Sitara Chemical Industries Limited Faisalabad

Orientation Report

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Introduction

Sitar Chemical Industries Ltd. (SCIL)

SCIL is an industrial unit belongs to one of the largest Group of Industries in Pakistan

“Sitara Group of Industries Ltd.”

Sitara Group of industries comprises of following business units.

Sitara Group of Industries

Sitara Chemical Industries Ltd. _ Chemical Division

Sitara Chemical Industries Ltd. – Textile Division

Sitara Textile Limited

Sitara Energy Limited

Sitara Fabrics

Sitara Agri Model Farm

Sitara Per Oxide

Group’s Charitable Institutions

Aziz Fatimah Trust Hospital

Ghafoor Bashir Children Hospital

Aziz Fatimah Girls High School

Overview of the Organization

Brief History

Sitara Chemical Industries Ltd. was incorporated in 1981 as a public limited

company and started its commercial production in 1984, under the zealous administration

of two brothers, Haji Abdul Ghafoor (late) and Haji Bashir Ahmad. Now Mr. Muhammad

Adrees is the Chief Executive of SCIL. The factory is situated at 32km Sheikhupura

Road Faisalabad. SCIL incorporated under the companies’ ordinance 1984 and listed

in1987

Initially SCIL was incorporated for Chloral Alkali Production, however it under gone

merger with Gafoor Bashir Textile. SCIL has made growth by leaps and bounds and

become largest Caustic Soda producer in Pakistan. At present SCIL has a market share of

58% in Caustic Soda industry.

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Vision Statement:

Strive to develop and employ innovative technological solutions to add value to business with progressive and proactive approach.

Mission Statement:

Continuing growth and diversification for bottom line results with risks well contained.

Code of Ethics and Business Practice:

We believe in stimulating and challenging team oriented work environment that encourages, develops and rewards excellence and diligently serve communities, maintaining high standards of moral and ethical values.

Quality Policy:

Sitara Chemical Industries Ltd is committed to remain alert and advance, to continuously grow as a Quality Symbol for its products and in meeting industrial and consumer requirements, through training, team work, and procedures, on time, every time.

Environmental Policy:

Sitara Chemical Industries Ltd (SCIL) is committed to continual improvement of its Environmental Management System (EMS) by adoption of appropriate pollution prevention measures & complying with all relevant environmental legislation /regulations through training, teamwork and procedures as implemented from time to time.

Distinctions:

All the transactions and operations are free of Ribba (Interest). Pioneer in export of non traditional chemicals. Thrice winner of top 25 Companies Corporate Excellence Award from Karachi

Stock Exchange. Winner of Corporate Excellence Certificate from MAP ISO 9001 QMS certified. ISO 14001 EMS certified. SCIL is the first organization in Pakistan to introduce Mercury Free Caustic Soda Winner of Merit Trophy for Export of Non-Conventional Items by FCCI ( 2002 -

2003 )

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Organizational Structure

Works Departments1. Process2. Mechanical3. Fabrication4. Electrical5. Instrument & Electronics6. Technical Cell7. QC & Laboratory8. Material Management9. HSE10. Civil11. Stores

Non-Works Departments1. CEO’s Secretariat2. Personnel3. Administration4. Marketing5. Commercial6. Finance & Accounts7. Imports8. Agri Division9. Internal Audit10. ISO11. I.T

Products of SCIL:

Chemical Products:

Caustic Soda Solid

Caustic Soda Flakes Caustic Soda Liquid (50%) Caustic Soda Liquid (33%) Bleaching Powder (Industrial) Bleaching Powder (Commercial) Ammonium Chloride Hydrochloric Acid Sodium Hypochlorite Liquid Chlorine Hydrated Lime

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Specialty Products:

Calcium Chloride Nickel Chloride Magnesium Chloride Ferric Chloride Poly Aluminum Chloride (Solid) Ferric Sulphate (Solid Powder) Magnesium Carbonate

Agri Products:

Phosphorus Plus NPK-C Nutri Calcium NITRO-20 Chelated Zinc Chelated Iron

Organizational Objectives of Human Resource Management

Human Resource Management therefore, is required to have focus on the following objectives.

To design strategy ensuring fuller utilization of human resources. The strategy may differ from organization to organization depending on its unique nature of operation, activities and the existing employer - employee relations.

To establish and maintain a self-respecting relationship amongst all employees of the organization.

To enable each person to make his maximum personal contribution to the effective working of the organization by creating on appropriate and conducive work climate.

To bring about maximum individual development of personnel through renewed thrust on employees education and training.

To make effort to recognize and satisfy individual and group need for providing higher job satisfaction, and

To maintain a high morale and better human relations to win employee’s commitment.

Functional Objectives of Personnel Department

The Primary role of Personnel Department is to assist Management in the formulation, implementation and administration of all Personnel Policies & procedures and develop strategies for utilization of Manpower in well organized and economical manner.

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Major Role & Task:

To assess future manpower requirements and induct manpower as per approved strength.

To access future requirements and evaluate training needs of Employees and arrange/organize internal/external courses for the staff/workers.

To implement Company’s performance appraisal and promotion system. To maintain a system of attendance/absence, leave and service record and prepare

salary bills of workers. To negotiate Union-Management agreements and keep cordial relations with

CBA Union. To develop and maintain cordial inter-employees and employee-Management

relation to ensure prevail peaceful atmosphere in the factory. To maintain cordial relations/interactions with concerned Government

Departments.

Divisions of Personnel Department

Time Office Salary/wages section Contribution and dealing with different agencies Training & Development Division

Time Office Activities:The primary function of Time Office is to evolve a system of attendance of all staff/ workers.

General Time Office Registers:1. Production Attendance Register2. Main Office Register3. Admin. & Personnel Register4. Miscellaneous Register5. Leave Register Sitara General Shift6. Leave Register Sitara Shift Group7. Leave Register Alpha Trader8. Leave Register Khyber Manpower Services9. Leave Register Star Trader10. CPL Register Staff Sitara Group11. CPL Register (Aplha, Khyber and Star)

Time Office Reports:1. Staff Attendance Report2. Worker’s Attendance Report3. Long Absence Report

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4. Habitual Absence Report5. Late Coming Report6. Contractor Labour Attendance Report7. Work Days Out Report8. Employees monthly attendance report

Swipe Card System:1. Sitara Group2. Sitara General Shift3. Alpha Trader4. Khyber Man Power Service5. Star Trader

Punch Card System:1. Daily Wagers I2. Daily Wagers II (Project)

Recruitment & Selection

Recruitment Policy:Following is the recruitment policy of Sitara Chemical Industries:

(i) Nature of Appointment: Permanent Roll (Sitara) Contract Roll (Alpha+Khyber+Star) Temporary Roll (Daily Wagers)

(ii) Appointment Categories: Management Employees (Sitara Roll) Trainee Engineers/Management Trainees Workers (Contract Roll) Internal Contractors (Independent Contractor)

Recruitment:Recruitment objective is building of a pool of candidates for each job from which an organization chooses the most appropriate candidate.Personnel office for this purpose enrolls manpower as per departments approved strength.

(i) Workers/Daily Wagers Categories: Interviewed and employed after their selection by respective Head of Departments.

(ii) Middle/Higher Management Categories : Selected through boards comprising of Senior Managers/Executives. For these categories, applications are invited through advertisements in the Daily newspapers. Short listed

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candidates are called for interview, test and selection. Similarly, disciplinary action against those employees found guilty of offences such as absence misconduct etc in also initiated by Personnel Department. The following methods are available for recruitment of suitable candidates:-

Methods of Recruitment:

Internal Promotion from within

Bulletin Boards Replacement Charts

Employee’s Referrals Have realistic job expectations Are usually reliable Cheaper Confusion between friendship and competence Nepotism

AdvantagesCompany has better knowledge about employee’s strength and weaknesses.

Job candidate has a better knowledge of company. Return on investment on current work force is higher. It is Cheaper than external sources.

Disadvantages

People might be promoted where they cannot perform the job successfully.

Infighting for promotions can adversely affect morale. Inbreeding can stifle new ideas and innovation. Prejudices and biases can creep in resulting in wrong selection.

External

Advertisement Hiring Consultant Firms Walk In Industrial Referrals Retired Employees Independent Contractors Applicant Data base

Advantages

Talent pool larger Fresh Blood

Disadvantages

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Expensive Time Consuming Irrelevant people may apply Evaluating people is difficult Adjustment and orientation time is longer Morale problem for those employees who consider themselves

better qualified than new comer.

Performance Appraisals

Performance appraisals represent a company’s way of telling employees what is expected

of them in their jobs and how well they are meeting those expectations. Typically,

performance appraisals require supervisors to monitor employee’s performance, complete

performance appraisals forms about the employees and hold discussions with employees

about their performances.

Sources of Performance Appraisals Information

Information for performance appraisals can be established from five sources:

1) Employee (That is the individuals whose job performance is being appraised)

2) Employee’s supervisor

3) Employee’s Co worker

4) Employee’s Sub-Ordinates

5) Employee’s customer or client

How Performance Fits into HR:

Performance and Recruitment & Selection:

Job candidates choose to work for particular companies for a number of reasons

including career advancement opportunities, training, and reputation for being a “good”

place to work, location, and performance. Companies should use performance to compete

for the very best candidates. In addition, it may offer such incentives as one time signing

bonuses to catch high quality applicants.

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Performance and Performance Appraisals:

Accurate performance appraisals are key to effective merit pay programs to succeed,

employees must know that their efforts meeting production quotas or quality standards

will lead to pay raises. Moreover, employees must perceive a strong relationship between

attaining performance standards and pay increases. Merit pay systems require specific

performance appraisal approaches.

Performance and Training & Development:

Successful pay for knowledge plans depends upon a company’s ability to develop and

implement systematic training programs. When training is well designed, employees

should be able to learn the skills needed to increase their work performance, as well as

the skills necessary to teach and coach other employees at lower skill levels.

Performance and Career Development:

Most employees expect to experience career development within their present companies.

Employees experience career development in two different ways. First, some employees

will change the focus of their work; for example, from supervisor of payroll clerks to

supervisor of inventory clerks. This change represents a lateral move across the

company’s hierarchy. Second, others will maintain their focus, assuming greater

responsibilities. This change illustrates advancement upward through the company’s

hierarchy.

Performance and Labor-Management Relations:

Collective bargaining agreements describe the terms of employment (Pay work hours)

reached between management and the union. Performance is a key topic. Unions have

fought hard for general pay increases and regular COLA to promote members, and

provide better environment, standards of living.

Performance and Employment Termination:

Employment termination takes place when employee’s agreement to perform work is

termination. Employment terminations are involuntary and voluntary. The HR

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department plays a central role in managing voluntary and involuntary employment

terminations on the basis of performance.

Annual Appraisals of Permanent Employees:

(i) Appraisal Forms:

There are different Performance Appraisals Forms uses. Workers (SCIL, Star, Khyber and Alpha) Officers (AM to Asstt Supervisor) Deputy Manager and above

(ii) Performance Year:July - June

Probationer’s Appraisals:

Apprentices Workers Trainee Engineers/Management Trainees Management Employees

(i) Probation Period:

One year in case of Management Employees as well as Trainee Engineers/Management Trainees

Three/Two years in case of workers with respect to their qualifications

Management of Un-Satisfactory Performance:In case of un-satisfactory performance following actions takes place by the Management of Sitara.

Probation period extended Annual increment stop Separation from Service

Compensation & Benefits

Compensation represents both the intrinsic and extrinsic rewards employees receive for

performing their jobs. Intrinsic compensation reflects employee’s psychological

mindsets that result from performing their jobs. Extrinsic compensation includes both

monetary and non-monetary rewards. Organizational development professionals promote

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intrinsic compensation through effective job design. Compensation professionals are

responsible for extrinsic compensation.

Financial Compensation Wages & Salaries Bonus Fringe benefits Travel Interest free loan Recreation facilities Profit sharing

Non-Financial Compensation Job enrichment Promotion Responsibility Learning Career Development

Criteria for setting remuneration:

Salary levels are determined on the following criteria:

External job/labor market Job content and impact on company results and orientation Area and level of responsibility Qualification and experience on the job Assessment of capabilities

Working Hours:

Morning Shift (6:00 A.M to 14:00 P.M)

Evening Shift (14:00 P.M to 22:00 P.M)Night Shift (22:00 P.M to 6:00 A.M)General Shift (8:00 A.M to 16:30 P.M)

Salary:

Payment of salary made at the end of each month and transfer directly to the employee's account or through cheques / cash as the case may be.

Overtime Policy and Procedure:

(i) Employees Entitled Overtime:

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Assistant Foreman and below are entitled overtime.

(ii) Employees not Entitled Overtime:

Foreman and above are not entitled overtime.

Types of Leaves:

Casual Medical Annual Compensatory Social Security Hajj Leaves Leave without Pay Short Leave

10-C Bonus:

To all permanent employees who are on Sitara roll.

(i) Payment Period :

July-June

(ii) Entitlement for 10-C Bonus:

Date of appointment should be in the month of December not in the month of January.

Ex-Gratia:

To all employees who are on Sitara roll.

(i) Payment Period:Oct-Sep

(ii) Entitlement for Ex-Gratia:Minimum attendance should be 90 days and only workers are entitled.

Transport FacilityTo all employees

Accommodation FacilityTo all employees.

Subsidies Mess FacilityTo all employees

Hajj Facility:

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(i)Hajj Policy:

The Management of Sitara sends three employees through balloting inclusive of all categories which are as follows:Category IAll officers, Assistant Supervisors upto Deputy Managers who have completed at least five years of service on the date of Hajj Draw.Category IIAll permanent workers on Sitara roll, who have completed at least five years of service on the date of Hajj Draw.Category IIIAll workers on contract roll i.e. Aplha, Khyber and Star who have been completed at least five years of service on the date of Hajj Draw. All those workers who were earlier on Apprenticeship, their service will be counted towards total service.

(ii) Not Entitled: Those employees who once have performed Hajj under Free Company’s Hajj Scheme, their names will not be included in the Draw for the second time.

Medical Facility Social Security Aziz Fatima Trust Hospital (upto 30% discount)

Group Insurance Workers insured upto Rs. 200,000.00 Officers insured upto Rs. 300,000.00

EOBIContribution of all employees made @ 6% Per Month.

Provident FundContribution made after confirmation only employees of Sitara roll.

Hygiene TestMade at the time of appointment and renew after 6 months. Social Security Doctor has the authority to renew. This test is for all workers.

Hazardous TestThis test renews after 6 months and District Health Superintendent or above has the authority to renew. This test is for all workers who come on shifts.

Problems that effect Compensation:

(i) External Environmental Problems:

Nature of competition Nature of Labour Market Govt. Regulations

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(ii) Internal Environmental Problems:

Corporate Strategy Management Philosophy The type of job Productivity

Training & Development

Training Need Assessment (TNA)

1. A training need exists when there is a gap between what is required of a person to perform their work competently and what they actual know.

2. A training needs assessment or training needs analysis is the method of determining if a training need exists and if it does, what training is required to fill the gap.

The purpose and objective of Needs Assessment

Conducting a needs assessment is useful in identifying:• Organizational goals and its effectiveness in achieving these goals.• Gaps or discrepancies between employee skills and the skills required for

effective job performance.• Problems that may not be solved by training.• Conditions under which the training and development activity will occur.

Internal Training

Personnel Department is also responsible to chalk out internal and external training for the Management Staff and Technical Workforce. The yearly programme is prepared in the month of January/February every year in consultation with Head of Departments. The record of such training is kept with Personnel Department for better monitoring and subsequent inspection by the external audit team of ISO-9001:2000.

(a) In-house Training(i) By External Trainer(ii) In-house training after acquiring external training

(b) On the Job Training (i) By immediate supervisor (as per weekly plans)

External Training

(a) Executive Training (i) External Courses (ii) Seminars (iii) Workshops (iv) Conferences

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Induction & Training of Management Trainees / Trainee Engineers:

SCIL is inducting fairly large number of Management Trainees and Trainee Engineers in all fields. Presently we have such Officers undergoing practical/on job training at our premises.

Orientation:Orientation is the HR activity that introduces new employee to the organization

and to the employee’s new tasks, superiors and work groups. Orientation is viewed as a kind of training aimed at socialization the new employee about the norms, values, work procedures and pattern of behavior and dress, which are expected in the organization.

Objective of Orientation:

Reducing the start-up casts of new employees. Reducing Employee anxiety and hazing. Reducing turn over. Saving time for superiors and co-workers. Develop realistic job expectations, positive attitude towards

Organization.

Guidelines for Effective Orientation Program: Begin with the most relevant and immediate kinds of information

and then proceed to more general policies. Give significance to the human element. Gradually introduce to the work group. Appropriate time should be given for settling down.

Orientation Drawbacks: Supervisor’s negative response vague orientation Pushed into high risk area Buddy substitution. Overwhelming/overloading

Internship Training for students

Various professional Universities / Colleges are approached by the Company on yearly basis in order to provide internship training to those students who are in the last leg of their studies. The students are given four weeks on-job training on the Plant. The students are provided free lunch / transport facilities in addition to monthly stipend to dispense with their day to day expenditures.

Apprenticeship Training It is always difficult to recruit technical manpower for the Chemical Industry, being typical in nature. In order to address this issue in a professional manner SCIL has

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introduced Apprenticeship Training Program. In this manner not only we have succeeded in maintaining our technical skill level but also have contributed very positively in the improvement of Human Resource Skill of the country. Broadly, we enroll apprentices in three categories i.e. Diploma Holders in the discipline of Chemical, Electrical, Mechanical and Instrument. F.Sc is enrolled as Trainee Lab Analysts, Trainee Plant Operators and similarly, Science Matriculates are enrolled as Trainee Fitters, Trainee Plant Operators and Apprentice Plant Operators. On successful completion of training period, these are inducted as regular member of the Team.

Computer Literacy Program:

A computer training program organizes by Personnel Department at HRD Training Center. The duration of Computer Course is three months and after completion, the students awarded certificates.

Career Progression:The company, besides providing competitive salary package, guarantees good career progressions to its employees. Due attention is given to succession plans to fill up gaps required at the time of need. The employees are made aware of their career progression’s profile right at the time of induction.

Activities Report:

Following are the monthly activities report, which are submit in the CEO’s Secretariat.

1. Recruitment/Quital Report2. Disciplinary Report3. Counseling Report

(i) Habitual Absenteeism(ii) Safety Violation

4. Legal Cases Report5. Orientation Report6. Salaries, Wages & Overtime Report

Disciplinary Actions:

Disciplinary action takes against misconduct. There are seven categories of misconduct.

1) Absence (i) Long Absence(ii) Habitual Absence

2) Fraud 3) Misappropriation4) Theft5) Quarrels

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6) Misbehavior7) Disorderly Behavior

Problems/Recommendations

1 – Decentralization

There is a need to delegate the powers down the hierarchy so that Top Management could concentrate only on issues of strategic importance.

2 – Better Communication through E-Mail

There is a need to promote e-mail system of sending and receiving mails to reduce cost of stationery and storage.

3 – Minimize Resistance to Change

There is a need to minimize the resistance to change. Top management should

support the change management.

4 – Line Management

Line Management doesn’t co-ordinate with Personnel Department. There is a

need to develop co-ordination with line management. So line management

should support Personnel Department and be responsible in correspondence.

5 – Attitude, Communication and Teamwork

There is a need to development the atmosphere of teamwork. For better

results there is a need to conduct refresher courses for brain washing.

6 – Promote Professionalism

There is a need to develop professionalism within the organization and need to

develop co-ordination within the Departments and HOD’s should adopt

professional approach.

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7 – Appointment of Blood Relations

Management should allow the appointment of relatives of in-service

employees.

8 – Performance Feedback

Management should involve the employees in performance appraisal process

and should give a feedback about their performance.

9 – Management Philosophy

At the end in all above problems and their recommendations it can only be

possible with the support of Top Management. The Management should adopt

open door policy. Informations should be share from top to bottom. There

should be a strong co-ordination, flow of informations from top to bottom. In

this entire scenario Top Management’s support is very important because

changes always from top.

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