the best career management system.

$he company consistently monitors its employees and as far as the betterment of

their career is concern, the company has a proper strategic plan through which it

increases the skill level of its employees. $he company offers workshops, seminars,

visit of key employees to other pharmaceutical industries 0 training courses which

focus on injecting skills and professionalism into employees. $hese courses held in

the organi ation or outside organi ation as per the course reBuirements. )egardless

of the location of these training programs, the company pays all the expenses. $he

only focus of these programs are to improve the skills of their employees so that not

only company can get maximum out of them but also employees can enrich their

nature of job and life standard as well.

Along with these training programs, the company makes their employees

fully aware of their job reBuirements by mean of job descriptions so that they can

develop a clear picture about at what are necessary reBuirement of their job and wantare not. Indirectly the promotions, transfer to other department also plays a key role

in employeesE job satisfaction .

Shaheen also have a career planning center and the interested employees can

seek help anytime between < 88 A! to > 88 *! from !onday to #riday. $his center

help employees to get updated information about their job, current trend in the job an

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employee performing, reBuired knowledge to enhance the productivity of employees.

If an employee wants to change their job position, the career planning center helps

the employees to do so. If any employees want to join any outside institution for

further education, Shaheen *harmaceuticals allow them. As a result some of Shaheen

*harmaceuticals employees are the students of various educational institutions e.g.

!alakand 1niversity, 1dhiana !edical Institute, Abbott %ollege and 'irtual

1niversity. (ducational *olicy of Shaheen *harmaceuticals is flexible while that of

its competitors present in SFat region is tough. $hus as far as the career

development is concern, the H) /epartment of Shaheen is fully aware of this issue.

;% %4 EMPLO.EES 5O' CHAN3ES

(mployeeEs job changes in Shaheen *harmaceuticals are a matter of

routine task. hen any job is lying vacant or some new post is created

because of expansion or addition of new department, Shaheen first priority is

to select employees from the current pool. #or this purpose Shaheen

announce the vacancy internally and invite the current employees to submit

their %'s along with reBuired documents and then select the right candidate

for the post. If right candidate are not available to fill out the vacancy then

Shaheen search for candidates who have the reBuired competency and are

willingly to fill the post but not have proper knowledge andKor skill reBuired

for the post, then Shaheen arrange an up gradation program which best suit

the employee reBuirement for the new post. As a result the employeeEs

response for the new position is always higher than expected. -ormally

every employee changes their job every 4 to > years. As a result of these

changes, :A &fficer changes their job to Inventory %ontrol !anager,

*roduction !anager changes his job to *lant !anager and )aw !aterial

Store Incharge promoted to arehouse Incharge.

Shaheen also arrange outside assistance and training program for their

employees. As a result some of employees are send to various organi ation

9=


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In the light of interview conducted and the recommendation and -&%

of the current head of employee department makes an initial recommendation

to higher management F%hief (xecutive, +eneral !anagerG. After approval

from the top management the employee, previous and new manager of the

employee are informed through intercommunication form and a new @ob

/escription #orm were granted to the employee. It was observed during my

stay that new appointment letter were not given to the employees and it was

assumed that the terms 0 %ondition of the employment was same as before.

$he employees know his salary rise only when he receives his pay cheBue.

;%=%4 PROMOTIONS

In case of promotion, the head of department inform the H) !anager

through intercommunication form about the performance of an employee.

After receiving such information, the H) department recommend the

employee for possible promotion within department to top management. $he

top management decide in the light of recommendation from the head of

department 0 H) department to promote or not the employee. $he decisions

of the top management were mostly verbally, and the H) department in the

view of decision makes necessary documentation. *romotion policy of

Shaheen *harmaceutical is not clear. $he employees do not know when they

were be promoted. It a matter of top management decision. As a result of

this, some employee promoted very early like after ? to ; month of

employment while some are still waiting for promotion after 7 years of

employment. "ecause of no policy about the promotion mostly employees

are demotivated and thinks what ever they do they are still under the dark

side of the candle. *roductivity records also show that the outputs of senior

are lower than that of new comers and that of who promoted earlier.

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:% &fficer was promoted to Senior :% &fficer. #+S Assistant was

promoted to #+S Incharge and /ispensing *harmacist was promoted to

/ispensing Area Incharge.

;%=%7 TRANS+ER

$ransfer policy of Shaheen is clear and also mention in employee hand book,

job description 0 in appointment letter. Shaheen transfer policy stated that

when ever services of an employee are reBuired in some other department

andKor any section within the f irm, the employee must assume the

responsibility without any hesitation and any reasons. $he appointment letter

contain these phrase

T"e emplo(ee s"oul! assume an( responsi ilit( assigne! ( concerne!

manager or an( aut"orize! person !esignate! ( top management% He

s"oul! also assume an( tas F"oll( or partiall( eit"er permanentl( or

temporaril( as per HR $epartment instruction Fit"out an( "esitation %

As a result of this job transfer within department is a matter of daily activity.

%oating &perator of coating section work with packing department and

blister section staff are transfer to syrup section. $hus we can say transfer is

a routine act ivity in ShaheenEs l ife. Some transfers in Shaheen are

temporarily one while some are permanent in nature. $op management

decided whom to promote permanently and whom not. (mployee some times

also takes part in transfer process and willingly apply for transfer because

the transfer gives them fresh life in the form of new knowledge and skill.

$his type of transfer is voluntarily one. hile in involuntarily one top

management decided which one is t ransfer and which one not . $he

employees may apply to review the management decision of involuntarily

transfer but the final decision is in the hand of top management.

;%=%8 $EMOTIONS

%urrently there is no demotion occur in Shaheen *harmaceuticals to date.

IS& master documents show that when the employees does not show

44

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satisfactory performance within 5 year period Fin which the employee is

unable the minimum acceptable level of productivity for last 4 months

continuouslyG and does not improve his performance after the recommended

training from the concerned department manager, makes continuously same

mistakes, does not oblige the order of department manager, supervisor and

any other senior and after informally verbal, formal written and a formal

show cause notice, does not satisfy the concern officials in show cause case

hearings, theft, damage to company property, engage in any other activity

other that assigned one and the same and leaking company critical or non

critical information to outsiders include relatives, friend and competitors of

the firm are subject to demotion, penalty eBuivalent to damage, withholding

salary, and termination from the employment with or without notice. Shaheenis lucky in the sense that during the 7 years of his journey, no employees yet

receive demotion from his current job.

;%=%9 SEPERATION

&ne of the worst decisions an employer or employee made is the decision of

separation from the firm. $he employee leaves the job because of various reasons

such as

#inding better job

ess attractive current job

-o career growth in current job andKor current organi ation

1nexpected new complex 0 lengthy assignment in the job

"ad employment condition in current job

1nacceptable supervisors, managers behaviors. IneBuality in pay

hile the employer remove an employee also have one of several reasons such as

%ontinuous low performance of an employee


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%utting unnecessary overheads.

Increase profit by reducing cost through cutting employees strength.

Hire low wage workers by removing high paid workers.

ayoff union workers because of strikes, lockout etc

/ue to inflationary or recession conditions

ayoff old workers because of less or no knowledge of advance

technology.

(mployee who leak out critical firm information to outsiders.

(mployees who damage company property. %ontinuous absence from the job

1nfortunately in Shaheen this decision were made freBuently in the last 9C4

years. About 9K4 of Shaheen employees have joined Shaheen within 9C4 years only

one third are employees which are from the start with the company.

&f the 9K4, more than 78 of employees were terminated one of several

reasons such as

1nacceptable behavior with that of supervisor andKor manager

/amage to #irms property

/oes not obey !anagement orders

Smoking and engage in activities prohibited by the management

eak information to outsiders.

$oo many unauthori ed leaves

;%=%9%4 LA.O++

ayoffs occur when employees are put on unpaid leaves of absence for time

period longer than approved one.

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Shaheen have a clear policy in this regard. A complete section on leaves is

present in the employment manual. #or employment period of more than > year 98

vocational leaves are approved along with 59 sick leaves and 58 other leave, a total

of >9 days. $hese leaves are available to all employees but 98 vocational leaves are

earned only after completed > years of service in the firm. hile remaining leaves

can be availed any time. All these informationEs are present in Section 58 page 9< of

employment handbook.

Shaheen have a strict policy on leaves. If an employee makes extra leaves

without prior approval, a written show cause is issued to him within ; days. If the

employee does not provide reasonable reason to H) department, then he has a

danger of layoff. &nly ; times this option is used.

(mployees can collect their vocational leaves upto 78 and then if he wants toavail these leaves he can. If he does not want to avail the leaves then he may apply

for pay eBuivalent to normal rate.

If employee does not respond to the show cause within 4 days of receiving,

another show cause is issued and if he still not respond within 4 days of receiving, a

layoff letter is send to him and thus in this way the employee is terminated.

(mployees can also apply for unpaid leave in case of emergency such as

medical leave, maternity leave, educational leave etc. but prior permission from H)

department is necessary.

;%=%9%7 TERMINATION

1nfortunately termination decision in Shaheen was made freBuently in the

last 9C4 years. About 9K4 of Shaheen employees have joined Shaheen within 9C4

years only one third are employees which are from the start with the company.

&f the 9K4, more than 78 of employees were terminated one of several reasons suchas

1nacceptable behavior

/amage to #irms property

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/oes not obey !anagement orders

Smoking and engage in activities prohibited by the management

eak information to outsiders.

$here is various rank employees terminated due to above causes. Senior

pharmacists, production supervisors, packing hall Incharge, manufacturing area staff

and warehouse personals are the freBuent victim of this decision. As a result the

motivational level of these employees also found lower than other areas employees

least affected by termination decision. Although the termination remove problem

employee, it was found that these employees can be made loyal with little effort and

some training.

;%=%9%8 RESI3NATION

)esignation in Shaheen is another big reason for brain drainage of valuable

talent. Shaheen spend valuable and its precious time to reward a good experience but

because of the weakness of the system, when the employee get some knowledge he

resign from his post and join new firm. $he major causes behind this situation were

found as under.

ess opportunity for career growth due to less room for innovation

and creativity because of standardi ed rules and procedures.

ower salary

1nsatisfactory work conditions.

1nacceptable term and conditions.

$ight supervisory control

ack of trust

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-o benefits for most of employees.

Shaheen does not so far make some sound homework to reduce this trend. As

a result this situation persists. "ecause of beurucratic style of management,

opportunities for others becomes lower 0 lower down the hierarchy.

$he post leave after resignation was not filled immediately. 1sually 4 to >

months are reBuired to fill the posts. It was also observed that resignation letter was

given by employees to the management immediately without waiting period of 5

month. "ecause there is no benefit for employees thus resignation was given

immediately. Another trend was observed that mostly resignation application was

given 9 nd date of new month when employee get there previous month complete

salary thus the management have nothing to hold and forces the employee not toresign. )esignation is one of the worst ways which not only effect some department

badly but some times the firm faces dangerous situation.

;%=%9%9 RETIREMENT

Shaheen is a relatively new firm and no one individual till date are retired.

"ut employment handbook Fsection 95 page ?


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LA'OUR MANA3EMENT RELATIONS

abourC!anagement relation in Shaheen is not an ideal one. $he employees

are just satisfied the management style. $hus we can say that the organi ation keeps

normal relations with its employees. $here are twoCway communications methods in

Shaheen. Several features of aborC!anagement relations are

(very employee has the right to come to meet his immediate supervisor

for his problem . If his supervisor cannot satisfy the employee, then

employee can go to H) department for this problem.

N$here are placed the O%omplaint "oxP at different location in the

organi ation that are only opened by the H) !anager randomly.

Some /epartment held meeting on monthly basis in which head of /eptand first line supervisor meet to employee and discuss about the previous

performance of /ept 0 individual performance. At the end the decisions

are made to enhance the individual performance by facilitating the

employees.

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N N$he company treats all employees with respect and dignity, no employee

is subjected to any gesture, language and physical contact that are

sexually coercive, threatening, abusive or exploitative.

Dis i!line P"o e#$"e:

arning are addressed to the employees verbally and in written through

their immediate supervisor. $he warning referred to the contraventions

committed by the employee and served to remind the employees the

heKshe abide by the company rules and regulations in performing hisKher

work, and that this contravention should not be repeated in future.

A written letter addresses to the employee describing the contravention

committed. $he employee is also notified that a higher penalty may be

inflicted on him in the contravention is repeated in future. $he warning

letter is then registered in the employeeEs personal file. Issuance of

written warning can be recommended by the respective supervisor and

Head of /epartment. It will be issued by the H) department after

approval of %hief (xecutive &fficer.

/eduction from the salary will be an amount of employee salary

depending on the type offence and decision taken accordingly. $he employee may be suspended from performing his or her duties for a

period of time as conveyed in written.

1nauthori ed absence of more then two times in Six month can result in

termination of employment. An employee who is absent from the job with out satisfactory explanation

and necessary proof is considered to be an unauthori ed unpaid absence.

/iscrimination, intimidation and harassment based on sex, race, religion,

age, colour, disability, sexual orientation and cultural background is

prohibited at the workplace.

4=


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= S2OT ANAL.SIS )STREN3TH# 2EA1NESS# OPPORTUNITIES >

THREATS +OCUSIN3 ON THE HRM PROCESS

IN THE OR3ANI6ATION

STREN3TH

>8


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i. &ne of the largest pharmaceutical organi ation.

ii. Higher wage payer employer in the region.

iii. #reBuent availability of lower wage employees.

iv. !ore loyal senior employees.

v. :ualified staff in H) /epartment.

vi. )educes cost by merging some departments, especially merger of

Administration /epartment into H) /epartment.

vii. 1se of H) #orecasting techniBues

viii. *erform @ob Analysis freBuently.

ix. Higher motivational level of key employees due to @ob rotation 0 %areer

!anagement programs.

x. 1se of different sources for recruiting 0 selection of right candidates.

2EA1NESS >5


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i. ower wage level as compared to other pharmaceutical present at other

locations.

ii. Availability of less skilled and less experienced workers.

iii. High employees turnover ratio.

iv. Serious shortage of necessary full time staff in H) /epartment.

v. /ual responsibility of various managers due to merger of various

departments.

vi. Short term H) #orecasting usually 4 to ? months duration.

vii. H) #orecasting are mostly conducted for lower level workers.

viii. Some @ob descriptions were found outCofCdate.

ix. @ob /escription are only covering offers and managerial ranking employees.

x. %areer growth opportunities are only available to selected employees.

xi. -o referral reward system for employees who recommend competent

employees.

xii. &utCofCdated interviewing techniBues.

OPPORTUNITIES

i. (nough room for the implementation of new H) policies 0 *rocedures. >9


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ii. Shaheen can hire best employees for their H) /epartment.

iii. Shaheen can expand their H) /epartment.

iv. 1se the skill 0 competence of H) !anager Head to improve H) department

performance by giving him full and unconditional authority.

v. -umber of graduates in the region is increasing, Shaheen may hire these

graduate to increase the performance of H) System.

THREATS

i. Imposition of new rules and regulation by the government.

ii. (ntrance of new companies in pharmaceutical industry.

iii. Switching of employees from Shaheen to other companies who pay more than

that offered by Shaheen.

iv. Serious shortage of skilled and Bualified workers in near future.

0 MAIN 2EA1NESS O+ THE OR3ANI6ATION

/uring my stay, I have found following main weaknesses which I discussed with

H) !anager.

>4


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a. Serious shortage of employees almost in all departments and sections.

b. Shaheen purchases latest machines and eBuipments but till date did not find

technical and skilled employees to start few of those machines.

c. In Shaheen, interviews are conducted on daily basis for lower levelemployees but only a small percentage of these were offered the job.

d. $here are no formal training programs for new incumbent.

e. Strict beurucratic style of management.

f. High turnover ratio than competitors.

g. Short term planning for human resource.

h. ack of formal forms 0 formats specially interview evaluation form etc.

i. #orecasting of human resource need is based on subjective judgment.

j. -o referral bonus for employees who recommended competent 0 skilled

candidates for a job.

k. &rientation 0 training period of new incumbent are very short and new

employee has to learn every thing from his mistakes.

l. -o training need assessment form developed yet.

m. /ifferent standard are set for different employees working same type jobs.

n. *erformance reports have no effect on annual salary increase.

o. %ompensation 0 "enefits are lower in Shaheen as compared to other national

0 multinational pharmaceutical organi ations.

p. /ifferent pay structure for different employees working same job.

B. *romotion policy of Shaheen is not clear.

< RECOMMEN$ATION

>>


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a. $he H) /epartment must intensively look for new candidates to fillCup the

shortage of employees. #or this purpose Shaheen may use internet, print

medias such as newspapers, brochures and may use referrals.

b. Shaheen *harmaceutical acBuired latest eBuipments and machineries butsome of them are still not at work because of lack of technicians and

specialists. It is thus recommended that before any new machinery is

purchased, a contract must be signed with the manufacturer of the machinery

or with the suppliers that they must train some staff of Shaheen to operate the

machine within reasonable time.

c. $he H) department may dedicate a day in a week or in a month for interview

thus eliminates the unnecessary interviews conducted daily and thus can save

precious time of H) Staff.

d. A complete training program must be designed for each and every

incumbent, which may cover not only the details of the job for which the

incumbent is hired but also about the company, its culture, environment, H)

*olicies and the like.

e. Strict beurucratic style of management must be converted to more flexible

type i.e. authority and responsibilities must be delegated to lower level aswell. $his action not only increases motivational level of employees but also

increases the loyalty and sense of belongness of employees.

f. H) /epartment must also forecast for longCterm Human )esource need.

g. H) /epartment must design formal form for applicant interview, salary

surveys, $raining need assessment etc.

h. Human resource needs in Shaheen are mostly determined using judgmental

techniBue. Although judgmental techniBues are one of most important ones,

the H) /epartment must train every !anager, Supervisor, ine !anager etc

so that can use other method as well to enhance the reliability of their

estimates. >7


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i. It is also found that no referral bonus was given to employees who refer

competent, skilled and knowledgeable candidate. $he H) /epartment must

convince the higher management to give such bonus which not only

motivated the employees but the organi ation can in this way get competent,

skilled and experienced worker which may participate in the success of the

organi ation.

j. &rientation 0 $raining period of new incumbent is very short, and usually

the incumbent learn from their mistakes, this is a costly practice. So it is

recommended that new incumbent must be fully trained and after completion

of training period, the training performance must be evaluated before giving

regular job assignment to the employee.

k. &ne main weakness found in Shaheen *harmaceuticals is that there are

different performance standard for employees working same job. $his

practiced must be immediately eliminated and same performance standard

must be set for same job.

l. *erformance reports must be tightly linked with salary increase at the end of

each year.

m. As compared to other pharmaceutical organi ation present in *akistan, thesalary level in Shaheen is much lower. As a result the employeeEs turnover is

very high. H) /epartment must conduct salary survey, comparison and other

means to reduce the current salary gap and thus reduces the employeeEs

turnover.

n. $here must be same pay structure for same job i.e. eBual pay for eBual work.

o. Shaheen H) /epartment must clearly communicate its promotion policy to

all employees.

4? CONCLUSION

>?


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%urrently the company does not have automated H)!S. If this system is

installed, the company will received numerous benefits such as reduction in

recruitment 0 selection costs, Increases H)/ performance, easy 0 fast access to

critical information such as employeeEs personal record, performance log etc.

It was also observed that layoff, termination, demotion and retirement polices

are not clear as a result the moral of key employees were found at low level.

%urrently, the H) !anager is trying there best to develop new policy which

are acceptable to both employer and to employees and thus it is expected that H)

/epartment will reduces their deficiencies and enhances the satisfaction of their

employees.

>


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44 RE+ERENCES

'OO1S

5 +uerin isa 0 /elpo Amy F9884G. %reate 3our &wn (mployee

Handbook F5 st ed.G. %alifornia, 1SA -olo *ress

9 $racey, illiam ). $racey. F988>G. $he human resources glossary the

complete desk reference for H) executives, managers and practitioners

F4rd ed.G -ew 3ork, 1SA S$. 1%I( *)(SS FA %)% *ress

%ompanyG.

4 Helms !. !arilyn. F988?G. (ncyclopaedia of !anagement F7 th ed.G.

ondon, 1 $homson 0 +ale *ublishing %o.

> *rof. rishan !urthi. F988


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9 $raining !anuals of *aramount *harmaceuticals. F@an. 988

115629873 aiou hrm internship report shaheen paharmaceuticals pakistan

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