Task 3

Question 2 : human resource management practices

Employees recruitment
Recruitment at EMCO:
HR strategies are subject to constant change at EMCO because the senior management
believed that only one thing is constant and that is change. A position can fall vacant due to
several reasons like resignation, retirement, promotion, transfer, death and incase a new
position is created. So, there are two types of vacancies old and new; old are referred to the
ones that are created when somebody leaves the organization and GM has the authority to get
the person employed as a result of this vacancy but in case of a new vacancy that is when the
company needs a new position altogether which never existed in EMCO the permission had to
be taken from the Director. The department that needs a new person fills in a requisition form
for the request to HR department.
“The first and the foremost source that we at EMCO go through are the unsolicited resumes. But
the most famous way is by posting the vacancy in-house on boards or on the main gate. So
Referrals in case of EMCO are considered and hired also but they are rejected lest there is a lot
of negativity in the air” (Manager HR and QA)

Employees selection
The selection for managerial position is done through simple interviews where as technical tests
are conducted only for the technical jobs. GM plant does directly see into the new inductions for
engineers and managers especially.
“Plant manager when hired is made sure that he has an engineering background because it
makes completely no sense to hire an MBA for the post” Production Manager Insulator division.
One interview is conducted for each person being hired which is usually panel. The idea of not
having more than one interview is that candidates do not have to take pain of coming again and
again because industry is out of city.

Employees training
Development
Employee Development & Succession Planning:
“EMCO does not hire people from outside for senior posts because this could de-motivate the
people putting effort in the company and eligible to run for the post and this is being unfair to
people within” (Manager HR and QA).
Due to the culture of internal promotions at EMCO the person promoted to new position is not
even apt for the post, for instance, HR & IR manager has a degree in law and HR & QA
manager is engineer by his qualifications
Hence the company has to identify, groom the employees in the necessary areas through
various courses and training workshops conducted by Pakistan Institute of Management and
Institute of marketing and sales etc depending on the job type so as to develop people to
occupy higher level jobs as and when they fall vacant.
“We do understand that over dependence on the internal sources may sometimes retard the
growth as all the employees are not competent enough for a particular job. In that situation we
do resort to fresh blood but that is in case of dire need” (Manager HR and QA)

Performance management
Appraisal:
A yearly appraisal is conducted at EMCO. For Workmen ranking method is used for job
evaluation as depicted in the table below but no formal appraisal is used as the management
feels that majority of the employees are illiterate and a formal appraisal has no meaning to
them. Despite of all the informality the employees are given rigorous feedback at the time of
inspections and rounds by the supervisors.

Ranking order Pay scale

Unskilled 7000
Semi-Skilled 7800
Skilled 8500

Non Workmen are subject to appraisal every June so it is conducted on yearly basis. Traditional
methods of appraisal are used at EMCO in which employee are judged on the basis of
characteristic and contribution. Performance of each Worker/Employee is assessed on a
prescribed form on annual basis.
The form is divided into three main columns, factor, rating and remarks, when completing the
forms the Employee’s entire work performance is to be considered giving due weight age to
each factor. As a result of this sometimes employees are rated higher or lower on all the factors
due to higher or lower rating on some specific factors.

Compensation policy
Monetary and Non monetary Incentives:
According to the Mr. Anees (Manager Finance)
“Motivation is the power and fuel that keeps the machinery in our industry moving. But the
biggest motivation comes in through incentives and out of these financial incentives has the
most power. Non financial benefits only work when there are financial benefits tied to them.
Love and appreciation alone cannot work for very long”.
According to the Processes of HR department and the benefits that have been jotted down:
Employee’s old age benefits:
1. In accordance with Law department arrange the EOB Registration for all permanent
Workers/Employees
2. Contribution @ 5% of Wages/Salary up to 7000/- per month as EOB contribution pays
every month to the Institution.
 3. On attaining the age of superannuation & contribution for the period of fifteen years,
Employee/Worker is entitled to pension.
4. On the death of Employee his Widow is entitled to pension. Social security:
Social Security
Scheme is applicable only those employees fall in the said Scheme who draw wages up to
Rs.10,000/- per month
1. Contribution @ 6% of Wages is paid against each insured person. 2. In case of sickness
secured person can avail medical facility for himself, wife, children & parents for the Social
Security Dispensary/Hospital. 3. In case the death of secured person, legal heirs can avail the
facility of death benefits from the Social Security Institution.
But at present due to crisis EMCO cannot pay its employees a handsome amount even the non
financial benefits keep on fluctuating. Further the company is not in a position to pay the
medical allowance for the benefit and welfare of the employees.
In the current economic crisis the company has no clue how to deal with all these problems. The
senior management wants to take some corrective actions in order to satisfy and retain
employees but the company is restricted in its options. Management is of the view that systems
employed at EMCO need a fresh change but financially the company is not so strong to support
new systems for the betterment of the company. Mr. Rana Aziz is really upset and impetuously
went to Mr. Manan’s office in order to talk and device a way to handle all the unrest prevailing in
the company.

Health and Safety Administration:

In today’s world, the number of people killed and injured at work had increased substantially.
Pakistan’s Industrial sector has embraced many systems to minimize workplace accidents and
incidents, yet despite the best intention the systems employed have not been implemented
properly, as a result there has been little reduction in the rate at which people are killed or
injured at work. Similar scenario prevails in EMCO Industries, the statistics told by the owner of
the company indicated that the number of occupational accidents have increased significantly,
workers especially those working in the insulator plant suffer a high level of occupational
accidents almost every year.

Health and Safety measures exercised at EMCO:

Factories Act of Pakistan, 1934 has been made to the perfection in Pakistan but its
implementation in majority of the factories is a big question mark. Mr. Rana Masood Anwar
(Manager IR & HR), referred to their Safety and Health system as OSHECOM which actually
was “OSHA”. An HR manager who didn’t even know the name of the system followed at their
organization; how he can expect his subordinates to follow the set rules. It shows that these
fancy words and documented guidelines are just left for papers.
Safety and Health Issues:
According to the HR Manager Mr. Khalid Anwar, they have implemented OSHA rules by giving
each supervisor a status of Safety and Health Officer. According to the Safety and Health
Officer Regulations, a SHO is an individual who has attended training in any National Institute of
Occupational Safety and Health institute or other accredited training body and has passed the
examination conducted by the concerned department. Unfortunately at EMCO Industries none
of the health officer has ever gone through any safety and health training except Safety and
Health orientation and instructions given by the company at the start of the job.
“Occupational safety and health is the discipline concerned with preserving and protecting
human and facility resources in the workplace. Nowadays, we always hear that the accident
cases are happening in the manufacturing industries. The percentage of accidents in the
manufacturing sector is always high as compared to other sectors. The reason is that poor
employees don’t care acting on Occupational Safety and Health performances in manufacturing
companies like EMCO, in fact their contributory negligence makes it even worse” Mr. Rana
Masood Anwar.
Mr. Rafique (Worker) was of the view that they get Health and Safety Orientation when they join
the Company, but verbally these things are not enough. The Supervisor who has been given the
status of Health and Safety Officer has no concern other than to increase the production level.
Setting aside what the industry and economy as a whole is going through EMCO needs to take
measures to keep its people content. HRD and HRM needs to have better communication
grounds. Policies need not to be developed only, but proper implementation is also required