Indus Institute Of Higher

Year 2009

Sabro PVT LTD

Business Administration
Department
 Submitted
to
Ms. Zara Muneer

Year : 2009

Prepared
by
Ahmareen Abbas BBA-VII (Hons)
Sana Samad BBA-VIII (Hons)

Course
Salary & Compensation

Prepared
 AKNOWLEDGEMENT

I acknowledge with gratitude the good will,

great energy, and keen intelligence exhibited by
M Raza Ali and Muhammad Umer Irfan whose
advice throughout has been exceedingly wise,
and whose, support has been precious.
 TABLE OF CONTENTS

Introduction 1
Data Collection Method 2
Limitation 2
Mission Statement 2
Quality Policy 2
Organizational Structure 3
Human Resource Department 3
HUMAN RESOURCES INFORMATION SYSTEM 3
MISSION STATEMENT 3
VISION STATEMENT 3
HIERARCHY OF HR DEPARTMENT 4
ROLE AND FUNCTIONS OF HR DEPARTMENT IN SABRO 4
EMPLOYMENT CATEGORIES 5
HR INVENTORY 5
Recruitment & Selection 5
RECRUITMENT SOURCES 6
PERSONAL ASSESSMENT CRITERIA 8
Orientation 9
Training 10
Employee Development 12
Compensation & Benefits 13
JOB RELATED FEATURES 13
WAGES/SALARIES PLAN 13
WORKING HOURS & OVERTIME 14
DEDUCTION FROM WAGES/SALARIES 14
EQUAL EMPLOYMENT OPPORTUNITY ISSUES 15
PAY SCALE 15
EMPLOYEE/WORKMAN SCALE 15
EMPLOYEE BENEFITS 16
INCREMENT 17
OCCUPATIONAL HEALTH AND SAFETY 17
Performance Appraisals 18
PURPOSE AND USES 18
Confidential (Employee Appraisal Form) 19
Overall Rating System 21
PERFORMANCE MANAGEMENT SYSTEMS 22
IDENTIFYING & MEASURING EMPLOYEE PERFORMANCE 22
Recommendations 23
Conclusion 23
 EXECUTIVE SUMMARY
“To serve the society with fervor along with acting as a model for its uplift and to
contribute in the development and promotion of hi-tech in the country”

We consider ourselves fortunate to have got the opportunity to work on SABRO PVT
LTD PAKISTAN for our salary and compensation project. Sabro (Pvt.) Ltd. is a pioneer
heating ventilation and air-conditioning system (HVAC) company in Pakistan.

The history dates back to four decades of continuous achievements. It started in the year
1968, when a dream became a reality. Three Brothers laid the foundation for one of the
biggest Air-Conditioning Company in South East Asia. After forty years of continuous
efforts and hard work, Sabro stands tall in the field of HVAC.Sabro strongly believes in
self reliance.

Sabro is the first and the largest Pakistani HVAC original equipment manufacturer that is
exporting to Kuwait, Qatar, Bahrain, Oman, UAE, Sirlanka, Saudi Arabia, Kenya,

Sabro has been the market leader in areas of its activity, its primary role has been to
design, manufacture, supply, install and maintain the air conditioning systems. In offering
solutions to clients, they keep the required international standards in focus.

The three entrepreneurs of exemplary drive who had the pioneering vision, the technical
know-how, professional competence and a firm determination to manufacture air-
conditioning equipment in Pakistan . Built upon a legacy of innovation and commitment,
their market-leading products and solutions are striving to help people live comfortable,
healthy and productive lives.

In the following report the main focus is on the HR department of the company and its
functions especially compensation strategies has been discussed comprehensively, as our
major concern is with the salary and compensation policies and strategies of the
company. However, brief overview of other functions such as recruitment, orientation
training and development performance appraisal are also mentioned in the report.

While discussing the compensation polices of the company we focused on the pay scale,
increments, deductions, overtime payments ,others befits provided to the employees etc

Unfortunately, we did not have enough resources to do a report on the head office of the
company which is situated in Islamabad. That is the reason we selected Sabro’s Karachi
branch from where we get the knowledge of HR department which is actually exists in
Islamabad

It took us 1 month to complete this report. Although we had time constraint but we tried
our best to cover all the functions of HR department in this report.
Salary and Compensation

Introduction
The Sabro (S. A. Brothers (Pvt) Ltd) is an ISO-9001 certified air-conditioning manufacturing
company based at Islamabad, Pakistan, established in 1968. The three brothers sadiq, siddique
and Ashiq started it. They took Rs 500 loan and started a small workshop in Satellite Town 1
Rawalpindi which is today one of the leading organization in Pakistan.

The late sixties and early seventies trend of air-conditioning cinema buildings boosted the overall
sales of the air-conditioning industry. It was the superior management and the edge of technical
knowledge and the right products at the right time made Sabro successful, and technical
knowledge however helped them to make the required changes according to the customers need.
Today, Sabro is considered a pioneer and largest manufacturing organization in Pakistan. Sabro
officials are involved in achieving a new goal for their products to export. For the past three
years Sabro has been test exporting to the middle and central Asian countries.

Sabro group of companies is the biggest Air –conditioning manufacturer in Pakistan having
biggest product range in south East Asia. The company is enjoying the excellent credibility
among the Multinationals, Government, Corporations & private sector since 1968.The Company
possesses the capability of producing special, standard & nonstandard air conditioning units
ranging from domestic to industrial requirements. Sabro Technologies, a subsidiary of Sabro
group of companies, is engaged in manufacturing of Sheet Metal cutting dies; draw dies, moulds
and different kind of machines.

For the past three years Sabro has been testing exports to the middle and central Asian countries
and is directly facing the Japanese as well American competition. In Pakistan, “SABRO” is not
only a logo that has been the leader for the domestic competitor but it has been continuously
successful in irritating the foreign competition. The introduction of our Concordia Split type
series of air-conditioners in 1989 made Sabro visible to the general public. But it is very
luminous to the fact that Sabro brand name has been reliable, efficient and well known in
industrial air-conditioners for more than two decades.

It is a leader in split air-conditioners, air handling units, cold storage units, air cooled water
chillers, water cold water chillers, window unit, humidifier units, hot boiler units, air curtain
units, electric motors and geezers. Its more than 500 employees throughout the Pakistan are
active in the areas of designing, manufacturing, installing, repairing and marketing. Sabro Air-
Conditioning is at the top of the air conditioning corporations. They are active in 5 businesses,
varying from room air conditioners to domestic air conditioners (1.0 to 40 ton), and from remote
control device to software applications. Sabro are leader in cooling technologies for split air
conditioners, air handling units, cold storage units, air cooled water chillers, water cold water
chillers, window units, humidifier units, hot boilers, air curtain units, electric motors, geezers and
software products.

They have world-class solutions in cooling systems (room and central air-conditioners) for
personal and domestic uses where their investments in design and new materials are critical to
success. Sabro brand name is reliable, efficient and well known in industrial air-conditioner for
more than two decades.

Translated into figures, they produce over 3,000 air conditioners every year, and some 5,000
electric motors; and each year, their factories turn out is increasing rapidly. In Pakistan one in
five air conditioners, Sabro manufactured units are being installed.
Sabro Electric Lahore (Subsidiary)
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Mars Karachi (Grease and Sales Karachi)

Sabro Technologies Islamabad (Machinery design and Making)

Data Collection Method

2
Data can be collected through interviews, questionnaires, observations etc. Questionnaire was the
only tool that was used for the data collection in this research.

A questionnaire is a pre-formulated written set of questions to which respondents record their

answers, usually within rather closely defined alternatives. Questionnaires could be administered
personally, mailed to the respondents or electronically distributed. However in the process of
collecting the data for this report; the questionnaire was personally administered questionnaire. I
was able to collect all the completed responses within a short period of time. Any doubts that the
respondents might have on any question was clarified on the spot. We had the opportunity to
introduce the report topic and motivate the respondents to offer their frank answers.

Limitation
Researchers always strive to develop and implement a flawless study but the extraneous events
often place limitations on the project.

From our point of view, there is a major limitation in this study that stopped us to conduct the
research to the fullest extent. That limitation is time pressure. The time provided for this study
was too short that the data could not be collected according to need of the subject. The other
limitation is that management of the company is not very supportive and cooperative; the
relevant information provided by them is very limited. Apart from this, as the head office of the
company is situated in Islamabad so we are unable to visit it due to city limitations and all the
HR activities are controlled in Karachi from the main office as the HR dept of the company is in
Islamabad so all the information we get is just with the reference of head office.

Mission Statement
We at Sabro by will of Allah Almighty are on mission
To abide by Islamic rules & ways.
To fulfill our customer’s desire for quality products worth their price.
To support our employees through better career opportunity.
To sincerely back up our business alliances.
To provide highest possible return on shareholder’s investments.
To serve the society with fever, and act as model for its uplift.
To contribute in the development & promotion of Hi-technology in the country.

Quality Policy
We will strive to exceed our customer’s expectations through continues improvements in
quality of our product & services.

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Organizational Structure

CEO
3

FINANCE ENGINEERING

MARKETING HUMAN
RESOURCE

Human Resource Department

The human resource department in Sabro consists of two people at the moment. Mr Aitabar
Abbasi has been heading as Human Resource manager in Sabro for the last one-year and now
Mr.Kamran has also joined him as an assistant manager human resource. The importance of
human resource has been realized in the organization and a full fledge furnished office for the
human resource department is under construction. Also they are planning to recruit more people
to increase their Hr inventory.

HUMAN RESOURCES INFORMATION SYSTEM

During the present year a new Human Resource Information System is in process of
implementation to support the running of Human Resource Function. The system is built around
a central comprehensive database of all employees, which is linked to all areas of Human
Resource Management and assists the HR in its smooth functioning.

MISSION STATEMENT
We provide quality HR services to attract, develop, motivate and retain a diverse workforce
within a supportive work environment. We do this with an emphasis on customer service based
on consultation and communication with the campus community.

VISION STATEMENT
The Human Resources ensures a diverse, qualified, healthy, and highly motivated workforce
focused on achieving the critical outcomes, through the development and administration of cost-
effective and results-oriented human resource policies, services, and practices.

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HIERARCHY OF HR DEPARTMENT

GENERAL MANAGER
4
SECRETARY

ADMINISTRATION HUMAN HUMAN RESOURCES

RESOURCE
DEVELOPMENT

ROLE AND FUNCTIONS OF HR DEPARTMENT IN SABRO

The role of human resource department in Sabro plays the following roles.

 Policy initiation and formulation.

 Supply of manpower.
 Testing job applications
 Recruitment and selection.
 Performance appraisal.
 Compensation.
 Carrier development.
 Maintaining employee record.
 Health and Safety (health programs, safety programs)
 Training and Development (coaching, performance appraisal, post appraisal counseling,
job rotation, understudies, special broadening assignments, feedback)
 Advice (on personnel policy, labor agreement, needs and welfare of company and
employees).
 Control (monitoring performance and conformance of other departments to personnel
policy, procedures and practices).
 Transfer, Promotion, Layoff (checking conformity of skills with new department in case
of transfer).
 Benefits and Services (pensions, insurance programs, sick leave pay plans, loan funds,
social programs, recreational programs).
 Personnel Information Systems (HR planning, skills inventories, employee benefits
analysis and productivity studies).
 Personnel and Behavioral Research (improving worker productivity and also increasing
the quality of working life, employee attitudes and motivation, predicting success in
management and organizational relationships)
Under Consideration.
 Compensation Administration (designing and installing job evaluation program, pay
structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and
salary surveys of the labor market).

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NOTE: Some of the functions which are written above are under consideration by the
human resource department are planning their implementation.

EMPLOYMENT CATEGORIES
Permanent Employee: 5
A permanent employee is one who is given with appointment letter of S.a Brothers Pvt ltd &
whose job is expected to continue for a period of more than 9 Months.

Contractor Employee:
A contract employee is one who is appointed through the contractor of S.A.Brothers Pvt ltd,
given with an appointment letter of contractor.

Contracts or Seasonal Employee:

A contract employee is one whose length of services is expected to continue less than 9 months.

Probationer:
Any employee whether he is permanent or contractor’s employee will remain on probation of six
months. Until the completion of his probation, he will be considered as Probationer.

Employment of relatives:
Employment of close relatives, i.e. Son, Uncle , Father , First Cousins is strictly prohibited

HR INVENTORY
Number of employees in the Karachi branch 325
Number of permanent employees 225
Number of Contract employees 100

Recruitment & Selection

Planning The Recruitment Process
The human resource department plans the recruitment process. It is wholly their responsibility to
plan the recruitment process.

Decisions On Vacancies
The department in which the human resource is required requests for the increase in their
inventory to the human resource department. Before deciding on the existence of a vacancy,
Human resource department checks whether there is a need for the work to be carried out at all
or whether it can be incorporated into an existing employee’s job. In case an external source is
needed, HR department then checks whether it should be a permanent, full-time employee or
whether it should be a contractual one.

Working Out The Sort Of Person Required

The human resource management and the concerned department head then list the duties,
responsibilities, authority and relationships that the job involves. They decide what qualifications
are needed, what type and length of experience are required, and what personal attributes are
important. On this basis they then draw up an up-to-date job description and person specification
and proceed to forecast how soon the person is expected to be competent, what training they are
prepared to give and when the start date of the job should be.

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RECRUITMENT SOURCES:
Internal Vs External Sources
Internal recruitment is currently the trend at SABRO as it is still in its infancy but once all
vacancies are filled, the organization will switch over to external sources. The philosophy behind
internal recruitment sources is that a sample of applicants are generated who are well known to 6
the firm, these applicants are relatively knowledgeable about the company’s vacancies which
minimizes the possibility of inflated expectations about the job and above all, it is faster to fill
vacancies internally and also an inexpensive process.

Direct Applicants And Referrals

Direct applicants are people who apply for a vacancy without prompting from the organization.
Referrals are people who are prompted to apply by someone within the organization. Sabro uses
both sources of recruits, direct applications are more entertained and the referrals work in the
case of lower level jobs, which mostly comprises of factory workers.

Advertisements In Newspapers
HR department gives BLIND BOX Ads in leading newspapers. Sabro management believes that
these generate less desirable recruits and at a greater expense. Two points that Hr manager
especially notes in designing the job advertisements:

What to say:
The organization tries its utmost to give enough information to persons reading an ad to evaluate
the job and its requirements, allowing them to make a well-informed judgment regarding their
qualifications. Sometimes this means running longer advertisements, which costs more.
However, these additional costs are evaluated against the costs of processing a huge number of
applicants who are not reasonably qualified or who would not find the job acceptable once they
learn more about it. These large advertisements are given mostly in the executive jobs.

To whom to say it:

Right now they are involved in general advertising but are trying to reach specific parts of the
overall labor market. In some cases they need to target the specific labor force due to the specific
requirements of the job.

INTERNAL RECRUITMENT
Finding Out The Right Persons:
The HR management then speculates whether they are likely to find the qualities, qualifications
and experience that they are seeking in one person. If so, research is carried out on the kind of
pay and benefits package to offer. They do this through monitoring advertisements, referring to
salary surveys and networking with other employers in their area and sector.

Planning On How To Find Them:

The HR management gives priority to its own employees even in case of a negative assessment.
They first advertise the post internally, both as a courtesy to staff and because they may pass the
information on to any interested friends and relations. Word of mouth is also a valuable
recruitment method for them and they draw on all appropriate contacts they have.

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EXTERNAL RECRUITMENT
Decision On Whether To Advertise:
Once the HR management decides that there is a need to advertise, they pinpoint the part of the
press that they need to contact. Since most of the posts are of a specialist nature, they intend on
advertising on Sunday in the Daily “Jung” and the “Dawn”. 7

Writing The Advertisement:

Their job advertisements are very confidential and they only mention the PO Box #. The
company name is kept under confidentiality to avoid any sort of referrals, which can affect their
choice of the applicant. Small ads are given for lower or small level jobs and detailed and large
ads are given for high level or large jobs.

All their adverts for jobs mention the following clearly but succinctly:

 The qualification and experience required including hands-on experience, internal and
external experience.
 The personal qualities sought including age, gender etc.
 Where the job is based.
 What form of reply is demanded (CV or request for an application form).

DRAWING UP A SHORT LIST

Then the HR management decides on the length of the short-list, which includes five or six
people at the most. It also varies from job to job but most of the time 5 or 6 people are short-
listed. Following the advert they need help to sift through the applications. In case they run short
of time, they get the help of other staff, supervisors and managers in the organization. Apart from
the question of time, they do this to get second opinions. They look out for the following when
reading an application:

 How well-matched is the candidate to the requirements

 The quality of presentation

INTERVIEWING POTENTIAL CANDIDATES

The candidates that are screened out are then called for interviews. A date and a time are arranged and the
candidate appears for the interview. The questions of this interview are designed especially for
gauging the personality and ability of the candidate. At time the interview is structured and at
times it is unstructured and it also depends on the nature of the job, which is under consideration.
The department heads mostly conducts technical interviews, while the Hr management in Sabro
mostly carries the non-technical interviews. Most of the times both are present at the time of the
interview.

THE SCREENING PROCESS

The results are screened by a set of panelists in order to minimize chances of error in selecting
the candidates. The HR management sometimes keeps a small number of candidates in reserve.

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PERSONAL ASSESSMENT CRITERIA:

Scale Office Staff Qualification Experience

1 Office Boy, Peon, S.Guard, Literate Preferable

8
2 Drivers Matric/ FA Driving License + 2 years + Test

3 Store Keeper, purchaser FA 2 years or Matric/FA + 2/1 year

Telephone operator experience of Sabro in relevant
field+ Test

4 Cashier, Accounts /Sales/ Graduation 3 years or Matric/ FA + 4/ 2 year

Marketing Assistant, experience in relevant field+ Test

5 Accountant, C.S Officer, Graduation 5years or FA + 5 years of Sabro in

Excise Officer, Store Officer relevant field + Test

6 Admin officer, Accounts B.Com/BSc 5years or FA + 5 years of Sabro in

Officer relevant field + Test

7 Trainee Executive, Executive, Post Graduate Fresh

Secretary, HRO ,ICMA,CA Inter

8 Executive, Exe Finance, Exe Post Graduate 3 years or 1 year in Sabro

Sales, Exe Marketing ,ICMA,CA Inter

9 Manager Post Graduate 7 years or 5 years in Sabro as

,ICMA,CA Inter Executive + Test

10 AVP Post Graduate 5 Years in Sabro as Manager( Only

,ICMA,CA Inter promotional post)

Scale Factory Staff Qualification Experience

1 Helper (Technical) Matric Fresh

2 Semi Skilled worker/ Matric 3 Years in Sabro+ Test by Promotion

Committee

3 Skilled Worker/ Technical diploma Fresh or Matric + 5 years in Sabro+

Mechanic/Welder Test by promotion committee

4 Junior Supervisor /.Q. Technical diploma/ 2 years or Matric+7 years in

Inspector Sabro+Test or DAE +2 year in Sabro
Graduation

5 Design Supervisor/Associate DAE/Technical DAE Fresh/5 years or Matric +10

Engineer/J. sales Engineer diploma years in Sabro + Test

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Supervisor

6 Tech Supervisor/Web DAE/Technical 7 years or Matric +12 years in Sabro

Developer/Purchase diploma + Test
officer/Foreman/Production
coordinator 9

7 Trainee Engineer/Gen. BSc/BE/MCS/BCS Fresh

Foreman

8 Engineer/Software MCS/BCS/BSc/BE/DA 3 Years or Trainee Eng+ 1 years in

Developer E Sabro / DAE + 6 Years in Sabro+Test

9 Manager/Mould Designer BSc/BE/MSC Eng 7 years or 5 years in Sabro as

Executive + Test or DAE + 15 years
in Sabro

10 AVP BSc/BE/MSC Eng 5 years as Manager in Sabro(only

promotional post)

Note
All promotions are subject to the vacant post & minimum criteria as mentioned in the
above table.
Promotion test will be designed by Promotion committee keeping in view the skill required for
the post.
Orientation
Introducing The Recruit To The Organization And The Department:
The newcomer is informed of housekeeping arrangements and provided with the employee
handbook. He/she is given copies of the necessary documentation, the organization chart and job
description etc. The department head as well as the human resource manager introduces the new
recruit to the department and team in which he/she will be working. There is an informal tea for
the new recruit, which is attended by the higher management including the Executive vice
president and vice presidents.

Emphasising The Importance Of Organization Policies And Procedures:

New employees are made aware at an early stage of policies and regulations based on legislation.
Other procedures based on national standards and other schemes are also introduced.

Planning A Balanced Introduction To The Work:

No matter how the training is done, a mix of explanation, observation, practice and
feedback is continuously dispersed. Information overload is avoided. The new employee is
straightaway given real work to do to avoid boredom and to give early opportunities for
achievement. The Hr manager does all these as he has a counseling session with the new recruit.

Clarifying Performance Standards:

The performance levels required are made clear from the outset since HR management is aware
of the fact that employees cannot be expected to meet standards of which they are unaware. So
the Hr manager explains some of the standards and some are explained by the department head

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and beside most of the things are written in the job description, which is given to the employee at
the orientation day

Training
10
EMPLOYEES TRAINING
Training is the organized procedure by which people learn knowledge and/or skills for a definite
purpose. Almost every employee hired by an organization will require some training in his or her
job. Some training programs may be more extensive than others, but all require the trainer to
have identified content and subject matter needed in the training and tasks to be performed on the
job to ensure that the training will prepare individuals to perform the job effectively. Many firms
provide new employees with copies of the descriptions and specifications for the jobs to which
they have been assigned. This aids in orienting them and acquainting them with what they are
expected to do.

DESIGNING EFFECTIVE TRAINING SYSTEMS

Sabro’s management uses an “Instructional design process” (which refers to a systematic
approach for developing training programs). It consists of the following:

CONDUCTING NEEDS ASSESSMENT

There are different pressure points that suggest whether training is necessary such as
performance problems, new technology, job redesign, new legislation, new services or
employees’ lack of basic skills. Some of the trainings are mandatory for every department. For
example they have fire-fighting training for every department and there are fire-fighting teams
consisting of mostly young guys who are trained for the fire fighting.

CREATING A LEARNING ENVIRONMENT

For employees to acquire knowledge and skills in the training program and apply this
information to their jobs, the training program’s applied by the Hr manager includes specific
learning principles. Following are some of the principles followed by Sabro

Employees Need To Know Why They Should Learn

Sabro’s HR management realizes that employees learn best when they understand the purpose
and expected outcome of training activities. They explain to the trainers why the training is
needed and why it will be better for them to take the training.

Employees Use Their Own Experiences As A Basis For Learning:

Since employees are more likely to learn when the training is linked to their current job
experiences and tasks, hence they are provided an environment that is identical to the
environment they will be working in.

Employees Need To Have Opportunities To Practice:

Practice involves having the employee demonstrate the knowledge, skill or behavior emphasized
in the training objectives under the conditions and performance standards specified by the
objective. For example for the fire fighting training they create a fake fire situation and
employees are given a chance to cope up in this sort of situation themselves.

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Employees Feedback:
Employees are given constant feed back so that they can remove their mistakes and come up to
the training needs. This feed back is not only given at the end of the training but it is also given
during the training to make them realize their mistakes and to improve the areas where training is
required.
11
TRAINING METHODS
Presentation Techniques
These involve traditional classroom instruction, distance learning and audiovisual techniques.
They are used ideally for presenting new facts, information, different philosophies and
alternative problem-solving solutions or processes. They consist of:

Classroom Instruction:
The trainer lectures a group. In many cases the lecture is supplemented with question-and-answer
periods and discussions. The instructor tries to build active participation, job-related examples,
and exercises into traditional classroom instruction so that trainees will learn and use the
information presented on their job. This type of training is done for mostly managerial level jobs.

Distance Leaning:
The Head Office to provide information about new services, policies or procedures as well as
skills training and expert lectures uses it. It involves two-way communication between people. It
includes audio conferencing, videoconferencing and document conferencing (this allows
employees to collaborate on a shared document via computers).

Audiovisual Techniques:
This is a common method used by Sabro that involves overheads, slides and video.
Video is the more popular instructional method. It is being used by the
organization for improving communication skills, interviewing skills and customer
service skills and for illustrating how procedures should be followed. It is usually
used in conjunction with lectures to show trainees’ real life experiences and
examples.

HANDS-ON TECHNIQUES
On-The-Job Training:
It is used for newly hired employees, upgrading the skills of experienced
employees when new technology is introduced; cross-training employees within a
department or work unit, and orienting transferred or promoted employees to their
new jobs. The basic philosophy of the HR management of Sabro is that employees
learn through observing peers or managers performing the job and trying to imitate
their behavior.

Off The Job Training:

It is mostly for the executive level employees and are not more than two to three
days.

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Employee Development
DEVELOPING HUMAN RESOURCES
The HR manager of Sabro ensures that employees have the necessary skills to perform current
and future jobs. Because of the new technology and the quality movement in this field, Sabro 12
believes in work performed by teams. Hence, managers and employees develop skills to be
successful in a team environment. Because many employees value work that is personally
rewarding and does not interfere with non-work activities, the HR management also helps
employees identify their work interests and goals and cope with issues such as balancing work
and family roles. This area of Sabro’s human resource management deals with:
 Ensuring that employees have the skills needed to perform their current job
 Preparing employees for future work roles
 Identifying employees’ work interests, goals and values and other career issues

FORMAL EDUCATION
Separate education programs are offered for supervisors, middle managers and executives.
Special programs for particular jobs are also offered. If a manger or a supervisor or employees at
even lower management are given a 50% loan from the company foe the education purposes.
Some times the education is fully supported by the company if it can enhance their working
skills. The company gives its entire loan from its own budget. They have made a policy this year
that they will take no loan from the bank for any purpose, so whatever loan they give they give it
from their own budget.

Job Rotation
It involves providing employees with a series of job assignments in various functional areas of
the company or movement among jobs in a single functional area or department. Management
does this to help employees gain an overall appreciation of the company’s goals, increase their
understanding of different company functions, develop a network of contacts, and improve their
problem-solving and decision-making skills. Although this activity is not that common but at
times it is practiced occasionally

TRANSFER
When an employee moves from one position to another position, whether inter- or intra-
departmental. Transfers fall into three categories:

Promotion
When a vacant position is filled by a current employee who moves from one position to another
position assigned to a higher classification level.

Lateral
When a vacant position is filled by a current employee who moves from one position to another
position assigned to the same classification level.

Interdepartmental Transfer
When a position is filled by an employee who transfers from one department to another.

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Compensation & Benifits

COMPENSATING HUMAN RESOURCES
Besides interesting work, pay and benefits are the most important incentives that companies can
offer employees in exchange for contributing to productivity, quality and customer service. Also, 13
pay and benefits are used to reward employees’ membership in the company and attract new
employees. The positive influence of new work designs, new technology, and the quality
movement on productivity can be damaged if employees are not satisfied with the level of pay
and benefits or believe pay and benefits are unfairly distributed.

JOB RELATED FEATURES

Job Analysis& Job Design:
The HR management at Sabro has not yet started the job analysis rather it is done by the quality
assurance department. The human resource department will be starting the job analysis in the

Job Evaluation:
The Hr management is not aware of the job evaluation although they have distributed the jobs in
several scales and made the compensation system on the bases of that scale system. They said
that job evaluation is properly being done by the quality assurance people and will be taken over
by the Hr department in the near future.

Job Description:
The quality assurance department also makes Job description but soon will be taken over by the
HR department.

Downward Communication:
For downward communication they use notice boards.

Inter Office Departments Communication:

For inter office communication they use Emails and letters.

News Letter:
They had newsletter called “Sabro Today” which has not been published for the last two
months.

WAGES/SALARIES PLAN
Wages and Salaries administration is one of the most important Managerial function, it deals
with all aspects of employee’s compensation. Wages/Salary is the remuneration paid to the
employees in return for their services.

It can save an organization cost involved with high turn over while attracting, retaining and
motivating capable and productive employees. It is a means of measuring the relative value of a
job to an establishment; with this objective the most highly valued jobs to receive the highest pay
and lowest values to receive the least. Such measurements can be used as a foundation for
determining and equitable wage/salary structure.

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The jobs are being evaluated on the basis of mental and physical efforts and accountability, that
is why the jobs are grouped in to grades according to measurable difference in leaves of duties
and responsibilities.

The Company has determined its Wages/Salaries structure to attract, retain and motivate quality
employee keeping in view the local market and financial commitment of the establishment. 14

Minimum Wages/Salary:
Amended schedule Section 3 of Ordinance 1969 rate of
Total minimum wages for unskilled worker (Inclusive of all Colas)
With.effect.from 1st July 2008 Rs.6000.00

WORKING HOURS & OVERTIME

Normal working hours will be 9 hr a day (including 1 hr break) & 48 hr in a week. Any work
performed by an employee up to scale 4 in excess of normal 48 working hours, will be
considered as overtime. Minimum pay for the drivers will be Rs.2900 & they will be paid single
over time i.e. according to the basic salary. Any employee may be required to stay at over time
when necessary even on holidays, on written permission of department head.

The rate of overtime payment will be on pro rata basis according to basic salary of concerned
employee
i.e.
Basic Salary/30*2.

DEDUCTION FROM WAGES/SALARIES:

The following deductions from Wages/Salaries will be permissible:
 Fine
 Deduction for absence from duty
 Deduction for damages to all loss of goods entrusted to the employee for custody.
 For the loss of money for which he is required to account due to his neglect or default.
 Deduction for recovery of advance or for adjustment of over payment of wages.
 Deduction under the order of Court of Law.
If the employee has finished all of his/her annual leave but wishes to take days off, with
prior approval from PM/DD, the employee can use leave without pay and his/her salary
will be deducted based on the number of days off and salary level. Earnings per day will be
computed from monthly salary based on the number of monthly working days of 22. The
formula to calculate earnings during the month is as follows:
(MS:/22) * DW = ES

Where:

ES : Salary earned during the month

MS : Full monthly salary

DW : Number of days worked

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Equal Employment Opportunity Issues

Current Issues Regarding And Equal Employment Opportunity:
Based on:
Race 15
Gender
Nationality
Religion
Disability
Age
Sabro has one of the major diversity issues, which is gender discrimination as there are no
female employees in Sabro, which is a bit surprising for such a big organization. Secondly they
also do not entertain the disable people and the third thing, which we noted, was that the average
age limit in the organization was 20-30 for the worker class.

PAY SCALE:
A scale ranging from 1 to 10 is designed, which is primarily meant for giving benefits to the
employees.

EMPLOYEE/WORKMAN SCALE
Scale No.1 To 4(Workers To Junior Supervisors):
Any person doing skilled, un-skilled, clerical or manual work falls in these scales. It is important
that these employees/workmen must qualify the job criterion given in the Selection & promotion
schedule/Annexure pertaining to their respective categories.

Scale No. 5 & 6 (Supervisors & Foreman):

Any person falling in scales 5 & 6 will be doing supervisory job and under whom a set number
of employees/workmen perform their job. He is charged with the responsibility of supervising
their work and has administrative control over them. He shall be responsible for the jobs
assigned to him and he is empowered to do the following:

i. To make the schedule of work

ii. To monitor the work
iii. To recommend leave for employees/workmen.
iv. To make appraisals of the performance of workmen/employees.

He should qualify the Personnel Assessment Criteria given in the schedule.

Being in supervisory category he is not entitled for overtime or any specific job allowance
because while determining his salary, the extra time was considered.

Scale No.7 (Trainee Executives / Trainee Engineer):

Executive means qualified person proficient in technical skill and having ability and motivation
to execute plans given by the Management. He has to achieve set targets of his section. He is
required to co-ordinate with other section/department.
An executive undergoing training for 1 year will be Executive trainee. After successful training
if there is vacancy he will be offered regular post.
He should qualify the Personnel Assessment Criteria given in the schedule.
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He is not entitled to any overtime. However will be paid stipend during training.

Scale No.8 To 9(Executive/Managers):

Manager is the in charge of Wing/Division/Department/Factory and is empowered to administer
and manage affairs or his segment. He is responsible for setting up of job objectives for his
segment. He is responsible to the Senior Management for the achievement of objectives and 16
smooth functioning of his segment or as job assigned to him.

Functions Of A Manager Include:

i. To determine program, objective, policies and plan.

ii. To maintain well-designed organization that produce operating results and
development of human resources.
iii. To determine manpower requirement in advance.
iv. To have communication with subordinate and understand.
v. To appraise his subordinate objectively and growth potential
vi. To identify potential employee and indicate their best utilization.
vii. To schedule in advance plan best worker for best job and their replacement.
viii. To keep his Organization well staffed.

He should qualify the Personnel Assessment Criteria given in the schedule. He is not entitled for
overtime or any specific job allowance.

Scale No.10 (Avp):

AVP is the controlling head in one or more departments for the purpose of Administration. He is
responsible to VP/EVP/President for the overall affairs of the concerned departments.

Employee/Workman Scale
Scale No.1 to 4(Workers to junior Supervisors)
Any person doing skilled, un-skilled, clerical or manual work falls in these scales. It is important
that these employees/workmen must qualify the job criterion given in the Selection & promotion
schedule/Annexure pertaining to their respective categories.

EMPLOYEE BENEFITS
These include:
Medical Facility
Death insurance
Disability Insurance
Pension
Pick and Drop Service
Medical Allowance
House rent allowance
Uniform allowance
Eid allowance

Health Insurance:
Every employee of the company is health insured as per labor laws of Pakistan. Managerial level
employees are given the medical allowance. The rest have the free medical check up facility.
They are issued a medical card, which authorizes them for a free medical checkup in Omer Ali
nursing home, and their authorized doctor is Dr. Qamar Ali.

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Death Insurance:
All the employees are insured in case of death. They have a self-payment system in which the
employee is paid cash equal to the insurance rate, which, he is supposed to get.

Disability Insurance:
During work disability is insured from the employer’s side. Any permanent injury is insured 17
along with the medical treatment, which a person gets.

Pension:
Pension is given to all the permanent employees and only those who have completed ten years of
their service are eligible for pension.

Pick and Drop Service:

Buses for the lower factory staff and Car and Carries for the managerial level staff of office and
factory.

Medical Allowance:
Medical allowance is given from grade seven and onward. The range is shown in the pay scale
chart.

House Rent:
It is paid to all the employees from scale 1 to scale 12.
Uniform Allowance:
It is also given to every employee from scale 1 to scale 12. . Amounts are mentioned in the pay
scale chart.

Eid allowance:
It is given to every employee in accordance with the base salary of the employees. Mostly given
on Eid-Ul- Fitar.

INCREMENT
Annual increment will be paid in the month of July each year according to pay scale chart.
Minimum length of service for entitlement of Increment will be one year. Merit increment
cannot be claim as right, however these will be at the sole discretion of management, on the basis
of employee’s performance after probation period.

OCCUPATIONAL HEALTH AND SAFETY

Purpose:
To set out the Sabro’s commitment to a safe and healthy work environment and to outline
responsibilities for pro-actively managing risks and preventing accidents.

Responsibilities:
The President has ultimate accountability for providing and maintaining a safe and healthy work
environment. Managers, Foramen, supervisors of staff and others in positions of responsibility
share the accountability for managing health and safety within their areas of control as an
integral feature of their day-to day activities.

Managers & Foremen

They will take all practicable steps to provide and maintain a safe and healthy work environment
by:
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establishing and implementing appropriate standards and procedures;

establishing and insisting upon safe methods, safe equipment, proper materials, and safe
practices at all times;
providing effective training for staff as appropriate and;
Complying with current Sabro’s policy, legislative requirements and relevant standards. 18

Supervisors / In charge
They are responsible for the health and safety of staff members in the same way that they are
responsible for quality, efficiency and maintenance. Safety will take precedence over short cuts
and expediency at all times.

Staff Members
They are responsible for observing safe work practices, following Sabro procedures and
complying with relevant work standards and statutory obligations. Staff will be encouraged to
participate in health and safety forums.

Performance Appraisals
PERFORMANCE APPRAISALS
The HR management has set clear-cut standards of performance for every job. The performance
appraisal designed by the HR management involves getting information about how well each
employee is performing his/her job in order to reward those who are effective, improve the
performance of those who are ineffective, or provide a written justification for why the poor
performer should be disciplined. Their performance is base on qualification and experience.
Their performance appraisal formula is

Desierd – Actual Performance

The immediate boss checks the performance of the employees. Last year the performance
evaluation of the higher management started because it never existed before that. Now days Hr
management is planning to start the 360degree appraisal system for the higher management,
which will be most probably starting in the next month. They had an annual appraisal system but
now they are thinking of starting a monthly performance evaluation system.

PURPOSE AND USES

Employee Performance:
Appraisals are an aid to creating and maintaining a satisfactory level of performance by
employees on their present jobs.

Employee Development:
The appraisal may highlight needs and opportunities for growth and development of the person.
Growth may be accomplished by self-study, formal training courses, or job-related activities,
such as special broadening assignments and job rotation. It should be clear that training and
development is needed or not.

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Confidential
S.A.Brothers (Pvt) Ltd
Employee Appraisal Form for Special
Increments/Confirmation/Transfer/Promotion 19

For Officers/Executives/Managers/AVP
________________________________________________
Type of Review
Mid Probation Probation Annual Other
Name of Employee___________________Designation________________
Department_________________________Date of Joining_____________
Qualification________________________Present Salary______________
Rate of Increment Rs._________________Pay Scale # ________________
Date of last increase__________________& Amount_________________

NOTE: Please evaluate the employee on the job being performed during above mentioned period. For each factor, clearly express your
judgment.

Keys of Grading
EP= Exceptional Performance AA=Above Average
AV=Average BA= Below Average

Part 1: Personality
S# Trait Model Description EP AA AV BA Remarks

1 BEARING Well dress, create excellent impression

2 BEHAVIOR Courteous & Helpful

3 HEALTH Energetic, Vigor & Very rare illness.

4 CONFIDANCE Exceptionally confident & Resolute

&WILLPOWER
5 LEADERSHIP Organizes & uses staff & other resources
QUALITY effectively
6 INTELLIGENCE Exceptionally bright, Excellent Comprehension

7 UNDERSTANDING Considerate & Cooperative

8 ABILITY TO PRODU Full of Ideas, Always come up with ingenious

CE PRODUCTIVE IDEAS solutions to problems
9 Social Habits Social Mannerism i.e. Conversation, eating &
hygienic

Narrative Comments
_____________________________________________________________________________________________
_____________________________________________________________________________________________

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Part 2: Nature

S# Trait Model Description EP AA AV BA Remarks

1 HONESTY Honest & Straightforward

2 TRUSTWORTHY Trust & reliability in work &

other matter 20
3 MOTIVATION To motivate staff to achieve
objectives
4 INITIATIVE & DRIVE Bold & Dynamic

5 EMOTIONAL STABILITY Mature, Balanced

Narrative Comments
_________________________________________________________________________________

Part 3 Job & Performance

S# Trait Model Description EP AA AV BA Remarks

1 PUNCTUALITY Always on time & very rare takes

leaves
2 DICIPLINE Observe rules & regulations very
strictly

3 JOB KNOWLEDGE Have sound knowledge of relevant job

4 QUALITY OF WORK Neatness & Accuracy of the individual

5 QUANTITY OF WORK Ability to meet performance required

by maintaining standards.
6 COMMUNICATIONS SKILLS Power of expression in written & oral

7 ACHIEVEMENTS AGAINST Always accomplishes assigned goals in

TARGETS time
8 DEVELOPMENT OF SECOND To groom & develop second line in his
LINE area of work.
9 DEPAENDABILITY Always prepare to take on
responsibility even in difficulties
10 SECRECY Protection of Confiden-
tial information
11 COOPERATION Always cooperative to get work done
smoothly
12 TROUBLE SHOOTER Ability to locate & eliminate the
sources of trouble in his area.
13 DECISION MAKING ABILITY Very logical & decisive.

14 ANALYTICAL ABILITY Pick out essentials without wasting

time on irrelevant matters
15 ECONOMIC UTILIZATION OF Produce Optimal results through
RESOURCES economic utilization of resources.
16 TEAM WORK Collective Efforts

Narrative Comments
_________________________________________________________________________________

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Overall Rating System

Overall performance rating is linked with total points earned by the employee on the basis of evaluation i.e.

Performance %age of Grading Grading 21

Marking points
Exceptional Performance 80% to 100% A+ 4.0
Above Average 70% to 79% A 3.0
Average 60% to 69% B 2.5
Below Average 50% to 59% C 2.0

TOTAL MARKS = 120

MARKS OBTAINED = ____

Note: Overall grading to be calculated as below

Marks Obtained/Total Marks* 100.= %

Overall Grading

A+ A B C

Remarks
_______________________________________________________________
_______________________________________________________________

Recommendations
_______________________________________________________________
_______________________________________________________________

Department Head ________________

Remarks
_______________________________________________________________
_______________________________________________________________

VP Admin & Finance Approved Not Approved

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Performance Management Systems

All employers’ want employees who perform their jobs well. However an effective performance
management system increases the likelihood that such performance will occur. At SABRO, a
performance management system consists of the processes used to identify, encourage, measure, 22
evaluate, improve, and reward employees’ performance. As identified by the HR professionals, a
performance management system should do the following:

Provide information to employees about their performance.

Clarify what the organization expects.
Identify development needs.
Document performance for personnel records.

IDENTIFYING & MEASURING EMPLOYEE PERFORMANCE

Performance is essentially what an employee does or does not do. Employee performance in
Sabro includes the following elements.

Quality of output.
Quantity of output.
Timeliness of output.
Presence at work.
Cooperativeness.
Customer satisfaction.

Other dimensions of performance beyond these general ones apply to various jobs. Specific job
criteria or dimensions of job performance identify the most important elements in a given job.
Mostly jobs in Sabro have more than one job criterion or dimension. Often a given individual
might demonstrate better performance on some job criteria than others. Also, some criteria might
be more important than other to the organization. Weights are used to show the relative
importance of several job criteria in one job. The example of SABRO weighting system is given
below

Employee development 35%

Revenue Increase 20%
Cost Control 15%
Customer Satisfaction 30%
Total Management Performance 100%

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Recommandations
1. We also observed that other than basic salary, the Compensation Packages are not good
enough to attract and retain the employees. This thing results in decreasing the motivation
level of the employees and the effect is low productivity demonstration from the employees’ 23
side. In order to overcome this situation, the Human Resource Department of Ad Creator
Advertising should try making the company as attractive as possible for the employees by
offering incentives and compensation packages. So that skilled employees don’t leave the
company in order to join some other companies.
2. One main thing which we noticed there is the unequal distribution of work. Some
workers have to work hard till late hours with every low extra reward. Some serious steps
should be taken by the management in order to allocate the work properly.
3 The accounts department is managing and generating its financial statements with the help of
Microsoft office. We would like to recommend that some accounting information systems
should be installed to increase the productivity of accounts department.
4. With the arrival of new technology, employees should be educated with the new
technology in their field. To make them aware of the new technology, employees should be
given opportunity to participate in seminars and lectures and the training program is needed
to be more efficient.

Conclusion
The late sixties and early seventies trend of air-conditioning cinema buildings boosted the overall
sales of the air-conditioning industry. It was the superior management and the edge of technical
knowledge and the right products at the right time made Sabro successful, and technical
knowledge however helped them to make the required changes according to the customers need.
Today, Sabro is considered a pioneer and largest manufacturing organization in Pakistan. Sabro
officials are involved in achieving a new goal for their products to export. For the past three
years Sabro has been test exporting to the middle and central Asian countries.

Human resource department plays vital role in the organization. The HR department of Sabro is
the foundation of the organization as it is meant to take care of the employee, employees who are
the biggest asset an organization has. The HR team hires highly qualified and competent
individuals through a screening process HRM specialists initially determine the number and type
of employees that a business will need over its first few years of operation. They are then
responsible for planning, selecting, staffing, organizing the human resources of an organization.

Sabro is now a healthy organization. Their performance during the last few years have been
exceptional, the reason being its focus excels toward excellent and performance. HR department
in Sabro holds an important position as their consumer depends on the air of their splits.

A large number of employees can work accordingly unless the differences are solved and needs
are well understood who else can better take care of it better than HR department of an
organization. HR department in Sabro successfully fulfill the standard requirements but they
need to pay attention towards some aspects which we recommended, which will helpful for them
in improving their performance and for the grooming of the company.

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