8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 1/34
Human Resources Management Report
MBA-IV
GROUP MEMBERS REGISTRATION #
AMMARA MEHMOOD
HAWA BI IBRAHIM MAYET
KULSOOM ZAFER
SHEBA TAHIR
NADIA FARHEEN
ANAM
SUBMITTED TO: MISS. ABIDA SHAHEEN
DATE OF SUBMISSION: 5th of August, 2009
Engro Vopak Terminal Limited Page 1
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 2/34
Human Resources Management Report
ABOUT AUTHORSABOUT AUTHORS
We are AMMARA MEHMOOD, HAWA BI IBRAHIM MAYET, KULSOOM ZAFAR,
SHEEBA TAHIR and NADIA FARHEEN ANAM. We have been given a project
‘HRM PRACTICES OF ORGANIZATION”’ to study and analyze the importance
of HRM in any Organization and how HR-Managers use HRM methods to
create high-performance companies and work system. We are students of
MBA in IQRA University in the year 2009. Presently we are getting through
our 4rd semester from IUGC and we are assigned to prepare this report.
Every project needs a lot of research, work, physical involvement and a great
amount of personal interest in making it as informative as it can be.
Engro Vopak Terminal Limited Page 2
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 3/34
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 4/34
Human Resources Management Report
We dedicate this report to all the above-mentioned people and to all the
readers of this report.
TABEL OF CONTENTSTABEL OF CONTENTS
EXECUTIVE SUMMARY
………………………………………………………………………………………. I
1. INTRODUCTION:………………………………………………………………………………………………….11.1Introduction
…………………………………………………………………………………………………1
1.2About Engro Vopak……………………………………………………………………………………… 2
1.3Engro Vopak Strategy………………………………………………………………………………….. 3
1.4Organizational Chart……………………………………………………………………………………. 3
1.5Departments……………………………………………………………………………………………….4
2. HRM at ENGRO VOPAK ……………………………………………………………………………………… 52.1Strategic HRM at Engro Vopak
……………………………………………………………………. 62.2Engro Vopak HR Policies
……………………………………………………………………………… 62.3HR Offices and Its Role
………………………………………………………………………………... 73. HR-FUNCTIONS
………………………………………………………………………………………………….. 83.1Job Analysis
………………………………………………………………………………………………….8
3.2Recruitment and Selection………………………………………………………………………….. 9
3.3Orientation and Training……………………………………………………………………………… 13
Engro Vopak Terminal Limited Page 4
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 5/34
Human Resources Management Report
3.4Performance Appraisal………………………………………………………………………………… 16
3.5Compensation and Benefits……………………………………………………………………….. 19
3.6Career Development………………………………………………………………………………….. 203.7Retention of Employees
……………………………………………………………………………… 203.8Health and Safety Policies
…………………………………………………………………………… 214. SWOT ANALYSIS
………………………………………………………………………………………………….225. CONCLUSION
………………………………………………………………………………………………………24
6. RECOMMENDATION
………………………………………………………………………………………….257. REFERENCES……………………………………………………………………………………………………….26
EXECUTIVE SUMMARY
The report on the project “HRM practices OF Engro Vopak Terminal Ltd.”
starts with the introduction of the company Engro Vopak whose human
resource management practices are studied to analyze the impact of HRM
practices to develop high performance work system. After introduction of the
Engro Vopak, HRM practices are described in relation with their function to
improve performance. After the theory describing the HRM practices, the
HRM policies of Engro Vopak like recruitment, selection, orientation, training
and development, performance appraisal, empowerment, grievances
Engro Vopak Terminal Limited Page 5
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 6/34
Human Resources Management Report
handling etc. are described in detail. After the detailed description of Engro
Vopak’s HRM practices some recommendations are given to remove flaws
and for further improvement of Engro Vopak.
INTRODUCTION
1.1-Introduction:
Engro is a diversified business enterprise, comprising of 5 subsidiaries and a joint venture company. Its
business line includes chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial
automation, foods and power generation. Engro is currently serving customers in 17 countries globally
through 11 offices in 3 countries in Asia and North America. A national company with an international
reach, Engro is one of the largest and fastest growing companies in Pakistan today.
Vopak complies with the majority of the principles and best practices laid down in the Dutch Corporate
Governance Code (the ‘Code’). The number of exceptions to the best practice provisions in 2008
remained unchanged from 2007. The exceptions are explained below. For their stakeholders and in
accordance with prior recommendations of the Monitoring Committee Corporate Governance Code (the
‘Monitoring Committee’), we include transparent, specific and concise information on the various risks
and the manner in which the organization manages these risks in their external accountability and
reporting on risks and risk management. We have closely monitored the results of the consultative
sessions on the preparation and effectiveness of the General Meeting of Shareholders (the ‘General
Meeting’) recently initiated by the Monitoring Committee as well as the dialogue between the company
and its shareholders. We have taken notice of the revised Code as published by the MonitoringCommittee on December 10, 2008 and are reviewing what the implications will be for Vopak .
WORK PLACE
Engro values each employee, their input and views. Continuously striving to become employer of choice,
Engro provides a workplace where people feel confident, valued and inspired.
DIVISIONS:
Engro today stands recognized as a successful business operation and a role model for doing business in
Pakistan.* Engro Chemical Pakistan Limited (ECPL)* Engro Vopak Terminal Limited (EVTL)
* Engro Polymer and Chemicals Limited (EPCL)
* Avanceon (formerly known as Engro Innovative Automation Pvt. Limited)
* Engro Foods Limited (EFL)
* Engro Energy Limited (EEL)
* Engro Eximp (Pvt.) Limited (EEPL)
Engro Vopak Terminal Limited Page 6
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 7/34
Human Resources Management Report
1.2-About Engro Vopak:
With a history going back almost four centuries, Vopak is the world’s largest provider of conditioned
storage facilities for bulk liquids. Whether it’s liquid or gaseous chemicals, oil products, petrochemicals,
biofuels, vegetable oils or Liquefied Natural Gas (LNG) we offer complete storage and transshipment
solutions at 80 terminals in 32 countries, covering and connecting the world’s major shipping lanes.
Vopak offers more storage capacity than any other independent tank terminal operator in the world.
Vopak distinguishes itself by offering service solutions that address a single, but crucial part of the supply
chain and then take it one step further. When you choose to work with Vopak, their operational and safety
standards apply to every country and to every continent where we operate. That means we offer uniform
quality wherever you take your shipments, conditioning your products, keeping them safe, and keeping
them secure - from ship to shore and from shore to inland transportation.
Vision"To be the premier Pakistani enterprise with a global reach, passionately pursuing value creation for all
stakeholders.”
Long-Term Commitment
The long term vision is to become a diversified chemical company operating internationally. To achieve
this aim we need the best people. We therefore aim to recruit high caliber people and give them the
opportunity to grow and to develop their talents. They look for long-term commitment on the part of both
Company and employee and have designed their systems to fulfill the Company's part of this promise.
1.3-VOPAK Strategy
On the basis of their mission of becoming the most admired independent storage terminal company a
strategy has been defined that rests on three pillars:
1. Growth leadership
• Optimizing and expanding existing terminals
• Developing terminals in new geographical areas
• mergers and acquisitions
• developing terminals for new products or markets, like LNG and biofuels
2. Customer leadership through recognized excellence in customer service at every site3. Operational efficiency leadership through continuously improving operational processes
The strategy is being implemented through special internal programs, known as strategic initiatives, and
excellence programs for improving existing operating processes.
Engro Vopak Terminal Limited Page 7
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 8/34
Human Resources Management Report
1.4-Organizational Chart
1.5-DEPARTMENTS:
FINANCE AND CORPORATE SERVICES:
Finance and corporate services looks after the management functions carried out at ENGRO VOPAK.
This department is comprised of all management staff. It supervises the departments of finance, human
resources, corporate and administration. These departments report directly to finance and corporate
division.
• Finance Department
Engro Vopak Terminal Limited Page 8
CEO
Finance &
Corporate
Service
Human
Resourc
es
Administra
tion
Corpor
ate
Terminal Project &
BD
Quality
Contr
ol
Engineer
ing
Safet&
Stora
ge
Financ
e
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 9/34
Human Resources Management Report
The Finance and Accounting departments at Engro Vopak are responsible for the total financial
management of the business of the company. From the usual accounting statements and sheets to risk and
portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets
is properly documented and audited.
• Administration
Efficient management of all administrative affairs of Engro Vopak is the job of the Administration
department. From legal matters to general day-to-day operations of the office, the Administration
department ensures that all affairs run smoothly.
• Human Resource
The Human Resource department at Engro Vopak spearheads the recruitment process to ensurethat the finest human resource is taken on board at Engro Vopak. Resumes of candidates are carefully
filed and documented for current or future reference. The department, besides carrying out succession
planning, maintains and implements HR policies pertaining to employment, retention and superannuation.
Assessing training needs of employees and ensuring adequate training is also carried out by the
professional HR supervisors at Engro Vopak. The detailed analysis of the department and its functions are
discussed later in this document. Although Engro Vopak has owned the HR policies and System of its
own mother company i.e. Engro Chemical and they have no labor laws but they have new guide line of
following OHSAS which is
TERMINAL:
Technical work is supervised by terminal division. Since the core business of Engro Vopak is to provide
safe supply of chemicals to its clients therefore the terminal division withholds a major responsibility. It
ensures the security and safety at its all terminals.
PROJECTS AND BUSINESS DEVELOPMENT:
This division’s core responsibility is to develop and maintain business plan, design strategies for
business development, fill the tenders for new projects and identifying the needs for them,
dealing with existing clients and attracting new customers and improving the overall condition of
business.
HUMAN RESOURCE MANAGEMENT AT ENGRO VOPAK:
Engro Vopak is a small subsidiary company of Engro chemical, it has owned HR rules, polices and
cultures of Engro chemical because it is Mother Company and it has quite strong history. In Engro
Vopak, there are two people in the HR department, Mr. Tabish is the person, who is actually acting as HR
Engro Vopak Terminal Limited Page 9
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 10/34
Human Resources Management Report
supervisor and the 2nd one is HR officer who is responsible for every thing and playing leading role
related to Engro Vopak human resource management (HRM).
There are around 90 employees are working in the Engro Vopak, and they are largely committed to their
organization and have shown progress in the company that is the reason during the year, in 2007, thevolume of the chemical handled by Engro Vopak (EVTL) is increased by 38% and revenue increased by
18%.
As employees are satisfied with HR department of Engro Vopak (EVTL), there are several functions are
performed by HR department which are mentioned below:
HR Planning
Recruitment and Selection
Training and Development
Performance Appraisal
Compensation and Benefits
Career Planning and Development
Health and Safety measures
Retention Of employees
2.1-Strategic Human Resource Management at Engro Vopak Humans are the basic tool for having competitive edge in the market for most of the organizations and
VOPAK is one of these. HR strategy refers to the specific human resource management course of actions
that a company pursues to achieve its objectives. But how these strategies & policies are formulated and
implemented at Engro Vopak. The basic policies of HR are designed at Engro chemicals and are followed
by Engro Vopak as well. Like most big organizations, this process is also done in accordance with
company’s mission. First, Strategic planners analyze what are the strengths, weaknesses, opportunities,
threats (SWOT analysis) of business and its market, what is the culture of the organization and on the
basis of all the above analysis, company’s strategic plan is established. In the end HR strategies are
formulated in accordance with this overall business’ strategic plans. Based on these HR strategies, HR
policies and practices are also formed and implemented. Any abrupt change in the market requires theorganization to follow this analysis in order to be successful. But since Vopak is the pioneer of this
market therefore it is least affected by the disturbance in market.
2.2-ENGO VOPAK HR Policies:
• Vopak considers safe and healthy working conditions for its employees to be fundamental and a
pre-requisite.
Engro Vopak Terminal Limited Page 10
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 11/34
Human Resources Management Report
• Vopak companies recruit, employ and promote employees on the sole basis of the qualifications
and abilities (including reputation and reliability). Vopak endeavors to enable each individual to
develop its talents in various ways (e.g. by offering training programs).
•
Vopak and its subsidiaries are committed to a work environment in which all individuals are treatedwith respect and dignity. Each individual has the right to work in a professional atmosphere that
promotes equal employment opportunities and prohibits discriminatory practices, including
harassment. Vopak expects that all relationships among persons in the workplace will be business-
like and free of bias, prejudice and harassment.
• It is the policy of Vopak to ensure equal employment opportunity without discrimination or
harassment on the basis of race, color, national origin, religion, sex (with or without sexual
conduct), age or any other characteristics protected by law. Vopak prohibits and will not tolerate
any such discrimination or harassment.
• It is the policy of Vopak and its subsidiaries to maintain a work environment at its terminals that is
safe for employees and conducive to attaining high work standards. This statement is to notify and
remind all employees and employees of contractors and other companies having access to a Vopak
terminal, that unauthorized possession or use of drugs, narcotics, intoxicating beverages, firearms
or weapons are not permitted on any Vopak terminal.
• Vopak is committed to conduct its operations in an environmentally sound and sustainable manner.
To achieve protection of the health and safety of employees, customers and the public, Vopak has
established procedures and compliance programs to ensure the minimum adverse impact on the
environment. Such procedures and programs are periodically being reviewed and appraised.
2.3- HR Officer and Its Role in Engro Vopak
Mrs. Mona is the person who has core responsibility regarding decision making, and setting overall
strategies for new hiring and existing employees, and even keeping effective check and balance of
overall performance of HR department including strategic human resource issues, possess
responsibility of all HR areas including forecasting the need of recruitment, selection of employees,
setting compensation pay rate according to tears in organization, and also involved and implementing
the health and benefits program, an even in promotion and many more etc.
Hr Supervisor and Its Role:
As Far as concerned to Mr. Tabish pursue the core responsibilities as HR supervisor;
He is involved in conducting Interview.
He is involved in preparing test and setting strategies to make it effective for management Staff
and non- management staff.
Engro Vopak Terminal Limited Page 11
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 12/34
Human Resources Management Report
He is organizing the issues, and make it possible of HR coordination with other department
He isn’t authorized to take decision, but absence of HR officer, he is the one who are normally
taking decision by letting know to her officer
He is also involved in additional responsibility of Administration department to minimum extent,
in a manner, 2nd officer of admin is a person who actually reporting to Tabish in the absence of
Admin Officer by considering him as 1st officer.
He is Involved in multiple tasking or we had better to called it as Job enlargement and job
enrichment of HR supervisor
Types of Employees
In Engro Vopak, employees are comprises of two categories i.e. firstly for
Management Employees and Secondly for Non- Management Employees (Technical
employees)
HR FUNCTIONS:
3.1-JOB ANALYSES:
Role of COED in Job Analyses
The Compensation organization and executive development committee (COED) is responsible for
analyzing the need and fulfillment of new vacant positions after getting know the requirement of hiring
on department requests where need occurs. In case COED ask to department about the request for hiring
new employees. After accepting the reason for hiring, COED then referred to HR department to conduct
the recruitment process by giving first advertising of vacant position in the newspapers.
Job Description
Although job description and specification is purely practical process they can’t explain in terms of words
because job description and specification is changed with the nature of jobs. These are the listing of duties
as well as desirable qualifications for a particular job e.g. the advertisement also specifies number of
year’s worth of experience to apply for the job.
Job Specification
Engro Vopak Terminal Limited Page 12
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 13/34
Human Resources Management Report
These are the characteristics and the abilities required from a person to work in that position such
as leadership and teamwork qualities or command over English.
Requisition Form
Mr. Tabish told us that when someone leaves the organization then usually need occur for hiring new
employees on the demand of that department, such positions can be fulfilled through external source or if
someone left from the top executive positions then it can be fulfilled through internal recruitment by
giving chance the potential executives employees which is observed by Compensation organization and
executive development committee COED to hire the employees in such department. It is a document inwhich just overview of required specification is mentioned like age of employees, Qualities required to
perform that job.
3.2-RECRUITMENT AND SELECTION PROCESS:
Engro Vopak Policies for Recruitment and Selection:
Policies for Recruitment and Selection as experienced at Engro Vopak are:
Recruitment Objectives
The policy is meant to ensure an effective and efficient method of recruitment and selection. It is aimed at
hiring without any discrimination based on race, color, sex, nationality, ancestry, religion or disability.
a) External Recruitment:
I. No candidate under the age of eighteen will be considered.
II. Human Resources will advise Department Heads on salary ranges to be offered to the applicant
keeping internal and external equity in perspective.
b) Internal Recruitment:
Internal candidates must be confirmed employees of Engro Vopak who have completed one year of
service. However exceptionally good candidates may be considered.
Selected candidates will join the new job/position after getting clearance from existing line manager.
General Conditions for Recruitment:
All recruitment will be done through the Human Resources Department in consultation with the Officers
and COED.
Engro Vopak Terminal Limited Page 13
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 14/34
Human Resources Management Report
The recruitment process plays a vital role in selection of right people for the right position at the right
time by Engro Vopak keeping in view the essential qualities of people for its continued success. Its
human resource is strong because Vopak has owned the human resource management system of its own
mother company i.e. Engro Chemical.
Even the Recruitment process is gone through for hiring fresh candidates and for existing employees in
each category of employees. If they talk about hiring new employees for new vacant positions then they
can use source of external recruitment or even they can refer to existing employees for the current
vacancy means Internal recruitment, even in such situation they can observe and use Management
replacement chart in order to fill executive position internally from management staff. Incase of
management staff, they get hired on permanent basis and non management staffs hired first on
prohabation period for 3 months and then get permanent. Even incase of management they can recruit
through outsourcing like through agency even through by surfing on net i.e. rozee.com are the probably
most important source.
Sources of Internal Recruitment Sources of External Recruitment
Employee Referrals Job Fairs
University Hunts
Advertising
Outsourcing
Agencies
(Rozee.com)
Walk-in Interviews
Recruitment Process for Management Employees:
I. Application Form\ Submission Of Resume
Submission of form is the basic criteria to show the true picture of their talents, interest, and
ambitions in order to get the job. It is the initial criteria to know and analyze the candidate through its
CV pattern, and mentioned qualification, experience and their skills in the resume which are
considered keys to judge for initial selection.
II. Evaluation of Resume
After receiving the resume of expected candidates, they need to observe and match the experience
and qualification of individual applied candidates with the requirement of the job description and job
specification. They also see the format of making CV that either it is up-to-date or not.
III. Short Listing
Engro Vopak Terminal Limited Page 14
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 15/34
Human Resources Management Report
Mr. Tabish and Mrs. Mona started then short listing of candidates after evaluation in which they keep
the resume of those candidates who fulfill minimum Requirement of Job Description and job
specification and can be considered them as few would be potential candidates.
IV. Test
The test is conducted by the HR department in which Mr. Tabish is personally engaged in preparing
the test format and organizing throughout till its end. The evaluation of Test is on the basis of
individual IQ levels, English Composition and Mathematics Tests. The duration of test is 1 hour and
it is checked manually by HR department.
V. Interview
The candidates who have successfully cleared the tests and have scored above than relevant mark are
then called for interview. The interview is conducted by four people, one executive and three
managers. All the four interviewers should preferably be from within the department but often that is
not the case.
VI. Recommendation to human resource department
Following the interview the employee of the particular department goes to the HR and gives
recommendation to the HR manager regarding the interview of the candidate. The HR then
conducts an interview with the candidate where they decide the Grade scale of the candidate, the
different benefits and the pay scale.
VII. Medical Examine
In this case, they examine the selected candidates through medical test, for that purpose they are send
to Aga Khan Hospital and the candidates whose medical test is cleared, will be finally considered as
potential candidate and will be hired in the organization.
VIII. Final Selection
After Passing successful candidates through Medical test, the officer of HR i.e. Mrs. Mona
then who will be finally offered to have contract with selected successful candidates under
the policy of the company. Although, Engro Vopak has small selection process which is
collectively discussed with recruitment process altogether. HR officer mainly emphasize in
IQ level in test and in subjective attributes and skills of Individuals for judging them incase
of selection.
3.3- ORIENTATION AND TRAINING OF NEW EMPLOYEES IN ENGRO
VOPAK:
The Engro Vopak, as part of its focus to ensure quality management system, made good progress towards
achieving ISO certification, business needs, including its growth. Structured orientation and training
programs were organized to facilitate early incorporation of the new hires.
Engro Vopak Terminal Limited Page 15
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 16/34
Human Resources Management Report
Orientation of New Employees in Engro Vopak
The objective of orientation is to acquaint all new employees with the basic structured and rules of Engro
Vopak. A new employee is given general information which contain which contains Organizational
Charts and other information related to Engro Vopak.
Engro Vopak provides orientation at two levels (a) Generic or Organizational level orientation within one
to two days in HR-department. (b) Department level orientation within the first week of the
employeement.
Disclose Full Information
To disclose essential to employees, Engro Vopak has a publication policy, according to which report on
all Engro Vopak activities, booklets, news articles and news letters are published sound communication in
Engro Vopak also allows each employee to know exactly what is expected as far as her/his
responsibilities and organizational mission statement, and what is happening within each organizationalarea communication between management and employees, who deal with clients and organizational
process, is encouraged at Engro Vopak
Training and Development
The aim of training and development in Engro Vopak is to provide employees with the necessary
skills and knowledge to fulfill the organization’s corporate and business plan. All training
sessions are delivered in a highly participative style, introducing topics in a challenging and
thought- provoking way. At AVTL training is provided at two levels that is (a) organizational
and (b) operational level.
At Engro Vopak, training is need based and employees can fill a need and can give suggestions.
Employees are trained for Management Profession and Technician.
Training Methods
• On the Job Training
• Special Training Sessions
• Team Building
• Problem Based
• Off the Job Training
On the Job Training:
Engro Vopak Terminal Limited Page 16
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 17/34
Human Resources Management Report
The Engro Vopak believes strongly that people grow and learn most effectively through
experience. Therefore, every opportunity is sought to try to develop an employee through work
related experience. Such development implies an expansion or stretching of abilities or aptitudes.
It has to be based on the knowledge, skills, and aspirations within oneself. This form of
development needs to be understood and actively supported by the employee and the supervisor.
Off the Job Training
To enhance work productivity, Engro Vopak continued with it’s off the job training programs to
develop the softer skills of its Management and Technician Employees. Specially designed
university- related programs from LUMS, PIMS and other training agencies; OCTRA, PSTD,
ACE Consultant and Winning Edge etc. Non-Management staff is only trained in-house
development centre.
Motivation
The HRM department of Engro Vopak motivates its employees by (a) Creating a friendly like
community, (b) providing interesting and rewarding jobs, (c) giving fair compensation and awards (d)
providing sports and recreational facilities like membership at Arabian sea country club, (e) sponsors
social events and outside activities (f) participating in different community welfare programs (g)
providing feedback and (h) providing training.
These motivating measures lead to better performance and productivity, enhancement in employee’s
skills, abilities and knowledge, reduction in turnover and encouragement of information sharing that is
high performance work system
Teamwork and Empowerment
Team work gives better results than that of individuals. At Engro Vopak makes remind with the habit of
out of the way thinking by assigning them motivational and recreational projects. Teams at Engro Vopak
(a) develop goals and plans, (b) enhance communication among members, (d) solve problems and make
decisions on a timely basis (e) successfully manage conflict, (f) clarify roles for team members, (g)
operate in productive manner, (h) exhibit effective team leadership and (j) provide developmentopportunities for team members. To empower employees. Engro Vopak uses self management work
teams and disclosure of essential information
3.4-PERFORMANCE APPRAISAL:
Engro Vopak Terminal Limited Page 17
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 18/34
Human Resources Management Report
Reviewing performance and taking positive steps to develop employees further is a key function of
management and is a major component in ensuring the success of the company through effective
employee performance.
Objectives of Performance Appraisals in Engro Vopak:
To measure the work performance:
• To motivate and assist employees in improving their performance
• And achieving their professional goals
• To identify employees with high potentials for advancements
• To identify employees training and development needs
• To provide a solid path for career planning for each individual
Appraisal Policy:
At Engro Vopak HR officer follows a regular scheduled in providing feedback to employees; they
providing a formal review program to evaluate work performance and to promote communication and
discussion of job performance with respect to past performance.
Performance Review
Performance appraisal is done on 4th, 8th, and 11th months of the year for management position and for non
management. It is done from January and February month for which forced distribution or bell curve
method is used where predetermined percentages of rates are placed into several performance categories.
Employees are empowered to monitor their own work and performance. There is separate section in the
performance evaluation form for employees. Employees are free to give feedback about their evaluation
and to identify their problems, needs and suggestions and then at the end of the process, the HR
department asks supervisor and employees about the problem and their solutions. There is three month
prohibationary period for non- management and technical employees Engro Vopak after which they are
permanently employed on the basis of their performance whereas management staff are directly selectedand done permanent.
Appraisal categories
Appraisal Category Definition of Category % of Total # OF
Employees Which Can
Be Related in This
Engro Vopak Terminal Limited Page 18
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 19/34
Human Resources Management Report
Category
1 Excellent Indicate exceptional performance 15%
2 Very Good Indicate performance that consistently meets
the requirement of the position, “very good”
indicates the is on track for advancement
10%
3 Good Indicate performance that requires
improvements (i.e. meet requirement without
initiative or advancement)
8%
4 Basic Performance to be improved ( hardly meet
requirement)
5%
Performance appraisal system of Engro Vopak links compensation to performance due to which
employees are motivated and committed. It also allows management to assess the performance of Engro
Vopak as a whole. It also identifies training needs and promotions and as a result employee’s skills and
knowledge is improved. It identifies employee’s weakness and strengths due to which employees
discover areas to improve and grow and ultimately improves productivity and Engro Vopak’s
performance. But the system lacks opinions of employees regarding their supervisor. This is the reason
that the employees at Engro Vopak are not entirely satisfied with the performance appraisal system.
Feedback:
Workers at Engro Vopak are informed of their performance and given the opportunity to express their
opinion over their own level of performance against each competence. This serves the following two
main purposes:
•It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist
that the reviewer is unaware of.
•By asking the worker what he sees to be his own strengths and development areas often help to reduce
negative responses and makes planning training needs/inputs activities easier if the person is able toexpress for himself the areas in which he feels he can improve.
Promotion Policies
Engro Vopak Terminal Limited Page 19
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 20/34
Human Resources Management Report
The Engro Vopak structure is in three layers, comprising managers, officers and supervisors------in that
order starting from the bottom and working towards the top rung of the ladder.
The COED is responsible for promotion within the organization. Whenever a position is vacant and a
member of the organization is to be promoted, a member of COED brings his case to the COED meetingwhere it is thoroughly discussed. After the case is discussed a voting is carried out and it decides whether
to promote the person or not.
Supervisor 3-4 years
Officer According to the COED decision
Manager According to the COED decision
.
3.5-COMPENSATION AND BENEFITS:
Engro Vopak provides its employees with market competitive salaries, but through financial mean such as
intrinsic and extrinsic rewards and retains employees which are reviewed at frequent intervals. The
Company's Total Remuneration package is competitively aligned to the best in the industry and isappropriately balanced between providing cash compensation and benefits, including, medical and
retirement benefits. The annual salary rewards are linked to employee performance. An Employee Share
Option Scheme operated by the Employees Trust offers new employees the opportunity to acquire
ownership in the Company.
This compensation system of Engro Vopak ensures that salaries are competitive and equitable which
attracts and retain the services of competent qualified employees, providing fair and equitable
compensation, motivates employees, improves employee’s commitment and increase labor productivity
and performance.
Salary policy:
The company will pay salaries of the employees as fallows
• All new employees have to open bank accounts in specified banks prescribed by the company so that
their salary will be credited at the end of each month.
• After opening account with the bank employees should forward his account number to HR.
Engro Vopak Terminal Limited Page 20
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 21/34
Human Resources Management Report
• Upon termination of services the employee will receive his salary within 15 days up to the time of
date of his last working day.
• Upon resignation the employee will be paid his dues during a maximum period of 15 days from the
date he left the job.
Bonuses
The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives. In Engro
Vopak the reward system is based on the individual performance and individual employee performance is
judged for the reward. The manager of respective departments recommends a candidate from his section
for the reward purpose to HR .
Reward Categories at Engro Vopak :
Intrinsic and Extrinsic rewards include:
• Smart/Quality work
• Exceptional performance in a project
• Targets achievements
• Special assignments
• Medical care
• Life insurance
• Vacations
• Club Policy Travel
• Education assistance policy
• Mobile phone
• Business mobile phone policy
• Medical entitlement
Job Evaluation
Engro Vopak Terminal Limited Page 21
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 22/34
Human Resources Management Report
Engro Vopak Conducts salary surveys for non-management position through formal phones. Whereas
Engro Vopak collects the current pay rate which is exist in the market through mainly Ferguson at the
time of yearly audit of the same industry for management level of positions.
3.6-CAREER DEVELOPMENT
Engro Vopak is committed to the essential concept that career development is a shared responsibility,
with employees’ part in it being an active and positive one. Its aim is to match employees’ personal
needs, desires and skills with the requirements of the Company for the right person in the right job at the
right time. Their system requires employee’s contribution to the discussion about the future at the time of
the appraisal interview.
3.7-RETENTION OF EMPLOYEES
Engro Vopak is a small organization related to chemical, oil and gas storage tank, its workforce is around
consisting of 80 to 90 employees. Their business isn’t affected to this recession due to nature of having
such business, as compare to other companies, employees turnover is considerable lesser than other
companies, but in last year, they immediately suffered employees turnover around 4 to 6 employees and
afterwards they have analyze the reason and try to bridge the gaps between the employees satisfaction
through their incentives and giving them multiple task (challenging tasks)
3.8- HEALTH & SAFETY POLICIES:
The safety of employees is everyone’s responsibility. Accidents, precaution and efficient work go hand
in hand. All levels of employees have a primary responsibility for the safety and well being of all of
Engro Vopak.
• Therefore, interest in practicing safety prevention must be encouraged by:
• Setting good examples.
• Acting upon safety records.
•
Reviewing safety programs.
• Starting activities that will stimulate and maintain employee’s interests.
No phase of operation of administration is of greater importance than accident prevention. It is the policy
of the Company to provide and maintain safe and healthy working conditions and to follow operating
practices that safeguard all employees and result in safe working conditions and efficient operations.
Engro Vopak Terminal Limited Page 22
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 23/34
Human Resources Management Report
4-SWOT ANALYSIS:
According to HR- Perspective:
Strengths:
• Small size of the organization gives the strong control to the HR-department over the employees.
• Less HR-problem due to small company size.
• Engro Vopak believes in making people realize their full potential and capabilities which is why jobs
are designed to be challenging and goals are made to be achievable yet competitive. This results in a
high level of motivation and job satisfaction for the employees and automatically promotes a healthy
work environment.
• More job satisfaction yield to less turnover and absenteeism.
• The company has a very well balanced and realistic incentive program. It also focuses on giving
additional benefits to its employees apart from the basic remuneration. This results in employees
giving their “Heart and Soul” in working for their employer.
• The HR practices of Engro Vopak greatly enhance its image as a company that wants to contribute
towards the society in every possible way. As the main focus is on developing better people not just
better employees.
• Open friendly environment/ open-door culture gives the better interaction between the management
and employees.
Weaknesses:
• The most important weakness is that the HR-department has not direct access to the top management
of ECL.
• Obsolete method are using in the Engro Vopak for recruitment process.
• The size of HR-department is consisting on two- people therefore they have overloaded by others
responsibilities.
Opportunities:
Engro Vopak Terminal Limited Page 23
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 24/34
Human Resources Management Report
• The company can discover great potential through the future graduates as every generation is being
taught in more effective manner that leads to better growth. Being a leading company in the storage
and safety of chemical of Pakistan Engro Vopak can recruit the “cream of graduates” every year and
utilize their improved knowledge and abilities.
• With the expansion in the company business in Pakistan, the HR department can be expended in
order to manage diversity of workforce.
• They have an opportunity to introduce Liquid Natural Gas (LNG) in the Pakistani market.
Threats:
It is very difficult to find any threat for company because of the no competitor exists in the market.
5-CONCLUSION
Human resource is one of the most exciting and challenging departments of the organizations. People are
very important in any organization. Because it is the people who start the business activity, run systems,
make all business decisions. Human resource is such a resource which manages all the other resources of
organization. Keeping this fact in mind all the organizations who want to survive in the coming era have
to pay special attention to their human resource departments. The best practices of human resource
management are used to develop and improve organizational employees, who, in turn are able to enhance
performance of the organization and develops high performance work systems. Any HRM practice alone
cannot enhance the performance of the company unless it is combined with other practices of human
resource management. So a proper linkage must exist among all the practices to achieve high
performance work system.
To conclude ENGRO VOPAK has a moderate HR system. That is the reason they didn’t found much
discrepancies in what management says, what policies state and what employees say. 90 % of the times
they were same. There are some minor discrepancies but they are adjustable with little effort.
Engro Vopak Terminal Limited Page 24
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 25/34
Human Resources Management Report
6-RECOMMENDATIONS:
To establish core competencies and to bring competitiveness, ENGRO VOPAK should
implement numerous effective plans to improve the performance of its various departments.Supervisors must manage employee performance well in order for ENGRO VOPAK to
accomplish its mission and achieve its goals.
Following are some recommendations for ENGRO VOPAK, which we personally feel can be
useful for the organization, its employees and the customers.
Effective Performance Management
Performance management is one of the most important parts of a Supervisor’s or team leader’s
job. Developing skills in performance Management is wise investments that will help ENGRO
VOPAK to achieve its Goals. Managing employee performance includes:
1. Planning work and setting expectations.
2. Monitoring and measuring performance.
3. Developing the capacity to perform.
4. They should rate employee Performance on the basis of 360 degree because it has small
size so they can effectively do that.
They Should Do:
1. HR should develop there own policies in Engro Vopak instead of following mother
company policies i.e. Engro Chemical
2. It should be segregated from the supervision of Finance department and should work as
Separate HR department and so that they report directly to the top management instead
of through finance department.
Engro Vopak Terminal Limited Page 25
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 26/34
Human Resources Management Report
3. There is need to have some kind of format replacement charts and forms for job
description and performance appraisals instead of working on manually basis.
4. Technological advancement is required for integration of employees like intranet.
5. Size of the company should be increased from 90 to onwards and although their HR
department require increasing in HR manager from 2 to 5 so that the extra burden
should be distributed on equally basis or as per credibility and so that quality of
standards should achieved but also maintained it because HR of any Company can be
considered as asset for the organization.
6. They must conduct the exit interview.
REFERENCES:
MUHAMMAD TABISH
HR-Supervisor
Engro Vopak Terminal Ltd.
Tel#: (92) 21 5610388
Mobile#: 0322-2262293
Engro Vopak Terminal Limited Page 26
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 27/34
Human Resources Management Report
INTERVIEW QUESTIONS
JOB ANALYSIS
1. How does the selection cycle work at Engro Vopak Ltd? And how do you plan for this?
2. What are the top five competencies and skills you look for in candidates? OR What are the
attributes you will see in the potential candidates for hiring (what are the criteria you have set to
hire the potential one)?
3. How do you collect information for job description and job specification? And at what extent
those are effective in collecting valid information? OR What are the methods you used to collect
the job analyses information?
4. What are the job description and job specification are required for hiring hr employees and hr
specialist?
5. How do you job enrichment, job rotation and job enlargement to enhance the performance and
skills to accomplish organizational goals?
6. Do you have software programs to identify the competencies and skills of candidates?
RECRUITMENT AND SELECTION
1. What are the methods you commonly used in recruitment of employees?
2. What do you prefer commonly either internal recruitment or external recruitment?
3. Do you link with employeement agencies and at what extents to these agencies are effective in
outside recruitment?
4. Could you please tell us about your succession planning? OR How do you plan, recruit and selectfor managerial positions?
5. Why careful selection is important and what are the methods that you used in selection of
employees and how long does it take?6. Do you prefer to verify the background and references check which is mentioned by the
candidates?
7. As a major partner in ROZEE.PK’s Online recruiting tools’ how would you rate the success &
importance of online recruitment firm such as ROZEE.PK?
8. What’s your budget on advertising or ad’s construction to recruit best candidates?
Engro Vopak Terminal Limited Page 27
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 28/34
Human Resources Management Report
CANDIDATES TESTING AND SELECTION
1. Which type of tests are you using in the selection process?
2. Have you management assessment centre and which types of exercise you use to trainthem?
3. What are the main things you look for in pre employeement background investigation?
INTERVIEWS
1. Which type of questionnaires’ you asked during the interviews?
2. Is there company following the concept of retention of employees and if so how they are doing
(normally employer force employees to sign on bond)? OR What kind of retention policies do you
have in place?
3. What do you think is the biggest mistake shortlisted candidates make during a job interview?
TRAINING AND DEVELOPMENT
1. How do you make new employees familiar with EFL’s rules and regulation?
2. How long does an orientation program take in EFL?3. How do you identify training requirement?
4. Which type of training programs do you use and what extent those are effective for new
and existing employees on the job and off the job training?5. How do you actually make employees intact with one another’s?
6. How effective are your internal communication system to record employees satisfaction
or discontents?
7. Does Engro emphasize on work life balance in its organization and how do you achievethis balance?
8. How much you allocated your budget for employees’ training and development?
PERFORMANCE APPRAISALS
Engro Vopak Terminal Limited Page 28
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 29/34
Human Resources Management Report
1. What are the criteria to evaluate the performance of employees in EFL? And what methods do you
use for it?
2. Could you please tell us about your MBO’s Programs?
3. Which type of problems do you face in performance appraisal and what do] you do to resolve
them?4. How do you provide promotion and on what basis?
COMPENSATION AND BENEFITS
1. How do u think employee safety and benefits are important to encourage the employees morale
and performance
2. Which type of compensation and benefits programs are offer to the employees in EFL?3. Is there any retirement benefit or some kind of provident fund benefit provided by organization to
employees?
HEALTH AND SAFTY PROGRAMS
1. What do you do for health’ safety and security for the employees in EFL?
MANAGEMENT AND CBA RELATIONSHIP
1. How is the relationship between management and at what extent it is effective for the
EFL?2. Could you please tell us about some key HR legislation? OR What are common hr laws that
are followed by organization like EEO?
3. Do Engro employees have freedom or empowerment in taking decisions and if so then to whatextent?
4. How do you see important to have diverse work force in organization?
GENERAL OPINION
1. What are Engro’s principles of success?
Engro Vopak Terminal Limited Page 29
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 30/34
Human Resources Management Report
2. What are your biggest professional challenges?
3. Is competition creating opportunities for EFL and how?
4. What kind of career growth can one expect in EFL?5. What kind of work environment do you have in place?
6. Do you believe that Pakistani Universities are creating an effective talent pool and what isyour company’s strategy to attract and create the best talent in Pakistan?
7. Due to rough economic situation and soaring price rise how does your company deal with
keeping itself cost effective and attractive for job seekers?
8. How does Engro keep its graduates and faculty up to date with new trends?
9. While the dairy, chemical and fertilizer industry among others are facing competition’where do you see Engro overall in the next five years?
10. At what levels do you actively recruit professionals are required for the training?11. How do you see your strategic human resource role in organization and to what extent it would be
helpful to achieve your strategic goal?
Engro Vopak Terminal Limited Page 30
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 31/34
Human Resources Management Report
Job Application Form
PERSONAL INFORMATION:
First Name _____________________________
Middle Name ___________________________
Last Name _____________________________
Street Address
_______________________________________________________
City, State, Zip Code
_______________________________________________________
Phone Number
(___)___________________________________
Are you eligible to work in the United States?
Yes _______ No_______
If you are under age 18, do you have an employment/age certificate?
Yes ___ No ___
Have you been convicted of or pleaded no contest to a felony within the last five years?
Engro Vopak Terminal Limited Page 31
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 32/34
Human Resources Management Report
Yes_______ No_______
If yes, please explain: _________________________________________
__________________________________________________________
POSITION/AVAILABILITY:
Position Applied For
________________________________________
Days/Hours Available
Monday ____Tuesday ____
Wednesday ____Thursday ____Friday ____Saturday ____Sunday ____
Hours Available: from _______ to ______
What date are you available to start work?
________________________________________
EDUCATION:
Name and Address Of School - Degree/Diploma - Graduation Date
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Skills and Qualifications: Licenses, Skills, Training, Awards
_____________________________________________________________
_____________________________________________________________
Engro Vopak Terminal Limited Page 32
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 33/34
Human Resources Management Report
EMPLOYMENT HISTORY:
Present Or Last Position:
Employer: _____________________________________________________
Address:______________________________________________________
Supervisor: ____________________________________________________
Phone: _______________________________
Email: ________________________________
Position Title: _________________________
From: ______________ To: ______________
Responsibilities: ____________________________________________________
__________________________________________________________
Salary: _______________
Reason for Leaving: ____________________________________________
===========
Previous Position:
Employer: _____________________________________________________
Address:______________________________________________________
Supervisor: ____________________________________________________
Phone: _______________________________
Email: ________________________________
Position Title: _________________________
From: ______________ To: ______________
Responsibilities: ___________________________________________________
Engro Vopak Terminal Limited Page 33
8/6/2019 Evtl Hrm Report
http://slidepdf.com/reader/full/evtl-hrm-report 34/34
Human Resources Management Report
__________________________________________________________
Salary: _______________
Reason for Leaving: ____________________________________________
May We Contact Your Present Employer?
Yes _____ No _____
References:
Name/Title Address Phone
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
I certify that information contained in this application is true and complete. I understand that false information may begrounds for not hiring me or for immediate termination of employment at any point in the future if I am hired. I authorizethe verification of any or all information listed above.
Signature______________________________
Date__________________________________