1/31/2018 Servis Industry Limited

HR PERFORMANCES

GLOBAL INSTITUTE OF LAHORE

SUBMITTED BY:

SYEDA SAMEEN RAMZAN

SYEDA IRUM SAKINA
SYEDA UMA LAILA
AYESHA SAFDAR

SUBMITTED TO:

MISS ZUNAIRA
Introduction of Servis Group
Service Industries Limited (SIL) is a public limited company listed on the stock exchanges of
Pakistan and its head office is located in Lahore. It has annual revenues of about PKR 18 billion
($170 Million) and is the largest manufacturer of footwear, tyres & tubes for two-wheelers, and
has been the largest footwear exporter of the country for the last 10 years. SIL had humble
beginning in 1941.company is now producing only rubber materials. The company employs
more than 9,800 people in its facilities located in Gujrat and Muridke and exports its products in
many destinations around the world. With a strong emphasis on product quality and innovation,
SIL has built both domestic and international recognition of company’s products. SIL launched a
domestic pharmacy chain in 2005 called Servaid. Service Sales Corporation (Pvt.) Ltd., (SSC)
the group’s marketing company was established in 1958.

Products of Servis:

Servis Group is operating through a network of more than 450 retail company stores nationwide
and also supplies its products to over 2500 independent retailers in Pakistan.

Servis Group has currently two main divisions.

 Footwear Divisions
 Tyres and Tube Divisons

Footwear Divisions:

Our manufacturing wing holds a leading market share position in Pakistan in terms of exports
value and volume both. Annual revenues of our footwear division exceed USD 90 Million (Euro
70 Million) of which 45% come from exports majorly to EU countries Germany, France & Italy.
Our in house manufacturing covers all aspects of shoe manufacturing value chain from model
designing, cutting, stitching to lasting (injection) & finishing and downstream activities such as
marketing. At present, our capacity is more than 40,000 pairs of shoes every day. Servis was
established in Lahore in 1959 with the notion of fulfilling the footwear needs of an entire family.

 Servis brand shoes (company's oldest and largest brand)

 LIZA brand shoes for women

 N-DURE for modern urban youth

 TZ for the young children

 SKOOZ offers the range of school shoes

 CALZA covers the traditional everyday essentials for men.

Tyres and Tubes Division

Service Industries Ltd is the pioneer in tyre & tube manufacturing in Pakistan since 1970.
Specialized in manufacturing and marketing products for the masses, our main business activity
is producing tyres & tubes for Motorcycle / Bicycle and footwear of different kinds. Service
Industries Limited has been dealing in bicycle tyre & tube business since 1970. Manufacturing of
motorcycle tyres & tubes was started in 1990. Our high quality products are swiftly and
efficiently distributed through a vast distribution network are a testament to their own success.
This makes us undisputed market leader in bicycle market and a holder of majority share in
motorcycle tyre & tube market. We are a major supplier of tyres & tubes to Japanese
motorcycles manufacturers like HONDA, YAMAHA and other local motorcycle assemblers in
Pakistan. Service Industries Limited is listed as registered Company on all major stock
exchanges of the country. With a work force of above 2,200 employees and approximately $90
million dollars per annum turnover, we are a low cost producer selling and growing profitably,
doubling our sales every three years, and earning a fair profit for the shareholders.

 Less than half of its sales revenues come from tyres and tubes

History of Servis:
‘Servis’ begins with a group of friend’s young, energetic, fresh from college .who established
Service Industries more than 75 years ago. These young men, named Ch. Nazar Muhammad
(Late), Ch. Muhammad Hussain (Late) both from Gujrat district and Ch. Muhammad Saeed
(Late) from Gujranwala District, started business in 1941 at a small scale in Lahore. At that time,
they were only manufacturing handbags and some other sports goods. Within years their
business flourished remarkably and they were supplying their products to every corner of India at
the time of Partition. Today, the production side of the company has flourished into Service
Industries Limited (SIL) which has world-class shoes, tyres, tubes, and rubber production
facilities in Gujrat and Muridke. SIL is also the leading exporter of footwear. Service Sales
Corporation (Pvt.) Ltd. (SSC) is today Pakistan’s leading footwear retailer which is also
diversifying into other businesses. A humble venture of friends has grown into a Group that
makes a difference in lives of millions of people every day today.

Vision of Servis:

To become a Global, World class and Diversified Company, which leverage, its brands and
people.
Mission of Servis:

 To be a result oriented and profitable Company by consistently improving market share,

quality, diversity, availability, presentation, reliability and customer acceptance.

 To emerge as a growth oriented ensuring optimum return and value addition to its
shareholders.

 To ensure cost consciousness in decision making and operations without compromising

the commitment to quality.

 To create an efficient resource management and conductive business environment.

Evolving an effective leadership by creating a highly professional and motivated
management team fully equipped to meet any challenge.

 To keep abreast with modern technology and designs to optimize production and enhance
brand image to attain international recognition for the Company’s product.

 To set up highly ethical business standards and be a good corporate citizen, contributing
towards the development of the national economy and assisting charitable causes.

Leadership:

Boards of Directors Group of Executive Committee

Mr. Chaudhary Ahmed Javed(Chairman) Mr. Omar Saeed(CEO)

Mr. Omar Saeed(Chief Executive Officer) Mr. Arif Saeed(Director)

Mr. Arif Saeed(Directors) Mr.Hassan Javed(Director)

Mr. Hassan Javed(Directors) Management Team

Mr. Riaz Ahmed(Directors) Mr. Ashfaq Alidina(CFO)

Mr. Mohammad Amin(Directors) Ms.Sidra Cheema

Mr. Shahid Hussain Jatoi(Directors) (Human Resource Executive)

Mr. Osman Saifullah Khan(Directors)

Mr. Rehman Naseem(Directors)

Function of HR Department
1. Staffing
2. Environmental management system
3. Heath and safety management
4. Attendance management for staff
5. Leave management for staff
6. Handle insurance related issues for workers

1. Staffing

Staffing (includes recruiting, selecting, hiring and firing of employees) is among the skills that
become more important as the complexity and overall level of performance organization
increases. The motto of HRM department is to select right person for right job. HRM only hire
staff member of SIL. The workers are hired by IR department. To hire a person following steps
are under taken:

 Recruitment
 Testing
 Interviewing
 Selection
 Orientation
 Training and Development
 Incentives and Rewards

a) Recruitment
Recruitment refers to the process of attracting, screening, and selecting qualified people
for a job at an organization or firm. New employees are hired whenever there are vacant
positions. Then to select the applicants HRM choose different methods
. Methods to select applicants:
 Advertisement through print media
 Select applicant from the CVs already dropped to HRM
 Employee Referrals: to identify potential candidates from their existing employees

(i)Screening

A large pool of CVs is collected. From that pool only six to seven CVs are considered. And
they are selected on the basis of:

 Merit

 Name of Universities
  Work experience

 Performance of employee (if selected through internal recruitment)

 Reference When 6 or 7 CVs are selected then HRM call the applicants for test and
interviewing.

b) Testing
Written test is taken from the selected applicants and the marks of the test are considered in
selecting process. In this test, general IQ questions are asked. Half hour is given to complete the
test. And the marks of test are out of 10.

c) Interviewing

Before interviewing a personal data form is filled by the applicants in which information about
the education, experience, family background and other related information is collected.
Applicants are called an hour before the interview to fill that form and give them the formal
introduction of the organization. After filling the form, the applicants are called one by one for
interview

(i) Interview panel:

The interview in SIL is usually panel interview and it is unstructured. The panel consists of 5 to
6 member usually they are general manager, assistant HRM manager, Factory Manager and the
manager of the department for whose department interviews are arranged. First of all applicants
is asked for his formal introduction. Then following types of questions are asked to the
interviewee:

 Knowledge based questions (related to work)

 Situational based Questions  Questions about previous job

 Confusing questions to check the IQ

 Questions to check the confidence

 Questions about the interests

Each member of the interview panel has Primary Interview Assessment Sheet through which
each member of panel individually assess each interviewee and give them marks. At the end of
the interview, the panel totals the marks of each member’s sheet. The interviewee with total
highest marks in Interview and Test has more chances to get the job.
In Primary Interview Assessment Sheet following attributes of the candidate is observed and
marked:

 Education
 Experience
 Computer literacy
 Family Background
 Communication
 Intelligence
 Personality
 Confidence
 Patience
 Interests
 Attitude
 Mannerism
 Motivation

d) Selection

The candidate with highest or second highest marks is usually preferred. The interviewer prefers
some attributes which are:

 Job experience of 3 to 4 years

 Academic Background is strong
 High Confidence level
 Family Background is strong

The candidate with all the above attributes has more chance of selection.

After Selection

After selection the candidate become the employee of the organization. And each employee has
its personal file. These files are saving as a record of the employee and keep with in HRM
department. Each file and Employee is given by a particular number which is the identity of the
Employee. And a card is also issue to the Employee by which employee is recognized in SIL. 3
letters are issued to the employee. 1 is given to the security office 2nd is given to the manager of
his department and 3rd is given to the employee itself.

Personal File

In personal file following things are attached:

 Metric Certificate
 Intermediate Certificate
  BS Certificate
 Masters Certificate
 All other kind of Certificates if any
 CV
 Personal Data Form
 Primary Assessment Sheet
 Letter of Appointment
 Joining Report
 Nomination form
 Probation period evaluation form
 Confirmation letter

e)Orientation

After selection the employee is given by two days of orientation. In this period the employee
is introduce to the other members of its department and its work type.

Probation period

The probation period of the employee is 3 to 6 months. It is the testing period of the employee.
In this period the employee is given by the full salary. And he cannot get a leave in his
probation period. During this period employee can quit his job without informing and the
organization also can dismiss the employee without any previous notice. When the probation
period is finished the employee becomes the permanent employee of the organization

d)Training and Development:

The organization arranges programs for training and development of its employees if necessary.
For training the organization arrange some type of courses related to their work and for
development the organization do the job rotation or job enrichment of the employees.

Incentives and Benefits:

The company provides different kinds of incentives and benefits to its employees. The benefits
and incentives for staff are different to the workers benefits and incentives. The HRM deals with
the staff benefits and incentives. The incentives provided to employees are as follows:

 Provident Fund

Employee contributes 7.5 % of its basic salary to the provident fund. And the employer also
contributes the same amount to that fund. When the employee leaves the job he gets the entire
amount. If the employee is executive then after 7 years the employee can get the provident fund
as loan.
 Gratuity
Gratuity is the 1 year basic salary without work after leaving the job. Only Executive can get it if
they have completed the 5 years of their job. Otherwise no gratuity is given to them.

 COLA (Cost of Living Allowance)

The allowance is extra from basic salary. 600 Rs. is added to the gross salary as the prices
fluctuate in the market so the allowance is given to accommodate

 Leaves
The employees are granted with 10 casual and 10 sick leaves in a year. But at a time they only
get 3 leaves. 14 annual leaves are granted at the end of each year. These leaves are granted with
payment. If the employee takes more than these leaves, pay is deducted at the rate of per day
salary.

 Bonus
Company also gives annual bonus to its employees. Usually this bonus is 1.5% of the basic
salary and is given in February.

 Accommodation
Company provides accommodation to the bachelor executives. Half of the salary is deducted if
an employee uses this facility. Other employees get the accommodation allowance which is
added to their gross salary.

 Other Facilities

Employees of higher Cadre get the facilities like: Convince, Mobile Charges, AC, Land line bill,
Fuel. These things are included in gross salary.

Salary Increment

After completing 1 whole year of service the employees get the increment in their salaries. It is
done in August each year. The ratio of Increment in the salary depends upon the performance of
the employee and the performance is appraised by the supervisor and the head of department of
the employee
2. Environmental Protection

For protection of environment the company took following steps:

 Treatment of the waste water which can be harmful for the environment if discharged
untreated.

For this purpose regular water samples are taken and tested.

 Boiler gases are also harmful they are also treated before discharge.

 Power house gases can be dangerous if substandard machinery or fuel is used. But they use
high standard fuel and best machinery for this purpose. Noise pollution is also produced.

3. Health & Safety

 The company is responsible for meeting Federal as well as local health and safety standards
and for establishing and implementing necessary measures to minimize its employees’ risk
of injury or illness.
 Health and safety guidelines shall be strictly followed i.e. use of Personal Protective
Equipment’s (PPEs) wherever and whenever required. Health and safety procedures shall
be developed and implemented in order to ensure complete adherence to the safety rules
and regulations.
 Human Resource Department will ensure that all EHS policies and procedures are
communicated at all levels of Company employees.

Health

For the health of workers followings steps are under taken:

 Medical test of workers: HIV AIDS test, Sugar test, Hepatitis B, C is taken. If a worker if
positive of any disease proper free treatment is given to them through social security.
 Blood group of worker is also checked. If case of emergency they can easily get the blood.
 For staff medical allowance is included in the gross salary.
 The company gives 300 per worker/month to the social security ordinance for the
betterment of workers, whose salary is max 10,000.
 For pregnant women and for new mother complete policy is made to provide them as much
relief as possible.
 For the sake of employees’ health, toilets are clean, soap and hand drawers are provided to
them
 Standardized food is provided to the employees at cheap rates.
 Sick leaves are given to them.
 Burden on ill workers is less.
Safety

For the sake of safety of workers following precautions are undertaken:

 Fire Alarms are provided at reachable place.
 Sand buckets, fire extinguisher and water pipes are provided at different places for the
safety of employees.
 Facility of First Aid is provided in case of emergency.
 Ambulance is there for emergency situation.
 Masks and goggles are provided to the workers, who deal with the dust particles at their
work place.
 Gloves are provided to the workers who deal with chemicals which can damage their
hands.

4. Attendance Management

Attendance Management is also a function of HRM and is performed in HRM. Attendance is

maintain at two places in interdepartmental registers and centralized register for the whole staff
of the organization. The centralized register is placed on the entrance gate. In interdepartmental
registers and centralized register the attendance is maintain manually.

There are two booths present in SIL for computerized attendance. One is present near the
entrance gate. In these booths computerized machine is present which recognize the finger print
of index finger of all staff members and there ID cards. This is used for computerized attendance.
On fortnight bases all the attendance is computerized. They used the smart term oracle program,
to maintain and upgrade the attendance. Any problem in upgrading attendance is solved on daily
basis. Attendance Management is very important function of the SIL as the salaries of the
employees depends on their attendance.

5. Leave Management

Leave Management is another important function of SIL. The company granted some holidays to
the employees with payment. But if the employees exceed that limit their salary shall be
deducted. There are 5 working days for employees Monday to Friday.

Leave policy and Procedure

If an employee needs a leave on working day first he has to approve his leave application, before
one day, from the manager of his department and then submit it to the HR/IR department. There
is a particular form for leave which is filled by the employee and signed by the manager. The
leaves granted to the employees by company are:
 Casual Leaves

There are 10 casual leaves per year. Employee can off only 3 working days continuously

 Weekend

For staff members two days are off Saturday and Sunday.

 Sick leaves

Employee can get three days sick leave with payment but if they need more they have to show
medical certificate for their illness.

 Maternity Leaves

3 month’s leaves are granted to the pregnant worker with pay who belongs to S.S.O. Otherwise
the company grant only 1 month maternity leaves.

 Compensatory Leaves

If an employee works on its weekly holiday he can utilize this holiday in another working 3 days
before or after that day.

 Annual Leaves

14 annual leaves are granted to employees after completing 1 year of job.

 Short Leaves

In case of emergency employee can switch off his job for 2 hrs and this can be done once within
a month.

6. Insurance

In SIL every employee, machinery and building is insured through insurance company. And the
workers are also insured through social security. The company monthly paid for its employees to
the insurance companies. In case of any accident the employees get benefit through that
insurance. The maximum amount is given on the death of the employee in case of accident at
work place, by the insurance company. The amount of insurance is different for different type of
loss. The HRM department handles all the insurance cases. HRM department is the manager of
all the departments. The SIL HRM is handling certain type of issues successfully
  Guidelines for Human Resource Department

 Human Resource Manager will ensure that all executives / managers are fully conversant
with the provisions of this company policy.
 Head of Departments will also be responsible for ensuring compliance to these policy
guidelines and any deviation of above policy guidelines shall not be acceptable

Performance of HRD:
The success of organization depends on developing its HR.

 Fast changing environment

 Ability to maintain a competitive advantage.

 Must develop its employees,

i. So that they are able to work in groups.

ii. Able to take responsibility for their product.

iii. To solve dilemmas.

Maintaining a competitive advantage begins with an extremely motivated and knowledgeable

workforce to provide higher quality product at lower costs to obtain the best result, improving
skills and knowledge from trainings.

Relationship between HRD and Performance:

The Company “Servis” improves organizational performance and productivity by effectively
implementing programs which are totally depends on experienced HRD professionals. Training
can improve employee performance, organizational productivity, product quality and
profitability of the organization.
Organizational Strategy:
a) Development of human resource planning

b) Assessment of current staff availability.

c) Forecast the future demand expected workforce.

d) Staffing strategy

e) Suggest how human capital affects organization success.

f) Strategy for corporate decision making

Organizational Success:
The success of any established enterprise depends heavily on management of its human resource.
As a result effective management of organization leads to effective utilization of human resource
of the employee, which in turn plays a major role in success of the complete enterprise. Our
company success depends on effective, employee communication, career success, Hiring advice,
job search tips, news, project management best practices, resume tips etc.

Corporate Social Responsibility:

Company believes that they owe a great deal to communities, customers, employees and
shareholders. And as such company strives to be role model in the area of social responsibility.
They classify CSR activities under the following broad Categories i.e. Corporate Philanthropy,
National Cause Donations, Community Investment and other areas.

Corporate Philanthropy:

Even as growth and social changes accelerate the desire to move up the home pyramid, the
Issues of health and educations remain major challenges. Company has five exclusive projects in
the areas of health, education and care for senior citizen. The projects include:

CH. Nazar Mohammad, Mohammad Hussain Memorial Society Hospital

A fully equipped 8 bed free hospital in Gandhra, Gujrat. This hospital has fully functional
Operation Theater and X-ray, Laboratory and ultrasound facilities. This hospital provides free
surgical care to the Gandhra and its neighboring villages. In 2011 over 37 thousand patients were
given free treatment here.

Service Free dispensary

A dispensary that caters to poor and the needy of Gujrat, district. Medical facilities such as
consultation, ultrasound, X-ray, laboratory and medicines are provided free of cost. Over 55
thousand patients received free medication and consultation through this dispensary.

Dar-ul-Kafala

A multi-residence housing facility intended for homeless senior citizens in Lahore. Facilities
provided within the building include meals, gathering, recreation and basic health care.

Service High School for Boys, Gujrat

This school provides quality education to the poor residents of the area free of charge.

Bagh-e-Rehmat

A high school for girls and a primary school for boys in, Lahore. This school is providing quality
education to over 350 children of the poor population of the locality.

National Cause Donations:

Company believes in not only providing immediate relief to the affected people but also in
providing a sustainable solution to bring affected people to normal life. In 2010 and 2011,
devastating floods swept through Pakistan. The destruction resulted in loss of lives, homes, and
livelihoods. Critical community infrastructure was destroyed, agricultural lands laid waste, basic
public and communal services disrupted, and systems collapsed. Servis is unique in that most of
its efforts for rehabilitation are led by employees. Service not only participated in flood relief
activities in both the years but also played its role in rehabilitation of the affectees in the
following ways:

Flood Relief Activities

With the help of PAF, company and its employees acted collectively and participated in flood
relief operation in district Mirpur Khas. Special attention was given to worst hit areas of Samaro,
Kunri and Farooqabad. The flood Relief team distributed about 60 tonnes of food stuff. In
addition to that medical camps were setup in these areas where the needy were given free
consultation and medicines.

Rehabilitation of flood affectees

In this area, company participated in two projects:

a. Reconstruction of three villages of Mohamad pur (South East of Rajanpur) i.e. Tharri Walla,
Shah Walli and Bastti Rinda. By the grace of Almighty Allah their highly motivated and
energetic team with the help of PAF, was able to reconstruct the three villages with improved
facilities, within a short period of just 90 days. The project had the following hallmarks:
• Reconstruction of 100 houses with complete set of house hold (utensils and quilts)

• Provision of one month food supply

• Provision of water pumps in almost every house

• Provision of tractors, seed and fertilizer to kick start agriculture and economy

• Reconstruction of boys and girls school and 4 mosques

b. Partnering with the Provincial Disaster Management Authority (Punjab) for reconstruction of
the village of Rakh Fazal Pur in district Rajanpur. A Model village, namely “Servis Model
Village”, of 100 houses was established with most modern facilities.

These amenities include the following:

• Availability of clean drinking water

• Covered Sewerage

• Livestock Shed

• Biogas Plants

• Solar Energy Systems

• School

• Mosque

• Parks/ Playing Areas

• Paved Roads

Community Investment

CSR activities are also geared towards providing regular donations to the causes of education
and healthcare. These include:

Shalamar Hospital

A charity hospital in Lahore. It was founded in 1982 by contributions of founders of company

Ch. Mohammad Husain and Ch.Nazar Mohammad. It is owned and managed by the
Businessman Hospital Trust (BHT). The main objective of BHT is to provide health care
services to patients from all income groups, especially to lower and middle social classes.
Company makes regular contributions to Shalamar and in 2011 donated Rs. 7m.
Forman’s Christian (FC) College Lahore

During the year company made a donation of Rs. 6m to FC College.

In addition to the above company makes regular contributions to the NGO’s like:

• Lahore Businessmen Association for Rehabilitation of Disabled (LABARD)

• Thalassemia Society of Pakistan

• Pakistan Society for the Rehabilitation of the Disabled (PSRD)

Other Areas

Energy Conservation & Environmental Protection Measures

Company recognizes that our actions may have harmful effects on our planet; therefore they
have adopted measures to protect the environment. These include:

• Adopting low pollution procedures

• Proper treatment and disposal of wastes

• Usage of LED and energy saver bulbs

• Utilization of natural light wherever possible

• Switching off ACs and other electrical appliances during the lunch hours

Downsizing of Servis:
They have gone through the downsizing situation when they have given to their customer buy
one get one free offer in a Calza Brand. They have faced a great loss by this offer. They also said
that downsizing occurs in a company because of

 Poor economic conditions

 Company has to cut jobs in order to lower cost or maintain profitability

 During a merger of two companies

 When a product or service is cut or the company falters

 when employers want to streamline a company

 This refers to corporate restructuring in order to increase profit and maximize

Efficiency
Discrimination:
Company strongly believes that all employees should be treated equally without any
discrimination on the basis of:

 Religion

 Sex

 Race (including nationality, colour)

 Marital status

 Disability

In case any employee is aggrieved of any discrimination, he / she will have the right to make a
complaint to the competent authority through his Department Head who upon its receipt shall
investigate the same and in the event of any veracity further action including disciplinary
measure as the case may be initiated or taken in the circumstances of the case.

Harassment:
It is the policy of the company to ensure that none of its employees is harassed including sexual
harassment or pressurized to achieve any desired objectives during the course of their
employment. In case of any complaint in this connection shall be viewed seriously by the
management and necessary disciplinary action or remedial measures shall be taken accordingly
without exception.