Project

Submitted To

Respondent's Name

Organization

Department / Function

: Human Resource Management

: Sir Salman Abbasi

: Muhammad Raheel

: BYCO Petroleum Pakistan Limited

: Human Resource Management

Designation of Respondent: Recruitment Officer

Date of Visit : 13-May-2014

Name of Group Members :

: Shakir Ullah

:Masroor Abbasi

Date of Submittion Report: May 15, 2014

Executive Summary :

A million grateful thank to Allah the almighty that gave us the perseverance to

complete this project, which was indeed a difficult one.

We are very thankful to our teacher Mr. Salman Abbasis for assigning us this

report.

This was a totally new experience for us to get the information, as to how companies

do HRM practices,

We are also thankful to Mr. Muhammad Raheel (recruitment officer BYCO) for

his precious time, in which he shared BYCO practices with respect to Human

Resource Management.

The report is an effort to identify different aspects of Human Resource

Management in BYCO, which is one of the major players in the petroleum market in

Pakistan.

An integral part of the report is detailed analysis of the human resource

management aspect including human resource planning, recruitment & selection,

Performance appraisal Training and development, compensation benefit, time

management and performance appraisals are also discussed.

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TABLE OF CONTENTS

CONTENTS PAGE#

COMPANY'S PROFILE (MISSION, VISION, VALUE).03 - 04 HUMAN RESOURCE DEPARTMENT'S ROLE: . 05 - 05 HUMAN RESOURCE DEPARTMENT'S FUCTIONS: 05 - 06 HUMAN RESOURCE DEPARTMENT'S CURRENT CHALLENGES: .. 06 - 06 HUMAN RESOURCE PLANNING: ....07 - 09 RECUIREMENT PROCESS & SELECTION FLOW CHART: ..10 - 11 SOURCES OF RECRUITMENT: .11 - 12 MOST EFFECTIVE SOURCE FOR A VACANT POSITION: 13 - 13 TEST AND INTERVIEWS IN BYCO: .13 - 13 ESSENTIALS QUALITIES BYCO LOOK BEFORE HIRING EMPLOYEES: .13 - 14 TRAINING AND DEVELOPMENT CONTRIBUTION: ....14 - 15 TRAINING AND DEVELOPMENT OPPORTUNITIES: 15 - 15 TRAINING PROGRAMS: .16 - 16 TRAINING AND DEVELOPMENT CYCLE: ......17 -17 ORIENTATION TO NEWLY SELECTED EMPLOYEES: 17 - 18 EVALUATE PERFORMANCE OF EMPLOYEE18 - 18 MAINTAINING EQUITY: 19 - 19 SALARY BANDS: 19 - 19 MAKING SALARY OF A NEWLY SELECTED CANDIDATE: ..20 - 20 PERKS AND BENEFITS: .20 - 21 STANDARD JOB DESCRIPTION FORMAT: .22 - 23 CONCLUSION: .24 - 24

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COMPANY'S PROFILE:

BYCO Petroleum Pakistan Limited (BYCO) formerly known as Bosicor Pakistan Limited, is established

in June 14, 2003 BYCO is Pakistan's emerging energy companies engaged in the businesses of petroleum

marketing, chemicals manufacturing, petroleum logistics and of course oil refining and production of

petroleum products. The company refines crude oil into various saleable components such as, high speed

diesel, liquefied petroleum gas (LPG), motor spirits, high octane blending components, kerosene, jet

fuels, furnace oil and naphtha. Company through its refinery at Mouza Kund site; possess a design

capacity of 35,000 barrels per day.

Company's first retail outlet was established in July 2007. Now it's operates more than 213 retail outlets and

sells its products in the United Arab Emirates, Taiwan, Oman, India, and Afghanistan. The company

is headquartered in Karachi, Pakistan. And they are serving their mission to fulfill the energy demand

within and beyond borders.

MISSION:

"Our Mission is to proactively invest to develop infrastructure in order to become a single source chain

for meeting the economy's chemicals, energy, petroleum and petrochemical requirements, thereby provide

the best possible returns to our stakeholders."

VISION:

"Our Vision is to develop our

company on ethical and

professional basis in order to steadily

grow and become a

valued contributor to the

economy and a respected

corporate entity."

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VALUE:

BYCO values are the guiding principles that define how it conducts its business and what it stands for as

a company. This includes:

Setting high standards of care for environment, health and safety.

Investment in human capital, offer competitive employment terms and provide safe and congenial

working environment and an equal opportunity for all our employees.

Entail human resource development and promotes openness, professionalism, teamwork and trust.

Enhancing value addition, implementing conservation measures and growth up-gradation through

addition of newer generation technologies.

Credibility, goodwill and reputation earned through ethical practices, honesty, integrity and respect

for people.

Safeguarding of shareholders' interest and providing them with a consume rate return on equity is

an integral part of our business ethics.

These values are the basis of our commitment to operate as a sustainable energy company.

We are engaged in manufacturing of a wide range of petroleum products with the

objective to achieve sustainable productivity, profitability and high standards of care for

environment, health and safety. BYCO's operational refinery has a capacity to refine 35,000 barrels a day of crude oil into various saleable components including Liquefied Petroleum Gas, Light Naphtha, Heavy

Naphtha, High Octane Blending Component, Motor Gasoline, Kerosene, Jet Fuels, High

Speed Diesel and Furnace Oil. We are also expanding our refining complex by setting up

another refinery with the capacity of 120,000 barrels per day which is near to completion.

We take pride in having the largest capacity crude oil storage tanks in the country. Our

petroleum distribution network support movement of petroleum products and provide

greater economies of scale. Our marketing network supports retail outlets in more than 80 cities all over Pakistan and is an

emerging leader in oil marketing sector of our

economy. Our diverse and highly skilled workforce

consists of approximately 600 dedicated

employees shared among BYCO companies.

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HUMAN RESOURCE DEPARTMENT'S ROLE:

If we look at the hierarchy of any organization, we found HR as a department but, HR is not just a

department, it is a strategic partner that equally contributes in the success and performance of the

organization.

In BYCO, HR department provide services, services in terms of training and development, services in

terms of recruitment & selection, services in term of performance appraisal, rewards and etc. In case of

any disciplinary problem HR representative also solve it, in short HR department is a department who is

responsible for all the issues, problems and solutions in respect of human resource. In addition to these,

like in every developed organization, HR also maintains the database of employees retains them and

aligns them with the company's goals.

Q.No.2: How many functions of HR do you have in your company? Please, provide brief about their

responsibilities.

HUMAN RESOURCE DEPARTMENT'S FUCTIONS:

In BYCO, HR department has following functions:

They have Recruitment & Selection, Compensation & Benefits, Industrial Relations, Time Management,

Performance Management, and Training & Development includes in Performance Management.

Recruitment & Selection:

For recruitment BYCO practicing both sources internal & external, in internal sources at the time of

appraisals BYCO ask their employees via the emails that if any employee has an interest in other

department he / she can write. Core advantage that mentioned by BYCO for doing internal sources, that it

gives motivation to employee and increase their morale. For external source, BYCO place ads in

newspaper, consult with head hunters, also visit job portals, BYCO has its own maintain website word of

mouth networking and employee referrals also in practice.

Compensation & Benefits: In compensation & benefits include payroll, funds management, management's objective and rewards.

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Time Management

They have a separate section of time management; there is no flex time, office timings are 9 to 6 and

plant timings are 8 to 4, different locations has different timings. Our time management section monitors

these timing.

Performance Management:

Performance appraisal, training structure and training & benefit section exist in BYCO, performance

appraisals are evaluates on fiscal year.

HUMAN RESOURCE DEPARTMENT'S CURRENT CHALLENGES:

As we all are aware of the fact that the industries in Pakistan is in crises, so as the oil refinery industries

also. As per BYCO, being in crises, they are in the phase of commencing. Currently BYCO is working on

the capacity of 30,000 barrels per day and they are extending its capacity to around 115,000 barrels. For

that they are installing new refinery, and as with an increase in capacity they are in need of more human

resource. As per BYCO, the biggest challenge that they are currently facing is they have to recruit more

than 300 organization fitted employees within the period of 2 to 3 months, in order the meet the future

demand of the human resource. Job fitted persons can easily be hired but the main problem is that to

search for organization fitted persons. The reason for searching an organization fitted person is that in

future they can easily be rotated, shifted and promoted to different departments etc.

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HUMAN RESOURCE PLANNING: In BYCO, the key facet of Human Resource Planning (HRP) is that it is proactive in nature. It attempts to

plan and what might happen in the various domains of the organization and to develop plans to address

these events prior to their actual happening. As we know that HRP is the first component of HRM

strategy.HRP goes far beyond simple hiring and firing. It involves planning for the deployment of the

organization's human capital in the most effective ways in line with organization's strategy.

Two types of planning:

Aggregate planning

Succession planning

AGGREGATE PLANNING:

Basically when we needed for groups of employees in lower level jobs we do aggregate planning. For

aggregate planning, they use DELPHI Technique. In such planning, the departmental heads inform HR

department about their need of human resource, then HR department acts as an intermediary and

summarizes the requirement and check that do they really need that or not. The reason for such cross

checking is that if the need is for time being then it will cost the organization after meeting the objective

for which they were hired. So in order to control and to be on equilibrium point with respect to the

demand and supply of the human resource, effective aggregate planning is necessary. BYCO has

following steps in aggregate planning.

STEP 1 • ENVIRONMENTAL SCANNING

STEP 2 • FORCASTING THE DEMAND FOR EMPLOYEE

STEP 3 • FORCASTING SUPPLY

STEP 4 • MEETING OF DEMAND AND SUPPLY

STEP 5 • EXECUTION OF PLAN

STEP 6 • CONTROL AND EVALUATION

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1. ENVIRONMENTAL SCANNING:

First BYCO scans its environment. Environment scanning includes both External environment and

internal environment. In External environment they search the cause of the human resource demand

in future with respect to Political, Economical, Social, Technological, Legal and the Competitors as

well. On the other hand, in Internal, they check their future plans, budgets, production and sales

forecasts and other factors related to human resource for example retirement, turn-over, terminations

and deaths etc.

2. FORECASTING THE DEMAND OF EMPLOYEES:

In this step, they forecast the demand of human resource. As mentioned before, BYCO follows

Delphi Technique. In this technique, departmental heads informs HR about their need of human

resource and then HR department act as an intermediary and summarizes the demand.

3. FORECASTING SUPPLY:

The third step in aggregate planning for human resource is forecasting supply. In this step BYCO

checks that whether the supply should be from internal or external. Internal supply would be when the

current employees of the organization are promoted or rotated, whereas in external supply, people

will be attracted from the market.

4. MEETING OF DEMAND AND SUPPLY:

In this step HR Programming reconciles the forecasts of the demand and supply of human resource.

This step identifies the potential shortage or surplus of employees and the measures to be taken to

ensure that personnel demand equals personnel supply so that equilibrium can be achieved.

5. EXECUTION OF PLAN: Now the plan is putted into action or the execution of the plan is done at this step.

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6. CONTROL AND EVALUATION:

After the execution of the plan, proper check and balance has to be done so that the plan can be

control and evaluated.

The above mentioned steps are for aggregate planning and are followed in every period so that the

equilibrium of demand and supply can be achieved because if the supply exceeds and people hired before

they are needed than the company have to bear the expense. Whereas when demand exceeds and people

are hired less than needed than the company again have to bear the loss which will be results in low

productivity of the organization.

SUCCESSION PLANNING:

In succession planning, successors are trained and developed in order to replace the senior position when

the person at that position retires, expire or leave the organization. Succession planning serves two

purposes:

- It facilitates the transition when an employee leaves. - It identifies development needs of high potential employees.

In BYCO, HR department identifies the potential employees who will be promoted to senior positions

when that position vacant, or rotated. Normally

BYCO promotes the juniors to the senior position

when that position vacant and ultimately when

juniors are promoted to the senior positions, then for this

position recruitment and selection starts. IUNC Page 9

RECUIREMENT PROCESS & SELECTION FLOW CHART:

After the personal requisition form being received from concerned department to HR department, HR

recruiter works starts, first he schedules meeting with department's head when he realized the need a

manpower is exist, then he figured out about internal and external source if in case of internal they see on

papers at the time of appraisal which employee was interested and which has potential to do the job so

they rotation him / her, if in case of external they place the job in news paper, company's website and

visit job portals, and also take resume from headhunters then they screen them, and share with

department's supervisor, when department's supervisor give us ok sign they call candidate for an

interview.

It includes simple Math, English and IQ question

If candidate qualifies,

First level interview conducted by Line supervisor with HR person

If absence of HR person, candidate has to give interview again with HR person,

In a second level department's head takes candidates Interview,

Usually HR Person also sit in this interview because of avoid biasness.

Now offer the job to candidate

Medical test

No provision period candidate gets permanent with his / her first day,

When finally job offered, and letter gives to candidate, he / she must resign his / her current Organization.

After resigning current organization, BYCO perform reference check.

If reference check done earlier candidate credibility in current organization might be hurt.

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Here question arise if a candidate resign a job and accept BYCO's offer, and in reference check candidate found illegible or in any other case If BYCO want to fire an employee, they give them one month period notice and in the case of employee wants to resign he also has to inform BYCO before one

month.

It's a standard flow chart that mentioned previous page but Interviews depends on hierarchy, every

candidate gives at least two interviews or more than two.

SOURCES OF RECRUITMENT:

Every organization has the option of choosing the candidates for its recruitment processes from two kinds

of sources:

1. Internal Sources

2. External Sources.

BYCO exercise both sources for creating the pool of candidates for recruitment. 1. INTERNAL SOURCES:

The sources within the organization itself (like transfer of employees from one department to other,

promotions) to fill a position are known as the internal sources of recruitment.

2. EXTERNAL SOURCES:

External Sources are the sources in which a pool of candidates is created from the external sources.

BYCO uses the following external sources:

JOB ADS:

Job Ads (Print Media)

Head Hunters / Consultants

Job Portals

Placement offices of Universities.

Word of mouth or Networking or Employee Referrals.

Company's own website.

BYCO creates the pool of the CVs by placing an ad in print media. It is helpful in collecting a huge

number of CVs but at the same time it's a time consuming because the company have to short list that

huge number, so BYCO usually avoids in publishing their Job Ads in print media but they use this option

also.

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HEAD HUNTERS:

They utilized the services of head hunters also in recruitment. This option saves their time and helpful in

getting the CVs which are related and match their requirement. In short they save their sufficient time

while utilizing this option.

JOB PORTALS: BYCO uses the Job Portals as well. They use the services of ROZEE.PK and LINKEDIN as well. PLACEMENT OFFICES: BYCO uses this option when they hire fresh engineers specifically. EMPLOYEE REFERRALS:

BYCO use this option specifically when they are need of technical staff. According to BYCO, when they

need technical staff, they float that information among employees. By doing this, it helps BYCO is

getting of the candidates that will be aware of the culture of the organization, working conditions and they

also gets the reference from the existing candidates of the organization. BYCO'S WEBSITE:

BYCO has a website where the interested candidates upload their CVs. So BYCO use this option also

when there is a need and gets the CV from their database. IUNC Page 12

MOST EFFECTIVE SOURCE FOR A VACANT POSITION:

For BYCO, the most effective source with respect to time and cost differs from situation to situation and

from position to position. For example, if they need a person to fill a vacant position of junior level, than

they go for the Company's maintain database and Job portals. If they need a person on technical level,

than they float the information among employees. For

BYCO, employee's reference is the most effective source

for hiring of a technical position at junior level. The

reason for this is, by the help of this type reference only

those people will be screened who are aware of the

working conditions, organization's norms and customs,

in short they get the organization fitted person by this

source. Whereas for senior positions, they search the

right candidate and exercise any of the option just to get the

best one.

TESTS AND INTERVIES IN BYCO:

In BYCO, before hiring a candidate, during selection process, his or her potential is check on different

phases accordingly. Suppose BYCO is searching a person for a technical position, then in this scenario

the questions in interviews and tests which they will conduct will majorly depends upon the testing of

technical skills and the abilities of the candidate necessary for that position.

Generally on initial basis, BYCO conducts a test which is based upon the questions related to ENGLISH,

MATHS and IQ. They do ask questions related to General Knowledge as well. But as mentioned, the

nature of questions and tests differs from position to position. For junior levels, they do this test

(mentioned above), then in further process candidate has an interview in which BYCO checks the

potential by giving them scenario and most importantly by probing.

For senior positions, they avoids proper tests on initial levels, the need of test on that level is adjusted by

interviews, means they ask questions in interviews which eliminate that gap. But in further process, they

do test them by giving scenario based questions in which they check their ability of making decisions. If

that candidate past that tests and interviews, than they test the stress management of the candidate which

as per BYCO is more important test for senior positions. This is a general view but the tests and

interviews are adjusted as per the positions they are looking for.

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ESSENTIALS QUALITIES BYCO LOOK BEFORE HIRING EMPLOYEES:

BYCO targets graduates who exemplify BYCO's values and are committed to achieving commercial

outcomes through technical excellence. Applicants will need to demonstrate effective communication

skills and strong problem solving, analytical, time management and organizational abilities.

They are keen to hear from applicants who are willing to strive for high quality results working in a

dynamic and challenging environment and be flexible in their work locations.

Unlike other organization BYCO petroleum limited also hire a person keeping in mind that the person

should be the right one that is He or she should be best fit for the organization. The person should adjust

according to the organization's culture

TRAINING AND DEVELOPMENT CONTRIBUTION:

Training and development section is a key section in HR department that helps in filling the gap between

employees' abilities and organization's expectation. Similarly in BYCO petroleum training and

development is done in order to satisfy the company needs. Being an Oil refinery company, BYCO has to

meet the changes and challenges faced by the petroleum industry, in order to be a competent in the

market. If the organization did not adjust with the changes in the industry than its productivity can be

affected, which will ultimately results in loss of the market share, which any of the competent

organization don't want to. The changes may be of Political, Technological, Legal, Social, Economical or

Natural. So if the organization wants to be productive in accordance with the global or industry changes,

than their employees should be trained so that they can easily meet the changes.

In BYCO, Training and Development section of HR department, meets the organizational needs.

Organizational needs can be of two types:

MICRO NEEDS: These are the needs for a small group of people within the organization. Micro needs appear when:

IUNC

New employee are hired and their needs will be the knowledge about the organization,

departments etc. These needs can be fulfilled by giving Orientations.

When a person is rotated or promoted to another job or position, then the expectation from that

job or position and the abilities of that employee have to match by filling the gap between two,

through training.

When a special task is assigned to the group then there a training need appeared.

When people are identified as high potentials than in order to perform well, they need training.

Page 14

Apart from the previous page mentioned needs, there might be other needs as well for a small group of

people. Thus the needs for small group are the micro needs for training.

MACRO NEEDS: These are the needs for a large number of employees of the organization. It may include:

Technological change in the organization.

Whole department has to give precautionary training of safety, health etc.

A plant is extending like in the BYCO, they are extending its capacity from 30,000 to 115,000

barrels per day.

In BYCO's HR department, its training and development section plays a very important role because they

have to check through performance appraisals or the organizations needs that whether the employees

performances are meeting the expectations of the organization. If not, then they must train and develop

them.

TRAINING AND DEVELOPMENT OPPORTUNITIES

In BYCO petroleum employees have not only the chance to meet their current requirement but they also

have great opportunities to develop themselves. Instead of providing and satisfying the current needs

BYCO petroleum also offer programs for the development of employees, one of the programs BYCO is

offering is that if some of their employees has unfortunately missed or have not received the education

due to some circumstances and if he is willing to complete his education, BYCO petroleum is offering

such programs in which the interesting employees are requested to fill a form. This form is filled at the

end of the fiscal year.

This appraisal form is also used for the employees who are willing to serve their expertise in some other

department. During the appraisals a keen review is done

and if the HR and requisite department is willing to have

the new hiring or if they found that this job rotation will

play a key role in the achieving the organization goals

and as well as the development of the employee.

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TRAINING PROGRAMS:

BYCO also send their employees outside Pakistan for training purpose when found necessary. It depends

upon the situation or training that is needed and to be given to the employees. Like in current scenario, for

the plant which is imported and which will refine additional 85,000 barrels, they send their engineers for

the training outside the Pakistan from where they learned about that plant right from its installation to its

operations. Though it is an expensive approach but it is not as much as in comparison of the future

expected benefits from that plant. Now those trained engineers are currently installing that plant and in

meanwhile train others also about the operations of that plant.

Every organization needs well-adjusted, trained and experienced people to perform its activities. As jobs in

today's dynamic organizations have become more complex, the importance of employee education has

increased. Employee training is a learning experience, it seeks a relatively permanent change in

employees that their improve job performance. Training involves changing skills, knowledge, attitudes, or

behavior. This may means changing what employee know, how they work, or their attitudes toward their

jobs, coworkers, managers, and the organization.

.

BYCO recognizes the strategic value in recruiting new talent at graduate level and provides excellent

opportunities for growth and development through our two-year Management Trainee Program. BYCO

targets graduates who exemplify BYCO's values and are committed to achieving commercial outcomes

through technical excellence. Applicants will need to demonstrate effective communication skills and

strong problem solving, analytical, time management and organizational abilities.

"We are keen to hear from applicants who are willing to strive for high quality results working in a

dynamic and challenging environment and be flexible in their work locations". (Mr. Amir Abbassiy CEO

BYCO).

BYCO's Management Trainee Program provides accelerated career development incorporating on-

the-job technical training and specialist development activities.

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TRAINING AND DEVELOPMENT CYCLE:

ANALYZE TRAINING AND DEVELOPMENT

IDENTIFY TRAINING PLANS

PREPARING TRAINING CALENDER

LECTURES AND COURSE IDENTIFICATIONS

LOOK FOR INTERNAL SOURCE

LOOK FOR EXTERNAL SOURCE

CONDUCT TRAINING SESSIONS

WAS TRAINING EFFECTIVE AND HELPFUL

YES

RESULT

NO

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ORIENTATION TO NEWLY SELECTED EMPLOYEES: Yes, we give orientations to our new employee so that they will know some part about the company

before starting work. The main purpose of orientation is to provide guidance and direction regarding the

development and implementation of comprehensive employee orientation programs within departments,

in order to support, welcome and recognize employees, as they start a new job within government. BYCO's main objectives of orientations are:

Gain employee commitment,

Reduce their anxiety,

Help employees to understand organization's expectations,

Convey what they can expect from the job and the organization. It is commonly followed by

training tailored to specific job positions. See also acculturation and company orientation.

The things covered in orientations are:

An overview of the structure of BYCO, and roles of founder chairman and CEO,

Overview of organizational structure, ownership structure and location,

Introduction and information of each departmental head,

Information about BYCO's strategic direction and vision and examples of strategic initiatives,

An overview of departments, including cafeteria and structure,

Information about mission, vision and values,

BYCO's corporate social responsibilities,

Information about as a preferred employer, and pride in our workplace,

Information about working in BYCO, including an overview of management manuals, corporate

planning, budgeting, business planning, and performance management processes.

EVALUATE PERFORMANCE OF EMPLOYEE

BYCO evaluate performance against their Key Performance Indicators (KPIs), Standards or the

predefined benchmarks. These evaluations are kept confidential and so the measures of evaluating the

performance as well. HR in BYCO maintain the records of the performance and they compare that against

the organizations standards and the past record of the employees, if BYCO found a down fall in the

performance of an employee than they do search the reason for that downfall. If they still saw a potential in

candidates, and found the reason because of external factors than they figure out that by either means

of training, development, rotation on depending upon the case may be. On the other hand, if a candidate is

continuously performing bad and in spite of several warnings or necessary measures, he is not meeting

the organization's expectations than he will be given a month notice and then his job will be terminated.

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MAINTAINING EQUITY:

BYCO as mentioned is currently in the phase of commencing, so compensation management is of more

importance to the company. They not just have to retain its existing employees but they have to attract

new from the industry as well. So maintaining internal and external equity is really important for them.

Though the company did not share its strategy that how they maintain their internal and external equity

because of the confidentiality, but they do share that they have to maintain that in order to keep their

employees motivated. If their employees found that they are getting low as compared to the person in the

same industry or in comparison of the person from the same organization, than they will become de-

motivated resulting either the performance of the employees affected or they might switch and leave the

organization.

SALARY BANDS:

Like most of the organizations have salary bands, similarly BYCO has also different salary bands for

different designations for employees. According to BYCO, these bands helps the HR department while

hiring a new candidate for the job, because BYCO is currently in the phase of commencing, so in order to

give the candidate a good package, they restrict on that particular salary bands so that equity is maintain

between the employees of the same designation. These salary bands are kept confidential. The reasons for

keeping the bands confidential are:

At the time of hiring the candidate, if the candidate knows about the bands then he or she may try to over-

sell in order to get maximum salary package.

If the existing candidate knows that the bands upon which they are standing and the limits of that bands,

this may create insecurity of the job with them. In security in a sense that for example, a person is on

salary band which is from RS 25,000 to RS 40,000 and he

is currently getting RS 38000, that person knows that the

band on which he is has a maximum limit of RS 40,000, so

he might starts thinking to switch the job if he has a

potential or he might be de motivated and stop himself by

performing the way he performed in past.

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MAKING SALARY OF A NEWLY SELECTED CANDIDATE:

While making the salary for a newly selected candidate, BYCO's practice is their HR department first

look at the salary bands of the position for which they are selecting the candidate. After that they consider

the candidate's age, experience, qualification and most importantly his current salary if he is coming from

any organization.

There are two strategies that BYCO follows:

If they are hiring any fresh candidate, which means that the candidate is recently completed his

education and don't have any experience, then BYCO consider his past achievements and sign of

achievement, that the candidate have in his education, internships and in some cases the projects

upon which the candidate works in his academic life.

If the company is hiring a candidate that have an experience, then the company, as mentioned

earlier, consider his age, experience and most importantly his current salary which he is currently

getting in the organization he is currently associated with. The reason for considering the current

salary is as the company is currently in the phase of commencing and they extending its capacity

from 30,000 barrels per day to 115,000 barrels, so in order to attract the candidates from the

competitors or from the market, they have to offer attracting packages to the candidates so that to

handle the challenge that BYCO is currently facing that is they have to hire around 300

experienced candidates in 2 to 3 months. Though the company is currently offering attractive

packages to their employees, but they also have to consider their established salary bands and the

equity among employees as well.

PERKS AND BENEFITS:

Other than salary, BYCO offers some other perks and benefits to their employees in order to keep them

motivated and to retain them as well. They offer medical allowance, bonuses, leave fare assistance (LFA),

provident fund and some other allowances.

MEDICAL ALLOWANCE:

The company provides medical allowance to their employees in order to meet their medical needs. They

have a different percentage for the medical allowance depending upon the hierarchy or designation of the

employees to whom they are giving medical allowances. If in any case the need exceeds from the limits

than the additional amount will be bear by the employees themselves.

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BONUSES:

Company provides bonuses to their employees on annual basis. The amount of bonus is not fixed and it

changes depending upon the goals and objectives achieved and the performance of the company.

LEAVE FARE ASSISTANCE (LFA):

Leave fare assistance (LFA) is an allowance in BYCO in which a sum of amount is kept in hold of the

monthly salary and at the end of the year the company adds more amount in it and allows the employees

for annual vacations by paying that total amount. That allowance might be different from organization to

organization but BYCO has this practice.

PROVIDENT FUND:

Provident fund is an allowance in which a certain sum of salary is kept by the company on monthly basis

and the company equally contributes the amount and accumulate it up-to the period the employee remains

part of the company. The time when that employee leave the organization whether he switch the job or he

got retired, that accumulated sum is handed over to him.

OTHER ALLOWANCES:

Apart from the above mentioned allowances, the company also offers some other allowances depending

upon the department from which the employee belongs. For example the company gives fuel allowance

and mobile allowance to the employees

from sales department. They give travelling

allowance to the employees who have to travel

from the office from one city to the office in

other city. In addition to this they

also give education loans to their

employees in order to complete the

education which will benefit the

organization in future.

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STANDARD JOB DESCRIPTION FORMAT

BYCO do have standard job descriptions for their employees which helps them in defining the

designation, type, duties, responsibilities, number of person who will report, to whom

report and all the related information that a typical Job

Description (JD) has. The company did not share its JD but

do share that their JDs have the followings:

to

they

Job Title:

Job Summary

Duties and Responsibilities

Skill and education requirement

Position

Department (To whom to report)

Main purpose of job

Working conditions

Communications and working relationships

Decision making

Key competencies

Approval

JOB TITLE & JOB SUMMARY: Start with little about organization, and employees designations. POSITION:

BYCO made their JDs as per positions. Normally organizations made their JDs in the name of the person

on that position but BYCO made their JDs as per positions. This helps them in a sense that person may be

shifted or rotated but the positions will remain.

DUTIES ANS RESPONSIABLITES:

What to perform, what are employee duties like decision making, controlling and etc. and what are his /

her responsibilities.

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DEPARTMENT:

In this it is mentioned that the position is belongs to which department. And to whom employee will

report. In organizations it's very important to define to whom to report so that it will decrease the

confusion relating to reporting.

MAIN PURPOSE OF THE JOB: In this the main purpose of the job is mentioned that is what the core duty of that position is. WORKING CONDITIONS: In this part, the working conditions are mentioned in which that position have to work. COMMUNICATIONS AND WORKING RELATIONSHIPS:

In this part, the communications and working relations are mentioned, which means that during the job,

with whom departments and persons, that position has to coordinate.

DECISION MAKING: In this the criteria is mentioned in which that position has to make the decisions. KEY COMPETIENCIES:

In this part the required skills and abilities are mentioned that are required and have to be in person on

that position.

APPROVAL:

This is a separate section at the end of the JDs in

which approval is done and signed by the consult and related

persons. IUNC Page 23

CONCLUSION:

HR department in any organization contributes equally in meeting the goals not just on departmental level

but on the strategic level as well. After visiting BYCO we conclude that the core concepts of the human

resources management that we learn within the boundaries of the classroom are not just theoretical but

they are truly practical. We found that the operations of HR department in BYCO are as per the core

concepts of human resource management.

Previously we had a misconception that HR department in any organization does only recruitment,

selection and manages the performance records of the employees. But now we learn that HR department

also does human resource planning, training and development, compensation management etc. in nutshell

we conclude that HR is a strategic partner that is responsible for the all human resource right from their

entry in the organization to their exit from the organization.

Our experience so far was tremendously interesting and we are eager to learn more about human resource

management.

IUNC Page 24