FINAL Report on Sabro

Indus Institute Of Higher

Year 2009

Sabro PVT LTD

Business Administration

Department

Submitted to

Ms. Zara Muneer

Year : 2009

Prepared by

Ahmareen Abbas BBA-VII (Hons)

Sana Samad BBA-VIII (Hons)

Course Salary & Compensation

Prepared by

AKNOWLEDGEMENT

I acknowledge with gratitude the good will,

great energy, and keen intelligence exhibited by

M Raza Ali and Muhammad Umer Irfan whose

advice throughout has been exceedingly wise,

and whose, support has been precious.

TABLE OF CONTENTS

Introduction 1 Data Collection Method 2 Limitation 2 Mission Statement 2 Quality Policy 2 Organizational Structure 3 Human Resource Department 3

HUMAN RESOURCES INFORMATION SYSTEM 3 MISSION STATEMENT 3 VISION STATEMENT 3 HIERARCHY OF HR DEPARTMENT 4 ROLE AND FUNCTIONS OF HR DEPARTMENT IN SABRO 4 EMPLOYMENT CATEGORIES 5 HR INVENTORY 5

Recruitment & Selection 5 RECRUITMENT SOURCES 6

PERSONAL ASSESSMENT CRITERIA 8 Orientation 9 Training 10 Employee Development 12 Compensation & Benefits 13

JOB RELATED FEATURES 13

WAGES/SALARIES PLAN 13

WORKING HOURS & OVERTIME 14

DEDUCTION FROM WAGES/SALARIES 14

EQUAL EMPLOYMENT OPPORTUNITY ISSUES 15 PAY SCALE 15

EMPLOYEE/WORKMAN SCALE 15

EMPLOYEE BENEFITS 16

INCREMENT 17

OCCUPATIONAL HEALTH AND SAFETY 17

Performance Appraisals 18 PURPOSE AND USES 18

Confidential (Employee Appraisal Form) 19 Overall Rating System 21 PERFORMANCE MANAGEMENT SYSTEMS 22

IDENTIFYING & MEASURING EMPLOYEE PERFORMANCE 22

Recommendations 23 Conclusion 23

EXECUTIVE SUMMARY

“To serve the society with fervor along with acting as a model for its uplift and to

contribute in the development and promotion of hi-tech in the country”

We consider ourselves fortunate to have got the opportunity to work on SABRO PVT

LTD PAKISTAN for our salary and compensation project. Sabro (Pvt.) Ltd. is a pioneer

heating ventilation and air-conditioning system (HVAC) company in Pakistan.

The history dates back to four decades of continuous achievements. It started in the year

1968, when a dream became a reality. Three Brothers laid the foundation for one of the

biggest Air-Conditioning Company in South East Asia. After forty years of continuous

efforts and hard work, Sabro stands tall in the field of HVAC.Sabro strongly believes in

self reliance.

Sabro is the first and the largest Pakistani HVAC original equipment manufacturer that is

exporting to Kuwait, Qatar, Bahrain, Oman, UAE, Sirlanka, Saudi Arabia, Kenya,

Sabro has been the market leader in areas of its activity, its primary role has been to

design, manufacture, supply, install and maintain the air conditioning systems. In offering

solutions to clients, they keep the required international standards in focus.

The three entrepreneurs of exemplary drive who had the pioneering vision, the technical

know-how, professional competence and a firm determination to manufacture air-

conditioning equipment in Pakistan . Built upon a legacy of innovation and commitment,

their market-leading products and solutions are striving to help people live comfortable,

healthy and productive lives.

In the following report the main focus is on the HR department of the company and its

functions especially compensation strategies has been discussed comprehensively, as our

major concern is with the salary and compensation policies and strategies of the

company. However, brief overview of other functions such as recruitment, orientation

training and development performance appraisal are also mentioned in the report.

While discussing the compensation polices of the company we focused on the pay scale,

increments, deductions, overtime payments ,others befits provided to the employees etc

Unfortunately, we did not have enough resources to do a report on the head office of the

company which is situated in Islamabad. That is the reason we selected Sabro’s Karachi

branch from where we get the knowledge of HR department which is actually exists in

Islamabad

It took us 1 month to complete this report. Although we had time constraint but we tried

our best to cover all the functions of HR department in this report.

Indus Institute of Higher Education

1

Salary and Compensation

Introduction

The Sabro (S. A. Brothers (Pvt) Ltd) is an ISO-9001 certified air-conditioning manufacturing

company based at Islamabad, Pakistan, established in 1968. The three brothers sadiq, siddique

and Ashiq started it. They took Rs 500 loan and started a small workshop in Satellite Town

Rawalpindi which is today one of the leading organization in Pakistan.

The late sixties and early seventies trend of air-conditioning cinema buildings boosted the overall

sales of the air-conditioning industry. It was the superior management and the edge of technical

knowledge and the right products at the right time made Sabro successful, and technical

knowledge however helped them to make the required changes according to the customers need.

Today, Sabro is considered a pioneer and largest manufacturing organization in Pakistan. Sabro

officials are involved in achieving a new goal for their products to export. For the past three

years Sabro has been test exporting to the middle and central Asian countries.

Sabro group of companies is the biggest Air –conditioning manufacturer in Pakistan having

biggest product range in south East Asia. The company is enjoying the excellent credibility

among the Multinationals, Government, Corporations & private sector since 1968.The Company

possesses the capability of producing special, standard & nonstandard air conditioning units

ranging from domestic to industrial requirements. Sabro Technologies, a subsidiary of Sabro

group of companies, is engaged in manufacturing of Sheet Metal cutting dies; draw dies, moulds

and different kind of machines.

For the past three years Sabro has been testing exports to the middle and central Asian countries

and is directly facing the Japanese as well American competition. In Pakistan, “SABRO” is not

only a logo that has been the leader for the domestic competitor but it has been continuously

successful in irritating the foreign competition. The introduction of our Concordia Split type

series of air-conditioners in 1989 made Sabro visible to the general public. But it is very

luminous to the fact that Sabro brand name has been reliable, efficient and well known in

industrial air-conditioners for more than two decades.

It is a leader in split air-conditioners, air handling units, cold storage units, air cooled water

chillers, water cold water chillers, window unit, humidifier units, hot boiler units, air curtain

units, electric motors and geezers. Its more than 500 employees throughout the Pakistan are

active in the areas of designing, manufacturing, installing, repairing and marketing. Sabro Air-

Conditioning is at the top of the air conditioning corporations. They are active in 5 businesses,

varying from room air conditioners to domestic air conditioners (1.0 to 40 ton), and from remote

control device to software applications. Sabro are leader in cooling technologies for split air

conditioners, air handling units, cold storage units, air cooled water chillers, water cold water

chillers, window units, humidifier units, hot boilers, air curtain units, electric motors, geezers and

software products.

They have world-class solutions in cooling systems (room and central air-conditioners) for

personal and domestic uses where their investments in design and new materials are critical to

success. Sabro brand name is reliable, efficient and well known in industrial air-conditioner for

more than two decades.

Translated into figures, they produce over 3,000 air conditioners every year, and some 5,000

electric motors; and each year, their factories turn out is increasing rapidly. In Pakistan one in

five air conditioners, Sabro manufactured units are being installed.

Sabro Electric Lahore (Subsidiary)


2


Mars Karachi (Grease and Sales Karachi)

Sabro Technologies Islamabad (Machinery design and Making)

Data Collection Method Data can be collected through interviews, questionnaires, observations etc. Questionnaire was the

only tool that was used for the data collection in this research.

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

answers, usually within rather closely defined alternatives. Questionnaires could be administered

personally, mailed to the respondents or electronically distributed. However in the process of

collecting the data for this report; the questionnaire was personally administered questionnaire. I

was able to collect all the completed responses within a short period of time. Any doubts that the

respondents might have on any question was clarified on the spot. We had the opportunity to

introduce the report topic and motivate the respondents to offer their frank answers.

Limitation Researchers always strive to develop and implement a flawless study but the extraneous events

often place limitations on the project.

From our point of view, there is a major limitation in this study that stopped us to conduct the

research to the fullest extent. That limitation is time pressure. The time provided for this study

was too short that the data could not be collected according to need of the subject. The other

limitation is that management of the company is not very supportive and cooperative; the

relevant information provided by them is very limited. Apart from this, as the head office of the

company is situated in Islamabad so we are unable to visit it due to city limitations and all the

HR activities are controlled in Karachi from the main office as the HR dept of the company is in

Islamabad so all the information we get is just with the reference of head office.

Mission Statement

We at Sabro by will of Allah Almighty are on mission

To abide by Islamic rules & ways.

To fulfill our customer’s desire for quality products worth their price.

To support our employees through better career opportunity.

To sincerely back up our business alliances.

To provide highest possible return on shareholder’s investments.

To serve the society with fever, and act as model for its uplift.

To contribute in the development & promotion of Hi-technology in the country.

Quality Policy

We will strive to exceed our customer’s expectations through continues improvements in

quality of our product & services.


3


Organizational Structure

Human Resource Department

The human resource department in Sabro consists of two people at the moment. Mr Aitabar

Abbasi has been heading as Human Resource manager in Sabro for the last one-year and now

Mr.Kamran has also joined him as an assistant manager human resource. The importance of

human resource has been realized in the organization and a full fledge furnished office for the

human resource department is under construction. Also they are planning to recruit more people

to increase their Hr inventory.

HUMAN RESOURCES INFORMATION SYSTEM

During the present year a new Human Resource Information System is in process of

implementation to support the running of Human Resource Function. The system is built around

a central comprehensive database of all employees, which is linked to all areas of Human

Resource Management and assists the HR in its smooth functioning.

MISSION STATEMENT We provide quality HR services to attract, develop, motivate and retain a diverse workforce

within a supportive work environment. We do this with an emphasis on customer service based

on consultation and communication with the campus community.

VISION STATEMENT

The Human Resources ensures a diverse, qualified, healthy, and highly motivated workforce

focused on achieving the critical outcomes, through the development and administration of cost-

effective and results-oriented human resource policies, services, and practices.

MARKETING

FINANCE

HUMAN

RESOURCE

ENGINEERING

CEO


4


HIERARCHY OF HR DEPARTMENT

ROLE AND FUNCTIONS OF HR DEPARTMENT IN SABRO

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

Policy initiation and formulation.

Supply of manpower.

Testing job applications

Recruitment and selection.

Performance appraisal.

Compensation.

Carrier development.

Maintaining employee record.

Health and Safety (health programs, safety programs)

Training and Development (coaching, performance appraisal, post appraisal counseling,

job rotation, understudies, special broadening assignments, feedback)

Advice (on personnel policy, labor agreement, needs and welfare of company and

employees).

Control (monitoring performance and conformance of other departments to personnel

policy, procedures and practices).

Transfer, Promotion, Layoff (checking conformity of skills with new department in case

of transfer).

Benefits and Services (pensions, insurance programs, sick leave pay plans, loan funds,

social programs, recreational programs).

Personnel Information Systems (HR planning, skills inventories, employee benefits

analysis and productivity studies).

Personnel and Behavioral Research (improving worker productivity and also increasing

the quality of working life, employee attitudes and motivation, predicting success in

management and organizational relationships)

Under Consideration.

Compensation Administration (designing and installing job evaluation program, pay

structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and

salary surveys of the labor market).

ADMINISTRATION HUMAN

RESOURCE

DEVELOPMENT

HUMAN RESOURCES

GENERAL MANAGER

SECRETARY


5


NOTE: Some of the functions which are written above are under consideration by the

human resource department are planning their implementation.

EMPLOYMENT CATEGORIES

Permanent Employee:

A permanent employee is one who is given with appointment letter of S.a Brothers Pvt ltd &

whose job is expected to continue for a period of more than 9 Months.

Contractor Employee:

A contract employee is one who is appointed through the contractor of S.A.Brothers Pvt ltd,

given with an appointment letter of contractor.

Contracts or Seasonal Employee:

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

Probationer:

Any employee whether he is permanent or contractor’s employee will remain on probation of six

months. Until the completion of his probation, he will be considered as Probationer.

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

HR INVENTORY

Number of employees in the Karachi branch 325

Number of permanent employees 225

Number of Contract employees 100

Recruitment & Selection

Planning The Recruitment Process

The human resource department plans the recruitment process. It is wholly their responsibility to

plan the recruitment process.

Decisions On Vacancies

The department in which the human resource is required requests for the increase in their

inventory to the human resource department. Before deciding on the existence of a vacancy,

Human resource department checks whether there is a need for the work to be carried out at all

or whether it can be incorporated into an existing employee’s job. In case an external source is

needed, HR department then checks whether it should be a permanent, full-time employee or

whether it should be a contractual one.

Working Out The Sort Of Person Required

The human resource management and the concerned department head then list the duties,

responsibilities, authority and relationships that the job involves. They decide what qualifications

are needed, what type and length of experience are required, and what personal attributes are

important. On this basis they then draw up an up-to-date job description and person specification

and proceed to forecast how soon the person is expected to be competent, what training they are

prepared to give and when the start date of the job should be.


6


RECRUITMENT SOURCES:

Internal Vs External Sources

Internal recruitment is currently the trend at SABRO as it is still in its infancy but once all

vacancies are filled, the organization will switch over to external sources. The philosophy behind

internal recruitment sources is that a sample of applicants are generated who are well known to

the firm, these applicants are relatively knowledgeable about the company’s vacancies which

minimizes the possibility of inflated expectations about the job and above all, it is faster to fill

vacancies internally and also an inexpensive process.

Direct Applicants And Referrals

Direct applicants are people who apply for a vacancy without prompting from the organization.

Referrals are people who are prompted to apply by someone within the organization. Sabro uses

both sources of recruits, direct applications are more entertained and the referrals work in the

case of lower level jobs, which mostly comprises of factory workers.

Advertisements In Newspapers

HR department gives BLIND BOX Ads in leading newspapers. Sabro management believes that

these generate less desirable recruits and at a greater expense. Two points that Hr manager

especially notes in designing the job advertisements:

What to say:

The organization tries its utmost to give enough information to persons reading an ad to evaluate

the job and its requirements, allowing them to make a well-informed judgment regarding their

qualifications. Sometimes this means running longer advertisements, which costs more.

However, these additional costs are evaluated against the costs of processing a huge number of

applicants who are not reasonably qualified or who would not find the job acceptable once they

learn more about it. These large advertisements are given mostly in the executive jobs.

To whom to say it:

Right now they are involved in general advertising but are trying to reach specific parts of the

overall labor market. In some cases they need to target the specific labor force due to the specific

requirements of the job.

INTERNAL RECRUITMENT

Finding Out The Right Persons:

The HR management then speculates whether they are likely to find the qualities, qualifications

and experience that they are seeking in one person. If so, research is carried out on the kind of

pay and benefits package to offer. They do this through monitoring advertisements, referring to

salary surveys and networking with other employers in their area and sector.

Planning On How To Find Them:

The HR management gives priority to its own employees even in case of a negative assessment.

They first advertise the post internally, both as a courtesy to staff and because they may pass the

information on to any interested friends and relations. Word of mouth is also a valuable

recruitment method for them and they draw on all appropriate contacts they have.


7


EXTERNAL RECRUITMENT

Decision On Whether To Advertise:

Once the HR management decides that there is a need to advertise, they pinpoint the part of the

press that they need to contact. Since most of the posts are of a specialist nature, they intend on

advertising on Sunday in the Daily “Jung” and the “Dawn”.

Writing The Advertisement:

Their job advertisements are very confidential and they only mention the PO Box #. The

company name is kept under confidentiality to avoid any sort of referrals, which can affect their

choice of the applicant. Small ads are given for lower or small level jobs and detailed and large

ads are given for high level or large jobs.

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

The qualification and experience required including hands-on experience, internal and

external experience.

The personal qualities sought including age, gender etc.

Where the job is based.

What form of reply is demanded (CV or request for an application form).

DRAWING UP A SHORT LIST Then the HR management decides on the length of the short-list, which includes five or six

people at the most. It also varies from job to job but most of the time 5 or 6 people are short-

listed. Following the advert they need help to sift through the applications. In case they run short

of time, they get the help of other staff, supervisors and managers in the organization. Apart from

the question of time, they do this to get second opinions. They look out for the following when

reading an application:

How well-matched is the candidate to the requirements

The quality of presentation

INTERVIEWING POTENTIAL CANDIDATES The candidates that are screened out are then called for interviews. A date and a time are arranged and the

candidate appears for the interview. The questions of this interview are designed especially for

gauging the personality and ability of the candidate. At time the interview is structured and at

times it is unstructured and it also depends on the nature of the job, which is under consideration.

The department heads mostly conducts technical interviews, while the Hr management in Sabro

mostly carries the non-technical interviews. Most of the times both are present at the time of the

interview.

THE SCREENING PROCESS The results are screened by a set of panelists in order to minimize chances of error in selecting

the candidates. The HR management sometimes keeps a small number of candidates in reserve.


8


PERSONAL ASSESSMENT CRITERIA:

Scale Office Staff Qualification Experience

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

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

3 Store Keeper, purchaser

Telephone operator

FA 2 years or Matric/FA + 2/1 year

experience of Sabro in relevant

field+ Test

4 Cashier, Accounts /Sales/

Marketing Assistant,

Graduation 3 years or Matric/ FA + 4/ 2 year

experience in relevant field+ Test

5 Accountant, C.S Officer,

Excise Officer, Store Officer

Graduation 5years or FA + 5 years of Sabro in

relevant field + Test

6 Admin officer, Accounts

Officer

B.Com/BSc 5years or FA + 5 years of Sabro in

relevant field + Test

7 Trainee Executive, Executive,

Secretary, HRO

Post Graduate

,ICMA,CA Inter

Fresh

8 Executive, Exe Finance, Exe

Sales, Exe Marketing

Post Graduate

,ICMA,CA Inter

3 years or 1 year in Sabro

9 Manager Post Graduate

,ICMA,CA Inter

7 years or 5 years in Sabro as

Executive + Test

10 AVP Post Graduate

,ICMA,CA Inter

5 Years in Sabro as Manager( Only

promotional post)

Scale Factory Staff Qualification Experience

1 Helper (Technical) Matric Fresh

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

Committee

3 Skilled Worker/

Mechanic/Welder

Technical diploma Fresh or Matric + 5 years in Sabro+

Test by promotion committee

4 Junior Supervisor /.Q.

Inspector

Technical diploma/

Graduation

2 years or Matric+7 years in

Sabro+Test or DAE +2 year in Sabro

5 Design Supervisor/Associate

Engineer/J. sales Engineer

DAE/Technical

diploma

DAE Fresh/5 years or Matric +10

years in Sabro + Test


9


Note

All promotions are subject to the vacant post & minimum criteria as mentioned in the

above table.

Promotion test will be designed by Promotion committee keeping in view the skill required for

the post.

Orientation

Introducing The Recruit To The Organization And The Department:

The newcomer is informed of housekeeping arrangements and provided with the employee

handbook. He/she is given copies of the necessary documentation, the organization chart and job

description etc. The department head as well as the human resource manager introduces the new

recruit to the department and team in which he/she will be working. There is an informal tea for

the new recruit, which is attended by the higher management including the Executive vice

president and vice presidents.

Emphasising The Importance Of Organization Policies And Procedures:

New employees are made aware at an early stage of policies and regulations based on legislation.

Other procedures based on national standards and other schemes are also introduced.

Planning A Balanced Introduction To The Work:

No matter how the training is done, a mix of explanation, observation, practice and

feedback is continuously dispersed. Information overload is avoided. The new employee is

straightaway given real work to do to avoid boredom and to give early opportunities for

achievement. The Hr manager does all these as he has a counseling session with the new recruit.

Clarifying Performance Standards:

The performance levels required are made clear from the outset since HR management is aware

of the fact that employees cannot be expected to meet standards of which they are unaware. So

the Hr manager explains some of the standards and some are explained by the department head

Supervisor

6 Tech Supervisor/Web

Developer/Purchase

officer/Foreman/Production

coordinator

DAE/Technical

diploma

7 years or Matric +12 years in Sabro

+ Test

7 Trainee Engineer/Gen.

Foreman

BSc/BE/MCS/BCS Fresh

8 Engineer/Software

Developer

MCS/BCS/BSc/BE/DA

E

3 Years or Trainee Eng+ 1 years in

Sabro / DAE + 6 Years in Sabro+Test

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

Executive + Test or DAE + 15 years

in Sabro

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

promotional post)


10


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

the orientation day

Training

EMPLOYEES TRAINING Training is the organized procedure by which people learn knowledge and/or skills for a definite

purpose. Almost every employee hired by an organization will require some training in his or her

job. Some training programs may be more extensive than others, but all require the trainer to

have identified content and subject matter needed in the training and tasks to be performed on the

job to ensure that the training will prepare individuals to perform the job effectively. Many firms

provide new employees with copies of the descriptions and specifications for the jobs to which

they have been assigned. This aids in orienting them and acquainting them with what they are

expected to do.

DESIGNING EFFECTIVE TRAINING SYSTEMS Sabro’s management uses an “Instructional design process” (which refers to a systematic

approach for developing training programs). It consists of the following:

CONDUCTING NEEDS ASSESSMENT There are different pressure points that suggest whether training is necessary such as

performance problems, new technology, job redesign, new legislation, new services or

employees’ lack of basic skills. Some of the trainings are mandatory for every department. For

example they have fire-fighting training for every department and there are fire-fighting teams

consisting of mostly young guys who are trained for the fire fighting.

CREATING A LEARNING ENVIRONMENT For employees to acquire knowledge and skills in the training program and apply this

information to their jobs, the training program’s applied by the Hr manager includes specific

learning principles. Following are some of the principles followed by Sabro

Employees Need To Know Why They Should Learn Sabro’s HR management realizes that employees learn best when they understand the purpose

and expected outcome of training activities. They explain to the trainers why the training is

needed and why it will be better for them to take the training.

Employees Use Their Own Experiences As A Basis For Learning: Since employees are more likely to learn when the training is linked to their current job

experiences and tasks, hence they are provided an environment that is identical to the

environment they will be working in.

Employees Need To Have Opportunities To Practice: Practice involves having the employee demonstrate the knowledge, skill or behavior emphasized

in the training objectives under the conditions and performance standards specified by the

objective. For example for the fire fighting training they create a fake fire situation and

employees are given a chance to cope up in this sort of situation themselves.


11


Employees Feedback: Employees are given constant feed back so that they can remove their mistakes and come up to

the training needs. This feed back is not only given at the end of the training but it is also given

during the training to make them realize their mistakes and to improve the areas where training is

required.

TRAINING METHODS

Presentation Techniques These involve traditional classroom instruction, distance learning and audiovisual techniques.

They are used ideally for presenting new facts, information, different philosophies and

alternative problem-solving solutions or processes. They consist of:

Classroom Instruction: The trainer lectures a group. In many cases the lecture is supplemented with question-and-answer

periods and discussions. The instructor tries to build active participation, job-related examples,

and exercises into traditional classroom instruction so that trainees will learn and use the

information presented on their job. This type of training is done for mostly managerial level jobs.

Distance Leaning: The Head Office to provide information about new services, policies or procedures as well as

skills training and expert lectures uses it. It involves two-way communication between people. It

includes audio conferencing, videoconferencing and document conferencing (this allows

employees to collaborate on a shared document via computers).

Audiovisual Techniques: This is a common method used by Sabro that involves overheads, slides and video.

Video is the more popular instructional method. It is being used by the

organization for improving communication skills, interviewing skills and customer

service skills and for illustrating how procedures should be followed. It is usually

used in conjunction with lectures to show trainees’ real life experiences and

examples.

HANDS-ON TECHNIQUES

On-The-Job Training:

It is used for newly hired employees, upgrading the skills of experienced

employees when new technology is introduced; cross-training employees within a

department or work unit, and orienting transferred or promoted employees to their

new jobs. The basic philosophy of the HR management of Sabro is that employees

learn through observing peers or managers performing the job and trying to imitate

their behavior.

Off The Job Training:

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

days.


12


Employee Development

DEVELOPING HUMAN RESOURCES The HR manager of Sabro ensures that employees have the necessary skills to perform current

and future jobs. Because of the new technology and the quality movement in this field, Sabro

believes in work performed by teams. Hence, managers and employees develop skills to be

successful in a team environment. Because many employees value work that is personally

rewarding and does not interfere with non-work activities, the HR management also helps

employees identify their work interests and goals and cope with issues such as balancing work

and family roles. This area of Sabro’s human resource management deals with:

Ensuring that employees have the skills needed to perform their current job

Preparing employees for future work roles

Identifying employees’ work interests, goals and values and other career issues

FORMAL EDUCATION Separate education programs are offered for supervisors, middle managers and executives.

Special programs for particular jobs are also offered. If a manger or a supervisor or employees at

even lower management are given a 50% loan from the company foe the education purposes.

Some times the education is fully supported by the company if it can enhance their working

skills. The company gives its entire loan from its own budget. They have made a policy this year

that they will take no loan from the bank for any purpose, so whatever loan they give they give it

from their own budget.

Job Rotation

It involves providing employees with a series of job assignments in various functional areas of

the company or movement among jobs in a single functional area or department. Management

does this to help employees gain an overall appreciation of the company’s goals, increase their

understanding of different company functions, develop a network of contacts, and improve their

problem-solving and decision-making skills. Although this activity is not that common but at

times it is practiced occasionally

TRANSFER When an employee moves from one position to another position, whether inter- or intra-

departmental. Transfers fall into three categories:

Promotion

When a vacant position is filled by a current employee who moves from one position to another

position assigned to a higher classification level.

Lateral

When a vacant position is filled by a current employee who moves from one position to another

position assigned to the same classification level.

Interdepartmental Transfer

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


13


Compensation & Benifits

COMPENSATING HUMAN RESOURCES Besides interesting work, pay and benefits are the most important incentives that companies can

offer employees in exchange for contributing to productivity, quality and customer service. Also,

pay and benefits are used to reward employees’ membership in the company and attract new

employees. The positive influence of new work designs, new technology, and the quality

movement on productivity can be damaged if employees are not satisfied with the level of pay

and benefits or believe pay and benefits are unfairly distributed.

JOB RELATED FEATURES

Job Analysis& Job Design:

The HR management at Sabro has not yet started the job analysis rather it is done by the quality

assurance department. The human resource department will be starting the job analysis in the

Job Evaluation:

The Hr management is not aware of the job evaluation although they have distributed the jobs in

several scales and made the compensation system on the bases of that scale system. They said

that job evaluation is properly being done by the quality assurance people and will be taken over

by the Hr department in the near future.

Job Description:

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

HR department.

Downward Communication:

For downward communication they use notice boards.

Inter Office Departments Communication:

For inter office communication they use Emails and letters.

News Letter:

They had newsletter called “Sabro Today” which has not been published for the last two

months.

WAGES/SALARIES PLAN

Wages and Salaries administration is one of the most important Managerial function, it deals

with all aspects of employee’s compensation. Wages/Salary is the remuneration paid to the

employees in return for their services.

It can save an organization cost involved with high turn over while attracting, retaining and

motivating capable and productive employees. It is a means of measuring the relative value of a

job to an establishment; with this objective the most highly valued jobs to receive the highest pay

and lowest values to receive the least. Such measurements can be used as a foundation for

determining and equitable wage/salary structure.


14


The jobs are being evaluated on the basis of mental and physical efforts and accountability, that

is why the jobs are grouped in to grades according to measurable difference in leaves of duties

and responsibilities.

The Company has determined its Wages/Salaries structure to attract, retain and motivate quality

employee keeping in view the local market and financial commitment of the establishment.

Minimum Wages/Salary:

Amended schedule Section 3 of Ordinance 1969 rate of

Total minimum wages for unskilled worker (Inclusive of all Colas)

With.effect.from 1st July 2008 Rs.6000.00

WORKING HOURS & OVERTIME Normal working hours will be 9 hr a day (including 1 hr break) & 48 hr in a week. Any work

performed by an employee up to scale 4 in excess of normal 48 working hours, will be

considered as overtime. Minimum pay for the drivers will be Rs.2900 & they will be paid single

over time i.e. according to the basic salary. Any employee may be required to stay at over time

when necessary even on holidays, on written permission of department head.

The rate of overtime payment will be on pro rata basis according to basic salary of concerned

employee

i.e.

Basic Salary/30*2.

DEDUCTION FROM WAGES/SALARIES:

The following deductions from Wages/Salaries will be permissible:

Fine

Deduction for absence from duty

Deduction for damages to all loss of goods entrusted to the employee for custody.

For the loss of money for which he is required to account due to his neglect or default.

Deduction for recovery of advance or for adjustment of over payment of wages.

Deduction under the order of Court of Law.

If the employee has finished all of his/her annual leave but wishes to take days off, with

prior approval from PM/DD, the employee can use leave without pay and his/her salary

will be deducted based on the number of days off and salary level. Earnings per day will be

computed from monthly salary based on the number of monthly working days of 22. The

formula to calculate earnings during the month is as follows:

(MS:/22) * DW = ES

Where:

ES : Salary earned during the month

MS : Full monthly salary

DW : Number of days worked


15


Equal Employment Opportunity Issues

Current Issues Regarding And Equal Employment Opportunity:

Based on:

Race

Gender

Nationality

Religion

Disability

Age

Sabro has one of the major diversity issues, which is gender discrimination as there are no

female employees in Sabro, which is a bit surprising for such a big organization. Secondly they

also do not entertain the disable people and the third thing, which we noted, was that the average

age limit in the organization was 20-30 for the worker class.

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

employees.

EMPLOYEE/WORKMAN SCALE

Scale No.1 To 4(Workers To Junior Supervisors):

Any person doing skilled, un-skilled, clerical or manual work falls in these scales. It is important

that these employees/workmen must qualify the job criterion given in the Selection & promotion

schedule/Annexure pertaining to their respective categories.

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

Any person falling in scales 5 & 6 will be doing supervisory job and under whom a set number

of employees/workmen perform their job. He is charged with the responsibility of supervising

their work and has administrative control over them. He shall be responsible for the jobs

assigned to him and he is empowered to do the following:

i. To make the schedule of work

ii. To monitor the work

iii. To recommend leave for employees/workmen.

iv. To make appraisals of the performance of workmen/employees.

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

Being in supervisory category he is not entitled for overtime or any specific job allowance

because while determining his salary, the extra time was considered.

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

Executive means qualified person proficient in technical skill and having ability and motivation

to execute plans given by the Management. He has to achieve set targets of his section. He is

required to co-ordinate with other section/department.

An executive undergoing training for 1 year will be Executive trainee. After successful training

if there is vacancy he will be offered regular post.

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


16


He is not entitled to any overtime. However will be paid stipend during training.

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

Manager is the in charge of Wing/Division/Department/Factory and is empowered to administer

and manage affairs or his segment. He is responsible for setting up of job objectives for his

segment. He is responsible to the Senior Management for the achievement of objectives and

smooth functioning of his segment or as job assigned to him.

Functions Of A Manager Include:

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

ii. To maintain well-designed organization that produce operating results and

development of human resources.

iii. To determine manpower requirement in advance.

iv. To have communication with subordinate and understand.

v. To appraise his subordinate objectively and growth potential

vi. To identify potential employee and indicate their best utilization.

vii. To schedule in advance plan best worker for best job and their replacement.

viii. To keep his Organization well staffed.

He should qualify the Personnel Assessment Criteria given in the schedule. He is not entitled for

overtime or any specific job allowance.

Scale No.10 (Avp):

AVP is the controlling head in one or more departments for the purpose of Administration. He is

responsible to VP/EVP/President for the overall affairs of the concerned departments.

Employee/Workman Scale

Scale No.1 to 4(Workers to junior Supervisors)

Any person doing skilled, un-skilled, clerical or manual work falls in these scales. It is important

that these employees/workmen must qualify the job criterion given in the Selection & promotion

schedule/Annexure pertaining to their respective categories.

EMPLOYEE BENEFITS These include:

Medical Facility

Death insurance

Disability Insurance

Pension

Pick and Drop Service

Medical Allowance

House rent allowance

Uniform allowance

Eid allowance

Health Insurance:

Every employee of the company is health insured as per labor laws of Pakistan. Managerial level

employees are given the medical allowance. The rest have the free medical check up facility.

They are issued a medical card, which authorizes them for a free medical checkup in Omer Ali

nursing home, and their authorized doctor is Dr. Qamar Ali.


17


Death Insurance:

All the employees are insured in case of death. They have a self-payment system in which the

employee is paid cash equal to the insurance rate, which, he is supposed to get.

Disability Insurance:

During work disability is insured from the employer’s side. Any permanent injury is insured

along with the medical treatment, which a person gets.

Pension:

Pension is given to all the permanent employees and only those who have completed ten years of

their service are eligible for pension.

Pick and Drop Service:

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

factory.

Medical Allowance:

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

chart.

House Rent:

It is paid to all the employees from scale 1 to scale 12.

Uniform Allowance:

It is also given to every employee from scale 1 to scale 12. . Amounts are mentioned in the pay

scale chart.

Eid allowance:

It is given to every employee in accordance with the base salary of the employees. Mostly given

on Eid-Ul- Fitar.

INCREMENT Annual increment will be paid in the month of July each year according to pay scale chart.

Minimum length of service for entitlement of Increment will be one year. Merit increment

cannot be claim as right, however these will be at the sole discretion of management, on the basis

of employee’s performance after probation period.

OCCUPATIONAL HEALTH AND SAFETY

Purpose:

To set out the Sabro’s commitment to a safe and healthy work environment and to outline

responsibilities for pro-actively managing risks and preventing accidents.

Responsibilities:

The President has ultimate accountability for providing and maintaining a safe and healthy work

environment. Managers, Foramen, supervisors of staff and others in positions of responsibility

share the accountability for managing health and safety within their areas of control as an

integral feature of their day-to day activities.

Managers & Foremen

They will take all practicable steps to provide and maintain a safe and healthy work environment

by:


18


establishing and implementing appropriate standards and procedures;

establishing and insisting upon safe methods, safe equipment, proper materials, and safe

practices at all times;

providing effective training for staff as appropriate and;

Complying with current Sabro’s policy, legislative requirements and relevant standards.

Supervisors / In charge

They are responsible for the health and safety of staff members in the same way that they are

responsible for quality, efficiency and maintenance. Safety will take precedence over short cuts

and expediency at all times.

Staff Members

They are responsible for observing safe work practices, following Sabro procedures and

complying with relevant work standards and statutory obligations. Staff will be encouraged to

participate in health and safety forums.

Performance Appraisals

PERFORMANCE APPRAISALS The HR management has set clear-cut standards of performance for every job. The performance

appraisal designed by the HR management involves getting information about how well each

employee is performing his/her job in order to reward those who are effective, improve the

performance of those who are ineffective, or provide a written justification for why the poor

performer should be disciplined. Their performance is base on qualification and experience.

Their performance appraisal formula is

Desierd – Actual Performance

The immediate boss checks the performance of the employees. Last year the performance

evaluation of the higher management started because it never existed before that. Now days Hr

management is planning to start the 360degree appraisal system for the higher management,

which will be most probably starting in the next month. They had an annual appraisal system but

now they are thinking of starting a monthly performance evaluation system.

PURPOSE AND USES

Employee Performance:

Appraisals are an aid to creating and maintaining a satisfactory level of performance by

employees on their present jobs.

Employee Development:

The appraisal may highlight needs and opportunities for growth and development of the person.

Growth may be accomplished by self-study, formal training courses, or job-related activities,

such as special broadening assignments and job rotation. It should be clear that training and

development is needed or not.


19


Confidential

S.A.Brothers (Pvt) Ltd Employee Appraisal Form for Special

Increments/Confirmation/Transfer/Promotion

For Officers/Executives/Managers/AVP ________________________________________________ Type of Review

Mid Probation Probation Annual Other Name of Employee___________________Designation________________ Department_________________________Date of Joining_____________ Qualification________________________Present Salary______________ Rate of Increment Rs._________________Pay Scale # ________________ Date of last increase__________________& Amount_________________ NOTE: Please evaluate the employee on the job being performed during above mentioned period. For each factor, clearly express your

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

Part 1: Personality

S # Trait Model Description EP AA AV BA Remarks

1 BEARING Well dress, create excellent impression

2 BEHAVIOR Courteous & Helpful

3 HEALTH Energetic, Vigor & Very rare illness.

4 CONFIDANCE &WILLPOWER

Exceptionally confident & Resolute

5 LEADERSHIP QUALITY

Organizes & uses staff & other resources effectively

6 INTELLIGENCE Exceptionally bright, Excellent Comprehension

7 UNDERSTANDING Considerate & Cooperative

8 ABILITY TO PRODU CE PRODUCTIVE IDEAS

Full of Ideas, Always come up with ingenious solutions to problems

9 Social Habits Social Mannerism i.e. Conversation, eating & hygienic

Narrative Comments __________________________________________________________________________________________________________________________________________________________________________________________


20


Part 2: Nature


1 HONESTY Honest & Straightforward

2 TRUSTWORTHY Trust & reliability in work & other matter

3 MOTIVATION To motivate staff to achieve objectives

4 INITIATIVE & DRIVE Bold & Dynamic

5 EMOTIONAL STABILITY Mature, Balanced

Narrative Comments _________________________________________________________________________________

Part 3 Job & Performance


1 PUNCTUALITY Always on time & very rare takes leaves

2 DICIPLINE Observe rules & regulations very strictly

3 JOB KNOWLEDGE Have sound knowledge of relevant job

4 QUALITY OF WORK Neatness & Accuracy of the individual

5 QUANTITY OF WORK Ability to meet performance required by maintaining standards.

6 COMMUNICATIONS SKILLS Power of expression in written & oral

7 ACHIEVEMENTS AGAINST TARGETS

Always accomplishes assigned goals in time

8 DEVELOPMENT OF SECOND LINE

To groom & develop second line in his area of work.

9 DEPAENDABILITY Always prepare to take on responsibility even in difficulties

10 SECRECY Protection of Confiden- tial information

11 COOPERATION Always cooperative to get work done smoothly

12 TROUBLE SHOOTER Ability to locate & eliminate the sources of trouble in his area.

13 DECISION MAKING ABILITY Very logical & decisive.

14 ANALYTICAL ABILITY Pick out essentials without wasting time on irrelevant matters

15 ECONOMIC UTILIZATION OF RESOURCES

Produce Optimal results through economic utilization of resources.

16 TEAM WORK Collective Efforts

Narrative Comments _________________________________________________________________________________


21


Overall Rating System

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

Performance %age of Grading Grading

Marking points

Exceptional Performance 80% to 100% A+ 4.0

Above Average 70% to 79% A 3.0

Average 60% to 69% B 2.5

Below Average 50% to 59% C 2.0

TOTAL MARKS = 120

MARKS OBTAINED = ____

Note: Overall grading to be calculated as below

Marks Obtained/Total Marks* 100.= %

Overall Grading

A+ A B C

Remarks

_______________________________________________________________ _______________________________________________________________ Recommendations

_______________________________________________________________ _______________________________________________________________

Department Head ________________

Remarks

_______________________________________________________________ _______________________________________________________________

VP Admin & Finance Approved Not Approved


22


Performance Management Systems

All employers’ want employees who perform their jobs well. However an effective performance

management system increases the likelihood that such performance will occur. At SABRO, a

performance management system consists of the processes used to identify, encourage, measure,

evaluate, improve, and reward employees’ performance. As identified by the HR professionals, a

performance management system should do the following:

Provide information to employees about their performance.

Clarify what the organization expects.

Identify development needs.

Document performance for personnel records.

IDENTIFYING & MEASURING EMPLOYEE PERFORMANCE

Performance is essentially what an employee does or does not do. Employee performance in

Sabro includes the following elements.

Quality of output.

Quantity of output.

Timeliness of output.

Presence at work.

Cooperativeness.

Customer satisfaction.

Other dimensions of performance beyond these general ones apply to various jobs. Specific job

criteria or dimensions of job performance identify the most important elements in a given job.

Mostly jobs in Sabro have more than one job criterion or dimension. Often a given individual

might demonstrate better performance on some job criteria than others. Also, some criteria might

be more important than other to the organization. Weights are used to show the relative

importance of several job criteria in one job. The example of SABRO weighting system is given

below

Employee development 35%

Revenue Increase 20%

Cost Control 15%

Customer Satisfaction 30%

Total Management Performance 100%


23


Recommandations

1. We also observed that other than basic salary, the Compensation Packages are not good

enough to attract and retain the employees. This thing results in decreasing the motivation

level of the employees and the effect is low productivity demonstration from the employees’

side. In order to overcome this situation, the Human Resource Department of Ad Creator

Advertising should try making the company as attractive as possible for the employees by

offering incentives and compensation packages. So that skilled employees don’t leave the

company in order to join some other companies.

2. One main thing which we noticed there is the unequal distribution of work. Some

workers have to work hard till late hours with every low extra reward. Some serious steps

should be taken by the management in order to allocate the work properly.

3 The accounts department is managing and generating its financial statements with the help of

Microsoft office. We would like to recommend that some accounting information systems

should be installed to increase the productivity of accounts department.

4. With the arrival of new technology, employees should be educated with the new

technology in their field. To make them aware of the new technology, employees should be

given opportunity to participate in seminars and lectures and the training program is needed

to be more efficient.

Conclusion

The late sixties and early seventies trend of air-conditioning cinema buildings boosted the overall

sales of the air-conditioning industry. It was the superior management and the edge of technical

knowledge and the right products at the right time made Sabro successful, and technical

knowledge however helped them to make the required changes according to the customers need.

Today, Sabro is considered a pioneer and largest manufacturing organization in Pakistan. Sabro

officials are involved in achieving a new goal for their products to export. For the past three

years Sabro has been test exporting to the middle and central Asian countries.

Human resource department plays vital role in the organization. The HR department of Sabro is

the foundation of the organization as it is meant to take care of the employee, employees who are

the biggest asset an organization has. The HR team hires highly qualified and competent

individuals through a screening process HRM specialists initially determine the number and type

of employees that a business will need over its first few years of operation. They are then

responsible for planning, selecting, staffing, organizing the human resources of an organization.

Sabro is now a healthy organization. Their performance during the last few years have been

exceptional, the reason being its focus excels toward excellent and performance. HR department

in Sabro holds an important position as their consumer depends on the air of their splits.

A large number of employees can work accordingly unless the differences are solved and needs

are well understood who else can better take care of it better than HR department of an

organization. HR department in Sabro successfully fulfill the standard requirements but they

need to pay attention towards some aspects which we recommended, which will helpful for them

in improving their performance and for the grooming of the company.

Documents

FINAL Report on Sabro