COURSE PROJECT REPORT

Human Resource Management(Fall 2015)

Submitted to: Sir Mir Akber Ali Khan

Submitted by:

Faizan Ahmed Khan (58015)

Zohaib Ahmed (57388)

Farheen Naeem (58155)

Hunza Amin

Saquib Arshad

Table of Content

Acknowledgement

Objective of the Study

Company Profile//Introduction

Mission, Vision and Core Values 

Organizational Structure

Human Resource/Other Department’s Structure

Problems being faced by the HR in company.

HRM Course Concept

Data Analysis

Obstacles & Challenges

Recommendations 

Conclusion

Reference

Acknowledgement:

We are grateful to Sir Mir Akbar Ali Khan whose guidance and help has been extremely

beneficial in the preparation and completion of this project. We are also thankful of Mr. Ahmar

Waheed who is Head of HR Department at ATLAS BATTERY LIMITED He has been the

source of inspiration, valuable information and suggestion during the course of preparation of

this project report. Special thanks to all the respondents who helped us in collection of data

required for the study.

Objective of the Study:

To observed the problems or issues facing by the Atlas Battery Limited in HR and in

overall organization.

Evaluate HR problems and their solutions in the context of the organization’s strategic

objectives.

Know how an HR problem can be solved most efficiently and effectively using various

approaches to HR planning, recruitment and related HR actions.

To give positive recommendations for the solution of the challenges employees are facing

in Atlas battery limited.

COMPANY PROFILE

Introduction:Atlas Battery Limited pioneered the manufacture of dry charged Hard Rubber batteries in

Pakistan. Now the company manufactures a complete range of Polypropylene and hard rubber

batteries which caters to the needs of passenger cars of varied capacities, trucks, tractors, heavy

vehicles, construction and road building equipment, as well as host of stationary and industrial

applications. Motorcycle batteries have also been added to this range. The company has always

been at the vanguard of development in the automotive industry in Pakistan making great strides

in the field’s research and development. The AGS brand has, over the years, earned a

solid reputation as a product of latest Japanese technology with consistently high levels of

performance and reliability.

The sustained and continued high level of quality is ensured by ABL’s Quality Department with

its exacting standards and state-of-the-art lab facilities manned by highly trained professionals

monitoring the quality of batteries being produced.

The focal point of the company’s philosophy is customer satisfaction through continued product

excellence. Atlas Battery Limited aims at maintaining its lead in technology with the help of its

in-house research and development program, interfacing with Japan Storage Battery Company

Limited.

ABL’s technological superiority is matched by its vast national network of over

600 dealers and retail outlets ensuring availability and prompt delivery of its products. All our

regional and zonal offices are equipped with state-of-the-art testing equipment and staffed with

trained technical personnel to provide an efficient service backup. The technical personnel also

regularly tour their sales and territories monitoring service needs, problem and trouble-shooting.

Our associates are ably supported by a steady supply of instruments and equipment imported and

supplied by us, to enable them to carry out testing and repairing services with prompt attention

and efficient resolution of operational complaints.

Mission Statements

To achieve market leadership through technological edge, distinguished by quality service and customers’ satisfaction, emphasis on employees’ long term welfare and ensure adequate return to shareholders. Be a good corporate citizen of the society and country through harmonized endeavor.

Purpose :

Narrated explicitly in the mission:

Atlas Battery Limited. To achieve market leadership in order to ensure adequate return to

shareholders.

Core Values

Atlas Battery Limited

(1) Obtain technological edge over the competitors.

(2) Provide high quality customer service.

(3) Employees’ long-term welfare.

(4) Being a good corporate citizen.

ORGANIZATION STRUCTURE

Type of Structure:

Company follows a vertical functional form of Organization (Differentiation) with 4 to 6 levels

of management depending on the department, making it tall organization.

Organization

Line Departments:

The organization/composition of the line departments is quite diverse and elaborate since the

mainstay of the business depends on them. For instance, the marketing department has 3 levels

of management, wherein the Marketing and Brand Executives each report to the Brand Manager;

3 Regional Managers report to 1 Zonal Manager (South) and as many as 9 Regional Managers

reporting to the Zonal Manager (North). The Brand Manager, both the Zonal Managers along

with the Manager OEM Sales report to the GM Marketing, who is accountable to the Managing

Director. The Plant Department is as diverse as the Marketing Department. The Finance

Department and the Quality Assurance & Technical Services Department, however, are

relatively small, compact and not so diverse given their focused tasks.

Staff Departments:

In contrast, the staff departments are not as diverse. For instance, only 2 level 3 managers,

(Manager Admin & Manager HR) report to the Head of the Department.

Delegation:

Delegation is exercised at the upper 3 levels of management, leading to centralization at the

lower/frontline levels. This gives the company the opportunity to not only fill its vacant

managerial slots with internal recruitment/selection, but also ensures efficient customer service

in accordance with the stated mission.

Span of Control:

In the line departments, the span of control is broad down to the mid-level management.

Whereas in the staff departments; the span generally remains uniformly broad from the 3 rdlevel

downwards, where it is relatively narrow leading to greater delegation.

On the average, 15 – 17 people report to the mid-level managers, of whom

2 – 4 report to the level 3 managers.

Seven level 3 managers report to the Managing Director (level 2) who is

directly accountable to the CEO (level 1), giving the organization a broad

span at the corporate level. This breadth is shadowed downwards in the

company.

Integration/Coordination:

Coordination among the various departments is carried out at the department heads level under

the Managing Director.

Within the departments, the various sections coordinate their efforts under

the respective General Managers. Since it is a classic form of functional

organization, the coordination arrangements are observed to be adequate

and in accordance with the company’s mission of providing quality

service and customer satisfaction.

VacantA.M. Admin/ I.R.

Grade: 11

VacantAM HR

Grade:11

Ayaz KhanManager Admin. & IR

Grade:9

Ahmar WaheedHead of HRGrade: PG 8

VacantHR Exec.Grade:13

Aliza NaseemF. Desk Off.Grade:16

Ms. Hijab SaleemAMHR

Recruit & TrainingGr: 11

FarmanAdmin & IR Exec

Grade: 13

Aslam BaigSec & Svs Exec

Grade:13 Age:55

4 Sec. Offs.Main GateGrade:15

2 Jr. Sec. OffSIL W. HouseGrade:16 & 17

Only in Gen, Shift

Jawaid FarooqWajidAzizullah

Resham MehdiBashirUmer

Proposed Organisation Chart HR Division 2013-14

AfreenF. Desk Off.Grade:PG16

Shahid AliTIme Officer

Grade: 15

IftikharH FridiA.M. Sec. & Safety

Grade: 12

4 Jr. Sec. SupGrade:W-2Abid

House KeeperGrade: 17

DHA Of f ice

VacantManager HRGrade:PG10

Nawaid Habib A.M Comp & Ben

Grade: PG12

AyazullahShahid

Promotion Vacant Contract Transfer

Problems being faced by Atlas Battery:

Atlas Battery Ltd. is mainly facing the problem of Absenteeism and Employee turnover. In the

production plant of Atlas battery Ltd located in the SITE spread over a huge area neighboring the

troubled Liyari by just about a kilometer. And the details of problems are as follows:

Out of the 1500 workers other than the management, the company is bearing an average

annual turnover of 30% (skilled and semi-skilled including Supervisors and Foremen)

from the previous 3 years.

The average of 4 absences a month out of 26 by more than 500 workers is also the

problem of the organization which affects the productivity.

The fluctuation in production is of 130,000 – 180,000 batteries per month. And the

average of 3,600 claims admitted each month on account of defective batteries. And it is

difficult to arrive at a standard volume of production in terms of number of units

produced.

With an average of over 30 semi-skilled and skilled laborers continuing to quit each

month and another 500 is being only intermittently present and due to it the production is

not up to the demand complaining by the marketing department.

Fluctuating production and claims of defective batteries is only adding fuel to the fire on

the financial statement of the company is the problem being facing by the finance

department.

As reviewing the compensation plans of the workers is being paid only the minimum

wage as required by the law, along with the time related increments. It causes the

problem of quitting by the workers.

The company also provide free of cost medical treatment for illnesses attributable to the

working environment. Owing to a large number of furnaces and machinery, accidents are

alarmingly common and would occur once a month on the average.

In addition, the company has a reasonably good terminal benefits program including

provident fund, education grants for wards of retirees and preferred employment

opportunities for them but it has failed to keep turnover in check.

The demographic composition is dominated by the majority of locals and they have a

worker union however, is predominantly local and playing a key role in forming the

company culture.

Due to the security situation in Karachi, and the far flung location of the plant, the absent

workers would always have one or the other excuse for not showing up for work. The

excuses would vary from a local strike in the area of residence to non-availability of

public transport. However, the same worker would willingly work overtime in order to

earn extra money. Any gradually punitive/corrective measures instituted by the company,

particularly monetary ones would be strongly resisted by the union.

The Absenteeism and turnover is high due to the tough working conditions and low

motivation. And the local workers are not as hardy and punctual as the workers from up-

country. Being a majority, they also dominated the union and have a dominating effect on

the company culture.

In the interest of growth and increased production, the company had acquired additional

equipment and machinery which was installed by shifting/readjusting the existing ones in

the various shops. This had resulted in overcrowding and generating even more heat

inside the shops, making it even tougher for the workers.

HRM Course Concept:

As we get to know the problems being faced by the Atlas battery is high Absenteeism and

employee turnover, so in order to apply human resource management and to resolve the

problems, HRM concepts must be applied are the Compensation management to settle down

the problems of the company are

1. Paint Allowances

2. Reward Management

3. Employee welfare

4. Motivation

Data Analysis:

By analysis of gathered data, we find that the company we’ve chosen for the analysis is having a

problem of high absenteeism and employee turnover which statistics we have gathered from the

company are as follows,

Turnover

Total Employees. 1500

Current Annual Turnover Rate 30%

Number of Employees = 1500 * 30%

= 1500 * .3 = 450 employees

Absenteeism

Current Absenteeism. 4 out of 26 days

= 4 / 26 * 100

= 15.3%

After the completion of probation period, the employee is insured by EFU. In case of any accident, he/she will be compensated. The company is providing social security to its employees in accordance with the following laws:

SESSI-Sindh Employees Social Security institution: works for providing social security to employees under Social Security Ordinance, 1967.

EOBI-Employee Old-Age Benefit Institution: Provide compulsory social insurance, under EOB Act, 1976.

Every employee is receiving a basic salary of twelve thousand as per law. In addition to this, each year employee's performance evaluation is being carried out. After that increments are added in his /her salary. Special increments are also provided on achievements and performance.

Obstacles and Challenges:

We have gathered the confidential data of the Atlas Battery Limited due to one of our group

member have family terms with the company’s HR head. But he would not allowed us to use the

name of the Atlas Battery limited in our report and suggest us to change the name of the

company to present it with such statistics, because of the copy right concerned. And it would be

a long headache process to grant permission from the company.

The most important challenge in working on the HR issues of the Atlas Battery Limited is we

would not present a poster with the name of Atlas Battery Limited in our poster Exhibition, so

we would get permission with the teacher and change the name of the company with any name

based on the Assumptions suggests by the group members after the guidance from the teacher.

Recommendation:

In terms of group discussion and communication we have recommended some solutions in terms

of HRM concepts to overcome on the solution of minimizing the Absenteeism and Employee

turnover of the Atlas battery Ltd. Following are the group observations which are as follows,

We suggests to gradually switch from hiring workers as regular employees to outsourcing

the labor force, while retaining a small number of key employees as a nucleus staff. This

nucleus staff would also form a union, thereby satisfying the legal requirement of the

collective bargaining agent.

As per the law, the maximum duration for a contract worker is 180 days; the worker

himself would be saved from the harmful effects of long term exposure to hazardous

materials such as lead. In the longer run, it would not only benefit the workers’ health but

would also save the expenditure on medical treatment necessitated by prolonged

exposure to hazardous materials.

To address the problem of unionism in the plant, we also recommend gradually changing

the demographic layout of the workforce and hiring more employees from upcoming

country instead of locals’ workforce.

In order to look after the long term interests of the workers, the labor contractor be made

to ensure that his labor is duly registered with EOBI and SESI.

On the compensation system, we suggest that the minimum pay for each grade be

enhanced to Rs 1,000 + the minimum wage lay down by law (Rs 12,000). In addition, a

monthly Regular Attendance Allowance of Rs 1000 for all workers whose attendance

remained 100%. (This additional expenditure, we suggests, could be met from the

savings accrued by discontinuation of the terminal benefits of workers).

A cafeteria is being existed within the plant premises, since the plant operates 24/7 in

such difficult conditions, the workers are provided with free meals from the cafeteria, as

per a standardized menu. All the workers as well as the management are served the same

food. Medical treatment for illnesses caused by the work environment and work related

accidents should continue to be provided free of cost to all workers.

We also suggest reducing the manual portions of the manufacturing processes to the

minimum and to substitute them with automation. It would not only reduce the

requirement of manpower but would also ensure effective quality control and standardize

the timings of the various processes. In order to do that, an expansion of the plant

premises could be effected by acquiring two adjacent vacant plots and the cramped up

space inside the existing shops could be freed up.

Conclusion:

In any organization where thousands of employees are working have unique problems,

because every employee is individually unique, their thoughts, behavior, attributes are

different, wherever a numbers of employees working there is a problems facing by them, and

to resolve those problems, HR concepts should be applied to medicate the problems, facing

by any organization, so in order to apply a HRM solution, HRM concepts must be tailored in

accordance with the environment to attain uniformity and commonality at the lowest level.

Possible variations from the standards thus set should be implemented, on a case to case

basis.

Reference:

We have consulted to gather information are as following.

Mr. Ahmar Waheed head of HR department Atlas Battery Limited.