Internship Report MBA_updated

ACKNOWLEDGMENT

I have great sense of gratitude for the most Beneficent and Merciful ALLAH who has

always helped me in all matters of life. I tried but He rewarded me more than what I

struggled.

Special praises for the HOLY PROPHET MUHAMMAD (P.B.U.H) who forever is

touch of knowledge and goodness for humanity as a whole on the successful completion

of the project.

I would like to acknowledge my deep sense of gratitude and indebtedness to my best

friends and best colleagues Mr. Syed Yasir Ali Bukhari and Mr. Naseem Awan

without their continued guidance and timely advice the completion of this report would

have been difficult. They have been a source of continuous encouragement throughout

the execution of my internship period.

Words cannot say the gratitude that I feel for my mother and my father, whose affection

and prayers have always been the key to my success.

Finally I am also very thankful to all members of Society for Sustainable Development;

with out their guidance and help, it will be impossible for me to complete my internship. I

would like to thank the management of Society for Sustainable Development for

rewarding me such a great experience during my stay.

Internship Report MBA HRM Roll No. W583977 Page 1

TABLE OF CONTENTS

TABLE OF CONTENTS....................................................................................................2TABLE OF CHARTS & ILLUSTRATIONS.....................................................................3EXECUTIVE SUMMARY.................................................................................................41 OBJECTIVE OF STUDYING THE ORGANIZATION.............................................62 INTRODUCTION TO THE ORGANIZATION....................................................73 OVERVIEW OF THE ORGANIZATION................................................................10

3.1 ORGANIZATIONAL STRUCTURE................................................................114 ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT............................115 HUMAN RESOURCE MANAGEMENT PROCESS IN THE ORGANIZATION: 14

5.1 HUMAN RESOURCE PLANNING (HRP) & FORECASTING............155.1.1 HUMAN RESOURCE PLANNING PROCESS (HRP)............................................................................15

5.1.2 FORECASTING HR REQUIREMENTS................................................................................................. 17

5.1.3 METHODS TO FORECAST HR NEEDS...............................................................................................17

5.2 EMPLOYEE RECRUITMENT AND SELECTION...........................................185.2.1 SOURCES OF CANDIDATES:....................................................................................................... 20

5.2.1.1 Internal sources..........................................................................205.2.1.2 External sources.........................................................................205.2.1.3 Employment selection process.................................................21

5.3 TRAINING AND DEVELOPMENT..............................................................225.3.1 TRAINING NEED ASSESSMENT.......................................................................................................... 23

5.3.2 EMPLOYEE DEVELOPMENT....................................................................................................... 25

5.4 PERFORMANCE MANAGEMENT.............................................................265.4.1 PERFORMANCE STANDARDS AND EXPECTATIONS.......................................................................26

5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN.................................................................29

5.5 EMPLOYEE COMPENSATION AND BENEFITS...........................................305.5.1 TYPES OF COMPENSATION AND BENEFITS....................................................................................32

5.6 ORGANIZATIONAL CAREER MANAGEMENT............................................345.6.1 EMPLOYEE CAREER PLANNING........................................................................................................ 35

5.6.2 EMPLOYEE JOB CHANGES................................................................................................................ 36

5.7 JOB CHANGES WITHIN THE ORGANIZATION...........................................375.7.1 PROMOTION......................................................................................................................................... 38

5.7.2 TRANSFER......................................................................................................................................... 38

5.7.3 DEMOTION........................................................................................................................................ 39


5.7.4 SEPARATIONS.................................................................................................................................. 40

5.7.4.1 Layoff............................................................................................415.7.4.2 Termination...........................................................................................425.7.4.3 Resignation...........................................................................................435.7.4.4 Retirement............................................................................................44

6 LABOR MANAGEMENT RELATIONS.................................................457 SWOT ANALYSIS...............................................................................478 WEAKNESSES OF THE ORGANIZATION..........................................499 RECOMMENDATIONS.............................................................................5110 CONCLUSIONS.......................................................................................5311 REFERENCES & SOURCES USED..............................................................5312 ANNEXES / APPENDICES..................................................................54

TABLE OF CHARTS & ILLUSTRATIONS

Figure 1 SSD Organizational Structure.............................................................................10

Figure 2 Structure of Human Resource Department.........................................................12

Figure 3 Recruitment and Selection Process.....................................................................18


Figure 4 Trainings for employees......................................................................................21

Figure 5 Performance Measurement tools.........................................................................27

EXECUTIVE SUMMARY



1 OBJECTIVE OF STUDYING THE ORGANIZATION

Undergoing an internship program is an essential element of MBA AIOU program. This

practical study does not only provides an overview of the current HR related issues but

also helps internee to understand the dilemmas and solve them in supervision of


experienced HR managers of the organization they are undergoing internship in. The

main objectives of studying Society for Sustainable Development are:

1. To review the human resources department of SSD

2. Analyzing the functionalities and command and control system of human

resources department

3. To find out the weakness and strengths of the human resources department

4. To review the practices of human resources department and comparing them with

the standard human resources theories.

5. To review the human resources development program of the organization

6. To analyze the compensation management program of the organization keeping in

view the compensation management as a critical part of human resources

management.

2 INTRODUCTION TO THE ORGANIZATION


SSD is a Non-profit and Non-Governmental Organization, founded in 1999 and is

registered with the NWFP Ministry of Commerce & Industry under Society’s

Registration Act, 1860.

SSD has been found to address issues of sustainable development through innovation,

appropriate technology promotion and capacity building. SSD’s philosophy is not to

duplicate the mandate of existing NGOs, rather carve a niche of its own to distinctly

contribute to the sustainable development in general and NRM and water and

environment sector in particular. Thus, SSD calls itself a knowledge based NGO,

predominantly interested in promotion of Best Management Practices and appropriate

technology in the sector.

SSD seeks to achieve its development vision through promoting and practicing an

integrated approach to sustainable development encompassing principles of:

Participatory and human rights based approach to development,

Strengthening grass roots level organization to ensure local level services delivery

following principles of subsidiary

Behavioral change Communication to identify and target vulnerable practices for

a sustained development

Introduction and promotion of appropriate technologies to crystallize change in

largely dormant societies

Productively engage children as change agents through active learning

methods/life skills based education/child to child communication for realization

of behavioral changes for sustained development

Develop models of participatory civil and environmental planning, design,

management and implementation;

Capacity-building of municipalities, local government institutions and NGOs in

specialized areas relating to environmental planning and design;

Design and implementation of environmental impact assessments and

participatory benefit monitoring systems.


Key Strengths

Project cycle management of projects in areas of:

Water Supply, Sanitation & Hygiene;

Livelihood;

Local Governance;

Community Infrastructure;

Appropriate technology development and promotion;

Participatory Development; and

Emergency assessment, response and reconstruction.

SSD through its network partners is extensively represented in FATA specially Khyber

and Mohmand Agencies through Tribal Reforms and Development Forum (TRDF) and in

North and South Waziristan through local CBOs.


3 OVERVIEW OF THE ORGANIZATION

(Overview)

Offices & Infrastructure

Head office of SSD is located in Peshawar while its 3 regional offices have been

established in Mansehra/Abbottabad, Battagram & Muzaffarabad to fully attend to

emergency program needs in the earthquake affected areas.

Address(s):

Head Office:

House # 223, K1, Phase III, Hayat Abad, Peshawar

Tel: 091-5816876

Regional Office Mansehra

Dab #2, Pakhwal Road, KKH, Mansehra

Tel: 0997-236013, 249031

Regional Office Battagram

Adjacent District Hospital Battagram, KKH, Battagram

Tel: 0997-311723, 333434

Regional Office Muzaffarabad

D-139, Upper Chattar, Muzaffarabad

Tel: 058810-51070


3.1 ORGANIZATIONAL STRUCTURE

Mr. Abdul Wakeel is the Executive director of Society for Sustainable Development.

Figure 1 SSD Organizational Structure


4 ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT

Society for Sustainable Development SSD is basically a functional and project oriented

organization. The management is decentralized. Due to its project oriented functionalities

the number of staff and the work of human resources vary time to time. Human

Resources Directorate is based at SSD head Office Peshawar while Human Resources

Offices works in three SSD area offices- Peshawar, Muzaffarabad and Mansehra. The

division of work between the Directorate and HR Area Office is as follows:

HR Directorate: (Peshawar)

Developing Standard Job Descriptions

HR forecasting at a large

Compensation Management

Developing HR policies

HR Area Offices: (Peshawar, Muzaffarabad, Mansehra)

Recruitment for concerned area Offices

Salary Processing and Leave Records

Implementing HR rules and compensation management as per HR

directorate directions

Labor Management Relations

Currently Mr. Bilal Ahmad is acting as Area Manager SSD Muzaffarabad. He is

responsible for the project undergoing in the area as well as the Human Resource

Department. The HR department in Muzaffarabad works closely with Human Resources

Department of the Organzarion and the Area Manager in based in Muzaffarabad. The

Organization Structure of SSD Muzaffarabad is as follows:


Figure 2 Structure of Human Resource Department


Blue Lines (Indirect Supervisor)

Red Lines (Direct Supervisor)

5 HUMAN RESOURCE MANAGEMENT PROCESS IN THE ORGANIZATION:

Society for Sustainable Development (SSD) is a project oriented organization. Mr. Riaz

Ahmad is the Director Human Resources. He has more then 20 years of experience in the

field. In the beginning SSD was using traditional techniques for selection. But with the

passage of time it is moving a bit forward. Now while selecting any candidate it uses

short questionnaires, on computer problem solving techniques and interviews. The

organization structure of SSD is more projectized. The Human Resource Process moves

forward with close consultation of the concerned project manager and manager


5.1 HUMAN RESOURCE PLANNING (HRP) & FORECASTING

The concerned project office is to provide general information on their future human

resources requirement as per their plans. Human resources office is responsible for

Human resource planning with strong consultation of the project office.

5.1.1 Human Resource Planning Process (HRP)

Human Resource Management Process is the process of systematically reviewing

human resource requirements to ensure that the required number of employees, with

the required skills, is available when they are needed. After an organization’s

strategic plans have been formulated, human resource planning can be undertaken.

Human resource planning has two components: requirements and availability.

Forecasting human resource requirements involves determining the number and type

of employees needed by skill level and location. In order to forecast availability, the

human resource manager looks to both internal sources (presently employed

employees) and external sources (the labor market). When employee requirements

and availability have been analyzed, the firm can determine whether it will have a

surplus or shortage of employees. Ways must be found to reduce the number of

employees if a surplus is projected. Some of these methods include restricted hiring,

reduced hours, early retirements, and layoffs. If a shortage is forecasted, the firm

must obtain the proper quantity and quality of workers from outside the

organization. In this case, external recruitment and selection is required.

SSD is a project oriented organization. It does its HRP during formation of the

proposal of the contract with any donor. SSD uses the following steps for HRP

Planning.

Steps in HRP process

Determine the impact of organizational objectives on specific organizational

unit

Define the skills required to meet objectives (demand for Human Resource)


Determine additional human resource requirements in light of current HR

(net HR requirements)

Develop action plan to meet the anticipated HR needs


5.1.2 Forecasting HR requirements

A requirements forecast is an estimate of the numbers and kinds of employees the

organization will need at future dates in order to realize its goals. Several

techniques of forecasting human resource requirements and availability are

currently being used by organizations. SSD mainly forecast its HR requirements

at the time of making proposals. The Human resource manager and the manager

project or the director is mainly responsible for forecasting HR requirements. No

hard and fast rules are being observed in forecasting HR requirements; the

requirements are being set as per the work schedule provided by the donor.

5.1.3 Methods to forecast HR needs

As I said earlier that no hard and fast rules are being observed in forecasting HR

needs. Only managerial judgment is seen to be sufficient for forecasting Human

resources needs for upcoming projects. For that purpose top management

conducts interviews with the executives to find out the need of HR for the coming

year.

The following methods can be used for forecasting HR needs:

Statistical approaches

a) Trend analysis

b) Ratio analysis

c) Regression analysis

Judgmental methods

a) Managerial judgment


Receiving RequestPreparing Job DescriptionAdvertising the PositionScreening the applicantsFormation of Hiring CommitteeWritten test and InterviewsJob Offering 5.2 EMPLOYEE RECRUITMENT AND SELECTION

Once the forecast is developed and approved from the top management, the HR

department starts Recruitment & Selection process to fill up the vacant positions.

It is always thought to be better to get any existing employee of the organization

promoted because it saves money on trainings and time on hiring new personnel.

If the person not found from the organization’s internal sources then the positions

are advertised and selection committees are to be made. The complete recruitment

& selection process at SSD is as follows;


Figure 3 Recruitment and Selection Process

5.2.1 Sources of candidates:

There are various sources available for the recruitment of potential candidates,

which are broadly divided in two categories.

Internal Sources

External Sources

5.2.1.1 Internal sources

The first choice of SSD is to utilize its internal sources. When some new post is

created or some post is vacant due to termination, resigning and promotion of

employee, The HR department scan internal organizational environment to locate

the potential candidates. Whenever any position is available, HR Department

advertises the position internally through management memo. Interested

candidates submit their CVs along with the written permission from their

respective managers for the new post. These information’s are then forwarded to

top management and after there approval a formal notification is sent to interested

candidates for interview. After interview, job is offered to successful candidates.

5.2.1.2 External sources

If not any suitable employee is available within the organization, HR department

advertises the position for external candidates.


For external recruitment, HR department uses internal and external resources and

referrals. Existing candidates can recommend any outside personnel suitable for

the job. If this is not possible then HR department advertises the position in

newspaper. The advertisement is published in at least one national and one local

newspaper.

5.2.1.3 Employment selection process

The selection process typically begins with a test and then candidates complete

the application for employment. They progress through a series of selection tests,

the employment interview, and reference and background checks. Several

external and internal factors impact the selection process, and the manager must

take them into account in making selection decisions. Typically selection process

consists of the following steps

1. Initial Screening

3. Pre-employment Testing

General Intelligence Tests

Personality and Interest Tests

Honesty Tests

4. Interview

Structured Interview

Unstructured Interview

Mixed Interview

5. Background Checks

6. Conditional job offer


8. Final Selection Decision

5.3 TRAINING AND DEVELOPMENT

Upgrading employees' performance and improving their skills through training is

a necessity in today's competitive environment. It is becoming more and more

important for the organizations to train their employees in order to get efficiency

and effectiveness.

Mainly SSD provides three type of trainings to its staff;


Figure 4 Trainings for employees

The HR department of SSD is responsible for Training and Development of its

employees. There are series of trainings provided to the employees. Various

internal and external sources are used for training the employees.

Once a new employee inters into SSD culture, he receives orientation for his job.

Orientation is basically a one to two hour activity in which the new employees are

informed about the organizational structure, term & conditions of employment,

the duties of incumbent, the ethical & behavioral requirement for the new

employee and the so.

Then he works on probation for at least 6 month that provides On-job training

opportunity to the employee. The HR department also arranges various trainings

and seminars, workshops and group sessions to build their employee’s skill up.

5.3.1 Training need assessment

HR department assess the need of training among their employees. Mainly

training need is assessed through following three options;

Organizational Analysis: It is an examination of the kinds of problems that an

organization is experiencing and where they are located within organization.

Task/Operational Analysis: An operational analysis identifies the kinds of the

skills and behaviors required of the incumbents of a given job and the standards of

performance that must be met.

Personal Analysis: The objective of the personnel analysis is to examine how

well individual employees are performing their jobs. Training should be given to

those who need it. Assigning all employees to a training program, regardless of

their skill levels, is a waste of organizational resources and create a unpleasant

situation for employees who do not need training.


Mostly when there is a performance gap i.e. the performance is not up to the

specified standards training is required to improve the performance there are

certain factors that are kept in mind before conducting training:

• Number of employees experiencing skill deficiency: Number of employees

supposed to be trained.

• Importance of skill: How important is skill to be possessed by workforce.

• Extent to which skill can be improved with Training: Would there be real

difference in skill level in case the training program is conducted.

Determining Training Needs:

HR department is responsible for determining the needs of training. For that

reason HR department works closely with the management and Project Managers.

Normally through following sources training needs are assessed.

Self-assessments

Company records

Customer complaints

Interviews with managers

Customer satisfaction surveys

Observation


5.3.2 Employee development

For better results and effective and efficient performance of the employees, they

should know exactly what is expected of them and what is required by the firm

for advancement in the job.

That is why SSD takes employee development very seriously. Various training

sessions are conducted for the employees during various course of time.

Employee Development is performed through orientations, on job Trainings,

Professional Readings. For this purpose SSD holds a small library as well which

consists of around about 500 books on various social, development and

managerial issues.


5.4 PERFORMANCE MANAGEMENT

Performance Management has always been core issue to be discussed within any

organization. A performance management system consists of the processes used

to identify, encourage, measure, evaluate, improve, and reward employee

performance at work.

Society for Sustainable Development encourages their employees to achieve high

level of excellence i.e. in

Quality of output

Timeliness of output

Presence at work

Cooperativeness

Efficiency

Effectiveness

These excellences are appreciated by the management at their monthly meetings

with their employees and in the form of certificates, cash and shield awards.

However all these activities are qualitative in nature. The activities of employees

are recorded on the basis of observation and performance appraisals made by the

management every year and time to time.

5.4.1 Performance standards and expectations

Usually following determinants are considered for performance Management;

1) Willingness to perform:

If employee is performing tasks and responsibilities in the organization

with willingness level of the performance will be high and will be up to

the standards.


2) Capacity to Perform:

If the basic qualifications abilities and skills required performing specific

tasks are possessed by the employees the level of performance will be in

accordance with the set standards and vice versa.

3) Opportunity to Perform:

Favorable circumstances and opportunities to perform the challenging

tasks which are more contributory towards achievement of the

organization’s mission and objective can be reasons to have more effective

performance from employees.


Figure 5 Performance Measurement tools


5.4.2 How performance reports are written

Supervisors are responsible to submit performance appraisal report at the end of

each year normally in December. All these reports must be submitted to HR

department after having them signed by the employee and his direct supervisor.

However these performance reports are not very much helpful in increase of

salary and promotions. That is why these reports are not considered seriously

which makes this whole process useless.

A typical performance report of Society for Sustainable Development contains

information as

Name of employee

Designation of Employee

Name of performance evaluator

Department

Date & Time

Performance Standard (Arranged according to their priority)

o Rating

o Critical Incidents

o Explanatory Notes

Remarks

Signature of Supervisor

A sample of Performance appraisal is attached with the report as Annex II


5.5 EMPLOYEE COMPENSATION AND BENEFITS

SSD have a different pay structure for different level of employees. HR

department is responsible for pay and pay related issues. It was also found that

salary determination in SSD is a matter of bargaining. i.e. SSD pays 10,000 to a

social organizer while pay 15000 to another having same experience and

qualifications.

There are no specific rules and regulations for salary determination in Society for

Sustainable Development thus this is a big disadvantage of compensation system.

As a result a turn over rate is increasing day to day. However management

positions are paid better then the supervisors or field workers and the policies for

them are also better. Due to this dual and non standardized compensation system

SSD has always been facing lack of experienced and skilled workers.

To get the better results SSD needs to improve their pay structure and

compensation plan and should change its HR strategy. The better result can only

be achieved when the compensation plan is able to select, engage, develop, retain

and attract new employees. That would not only help the organization to achieve

better results but also to make a higher position in the local NGO competition.


HR Strategy Desired Results


Figure 6 HR Compensation Strategy

5.5.1 Types of compensation and benefits

There are only one type of pay structure is available for the lower level

employees. i.e. basic pay. No other direct & indirect pay & benefits are provided

to the employees. For the lower level employees Society for Sustainable

Development is giving time base pay i.e. every employee have to work for 40

hours a week after which he has subject to receive his pay at the end of month.

Not a single type of allowance is paid to lower level employeesNo portion of the

pay is directly or indirectly associated with the performance. As a result

motivations of the employees are low.

The composition of salary of lower level employees consist of :

Basic Salary

Overtime

Managers are entitled to receive the following compensation:

Basic Salary

Bonus Pay

Per diem

Travel Allowance



Figure 7 SSD Compensation System


5.6 ORGANIZATIONAL CAREER MANAGEMENT

Career planning is an ongoing process through which an individual sets career goals and

identifies the means to achieve them. The process by which individuals plan their life’s

work is referred to as career planning. Through career planning, a person evaluates his

or her own abilities and interests, considers alternative career opportunities, establishes

career goals, and plans practical developmental activities.

In Society for Sustainable Development employees are suggested according to their

career goals and their skills and qualifications. Usually, career planning programs are

expected to achieve one or more of the following objectives:

More effective development of available talent.

Self-appraisal opportunities for employees considering new or nontraditional

career paths.

More efficient development of human resources within and among divisions

and/or geographic locations.

Satisfaction of employees’ personal development needs.

Improvement of performance through on-the-job training experiences provided

by horizontal and vertical career moves.

Increased employee loyalty and motivation, leading to decreased turnover.

A method of determining training and development needs.


5.6.1 Employee Career Planning

Society for Sustainable Development provides good career planning to its employees.

The career counseling is provided through different means

A. Discussions with Knowledgeable Individuals

SSD has good very experienced and skilled management which provides

excellent career development techniques and knowledge to their employees.

This is not a formal type of discussion. Mr. Bilal Ahmad who is the in charge

of HR has also got very good experience in career development and career

counseling. He tries to share his experiences with the employees for their

development.

B. Company Material

SSD has got very good career development material to study. For that reason

SSD has a library which consists of more then 500 books on different topic

especially related to social development. Every one can easily avail these

books from management office. The library is free of cost but the number of

books should be increased so that employees can have a good knowledge for

their development available on one table.

C. Performance Appraisal System

As performance appraisal does not have direct link with promotions and

salaries practically however it provides excellent opportunity to employees to

see where they are in terms of their performance. After having knowledge of

performance appraisal they can set their targets and can work to achieve the

best performance.


D. Workshops

As SSD is pioneer of some very useful social development techniques, SSD

believes in career development through workshops. Workshops are arranged

on different topics by SSD management for their employees. Sometimes other

organizations are also invited to participate in workshops which provide good

opportunity for experience sharing and organizational motivation.

5.6.2 Employee job changes

Job changes in Society for Sustainable Development is a matter of routine.

Turnover rate is very high in SSD even though SSD give its employees priority

for selecting him for any new position within the organization. The reason for that

is lack of employee’s confidence over management, dual salary system, no

relation of performance with salary and promotions.

However when any job is lying vacant or some new post is created because of

expansion or addition of new project, SSD first priority is to select employees

from the current pool. For this purpose SSD announces the vacancy internally and

invite the current employees to submit their CVs along with required documents

and then select the right candidate for the post. If right candidate are not available

to fill out the vacancy then SSD search for candidates who have the required

competency and are willingly to fill the post but not have proper knowledge

and/or skill required for the post, then SSD arrange an up gradation program

which best suit the employee requirement for the new post. As a result the

employee’s response for the new position is always higher than expected.


5.7 JOB CHANGES WITHIN THE ORGANIZATION

Job changes in SSD are managed by HR Department. When there is new post created

in the company or some post became vacant because of layoff, dismissal, promotion

or demotion etc,

SSD first announce the post through their display board. Interested employees are

informed to submit their CV’s along with required documents and with NOC from

the head of their department. After receiving such documents, the HR Manager verify

the information collected and match the current post requirement with that of

competencies and capabilities of the employees. HR Department conducts a short

interview with that of interested employees.

HR department shortlists the employees after consultation of employees’ direct

supervisor. Short listed candidates are called for interview. In interview the reasons of

leaving the previous job and joining a new position remains core issues to be

discussed.

Normally following type of questions could be asked:

Why he is applying for this specific job?

What is the deficiency the employees feel in their current job?

How he will manage the new job?

What does employee expect from the new job? etc.

In the light of interview conducted and the recommendation and NOC of the current

head of employee department, HR department makes an initial recommendation to

higher management (Chief Executive, General Manager). After approval from the top

management the employee, previous and new manager of the employee are informed

and employee is given new position title.

Employee signs a new contract agreement but mostly the terms and conditions

remains the same as before.


5.7.1 Promotion

In case of promotion, the head of department inform the HR Manager through

intercommunication form about the performance of an employee.

After receiving such information, the HR department recommends the employee

for possible promotion within department to top management. The top

management decides in the light of recommendation from the head of department

& HR department to promote or not. The decisions of the top management were

mostly verbally, and the HR department in the view of decision makes necessary

documentation.

Promotion policy of SSD is not very much clear as employees do not know when

they will be promoted. It is a matter of top management decision. As a result of

this, some employee promoted very early like after 6 to 7 month of employment

while some are still waiting for promotion after 5 years of employment.

5.7.2 Transfer

Transfer policy of SSD is clearly mentioned in job description & in appointment

letter. SSD transfer policy stated that when ever services of an employee are

required in some other department and/or any section within the firm, the

employee must assume the responsibility without any hesitation and any reasons.

The employees’ job description clearly says that whenever suitable, in the favor

of SSD, employee will be appointed in any section of the organization or any

geographical location. However employees are consulted before their transfer to

any other project or geographical area.

As SSD is a project oriented organization and works on many projects at the same

time which can totally be different in nature. SSD needs their skilled employees

sometimes more then one project. So in that cases employee is assigned different

activities from different projects.


Employee some times also takes part in transfer process and willingly apply for

transfer because the transfer gives them fresh life in the form of new knowledge

and skill.

This type of transfer is voluntarily one. While in involuntarily one top

management decided which one is transfer and which one not. The employee has

the right to ask the management to review their decision about transfer and the

last decision remains with the employee but only on the basis of solid reasons.

5.7.3 Demotion

Demotions are mostly associated with failure of the employee but limited

promotional opportunities in the future and the fast pace of technological change

may make them more legitimate career options.

However there has not been a single issue of demotion occurred in SSD to date.

HR policy documents shows that when any employees does not show satisfactory

performance within 1 year period and does not improve his performance after the

recommended training from the concerned department manager, makes

continuously same mistakes, does not oblige the order of department manager,

supervisor and any other senior and after informally verbal, formal written and a

formal show cause notice, does not satisfy the concern officials in show cause

case hearings, theft, damage to company property, engage in any other activity

other that assigned one and the same and leaking company critical or non critical

information to outsiders include relatives, friend and competitors of the firm are

subject to demotion, penalty equivalent to damage, withholding salary, and

termination from the employment with or without notice.


5.7.4 Separations

One of the worst decisions an employer or employee made is the decision of

separation from the firm. The employee turnover rate is very high in SSD. Almost

10 to 15 employees finds job elsewhere and decide to join other organization.

Normally the employee leaves the job because of various reasons such as

Finding better job

Less attractive current job

No career growth in current job and/or current organization

Unexpected new complex & lengthy assignment in the job

Bad employment condition in current job

Unacceptable supervisors, manager’s behaviors.

Inequality in pay

While the employer removes an employee also have one of several reasons such

as

Continuous low performance of an employee

Cutting unnecessary overheads.

Increase profit by reducing cost through cutting employees strength.

Hire low wage workers by removing high paid workers.

Layoff union workers because of strikes, lockout etc

Due to inflationary or recession conditions

Layoff old workers because of less or no knowledge of advance

technology.


Employee who leak out critical firm information to outsiders.

Employees who damage company property.

Continuous absence from the job

Unfortunately in SSD this decision were made frequently in the last 2-3 years.

Almost more than 50% of employees were got separation due to several reasons

such as

Unacceptable behavior with that of supervisor and/or manager

Lake of good compensation management

Lake of good performance management

Less career growth opportunities

5.7.4.1 Layoff

Layoffs occur when employees are put on unpaid leaves of absence for time

period longer than approved one.

Each employee is entitled to have 20 days annual leave along with 20 days

annual vocational leave after completion of 5 years of service and onwards.

Employee is also entitled to have 15 days sick leaves per annum but the

employee has to provide medical certificate in case of two consecutive sick

leaves. 3 months maternity leaves are provided to female workers while 5

days leaves are awarded to the male employees who got new baby to take

care of his spouse and the baby.

SSD have a strict policy on leaves. If an employee makes extra leaves

without prior approval, a written show cause is issued to him within 7 days.

If the employee does not provide reasonable reason to HR department, then

he has a danger of layoff. Only 7 times this option is used.


If employee does not respond to the show cause within 3 days of receiving,

another show cause is issued and if he still not respond within 3 days of

receiving, a layoff letter is send to him and thus in this way the employee is

terminated.

Employees can also apply for unpaid leave in case of emergency such as

medical leave, maternity leave, educational leave etc. but prior permission

from HR department is necessary.

5.7.4.2 Termination

According to SSD HR policies, an employee can be terminated due to

following reasons

Unacceptable behavior

Damage to Firms property

Does not obey Management orders

Smoking and engage in activities prohibited by the management

Leak information to outsiders

In case of any of the above reason a show cause notice is issued to the

employee, employee submit his answer to HR department which presented

in the committee consisting of HR manager, Direct Manager of the

employee and the Area Manager. The committee is responsible for making

decision whether the employee should be terminated or not.


5.7.4.3 Resignation

Resignation in SSD is another big reason for brain drainage of valuable

talent. SSD spend valuable and its precious time to reward a good

experience but because of the weakness of the system, when the employee

get some knowledge he resigns from his post and join new firm.

The major causes behind this situation were found as under.

Less opportunity for career growth due to less room for innovation

and creativity because of standardized rules and procedures

Lower salary

Unsatisfactory work conditions.

Unacceptable term and conditions.

Tight supervisory control

Lack of trust

No benefits for most of employees.

SSD does not so far make some sound homework to reduce this trend. As a

result this situation persists. Because of bureaucratic style of management,

opportunities for others becomes lower & lower down the hierarchy. The

post leave after resignation was not filled immediately. Usually 3 to 4

months are required to fill the posts. It was also observed that resignation

letter was given by employees to the management immediately without

waiting period of 1 month. Because there is no benefit for employees thus

resignation was given immediately. Another trend was observed that mostly

resignation application was given 2nd date of new month when employee

get there previous month complete salary thus the management have nothing

to hold and forces the employee not to resign. Resignation is one of the


worst ways which not only effect some department badly but some times the

firm faces dangerous situation.

5.7.4.4 Retirement

There is no retirement plan for employees in SSD. This is also one of the

reasons of turnover, separation and resignations as employee do not see any

other benefit for carrying on their service with SSD after getting any

suitable job in any other organization.


6 LABOR MANAGEMENT RELATIONS

Labor-Management relations in Society for Sustainable Development are not ideal. There

are not written procedures and policies for labor-management relations. However the

management of the organization keeps good relations with the employees that us why

employees are just satisfied with the efforts management make to solve any employee

related issue. However we can say that the organization keeps normal relations with its

employees. There is no union or employee council in Society for Sustainable

Development however the problems and issues are discussed and solutions are suggested

on the basis of full consensus developed between employees and the management.

There are two-way communications methods in Society for Sustainable Development

which means that the problems and issues are discussed open heartedly from both sides –

management and labor. Several features of Labor-Management relations in Society for

Sustainable Development are;

Every employee has the right to come to meet his immediate supervisor for the

help or solution of any problem. If his supervisor cannot satisfy the employee,

then employee can go to HR department for this problem.

Complaint Box is placed near the entrance of HR office which is opened by HR

manager normally once in a week. So employee can get the solution of his

problem in this way as well.

The organization holds a general monthly meeting. All low level employees, their

direct supervisors, Project Managers and HR manager and Area Manager

participate the meeting to share the progress of work, new plans and share the

problems and issues of employees


The Organization treats all employees with respect and dignity, no employee is

subjected to any gesture, language and physical contact that are sexually coercive,

threatening, abusive or exploitative.

Warning are addressed to the employees verbally and in written through their

immediate supervisor. The warning referred to the contraventions committed by

the employee and served to remind the employees the he/she abide by

organizational rules and regulations in performing his/her work, and that this

contravention should not be repeated in future.

A written letter addresses to the employee describing the contravention

committed. The employee is also notified that a higher penalty may be inflicted

on him if the contravention is repeated in future. The warning letter is then put in

the employee’s personal file. Issuance of written warning can be recommended by

the respective supervisor and Head of Department. It will be issued by the HR

department after approval of Chief Executive Officer.

An employee who is absent from the job with out satisfactory explanation and

necessary proof, is considered to be an unauthorized unpaid absence.

Discrimination, intimidation and harassment based on sex, race, religion, age,

color, disability, sexual orientation and cultural background is prohibited at the

workplace.


7 SWOT ANALYSIS

STRENGTH

One of the largest Non governmental organization in Muzaffarabad

Pioneer of different new Sanitation Approaches like SLTS and CLTS in the area.

Frequent availability of lower wage employees due to organizational member’s

personal relations.

More loyal senior management.

Qualified, experienced and well skilled management staff.

Reduces cost by merging some departments, especially merger of finance and

logistics Department into Administration and Finance Department.

Higher motivational level of management due to Job rotation & Career

Management programs and workshops

WEAKNESS

Lower wage level as compared to other non governmental organization in the area

Availability of less skilled and less experienced low level workers.

Employee turn over rate is high in the organization

Full time HR manager is not available at the post from last 6 months which is a

serious managerial issue.


Low level Employee satisfaction level is very low due to less compensation and

non –relation of compensation and performance and dual pay system

Dual responsibility of various managers due to merger of various departments.

No HR plans and forecasting

No proper job descriptions are formed

Career growth opportunities are only available to selected employees usually the

management.

No referral reward system for employees who recommend competent employees.

No specific promotion criteria

OPPORTUNITIES

Enough room for the implementation of new HR policies & Procedures.

There is variety of skilled managerial and non managerial employees available in

Muzaffarabad who can be hired by SSD.

THREATS

Imposition of new rules and regulations on NGOs in Muzaffarabad by the

government.

Entrance of new local organizations in social sector

Employee turn over rate and absenteeism is high and is a upcoming threat for

organization

Serious shortage of skilled and qualified workers in near future


8 WEAKNESSES OF THE ORGANIZATION

During my stay in SSD I found that SSD has a much room for developments in its HR

department. SSD management needs to be very serious for these developments in HR

department. I found following weaknesses in SSD which needs to be given proper

attention;

a. Serious shortage of skilled and experienced staff in HR department

b. Short term planning and forecasting for human resources.

c. In selecting new candidates, more stress is paid on an internal candidate then

external who prevents out side skilled and qualified candidates to be inducted.

d. More employees in Society for Sustainable Development are offered job due to

recommendations which can create a serious problem in terms of loyalty with the

organization.

e. There are neither formal training programs nor training need assessment

conducted before arranging any training. Career development opportunities are

more easily available to senior managerial staff members then lower level

employees.

f. Orientation & training period of new incumbent are very short and new employee

has to learn every thing from his mistakes.

g. No training need assessment form developed yet.

h. No specific compensation plan. Dual pay system in existing salary system in

which low level staff are not entitled to receive travelling allowance and per

diems.


i. No relations between performance appraisal reports and annual salary increase.

j. Compensation & Benefits are lower in Society for Sustainable Development as

compared to other non governmental organizations based in Muzaffarabad.

k. No medical facility available to staff

l. Strict bureaucratic style of management which disturbs labor-management

relations.

m. High turnover ratio and absenteeism than competitors.

n. Different standard are set for different employees working same type jobs.

o. Different pay structure for different employees working same job.

p. HR department is headed by a non HR manager


9 RECOMMENDATIONS

On the basis of my study during internship period in Society for Sustainable

Development, I recommend following steps to be taken by Society for Sustainable

Development’s management to eliminate the weaknesses of the organization.

Society for Sustainable Development must look for skilled and experienced staff

for its HR department.

Human Resources needs should be forecasted and planned in advance so that the

organization can have much of skill available for the time when it is needed

Internal and external candidates should be given proper importance while

selecting for a new position. There is much talent in Muzaffarabad so external

candidates should also be given chance to prove their talent and skills

Recommendation culture must be ended if the management wants the

organization to be developed.

A comprehensive training program must be developed so that any new incumbent

has the opportunity to learn except keep doing mistakes due to improper

knowledge

New employee must be oriented well and the supervisor must observe that new

incumbent is fully prepared before going on work independently.

Training assessment forms should be developed so that the management could

have idea what type of training is needed

Comprehensive compensation plan should be announced in which dual system of

salary should be ended; low level employees should also be paid per diems and

travelling allowances. Moreover overtime should also be paid but it must be

approved by the head of department in advance.


Compensations must be related with performance appraisal.

HR department must conduct a salary survey to make its compensation plan more

effective and efficient as compared to its competitors in the region.

Strict bureaucratic style of management must be converted to more flexible type

i.e. authority and responsibilities must be delegated to lower level as well. This

action not only increases motivational level of employees but also increases the

loyalty and sense of ownership.

Employee turnover ratio absenteeism is high in the organization due to employee

dissatisfaction. Employee dissatisfaction must be eliminated. HR department must

work on compensation plans and medical facility should be provided to

employees.

There must be same pay structure for all employees working on same position.

There should be specific pay policy.

HR department must be headed by an experienced and skilled HR manager so that

proper HR policies can be developed and implemented.


10 CONCLUSIONS

11 REFERENCES & SOURCES USED

Books

Manuals:


Online searching

www.ssd.org.pk

www.citehr.com

www.cbizlinks. Com

http://www.pakstudents.com.pk/

www.shrm.org

Online book resources

http://www.pearsoned.co.uk/HigherEducation/Booksby/Torringtonetal/

12 ANNEXES / APPENDICES.

A-01 Job Advertisement

A-02 Interview Evaluation Form

A-03 Performance Appraisal Form

A-04 Employee Salary Slip

A-05 Employee Personal File Checklist


http://www.pearsoned.co.uk/HigherEducation/Booksby/Torringtonetal/

http://www.shrm.org/

http://www.pakstudents.com.pk/

http://www.citehr.com/

http://www.ssd.org.pk/

Documents

Internship Report MBA_updated