IcI

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Human Resource Management

Akzo Noble IcI Paints Pakistan

A k z o N o b l e I c I P a i n t s P a k i s t a n P a g e | 2

Overview Of The Organization:

ICI has consistently developed new and innovative areas of business since its formation in December

1926, by the merger of four of the largest chemical companies in the UK. ICI today is a collection of

world-class businesses, many of them leaders in their sectors. They are strongly led, technologically

sophisticated with healthy and sustainable long-term growth prospects.

ICI Pakistan Limited was set up as a public limited company in Pakistan in 1952. ICI’s presence in this

part of the world, however, predates the formation of the public limited company and indeed, Pakistan

itself. The Khewra Soda Ash Company, a predecessor of ICI Pakistan Limited, set up a soda ash

manufacturing facility in Khewra in 1944 with a capacity of 18,000 tons per annum. This facility was

sited next to the salt range as rock salt and limestone; two key raw materials for manufacturing soda ash

were available here in abundance.

The turnover of ICI Pakistan Limited in 2007 was Rs 25.97 billion and the profit before tax crossed Rs.

2.77 Billion. It is one of the largest quoted companies on the Karachi, Lahore and Islamabad Stock

Exchanges with a paid up share capital of Rs 1.39 billion. The company has around 1300 permanent

employees.

ICI Pakistan now operates as an independent business unit within Akzo Nobel and as a part of its

specialty chemicals portfolio.

ICI Pakistan has, and continues to develop, a portfolio of businesses that are major players within their

respective industries, bringing together outstanding knowledge of customer needs with leading edge

technology platforms to provide superior products to its customers. Through these attributes, it aims to

create superior value for ICI customers and shareholders, without compromising its commitment to

safety, health, environment and the communities in which it operates.


History Of Akzo Nobel IcI Pakistan

Akzo Nobel is the largest global paints and Coatings Company and a major producer of specialty

chemicals. It is a Fortune 500 company, and is listed on the Euro next Amsterdam stock exchange as well

as being included on the FTSE4Good Index, and is also Chemicals Industry leader on the Dow Jones

Sustainability Indexes.

On 2nd January 2008 Akzo Nobel made an offer for the acquisition of ICI Plc. Akzo Nobel is a Fortune

Global 500, reputedly the Chemicals industry leader on the Dow Jones Sustainability Indexes and is

included on the FTSE4Good Index. It is a British company, with subsidiaries all over the globe. It was

formed in 1926 from the union of four British companies, Brunner Mond, Nobel Explosives, United

Alkali Company and British Dyestuffs Corporation. Over the 80 years of its life it has established its

name and has created an excellent reputation for itself and its products. However when Akzo Nobel

acquired ICI in January 2008, it became the holding company of ICI Pakistan Ltd. Akzo Nobel ICI

Pakistan limited is no longer a subsidiary but functions as an independent business unit within Akzo

Nobel

Akzo Nobel formal offer for the acquisition of ICI Plc, the parent company of ICI Omicron B.V., was

approved by the shareholders of both companies as well as regulatory authorities, and the take-over

process was completed on 2 January 2008, making Akzo Nobel the ultimate holding company of ICI

Pakistan Limited

Akzo Nobel is a dynamic, forward-looking company that strives to deliver only the best of products and

solutions to its customers and that is driven by a set of values geared toward challenging the future,

thinking with courage, and delivering tomorrow’s answers today, all to benefit the customer by

maintaining competitiveness and anticipating future needs before they arise.


Akzo Nobel IcI Pakistan Division

Akzo Nobel ICI Paints is the leading paint manufacturing company in Pakistan and it has five businesses

in Pakistan, namely:

Polyester

Soda Ash

Paints

Chemicals

Life Science

As an organization, Akzo Nobel ICI Pakistan has incorporated into its administration the same business

ethics that have made Akzo Nobel a success. As it says in their mission statement, Akzo Nobel ICI Paints

focuses on “running a high quality, profitable and growth oriented business in an exciting and safe

business environment.” Akzo Nobel ICI Paints believe in

Giving customers products and services that improve their future

In promoting and embracing new ideas and thinking perspectives

In developing and nurturing new and existing talents of their employees

In having the strength and courage to question ourselves and our existing norms

In doing all things with integrity and taking responsibilities for our actions

Akzo Nobel ICI Paints main business activity is manufacturing and distributing high quality paints to

their customers. Their vision is to “further strengthen their position as the leading paint company in

Pakistan and drive their operations to world class standards with a relentless commitment to Safety,

Security and Health coupled with Business Excellence.”


INTERNAL ANALYSIS

SWOT Analysis

After studying the ICI paints strategies, and its performance we have identified some strengths, weakness

opportunities and threats.

Strengths

1. ICI’s Positive Image

ICI has positive image and reputation in the minds of customers so far them it’s a great strength because

its helps in the sale of their products.

2. Financial Strength Of The Business

The paints business is financially very strong as mentioned by present annual report.

3. Established Nation- Wide Infra-Structure

The ICI paints business has established nation-Wide infrastructure. It has network of dealers in all over

the country, which will help in the sale of company’s products.

4. Committed and enthusiastic staff

5. Up -To -Date Technology

ICI paints have up to date technology in its production. ICI paints Pakistan claim that they offer colors to

the customers out of which customer can demand any color and then they will make that color for

customer. For that they have latest machinery in which they just give name of the color that customer

want and then machinery gave them the formula which will produce that particular color a then they will

produce that color for the customer

Weaknesses

1. No Distribution Network

The major weakness of ICI paints business is that they don’t have their own distribution network. They

just have dealers in different cities which carry their products and then retailers have to use their own

means to get paint from those dealers and then make it available for sale for the customer.


Opportunities

1. Increase Quality Awareness Among The Customers

One of the greatest opportunities for ICI paints is that now a day’s people are very much conscious about

the quality of the paints and they are aware of the fact that good quality paint is long lasting. As ICI is

producing high quality so it will increase the demand of company’s so it is a great opportunity for ICI

paint

2. Increasing Paints Markets

Another opportunity for ICI is that as now a days in Afghanistan re-construction of the country is taking

places o there will be great demand for paints and ICI paints can reap this opportunity by exporting paints

products to Afghanistan and can earn great profits

Threats

1. Decrease in construction activity

Due to decrease in the construction activity in the country the company’s sales are decreasing as

compared to previous few years

2. Increase competition from cheap paints producers

Cheap paints producers capture almost 60% of the market share of paints so it’s a great threat for ICI

paints because other companies will share the market as well


Mission Statement

“To be the partner of first choice for customers and suppliers, ensuring sustained leadership position in

the markets where we compete, delivering long-term business value through a high performance culture,

innovation, ethics and responsible care”

Values

Our values define what we are and what we aim to be. They reflect the way we should operate both

internally and externally. And they’re summed up in the line ‘Tomorrow’s Answers Today’.


Vision And Values

We believe in

Focusing on our customers’ future first

Embracing entrepreneurial thinking

Developing the talents of our people

The courage and curiosity to question

Integrity and responsibility in our actions

These values give us standards to measure ourselves by, particularly in our dealings with customers,

suppliers, our own people and the wider world. The values have real meaning for us and the way we

behave. What these values mean is explained in a great detail as follows.

Focusing On Our Customers’ Future First

We can guarantee our future only by giving our customers products and services that improve their future.

So this value comes first. It’s our priority and the reason why we exist. We’ve always met the needs of

our customers that are why we’ve grown. But now we make it very clear: it’s the basis of everything we

do.

Embracing Entrepreneurial Thinking

New thinking and new ideas are everything if we’re to compete. So we need an environment and a

mindset that encourages new ideas from individuals and teams.

“Yes”, not “Yes, but...”

Why not? Not “Why?”

We might fail occasionally, but we’ll get great ideas to market more quickly as a result. And we’ll keep

more people with truly original ideas within the company.

Developing The Talents Of Our People

Our business will grow if our people grow too. So we’re committed to professional and personal

development. We’ll do all we can to develop existing talents, nurture new skills and progress within Akzo

Nobel. Through this commitment, we’ll attract and retain people of the highest quality to develop the

business.


The Courage And Curiosity To Question

Akzo Nobel isn’t one of those companies with a set way of doing things. We dislike rigid hierarchies and

we want our people to take a broad, interested view of the world. We like them to ask questions. “Is there

a better way?” There generally is a better way, if we challenge ourselves and our customers to look at

things differently. It’s the way we improve.

Integrity And Responsibility In Our Actions

Business needs to work within a framework. Our employees have to be aware of rules and regulations

that they must comply with, in whatever part of the world they work. But integrity and responsibility go

deeper than that. They’re about doing things in the right way, as individuals and as a company.

Ethical and responsible behavior matters to our business. If we do the right things, people will know

we’re a company that can be trusted. They’ll then be more likely to work with us and invest in us which

are good for our long-term growth.

Delivering Value To Customers


Understanding our consumers’ needs has always been our key to delivering value to

them. To suit changing demands we continue to offer new products and solutions true to the foundations

of our customer focused strategy. Each of our businesses strives in their own unique way to produce value

that exceeds expectations.

Paints

Given our reputation as market leaders in innovation in the paints & coatings industry, we have to our

credit the development of the first odorless enamel range enabling our customers to enjoy their newly

painted homes without the unpleasant smell normally associated with paints. Through our newly launched

channel modernization initiative, we are in the process of enhancing the consumer experience by

modernizing retail outlets and providing value-added services

All this through our well-trained housing and color consultancy team providing new color trends and

interior design solutions at the customer’s doorstep

Soda Ash

Our Soda Ash Business continues to devise innovative ways of delivering value to our customers. An

international standard 50kg laminated pack size was developed under a new initiative for safer handling

and enhanced shelf life and all this at no extra cost to our customers.

Polyester

Our Polyester Business, in its endeavor to provide value to our customers, more efficiently, has switched

its power engines to the more eco-friendly gas, reducing our emissions. In fact we have applied for carbon

credits. This effort not only means that we reduced our carbon footprint by a significant amount, but we

have contributed to the sustainability of the environment.

Chemicals

Our Chemicals Business continues to improve its portfolio of products by including a major new supplier,

enhancing our product range in the textile & construction chemicals sector. This simply means more

choices for our ever-increasing customer base.

Life Sciences


Our Life Sciences Business ensures high service to its customers by focusing on the training and

development of its large sales team for all three segments. Significant additions to our product range

include vegetable seeds and generic pharmaceuticals, which when complemented by comprehensive

knowledge of these products available with our sales teams results in more choice

Job Description And Job Designs At IcI Paints Pakistan


Job descriptions are written statements that describe the:

Duties and responsibilities of a job

required qualifications of candidates

working conditions

supervisory responsibilities

Job descriptions are based on objective information obtained through job analysis, an understanding of

the competencies and skills required to accomplish needed tasks, and the needs of the organization to

produce work.

Job descriptions spell out the responsibilities of a specific job and also include information about working

conditions, tools, equipment used, knowledge and skills needed, and relationships with other positions.

The best job descriptions are living, breathing documents that are updated as responsibilities change. The

best job descriptions do not limit employees, but rather, cause them to stretch their experience, grow their

skills, and develop their ability to contribute within their organization.


Strategic Commodity Manager

Business Unit: Polymer Chemicals

Vacancy data Organization Job characteristics

Closing date: Group: Title:

Until further notice Specialty Chemicals Strategic Commodity Manager

Vacancy number: Country: Number of employees

needed:

20070650 China 1

Local vacancy

number:

Site: Type of Shift or Duty:

TBD (China) Day Shift

Department: Job family:

Global Business Services Purchasing

Sub Business Unit: Employment contract:

Full time

Job Description

Organizational context

The Strategic Commodity Manager leads strategic sourcing activities for one or more categories of

raw material spend, with the goal of achieving significant initial cost reductions, and longer term with

year-over-year productivity improvements in the total cost of goods and services procured while

maintaining or improving product quality and vendor service levels. The Strategic Commodity

Manager works closely with key stakeholders from multiple disciplines in internal organizations and

in corporate functions to develop effective cost reduction strategies and implementation plans. Leads

the implementation of cross functional teams and is responsible for proposing in close conference

with key stakeholders the sourcing strategy for the assigned products/package. Leads the execution of

the agreed sourcing strategies in cooperation with purchasing team members across all regions. This

position will be leading several raw materials and raw material groups for EUR 20-30 million in

annual spend. The position reports to the Regional Procurement Manager A/P.


Responsibility

Principal Accountabilities/Responsibilities The Strategic Commodity Manager’s primary responsibility is

the realization of savings, including direct savings captured through pooling BU-wide purchasing

volumes, and savings captured from other TCO cost reduction initiatives for the raw materials assigned.

The Strategic Commodity Manager has the following specific areas of responsibility: • Sourcing Develop

and maintain an up to date knowledge database; Remain current with market trends through relationships

with vendors and market experts; Executing regular market research in the region and globally in

cooperation with the regional purchasing teams to identify new suppliers; Identifying, initiating and

tracking of alternative source approvals in close conference with the business, technology and the

purchasing organization; Maintaining a working knowledge of applicable federal, state and local laws and

regulations as well as any internal policies or procedures to ensure that the behavior exhibited by the

organization is honest, ethical and professional. Proposing Sourcing Strategies Lead and participate in

cross-functional teams in the development of sourcing strategies. Forecast budgetary impact and track

actual savings and/or cost avoidance in line with overall KPI measurement; Adjusts sourcing strategies

based on supplier performance and Business Unit input. • Leading Commodity Sourcing Teams

Organizing regular team meetings with the appropriate stakeholders to review progress on the agreed

sourcing strategy; Ensure strategies are implemented and TCO reductions secured according to

implementation plans; Contract compliance will be actively monitored by the Strategic Commodity

Manager together with the regional procurement teams; Broadly communicate performance against these

performance measures and work with stakeholders to ensure savings are incorporated into annual

operating plans;

Job Requirements / Candidate Profile

Skill Requirements Professional BA required with MBA preferred; other graduate degree potentially

acceptable

Successful, multi-year track record in a purchasing organization

Experienced in taking part in /leading cross functional sourcing teams in an industrial

environment

Specific commodity experience preferred Technical


Exceptional problem-solving and analytical skills able to construct/execute multiple complex

analyses (e.g.: TCO, NPV, cost-price analyses) simultaneously

Good planning/project management skills able to develop comprehensive workable issue sets in

complex situations • Strong negotiating skills

Quick study – able to gain a fact based understanding of current supplier base, supplier

economics and major trends in relevant markets

Fluency in English required, mastering multiple languages is a distinct advantage Behavioral

Good communication and interpersonal skills Being able to bring together multiple stakeholders

from different disciplines and different geographical regions and cultures.

Passion for reducing costs exhibits high energy and the enthusiasm to establish a new approach

to sourcing

Comfortable with conflict willingness to challenge “conventional” thinking

Self starter and independent worker able to juggle priorities

Able to work in a matrix environment and aggressively take the lead on implementation of

savings opportunities that affect numerous lines of business

Lead Mechanical Engineer

Business Unit: Technology

Vacancy data Organization Job characteristics

Closing date: Group: Title:

Until further notice Others Lead Mechanical Engineer

Vacancy number: Country: Number of employees

needed:

20070605 China 1

Local vacancy number: Site: Type of Shift or Duty:

-- Shanghai Day Shift

Department: Job family:


Maintenance & Engineering

Sub Business

Unit:

Employment contract:

Full time

Job Description

Organizational Context

Akzo Nobel Technology & Engineering Our main strength is our ability to deliver a broad range of

services – all based on a combination of in-house expertise with knowledge of our customers’

business objectives and manufacturing needs. As specialists in Project & Design Management and

Process & Manufacturing Support, we have a long track record in the process industries. This means

we can deliver innovative solutions for new projects, and make sustainable improvements to

manufacturing over the full lifecycle. We are able to provide extensive expertise in Health, Safety,

Environment, Sustainable Development, and Regulatory affairs, Toxicology and Materials and

Powder Technology. We operate on all major continents with 250 employees located at branches in

the Netherlands, Sweden, USA and China. Our customers are business units of Akzo Nobel as well as

third parties.

Responsibility

Support the Project / Engineering Manager with regard to Mechanical Equipment engineering issues.

Support and coordinate with detailed engineering contractor and manufactory, ensure process intent

implemented from Basic Engineering Package into detailed engineering and manufacturing process. Shall

have a deep knowledge about rotating equipment, like compressors, pumps, etc., and special Units like

drum filing, refrigeration unit, etc. Coordinate, monitor & control all Mechanical Equipment engineering

activities towards the Detail Engineering Contractor working at the individual project. Represent the

owner's interests in the project towards the EPCM Contractor, Vendors, construction companies, etc.

Provide functional leadership and support to the Mechanical Equipment engineering team of EPCM

Contractor. Establish local know-how and market contacts in the relevant discipline and share with other /

new project teams in the region or Akzo Nobel, Netherlands. Establish and keep close contact to the

related engineering discipline at Akzo Nobel, Netherlands (good English skills required). Evaluate

Technical Bids from Supplier (Technical Bid Evaluation). Check of Vendor Drawings; perform Vendor

shop audits and visits as required. Supervise Cost and Schedule for Mechanical Part in a Project.


Job requirements / Candidate profile

Bachelor degree in Mechanical Engineering Minimum 7 to 10 years experience as a Mechanical

Engineer in petrochemical /chemical/ pharmaceutical or related industry

Good understanding of international and local codes, standards, regulations shall be very

commutative and pro-active Background in the following is preferred:

International engineering/chemical company Large chemical design institute

Implementation And Use Of HRIS

(Human Resource Information Systems)

Human Resource Information System (HRIS) merges human resource management with information

technology to not only simplify the decision making process, but also aid in complex negotiations that fall

under the human resource umbrella. The basic advantage of a Human Resource Information System

(HRIS) is to not only computerize employee records and databases but to maintain an up to date account

of the decisions that have been made or that need to be made as part of a human resource management

plan.

The four principal areas of HR that are affected by the Human Resource Information System (HRIS)

include; payroll, time and labor management, employee benefits and HR management. These four basic

HR functionalities are not only made less problematic, but they are ensured a smooth running, without

any hitch. A Human Resources Information System (HRIS) thus permits a user to see online a

chronological history of an employee from his /her position data, to personal details, payroll records, and

benefits information.


HRIS at ICI paints is a comprehensive platform that integrates all the key HR functions. It makes use of

automated software to reduce manual work time, increase efficiency and standardize procedures.

Communication regarding HR policies is relayed on a dedicated Lotus Notes e-mail system which can be

accessed by the employees through their personal logins. The HRIS stores all the main information about

recruitment, performance appraisal, employee compensation and training and development. It also

streamlines procedures such as HR demand forecasting, payroll generation as well as extraction of

performance reports. The HRIS is developed and maintained by ICI’s IT department which provides

round the clock service and assistance.

To make a human resource department more effective and efficient new technologies are now being

introduced on a regular basis so make things much simpler and more modernized. One of the latest

human resource technologies is the introduction of a Human Resources Information System (HRIS); this

integrated system is designed to help provide information used in HR decision making such as

administration, payroll, recruiting, training, and performance analysis

Recruitment And Selection Process

Human Resource Planning

The recruitment process at Akzo Nobel ICI paints consists of numerous phases starting off with labor

demand and supply forecasting, moving on to formal assessment all the way up to the final selection. Mr.

Hassan Aftab (HR Lead for Akzo Nobel Paints business), was of the view that the recruitment process

always begins with identifying the vacant positions and outlining the job descriptions. It was emphasized

that it is very important to ensure that a predetermined number of employees with the relevant skills are

available in the future. The HR department uses a comprehensive quantitative approach to forecast future

HR requirements. This is done by looking at empirical data from the past from different divisions and

relating that to the growth in those respective divisions. Also if new divisions are added, estimates are

made using data from other divisions. This gives the HR department a clear idea of how to plan the

recruitment.

Recruitment Methods and Policy


Mr. Aftab stressed the importance of HR planning since based on this assessment the HR department

decides whether to opt for external or internal recruitment. Internal recruitment usually serves to fill in

positions that are relatively higher up in the hierarchy. If there are employees present within the

organization who fulfill the criteria then there is no need for external recruitment. Otherwise external

recruitment is preferred.

External recruitment is further classified into entry level and lateral hiring. Lateral hiring is associated

with recruiting experienced professionals from the external job market to fill in the higher managerial

posts within the organization. It was interesting to observe that Mr. Aftab emphasized that Akzo Nobel

ICI discouraged lateral hiring (head hunting) and practiced it only in times of dire need when there were

no suitable personnel within the organization. We believe however that ICI should pursue a mix of

internal and external hiring. This is because employees who start from an entry level and stay up to go in

to the higher hierarchical levels may develop a single tracked thinking and bringing in people from the

outside might lend in fresh and new perspectives to situations.

Recruitment Activity

The entry level management trainee (MTO) and commercial trainee (CTO) program formed the backbone

when it came to the development of the human resources at Akzo Nobel ICI paints since they strongly

believed in internal hiring.

Mr. Aftab stressed on the fact that “the ideology at Akzo Nobel ICI paints was to develop future leaders

rather than hire successful managers externally.” This justified why the MTO and CTO program were at

the centre stage of the strategic recruitment process. Moreover he went on to reveal the fact that the

current Vice President and the General Manager of Akzo Nobel ICI paints were themselves management

trainees to begin with.

Analyzing the entry level recruitment process in detail Akzo Nobel ICI paints aims to attract fresh

graduates from leading universities such as LUMS, IBA, and LSE to name a few from across the country.

For this purpose Akzo Nobel ICI paints conducts annual road shows and publicity campaigns. The

applicants are made to sit in for a recruitment test followed by a series of group discussions and

comprehensive interviews before they are formally inducted into the company. Mr. Aftab pointed out that

the ideal candidate was one who possessed a high degree of potential, a logical mind and was capable of

working under challenging situations. Apart from this, a minimum GPA and inter personal skills were

also of significance. The new recruits are then subject to a one year probation period after which they are

confirmed as permanent employees


Performance Management And Appraisal System:

The Human Resource Department at Akzo Nobel ICI has designed a Performance and Development

Dialogue (P&D) which serves as an effective tool for carrying out performance appraisal. The P&D

follows the Management by Objectives (MBO) framework, whereby both the superior and the

subordinate after mutual consultation set objectives that are to be achieved in a given time period. At the

end of the period, performance of the employee is evaluated, hence identifying weaknesses and

deficiencies. The HR department believed that the MBO was much more effective as an appraisal system

and served to lessen resentment in the employees and making the appraisal procedure less political and

more effective.

The performance appraisal also takes into account feedback from all employees across departments

regarding the effectiveness of the appraisal system and incorporating any useful suggestions to make the

system more efficient.


COMPENSATION PRACTICES

Motivation is one of the most important factors that set apart the employees of an organization and their

overall job satisfaction and productivity. It is what drives the competitive edge, enabling an organization

to outperform its competitors owing to its highly motivated work force. Motivation includes

compensating and rewarding the employees for their performance, creating a safe and conducive

environment as well as addressing issues that lead to dissatisfaction.

Salary Structure

Akzo Nobel ICI paints in order to motivate its workers offers a wide range of incentives. The monetary

benefits include a salary structure that is a mix of pay for performance as well as dependent on the

hierarchical level. Salary increments and bonuses also act as encouraging tools to extract good

performance and high productivity. The overall salary package for a CTO (Commercial Trainee Officer)

is Rs. 45,000 and that for a MTO (Management Trainee Officer) is Rs. 60,000 both of which are slightly

above market average for the respective posts.


Fringe Benefits

ICI paints offer a comprehensive retirement pension plan which is a huge incentive for the employees.

There is also a free lifetime health insurance which covers for the whole family even after the retirement.

Moreover, the focus is to motivate workers by assigning them challenging tasks along with giving them

full independence regarding how to go about achieving their goals. Thus the management aims to provide

a working environment in which the employees feel engaged and consider themselves to be an integral

part of the organization.

The overall compensation plan is oriented to be in line with the strategic business objectives and

harboring leadership and entrepreneurial qualities within the employees. It is focused on the employees

giving them maximum incentive to bring out high levels of productivity as well as inculcate loyalty.

Training And Development At IcI Pakistan

Training Need Analysis (TNA)

Training Needs Assessment (TNA) takes cognizance of the need to develop competent, resourceful and

responsible like ICI Pakistan to steer the tasks of getting competitive advantage through skillful,

competent and state-of-the are training techniques for its employees. It seeks to strengthen the capacity

for effectiveness of public service at all levels of as an organization through the delivery of continuous,

competency-based, responsive and demand-driven training. The rationale for individual skills

enhancement can be linked with organizational, task and job competency in the TNA deliverables. At the

organizational level, capacity building requires the elaboration and establishment of enabling

management systems, structures, processes, and procedures. At the policy and institutional level, capacity

building includes making legal and regulatory changes to enable the leaders at all levels to enhance their

capacities.


This toolkit is intended as a step-by-step guide for managers, senior officers, and trainers interested in

designing, implementing and monitoring Training Needs Assessment (TNA) in organizations like ICI

Pakistan. It has been designed, keeping in view the needs of the industry in Pakistan and especially the

work environment and is based on the lessons and experiences drawn from a large variety of sectors in

different countries across the world. This toolkit encourages the user to adopt the needs assessment

process prescribed therein. The user may add additional steps or expand or modify the existing ones to

plan and conduct needs assessments that bring the greatest benefits to ICI Pakistan as a whole.

In House Vs External Training


Assess The Organization Approach To Managing People And Managing The Organization As A

Whole

Human Resource has been extremely vigilant in providing a constant resource of highly skilled

employees. It believes in continuous improvement and is taking the standards of service to the utmost

levels of excellence.

From providing the best administrative support to facilitate employees work life to creating benchmark

security solutions, we are a team of enthusiastic, energetic young people who are geared to perform the

best always! From being the best in providing benefits to our employees to the best in providing

development opportunities, we have managed to create a culture of passion for business, operational

excellence and constant renewal. HR is committed to assisting employees in exploring, developing and

maximizing their full potential, encouraging continuing education through internal and external training

and development opportunities.

Human Resource Management (HRM) deals with formal systems for the management of people within an

organization. HRM in the recent past has assumed a vital strategic role mainly due to the organization’s

attempt to transform their human resources in to a source of competitive advantage. During the course of

our interaction with Mr. Hassan Aftab, the Human Resource (HR) Manager of Akzo Nobel ICI paints

division; it was evident that the HR department was making a pivotal contribution towards the operational

success of the company in addition to strategic change leading to competitive transformation. The HR

department focuses on all aspects ranging from Recruitment, Training & Development, Performance

Appraisals, Employee Compensation and Employee Health and Safety Measures

Health and safety are also key concerns for the management at Akzo Nobel ICI paints. For this purpose

there exists an independent department called the Safety, Health, Environment and Security (SHES)

which is constantly engaged in ensuring a safe and healthy work environment as well as eliminating any

possible hazards. The Safety, Heath, Environment and Security (SHES) department is very well

established and active at Akzo Nobel ICI and utmost importance is given to the implementation of the

policies. Hassan Aftab said that for any new employee or intern there is an SHES orientation and test. All

SHES policies are clearly outlined and explained to the new recruits. The recruits then take a test which is

used to gauge their information retention with respect to the SHES orientation. Those who fail the test are

reoriented. This is a comprehensive way of orienting the recruits and minimizing costs due to any health

or safety hazards.

A person entering the factory has to wear a helmet, mask, long boots, glasses and these kits are provided

by Akzo Nobel ICI to every worker and even visitors. Other safety measures include restrictions on using


cell phones while walking, or reading anything while getting off the stairs. These measures were actually

seen in implementation which gives an impression that indeed the Akzo Nobel ICI people were concerned

about the safety of the employees. The security system was also robust and no visitor was allowed to

enter in the vicinity of Akzo Nobel ICI without being accompanied by an Akzo Nobel ICI employee.

Employee Stress

Stress is a major concern for any organization. Increased levels of stress among employees can often lead

to reduced productivity and even burnout in extreme cases. If appropriate safety nets are not provided for

employees to manage stress, and the organizational workload is too stressful it can even lead to employee

dissatisfaction and high turnover rate.

ICI realizes this and has taken steps to help employees overcome stress. They have built in a mini golf

area on their premises. Employees can take time off to enjoy themselves playing golf while they de stress.

There are also regular team-building tours which give employees a break from work and help not only to

reduce stress but also act as strengthening the mutual bonds, positive working relationships and foster

cohesion amongst the employees.

The overall motivation and satisfaction level of the workforce, from the factory workers to the managers

was high and most of them seemed to be enjoying working at Akzo Nobel ICI. In response to the various

employee and staff interviews that we conducted, it was observed that the employees at Akzo Nobel ICI

paints were highly motivated and satisfied with management policies. This was further supported by a

very nominal average annual labor turnover figure of 3 to 4 percent.

Thus the HRM at ICI is doing an excellent job for their employees ranging from the compensation and

benefits to the safety regulations for their employees in order to ensure their maximum protection. ICI

Pakistan has ensured top level working conditions for their employees allowing them to perform well as

well (due to hygiene and motivation factors) like salary raise and fringe benefits that allows the

employees at ICI to be number one in the Paint industry in Pakistan providing the company with

competitive advantage and a huge market share in the Pakistan Paint Industry.

An excellent recruitment and state of the art selection procedure by the organization has led it to maintain

its huge market share, along with continuous expansion into other products as well. The employees are

well motivated, well aware and well suited for ICI paints Pakistan which provides the company an edge

over all the other in our country.


Assess The Organization’s Overall Effectiveness

ICI’s Overall Effectiveness

ICI’s professionals can provide you quick feedback as they hire knowledgeable professionals. ICI focuses

on the quality and this is the result of experience gained in years. ICI measures its services through

continuous monitoring and data analysis that are base on certain parameters. The efficiency of the HR

team largely depends on the key performance indicators (KPI’s).

Key Performance Indicators

• Realistic growth expectations

• Drive for operational effectiveness

• Developing a culture for sustainable improvement

The Human Resource Department has established these KPI’s for them and believe that they are the best

way to track for the future progress. Accelerating profitable growth will require an increase in the rate of

new product innovation, as well as growing our businesses rapidly in the developing world. We have

therefore defined KPI’s to measure our performance. For innovation, we have set ourselves a KPI of

achieving at least 25% of Group sales from products launched within the previous 3 years. This is

illustrative of our concentration on profitable top-line growth and highlights the importance of our

Technology and Marketing functions working together, and building on our extensive knowledge of

customer and consumer needs.

As far as the second KPI is concerned, there are three major areas for improvements: operations cost

reduction, 'cost-to-serve' our different customers, cross-business approach to reorganizing the support

functions, including Applied Research, Human Resources, Finance, and IT

The third strategic objective is developing a culture of sustainable improvement; being conscious of the

needs of our stakeholders and the environment whilst also seeking to continue our economic growth.


Evidence Of Growth In ICI

2003 2004 2005 2006 2007 20080

2

4

6

8

10

12

Profit Before Taxation

The graph shows that from year 2003 to 2008 ICI’s profit before tax is increasing continuously. This is

only because of stable performance and good policy implementation. Moreover, proper recruitment of

staff and getting best form them is also on factor in improve profits.

2003 2004 2005 2006 2007 20080

5000

10000

15000

20000

25000

30000

35000

22156 21303 21504 21948

25988

31922

Turnover Ratio

Turnover Ratio


The turnover graph shows that from 2003 to 2008 there are periods when the turn over decreased but with

the passage of time it has improved and now up till 2008 it was $31,922.

2003 2004 2005 2006 2007 2008

0

500

1000

1500

2000

2500

3000

3500

10881347

1842

2479

2984

3352

Operating Profit

Operating Profit

Operating profits graph illustrates that these profits are also increasing from 2003 to 2008. The operating

profits figure in 2008 is $3,352.


Assess The Role Of Hr Practice In Contributing To Organizational Effectiveness

“The Talent Factory”

ICI Pakistan is one of the largest companies in the country. Moreover, an employer of choice With a

human capital of over 1,300 employees in their Talent Factory, they know that their employees shape

their company’s future. The talent factory team is on a mission: to unleash the organization’s intellectual

energy to propel extraordinary business growth. We value and encourage continuous improvement at all

levels - all for forming a sustainable structure that will carry us through this climate of change

The Human Resource Effectiveness can be analyzed by calculating the following ratios: staffing ratios,

employee turnover, occupational health and safety and sick leave, human resource budgets, overtime and

recruitment, and salary costs and profit ratios. There can be specific benchmark calculations like HR staff

percentage in comparison to total staff, budget per employee in HR department the percentage of HR

budget as percentage of revenue.

HR practice in ICI

ICI has diversified their products, services and shown creativity in their advertising campaigns. The

company has exercised the same level of creativity in developing their way of work. ICI has established a

unique and new way to carry out their operations with a key focus on quality, simplicity coupled with

productivity and output.

At ICI, they understand that their business will grow only if our people grow too. This is why one of their

values is all about developing human resource talent. They firmly believe all our employees have talents

that need to be developed and nurtured.

For implementing work structures that should go beyond the normal forms of reflective channels of

communication, ICI seeks their employees’ performance.

Equality is the essence of the ICI, where the CEO, VPs, Directors, Managers, Executives and Officers all

share the same workspace and there’s an open system of communication among them.


Human Resource Planning

The recruitment process at Akzo Nobel ICI paints consists of numerous phases starting off with labor

demand and supply forecasting, moving on to formal assessment all the way up to the final selection. Mr.

Hassan Aftab (HR Lead for Akzo Nobel Paints business), was of the view that the recruitment process

always begins with identifying the vacant positions and outlining the job descriptions. It was emphasized

that it is very important to ensure that a predetermined number of employees with the relevant skills are

available in the future. The HR department uses a comprehensive quantitative approach to forecast future

HR requirements. This is done by looking at empirical data from the past from different divisions and

relating that to the growth in those respective divisions. Also if new divisions are added, estimates are

made using data from other divisions. This gives the HR department a clear idea of how to plan the

recruitment.

Recruitment Methods and Policy

Mr. Aftab stressed the importance of HR planning since based on this assessment the HR department

decides whether to opt for external or internal recruitment. Internal recruitment usually serves to fill in

positions that are relatively higher up in the hierarchy. If there are employees present within the

organization who fulfill the criteria then there is no need for external recruitment. Otherwise external

recruitment is preferred.

External recruitment is further classified into entry level and lateral hiring. Lateral hiring is associated

with recruiting experienced professionals from the external job market to fill in the higher managerial

posts within the organization. It was interesting to observe that Mr. Aftab emphasized that Akzo Nobel

ICI discouraged lateral hiring (head hunting) and practiced it only in times of dire need when there were

no suitable personnel within the organization. We believe however that ICI should pursue a mix of

internal and external hiring. This is because employees who start from an entry level and stay up to go in

to the higher hierarchical levels may develop a single tracked thinking and bringing in people from the

outside might lend in fresh and new perspectives to situations.

Recruitment Activity

The entry level management trainee (MTO) and commercial trainee (CTO) program formed the backbone

when it came to the development of the human resources at Akzo Nobel ICI paints since they strongly

believed in internal hiring.

Mr. Aftab stressed on the fact that “the ideology at Akzo Nobel ICI paints was to develop future leaders

rather than hire successful managers externally.” This justified why the MTO and CTO program were at

the centre stage of the strategic recruitment process. Moreover he went on to reveal the fact that the


current Vice President and the General Manager of Akzo Nobel ICI paints were themselves management

trainees to begin with.

Analyzing the entry level recruitment process in detail Akzo Nobel ICI paints aims to attract fresh

graduates from leading universities such as LUMS, IBA, and LSE to name a few from across the country.

For this purpose Akzo Nobel ICI paints conducts annual road shows and publicity campaigns. The

applicants are made to sit in for a recruitment test followed by a series of group discussions and

comprehensive interviews before they are formally inducted into the company. Mr. Aftab pointed out that

the ideal candidate was one who possessed a high degree of potential, a logical mind and was capable of

working under challenging situations. Apart from this, a minimum GPA and inter personal skills were

also of significance. The new recruits are then subject to a one year probation period after which they are

confirmed as permanent employees.

Metrics

HR mangers assess the performance of their employees with the help of metrics i.e. some calculations

that can be considered as a judgmental tool in the qualitative and quantitative functioning of the firm .

Metric is the imperative tool to judge the HR practice effectiveness in the firm.

Employee Compensation

Motivation is one of the most important factors that set apart the employees of an organization and their

overall job satisfaction and productivity. It is what drives the competitive edge, enabling an organization

to outperform its competitors owing to its highly motivated workforce. Motivation includes compensating

and rewarding the employees for their performance, creating a safe and conducive environment as well as

addressing issues that lead to dissatisfaction.

Salary Structure

Akzo Nobel ICI paints in order to motivate its workers offers a wide range of incentives. The monetary

benefits include a salary structure that is a mix of pay for performance as well as dependent on the

hierarchical level. Salary increments and bonuses also act as encouraging tools to extract good

performance and high productivity. The overall salary package for a CTO (Commercial Trainee Officer)

is Rs. 45,000 and that for a MTO (Management Trainee Officer) is Rs. 60,000 both of which are slightly

above market average for the respective posts.


Fringe Benefits

ICI paints offer a comprehensive retirement pension plan which is a huge incentive for the employees.

There is also a free lifetime health insurance which covers for the whole family even after the retirement.

Moreover, the focus is to motivate workers by assigning them challenging tasks along with giving them

full independence regarding how to go about achieving their goals. Thus the management aims to provide

a working environment in which the employees feel engaged and consider themselves to be an integral

part of the organization.

The overall compensation plan is oriented to be in line with the strategic business objectives and

harboring leadership and entrepreneurial qualities within the employees. It is focused on the employees

giving them maximum incentive to bring out high levels of productivity as well as inculcate loyalty.

Employee Health & Safety

Employee health and safety have become major considerations for any organization. The Occupational

Health and Service (OHS) programs now give provisions for a safe and healthy environment. OHS should

be a part of the performance appraisal so that it enables the HR manager to obtain feedback on the

efficiency and the effectiveness of the organization’s OHS program.

Safety, Health, Environment and Security (SHES)

Health and safety are also key concerns for the management at Akzo Nobel ICI paints. For this purpose

there exists an independent department called the Safety, Health, Environment and Security (SHES)

which is constantly engaged in ensuring a safe and healthy work environment as well as eliminating any

possible hazards. The Safety, Heath, Environment and Security (SHES) department is very well

established and active at Akzo Nobel ICI and utmost importance is given to the implementation of the

policies. Hassan Aftab said that for any new employee or intern there is an SHES orientation and test. All

SHES policies are clearly outlined and explained to the new recruits. The recruits then take a test which is

used to gauge their information retention with respect to the SHES orientation. Those who fail the test are

reoriented. This is a comprehensive way of orienting the recruits and minimizing costs due to any health

or safety hazards.

A person entering the factory has to wear a helmet, mask, long boots, glasses and these kits are provided

by Akzo Nobel ICI to every worker and even visitors. Other safety measures include restrictions on using

cell phones while walking, or reading anything while getting off the stairs. These measures were actually

seen in implementation which gives an impression that indeed the Akzo Nobel ICI people were concerned


about the safety of the employees. The security system was also robust and no visitor was allowed to

enter in the vicinity of Akzo Nobel ICI without being accompanied by an Akzo Nobel ICI employee.

Employee Stress

Stress is a major concern for any organization. Increased levels of stress among employees can often lead

to reduced productivity and even burnout in extreme cases. If appropriate safety nets are not provided for

employees to manage stress, and the organizational workload is too stressful it can even lead to employee

dissatisfaction and high turnover rate.

ICI realizes this and has taken steps to help employees overcome stress. They have built in a mini golf

area on their premises. Employees can take time off to enjoy themselves playing golf while they de stress.

There are also regular team-building tours which give employees a break from work and help not only to

reduce stress but also act as strengthening the mutual bonds, positive working relationships and foster

cohesion amongst the employees.


was high and most of them seemed to be enjoying working at Akzo Nobel ICI. In response to the various

employee and staff interviews that we conducted, it was observed that the employees at Akzo Nobel ICI

paints were highly motivated and satisfied with management policies. This was further supported by a

very nominal average annual labor turnover figure of 3 to 4 percent.

Effects

The outcome of appropriate and supreme HR policies is evident from the growth and the number of

products that are there in the market of ICI. It is a symbol of quality and trust. ICI has proved its worth by

making their profit ratio a benchmark in the market they belong to


Assess The Challenges And Opportunities Lying Ahead Of The Organization

As mentioned earlier, ICI Paints is a market leader in the global paints and coatings business worldwide

and to attain this position the organization has strived to provide its workers with a global innovative

working atmosphere where they work together to find and share better solutions, making ICI Paints, its

brands, products and services, the first choice for people who want the best. Its strategy is to maintain and

develop its branded leading market positions in the global paints and coatings industry by continuously

improving its level of performance and production.

Now to achieve this goal one of the major objective of the organization is to develop its Human Resource

Department and to do that there are many challenges that the top management has to deal with.

The world is changing at a rapid pace relentlessly and to exist in this competitive environment,

organizations need to evolve and adapt continuously. ICI understands this and is aware that the only way

it can do is by increasing the level of its company’s performance thus improving its HR department. But

in doing so, it encounters several challenges. One of the key obstacles in the way of ICI is the continuous

developments in different aspects of HRM. Every other day new policies and plans are being introduced

and it is extremely difficult for a company to revamp its system altogether and especially of something as

important as HRD which is the backbone of the organization.

Another major challenge faced by ICI is the current financial crisis prevailing in the world economy

which has lead many companies towards downsizing and budget cuts. This has been having drastic

effects for the HR department as it gets the worst budget slash. Therefore, cut down in the budget is

another key hurdle in the way of ICI in attempting to improve its Human Resource department.

Thirdly with the changing trends, the companies’ authoritative culture is now giving way to democratic

culture. The human resources of any company are gaining more importance that its financial resources

thus making their Human Resource Department a strategic member of the executive level hierarchy. If

ICI wants to improve the performance of its company then it also needs to make amendments in its way

of working and planning by giving its HR department more access in the areas of development and

organizing which is not easy considering the present authoritarian environment prevalent in the top

management. Bringing a change is another problem that needs to be faced.

Despite all this it is not undeniable that improving the position and status of HR department of ICI can

open new doors of development and growth for the company. If the company is able to retain professional

and skilled people in its Human Resource Department who are capable in dealing with its employees

effectively then the company can go a long way as most of its success depends largely on its employees.


ICI can only remain at the top of the paint and coating business in the world if it’s able to attract and

retain its skilled workers successfully. The secret behind ICIs’ accomplishments is its innovations in this

industry, it lies in the ability of its workers to find solutions unforeseen problems before their competitors

that is keeping them ahead in the market and that is only possible if the workers are provided with sound

and healthy working environment which is capable of enhancing their skills and ideas. Provision of this

atmosphere depends on the HR department. Thus, if ICI focuses on improving its HR department it can

reap wide benefits from it.


Awards And Achievements

2nd Best Corporate Report Award 2007

A joint evaluation committee of the Institute of Chartered Accountants of Pakistan and the Institute of

Cost and Management Accountants of Pakistan declared our Annual Report for the year ended December

31 2007 to be the 2nd Best Corporate Report amongst listed companies in the chemical & fertilizer sector.

FBR Award

We were awarded Taxpayers Excellence Award2009 by the Large Taxpayer Unit, Karachi, a

division/function of Federal Board of Revenue, Islamabad. Since 1995, we have paid over Rs 31billion in

Government duties & taxes.

25th MAP Corporate Excellence Award

We were also declared the winner of the 25th MAP Corporate Excellence Award in the chemicals and

allied sector organized by the Management Association of Pakistan. Under this Companies are evaluated

on the basis of financial performance and best management practices.


CONCLUSION

“To be the partner of first choice for customers and suppliers, ensuring sustained leadership position in

the markets where we compete, delivering long-term business value through a high performance culture,

innovation, ethics and responsible care.”

After visiting Akzo Nobel ICI a couple of times and interviewing a handful of managers we found out

that every employee had respect, care and a sense of responsibility towards AkzoNobel ICI. The

managers were very well organized and knew exactly what they were required to do and how they should

go about achieving their objectives. Every manager had the mission statement at his desk and was very

well aware of exactly what it meant.

The claim of the HR manager that they recruited people and then made them into successful leaders rather

than directly recruiting successful managers was supported by the fact the Vice President of the Paint

division was a Management Trainee to start with. Similarly the current general business manager was also

a management trainee at the start as well. Such examples show that Akzo Nobel ICI is a merit employer

and that a deserving and capable person gets his due. The HR department is constantly looking for

innovative ways to transform Akzo Nobel ICI’s workforce which lends a competitive edge to the

organization over its rivals making it the success factor behind Akzo Nobel ICI’s performance. Moreover,

the aim goes beyond solely developing such a workforce, extending into ensuring its retention and hence

leading to the realization of Akzo Nobel ICI’s vision.

Another aspect which was observed by our team was the freedom given to the employees in choosing

how to achieve or go about performing a particular task assigned to them. The subordinates enjoyed

complete freedom of working while adhering to the overall norms and values of AkzoNobel ICI.

However this freedom also meant higher accountability as the seniors demanded explanation and

reasoning for every important action, whether it yielded right or wrong consequences.

The working environment was very comfortable and every employee was supportive and ready to help

each other in case of need. This was perhaps because of the fact that there wasn’t a ‘boss-junior’

relationship as such. No junior had to take an appointment from his senior in order to discuss something if

the senior was not busy.

This practice results in increasing the job satisfaction of the junior staff as they also feel important and

their motivation increases due to the fact that they have some say and are not mere servants of the

organization. Not to forget, there were formal meetings as well which were pre-planned.



was high and most of them seemed to be enjoying work at Akzo Nobel ICI.

In a nutshell, Akzo Nobel ICI’s workforce was very much committed to following the vision of the top

brass of the management and it would be really difficult for any competing firm to head hunt a manager

from such an organization where the level of loyalty and sense of belonging of the employees was

exemplarily high.

IcI

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