ALLAMA IQBAL OPEN UNIVERSITY

Dept. of Business Administration

Specialization: Human Resource Management

Internship Report Kohinoor Textile Mills Limited

Submitted To: Chairman, Deptt. Of Business Administration Submitted By: Name: Faysal Ahmad Roll No: W581319 Registration No: 07POA0010 Mailing Address: M. Hanif, House # 110-A, Street # 130, Kooch Ghulam Dastgir, Charagh Din Road Mozang Lahore Contact No: 0333-4900967 Date of Submission

Prepared by Faysal Ahmad

Roll No. W581319

S. No

Description

Page No.

ACKNOWLEDGMENT
In the name of Allah, the most Gracious, the most merciful All praises for Almighty Allah, who guides us in darkness and helps us in difficulties and due respect for Holy Prophet (Peace be upon him) who enables us to recognize our creator. First, I would like to thanks Almighty Allah who gave me strength to complete challenging tasks & His blessings that He provided me confidence, guidance & strength to complete this report. The journey has not finished yet and I pray to Him to show me the straight path & help me more in future as I am nothing without His blessings. Writing an internship report appeared to be a great experience for me. It added a lot to my knowledge. Completion of internship report is not an easy task. It requires continuous hard work. Completion of this report would have not been possible without the support of all staff of HR department to whom I interacted. . I would like to thanks especially Mr.Omer Shahid to their practical guidance and personal interest by which I become able to complete this task. Very special thank to all my dear teachers that build my personality and enable me to do some creative work be a successful person in practical life. I am responsible for errors and mistakes presented in the report and a positive and constructive criticism will always be greeted warmth. 2

1 2 3 4 5 6 7 8 9 10 11

EXECUTIVE SUMMARY OBJECTIVE OF STUDYING THE ORGANIZATION A BRIEF INTRODUCTION DIVISIONS OF KML KOHINOOR MILLS LIMITED MAN POWER ORGANIZATIONAL HIERARCHY INFRASTRUCTURE HRM IN THE LIGHT OF HOLY QURAN AND HADITH LEADERSHIP STYLE ALLAH SAYS SAYINGS OF HOLY QURAN & PRACTICE OF HOLY PROPHET

6 7 7 8 11 12 13 14 15 16 17

12 13 14 15 16 17 18 19 20

HUMAN RESOURCE PLANNING HRM OPERATIONS MAJOR FUNCTIONS KOHINOOR HRM PHILOSOPHY TRAINING & DEVELOPMENT COMPENSATION & BENEFITS INDUSTRIAL RELATIONS HEALTH & WELFARE BENEFITS SOCIAL COMPLIANCE

18 18 19 20 21 23 24 25 29

21 22 23 24 25 26 27 28 29 30 32 33

HUMAN RESOURCE POLICIES HUMAN RESOURCE INFORMATION SYSTEM HUMAN RESOURCE DOCUMENTATION RECRUITMENT & SELECTION SOURCE OF RECRUITMENT INTERNAL SOURCE EXTERNAL SOURCE STEPS OF HIRING FOR NEW VACANCY RECRUITMENT OF PERMANENT WORKERS RECRUITMENT OF TEMPORARY WORKERS PERFORMANCE MANAGEMENT PURPOSE OF PERFORMANCE APPRAISAL IN KOHINOOR MILLS LIMITED

30 33 34 35 36 36 37 39 40 41 42 42

34 35 36

RETIREMENT PROMOTION EXIT INTERVIEW

43 43 43

37 38 39 40 41

EMPLOYEE RELATIONS SUCCESSION POLICY SWOT ANALYSIS CONCLUSION RECOMMENDATIONS FOR IMPROVEMENT

44 45 47 49 50

Executive Summary
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As per requirement to complete MBA (HRM) Program at Allama Iqbal Open University. I completed my Internship Program at Kohinoor Mills Limited. This is for six weeks orientation prepared me to better understand the practicality of different tools of business administration. At the end of training program, it is required to submit an Internship report in university and Kohinoor Mills Limited. The Internship report has been completed, which is a result of ones time taking efforts. I prepared this report as what I observed and what so ever I learnt here in Kohinoor Mills Limited. I also got the help of companys published material. My report covers a series of topical areas that I took them in analytical way. Major portion of this report has been devoted to Companys introduction and particularly to its management system. Efforts were to explore their hierarchies and identify the channels of workflow here in Kohinoor Mills Limited. Then I discussed their major management and HR activities. Finally, I drew conclusions.

Objective of Studying the Organization:

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My objective of studying the Kohinoor Mills Limited Industries Limited is to know about the following things:

1. How management is analyzing work and planning for people?

2. What factors are most important to consider in developing a recruitment policy?

3. What screening and selection methods are available, and which ones are most accurate?

Kohinoor Mills Limited: A Brief Introduction History

Kohinoor Mills Limited was incorporated as a Public limited Company on December 21st, 1987 and is located at 8th K.M., Manga Raiwind Road, District Kasur. The Company produces greige cloth from cotton, blended and synthetic yarns.

Initially Kohinoor Mills Limited was a part of Saigol Group owing over 250000 spindles. The Saigol Group represents a golden era of history of industrial and commercial development in Pakistan.

The Group established industrial projects in the field of textiles comprising weaving, Dyeing, and finishing facilities,

Prior to nationalization of the private sector industries in the early 1970s the Group was one of the largest in Pakistan. After nationalization, the group focused in textiles only.

Mission Statement:
We at Kohinoor believe our employees to be our most valuable asset. We have a human resource management department for every division because we view it as a competitive advantage. Through HRM we are able to ensure that business goals are realized through our workers while meeting their personal aspirations. It further ensures that only motivated and professionally qualified people are employed. Kohinoor is an equal opportunity employer with policies, which ensure that there is no discrimination on the basis of caste, creed, sex, religion, etc.

Divisions of Kohinoor Mills Limited

KOHINOOR MILLS LIMITED

Hosiery Division
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Products:
Kohinoor Hosiery is engaged in the production of high quality socks with a capacity of 9.6 million dozen per annum. Its core product is 108 needle sports/casual socks.

Workforce:
The company enjoys the services of professionals in its various departments with a total workforce of 1900 individuals.

Turnover:
It has a total annual sales turnover of US$ 32.16 Million.

Weaving division
The project was initially established with 48 Sulzer Ruti shuttle-less looms of 153" width from Switzerland with modern ancillary machinery to produce high quality fabric for export markets. Further expansions saw the installation of an additional 96 Tsudakoma air jet looms from Japan in 1990 and a third shed comprising 60 state of the art Picanol Omni 340 cm wide looms was installed in July 1998. In 2000-2001 old 48 Sulzer Ruti looms were replaced by 48 lated Picanol Omni Plus 380cm looms. In addition to that latest Picanol Omni Plus Jacquard Looms were also added. The entire manufacturing process from warping to fabric inspection is monitored through an on-line process control system from Barco. The marketing strategy is to explore new markets both in quota and non-quota countries.

Products:
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Twills Poplin / Canvases Sateen Jacquards Dobbies

Yarn dyes Broken twills Herring bone Bfc Ripstop

Dying Division
Kohinoor Dyeing has state of the art Dyeing & Finishing plant producing, Dyed, White & PFGD Fabrics with a capacity of 3.0 Million meters per month. Kohinoor Dyeing has a diversified customer base spread over different continents. It has long-term professional relationship with most of the High Street Labels and famous chain stores:

PRODUCTS
Reactive, Disperse, VAT, Sulpher and Pigment dyed fabrics for bottom wear in; 100% Cotton Poly cotton blends Stretch fabrics

Genertek Division
Kohinoor Genertek is a power generation plant, engaged in power generation and distribution since 1995. Its has the generation capacity of 29.28 MW and comprises of the following types of Generation equipment.

Workforce
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The company enjoys the services of professionals in its various departments with a total workforce of 65 individuals.

Turnover
It has a total turnover of US$ 10 million

Kohinoor Mills Limited Man Power

DIVISION HOSIERY WEAVING DYEING GENERTEK POOL TOTAL MD GM DGM MANAGER EXECUTIVE SUPERVISOR WORKERS TOTAL 1 0 1 0 1 3 1 3 2 0 1 7 3 0 0 1 2 6 5 7 10 3 6 31 35 35 52 5 18 145 77 53 56 12 29 227 1855 695 575 49 81 3255 1977 793 696 70 138 3674

Organizational Hierarchy
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MANAGING DIRECTOR

GENERAL MANAGER PROCESSING GENERAL MANAGER SPINNING PRODUCTION MANAGER STITCHING MANAGER FOLDING

GENERAL MANAGER MARKETING MANAGER FINANCE MANAGER HR & ADMIN

MANAGER PURCHASE

MANAGER PPC

MANAGER Q/A GENERAL MANAGER SALES

MANAGER ENG.SERVICES

Infrastructure:
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Kohinoor has planned infrastructure and buildings available which have been designed to take the current capacity to the next levels.

FACTORY BUILDINGS BUILDING SQFT HOSIERY WEAVING DYEING APPAREL GENERTEK TOTAL AREA 301,665 285,606 244,543 146,808 71,560 1,050,182

RESIDENTIAL BUILDING SQFT 189,090 140,339 30,642 13,982 374,053 490,755 425,945 275,185 146,808 85,542 1,424,235 TOTAL SQFT

HRM IN THE LIGHT OF HOLY QURAN AND HADITH

Allah Almighty says, Travel through the world and observe.

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In another place, He says, Learn from the happenings with the previous nations Also, There are signs for those who are in search of truth and possess wisdom So, I believe that we can get the guidance and instructions at any of the matter that we confront in our lives. But the need of the hour is that we must have the required urge for this purpose. We must be eager to find the truth. Allah always rewards those who are struggling on the right path and wish to be close to him. Thats why, a person must be patient, determined and firm footed. All the advanced nations in the world are doing research work by studying & grasping the exegesis of Holy Quran. Top ten banks of the world are Japanese and none of them charges interest just because those people have understood the truthfulness of our holy book. They also developed the best irrigation system of the world. So, each & every practice in Islam is a complete blessing in itself. We have to adopt them and their meanings & purposefulness will automatically be portrayed on us. Here, I cant help mentioning the true story of a Pakistani doctor. When this particular doctor visited abroad, he saw that foreign doctors were asking the patients to perform all those activities (as exercise), which we perform while saying prayer. Hence, we will be safe from countless diseases by just performing prayers five times a day. In this regard, we have made just a minor effort to enlighten some of the aspects of Human Resource Management under the light of Holy Quran and Hadith.

Leadership Style

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It is very important to decide about the leadership style in order to successfully apply the principles of Human Resource Management and achieve the organizational goals. Although, we feel that Holy Prophet has communicated divine rules to us that cant be objected. The followers have to accept them as they are. By time, it was proved that if consensus would have done on them, the same rules would had come out of them. On many occasions, verses were revealed in the favour of opinions of the companions of Holy Prophet. Holy Prophet had the perfect democratic leadership style. Few of the advantages to pick and apply this style are discussed below. In our business environment, no compromise can be done on the achievement of

organizational goals. A democratic leader can better negotiate the goal to achieve. It ensures and fixes that the goals are obtainable. This gives a sense of participation to the employees. As a result, both, the morale & the motivation of employees go to the peak. When all the relevant people gather to set the goals & plans to achieve them, all

of them agree on the common goals at last. They all become committed to them. Then all of them unite to win these goals and become a strength that ensures the achievement of these goals. A trust is developed not only within the employees but also on the management of the firm.

As a result of high morale, they struggle hard to win goals. The entire group has

the required desirability to obtain common goals. They become ready to reach the set targets at any cost.

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A very important advantage of this leadership style is that both the leader and the

employees feel a high sense of responsibility on themselves. They become answerable for their own set goals. On adopting this style, a manager comes in a better position to perform his

responsibilities like of communicator, counselor, coacher and appraiser. He can very well deliver the preferences of the firm, responsibilities on the part of the employee. Now he is better able to appraise the employee because they set the targets himself.

Allah Says
Hold tightly onto Allahs rope.
Allah has given the most appropriate and logical principles to lead life in the Holy Quran. These were applicable 1400 years ago as well as in the present era. This book gives the feelings of equality that the rich are not given any special or superior book as compared to the poor. It means that on the basis of these eternal rules, you have to develop different systems to lead your lives. No one will be exempt from these principles. In fact, it was the unbiased justice system of Islam that convinced Non-Muslims to embrace Islam.

And say prayer

Whenever, we say prayer, we stand side by side with each other. We start from Allah Akbar. It doesnt just mean that we are going to bestow. It invites the believers to bury the old enmities. All the Muslims are asked to put aside the whole differences and gather for the cause of Allah. This is the way to assure the people that they are equal in all

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respects. When the destination of all is same (Allah) and also the method to access Him. They all bow to Allah to pray to Him.

SAYINGS OF HOLY QURAN & PRACTICE OF HOLY PROPHET

It is clearly mentioned in Islam that the basis of an Islamic government will be consensus. Holy Prophet always used to consult with his followers. There is no concept of heirs of kingdom in Islam. Thats why, all the four caliphs were selected through the consultation of companions after the Holy Prophet. Any caliph didnt appoint any particular person. Every one just pointed out the most eligible persons to bear the responsibility of being the leader of all the Muslims. When the Muslims became victorious in the battle of Badr, a number of non-believers were also brought as prisoners. Then Holy Prophet asked for the opinions how to treat with these prisoners. Hazrat Umer suggested that every Muslim should be handed over his own relatives. So, he will kill these relatives. An opinion was of charging ransom for their freedom. This was a new practice in Arab. Similarly, another event shows that how much importance, Holy Prophet used to give to the consultation and opinions of his followers and same is appreciated by Allah Almighty. So, when Holy Prophet intended to attend the funeral of a hypocrite named Abdullah Bin Abee, hazrat umer, showing anger, said to him that you would go to the funeral of a hypocrite. Then, the revelation also came in the favour of opinion of Hazrat Umer. This shows that even Allah also likes positive and logical consultation.

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Human Resource Planning

Human resource planning is all about measuring the organization need to identify the numbers of employees and skills required to do those jobs. Further, an understanding of available competencies is necessary to allow the organization to plan for the changes to new jobs required by corporate goals

HRM Operations
At a general level, it is important to analyze training needs against the backdrop of organizational objectives and strategies. Unless you do this, you may waste time and money on training programs that do not advance the cause of the company People may be trained in skills they already possess the training budget may be squandered on rest and recuperation sessions, where employees are entertained but learn little in the way required job skills or job knowledge, or the budget may be spent on glittering hardware that meets the training directors needs but not the organizations. It is also essential to analyze the organizations external environment an internal climate. Trends in the strategic priorities of a business, judicial decisions, civil rights laws, union activity, productivity, accidents, turnover, absenteeism, and on the job employee behavior will provide relevant information at this level. However, assessing the needs for training does not end here. It is important to analyze needs regularly and at all three levels in order to evaluate the results of training and to assess what training is needed in the future. At the organizational level, senior managers who set the organizations goals should analyze needs.

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At the operations level, the managers who specify how the organizations goals are going to be achieved should analyze needs. At the individual level, the managers and workers who do the work to achieve those goals should analyze needs, keeping in mind that performance is a function both of ability and motivation.

Major Functions of HRM

Every organization whether it is a multinational conglomerates a small business, a religious institution or a government agency depends on people. Appropriate candidates for each job from chairman of the board to night shift janitor must be located either inside or outside the organization and they must be convinced by pay benefits and working conditions to take and keep the job. They must also be trained and motivated. Handling these functions is part of human resources managements job. they feel burden on themselves.. There are six steps. 1. Human resources planning 2. Staffing 3. Training & Development 4. Compensation Management 5. Employee Evaluation 6. Employee Movement and Replacement

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Kohinoor HRM Philosophy

Our people are our most valuable asset. Kohinoor view Human Resources as a competitive advantage. To ensure business goals are realized through people while meeting their own personal aspirations. To ensure only motivated and professionally qualified people are employed. Kohinoor is an equal opportunity employer with policies to ensure there is no discrimination on the basis of caste, creed, sex, religion etc.

TRAINING & DEVELOPMENT

COMPENSATION

& Benefits

SOCIAL COMPLIANCE HUMAN RESOURCE MANAGEMENT

INDUSTRIAL RELATIONS

SAFETY HEALTH & Environment

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Training & Development

Training and Development of employees is a core value at Kohinoor Mills Limited Management supports training and development programs to ensure motivated and professionally competent people are available within the organization. This is an essential responsibility of every manager and is a part of his or her key result area and objectives. A corporate training department, which apart from assessing individual training needs also, provides extensive in-house training and consultancy for the development of employees. HRO is responsible for Employee Orientation. Immediate supervisor is concerned if an employee is queries even after orientation. Formal training programs both for the employees and management. Absenteeism 1.3% of in the last 6 months

Training Centers
Specialized training officer is used for effective training programs which werent used previously. Workers club and training centers are specifically designed for training.

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Training Cost
All aspects are trained but mostly need base job skill development. 0.4-.5% avg. of total wages is estimated training cost. Normally 20-25 employees are under training at a time

Training and Development Policy (KML)

Scope and Purpose
KML is committed to excellence in training and development of its manpower appropriate to their duties/responsibilities. The objective is to impart knowledge, develop skills and bring about a change in the attitude of employees. It will enable achieving Company objectives as efficiently and effectively as possible and to provide the opportunity for employees to realize & achieve mutually agreed goals. This procedure identifies KML approach to Human Resources Development and describes the methods to be used for the efficient and effective development of KML personnel.

Implementation
The Managing Director of each company has over-all responsibility for ensuring implementation of the training policy. He delegates in the first instance this responsibility to his Human Resources Department.

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Compensation & Benefits

Compensation systems are communicated to the employees using employee handbook, newsletters and circulars. COLA is used and varies pay to pay scale. Security scheme. Company contributes 7% of wages for medical facilities to employees, spouse, children and parents. Dispensary/injury treatment Center located in the colony. Group Health Insurance - Other employees are covered under group hospitalization insurance. Old-age Pension - Company contributes 5% of wages for each employee for pension for male and female employees at age of 60 and 55 respectively. Group Life Insurance - All employees insured ranging from 100,000 to 400,000 for various categories. Childrens Education - Company contribute Rs. 100 per year for each employee, which provides grants and scholarships to employees children. Personal Protective Equipment - All employees provided personal protective equipment. Contributory Provident Fund - 8.3% deducted from wages with equal amount contributed by the company. Working Hours - : 8hr/shift (inclusive of lunch & tea breaks) Workers Participation in Companys profit - 5% of Net profit is contributed towards the fund.

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Leaves - 8 sick; 10 casual, 14 earned leaves annually and 12 Weeks maternity leaves. Canteen - Self-service canteen where subsidized hygienic food is served round the clock. Dowry - Daughter Marriage - Besides dowry Funds paid by the Social Security Rs. 3000/- each is paid by the Mills for first two daughters. Water Purification Plant Recreational/Sports Facilities Carriage of Dead Body - Paid by the Mills depending on the distance covered. Colony - Employees provided free accommodation with recreation facilities. o Family Quarters - 470 o Number of residing single - 500 Utilities - Free Electricity, gas and water to colony residents. Transportation - Pick and drop facility for female employees

Industrial Relations
Compliance of All Applicable Labor Laws
KML comply with all applicable labor laws: Factories Act, 1934 - Law regulating labor in factories West Pakistan Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 - Law relating to Industrial and Commercial employment.

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Industrial Relations Ordinance, 1969 - Law relating to the formation of Trade Unions; regulating of relations between employees and workmen and avoidance and settlement of any differences or disputes arising between them. Provincial Employees Social Security Ordinance, 1965 - Scheme for providing benefits to certain employees or their dependents in the event of sickness, maternity, injury or death etc. Employees Old-Age Benefits Act, 1976 - Act relating to old age pension for person employed in industrial, commercial and other organizations. Employment Children Act, 1991 - Act to prohibit employment of children.. Company Profits (Workers Participation) Act, 1968 - Act to provide for participation of workers in company profits. Workers Children (Education) Ordinance, 1972 - Law relating to education of workers children. Workmens Compensation Act, 1923 - An Act to provide for the payment by employers to workmen for compensation relating to injury by accident.

Health & Welfare Benefits

Health & Safety is essential for their success. The principles by which they operate: All work related injuries and illnesses are preventable. Compliance with local regulations is a priority. Line Management accountable in Health &Safety performance. Energy, water and other resources, both natural and man-made, will be utilized efficiently to minimize waste

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Policies to regulate Health & Safety of employees and operations Health & Safety Policy

To prevent accidents or incidents this may result in injury. To ensure healthy and safe working conditions by identifying and eliminating all occupational health and safety hazards. To continuously monitor and evaluate the effectiveness or the safety performance of all Group Companies.

Occupational Health
The first aid services and trained first aiders are available on the site at all times. Personnel suffering from any injuries, infectious diseases, infections or rashes, or contact with infectious diseases must report these to their immediate supervisor.

Monitoring
Potential hazards which can include exposure to dusts, harmful vapors and unacceptable high noise levels will be eliminated as far as practicable and when this is not possible full personal protection will be provided.

Accident & Work Related III-Health Reporting, Notification & Investigation It is KMLG policy that all accidents including non-injury accidents and related conditions of ill-health MUST be Reported-usually by the person injured or involved. Noise Level To maintain work environment that does not subject employees to noise levels, which could result in a loss of hearing capability. Company must carry out noise monitoring

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to ensure that employees are not exposed to noise levels that exceed the company standard of 85 dB (A)

Personal Protective Equipment

It is the policy of the KML to prevent exposure of staff to harmful substances and physical hazards so far as is reasonably practicable. Following appropriate engineering controls, consideration MUST be given to whether additional protection should be provided in the form of personal equipment. Risk to eyes, face, head, skin, hands, ears, and feet should be assessed for each activity and appropriate protective equipment provided.

Tobacco Smoking Policy It is the policy of the KML to provide a health environment for all employees and to encourage a healthy lifestyle to help reduce health risks. Employees who do not smoke MUST not be exposed to tobacco smoke. To this end, one goal should be to become totally non-smoking at site.

Committee
Health & Safety Committee

First Aid
First Aid Boxes Trained First Aiders Social Security Dispensary/ITC

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Fire Safety
Separate Fire Section Fire Hydrant System Fire Extinguishers Operating Instructions in Local Language Fire Fighting Training Monthly Fire Equipment Inspection Record/History of Fire Equipment Fire Incidents Notification

Chemical Safety
Proper Storage of Hazardous Chemicals Material Safety Data Sheets in Local Language Safety Signs & Posters Chemical Handling Training Personal Protective Equipment & Emergency Showers

Workers Awareness
Workers Hand Book Health & Safety Manual sops & Awareness Training Health & Safety Notice Boards

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Social Compliance
Social Responsibility is one of the central values of Maple Leaf Group. KML follow and meet all the requirements of SA-8000 standards and believe in social responsible trading. Child Labor Forced Labor Health and Safety Discrimination Disciplinary Practices Working Hours Compensation Management System Freedom of association and right of Collective Bargaining One company of KMLG Group has achieved SA-8000 certification Handy cap Quota is currently 1.2% in KML out of 2% standard

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Human Resource Policies

Human Resources policies reflect the Groups over-all purpose and culture. KML revise its policies every 2 years. A list of policies published in the KML is as follows; 1. Recruitment Policy

To recruit and retain capable and qualified employees. Placing right people on the right job that is willing to contribute their best efforts to accomplish objective of the organization 2. Performance Appraisal & Management System

To assist the extent to which employees are performing their job effectively and to propose measures to enhance utilization of their potential. It provides an opportunity to reward good performance and to pin point areas needing improvement. 3. Promotion Policy

To promote people from within whenever possible, provided suitable person with requisite academic/technical qualification with necessary experience capacity of hard work and shouldering responsibility are available 4. Engagement of Management Trainee Policy

To induct young qualified professionals at entry levels to meet the future requirement of the company and impart systematic training to develop potential leaders 5. Car Policy

To provide guideline to define, monitor and administer the policy regarding company, maintained car allotted to certain categories.

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6.

In country Travel Policy

The purpose of this policy is to set-forth travel rules for the employees and to determine reimbursable entitlement for various expenses incurred when they are on the company's business within Pakistan

7.

Transfer Policy

The purpose of this policy is to set-forth transfer rules for employees within the group companies. The principle governing the transfer shall be the interest of the Kohinoor Mills Limited. 8. Training & Development

KGML is committed to excellence in training and development of its manpower appropriate to their duties / responsibilities. The objective is to impart knowledge, develop skills and bring about a change in the attitude of employees. It will enable to achieve company's objectives as efficiently and effectively as possible and to provide the opportunity for employees to realize & achieve development of KGML personnel. 9. Succession Policy

To identify successor to key jobs and high potential employees to assure a study flow of internal talent to fill important openings. To encourage "hiring from within" and create an environment in which employees have career and not merely jobs. To identify Human Resources Shortage and skill deficiencies before opening occurs which will ensure greater continuity of operations and availability of qualified incumbent.

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10.

Retirement Policy

To fix age, at which most people normally retire for work, enabling the company to do succession planning and induction of new blood in the organization. 11. Overseas Travel Policy

The purpose of these rules is to set forth travel instructions for the employees and to determine reimbursable entitlement for various expenses incurred when they travel on the Company's Business outside Pakistan 12. Record Policy

To provide guide-lines for the retention of useful records for reasonable period and destroy after lapse of certain period keeping in view its utility. 13. IT Policy

The overall objective of having IT Policies and procedures is to protect the integrity, confidentiality, and availability of information. The primary threats either accidental or deliberate that keep an organization from attaining this goal are unauthorized access, modification and destruction, as well incompatible hardware, poor quality networks and non standardized or illegal software. 14. Security Policy

The purpose of these rules is to set-forth security instructions and continuously monitors & evaluates security performance and effectiveness of all Group Companies. To prevent theft, pilferage of material/information and regulate entry of only authorized personnel in the Mills premises. 15. 16. Grade & Salary Structure Tobacco Policy

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17. 18. 19. 20. 21.

Accident work related Reporting, Notification & investigation Grade & Salary Structure MIS-Human Resources

Human Resource Information System

Maintaining an up to date record of employees working in the organization is critical. KML is also doing this job both on software as well as on the papers. Besides a lot of paper work KML is using Oracle 11i where lot of information is stored regarding employees working in the organization like; Employees personal bio-data and payroll system etc. A separate Time and Attendance System is to be launched for which KML has received no. of offers from different vendors and for one which they did test checking for the period of one month is A to Z technologies situated in Lahore. KML has its own production house in Lahore called IT department. But initially they rely on using fox-pro and clippers. Payroll System is the interface between Human Resource department and the finance Department.

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Human Resource Documentation

A huge stock of stationary can be found in the HR Department of KML regarding employee records because their HR Department keeps an up to date record of each and every activity of its employee like; Job Analysis, Job Descriptions, Job Evaluations, paid time off and bulk of other important record. Personal Files of Employees are maintained and following is included in it; 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. Personal Requisition Form Application for employment Performa Personal Particulars Testimonials Applicants ID card Applicants Photograph Experience Certificate Written Test Mark Sheet Interview Rating Form Medical Certificate Selection Process Report Applicant Appraisal Form Appointment letter Joining Report Induction Training Form Confirmation Letter

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17. 18. 19. 20.

Training & Development Plan Personal Data Sheet Personal Status Form EFU

These files are kept for the whole life of the organization. All the Govt. policies awards and schemes and allowances are accordingly updated and benefits are transferred to the employees.

Recruitment & Selection

Human Resource department offers for the employment whenever a vacancy arises. A written test is also conducted before screening interview Human Resource Department does the preliminary screening. Immediate supervisor with the consent of Human Resource department make selection of an employee. All the screening, recruiting and selection process is documented Usually Panel interview is conducted. Manager of the particular department makes final selection

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Source Of Recruitment
There are two kinds of source Kohinoor Mills Limited uses for recruitment .They are 1. External source 2. Internal source. We try to discuss all relative sources which are used for recruitment in Kohinoor Mills Limited.

Internal Source
Kohinoor Mills Limited thinks that current employees are a major source of recruits for all but entry-level positions. Whether for promotions or for Lateral job transfers, internal candidates already know the informal organization and have detailed information about its formal policies and procedures. Promotions and transfer are typically decided by operating managers with little involvement by HR department.

Job-Posting Programs
HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information. The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employees personal objectives. 36

Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions.

Departing Employees
An often overlooked source of recruiters consists of departing employees. Many employees leave because they can no longer work the traditional 40 hours work week .School, child care needs and other commitments are the common reason. Some might gladly stay if they could rearrange their hours of work or their responsibilities .Instead, they quit when a transfer to a part-time job may retain their valuable skill and training. Even if part-time work is not a solution, a temporary leave of absence may satisfy the employee and some future recruiting need of the employer.

External source
When job opening cannot be filled internally, the HR department of KOHINOOR MILLS LIMITED must look outside the organization for applicants. We discuss all the external source of recruitment at bellow:

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Walk-ins and Write-ins

Walk-ins are some seekers who arrived at the HR department of KOHINOOR MILLS LIMITED in search of a job; Write-ins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months.

Employee referrals
Employees may refer job seekers to the HR department .Employee referrals have several advantages .Employees with hard to find job skill may no others who do the same work. Employees referrals are excellent and legal recruitment technique, but they tend to maintain the status quo of the work force in term of raise , religions , sex and other characteristics , possibly leading to charges of discrimination.

Advertising
Want ads describe the job and the benefits, identify the employer, and tell those who are interested how to apply .They are most familiar form of employment advertising .for highly specialist requites, ads may be placed in professional journal or out of town newspaper in areas with high concentration of the desired skills

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Example: General Manager- production (ref: PM) -Age: 28-35 years; Graduate with specialization in garment mfg technology from NIFT or equiv. -Minimum 10 years experience in similar position of a unit with a minimum of 1000machines. -Must have detailed hands on knowledge of industrial engineering. We offer competitive salary which is commensurate with experience and qualification. If you aspire to an exiting and rewarding career , send your detailed resume, quoting your present and expected salaries to jobs.

Internet
Now today no body thinks anything without internet. So Kohinoor Mills Limited give their advertise at internet. Example: http://www.kohinoormills.com/

Steps of Hiring for New Vacancy

1. 2. 3. 4. Job Analysis Job Specifications Job Description Requisition Form

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5. 6. 7.

Database Written Exam Screening Interview

Recruitment of Permanent Workers

The concerned departments will raise a requisition to Incharge Time Office

A. The Incharge Time Office after checking the vacant posts will invite the applications and will ask the short listed candidates to fill the preliminary form attaching the copy of Identity Card, Metric Certificate or Certificate of more qualification, experience Certificate if any. Asstt. Labor Officer will verify his age and qualification and will sign the application form

B. A short interview will be taken by the General Manager/Managers from the concerned departments to check the candidate's eligibility/suitability for the job. The recommended applications will be forwarded to Manager HR & Assistant Manager HR & Administration who will accord final approval for recruitment. C. The Service Record Keeper will then issue a Trial Card and the worker will be allowed to go for Trial in the Mills Area for a period of maximum 03 days D. On completion of the trial period the concerned head of the department will declare fit on the specified column in the Trial Card or otherwise and the Assistant Labor Officer will countersign the Trial Card Form, otherwise in case of unfitness his service will be liable to be terminated

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E. The Service Record Keeper will than issue Nomination Form, Medical Slip and Mills Departmental Ticket to the worker for onward completion of necessary formalities/signed by the Concerned Authorities specified in the relevant column. F. An appointment letter will be issued by Assistant Labor Officer/Industrial Relations & Labor Welfare Officer after getting prior approval from Manager HR & Admin, hence workers will be taken on probation for a period of 03 months. G. The worker will be confirmed after satisfactory completion of 03 months probation period and to this effect, a confirmation letter will be issued to him duly H. After confirmation, the management can terminate the services of workers by giving 30 days notice in writing or 30 days pay to the company in lieu thereof.

Recruitment of Temporary Workers

A. The worker will fill an initial application form recommended by the Concerned Head of the Department and will attach thereof the copy of I.D. Card and Educational Certificate for submission to the Incharge Time Office. B. The Incharge Time Office after checking the vacant post will verify his age, qualification and other particulars from the documents attached which will be countersigned by the ALO C. A temporary appointment letter will be issued to the worker duly signed by the IR & LWO. The letter will be issued on purely temporary basis till the completion of job not exceeding than 90 days (3 Months).

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Performance Management
Performance appraisal is the process of assessing employees past performance, primarily for reward, promotion and staff development purposes. Performance appraisal (is) a process that identifies, evaluates and develops employee performance to meet employee and organisational goals. Performance Appraisal doesnt necessarily use to blame or to provide a disciplinary action.Previous management theories used to view performance appraisal as a stick that management has introduced to beat people. Performance appraisals are now more clarified and they concentrate on developing organizational strengths and employee performance.

Employees are given promotion subject to the conditions that vacancy and competency No training is provided for those who conduct interviews. HRO checks the references. References check is not documented. Turnover rate is 7% in the last 6 months

Purpose of Performance Appraisal in KOHINOOR MILLS LIMITED

To review past performance To assess training needs To help develop individuals

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To audit the skills within an organization To set targets for future performance To identify potential for promotion To provide legal & formal justification for employment decision To diagnose the hidden problems of an organization

For Reference See (Annex A)

Retirement
The retirement age at KML is 60 years. (Annex B)

Promotion
To promote people from within whenever possible, provided suitable person with requisite academic/technical qualification with necessary experience capacity of hard work and shouldering responsibility are available For Reference See (Annex C)

Exit Interview
An exit interview is conducted at the time of retirement or when an employee leaves the organization for any reason and that includes following questions; 1. What is your reason for leaving? 2. Why did you decide to seek employment elsewhere? 3. . Are there any other reasons why you are leaving? 4. Was your job here the way you thought it would be after hearing it described in job? 43

5. As an employee, were you given all of the information you needed to perform your job? 6. How did you feel about the quality of training you received for your job? 7. How did you feel about the supervision in your unit? 8. How did you feel about your rate of pay in relation to the type of work you did? 9. How did you feel about opportunities for advancement within the company? 10. What do you think of company benefits? 11. What was the most common complaint of fellow employees? 12. What were the things you liked most about working here? 13. What were the things you like least about working here? 14. What changes would you make to make this a better place to work? 15. Would you refer friends to the KML? 16. Is there anything you would like to add about your reasons for leaving?

Employee Relations
KTM is Freedom of association and right of Collective Bargaining and believe in social responsible trading. KTM has three unions but they allow 0% outsiders; Labor Union; Is also the CBA Mazdoor Union Workers Union

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Succession Policy
It is the Company policy to identify successors in advance for key positions, which may create unusual situation at the time of recruitment or separation from the company. The succession policy is as under: Objective To identify Successor to key jobs and high potential employees to assure a steady flow of internal talent to fill important openings. . To encourage "hiring from within" and create an environment in which employees have careers and not merely jobs. To identify human resources shortages and skill deficiencies before opening occurs which will ensure greater continuity of operations and availability of qualified incumbents. Policy It is the Policy of KMLG to identify successors in advance for key positions, which may create unusual situation at the time of recruitment or separation from the company. Procedure Replacement Chart. Each unit will prepare its Replacement Chart (HRGP 19/F-O1) depicting all such positions covered under this policy. Replacement Charts are a visual representation of who will replace whom if there is an opening and based on two variables i.e. present performance and promotability. Replacement Chart will be reviewed after every two years, however, in case of any movement of any Executive it may be updated accordingly.

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Replacement Summary. Replacement Summary (HRGP 19/17-02) will be prepared as and when an employee attains age of 59 years or services notice of separation from the company. This provides considerably mare data than do replacement chart and follow decision-maker to make more informed choices. Human Resources Manager of each Group Company will be responsible for preparing the Replacement Summary for onward submission to the Chief Executive Officer.

Confidentiality Whether Replacement Chart or Summaries are used this information is normally kept confidential. Confidentiality not only guards the privacy of employees but also prevents dissatisfaction among those who are not immediately promotable. Preparation of Succession Plan Group General Manager Human Resources will arrange to initiate Succession Plan of Senior and key positions (Particularly employees in guards M-18 & Above) in the form of Replacement Chart and forward to the concerned Chief Executive who will finalize it in consultation with the Chairman. Succession Plan of Dept./Section Heads (in grades M-16 & M-17) will be initiated by the concerned Human Resources Manager and forwarded to the Chief Executive Officer who will finalize it in consultation with the Department Head. Implementation

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The Managing Director of each Group Company has the over-all responsibility for ensuring the implementation of this policy.

SWOT ANALYSIS
SWOT analysis means the analysis of strength , weakness, opportunity and threats . For Kohinoor Mills Limited Textiles Ltd. It is given below:

Strength
Kohinoor Mills Limited Textiles Ltd. Is a rapidly expending Company. All the units of the factory enjoy highly of machinery are imported from Germany, Switzerland, Italy & Japan . As a result it can maintain a smooth rate of production. Well trained human recourses are another strength of the Company . They train up their key personally in the country and abroad. So that the Company can get some competitive advantages over the competitions. The HRM practice is also remarkable.

Weakness
There are too many departments under the super vision of the general manager which can cause low productivity due to large span of super vision.

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Opportunity
There are bright opportunities for the Company in the overseas market . If is can communicate well and capture a significant market portion in the Europe and USA market, it can get scale of economic.

FINDINGS AND RECOMMEDATIONS

Findings: The size of the industry is still growing. Kohinoor Mills Limited Textiles Limited is one of the first movers in this sector. It has managed to be grown up as one of the countrys leading Textile Company. Its increase turnover has been significantly increasing. It is providing employment to a large number of skilled and unskilled people all over the country. Recommendations: From the analysis with the organization structure we have seen that its span of super vision is too large. A number of departments report directly to the general manager. If the number were less the efficiency and productivity of the organization might be increased. Quality control department should remain prompt always. So that it can maintain a certain level of standard as per the market demand to capture the foreign market share it should strive more.

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Conclusion
KML being the largest and oldest textile company in Pakistan has obtained all the quality assurance certificates which a company needs to be successful in the competitive global market. Top management and employees work side by side for continuous improvement of the quality. Employees are involved in decision making at every stage through different Employee Involvement program. The top management with the board develops strategies but involvement for supervisory division is also there. KML emphasize greatly on Human Resource practices and HR department is very much concerned about the betterment of employees. KML is working very well for making its employee more secure and stable in case of jobs. Kohinoor textile mills maintain a very stable system for quality management. They have separate divisions for each process, which contribute a lot in meeting the high standards. KML main strategy is "customers come first" and they fulfill their customer needs by constantly improving their quality and by doing so they produces one of the top quality textile products. There is excellent communication between the HR, Marketing, Sales and production department, which lead to increase the profit margin of the company.

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Recommendations For Improvement

Organizations big or small profit or unprofitable have problems and there are always chances of improvements. This is also the condition for Kohinoor Textile Mills Limited. As problems and difficulties have been identified, now here are some suggestions that may help the organization to improve. This is also the condition for Kohinoor Textile Mills Limited. As problems and difficulties have been identified, now here are some suggestions that may help the organization to improve In processing department there is a need of skilled workers. There are certain departments of processing in which employees have been working since long but their efficiency is not improved and unsatisfactory results come out sometimes. The skilled labor will not only improve the efficiency but also will improve effectiveness. There should be chances given to skilled workers to enter the organization. Job analysis should be done to know what are the jobs needed in the organization. I know some persons who are doing the job of two or three persons. There should be more fringe benefits for the employees taking into consideration there devotion skill and experience. This higher level would make the employees more efficient and effective. The first aid and other medical facilities should be provided to the employees with in the mill area. There is continuous working in the mill and every time there are chances of any accident or unpleasant incident. So in order to handle this type of situation the first aid dispensary should be there in the mill area.

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