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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




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.





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





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





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)





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.





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


CEO

Finance &

Corporate

Service

Human

Resourc

es

Administra

tion

Corpor

ate

Terminal Project &

BD

Quality

Contr

ol

Engineer

ing

Safet&

Stora

ge

Financ

e




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





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.





• 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.





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





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.





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





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.





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:





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:





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





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





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.





• 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 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.





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:





• 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.





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.





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





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?





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





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?





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?





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?





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

_____________________________________________________________

_____________________________________________________________





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: ___________________________________________________





__________________________________________________________

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__________________________________

Evtl Hrm Report

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