pepsi cola human resource management project

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HUMAN RESOURCES MANAGEMENT

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HUMAN RESOURCES

MANAGEMENT

COMSATS Institute of Information & Technology M.A Jinnah Campus, Lahore.

Acknowledgment

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First of all we thank Allah Almighty the most beneficent and merciful

who gave us strength, patience and inspiration needed to complete this

task, which is essential requirement for the completion of our project.

We would like to acknowledge,

MAM FUKAIHA KAKAKHAIL

It was only due to his guidance, we had the opportunity to gain

the latest hand-on knowledge conducting ON

NAUBAHAR BOTTLING COMPANY

We are also very thankful to all our fellows who Guide us in all

The manners we required.

Executive summary

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PepsiCo, Inc., incorporated in 1919, manufactures, markets and

sells soft drinks and concentrates, and snack foods. PepsiCo and its

divisions and subsidiaries operate in three business segments:

Worldwide Snacks, Worldwide Beverages and Quaker Foods North

America (QFNA). The Company's snack food business is comprised of

two business units: Frito-Lay North America (FLNA) and Frito-Lay

International (FLI). The Company's beverage business is comprised of

three business units: Pepsi-Cola North America (PCNA),

Gatorade/Tropicana North America (GTNA) and PepsiCo Beverages

International (PBI). On August 2, 2001, the Company completed a

merger transaction with The Quaker Oats Company (Quaker)

whereby Quaker became a wholly owned subsidiary of PepsiCo.

DEDICATION

Our Honorable Teachers & Loving Parents

Whose,

Love, Affection, Motivation, Patience, Support

&

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Spiritual Inspiration

Give us Encouragement,

To all those People who have quenched for

Knowledge,

To all those who have dedicated their lives to

others,

To all of those who have served and sacrificed for

Sake of Freedom

To all of those people, they may be gone now

But they will never be

Forgotten....

Table of Content Mission statement Vision Pepsi introduction and future planning Pepsi slogan and logo Organizational structure Delivery system

Direct delivery

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In direct delivery Departments

Operating department Production department Human resource department

Structure of human resource department Major functions

Planning and forecasting Planning

Human resource planning Human resource planning process

Forecasting External supply Internal supply Forecasting human resource demand

Job description Job description process

Job identification Job summary Responsibilities and duties Standard of performance Working condition Authority and incumbent

Job specification Specification for trained personnel Specification for untrained personnel Specification based on judgment Specification based on statistical analysis

Recruitment and selection process Recruitment in Naubahar bottling company

Major sources Types Candidates Newly hired

Training and development Basic model GAP Structure need

Application process Model of result oriented needs assessment Compensation management

Compensation Reward system

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Salary Probation period Rent Medical care Social security card Transportation

Changes within the organization Promotion Transfer Demotion

Separation Lay off Retirement Resignation

Leave system Casual leave Medical leave Annual leave

Weakness in human resources department Observations and suggestions Recommendations Glossary

MISSION STATEMENT

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“The mission is to produce PepsiCo quality beverages, maintain market leadership by growing our sales volumes,

strengthen our market share, delivering ROI to all of its stakeholders and fulfill its responsibilities in the

community”.

VISION STATEMENT

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“The Vision of the company is to continue to build a strong

company which is the number one beverage company in

Pakistan and provides value to all of its stakeholders.”

PEPSI

IN PAKISTAN

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Pepsi cola is also very popular in Pakistan that’s why its market share is about 90% in the soft-drink market. Pepsi Cola International, a remarkable name in the cola industry is doing its business in Pakistan through franchising. PCI has developed

following bottlers in Pakistan till now. Naubahar Bottling Company

is the largest manufacturer and distributor of Pepsi Cola soft drinks in Pakistan.

These franchises are located in PAKISTAN Karachi

Lahore

Multan

Faisalabad

Gujranwala

Peshawar

Islamabad

Sukkher

Hyderabad

Naubahar bottling company

(NBC)Pvt. Ltd. Gujranwala

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Naubahar Bottling Co. (Pvt.) Ltd. (NBC) is one of the nine (09) franchises of

“Pepsi Cola International” in Pakistan. Naubahar Bottling Co. (Pvt.) Ltd. (NBC) first

was involved in the business of manufacturing and marketing of Coca-Cola. Later

on it started manufacturing and marketing business with Pepsi Cola in May 27,

1981. The Area allotted to it, was Gujranwala Franchise. The franchise area

consists of the following nine districts.

Gujranwala

Gujrat

Hafizabad

Mandibghaud

Jehlum

Sialkot

Narowal

Sheikhupura

Chakwal

The company operates through a well-established network of a number of distributors. The

company has two types of delivery systems i.e.

Direct delivery system

Indirect delivery system

The basic difference between the direct and the indirect delivery system is that in a direct

distribution system, the company spends its own resources while in an indirect distribution; the

dealer spends his own resources on all the factors which increases the sales volume:

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DDIRECTIRECT D DELIVERYELIVERY S SYSTEMYSTEM

Manufacturer Retailers Customers

IINDIRECTNDIRECT D DELIVERYELIVERY S SYSTEMYSTEM

Manufacturers distributor Retailers Customers

Most importantly, this direct delivery system is present only in Gujranwala franchise in

Pakistan. The company also has its depots (remote depots) in different cities. It helps a lot in

increasing its sale and directing the distribution system. They are in

Sialkot

Gujrat

Shahdara

Jehlum

Sheikhupura

Narowal

HISTORY AND FUTURE PLAN

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THE SUMMER OF 1898, AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTHTHE SUMMER OF 1898, AS USUAL, WAS HOT AND HUMID IN NEW BERN, NORTH CAROLINA. SO A YOUNG PHARMACIST NAMED CALEB BRADHAM BEGANCAROLINA. SO A YOUNG PHARMACIST NAMED CALEB BRADHAM BEGAN EXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES, AND SYRUPS TRYINGEXPERIMENTING WITH COMBINATIONS OF SPICES, JUICES, AND SYRUPS TRYING TO CREATE A REFRESHING NEW DRINK TO SERVE HIS CUSTOMERS. HETO CREATE A REFRESHING NEW DRINK TO SERVE HIS CUSTOMERS. HE SUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INVENTED THE BEVERAGESUCCEEDED BEYOND ALL EXPECTATIONSBECAUSE HE INVENTED THE BEVERAGE KNOWN AROUND THE WORLD AS PEPSI-COLA.KNOWN AROUND THE WORLD AS PEPSI-COLA.

Caleb Bradham knew that to keep people returning to his pharmacy, he would have to turn it into a gathering place. He did so by concocting his own special beverage, a soft drink. His creation, a unique mixture of kola nut extract, vanilla and rare oils, became so popular his customers named it "Brad's Drink." Caleb decided to rename it "Pepsi-Cola," and advertised his new soft drink. People responded, and sales of Pepsi-Cola started to grow, convincing him that he should form a company to market the new beverage

In 1902, he launched the Pepsi-Cola Company in the back room of his pharmacy, and applied to the U.S. Patent Office for a trademark. At first, he mixed the syrup himself and sold it exclusively through soda fountain.

He mixed the syrup himself and sold it exclusively through soda fountains. But soon Caleb recognized that a greater opportunity existed to bottle Pepsi so that people could drink it anywhere.

1903, "Pepsi-Cola" was officially registered with the U.S. Patent Office. That year, Caleb sold 7,968 gallons of syrup, using the theme line "Exhilarating, Invigorating, Aids Digestion." He also began awarding franchises to bottle Pepsi to independent investors, whose number grew from just two in 1905, in the cities of Charlotte and Durham, North Carolina, to 15 the following year, and 40 by 1907. By the end of 1910, there were Pepsi-Cola franchises in 24 states.

Pepsi-Cola's first bottling line resulted from some less-than-sophisticated engineering in the back room of Caleb's pharmacy. Building a strong franchise

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system was one of Caleb's greatest achievements. Local Pepsi-Cola bottlers, entrepreneurial in spirit and dedicated to the product's success, provided a sturdy foundation. They were the cornerstone of the Pepsi-Cola enterprise. By 1907, the new company was selling more than 100,000 gallons of syrup per year.

1898 Caleb Bradham’s, a New Bern, North Carolina, pharmacist, renames "Brad's Drink," a carbonated soft drink he created to serve his drugstore's fountain customers. The new name, Pepsi-Cola, is derived from two of the principal ingredients, pepsin and kola nuts. It is first used on August 28.

1903 In keeping with its origin as a pharmacist's concoction, Bradham's advertising praises his drink as "Exhilarating, invigorating, aids digestion."

1905 A new logo appears, the first change from the original created in 1898

1920 Pepsi appeals to consumers with, "Drink Pepsi-Cola. It will satisfy you."

1938 The trademark is registered in the Soviet Union.

1941 In support of America's war effort, Pepsi changes the color of its bottle crowns to red, white and blue. A Pepsi canteen in Times Square, New York, operates throughout the war, enabling more than a million families to record messages for armed services personnel overseas.

1950 "More Bounce to the Ounce" becomes Pepsi's new theme as changing soft drink economics force Pepsi to raise prices to competitive levels. The logo is again updated.

1953 Americans become more weight conscious, and a new strategy based on Pepsi's lower caloric content is implemented with "The Light Refreshment" campaign.

1958 Pepsi struggles to enhance its brand image. Sometimes referred to as "the kitchen cola," as a consequence of its long-time positioning as a bargain brand, Pepsi now identifies itself with young, fashionable consumers with the "Be

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Sociable, Have a Pepsi" theme. A distinctive "swirl" bottle replaces Pepsi's earlier straight-sided bottle.

1963 In one of the most significant demographic events in commercial history, the post-war baby boom emerges as a social and marketplace phenomenon. Pepsi recognizes the change, and positions Pepsi as the brand belonging to the new generation-The Pepsi Generation. "Come alive! You're in the Pepsi Generation" makes advertising history. It is the first time a product is identified, not so much by its attributes, as by its consumers' lifestyles and attitudes.

1964 A new product, Diet Pepsi, is introduced into Pepsi-Cola advertising.

1973 Pepsi Generation advertising continues to evolve. "Join the Pepsi People, Feelin' Free" captures the mood of a nation involved in massive social and political change. It pictures us the way we are-one people, but many personalities.

1976 "Have a Pepsi Day" is the Pepsi Generation's upbeat reflection of an improving national mood. "Puppies," a 30-second snapshot of an encounter between a very small boy and some even smaller dogs, becomes an instant commercial classic.

1982 With all the evidence showing that Pepsi's taste is superior, the only question remaining is how to add that message to Pepsi Generation advertising. The answer? "Pepsi's got your Taste for Life!" a triumphant celebration of great times and great taste.

1990 Teen stars Fred Savage and Kirk Cameron join the "New Generation" campaign, and football legend Joe Montana returns in a spot challenging other celebrities to taste test their colas against Pepsi. Music legend Ray Charles stars in a new Diet Pepsi campaign, "You got the right one baby."

1991 "You got the Right one Baby" is modified to "You got the Right one Baby, Uh-Huh!" The "Uh-Huh Girls" join Ray Charles as back-up singers and a campaign soon to become the most popular advertising in America is on its way.

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Supermodel Cindy Crawford stars in an award-winning commercial made to introduce Pepsi's updated logo and package graphics.

1992 Celebrities join consumers, declaring that they "Gotta have it." The interim campaign supplants "Choice of a New Generation" as work proceeds on new Pepsi advertising for the '90s. Mountain Dew growth continues, supported by the antics of an outrageous new Dew Crew whose claim to fame is that, except for the unique great taste of Dew, they've "Been there, Done that, Tried that."

1993 "Be Young, Have fun, Drink Pepsi" advertising starring basketball superstar Shaquille O'Neal is rated as best in U.S.

1994 New advertising introducing Diet Pepsi's freshness dating initiative features Pepsi CEO Craig Weather up explaining the relationship between freshness and superior taste to consumers.

1995 In a new campaign, the company declares "Nothing else is a Pepsi" and takes top honors in the year's national advertising championship.

In 2000 PepsiCo sales are $20 billion and the company has 125,000 employees at year Now Pepsi is available in more than 200 countries of the world.

Pepsi slogan and logo

1902 Brad's Drink

1903Exhilarating, Invigorating, Aids Digestion

1906 Original Pure Food Drink

1908 Delicious and Healthful

1915 For All Thirsts - Pepsi: Cola

http://www.pepsinut.com/images/logos/logo03.jpg

http://www.pepsinut.com/images/logos/logo03a.jpg


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1919 Pepsi: Cola - It makes you Scintillate

1920 Drink Pepsi: Cola - It Will Satisfy You

1928 Peps You Up!

1929 Here's Health!

1932 Sparkling, Delicious

1933 It's the Best Cola Drink

1934Double SizeRefreshing and Healthful

1938 Join the Swing to Pepsi

1939 Twice as Much for a Nickel

1943 Bigger Drink, Better Taste

1947 It's a Great American Custom

1949 Why Take Less When Pepsi's Best?

1954The Light RefreshmentRefreshing Without Filling

1958 Be Sociable, Have a Pepsi

1961Now It's Pepsi for Those Who Think Young

1963Come Alive! You're in the Pepsi Generation

1967Taste that Beats the Others Cold, Pepsi Pours It On.

1969You've Got a Lot to Live, Pepsi's Got a Lot to Give

1973 Join the Pepsi People Feelin' Free



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1976 Have a Pepsi Day!

1979Catch That Pepsi SpiritTake the Pepsi Challenge

1981 Pepsi's Got Your Taste for Life

1983 Pepsi Now!

1984 The Choice of a New Generation

1987 America's Choice

1989 A Generation Ahead

1992 Gotta Have It

1993 Be Young, Have Fun, Drink Pepsi

1995 Nothing Else is a Pepsi

1997 Generation Next

1998 Same Great Taste

1999 The Joy of Cola

2000 The Joy of Pepsi

2003 Pepsi. It's the Cola

2010 Yes you can







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Organizational structure

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MAIN PRODUCTS OF PEPSI

Pepsi The flagship product and the best tasting beverage there is.

Diet Pepsi Great taste, with only one calorie.

Director

General Manager

Sales Manager (Local Sales)

Sales Manager (Out Sales)

Plant Manger

Marketing & Services Manager

S & D Mangers

Assistant Manager Marketing & Services

Publicity Manager

Store

Manager

Shipping

Manager

MIS

Manager

Finance Manager

Purchase

Manager

Audit Manager

HR Manager

Production Manager

QC

Manager

Managing Director

Store

Manager

Shipping

Manager

Purchase

Manager

Audit Manager

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Pepsi Vanilla Fresh new Vanilla taste

Diet Pepsi Vanilla Fresh new Vanilla taste with only one calorie

Pepsi One Great tasting with only 1 calorie.

Pepsi Twist Adds a twist of lemon to the great Pepsi taste.

Wild Cherry Pepsi Adds the flavor of cherry to the great Pepsi taste.

Mountain Dew Crystal clear and refreshing.

Code Red Mountain’s product

Aquafina Bottled water.

Mirinda Fruit drink.

DEPARTMENTS DEPARTMENTS

(1) OPERATING DEPARTMENTS

Procurement store

Raw material purchase

General purchases

Purchase process

Domestic and foreign purchase

(2) PRODUCTION DEPARTMENT

Quality control

Water treatment

Process of empty bottling filling

Process of washing bottles

(3) H.R.M DEPARTMENT

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Structure of H.R.M Department

No of employees working in H.R.M Department

Functions of H.R.M Department

Human Resource Planning and Forecasting

Human Resource planning process

Recruitment and selection

Employees Selection Process

Recruitment Process in NBC

Model of result oriented need assessment

Training in NBC

Organizational management

STRUCTURE OF HR DEPARTMENT

Assistant to H.R Manager (H.R Executive)

Assistant to H.R Manager (H.R Officer)

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Number of employee working in the H.R.M Department:

Almost three employees working under the Human Resource Manager but

on the other hand 2500 employees working in PEPSI (Naubahar Bottling

Company) also manage the H.R department with the coordination of the each

department.

Major Functions

Human Resource Planning and Forecasting

1.1. HUMAN RESOURCE PLANNING:HUMAN RESOURCE PLANNING:

Human Resource Planning Parallels the plans for the business as a whole. HRP

focuses on questions such as these:

i. What do the proposed business strategies imply with respect to human

resources?

ii. What kinds of internal and external constraints will (or do) we face?

iii. What are the implications for staffing, compensations practices, training and

H.R Helper

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development, and Management succession?

iv. What can be done in the short run (tactically) to prepare for long term

(strategic) needs?

Although HRP means different things to different people, general agreement exist

on its ultimate objective-namely the most effective use of scarce talent in the

interest of the worker and organization. Thus we may define HRP broadly as an

effort to anticipate future business and environmental demands on an

organization, and to provide qualified people to fulfill that business and satisfy

those demands. This general view suggests several specific. Interrelated activities

that together constitute an HRP System.

They include:

A talent inventory :

A talent inventory to assess current human resources (skills, abilities, and

potential) and to analyze how they are currently being used.

Human Resource Forecast:

Human resource forecast to predict future HR requirements (the number of

worker needed, the number expected to be available based on labor market

characteristics, the skills mix required, internal versus external labor supply)

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Action Plans :

Action plans to enlarge the pool of people qualified to fill the projected

vacancies through such actions as recruitment, selection, training, placement,

Transfer, promotion, development, and compensation.

Control and evaluation :

Control and evaluation to provide feedback on the overall effectiveness of

the human resource planning system by monitoring the degree of attainment of

HR objectives.

Human Resource Planning Process

Issues Analysis

Business needs

External Factors

Internal supply

Forecasting Requirements

Staffing levels

Staffing mix

(Qualitative)

Organization and job design

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Human Resource Forecasts:

The purpose of human resource forecasting is to estimate labor requirements

at some future time period. Such forecasts are two types.

The external and internal supply of labor and

The aggregate external and internal demand for labor

o EXTERNAL AND INTERNAL SUPPLY

Forecasting External Human Resource Supply

Recruitment and hiring new employees are essential activities for virtually all

firms, at least over the long run. Whether they are due to projected expansion of

operations or to normal workforce attribution, forays into the labor market are

Action Plans

Staffing authorizations

Recruitment

Promotions and transfers

Organizational changes

Training and development

Compensation and benefits

Labor relations

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necessary.

Managers in (PEPSI) Naubahar Bottling Company pay especially close attention

to forecasts of HR supply.

Forecasting Internal Human Resource Supply

A reasonable starting point for projecting a firm’s future supply of labor is its current supply of labor. Perhaps the simplest type of internal supply forecast is the succession plan, a concept that has been discussed in the planning literature for over 25 years. Succession plans may be developed for management employees, non management employees, or both. The process for developing such a plan includes setting planning horizon, identifying replacement candidates for each key position, assessing current performance and readiness for promotion, identifying career development needs, and integrating the career goals of individuals with company goals.

JOB DESCRIPTION

Job description also provide on the basis of the designation. Job

description form also provides in the written form to the each department

according to the designation of the employees then each department provides

job description to their employees.

Here the pay professional should standardize and complete the job description

that were found to be lacking or missing during the initial audit and review.

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Job description will serve as and anchor for the pay professional .They will provide

a comprehensive understanding of the organization and will serve as the initial

basis for job evaluation.

A written statement of what the worker actually does how he or she does it and

what the job’s working conditions are

Section of a typical job description;

Job identification

Job summary

Responsibilities and duties

Authority of incumbent

Standards of performance

Working condition

Job specification

JOB IDIENTIFICATION;

Job title

FLSA status section

Preparation date

Prepared by

JOB SUMMARY;

Describe the general nature of the job

Lists the major function or activities

RESPONSIBILITIES AND DUTIES;

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A list of the job’s major responsibilities and duties defines limits of jobholder decision

making authority, direct supervision and budgetary limitation.

STANDARD OCCUPTIONAL CLASSIFICATION;

Classifies all workers into one of 23 major groups of jobs which are subdivided into further

96 minor groups of job and detailed occupations.

STANDARED OF PERFORMANCE AND WORKING CONDITION

Lists the standard the employees expected to achieve under each of the job description’s

main duties and responsibilities.

Job description use for:

New position

For promotion

Recruitment

Transfers

Performance Management

Career Planning

Staff Planning

Training and Development

Steps in the Job Description Process

Determine Method of collecting Data

Design the Questionnaire

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JOB SPECIFICATION

Specification for trained personnel

Specification for untrained personnel

Specification based on judgment

Identify the Appropriate incumbent

Conduct the InterviewWrite the Draft process or Results

Review and Rewrite

Obtain Approval of Incumbent and supervisor

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Specification based on statistical analysis

Recruitment and Selection ;

A. Recruitment as a Strategic Imperative:

Recruitment is a form of business competition. Just as corporations

complete to develop, manufacture, and market the best product or service, so

they must also complete to identify, attract, and hire the most qualified people.

Recruitment is a business and it is big business. It demands serious attention from

management, for any business strategy will falter without the talent to execute it.

Certainly, the range of recruitment needs is broad. A small manufacturer in a

well-populated rural area faces recruitment challenges that are far different from

those of a high technology firm operating in global markets.

B. The Employee Recruitment and Selection Process:

Specification of people/task

Requirements of jobs

Job analysis

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Specification of human resources

Requirements

A pool of qualified candidates

A smaller pool of qualified candidates

New Employees

Understanding of Company /

Departmental policies, procedures

Human Resource Planning

Recruitment

Initial Screening

Selection

Orientation

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And benefits

Optimal match of employee talents

With organizational needs

Competence to perform present or

Future Job requirements

Feedback regarding past and

Present job performance supervisor/

subordinate plans for the future

RECRUITMENT PROCEDURE IN

NAUBAHAR BOTTLING COMPANY

Major sources of potential job candidates are

Placement

Performance Appraisal

Training

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Newspaper Adds

Internal Search Advertisement

Employees Referrals (Permanent Employees of NBC)

Types of Recruitment

Permanent Recruitment (Minimum Requirement Intermediate)

Daily Wages (At least Metric)

Contract (Graduation and Master for one year)

The candidates are selected on the basis of

Interview by HR Manager

Interview by Factory Manager

Interview by Concerned Department Head

Final Interview by MD/Director

Check list for newly hire employees

N.B.C application form

Application (own hand written)

Original Resume

Attested copies of academic certificates

Four number of photographs (passport size)

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Salary evidence

Two reference with complete name, address, Designation and contact

number

Driving license of the employee

Interview evaluation form and test result

Training and Development

Training Need Assessment

A. Basic Model

It shows that in defining training needs we have to start by identifying and comparing

two levels of performance: the standard (desired, optimum, future, planned) performance level

(PS) and the current (existing real) performance (pc). The difference between these two levels

is the performance gap.

B. Defining the gap between current and desired performance

The identification of current performance starts by fact-finding, which consists of

collecting information indicative of performance, describing and measuring it. For example, the

plant utilization may be chosen and measured as global indicator of performance. The related

competence problems of production managers may be in areas of production scheduling and

control, maintenance management, quality improvement and purchasing. Factors other than the

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production managers’ competence (calling for non-training solutions) may include a shortage of foreign

exchange, the absence of any bonus systems for stimulating better utilization of plant, and so on.

C. Structure of the needs

In applying the approaches described above, it is useful to be able to refer to clear and generally

acceptable ways of structuring the training and development needs. This help to avoid confusion in what

is meant by needs, and endless debates on the differences between performance and competence, and

so on. In particular, it is useful to differentiate between the levels of organizational performance,

individual behavior and performance, and competence, this consist with the postulate that training must

be performance and result oriented.

Organizational performance

Individual behavior and performance

Competence

APPLICATION PROCESS

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Application

Form

Fill up and

Signature of

Department

Head

Transfer in

Attendance

&

Leave Register

Check by time office

availability of leaves

Submitted in

Time Office

Application Process

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Model of results oriented needs

assessment

Spotting organizational problems

Tracing problems to their main causes and areas

Recognizing individual (group) performance problem

Job analysis

Performance appraisal

Determining performance improvement needs

Separating Training from non training solutions

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COMPENSATION MANAGEMENT

Compensation

At a broad level, and organizational reward system includes any thing and employee

values and desires that an employer is able and willing to offer in exchange for employee

contribution.

More specifically, the reward system includes both financial and no financial Rewards.

Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of

employee benefits.

Compensation program also manage in the time office. Salaries are paid to the daily

wages, contract and permanent employees according to their designation. Salaries and plus

benefits also provide to the employees.

REWARD SYSTEM

1. Pension (60 years) 1. Petrol + Maintenance

2. Direct Payments (Salaries) 2. Protection Program

3. Bonus (Three Basic Pay Annually) 3. Effective Supervision

Training needs and solutions Non-Training needs and solutions

Financial Non Financial

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4. Accommodation

5. Utilities bills

6. Vehicles

SALARY

Salary of all the workers permanent and temporary (Daily Wages) is prepared in time

office with the help of attendance register. Salary of permanent employee is prepared at the

last of month and the salary of daily wages workers twice a month. The increment is made

when a worker complete one year in service. Following deductions are made for preparation of

salary. The increment is made when a worker complete one year in service. Following

deductions are made for preparation of salary.

Daily Wages Permanent

Basic (daily wages) Rs. 81

Basic Pay 66.7 % of gross pay

CLA- 1 Rs. 4

House Rent 40% of basic Pay

Salary Preparation

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CLA- ii Rs. 2

Convene Allowance Rs.3oo/-

CLA- iii Rs. 7

Other Allowances Rs.3oo/-

Special Excreta Rs. 7

EOBI Rs. 30/- (Deduct)

Adhock Relief Rs. 14

EOBI& ESSI 6% (Company)

PROBATION PERIOD:

In the Naubahar bottling company the probation period of new employee is three to six

months in the probation period employee work routine wise. There is no leave granted during

the probation period.

In the probation period employee efficiency and effectiveness has been check the

permanent recruitment depends on the efficiency and effectiveness of the employee. The

probation period is necessary for the newly hire employee it is the basis for permanent

employee if the probation period of the employee is satisfactory the employee will be hire

permanently if the probation is not satisfactory level then the employee will be dismiss.

Total Rs. 116

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During the probation period the salary will be given to the selected candidate the salary will

be start from the first month.

RENT OR RESIDENCE FACILITY:

Rent or resident facility is given by company to those employees who are from out of

station/town/city. And their rent is paid by company.

MEDICAL CARE:

The company provide the facility of Social security card to the employee both permanent

and daily wages. This card is issued by the Employee Social Security Institute (ESSI). With this card

an employee gets a lot of benefits with pay anything. The social security card is allotted to these

candidates whose pay is up to 5ooo/-. Following documents are required to achieve the social

security card.

Application to the factory manager

ID card of Employee

Detail of depended persons

Registration Card (ESSI)

Affidavit of Parents Form

Social Security Card

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Medical Fitness Form

ID Cars of Dependents Persons

TRANSPORTATION:

Transportation allowance is given to only permanent employees which is included in their

salary. The amount of conveyance allowance vary from job to job depend on status of job.

Transportation allowance is included in their salary in the name of CONVEYANCE ALLOWANCE.

CHANGES WITHIN THE ORGANIZATION

Promotion

Transfer

Demotion

1. Promotion

Promoted employees usually assume greater responsibility and authority in return for

higher pay, benefits, and privileges, psychologically, promotions help satisfy employees needs

for security, belonging, and personal growth. Promotions are important organizational

decisions that should receive the same careful attention as any other employment decision.

Promotion in NBC

An employee Promoted after three years services in NBC but only on permanent basis.

On the other hand if en employee has intermediate qualification and during the job he

complete his graduation he will be promote

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2. Transfer

Transfer function performs in NBC. There are two types of Transfer

Transfer with NOC

Transfer without NOC

Transfer With NOC

If an employee transfer from department to any other department NOC is necessary for

transfer. For example an employee transfer from production to shipping NOC is necessary for

transfer.

Transfer without NOC

An employee can transfer from sale department to sale department without NOC. For

example an employee transfer from Gujranwala to Gujarat in sale department NOC is not

necessary

2. Demotion

Employee demotions usually involve a cut in pay, status, privilege, or opportunity, they

occur infrequently since they tend to be accompanied by problems of employee apathy,

depression, and inefficiency that can undermine the morale of a work group. For these reasons,

many managers prefer to discharge or to move employees laterally rather than demote them.

SEPRATION

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1) Layoffs

2) Retirements(PENSION)

3) Resignations

1. Layoffs

How safe is my job? For many people that is the issue of the late 1990s. It is becoming

clear that corporate cutbacks were not oddity of the 1980s and 1990s, but rather are likely to

persist.

Involuntary layoffs are never pleasant, and management policies must consider the impacts on

those who leave, on those who stay, on the local community, and on the company

2. Retirements(PENSION)

For selected employees, early retirement is possible alternative to being laid off. Early

retirement programs take many forms, but typically they involve partial pay stretched over

several years, along with extended benefits. Early retirement programs are intended to provide

incentives to terminate; they are not intended to replace regular retirement benefits. Any

losses in pension resulting from early retirement are usually offset by attractive incentive

payments.

In NBC no early retirement is not possible pension are paid after retirement to those employees

who are more than 60 years of age.

3. Resignations

Resignation, or voluntary worker turnover, has been increasing steadily over the past 15 years,

particularly among white-collar and professional workers. Employees who resign should avoid

burning their bridges behind them, leaving anger and resentment

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In their wake; instead, they should leave gracefully and responsibly, stressing the value of their

experience in the company.

In NBC early resignation is possible who will resign from the company; he must deprive from

the benefits of the company.

LEAVE SYSTEM\\VACATION CRITERIALEAVE SYSTEM\\VACATION CRITERIA ::Like other multinational companies Naubahar Bottling Company (NBC) Allot to the

permanent staff different kind of leaves. Weekly rest day and other holidays declared by the

Government of Pakistan around the year enjoy every permanent employee of NBC. Except all

above leaves the company allotted the following holidays to the permanent workers.

Causal Leaves

When a permanent employee completes his probation period of three month (Extendable if

required) he has awarded ten (10) causal leaves which one can avail in any cause of emergency with full

pay. A worker can not avail all the leaves (Expect Special causes) at once he can maximum four (4) leaves

can avail at once.

Medical Leaves

Sixteen (16) Medical leaves are given to the permanent employee for the period of one year. A

Permanent employee can avail these leaves with half pay. If the employee goes on leave for more then 4

leaves then he would have to present the Medical certificate in which his disease and rest mentioned.

ANNUAL LEAVES

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When a permanent employee complete his one year in this company, He is eligible to

avail the fourteen (14) annual leaves for any visit purpose with his family with full pay. Mostly

these holidays are allotted to the workers in off season. If a worker did not avail these leave

Then it transfers it into his account. But only two year vacations are recorded and two year it did not

transfer to the previous balance.

Leaves Against Over Time

In Naubahar Bottling Company (NBC) at officer & supervision level did not pay against over

time. He can change his overtime to a leave. Every body can not do over time. Only those

persons those who are permitted by the department head.

CCRITERIARITERIA OFOF L LEAVEEAVE A APPLICATIONPPLICATION

Causal Leaves Medical Leave Annual Leaves Over time leave

Types of Leaves

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When a permanent employee wants to a leave he gets an application form from the time office.

First of all the time office staff checked that is there availability of leaves in his account, if yes

then the concern person marked the application that many leaves in his account. After that the

applicant fills up this application for and then signature from hiss concern head of the

department. After fill up this form submitted in the time office and the time office staff transfer

it in the attendance and leaves register according to their department.

OOVERVER T TIMEIME A APPLICATIONPPLICATION

To avail over time following process is completed by the applicant.

IINTIMATIONNTIMATION F FORMORM

First of all a intimation form is filled by the applicant and then he go to his manager for

sign that he is need to department for over time. After the signature of manager this for

is submitted in the time office.

OOVERVER TIMETIME/A/ALLOWANCELLOWANCE F FORMORM

Now after submitted the intimation form the applicant submit a form in the time office

and the time office person transfer this from application to the over time register in

which is against over time are recorded.

WEAKNESSES IN HR DEPARTMENT

1. Policies have been developed but not implement.

2. The employees did not promote soon that’s why employees leave the

factory.

3. New employee’s salary is more than old employees.

4. Lose the key employees because of the reference.

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5. One person handles all the recruitment procedure of the N.B.C which may

be burden for him.

6. HRM department in NBC is not working professionally .Only two to three

persons are handling all the work.

H.R.M functions are more but employees working in H.R.M Department are less.

OBSERVATINS AND SUGGESTIONSThere should be proper planning by:

Assessing current human resource standards & generating human resources inventory.

Assessing future human resources needs by organization’s strategies & future programs.

After assessing current capabilities of future needs a program should be developed to

have right person for the right job & at right time.

At the moment, HR department is itself facing staffing problem & it seems to be non

existent.

The selection process through which candidates pass is very slow & time consuming

pass is very slow and time consuming. Candidate have to sit day long waiting for

management approval to start test & then. There is service of interviews which have no

time table. It is generally three four days patience test & trouble some for candidates

from other cities or already doing jobs.

For the medical bills and small loan employees need to get managing director’s

approvals and then pass through a long procedure. It should be simplified. Department

heads should be authorized to approved loans and medical bills up to a certain amount.

Computer & job related aptitude test should also be made part of selection tests to have

better job personality fit.

Formal training is conducted but that is due to ISO department not with the

planning/efforts of HR department.

Performance appraisal has only once but it was a useless exercise because its results

were not used in future planning or changes. Performance appraisal should be

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conducted:

To know development & training needs of employees.

To get performance feed back.

Anticipate direction for future performance

To change/ compensation system.

There is not idea of planned career development in NBC. Career development can be in term of

job rotation, transfer & promotion. It improves the organization's ability to attract of retain

talented people, anticipating change & helping employees to learn new skills and improve

utilization of a personal abilities.

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Motivation is the willingness to exert high level of effort to reach organizational goals.

The general level of motivation in NBC employees is very low and they are dissatisfied with their

jobs and pay scales. Only best employee of the month program is implemented highlight

employees whose work performance is excellent.

There would be lobbies or affiliations in the organization. These should be canalized in

positive approach e.g. mentoring, communication link instead of source of conflicts.

Teams (functional, self-managed, cross functional, problem solving) should be to speed

decisions, increase performance, facilitate cooperation & improve employee morale.

There must be some channel to communicate employees

problem/suggestion/comments directly to top management e.g. suggestion box. These

suggestions should be discussed in quality control meetings.

No attitude surveyor any internal research has ever conducted by the HR department to get.

Employees in NBC are performing well but they have low level of motivation.

Absenteeism is controlled because total forty annual leaves are allowed but more important

reason it that employees feel self responsibility. However the alarming indicators are turnover

and job satisfaction. The organization is facing high turnover rate and employees are

dissatisfied with their jobs and pay scales. Experienced staff is leaving the organization or

searching for opportunities. With the kind attention and efforts of general manager & deputy

general manager, the situation is improving. Qualified & young people are joining the

organization. The pay scales of metric, intermediate & graduate employees are revised.

However much more is needed to do in this regard.

RECOMANDATIONS

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In PEPSI (NBC) Human Resource Department must expand the strength of its

employees

Assess current human resource standards & generate human resources

inventory.

Assess future human resources needs by organization’s strategies & future

programs.

To know development & training needs of employees.

Anticipate direction for future performance

Formal training conduct with the planning/efforts of HR department.

Perform all the functions of Human Resource Department more efficiently

and effectively.

GOLSSARYESSI: Employ Social Security Institute

EOBI: Employ Overage Benefits Institute

TIME OFFICE: Establishment department is under the human resource manager.

Time office of NBC is the part of establishment department. This office is lead by an

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office in charge under the guidance of factory manager (Head of Establishment

Department). The main purpose of this department (Time Office) is to keep record

of the entire employee that is working in the Naubahar Bottling Company (NBC)

BEVERAGE: Any liquid suitable for drinking

pepsi cola human resource management project

Documents