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ORGANIZATIONAL BEHAVIOUR

Report on

PAK ELEKTRON LIMITTED (PEL)

Presented To
SIR Mr.Col.Sohail Akram ( R ).

Presented By

ADNAN YOUNAS 063112

MUSAWER RASHEED 063119
SOHAIL KHALID 063127
MUNIER HUSSAN 063138
RABIAL WAHEED 062111

The Institute of Management

Sciences
A Project of AL-KARIM EDUCATIONAL FOUNDATION [AKEF]

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Table of Contents:-
Acknowledgemnet.....................................................................................................08

Dedication..................................................................................................................09

Vision and Mission…………………………………………………………………10

Company Profile.......................................................................................................11

Company Information...............................................................................................12

DIVISIONS

Refrigrators..........................................................................................................12

Air Conditioner....................................................................................................12

Microwae Ovens..................................................................................................25

Power Division.....................................................................................................13

Group Profile............................................................................................................15

PEL Organization Sturcture...................................................................................18

Company information……………………………………………………………….24

ISO 9001 certification……………………………………………………………….26

EPS contracting…………………………………………………………………..…27

Organizational Behaviour in PEL…………………………………………………..32

Business Communication at PEL…………………………………………………..37

HUMAN RESOURSE MANAGEMNET in PEL…………………………………43

Organogram.............................................................................................................46

Recruitment and Selection...................................................................................47

Training and Developmnet...................................................................................53

Orientaiton ..........................................................................................................54

General guidelines...............................................................................................55

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Performance Appraisal.........................................................................................59

Recommendations................................................................................................61

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Acknowledgement

We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill

this tiring, but interesting job for the completion of our report.
The present project is submitted to Mr.Col.Sohail Akram ( R ). We
express our deep sense of indebtedness to him for his invaluable advice and
encouragement and for giving us very useful information that helped us a lot
in completing this project.
We also want to pay a bundle of thanks to each and every person how
has put indeed effort to make this project possible. It is also our duty to pay
thanks to our parents for the moral and financial support.
Last but not least we also feel please to thanks to the whole
management of Pak Elektron Limitted (PEL) in general for their
cooperation in the formulating of this project.

All Group Members

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Dedications

“We dedicate this project to our Parents, Teacher and Mr. M YOUNAS
who help us to complete this project and finally to each group member”.
Because;
• What ever we are it’s because of our parents.

• Our teacher makes us able to face different challenges and win

those challenges.
• Last but not least group members, who support us a lot and
contribute their full effort to make this project possible.

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Vision

“To excel in providing engineering goods and services

through continuous improvement.”

Mission Statement
• To provide quality products & services to the complete satisfaction of our
customers and maximize returns for all stakeholders through optimal use of
resources
• To focus on personal development of our Human Resource to meet future
challenges
• To promote good governance, corporate values and a safe working environment
with a strong sense of social responsibility

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PEL
(Pak Elektron Limited)
PEL (Pak Elektron Limited):
Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in
Pakistan. It was established in 1956 in technical collaboration with M/s AEG of
Germany. In October 1978, the company was taken over by Saigol Group of Companies.
Since its inception, the company has always been contributing towards the advancement
and development of the engineering sector in Pakistan by introducing a range of quality
electrical equipments and home appliances and by producing hundreds of engineers,
skilled workers and technicians through its apprenticeship schemes and training
programs.

The PEL comprises two divisions:

• Appliances Division
• Power Division
.

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APPLIANCES DIVISION

PEL’s Appliances Division is the flag carrier of the Saigol Group. This Division of
PEL consists of appliances manufacturing.

PEL Air Conditioners :

“Winner of Consumer Choice Award”

PEL window-type air conditioners were introduced in 1981 in technical

collaboration with General Corporation of Japan. Ever since their launch, PEL air
conditioners have a leading position in the market. PEL air conditioners cooling
performance has been tested and approved by Copeland and ITS USA. With the shift of
users preference from window type to split type air conditioners, PEL has started
manufacturing split type air conditioners.

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PEL Refrigerators

The manufacturing of refrigerators started in 1986-87 in technical collaboration

with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in
great demand. Today, PEL Crystal has 30% market share. Its cooling performance is
tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002
certified by SGS Switzerland.

PEL Deep Freezers

PEL deep freezers were introduced in 1987 in technical collaboration with M/s
Ariston of Italy. Because of durability and high quality, PEL deep freezers are the
preferred choice of companies like Unilever.

POWER DIVISION

PEL Power Division manufactures energy meters, transformers, switchgears,

Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods are
manufactured under strict quality control and in accordance with international standards.

PEL is one of the major electrical equipment suppliers to Water and Power
Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC),
which are the largest power utilities in Pakistan.

Over the years, PEL electrical equipment has been used in numerous power
projects of national importance within Pakistan. PEL has the privilege of getting its
equipment approved and certified by well-reputed international consultants such as:

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Preece, Cardew and Rider, England

Harza Engineering Company, USA
Snam Progeti, Italy
Societe Dumezm, France
Miner & Miner International Inc. USA
Ensa, France

In spite of stiff competition from emerging local and multinational brands, PEL
Group's appliances and electrical equipments have remained in the spotlight due to
constant innovation. Strategic partnership with multinationals of repute have enabled the
PEL Group to incorporate new technologies into existing product ranges, thus giving the
Pakistani market access to innovative, affordable and quality products.

In1981, PEL window type air conditioners were introduced, in technical collaboration
with General Corporation of Japan. Today, PEL air conditioners hold
approximately 45% market share.

In 1986-87, the company started manufacturing in technical collaboration with M/S

IARSILAT of Italy and PEL deep freezers were introduced.

In1993, with technical collaboration of NECCHI of Italy, the company started assembly
and manufacturing of compressors for refrigerators and deep freezers.

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Group Profile

History :
In 1948, the Saigols migrated from Calcutta and initiated their business in
Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of
Kohinoor Industries Limited.

Kohinoor Textile Mills :

The Saigols set up the first major textile unit - The Kohinoor Textile Mills under
the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has state-of-the-
art quality control from raw material to finished product manufacturing. Its laboratory is
top rated amongst the best laboratories in Pakistan for testing of textile raw materials,
other inputs and yarn.

Initial Capacity : 25,000 spindles

Current Capacity : 71,648 spindles

Pak Elektron Limited (PEL) :

In 1978, the Saigol Group of Companies purchased major shares of Pak Elektron
Limited. At that juncture, the company was only manufacturing transformers and
switchgears. With the Saigols in management, PEL started expanding its product range
by entering into Air Conditioner manufacturing.

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The PEL Group comprises two divisions

Appliances Division
• Power Division

Appliances Division

PEL’s Appliances Division is the flag carrier of the Saigol Group. This Division of
PEL consists of home appliances manufacturing.

In 1981, PEL window type air conditioners were introduced in technical collaboration
with General Corporation of Japan.

In 1986-87, the company started manufacturing of refrigerators in technical collaboration

with M/s IAR-SILTAL of Italy.

In 1987, PEL deep freezers were also introduced in technical collaboration with M/s
Ariston of Italy.

In 2006, the Company has started manufacturing of split type air conditioners of various
capacities as the customer choice has shifted from window type to split type air
conditioners. The product has received good response from the market, which encourages
the company to multiply its production in the coming years.

Today, PEL has become a household name. Its products are not only in great
demand in the local market but the Company has also started exporting its appliances to
foreign markets.

Power Division

PEL Power Division is one of the major electrical equipment suppliers to

WAPDA & KESC. Since 1956 the company manufactures transformers, energy meters,
switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the
privilege of getting its equipment approved and certified from well-reputed international
consultants such as:

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• Preece, Cardew and Rider, England

• Harza Engineering Company, USA
• Snam Progeti, Italy
• Societe Dumezm, France
• Miner & Miner International Inc. USA
• Ensa, France

Pak Elektron Limited alone has a turnover of over 180 million US Dollars.

Saritow Spinning Mills & Azam Textile Mills

In 1987, the Saritow Spinning Mills and Azam Textile Mills were established under the
banner of Saigol Group of Companies. Saritow Spinning Mills is a spinning unit with
25,440 spindles capacity. Facilitated with the most modern andefficient Japanese and
European machinery, its knitted yarn is renowned in the Far East and Europe for its fine
quality. Azam Textile Mills is reputed for its carded and combed yarn, which is quite
popular for premier knitting and weaving.

Kohinoor Power Company Limited

In 1991, the first power unit commissioned in Pakistan, in the Private sector, was
Kohinoor Power Company Limited. Its present production capacity is 15 MW.

Kohinoor Energy Limited

1995, another power unit, Kohinoor Energy Limited, was established. Kohinoor
Power Limited is a 120 MW power plant located on the outskirts of the city of Lahore.
This project has an annual turnover of $80 million

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PEL’S ORGANIZATIONAL
STRUCTURE

PAK ELEKTRON LIMITED

FINANCE DEPARTMENT

MARKETING DEPARTMENT

HR DEPARTMENT

IMPORT & EXPORT DEPT

IT DEPARTMENT

ADMIN DEPARTMENT

ACCOUNTS DEPARTMENT

PEL’S is mainly consisted of seven departments i.e. Finance, Marketing, HR,

Import & Export, Information technology, Administration and Accounts Department.
These departments play an important role in the success of the organization, due to the
fact that the coordination between these departments is excellent.

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HIERARECHY OF PEL

CEO

FINANCE MANAGER

HR MANAGER

IMPORT&EXPORT
MANAGER

MARKETING MANAGER

ADMIN MANAGER

IT MANAGER

ACCOUNTS
MANAGER

CEO is the main controller of the whole organization. Heads of all departments
directly reports to CEO. These people are mainly involved in policy creation of the
company. All the major operations of the company go under the review of these
departmental heads.

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FINANCE DEPARTMENT

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

EXECUTIVE FINANCE MANAGER

MARKETING DEPARTMENT

MARKETING MANAGER

ASSISTANT MARKETING MANAGER

EXECUTIVE MARKETING MANAGER

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HR DEPARTMENT

HR MANAGER

ASSISTANT HR
MANAGER

EXECUTIVE HR MANAGER

IMPORT&EXPORT DEPARTMENT

IMPORT&EXPORT MANAGER

ASSISTANT IMPORT&EXPORT MANAGER

EXECUTIVE IMPORT&EXPORT MANAGER

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I.T DEPARTMENT

I.T MANAGER

ASSISTANT I.T
MANAGER

EXECUTIVE I.T MANAGER

ADMIN DEPARTMENT

ADMIN MANAGER

ASSISTANT ADMIN MANAGER

EXECUTIVE ADMIN MANAGER

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ACCOUNTS DEPARTMENT

ACCOUNTS MANAGER

ASSISTANT ACCOUNTS MANAGER

EXECUTIVE ACCOUNTS MANAGER

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Company Information
BOARD OF DIRECTORS

Mr. Naseem Saigol (Chairman/Chief Executive)

Mr. Azam Saigol
Mr. Murad Saigol
Mr. Muhammad Rafi Khan
Mr. Haroon Ahmad Khan (Managing Director)
Mr. Homaeer Waheed
Mr. Gul Nawaz (NIT Nominee)
Mr. Masood Karim Sheikh (NBP Nominee U/S 182 of the Ordinance)
Mr. Tajammal H. Bokharee (NBP Nominee U/S 182 of the Ordinance)
Mr. Wajahat A. Baqai (NBP Nominee U/S 182 of the Ordinance)

AUDIT COMMITTEE

Mr. M. Azam Saigol (Chairman/Member)

Mr. Haroon A. Khan (Member)
Mr. Tajammal H. Bokharee (Member)
Mr. Gul Nawaz (Member)

COMPANY SECRETARY

Sheikh Muhammad Shakeel FCA

CHIEF FINANCIAL OFFICER

FCA
Syed Manzar Hasan

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AUDITORS

M/s Yousaf Adil Saleem & Co.

Chartered Accountants

LEGAL ADVISORS'

M/s Hassan & Hassan Advocates

BANKERS

Bank of Punjab
Bank Alfalah Limited
Faysal Bank Limited
National Bank of Pakistan
NDLC-IFIC Bank Limited
PICIC Commercial Bank Limited
Saudi Pak Commercial Bank
Union Bank Limited

REGISTERED OFFICE WORKS

17-Aziz Avenue, Canal Bank, 14Km, Ferozepur Road,

Gulberg-V, Lahore. Lahore
Tel: 042-5718274-5, 5717364-5 Tel: 042-5811951-7 (7 Lines)
Fax: 042-5715105 Website: www.pel.com.pk
E-mail: shares@saigols.com

ISO 9001 Certification

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PEL was 16th Company in Pakistan which got ISO 9002 Certification in 1997,
since then PEL Management is applying this International Standard Practices for
Effectively Managing Quality of Products and Services that Company Offers. The
International Standard Practices in PEL have been Upgraded as per the Revised ISO
9001 Standards and its Scope of Application is expanding ever since and Top
Management is Committed to make PEL a Total Quality Management (TQM)
Company.

In our Company Quality is the Subject of Management at all Levels. We focus on

continuous improvement in our Systems thus establishing Good Management Practices,
we are committed to and making continuous efforts in developing and strengthening our
internal and external customers and suppliers. Employees training & development and
their participation are the KEY forces which are increasing our Organization's
Capabilities thus making it more competitive and fast growing Company.

Top management is not only tremendously improving our Working Environment

but also investing in Improving internal Communication Network for better Teamwork.
Continuous Up-gradation in production facility/equipment in the pursuit of State-of-
the-art production technology reflects management Vision and commitment for
Quality. Over fifty years of manufacturing experience with cooperative and dedicated
employees coupled with performance based system and Data Analysis enable
management to take Preventive Actions before things really go wrong.

One of the Mission of organization to promote good governance and corporate

values with a strong sense of social responsibility.

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EPC Contracting

Power Projects PD is a new addition to PEL with a purpose to establish a national

source of catering specialized jobs of execution of turnkey and EPC electrical projects. At
an age of just three years, Power Projects PD has recognized its presence in the market by
undertaking 132kV substations and industrial and residential societies electrifications
turnkey projects against multinational companies. Pakistan Engineering Council has
granted it licence in C-1 (No limit) category.

PEL, a strong base of manufacturing of power transformer, distribution

transformers, MV/LV switchgears, energy meters, control and relay panels give
confidence Power Projects PD to install these equipment for its projects. In addition, it
has established technical association with GANZ, (Hungry), SEL (USA) and RMS
(Australia).

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Activities

Turnkey or customized projects

Marketing
Proposals/Tendering
Primary and secondary engineering
Project Management
Project Execution
Technical support and solution

Turnkey Projects Under Execution:

Gujranwala Electric Power Company 132/11kV AIS Grid Station, Ghuinke,

(GEPCO) Sialkot
Lahore Electric Supply Company 132/11kV GIS Grid Station, Sheranwala
(LESCO) Gate, Lahore
Islamabad Electric Supply Company 132/11kV AIS Grid Station, PAC Kamra,
(IESCO) Attock
Islamabad Electric Supply Company 132/11kV GIS Grid Station, DHA
(IESCO) Islamabad
National University of Science & External Underground Electrification
Technology (NUST), Islamabad System
Kohinoor City Faisalabad External Underground Electrification
System
Iqbal Avenue Cooperative Housing External Underground Electrification
Society Lahore System
House Building Finance Corporation External Underground Electrification
Lahore System
GM (Projects) North WAPDA External Overhead Electrification System
of 4 Towns on Turnkey Basis - Mangla
Dam Raising Project
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Projects Completed

Islamabad Electric Supply Company 132/11kV AIS Grid Station, Satellite

(IESCO) Town Rawalpindi
Defense Housing Authority Phase-VI 132kV Substation Equipment: Supply of
Package I&II MV switchgear

Askri Villas (Phase-I) Lahore Cantt. External Underground System on Turnkey

Basis

Margalla View Housing Scheme D-17 132kV Grid station Sangjani: Supply of
Zone-II, Islamabad MV Switchgear
Sapna City, Faisalabad Supply of 100KVA & 200KVA
Transformers & 11kV Panels
EDEN Developers, Lahore 132kV Substation Equipment: Supply of
MV Switchgear
Provisional Govt. Employees Cooperative 132kV Substation Equipment: Supply of
Housing Society, Lahore MV Switchgear
Sunder Industrial Estate Supply of 500KVA, 750KVA & 1250KVA
Pad Mounted Transformers
Ministry of Defense, Rawalpindi 132/11kV, Substation (ext), Details
Installation of 10/13 MVA Power
Transformer Bay, Complete with 132kV
CB’s, CT’s, DS, Control & Prot. and
Auxiliary Equipments
M/s Leisure Textiles Pvt. Multan Road 132/11kV Grid Station Manga Mandi:
Lahore Supply of MV Switchgear
Ali Riasat Steel Industry Lahore 132/11kV Grid Station Shamkey:
Installation and Commissioning of MV
Switchgear and Cabling

Hattar Textile Mills Ltd., Haripur 132kV Substation Equipment: Supply of

MV Switchgear
Din Textile Mills, Lahore Substation Equipment: Supply of MV
Switchgear
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Bashir Sons Steel Furnace, Gujranwala 132kV Substation Equipment: Supply of

MV Switchgear
Faisal Zabih Construction Company 132/11kV Grid station at Bargam,
Afghanistan: Supply and Installation of
Transformers
Ravi Steel Co. Awami Complex Lahore 132/11kV Grid Station: Installation,
Testing and Commissioning of Power
Transformer, Capacitor Bank and MV
switchgear at Steel Melting Furnace &
Billet Making Plant to “Tooalz” Aktau
City Kazakhastan
Haji Muhammad Aslam Modren 132/11kV I-10 Substation: Supply of MV
Engineering & Re-rolling mills Faisalabad Switchgear
Sufi Rehman Textile mills Faisalabad 132/11kV Grid station Haveli Bahader
Shah, Jhang: Supply of and MV
switchgear
M/s Madina Steel, Gujranwala 132/11kV Grid Station Hafizabad, Supply
of MV switchgear
Hashim Sharif Flour Mills, Islamabad Substation Equipment: Supply of MV
Switchgear
Pakistan Broadcasting Co., Karachi Substation Equipment: Supply of MV
Switchgear
Hi-Tech Spinning Mills Ltd. 132kV Substation Equipment: Supply of
MV Switchgear
Awais Qurni Spinning Mills Ltd. 132kV Substation Equipment: Supply of
MV Switchgear

Medigas Oxygen (Pvt) Ltd. Phool Nagar 220/132kV Grid Station Sarfraz Nagar:
Supply of MV Switchgear
DAD Works, Rawalpindi 132kV Substation Equipment: Supply of
MV Switchgear
Husnain Nordic, Lahore 132kV Substation Equipment: Supply of
MV Switchgear
Punjab Small Industries, Faisalabad 132kV Substation Equipment: Supply of
MV Switchgear
M/s Lalazar Spinning Mills. G.T Road 132/11kV Grid Station Old Sahiwal:

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Sahiwal Extension Work of MV Switchgear

Builders & Developers (for New Aurega, 132kV Substation Equipment: Supply of
Lahore MV Switchgear
Wapda Town, Lahore 132kV Substation Equipment: Supply of
MV Switchgear

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ORGANIZATION
AL
BEHAVIOR
AT
PEL
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IMPORTANCE OF ORGANIZATIONAL BEHAVIOR

Organizational behavior is the new concept. Many organizations are now focusing
on this new concept Organizational Behavior. Organizational Behavior is important
because it scientifically enhanced the productivity of the employees. It studies the
behavior of the employee and tries to change their behavior for the benefit of the
organization.

“A field of study that investigates the impact that individual, groups and structure has
on behavior within organization, for the purpose of applying such knowledge toward
improving an organization’s effectiveness”

MANAGING WORK FORCE DIVERSITY

The concept that organizations are becoming more heterogeneous in terms of

gender, race, ethnicity, sexual orientation, and inclusion of other diverse group is called
work force diversity.
There are number of work force diversities some of them are given below:

• Disabled Persons
• Gender Issues
• Age Factors
• Temporary Casual Contractors
• Other Back Word Castes

The same thing is happening at PEL (PVT) Ltd. Employees at PEL (PVT) Ltd
belongs to different areas, different values and background55s. For example most of the
labor belongs to Sheikhu Pura, ?, where as higher level managers belong to Lahore,
Islamabad, Faisalabad and even from America. Therefore it is often difficult to
communicate with each other at plant or at higher level meetings. But employees at PEL
have over come these communication barriers and they work as the one unit in
organization

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IMPROVING QUALITY AND PRODUCTIVITY (TQM)

The concept of TQM was established in 1990’s. This concept includes the
constant attainment of customer’s satisfaction through the continuous improvements of
all organizational process. The concept of TQM suggests that every employee inn
organization feel that he is responsible for all the activities

What is quality management?

1. Intense focus on customer

The same practices
2. concern for continuous improvement can also be seen at PEL

3. improvements in quality of every thing the organization (PVT) Ltd. Every

does employee at PEL (PVT)

4. Accurate measurement Ltd feels that he is the

responsible for all the
5. Empowerment of employees
organizational functions
and therefore he contributes effectively and efficiently. PEL (PVT) Ltd focuses on the
continuous improvement in quality and they think that their products are still lacking the
perfect quality, this thing always motivate PEL (PVT) Ltd to improve their quality
continuously

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BUSINESS

COMMUNICATIO
N

AT

PEL

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COMMUNICATION PROCESS

COMMUNICATION

Communication is an exchange of facts, ideas, opinions, or emotions, by two or

more persons.
OR
Communication is a purposeful activity through which message are transmitted
from one person to another through a language common to both. The process may be
written as well as oral.

FUNCTIONS OF COMMUNICATION
• Interpersonal Communication
• Organizational Communication

INTERPERSONAL COMMUNICATION

It is a communication between two or more person. This kind of communication

is present everywhere and in all types of organization.

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COMMUNICATION PROCESS at PEL (PVT) LTD

Communication process at PEL (PVT) Ltd consists of following components.

 Message
 Encoding
 Channel
 Decoding
 Feedback

MESSAGE

The message is the idea/ideas the sender wants to communicate to the other party.
When we speak, the speech is the message. When we write, the writing is the message.
When gesture, the movements of our arms and the expression of our faces are the
message. The sender must also keep in mind the party to whom the message is intended
to be conveyed, and also the channel to be used.

ENCODING

The person who sends message initiates the process of communication. The
sender must prepare the message of communication in such a way that the receiver
receives it with the same spirit and the same meaning as intended by the sender. The
message should be drafted in such a way that it achieves the result desired by the sender.

CHANNEL

It means the way by which the message is communicated. It includes printed

words, electronic mail, or sounds. The choice of medium depends upon the relationship
between the sender and the receiver. We normally choose oral or written communication.

DECODING

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The act of understanding the message is known as decoding. The process of

translating a message into ideas is called decoding, and the receiver does this. Thus,
listener and readers are often regarded as decoding.

FEEDBACK

It is the response by the receiver of the communication. He may accept or reject

the message, but he must not change its meaning. Thus, it is an action or reaction on the
part of the receiver in response to the message received by him from the sender. Sender
needs feedback in order to determine the success or failure of the communication.

METHODS OF INTERPERSONAL COMMUNICATION

NON-VERBAL COMMUNICATION

 Body Language
 Verbal Intonation

Body Language

Gestures, facial configuration, and other movements of the body that convey
meaning. A person frowning “says” something different from one who’s smiling. Hand
motions, facial expression, and other gestures can communicate emotions or
temperaments such as aggression, fear, shyness, joy, and anger. Knowing the meaning
behind someone’s body moves and learning how to put forth your best body language can
help you personally and professionally. This type of communication is common in PEL
(PVT) Ltd.

Verbal Intonation

An emphasis given to the words of phrases that conveys meaning. A soft, smooth
vocal tone conveys interest and creates a different meaning from one that is abrasive and
put a strong emphasis on saving the last word. Most of us would view the first intonation
as coming from someone sincerely interested in clarifying the student’s concern, whereas
the second suggests that the person is defensive or aggressive
.
ORGANIZATIONAL COMMUNICATION

Organizational communication means communication common in organizational

settings. In PEL (PVT) Ltd following type of communication takes place.

1. HORIZONTAL COMMUNICATION

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This type of communication is used in PEL (PVT) Ltd. This is horizontal form. In
this horizontal form of communication, message flows from one department to another
department like Mechanical Department communicates with the Electrical Department
for the purpose of sharing of information.

2. VERTICAL COMMUNICATION

It is a sort of communication takes place from top to bottom within the

organization. Let suppose Manager of Marketing Dept. communicates with Associate
Manager and Associate Manager Communicates the matter with Assistant Manager and
he communicates with lower level manager and so on.

V e
rtical

Communication Diagram at PEL (PVT) Ltd

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The upward communication flows from downward to upward, from managers at

lower level to managers at higher level. Senior managers rely on them for information.
Reports on daily basis are given to top level managers of the particular department to
inform them of progress towards organizational goals and also about any problem if
exists. It keeps management aware of how employees feel about their jobs, their co-
workers, and the organization in general.

3. DIAGONAL COMMUNICATION

In this communication the member of one department can also convey his
message to another department officer.

BARRIERS TO EFFECTIVE COMMUNICATION

There are some barriers to effective communication, which are given below along
with the ways to overcome those barriers.

 Filtering
 Emotions
 Information Overload
 Language

Filtering

The manipulation of information to make it appear more favorable to the receiver.

How To Overcome

 E-mail to communicate organizations reduces filtering.

 Organizational culture encourages or discourages filtering by the type of behavior.

Emotions

How a receiver fells when a message is received influences how he or she

interprets it. You’ll often interpret the same message differently, depending on whether
you’re happy or upset. Extreme emotions are most likely to hinder effective
communication. In such instance, we often disregard our rational and objective thinking
processes and substitute emotional judgment.

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How to Overcome

Managers at PEL (PVT) Ltd have overcome it by following steps

 It’s best to avoid reacting to a message when you’re upset because you’re not
likely to be thinking clearly.

Information Overload

The information we have to work with exceeds our processing capacity. Some
managers at PEL (PVT) Ltd faces huge stress of work load and this thing create problem
for the employees and as a result they can not communicate properly.

How To Overcome

Managers at PEL (PVT) Ltd have overcome it by following steps

 We have to minimize the overload information.

 The message should be compact and complete.

Language

Employees at PEL (PVT) Ltd are belonging to diverse cultures. Their language,
age, education and core values are different from one an other. This thing some tomes
create language barriers between employees at PEL (PVT) Ltd.

How To Overcome

Managers at PEL (PVT) Ltd have overcome it by following steps

 Use simple language

 Message should be uniform

 Effective communication is achieved when the message is both received and

understood.
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HUMAN
RESOURSES
MANAGEMENT
AT
PEL

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Organizational behavior studies the human behavior and helps the managers to
understand the human’s behavior in different situations. Therefore we can say that
organizational behavior has the strong link with the “Human Resource Management”.
Therefore we often discuss “O.B” under the umbrella of “Human Resource
Management”. From now on word, we will discuss O.B” as Human Resource
Management

HUMAN RESOURCE POLICIES and PRACTICIES at PEL, PAKISTAN

As a Chinese proverb suggests,

“If you wish to grow something for a season, grow mangoes. If you wish to
grow something for a year grows rice. But, if you wish to grow something for a
life time grow man power.”

Human Resource Management is the future of organizations all over the world.
Without a developed HR system, no country can compete in the global arena, and a
country like Pakistan is no different, it needs Human Resource Management for its future
growth. Today, therefore in truly world-class corporations the HRM function has
assumed a greater significance and plays a comprehensive role in organizational
management. In the 1980’s and early 1990’s the term HRM came into academic horizons
and gradually used by the practitioners and researchers worldwide. The last two decades
have seen a marked change in HRM particularly in those activities, which involve
acquiring, developing motivating and utilizing human resources actively in the business.

HRM is quite often defined as productivity through people. It is considered a

scientific process of continuously enabling the employees of an organization both in their
individual capacities and as members of groups, both as managers or other ranks, to
improve their competence and capability to perform their present as well as future
expected roles so that the roles of the organization are achieved more fully and at the
same time the needs of the employees are also met to an adequate extent. It is seen as
getting the employees in the organization to add value to the organizational processes and
to contribute to the organizational development. HRM is very important for future
development of a nation, and a future development of a country depends a lot on its
Human Resources.

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The major purpose of HRM is to increase and improve the productive

contribution of personnel to the organization in more ethical, social, and administratively
responsible way. This purpose emerged from commonly called industrial relations,
personnel administration, industrial psychology and personal

Management. HRM is not just another personnel management fad.

“Research shows that its aim is to create a whole organizational culture that binds
workers to the company’s objectives with full professional commitment, integration, and
quality work.”

The 21st century will bring with it enormous opportunities but also enormous
pressure, if the companies will not improve the productivity of the people and treat them
“human being’ which are the vital objects of all the economic activities leading towards
development. Now there is worldwide consensus on human resource being one of the
major means of increasing efficiency, productivity and prosperity of the firm.

Usually small businesses (for-profit or nonprofit) have to carry out these activities
themselves because they can't yet afford part- or full-time help. However, they should
always ensure that employees have -- and are aware of -- personnel policies which
conform to current regulations. These policies are often in the form of employee manuals,
which all employees have.

Note that some people distinguish a difference between HRM (a major

management activity) and HRD (Human Resource Development, a profession). Those
people might include HRM in HRD, explaining that HRD includes the broader range of
activities to develop personnel inside of organizations, including, e.g., career
development, training, organization development, etc.

The main elements we are going to discuss are

• Recruitment & Selection

• Training & Development
• Appraisal Process

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ORGANOGRAM OF HUMAN RESOURCE DEPARTMENT

Head of Dept.

PMDP R&S T&D

Asst Asst Asst Asst Asst Asst

Manager Manager Manager Manager Manager Manager
Ma==

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HUMAN RESOURCE MANAGMENT

RECRUITMENT AND SELECTION

This section examines current practices and decision-making in recruitment

and selection. They are critical elements of effective human resource management.
We cannot discuss how recruitment and selection take place without asking why
certain techniques are used in preference to others. Within the HRM paradigm,
they are not simply mechanisms for filling vacancies. Recruitment and redundancy
can be viewed as key 'push' and 'pull' levers for organizational change.

Recruitment and selection allow management to determine and gradually

modify the behavioral characteristics and competences of the workforce. The
fashion for team working, for example, has focused on people with a preference
for working with others as opposed to the individualist 'stars' preferred by
recruiters in the 1980's. Attention has switched from rigid lists of skills and
abilities to broader-based competences.

Once the organization’s human resource needs have been determine, they
necessarily have to be filled. These staffing activities include the following.

 Recruiting job candidates

 Selecting the most appropriate job applicants for the available jobs

Both procedures must be done in accordance with Equal Employment

opportunity (EEO) guidelines. Recruitment is one of the core activities of any
personnel department. Before the personnel department can proceed with the
recruitment, two further documents are necessary.
Competition for the 'best' graduates requires employers to have a clear idea of
what they mean by 'best'. Recruitment needs to send a strong, distinctive message
to these people.

 The Job specification

 A person specification

The line manager should draw these up and it may be necessary for a member
of personnel department to assist. Specifying the job and the type of person
required is a line management responsibility.

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RECRUITMENT AND SELECTION PROCESS

They start by getting the request by related department. Departments fill the
slip named Man Recognition Slip in which they mention all their requirements
about employee needed like age, when and why employee require, experienced or
fresh employee, insurance and car etc. Then Head of Department (HR) send the
slip to chairman and Managing Director. From their approval further procedure
start.

Potential candidates may come from an internal trawl of the organization,

or from the external job market. The latter are reached through channels such as
recruitment advertising, employment agencies, professional associations or word
of mouth. The approach differs according to the organization's resourcing
philosophy:

INTERNAL SOURCES

Organizations with a strong culture are likely to seek malleable new

employees at school-leaving or graduate levels. More senior jobs are filled from
the internal job market.
Their internal methods include job posting and employee referral programs.

JOB POSTING

These methods of prominently displaying current job openings extend and

open invitation to all employees in the PEL Job posting serve the following
purposes

 Provide opportunity for employee growth and development

 Provide equal opportunity for advancement to all employees
 Communicate organization goals and objectives and allow each individual
the opportunity to help find a personal fit in the organizations job structure.

PROMOTE THE EMPLOYEES WITH IN THE COMPANY

It includes the Personnel replacement charts which the company record is

showing present performance and promotion ability of inside candidates for the
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most important positions. Usually this option is for firm’s top positions. The
management creates a card for each position, showing possible replacements as
well as their present performance, promotion potential, and training

EXTERNAL SOURCES

Companies looking for the 'right' (best fit for the job) person however may
rule out internal applicants because they do not match the personnel specification
prepared for the job.

Equal opportunity demands equal access. This can only be achieved

through public and open recruitment. The likelihood of attracting 'suitable'
applicants depends on the detail and specificity of the recruitment advertisement or
literature. Key factors such as salary, job title, career and travel opportunities
obviously influence response rates. But remember that employers do not want to
be swamped with large numbers of applications from unsuitable people.

PEL does not always produce enough qualified applicants internally so it needs
external sources including bringing in people with new ideas. The external method
includes media such as newspaper.

GIVING ADVERTISEMENT IN NEWS PAPERS

The purpose of the ad is to attract those applicants who are suitable for the
job. The body of the advertisement contains a brief description of the job, a brief
description of the person required, including the essential requirements of the
person specification,

Followed by the benefits offered and any other attractive features of the job.

RECRUITMENT ON INTERNET

One of the main recommendations is incorporating a link from the

corporate home page directly to the careers section on the company's Web site.

Another Best Practices feature is to make information available to

candidates about a company's culture and work environment.

This personalized assessment for companies helps them to measure their

current performance against the standard for online recruiting and presents them

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with an opportunity to make a marked improvement in interacting with job seekers

on the careers sections of their Web sites

It is critical that all companies make the most effective use of their
corporate career Web sites, to brand their companies with potential candidates,
who may also be customers and shareholders. Benchmarking practices against
those of the Fortune 500 provides a useful measurement and perhaps motivation to
implement best online recruiting practices."

A large and fast growing proportion of employers use the Internet as a

recruiting tool. PEL recruit electronically through the Internet.
They give ad on there web side www.Pel.com
The company also give add on roozee.Com.

EMPLOYEE REFERRAL PROGRAMS

Word-of-mouth applicants are likely to stay longer and may be more

suitable than recruits obtained by advertising. But word-of-mouth is
discriminatory, since it restricts applications to established communities and
excludes recently arrived minority groups who have not had time to become part
of informal networks.

This method is a low cost per hire way of recruiting, even though the
candidates, in many cases, come from outside the organization. This methods is
useful for finding applicants in short supply and managerial candidates

SELECTION
This section looks at the early stages of the selection process - often called pre-
selection. The recruitment campaign should have attracted a pool of applicants
from which selectors can make their choice. If a job analysis has been conducted,
the criteria or competences which are deemed necessary have been identified.
These may be well defined and focused on experience and skills, as in the 'right
person' approach; or general and related to education, intellect and personality for
the 'cultural fit' and 'flexible person' models After the candidates have been
identified, they must be selected. In PEL common procedures use in selection
include

 Obtaining completed application forms or resume

 Checking education, background, experience and references
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 Taking Tests & Interviewing the candidates

 The selection procedure result in a match between a candidates ability and
the skills required by the job

TESTS

PEL test only the external employees not the internal employees, because they
have the complete data of internal candidates. Tests provide use full back-up information
and are an aid to selection but they cannot entirely replace the interviewer. It tests the
candidates only for specific positions not for all the vacancies.

INTERVIEW

PEL conduct behavioral interviews to screen out the candidates. Behavioral

interview is a series of job related questions that focus on how they reacted to
actual situations in the past.

They also conduct individuals’ multiple interviews. The HR management

conducts the interview. Also the related department conduct interview. Their main
purpose for the interviewer to ascertain if the candidate is suitable for the vacancy,
and for the candidate to determine whether the job is suitable for him or her.

PROBATION PERIOD
PURPOSE

PEL set probation policy regarding the serving of a probationary period for
staff members covered by a collective bargaining agreement who are newly hired.
Probation is for newly appointed employees only.
RESPONSIBILITY

The Head of Department Human resources is to ensure compliance with this

policy.

DURATION

Probation period in PEL is six months for Managers and three months for
executive. Probation periods may be extended, with reason, where the employer is
not convinced with employee performance to the required standard, and some time

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if employee do not achieve the desired result the company will terminate the
employee.

 Employment Letter is attached

 Confirmation Letter is attached
 Letter showing Different Allowances and Benefits is attached.

DESCRIPTION OF SOME OF THE BENEFITS

All of these benefits, allowances and salary vary proportionately from grade to grade.

SALARY STRUCTURE

Salary is based upon the market practices. They attract their employees from
market pay levels. The basic salary structure is as:
Basic salary
House rent allowance @ 45% of basic salary
Utilities @ 10% of basic salary

PROVIDENT FUND

Employee’s contribution @ 10% of basic salary after confirmation of

service. The company will also contribute an equal amount for credits to the PF
account of the employee.

GRATUITY

It is one gross salary (last drawn), for each completed year of service, which is
payable on leaving the company.

MEDICAL OUTPATIENT ALLOWANCE

It is per month allowance in addition to the gross salary. But it doesn’t form
the part of the salary for any other benefits e.g. Provident fund, bonus.

LEAVE FARE ASSISTANCE

ANNUAL BONUS
Bonus on salary is provided annually to the employees.

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TRAINING & DEVELOPMENT

At the organizational level, enterprises need people with appropriate skills,

abilities and experience. These qualities can be bought from outside the
organization through recruitment, consultancy and subcontracting, or grown by
training and developing existing employees. This section focuses on the second
approach

The process of teaching new employees the basic skills they need to
perform their jobs is training. Training might thus means showing a mechanist
how to operate his new machine, a new sale person how to sell his firm’s product
or a new supervisor how to interview and appraise employees.

Training at PEL

Training in PEL. is basically of two types.

 Training to new employees

 Training to existing employees
External training
Internal training

TRAINING TO NEW EMPLOYEES

PEL basically has a general induction-training plan for newly employed

people

INDUCTION TRAIING

Induction training is regarded as an important of the overall training policy

applying to all personnel joining the Company. Department training over an initial period
of one to six months shall follow this.

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3 DAYS ORIENTATION PROGRAM

THE CONTENTS
• They basically have three days Orientation program for new employees in
which they describe to employees with basic background information about
the firm such as:
• Welcome note from management director
• Mission, Vision, Values
• Brief introduction of PEL
• Company profile
• Organization
• Product profile
• General guidelines
o The working hours
o Head office
o Plant
o Canteen mess
o Bank account details
o Fair price shops
o Traveling
o Department visit
o Meeting with HOD
o Colleague
And other miscellaneous things

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GENERAL GUIDELINES

WORKING HOURS

HEAD OFFICE

08:30 TO 04:30 from Monday to Saturday. They (essential) staff of HR, GS

and sales will be on duty for day-to-day matters. Lunch and prayer is 13:00 to
14:00 hours. Attendance currently is to be marked on the attendance sheet
maintained by GSD and placed on reception.

PLANT

Operations at plant rotate clockwise in three shifts. Timings for morning

shift are 08:30 to 04:30 from Monday to Saturday.

CANTEEN MESS

Facility is available at head office as well as at Factory. At head office

expenses are deducted from the salary. At plant expenses are paid directly as well
as deducted from the salary. Employees can check their category from the relevant
accounts section.

BANK ACCOUNT DETAILS

Salary is paid through bank to all the company permanent employees as

well as contractual staff. HR & Finance departments, regarding opening of account
in the designated bank nearest to your residence/ place of appointment is available
for coordination.

FAIR PRICE SHOPS

Company has provided fair price facility to all its employees where
company products are available at subsidized prices. Different quantities are
allowed to different category of staff on monthly basis. The shops are located at
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head office, plant, Jhang and Arifwala zones. Timing may vary from season to
season or otherwise.

TRAVELLING

Company allows all its employees the travel facility according to his or her
category subject to approval from respective HOD for its business development.
See the relevant portion of HR policy pertaining to this section.

WHO SUPERVISES THE TRAINING PROGRAM

Internal management supervise orientation program. This job has been

given to their Manager Training and Development who made the panel of people
to supervise orientation according to the nature of job.

PROCEDURE OF ORIENTATION

According to Managers the new employee has been rotated almost in every
department in his orientation so he is able to practically see the things happening
in the organization. It helps reduce the new employees jitters and the Reality shock
he or he/ she might otherwise experience (the discrepancy between what the new
employee expected form his or her new job, and the realities of it).

DEPARTMENTAL TRAINING

After induction training the employee has been shifted to the department he
was employed for, to go through departmental training and the training of other
relevant departments whom he has to interact in his day-to-day activities. This
basically is the start of his probation period.

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ON THE JOB TRAINING

PEL always prefer to give On the job training to the new employees
because they think that on the job training is the best way to make employees
learn the skills required to perform different tasks

TRAINING OF EXISTING EMPLOYEES

ANALYSIS OF ORGANIZATIONAL TRAINING NEEDS

INTRODUCTION

Analysis of organizational training needs (AOTN) is a process of taking an

over view of the performance of the organization. Its purpose is to identify where
training can make major contribution to improve organizational performance. It
sets out the answer of the following questions about the way the organization is
functioning now and is expecting to function in future:
• What?
• When?
• Where?
• Why?
• Who?
• How?

In asking and answering these questions the process will allow issues and
problems, which the organizations currently face to be identified. Important issues
need a planned response and the cases of problem need to be established and
possible solution identified. Training is one possible response and should be
selected only when it is most appropriate. AOTN also allows potential further
problems to be identified and appropriate action to be taken before a problem
develops.

The process of conducting an AOTN will allow decision to be made, on the

basis of evidence, about where training will offer the best investment.

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It will strengthen for funding training and allow priorities between training
need to be established. It will also provide information upon which to judge
whether resources currently employed in training to be used more effectively.
AOTN requires the collection, interpretations and analysis of information from
across the to-day contact with the various activities need to be sought, compared,
interpreted and use.

Training needs eventually have to be dealt with at individual level. The

question that needs to be asked is whether this person performance is satisfactory.
If the answer is NO then come form of training may be considered. If the answer
is YES then training for the development may be worthwhile for those with
potential. This is usually the responsibility of line manager who sets the
performance required and judges whether it has been achieved.
A training gap can be set to exist if the performance deficiency is due to lack of
knowledge and skill. The limitation of this individual approach is that it can result
in demands for training fro every employee. These demands may be for training to
improve current performance or develop the potential of the individual.

IDENTIFYING THE TRAINING GAP

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PERFORAMNANCE APPRAISAL

Performance appraisal is a process for establishing shared understanding

about what is to be achieved, and an approach to managing and developing people
in a way which increases the probability that it will be achieved in the short and
long term. The purpose of performance appraisal is to improve the organization’s
performance through the enhanced performance of individuals.

The main objectives of performance appraisal are:

 To review past performance

 To asses training needs
 To help develop individuals
 To audit the skills with in an organization
 To set targets for future performance
 To identify potential for promotion

PERFORMANCE APPRAISAL IN PEL

In PEL performance appraisal is recognized as an important element of the

jobs of managers and supervisor. It provides significant help in meeting
departmental and company objective.

Given the vital role of performance appraisals, PEL needs to check

appraisal system, and the uses of such appraisal system to determine whether key
personnel decisions are affected by employee’s age, race, sex, religion, color,
national origin or handicap.

THE APPRAISAL PROCESS

The foundations of performance appraisal is provided by what the job

holder is expected to do as defined in a job description and by reference to agreed
objectives. Performance appraisal discussions are often held annually. Each
employee of PEL has annual targets, which are measured with his or her standard
targets to compensate the employee on the basis of performance. Performance
appraisal is totally based on employee’s annual work performance. They also offer
bonuses and promotions to the working employees. When employees are working
on projects, as working on new product design, there may be an appraisal after
each assignment but there still be an overall review at the end of the year. They

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also hold meetings two or three times a year, the main purpose of which is to
review and update the objectives.

WHO CARRIED OUT THE APPRAISAL PROCESS

Usually, the line managers are primarily responsible for conducting

performance appraisals. They must tell employee how they are doing and make
salary and training decisions. Personnel managers can aid line managers by
providing information on how to use the performance appraisal forms and by
making sure that the result of each appraisal becomes a part of each employee’s
records, readily available for management decisions such as determining who to
promote.

The personnel managers are responsible for ensuring that all subordinates
are appraised fairly and consistently. To fulfill this responsibility, personnel
managers persuade all divisions of the organization to use the same appraisal form.
They design the performance appraisal system for the entire organization.
In addition, in PEL the process used to evaluate performance and make assessment
is not 360 degree. In fact it’s on supervisor and mutually every employee.

PROBLEM IN PERFORMANCE APPRAISAL AT PEL

At PEL we have observed that supervisors and subordinates are often

ambivalent about participating in the performance appraisal process. Supervisors
are uncomfortable because there organizational role places them in the position of
being both judge and jury. They must make decisions that affect people carriers
and lives in a significant way. Further more supervisors are not trained to handle
the interpersonally difficult situations that are likely to be arising when feedback is
negative and supervisors would like to maintain a good relationship with the
subordinates at workplace.

Subordinates are likely to be very ambivalent about receiving negative feed

back. Some subordinates prefer and want to discuss negative aspects of there
performance, so they can improve and develop themselves for future appraisal.
While others don’t want to be criticized on there performance at all, because they
think they are performing at there level best and there is no room for improvement
in there performance.

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PEL Recommendations

1. They have raised very expensive loans so they should retire their expensive loans.
2. They should carefully study their competitors.
3. As mentioned earlier company’s liquidity position is dismal. So they need to pay
off their short term loans.
4. Their operating cost is very high so they should control their operating expenses.
5. When supervisor provide negative feedback he/she should immediately
counterbalance it with positive statement for the purpose of encouragement
in that situation.
6. There should be a continuous monitoring of performance. When
performance deviates from plans one does not have to wait for the next
periodic review to correct it. The supervisor and subordinate should discuss
the situation immediately so the corrective actions can be taken at once in
order to avoid the major disasters.
7. Whether performance appraisal discussions are held monthly, quarterly,
annually appraise should be clear about what he/she is doing right and
wrong ,and how he/she can overcome there deficiencies for the future
appraisal.
8. Performance appraisal should be conducted in a way that employee should
not perceive it as a fatigue or threat for there job but it should take it as an
opportunity to add or contribute more value in work of there organization

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