1

Dedication ........................................................................................................................................2

Acknowledgement..............................................................................................................................3

Executive summary.............................................................................................................................4

Locations ...........................................................................................................................................4

Vision Statement ................................................................................................................................5

Mission Statement..............................................................................................................................5

Company’s Profile...............................................................................................................................6

Objectives ..........................................................................................................................................7

Organization Chart ..........................................................................................................................8

HRM Portfolio ....................................................................................................................................9

Employees Portfolio:...........................................................................................................................9

Rule and regulation of employees........................................................................................................9

How Shaheen Cosmetics develop personal planning of staffing need................................................... 10

Recruitment and selection ................................................................................................................ 11

How Shaheen Cosmetics Create an Training Program ......................................................................... 12

Performance Management and Evaluation ........................................................................................ 13

Feedback or share the appraisals: .................................................................................................. 13

Compensation of employees ............................................................................................................. 14

Whistleblower Policy (Disciplinary Policy)........................................................................................... 15

Procedure: 1. Process for Raising a Concern ............................................................................... 16

Procedure: 2: How the Report of Concern will be handled............................................................ 16

Procedure: 3. Reporting and Retention of Complaints and Investigation ........................................ 16

Analysis & Suggestion: ...................................................................................................................... 17

Case Study ....................................................................................................................................... 18

2

Dedication

“ We dedicate our efforts to our parents, who pray for us every minute, our teacher, who guide us

at every step of our life and our classmates, who stand by us whenever we need them and to all

those who help and encourage us whenever we find hurdles in our life.”

3

Acknowledgement

It is one of the infinite blessings of almighty ALLAH that, He bestowed us with the potential and

ability to complete the present task and make a material contribution towards the deep oceans of

knowledge. We avail this opportunity to bow our head before ALLAH almighty in humility.

Who has given us the wisdom and perseverance for completing this report.

We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch for humanity. We

feel highly privilege for our course instructor MS. Q. MUQARAB. Who taught us Human

Resource Management and also gave a guideline to this report.

4

Executive summary

Shaheen cosmetics Company (SCC) is one of the most popular and award winning cosmetics

manufacturing company in Pakistan. Its product is nationally and internationally well know.

Their core focus of the product is to provide the customer with effective and high quality skin

care products. The company has been rewarded with the awards twice, one in 2010 by the Ex-

Prime Minister of Pakistan Mr. Yousaf R. Gillani and second time in 2012 as the brand scientist

of the year.

Locations

1) Head Office:

Street # 1, Model Town, Hayatabad, chichawatni, District Sahiwal.

Phone # 040-5483987, 040-5501279

Lahore Office:

8-A-4 (P.G.E.C.H.Society), Phase 1 Punjab Society Lahore.

Phone # 0423-5186699

Email: facefresh20@gmail.com

Facebook: \\facefreshofficial

Website: www.facefresh.com

Twitter: facefreshpk

2) Factory:

368 sunder estate factor area, riwand road, Lahore.

Street # 1, Model Town, Hayatabad, chichawatni

5

Vision Statement

“As we move towards our goals, we want to position ourselves as a leading company in

the field of cosmetics by having more technically qualified staff, top quality beauty

products. This will really mark us in one of the best among cosmetics industry”

Mission Statement “We believe that last business success is built upon ethical standards, in which growth is

a genuine sense of responsibilities to our employees, our consumers, our environment and

to the communities in which we operate.”

6

Company’s Profile

Mr. Abdul waheed start making the cream by him, in their own house. And they used to sell this

cream to their near customer in watch repairing shop or to their neighbors. The response was

good from all who have used it and asked for more. The first was a sample to see the response of

the society about it. When the response was positive, they start selling it to them. And later, Mr.

A. Waheed decided to introduce it to the near cities and villages also. He started it and went door

to door to sell their cream. He have seen the hard time and hurdles in his achievement at that

time but he didn’t stopped and never felt disappointment. By his hard work and struggles, in

2007 he finally placed a company with the name of Shaheen Cosmetics and their first brand was

“Face Fresh”. All the machinery was imported from china and the first factory is placed in

chichawatni and second which is recently placed in sunder. And now Shaheen Cosmetics is one

of the most popular national and international & award winning Brand of the year.

The company has more than 224 employees, in which more than 90 employees are located in

first chichawatni factory and more than 100 employees are in sunder factory and the rest are in

head office and Lahore office.

Their focus is to provide their customers with effective and high quality skin care products that

enhance the overall look and feel of their skin. For this, Face Fresh is proudly keeping itself up to

date with the changing customer needs and modern world quality requirements, the required

investment in Research & Development makes our products the most suitable and ultimate skin

care choice for our customers. This helps in development of their product range which is of

finest quality. Their products are manufactured from tested and clinically proven ingredients to

meet the standards of quality in order to achieve best results for our customer all across the

globe.

They believe in customer satisfaction and their valued suggestions means a lot for them. That is

the reason they invest and work with renowned dermatologists on identifying what best suits

their customer’s need.

7

Objectives Profitability:

Maintaining profitability means making sure that revenue stays ahead of the cost of doing

business. Focus on controlling costs in both production and operations while maintaining

the profits margin on products sold.

Productivity:

Employee training, equipment maintenance and new equipment purchases all go into the

company productivity. Your objective should be to provide all the resources your

employees need to remain as productive as possible.

Customer Service:

Keeping your customers happy should be your primary objective of your organization.

Good customer helps you retain clients and generate repeat revenue.

Growth:

Growth planned is based on historical data and future projects. Growth requires the

careful use of the company resources like finances and personnel.

Maintain Financing:

Even a company with good cash flow needs financing; the capital is needed to expand

their organization. And maintaining your finance means getting ready for long term

projects.

Competitive Analysis:

Competitive Analysis of your company or product is also very important that where your

company or product ranks in the market. And what steps should be taken to beat your

competitor.

8

CEO/Director

Abdul Waheed

CFO

Abdul Hafiz

HRM (HOD)

Abdual Aleem

Shafiq Ahmad Fouji Ashraf Irfan Bashir Farman Goundal

IT GM

Usman Bashir

Organization Chart

9

HRM Portfolio SCC has not very widely expanded HR structure; it consists of 05 members including the

head of department whose duty is to mold the SCC’s HRM policies in response to the organizational goals and orientation. There one HR managers who assist the team of their subordinates to perform different but core HR responsibilities. One of the HR team members

leads the team of Recruitment and Training process while the other leads the team whose duty is to conduct performance appraisals & management, compensation & procurement, Job analysis

part and entertainment availability duties. Few of the HR department members we were able to locate with respect to specific job were:

Employees Portfolio: Currently at SCC there 224 employees working at three different locations but all of them are

under the same navigation of HRM policies and department.

SR.NO Employees Location

1 More then 90 chichawatni

2 More then 100 Sunder estate

Rule and regulation of employees

Employees are aware of their designations and they work on procedures. Systematically

they work on problems and solve them through proper channel.

Full time workers are employed and they work on 10-hour basis and report to their HR

head every day

Part time workers are not generally hired directly to departments or for core work. Partly

hired employees generally belong to labor department who are hired at weekly or daily

based wage.

Newly hired employees recruitment process, they assign them 4 weeks and check their

line of work under the direct observation of HR head and associates. So orientation

period is 4-weeks,

10

There is a separate HR department where they set the employees to work on assigned

tasks and at the end of 4 weeks their report is generated and checked accordingly, then

the employees are assigned according to the results.

All are connected to each other and reports are shared with each other and on every

matter there is a board meeting and with mutual consultation, every issue is resolved.

More than 2 members of each department have the supervising responsibility, including

the HR Department who keeps a close eye on all the operations.

Yes there Job description available but not completed and detailed, SCC uses a database

for the storage of such documentation, after every year the data is refreshed.

How Shaheen Cosmetics develop personal planning of staffing need

Staff planning is a systematic process to ensure that an organization has the right number of

people with the right skills to fulfill business needs. The following list describes the various steps

that SCC is used for staff planning.

Job description.

SCC develops a job description with input from the HR manager. Job requirements.

SCC develops a useful set of job requirements with the help of HR manager and this

information can help them to determine whether qualified candidates already exist or whether they can be developed within the company before recruiting externally.

Some of the questions from there JD

What skills, knowledge, and abilities are required for the job?

What are the characteristics of the people who succeed or fail in the job?

What qualifications are needed for the job?

How does the job relate to others?

After that they assessment of current employee’s skills that help him to find qualified

internal candidates before recruiting from outside. They also make a Turnover trends that help them to predict how many people will leave

an organization.

11

Recruitment and selection

Recruitment is the process of identifying that the organization needs to employ someone up to

the point at which application forms for the post have arrived at the organization.

Selection then consists of the processes involved in choosing from applicants a suitable

candidate to fill a post.

How the Shaheen Cosmetics Company (SCC) Recruit and employees selection

In order to increase efficiency of SCC hiring the team consistency and compliance in the

recruitment and selection process t, First of all SCC use the build approach if the supervise level

position is empty and after that they use the buy approach. it is recommended the following steps

for recruitment and selection.

Step 1 • Identify Vacancy and Evaluate Need

Step 2 • Develop Position Description

Step 3 • Develop Recruitment Plan

Step 4 • Select Search Committee

Step 5 • Post Position and Implement Recruitment Plan

Step 6 • Review Applicants and Develop Short List

Step 7 • Conduct Interviews

Step 8 • Select Hire

Step 9 • Finalize Recruitment

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How Shaheen Cosmetics Create an Training Program

The most difficult part of their job was how to train them according to the working environment

of the company. It contains a time and budget which is hard bite to digest for the authority of a

company. But at the same time they also know that this is essential for the betterment of the

company. If a HR team and manager see that a new employee or an existing employee who is

not working at his potentials but after some guidance he can achieve that. So, training sessions

are introduced in the company for the betterment of the employees and ultimately for the

company.

The training is differing according to the situations in which the employee falls. In some cases

the whole team needs some training like new technology is installed in the company and training

is given to whole production team for how they handle the new machinery and how they

maximize their utilization. Short sessions of the training are mostly held in rewards. After some

time from training the supervisor access their performance is there any change or not and they

report to the HR department. The department took further steps according to the situation.

The manager says that we follow the some steps for training if we need:

First they Identify a business goal that the training supports

After that determine the tasks the workers need to perform

They develop the training activities

Then SCC HR manager determine the learning characteristics of the workers

HR manager see that are the employee goal-oriented or not

which training that is relevant

which training that is task-oriented

Make them SMART goals for employees

They always focus primarily on the learning needs of her employees,

Implement the Training

Evaluate the Training

Evaluate the employees reaction to training

Evaluate the employees actual learning

At the end the Manager Repeat Any Step When Necessary.

13

Performance Management and Evaluation

As stated in interview the HR manager of Shaheen Cosmetics stated that the appraisal system

practiced in our company is that they rank the employee from highest to lowest against

particular work assigned to them. The work assign to the employees according to their job

description. Same kind of work assigned according to their job position. The HR manager

assures the equal work on all the employees which was given by their supervisor. The work load

should be SMART. Then we evaluate according to his goal achievements in descending order

and contain all the employees in that particular job. This is a good practice performed in the

organization and they are highly satisfied with this appraisal system. In the theoretical view we

can say that it is alternation ranking method applied in the Shaheen Cosmetics.

HR manager engages in those appraisals which can be performed in the organization. It highly

depends on the nature and culture of the organization. The manager also stated that to determine

the appraisal system is the most difficult part of his job.

Further, Manager said that appraisal is done twice in a year, for having a clear view on the

completion of goals and to give feedback to the employees on their work done for the company.

It helps the company and the current employees to revise its strategies towards the desired goals.

By giving the semiannual appraisal helps the HR department to derive the analyses of employees

that who is able to continue in the company or who deserves the promotion in the future. Twice

in a year appraisal system helps him to see the recruitment trend in the future. For the new

recruitments in the company the appraisal gives him an early forecast for the number of

employees they need.

Feedback or share the appraisals:

Shaheen Cosmetics regularly share the appraisals with the employees to give them a clear view

of the situation. Sharing of the appraisal is highly appreciated by the authority and the employees

in the company. This helps the employees to gain self-satisfaction about the work they done for

the company and company is appreciating their efforts. The under-performed employees need

some motivation from HR department and their supervisors and they are eager to do these kids of

works. They do not want their employees to de-motivate and lose confidence. Company already

invested a lot on them and they want to be pay off.

In the regular practice of a company the appraisals is done by the first supervisors and they

directly report to the HR team. The Line managers check all the things which appraisal system

requires from him. At the last the HR department analyses the all appraisals done in the

company. They took feedback from the Line mangers about every particular employee. For

counter checking the appraisal results they took information from the subordinates and

employees on the same level as well.

14

Compensation of employees Here's some compensation plan to retain and motivate SCC to her employees. The Shaheen

Cosmetics pay a mix of salary and incentives. The salary compensates employees for performing the tasks and provides them with a consistent income. The incentive like commission for salespeople and a bonus for others that motivates her employees to meet and exceed their goals

and gives them the opportunity to increase their earnings.

Shaheen Cosmetics comparison the employee actual performance and stander performance after

that the see that which employee performance is near to or greater than or less then there standers on this results they reward with monetary or non-monetary benefits and incentives

They compensate with money rewards and non-money benefits that are follow as blow.

Rewards:

After having annual appraisal and sharing in the company the employees seek for the rewards.

Company is highly appreciated their efforts and give rewards according to their job and efforts.

This step is the motivation for the current employees and helps them to work harder for

company. At that time company spend a lot of money on them but they knows this is going to be

paid off early. Rewards given in the form of promotions or any bonuses given to them like

promoting a person in the upper hierarchy, cash rewards, international tours, incentives etc.

Supervisors in the company ensure the required performance of his subordinates because in the

end he is going to be answerable on the hands of Line managers. Because the purpose of the

organization to maximize its profits with all the utilization of the employees. They want to make

a healthy working environment where people love to work with happiness.

Employee’s salary and incentives

The Shaheen Cosmetics pay employees the salary portion of their compensation monthly or bi-

monthly. Pay employees the incentive portion of their compensation as soon after they meet their goals and tasks. They quarterly incentive payments to her employees because they think that the employee more motivating rather annual payments and incentive payments.

Establish SMART goals

SMART goals are: Specific, Measurable, Ambitious, Realistic and Time-bound.

For salespeople, they establishing monthly and annual revenue goals or goals for opening new accounts. For other customer contact people, establish goals for the ratio of customer compliments versus complaints, or the number of customer complaints they resolve on the first

phone call.

15

For SCC employees in accounts receivable, consider basing goals on how much outstanding revenue they collect against specific targets. For those in manufacturing, consider basing goals

on the number of products they manufacture free of defects.

While it's okay to pay a small part of the incentives based on the team's overall results, most of

the incentive should be based on individual results.

Determine what their competitors are paying

.Every few years they should determine what their competitors are paying and adjust your

compensation plan accordingly. They can do this informally by asking employees with other companies that you interview about their compensation plan,

Providing non-financial rewards to employees

Handwritten thank you note.

Public thank you.

Give them a Bouquet of flowers.

Send a birthday card to them at his/her home address.

Buy them tickets to a concert, show or other event.

Email to Everyone in the Shaheen Cosmetics

Whistleblower Policy (Disciplinary Policy)

Purpose:

Shaheen Cosmetics Company Limited is emphasizing on the strict code of conduct and wants their employees to follow up the instructions. The policy will protect the rights of every

employee, checking every unethical act and supervised the whole process:

• Illicit activity; • Activities that are not in line with Shaheen Cosmetic’s policy • Activities, which otherwise amount to serious improper conduct

16

Procedure: 1. Process for Raising a Concern

• The whistle blowing procedure is intended to be used for raising serious and sensitive

issues. • Every problem raised should be attached with the concerned department and the

concerned department head should be present.

• The problem will be analyzed in 10 working days • The Report maker is not accountable to employee but still will explain all the channels to

the employee so all is done in good faith.

Procedure: 2: How the Report of Concern will be handled

By checking the receipt of concern, the problem will be analyzed departmentally, which means if

the problem has occurred in the accounts department, the accounts head will be called up to check the issue and also verifying the report. The report will be checked on factual basis, not on the basis of speculation that’s why concerned department heads are called up to verify and

analyze the problem.

(b) There is a discipline committee as well which is attached to the HR department. Here are the members attached to it.

Chief Financial Officer

Head of HR Department

Company Secretary

The committee will assist the panel in analyzing the problem and make legal actions with the mutual consultation of board of directors as well and the guilty person will be considered as

guilty and the company takes constructive measures against the person.

Procedure: 3. Reporting and Retention of Complaints and Investigation

The HR Head will keep the records and all the receipts, prepared by his team and will act

accordingly, and it can review to the directors if asked. And a copy of report will be attached with the report of complaint person and will be kept confidential whether the person has found

guilty in any of the case or not.

17

Analysis & Suggestion:

The analysis of the overall HRM practices in a crux could be that Shaheen Cosmetics has

optimistically invested on human capital and as they are a product oriented organization. So they

really have to be keen about the appraisal and performance management of their employees who

play a core role in the production framework. A major drawback, based upon our evaluation, is

the clout supervisors hold in evaluating the employees’ performance, which can evidently lead to

negative outcome in the form of biasness, which can jeopardize an employee’s job even if he/she

has not done anything as wrong as the supervisor portrays it to be. Not only biasness, but

favoritism is also a negative aspect for Shaheen Cosmetics which, when left in the hand of

supervisors, can breed and retain unimportant employees, resulting in poor performance. Hence,

there should be some check and balances tool through which every employee can be judged with

utmost fairness.

They should use 360 Degree Feedback and perhaps, an evaluation board should also be formed,

which would immediately reduce the possibilities of biasness. Also, supervisor’s appraisal

should also be initiated using Appraisal by Subordinates technique, which would lead to

retention of competent and termination of incompetent supervisors. Moreover, another major

deficiency we analyzed is that they are not using any training sessions to further groom their

workforce.

Human Capital is the most important assets for any organization and also for Shaheen

Cosmetics. Good employees means better outcome, hence an organization can only get a good

employee if it hires one – carefully evaluating abilities and skills at the time of hiring Shaheen

Cosmetics uses alternative ranking method, in a product oriented firm the standards for jobs

against which performances could be measured, can be set static so BARS method is a better

option to opt for in our view because it could create a mesmerizing thirst among employees and a

favorable competition which would enhance their productivity as well as utilization.

Overwhelmingly, each line manager should reasonably help the HR (Appraisal office) to

supervise the employees and evaluate them so that optimistic investment should be optimized.

Arguing in regard to employee’s turnover ratio, we, as expected, were given an ambiguous

answer, hence we opine that Triplet’s current turnover ratio is high, therefore the managers along

with the supervisors should collaborate with the HR team in reducing the turnover ratio, which

can be attained by providing job security to the employees. To cop this affect the company

should use some intrinsic as well as extrinsic rewards to retain employees and maximize their

output.

18

Case Study

In our project, we have visited Shaheen Cosmetics. It was established in 2007 Lahore, Pakistan.

Their main products are face fresh and face fresh soap. While interviewing the CEO and HR

Manager of the organization, we have figured that the owners of the company are not very well

educated. Due to which there are many problems that the company employees are facing. While

interviewing the staff of the employees, we figured out that at the time of performance appraisal

many employees are neglected due to the favoritism, biasness and Recency affect. While on

other side many senior managers have left the organization in few years. They hire the most

experience and creative mind personalities from the market; it is the reason that in very limited

era they have achieved the success as compared to any other organization. For senior managers,

organization timings is very comfortable that they can come at any time in the office, but the

work should be up to date. There is no compromise on the work. The factory labor timing is from

8 A.M. to 5 P.M. but the senior managers mostly come to Head Office at evening because the

Director and owner of the company usually comes in the evening and normally the meeting was

conducted in the evening. Eventually, all the managers adopt the timing of the evening and

scheduled all their routine work according to the director. Due to which their family life gets

totally disturbed and switch to the better opportunity. The evening time is convenient as

compared to the morning because in the morning, the managers have to work according to the

labor and look into the work more closely, while in the evening the senior managers are reported

by the line managers and remain updated. The managers have to work for 4 – 5 hours in the

evening only.

Suggestions:

As per our point of view, the reason behind why many senior managers left the organization in

these few years is that the family life gets disturbed due to the timings. The balance in the life is

very important; a person should handle both the sides equally. Normally, evening is the time

which a person spends with his/her family. Money is as important as kids or family, but the time

family is not getting the complete attention of the guardian then money come as the second

priority. The organization was paying good enough as compared to the market but the family was

getting scarified for it. Which will loss at the end.

We suggest, the organization should fix their Head office time in the morning and should

consider it as a threat or problem for them in the future. The more time, the senior managers

spends with the organization, he/she becomes the asset of the company.