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Acknowledgement
All praises to ALLAH ALMIGHTY, who guides us in the darkness and all respects for the Holy Prophet MUHAMMAD (PBUH) who enables us to recognize our creator. This dissertation would not have been possible without the encouragement and generosity of number of people. I am very thankful to Prof. Maj Nauman Majeed who provided me the opportunity to conduct this project work. And whose kind help was always been with me throughout the duration of my semester. I feel highly obliged and want to express my deepest heartiest gratitude to my family their encouragement, help and constant support.

Khurram Qayyum 10304

Table of Content
Topic
Introduction Organizational Chart Brief Introduction of other Dept HR Dept of PEL Strategic HRM Discussing process of SHRM in PEL Labor Union in PEL CBA working Benefits for Managerial Employees Benefits for Unionized Staff Major Challenges Working Conditions Steps Complying with Factory Act Application of Factory Act References

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INTRODUCTION
Pak Elektron Ltd was established in 1956 with the technical collaboration of M/S AEG, West Germany. It is the oldest composite electrical equipment-manufacturing unit of Pakistan with the object of initially producing transformers, switchgears and electric motors. In 1962 after conclusion of joint venture agreement with AEG, total shareholding was purchased than by sponsors M/S Malik Brothers Limited. In October 1978, PEL was taken over by SAIGOL GROUP OF COMPANIES, which is the largest and well-know industrial and commercial group in Pakistan. The Saigol Group belongs to the Saigol family that is an old business family and has contributed a lot towards Pakistans industrial and believes in continuous development and growth. The result is a global business activity monitored through the various offices worldwide. Meeting Saigols traditions since its takeover by the group, PEL are also a Company on the go. The high growth rate proves the complete success of the professional management and provides sufficient confidence to trust in its future development schemes. Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. The company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programmes. The company comprises of two divisions:

Appliances Division Power Division

ORGANIZATIONAL CHART/HIERARCHY
Power Projects

Production

MD.Haroon Khan

Internal Audit

Finance

HR/Admn CEO Foreign Procurement

R&D

Director Operations

Marketing/Sales

Production/Mnfctrng

Quality Assurance/Control

BOARD OF DIRECTORS
Mr. Naseem Saigol Mr. Azam Saigol Mr. Murad Saigol Mr. Haroon Ahmad Khan Mr. Homaeer Waheed Mr. Muhammad Rafi Khan Mr. Gul Nawaz Mr. Masood Karim Sheikh Mr. Tajammal H. Bokharee Mr. Wajahat A. Baqai (NIT Nominee) (NBP Nominee U/S 182 of the ordinance) (NBP Nominee U/S 182 of the ordinance) (NBP Nominee U/S 182 of the ordinance) (Chairman/Chief Executive) (Director ) (Director) (Managing Director)

AUDIT COMMITTEE
Mr. Azam Saigol Mr. Haroon A. Khan Mr. Tajammal H. Bokharee Mr. Gul Nawaz (Chairman/Member) (Member) (Member) (Member)

COMPANY SECRETARY
Sheikh Muhammad Shakeel

CHIEF FINANCIAL OFFICER

Syed Manzar Hasan

AUDITORS
M/s Yousaf Adil Saleem & co. Chartered Accountants

LEGAL ADVISORS
M/S Hassan & Hassan Advocates

BANKERS
Bank Alfalah Limited Bank of Punjab Deutsche Bank Faysal Bank Limited KASB Bank Limited Standard Chartered Bank My Bank Limited National Bank of Pakistan NIB Bank Limited

Royal Bank of Scotland Limited

Brief Introduction about other Departments

OPERATIONAL DEPARTMENT
Operational department of the Company manage the operational system of the company. The Operational Manager manages the material, quality and cost of the products .

FINANCE DEPARTMENT
Finance department of the Company manages the financial system of the Company. The financial system is composed of consumers, manufacturers and distributors. The financial manager manages the financial system and provides or raises funds for the purpose of the business.

MARKETING DEPARTMENT
Marketing department of the Company manages the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives. The marketing manager is responsible for formulating, planning, executing and evaluating the marketing function.

SALES DEPARTMENT
Sales department of the Company manages the sales functions of the business. Sales manager works for enhancement of sales. The manager is responsible to achieve quantitative sales goals.

HUMAN RESOURCE MANAGEMENT:

Human Resource Management is the function within an organization that focuses on recruitment and selection, learning and development, performance management and organizational development and providing direction for the people who work in the organization.

HR Dept of PEL
HR VISION:
To achieve excellence through innovative HR practices and continuously exceeding our PEOPLE expectations. To manage talent and build capabilities of our people thus enabling them to deliver sustained performance.

HR MISSION:
To facilitate them in creating a collaborative work environment that develops a culture of continuous learning.

Strength of HR Department
There are about 25 to 30 employees working in HR department.

Main PROCESS OF HR:

Recruitment and Selection. Learning and Development. Performance Management. Organizational Development.

GRADE CRITERIA:
Managers of company are divided into the following grades.

1. 2. 3. 4. 5. 6.

Junior Executive Executive 3 Executive 2 Executive 1 Manager 1 Manager 2

7. Manager 3 8. Manager 4 9. Manager 5 10.Manager 6

HR Dept and its Sub Depts Organ gram

R&S ER Manager HR (Unit1) HR Operations Performance Management Admn Manager HR (Unit2) T&D OD

GM HR

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HIERARCHY OF HR DEPARTMENT

Manager HR GM HR

HR Executives HR Officers HR Executives

Manager HR

HR Officers

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Strategic Human Resource Management:

Strategic human resource management is the proactive management of people. It requires thinking ahead, and planning ways for a company to better meet the needs of its employees, and for the employees to better meet the needs of the company. This can affect the way things are done at a business site, improving everything from hiring practices and employee training programs to assessment techniques and discipline.

In Short:
Strategic human resource management aligns your human resource function to your core business objectives.

Right strategic human resource management can help your organization

1. To incorporate Human Resource plans into the mainstream of organizational strategy and management". 2. To instill belief on the importance of people in achieving the overall corporate plan, that people add value to the business operations of your organization; 3. To ensure that HR people learn to think and act strategically when carrying out their duties and responsibilities...and how these contribute to the achievement of organizational business plans; 4. To design performance incentive plans with the intention to continuously motivate employees and thus improve customer service in a dynamic environment; 5. To arrange for the right training programs to enhance current skills of your people or to provide them with new skills in line with your core business activities and at the same time improve your organization's capability; 6. To engage, motivate and retain your talented employees, and 7. To ensure that employee termination is properly done, according to existing laws, in order to minimize damage to your organization's image. In short, you will learn how your human resources, increasingly described as the only important asset, can play their important role in the accomplishment of the overall strategic plan and the success of your organization.

Main Strategic HRM Processes:

Recruitment and Selection.

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Learning and Development. Performance Management. Organizational Development. Industrial Relation. Labor Relation. Labor laws & Industrial Act practices.

Discussing Process of SHRM in PEL:

In this project the discussing process is Labor & Industrial Laws Practices with SHRM. In PEL there is a good structured HR management. The application of Strategic HRM is widely in practice by HR Department.

Employees Details
NUMBER OF TOTAL WORKERS:
HR department work under two divisions i.e. Appliances and Power division and about 750 managerial positions are in the Company and approximately more than 4000 workers are working in the Company.

Labor Union in PEL:

Provision of benefits to members:

Early trade unions, like Friendly Societies, often provided a range of benefits to insure members against unemployment, ill health, old age and funeral expenses. In many developed countries, these functions have been assumed by the state; however, the provision of professional training, legal advice and representation for members is still an important benefit of trade union membership.

Collective bargaining:

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Where trade unions are able to operate openly and are recognized by employers, they may negotiate with employers over wages and working conditions.

Industrial action:
Trade unions may enforce strikes or resistance to lockouts in furtherance of particular goals.

Political activity:
Trade unions may promote legislation favorable to the interests of their members or workers as a whole. To this end they may pursue campaigns, undertake lobbying, or financially support individual candidates or parties (such as the Labour Party in Britain) for public office.

Labor Union in PEL

The trade union or labor union in PEL is working likely to other Unions in other Organizations. This may include the negotiation of wages, work rules, complaint procedures, rules governing hiring, firing and promotion of workers, benefits, workplace safety and policies. The agreements negotiated by the union leaders are binding on the rank and file members and the employer and in some cases on other non-member workers.

Type of Union in PEL

In PEL we may say there is a type of POCKET UNION although it is working for the benefits of workers and maintaining a very strong bond between employer and employees.

No of Unions in PEL
There is only one union in PEL named and its working unanimously for the benefit of workers and workers are satisfied with that particular union and trust on the efforts and steps taken by union. The name of president of union is UMER SALEEMI.

Unionized Employees
In PEL all workers lie in labor category are unionized. All they are registered in labor union and take equal benefits from the efforts of Labor union.

Seasonal Employees
There are at least 1000 to 1500 seasonal employees on contract basis hired by PEL from contractor in peak work season and those employees are not the part of union .

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Name of Union
In PEL name of labor union is PEL LABOR UNION.

Which one is CBA

There is only one union in PEL thats why this is one collective bargaining agent.

Procedure of Union /CBA Working

CHARTER OF DEMAND
Union set the demand plan called CHARTER OF DEMAND according to the wishes of workers with consensus than negotiation made on it between employer and employees

Negotiation
After preparation of CHARTER OF DEMAND step of negotiation come between employer and employees.

CBA Agreement
After negotiation and removal of conflicts between both parties employer and employees CBA agreement comes into existence.

CBA agreement copies to be send to

Copies of CBA agreement have to send to various authorities including Govt Labor Department, Labor Minister Office, Area Magistrate , Federal Govt to Employer and as well as Union office .

Review of CBA agreement

Review of CBA agreement made on annual basis and also renewed it according to law prescribed with the mutual consent of both parties.

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Benefits of Working for Managerial Employees

Following are some benefits provided by employer to managerial employees.

BENEFITS
1. Medical facility:
Medical facility is provided to the managerial employees but only for wife and children not for the whole family.

Mode: For Managerial Level (M1 to M6)

In this range they can take the medical facility up to their 1.5 basic salaries.

For Executive Level (E1 to JE)

In this range employees can take the medical facility up to their 2 basic salaries.

2. Mess facility:
Mess facility is provided to managers only and they pay 1500 per month for this facility.

3. Mobile Handsets:
Mobile handsets are only provided to the managers.

4. Mobile Bill Payment:

Credit limit of different ranges allowed to managerial level personals and bill is paid by the company.

5. Provident fund:
Company also provides provident fund facility to the managers. The amount of provident fund is deducted from the salaries of the managers which is paid after the retirement.

6. Bonus:
2 bonuses are provided on basic salary to every person per year on EID occasions.

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7. Leaves facility:
Three types of leaves are provided to all the employees by the Company.

Paid leave. (total 32 with prescribed distribution )

Distribution or arrangement is as under:

Sick leave. (total 16 on half average pay) Casual leave.(total 10 with full average pay) Annual leave (total 14 with full average pay) 8. Overtime facility:
Overtime facility is given to the employees.

9. EOBI:
Employee Over Age Benefit Insurance provided to managerial workers in PEL.

10. Auto Mobiles:

Cars are also given to Managers according to their designation and may be depends on negotiation.

11. Fuel for Auto Mobiles:

Fuel facility is also provided to managers for their move .Especially highly facilitated to the employees of sales and marketing.

Benefits of Working for Unionized Staff:

Following are some benefits provided by employer unionized workers.

BENEFITS:
1. Lunch facility:
There is a workers canteen in the Company where lunch is available in very cheap rates and they pay only 260 rupees per month for this facility.

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2. Food Cards:
Food card is for the workers that enable them to get food items on credit basis later the bill amount will deduct from their salary. This step facilitates them to cope easily with house hold needs.

3. Advance Salary:
Employees can get their salary in advance with a simple procedure in case of their need.

4. Bonus:
2 bonuses are provided on basic salary to every person per year on EIDs.

5. Canteen:
Workers can get eatables and drinks from the canteen and also many other normal daily consuming goods are available at canteen for them.

6. Group Life Insurance:

Workers are insured in case of any injury or death.

7. EOBI (Employee Overage Benefit Insurance)

This is also for the workers which benefits them when they become retired from company. Monthly rupees 70 deducts from their salary and deposited to Govt that has to be paid by Govt on the particular time.

8. Labors Share of Income:

In PEL there is 5% labors share of income in companys profit in according to lines prescribed by LAW.

9. Break or Rest Time:

In PEL there is hour break available to workers in afternoon for rest and lunch.

10. Leaves facility:

Three types of leaves are provided to all the employees by the Company.

Paid leave. (total 32 with prescribed distribution )

Distribution or arrangement is as under:

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 Sick leave. (total 16 on half average pay) Casual leave.(total 10 with full average pay) Annual leave (total 14 with full average pay)

11. Medical facility:

Medical facility is provided to the workers and they can get treatment from social security hospitals.

12. Overtime facility:

Overtime facility is provided to the workers in accordance with law they paid 2 hours wage for 1 hour labor work.

Major Challenges Faced by HR Dept during Last year With Regard to Union:
1. Compensation in Case of Workers Death:
Dispute has been settled in case of workers death with the compensation of 30,000 RS.

2. Package of Hajj:
It has been settled that 3 workers have to send for HAJJ by PEL every year.

3. Lunch Charges:
It has been settled that workers will pay RS 260 as a per month charges for lunch prepared and provided by PEL.

4. Positive & Negative Demands by Union & to resolve the conflicts:

Companys high ups have been resolved some conflicts between union and company with consensus and mutual consent.

5. Make a Plan for continues training of Labor Improvement:

A plan has been made for continuous trainings of workers.

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6. Transport:
It has not been settled yet and still in process to find out any solution in this regard.

Working Conditions:
There are many conditions or restriction that are enforced by company in order to maintain the LAW and as well as the discipline of the organization.

1. Uniform:
Every worker in labor category has to follow the uniform code prescribed by PEL.

2. Timings:
It is important that timings are to be followed by all the workers in the organization and rules and regulations are clearly expressed to all the workers.

3. Medical Test:
It is a working condition to get a medical certificate before joining the job.

4. Adult Suffrage:
To work in PEL the worker must be adult there is no concept of child labor in PEL and strictly followed by the organization.

5. Intervals for Rest:

No worker is allowed to take more time than prescribed hour in this regard.

6. Leaves:
No leave more than leaves prescribed by law (i.e paid 32 leaves) as per schedule shall be allowed by PEL and considered as an absent in fact violation of conditions prescribed.

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7. Daily Hours:
Every employee has to work for 8 hours daily as per law and company enforced it strictly as prescribed in rules.

8. Double employment:
There is restriction on double employment that no adult shall be allowed to work any other factory when he has already been working in PEL.

9. Smoking:
Smoking is strictly prohibited in working areas in case of violation a serious action (fine or warning) can be taken against the person who is accused.

10. Exemption:
No employee shall be exempted from an order or duty as mentioned in notice displayed by company in union office or on main notice board. No lame excuse is acceptable.

Steps taken to Comply with Factories Act:

Following are some steps taken by PEL in accordance with Factory act or meeting the specified standards of this Act.

1. Cleanliness:
There is proper maintained cleanliness system in PEL. House Keeping section is responsible for this.

2. Disposal of Wastes:
House Keeping section is also responsible for disposal of wastes and effluents and this is properly maintained as per Law.

3. Ventilation & Temperature:

In PEL there is proper system of Temperature control and ventilation and through sealing, exhaust and other types of fans and the structure and design of building is helpful in this regard.

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4. Dust and Fume:

There are proper arrangements to save the workers from dust and fumes with the help of exhaust fans and masks provided by company.

5. Lighting:
In PEL modern lighting arrangements are provided by the company for the workers to accomplish their works or tasks.

6. Drinking Water:
There is enough water coolers have been installed to full fill the need of workers in PEL.

7. Latrine & Urinals:

There is an adequate and maintained system in this regard.

8. Precautions in Case of Fire:

In PEL there are adequate arrangements in case of fire emergency and also the direction boards or posters of emergency are fixed on visible areas of working area. Fire fighting equipments like extinguishers and sprinklers are available in case of emergency.

9. Notice of Certain Accident:

In case of any accident it has to be noticed to high ups within the limit of 24 hours and an immediate action has to be taken for the treatment of injured worker.

10. Exclusion of Children:

All the workers in PEL are within the age limit prescribed by Law , there is no child labor work for PEL.

Application of Factory Act:

Following are some application of Factory Act by PEL.

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Daily Hours:
In PEL there are only 8 hours of working as per allowed by factories Act.

Weekly Holidays:
There are 48 working hours per week for labors that is strictly followed by company.

Intervals for Rest:

In PEL there is (half) hour of rest that is between 12:00 to 12:30 noon.

Register for Adult Workers:

In this modern era there is proper data base system in PEL that maintain the whole record of whole employees.

Extra Pay for Over Time:

In accordance to law workers paid 2 hours wage for 1 hour over time labor work.

Annual Holidays:
There are 14 annual holidays allowed to workers as per Law.

Weekly Holidays:
There is one weekly holiday on SUNDAY in accordance with Law.

Employee Welfare:
In PEL this is related to ER department which is active in this regard.

Compensatory Holidays:
There are compensatory Holidays in PEL for those holidays which are announced by Punjab Govt.

Festival Holidays:
Any Festival Holiday announced by Punjab Govt is a Holiday with full day pay in PEL. If any worker wants to do work on that particular day then the company is bound to give him/her a substitute Holiday with day pay.

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References:
Mr.Salman Ch Manager HR Mr.Fraz Snr Executive HR PEL Cell no: 03004453653 Mr.Irfan Snr Executive ER PEL Cell no: 03004798355

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