AGHA STEEL INDUSTERIES

HUMAN RESOURCES MANAGEMENT PROJECT REPORT

COMPILED BY:
HINAA MARYAM
NAUFIL SIDDIQUE
ZOHAIB ALI
UROOSA
BABER ALI
TABLE OF CONTENTS:

SEC. CHAPTER PAGE NO.

NO.
1. EXECUTIVE SUMMARY 1
1.1. APPOINTMENT MINUTES 1
1.2. BUSINESS CARD 1
2. INTRODUCTION 2
3. ASI HRM INFRASTRUCTURE 3
3.1. TALENT ACQUISITION 3
3.2. RECRUITMENT & SELECTION 4
3.3. TRAINING & DEVELOPMENT 5
3.4. PERFORMANCE MANAGEMENT & APPRAISAL 6
3.5. SALARY & WAGES 7
3.6 BENEFITS & SERVICES 7
3.7 RETIREMENT 8
4. RECOMMENDATIONS 9
5. APPENDIX 10
1. EXECUTIVE SUMMARY
Being a relatively young company, the HRM policies at Agha Steel Industries are following an
expansion strategy and more focused at an ongoing acquisition and retention policy to retain
and develop the best talent available.
The flowchart of the basic human resource management infrastructure has been laid out
sequentially by Mr Fahad Sehgel.
The following sections cover the HRM practices in concise and comprehensive words.

1.1. APPOINTMENT MINUTES

30TH NOVEMBER 2017

8th Floor, Emerald Tower.
11AM.

The session was presided over by Mr Fahad Sehgal who supervises the Operations and Talent
Acquisition departments at Agha Steel Industries Head Office.
A total of 4 students attended the session as appointed.
Mr Fahad Sehgal presented a detailed description of the human resource policies and
management for the staff and labor.
The session lasted around 45minutes.

1.2. BUSINESS CARD

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2. INTRODUCTION

Agha Steel Industries is currently the leading steel mill located in the vicinity of Port Qasim
with its head office located at II Talwar, Emerald Towers, Karachi.
The brainchild of Hussain Agha, who holds a formal education from Bentley University, Agha
Steel mills aims to achieve quality and standard without completion rather performance and
persistence.
It is the only manufacturer in Pakistan making quality steel by using the latest electric arc
furnace technology, enabling ASI to attain the highest quality standards available in the
market.
A relatively 6 year old company with an operational history of 5 years, it has expanded to
cover contracts for major other construction corporations such as Emaar, DHA City, Bahria
Town, NLC and many Chinese construction contracts as well.
Due to being the first earth quake resistant rebar manufacturer, Agha Steel has seen success
across important construction jobs and is a vital supplier to CPEC constructive contracts.
The products that Agha Steel manufacturers is different from ordinary bars in its method of
manufacturing and consequently in its combination of properties. As part of the chemistry, any
rebar necessarily contains two harmful impurities, Sulphur (S) and Phosphorus (P) in varying
levels, which reduce the strength of steel in extreme hot and cold conditions. Therefore, the
lower these values the better, which has been achieved by manufacturing billets though the
exclusive Electric Arc Furnace technology route.
This aspiring manufacturing company can secure much success with the rising securing of major
construction mega projects and has done so for the time being.

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3. ASI HRM INFRACTURE

3.1. TALENT ACQUISITION

Agha Steel has some innovative ways to acquire and recruit new talents from renowned
educational institutes and from the corporate world.
Having signed an MOU with efficient domestic universities, job fairs are often conducted to
recruit fresh personnel.
The universities are stated as:
 NED
 DOW
 Hamdard University

JOB ADVERTS:
Various online social media sites are available to the company to broadcast their job
requirements and openings. However, Agha Steel does not put up job details in newspapers
or other forms of print media.
Adverts are exhibited on:
 Agha Steel Industries Facebook page
 Agha Steel Industries Home page

FOR FRESH GRADUATES:

In light of the technical job requirement demanded by job openings, Agha Steel has niche
preferences. Typically fresh graduates are recruited across the following specialized
engineering fields:
 Metallurgy
 Electrical
 Mechanical

FOR SENIOR POSITIONS:

Senior positions demand greater job experience and strategy know how. For this purpose,
Agha Steel recruits through referrals, references and exclusive online business platforms. The
online platforms currently in use are:
 LinkedIn
 Facebook

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3.2. RECRUITMENT & SELECTION:

The basic concept to understand is that in an expanding company jobs are created and
acquisition begins, followed by recruiting and final selection of a job candidate.
At ASI, the cycle begins from the generation of a job requisition from the end user. The end
user is the department or the manufacturing sector’s line manager who identifies the need for
a job creation and acquiring appropriate personnel for the job.
Once a need is identified, the referrals and recruiting begin.
The preferred minimum educational requirement for a job application at ASI is a post
graduate degree in engineering (for technical jobs) and business degrees (for senior posts).

WRITTEN INTERVIEWS:
Once candidates have applied (or have been refered to ASI for senior posts), the interviews
begin for evaluating candidate competencies. Individuals attempt
questionnaires/examinations/tests that evaluate them across the fields of:
 Language
 Literacy
 Comprehension
 Education technicalities

ORAL INTERVIEWS:
Owing to the demanding natures of jobs at ASI, through evaluation is carried out in interviews
for both potential employees and labor. Usually two forms of interview formats are followed
at ASI:
 Panel Interviews
 Mass Interviews (for labor)

Once the recruiting formalities are carried out, the list of final candidates is compiled to be
hired over a probationary period to further evaluate job execution and performance.
This will be covered in later sections.

3.2.1. ORIENTING EMPLOYEES:

The usual inductions take place before the 15th of each month. Till then the personnel or
candidates who have applied for the job positions and have cleared the interviews have to
submit all their curriculum vide details and documents for further verification.
ASI takes medical attestations from Liaqat and AKUH of all their personnel for validations of
mental and physical health.
The job confirmation is relayed via email. From there the inducted candidate can access the
ASI on board help desk for the orientation details. ASI is developing an online portal for
easier employee access and will soon set up the company’s own intranet.

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Currently the employees are oriented by:
 Tours of the work site
 Orientation video
 Briefing session

3.3. TRAINING & DEVELOPMENT:

AFTER RECRUITMENT
Training methods at ASI are different for employees and labor. The employees that have
applied for junior positions are given incentives to attend workshops at the office or out house
training conventions at prestigious hotel establishments. Training periods are carried out in the
probation period scale.

ASI employs two streams of employee training by virtue of technicality levels. Most technically
trained employees are harnessed from KSA as highly specialized professionals to help further
train fresh graduates at ASI.
For non-technical personnel, training streams focus on health and safety and HRM
management modules.

For labors the training on induction are a more beneficial variety:

 2 years Apprenticeship training program
 On The Job training (6 months)

A major concern at ASI manufacturing site is the lack of awareness in health and safety
trained personnel who are operating on site. The concept of unskilled labor is ripe in Pakistan
and causes many disadvantages in the executing of technical labor jobs.
At the manufacturing site, temperatures as high as 1200˚C - 1800˚C have to be reached in
order for the arc reaction process to operate and the demand for skilled labor is always met
with a deficit in the human capital market.

ON EMPLOYMENT
There are two forms of probation periods for the induction of office personnel:
 Junior positions: 3 months
 Senior positions: 6 months

The criteria for confirmed employment is on basis of behaviors, attendance and the portfolio
of the candidate in the probation period. After the candidate for employment or labor has
been inducted fully into service, further trainings and incentives are offered for personnel
development.

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ASI sends personnel for technical trainings to the following countries:
 Turkey
 Saudia Arabia
 Italy
 Dubai
As mentioned earlier, highly skilled personnel and supervisors are required for the operation
of revolutionary tech used at ASI manufacturing site, hence these technical trainings abroad
play a great part in execution of set goals. The training at ASI never stops and management
always seeks to keep developing their personnel for a better indigenous corporate
environment.

3.4. PERFORMANCE MANAGEMENT & APPRAISAL:

FOR EMPLOYEES:
Evaluations begin in the month of May as per company schedule with another set of mid-year
evaluations begin in December.
For performance metrics there are punch cards and attendance marking systems.
For appraisal purposes, the supervisor evaluates the subordinates and there are incentives for
job expansions and promotions.
ASI has not had a case of having fired an employee for insubordination.
For evaluation, specifically no 360˚ feedback is allowed. The primary concern being that as a
young company, it takes time for everyone in the hierarchy to scale up to standard and hence
subordinates would be too critical of demanding goals set by determined supervisors and line
managers.
Questionnaires are handed out to supervising managers to mark down and comment on the
performance of the employees assigned under them. Around 70% of the evaluation counts in
appraisal.
ASI has an 800 strong staff at the moment and minimum disciplinary issues.

FOR LABOR:
Pakistani labor is a rowdy and rough crowd hence the requirement of firm supervisors, and
sometimes supervisors are bullies hence the need for mentoring them occasionally, rest
assured.
Labor is evaluated on basis of:
 Attendance
 Job task completion
 Behaviors

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3.5. SALARIES & WAGES:
The employees and labor, one inducted into the system, are monitored for performance and
their payrolls are finalized at the end of the probation/training period.
ASI provides banking services at the office for a more hassle free environment. In most
companies, the pay slips are printed and sent to the bank by a delivery man and employees
receive their verified slips after bank clearance. At ASI the bank slips are verified and
provided back at the office for the employees for easier paycheck processing and funds are
transferred electronically.
Another benefit to the labor and employees is that the company opens bank accounts for the
personnel and registers them appropriately.
For labor the standard working hours and pay rates are followed with provisions for highly
skilled labor. There are deductions for violation of workplace rules for both employees and
labor.

Deductions can occur on basis of:

 Absenteeism (without application)
 Disciplinary Issues
 Work performance

At ASI it is ensured that the satisfaction of workforce is ensured in fairness with respect to
salaries and wages.

3.6. BENEFITS & SERVICES:

3.6.1. RECREATIONAL
ASI provides many incentives and benefits to their workforce personnel as a part of their
workplace health management policies.

FOR EMPLOYEES:
Senior employees have the opportunity to apply for Hajj and Umra packages which are
awarded via balloting. These packages are fully sponsored by ASI.
A total of 5 senior employees are awarded the packages by ballot. This offer only extends
to employees and not to families.
For junior posts, there is the offer of Umra packages which is awarded to 10 employees each
year by balloting. Again, this offer only extends till employees and not their respective
families.
However, ASI distributes food franchise coupons of premium restaurant establishments like Lal
Qila, Pizza Hut, KFC and McDonalds, to their employees as a recreational incentive.

FOR LABOR:
The labor is kept in high regard but ASI management and given recreational trips to the
DreamWorld Water resort every 3 months to help the labor feel relaxed and increase the

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motivational dedication to their job performance. In addition to the recreational trips, the
labor wages are extended by 8% - 10% production profit as well.

3.6.2. HEALTH & SAFETY:

Being a manufacturing establishment with a high occupational hazard, the manufacturing site
at Port Qasim is equipped with an in house dispensary that has achieved full operational
capacity at 24/7 and provides immediate first aid and minor surgery on cut wounds. For
extensive injuries, the victim is dispatched off to the nearest hospital and bills are covered by
ASI’s insurance policy.
For the employees, health and safety insurance is provided by Adam Jee Insurance and this
covers the employee at AKUH and Liaqat Hospital for medications and remedial surgeries up
to a defined quota depending on rank of personnel within the organization.

Additionally, personnel and especially labor at the manufacturing site are regularly checked
for being under the influence or in the possession of drugs, discovery of which can incite a
heavy fine or termination.
Also, CCTV cameras are in place all over the factory site to keep a vigilant eye on operations
and avoid mishaps. Trained guards are present throughout the premises to keep order and
maintain a secure sanctum at the work site.
After all, an aspiring manufacturer like ASI has achieved their reputation by adhering to
standardized health and safety measures.

3.7. RETIREMENT:

Agha Steel Industries is 6 years old with an operational history spanning 5 years so there are
as yet no concretely available plans for retirement policies as they are still under
development.
ASI has been pursuing an expansionary policy of recruitment and retention of adequate and
highly skilled personnel and workforce to upscale their production quotas in the recent light of
economic events in Pakistan regarding China Pakistan Economic Corridor.
With the advent of the Chinese, demands have increased many fold and ASI is one of the
many construction material contractors expanding their productions to meet these demands.

However, Mr Sehgal stated that the retirement plans will have taken shape by January 2018
and revealed that there will be an 8.4% contribution to pension of a retiring employee. He
also mentioned that there is no concept of a golden handshake offered at ASI. A golden
handshake is a stipulation in employee agreement that means an employee will receive a
certain or maybe large sum of money on retirement, laying off or job termination.
Conventionally, a golden handshake is provided to top executives and senior positioners who
have been highly integral to the company.

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4. RECOMMENDATIONS

On a brief conclusive note, ASI has implemented effective strategy into its workplace frame
work, however, keeping in mind that it is a recent entrant in the manufacturing market, there
are a few recommended alterations that would do good if adopted.

 Develop efficient retirement plans.

 Extend to 360˚ feedback interviews.
 Increase management personnel
 Expand reach of job fairs to a range of aspiring universities
 Extend a percentage of services and benefits to the families of the respective
employees.

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4. APPENDIX