General Tire and Rubber Company of Pakistan Limited - Employment Essay Example

HUMAN RESOURCE MANAGEMENT FINAL PROJECT GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LIMITED Group members: Maha sikandar (3403) Mahreen amjad (3233) Waqas-bin-syed (4827) Letter Of Transmittal Mam Abida Shaheen The Course lecturer Human Resource Management Iqra University Gulshan Campus, Karachi. Subject: Term Report on GENERAL TYRE Dear Miss, We feel immense pleasure in presenting this report at ‘Human Resource Management’ of General Tyre, as the part of our course requirement.

We have thoroughly enjoyed working on this report and it is a great experience for us to present this report after working on it with great pleasure. We have tried our level best to complete this report with respect to the desired requirements. Kindly accept it, we hope this report will prove to be satisfactory. Sincerely Yours, Maha Sikandar (3403) Mahreen Amjad (3233) Waqas-Bin-Syed (4827) ACKNOWLEDGEMENT First and foremost we would like to thank Almighty ALLAH who gave us courage and strength to complete this term report on organizational structure of GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LIMITED.

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This report is concerned with the course HUMAN RESOURCE MANAGEMENT which we study in Iqra University taught by MADAM ABIDA SHAHEEN. We shall fail in our duty if we do not acknowledge the credit where it is due to MADAM ABIDA SHAHEEN who deserves the greatest credit for helping us, to make our report more interesting and easy by giving valuable advices and ideas. The completion of this report might not be possible without the extra-ordinary support by CAPITAN S KHUSRO IQBAL presently working as a Head Human Resources, MRS. SOFIA FASEEH presently working as a Sr.

Executive Human Resources, SYED EJAZ HUSSAIN presently working as a Officer Human Resources and OBAID-UR-REHMAN presently working as Senior Supervisor Human Resources. We are indebted to our friends and all the people who helped us for their remarkable attitude & great co-operation. We articulate our special thanks to our beloved parents and the members of GENERAL TYRE AND RUBBER COMPANY OF PAKISTAN LIMITED who supported us and helped us through the completion of this report. TABLE OF CONTENT Page no.

1. HR Policies 2. HIRING / RECRUITMENT PROCEDURE 4 3. COMPENSATION PROCEDURE 8 4. DRESS CODE 10 5. TERMINATION OF THE SERVICE 13 6. LEAVE ACTIVITIES 16 7. EMPLOYEE ENROLMENT AND

CLAIM PROCEDURE FOR LIFE ASSURANCE 19 8. EXECUTIVE SUMMERY 22 9. CONCLUSION 24 10. APENDIX 25 HR POLICIES: 1- Spearhead the development communication and implementation of effective growth strategies and processes. 2- Collaborate with the Executive

Management Team to develop and implement plans for the operational infrastructure of systems, processes and personnel designed to accommodate the growth objectives of the Company. 3- Formulate strategic and operational plans for implementation and future development of GTR and its key business objectives. 4- Improve, monitor and control Company policies and procedures through appropriate check and balance system for the day-to-day operations of GTR. 5- Maintain a dynamic and highly motivated environment in which results can be achieved and measured on a consistent basis.

6- Plan, implement, monitor and control GTR activities within the parameters of yearly budget, policies and procedures duly approved by the Board. 7- Be proactive and responsive to the needs of all stakeholders. 8- Have the ability to co-operate and work together with the foreign technologists. HIRING / RECRUITMENT PROCEDURE EMPLOYEE’S HIRING ACTIVITIES: Candidates send their applications or resume, these applications or resumes are than collected by Human Resource Database. 1) Need Analysis:

Need of hiring a new employee is analysed when any staff member is terminated expired or retired. 2) Personnel Requisition: Concerned departments than fill a Man Power Requsition form which is a personnel requisition form it consists all requirements and details required. 3) Advertisement: In , case the vacancy cannot be filled from within the company or through HR database the concerned departments shall submit to HRD the advertisement Request form to publish the job vacancy in suitable newspaper.

HRD after its certification will send the advertisement request form to CEO for approval. Once the advertisement request form is approved by CEO the same form will be sent to advertisement agency for its publicationthab the advertisement agency will send the draft back to HRD along with layout of advertisement for approval by HRD before its publication after confirmation , the advertisement will be published in the newspaper through the advertisement agency.

4) Screening: As soon as the application are received HRD will sort out job application position wise where applicable, write down the job code on each application , than HRD will short list the job applications as per job profile received from concerned department to call short listed candidates for interview as per schedule agreed with the interviewers.

In case the short listed job applications exceed the assumed number of applicants to be called for interview HRD and concerned department will further short list the applications. Only those candidates will be called for interview who quality the criteria set in job profile. After short listing of applications, HRD will finalize the date and time of interview on interview schedule form in coordination with those who are to interview the short listed candidates. 5) Interview :

After finalization of interview date and time, HRD will call the candidates for interview by means of email / telephone/ mail whichever is viable, A summary of interviewees mentioning date and time for each particular candidates will be prepared by HRD and sent to administration, candidates for all positions must be interviewed by HRD in selection is to assess the candidates suitability for position and provide recommendations to concerned Managers, All the candidates are evaluated on the basis of criteria set in interview evaluation form to be fill by all interviewers maximum three and minimum two short listed candidates will be selected for final candidates will be made unless these interview evaluation form are completed by all interviews in all respect. HRD will brief the selected candidates his approved salary and benefits after taking approval from CEO Man power requisition form.

In case the selected candidates does not agree to the offer, the second short listed candidates will be called for interview, candidates are required to be called for an interview from out station , reasonable travel expenses and accommodation (in case of overnight stay) may be paid by the company, if approved by Head of HR and CEO as well. 6) Pre- Employment Screening And Testing: Before finalizing the candidates a written test is taken, candidates are evaluated on the basis of this test aggregate marks are evaluated. This test is considered very important as candidate scoring high in this written test will be prefer more on the one scoring less. 7) Hiring And Employee Offer: In case of approval, the said candidate will be informed regarding his final selection, the selected candidates will be provided with letter of intent informing him/her of selection for the position interviewed for.

HR will also seek selected candidates date of joining , head of HR and his designate will sign all the letters dealing with employment offer. The copy of letter of intent with candidates, hand written, joining date will be sent to concerned department. Head of information , administration department, head of gate office information, head of industrial engineering department for preparation of orientation program in advance. 8) Orientation Programs: On joining day HRD arranges and orientation program. The new employee will be escorted t concerned department head. The new employee will fill the following documents such as, i) Employee joining report.

ii) Employment form iii) Conflict of interest form iv) Declaration form All these forms have to be properly filled out before placing in personnel file. On the orientation day personnel number will be provided to employee on joining report and a copy of that report will be sent to time office. 9) Probationary Period: All new employees will undergo six (06) months of probationary period before confirmation of employment. For in house appointments the probationary period is 3 months. COMPENSATION PROCEDURE 1) Payroll Record: Human resource department keeps a payroll record through HR IS system (HRIS stands for Human Resource Salary Information System).

In this system all personal and impersonal information for example : starting from name , sir name , father name, salary, gender, designation even blood group of each and every employee from manager to worker level is present. HRD handle or look after the payroll activities through their system. 2) Time Sheets: Proper server based systems are in the set up for the attendance of employee. Time sheets are provided by “Time Office”, they are responsible to update time sheets in HRIS system on daily basis. 3) Payroll Deduction: When HRIS system is updated it is then sent to finance department for deduction. 4) Worker’s Compensation Insurance: Workers are provided with compensation insurance, till 2010 they were certified with Efu for insurance but now they are certified with east west insurance company. 5) Medicare:

There are two categories in medical insurance one is for staff and another is for worker , for staff like supervisors , managers etc a limited amount of 50,000 Rs is given they can utilize it in any of the hospitals including penal staff members can only facilitate their immediate family members with this medical insurance, for worker category SECI is followed direct government hospital pays parents and immediate family can utilize this benefit. 6) State Income Tax: State income tax is deducted from the employee’s salary. 7) Tax With Holding Payments: According to their policies all the responsibility of an employee whether a worker or staff member is on organization, particular amount of salary (according to individual’s salary) is deducted every month. 8) Earning Tax:

It is also applied. 9) Advances: They provide advances to the permanent employees only a particular amount like 30% – 50% of salary is given in advance is only provided when it is subjected to urgent situation. DRESS CODE Dress code for workers and staff members are different, but there is no hard and fast rule to follow dress code as it is a manufacturing and promotional company. 1. Business Attire Business attires includes business suits , dress shirts and ties , leather belts , leather shoes ( closed toes), with socks. 2. Casual Attires Workers who work on the plant need to wear tight and fitted outfits with close boots. 3. Uniformed Attire

There is a uniform for 1-3 grade workers for production area scheme is mustard (mustard button shirt and trouser with monogram of General Tyre), for Mechanical department sky blue uniform (same as mustard one) and for white lab coat is compulsory to wear. 4. Safety Attire Thick rubber boots and gloves are provided to workers who work on plant during the production. 5. Business Situations In formal and business meetings , managers required to be in their business attire. 6. Employee Categories Employees are categorized in 9 grades. Grade 1-3 (workers), 4-9 (staff members). Grade 4 A—Assistants: A-1 A-2 (Senior Assistant) Grade 5 O- Officers: O-1 O-2 (Senior Officer) Grade 6 S- Supervisor S-1 S-2 (Senior Supervisor) Grade 7 E- Executive: E-1 SE-2 (Senior Executive)

Grade 8 M- Managers: M-1 M-2 (Senior Manager) Grade 9 GM- General Manager: GM-1 GM-2 GM- 3 (Senior General Manager) CEO = COO Chairman 7. Job Posting Procedure Human Resource Information department put applications on internal notice boards; job posting activity is only performed when there is vacant space or extension or anyone is terminated on short leave or suddenly got expired. 8. Employment Of Relatives They focus on internal hiring as they say that it can be trusted at worker level there is a son quota , no relatives of staff are proffered only if they meet merit criteria, there is no relaxation on merit. 9. Employment Of Minors

As they are ISO certified it is their policy not to hire any employee less than 18 years of age and even is the person is above 18 and do not have his NIC , he is not eligible for hiring at GTRC. 10. Separation Of Employment Retirement notice is provided before six months and a reminder notice is sent to employee before one month. Termination is only done when something went seriously wrong like theft or spy activities. 11. Promotion Promotions to employees are given after minimum three years to five years if an employee is extra ordinary good in all aspects otherwise after the observation of chairman personally 12. Workforce Reduction It is not in their policy to reduce work force without serious reasons, only temporary employees are terminated in worst case scenario. 13.

Employee Suggestion Program They have open door policy . employees can go directly to their respective supervisor or managers if they have any problem or suggestion. Complain and suggestion boxes are also placed. TERMINATION OF THE SERVICE It is written in the chapter of the termination that there are the following ways of the termination. 1) Objective 2) Retirement. 3) Voluntary Retirement. 4) Resignation 5) Dismissal 6) Permanent Disability 1) Objective In this chapter it is written that how the company deals with the Retirement, Dismissal, and Resignation etc. The procedure of calculation and payment of the dues are followed through this chapter 2) Resignation

A person who want to give a resignation have to give a notice one month prior of his switching the job. The Application of resignation first received by the Departmental Officer. The person is asked to have a interview with Departmental Officer if he is a good worker Officer tries to convince him to be a part of that organization. If after the interview he still wants to switch the job his application is forward to the Divisional Officer. He also tries to convince the employee but if still be in the mood of quieting the job. The acceptance of resignation is than forward to the Cost and Finance Department with the appendix 42. Than his file sent to the Cost and Finance Department to clear his dues.

After clearing the Dues the personal file is send to the Record department where it being closed. 3) Retirement Retirement policy of General Tyre is concerned or related to the Ages and designation of the Employees Hourly working employees and Grade 1 to 3 employees have the age limit of 55 to be retire Grade A to O have the age limit of 58 to be retire. Grade E and above have the age limit of 60 to be retired. The management may consider if the employees want to continues his job after the age of retirement. 4) Dismissal Management can dismiss any employees if he violate the rules of the organization or be a part of any misconduct. Management will dismiss that person without any notice.

A guilty person will be called by the committee and will be given a chance to show his views on the dismissal or to argue on that dismissal. At the time of meeting the departmental officer is also called and consulted. Company may also warn the employee instead of dismissal. This can be in the form of 1. Issue of the Show-case notice. 2. Issue of charge sheet. 3. Issue of warning letter. 5) Voluntary Retirement Employee can take a voluntary retirement . He can take this retirement only on the medical issues. This type of retirement cannot be taken be the employees who is facing the charge sheet The employee has to give a notice one month prior to his retirement. This way of voluntary retirement is discussed in the chapter with a appendix 46. 6) Permanent Disability

An employee who faced the permanent disability due to any sort of accident within the organization or outside the organization is being compensated by the company. This type of retirement can be favored by the organization in case of serious ailment. One month prior notice should be given be the employee to the management to have a payment of all his dues on the company. LEAVE ACTIVITIES: * Purpose: To provide rest and recreation which is extremely desirable after a year’s hard work to re-enforce human energy, to develop individual holdings 2nd position by assuming additional responsibilities while the regular incumbent are on leave, to strengthen internal control which requires rotation of each function among different employees. * Leave Entitlement:

A permanent management employee becomes entitled to 30 days earned leaves after completion of one year’s un interrupted service. The probationary period is included in the service of one year of the permanent unionized staff. * Entitled for earned leaves for the following criteria: S. no| Service year| Earned leaves per annum | 01| 1 to 5 years of services| 24| 02| 6 to 10 year services | 27| 03| Over 10 year services | 30| The leave record is maintained accordingly to the financial year (july 01 to june 30 for management staff) and calendar year for (jan 01 to dec 31 for unionized staff). Therefore the leave for the current year shall be credited only at the end of the year i. e on 30th june each year for management staff and 31st December for the unionized staff.

The leave entitlement for new employees who have not completed one year’s services at the end of a calendar or financial year, shall be calculated on prorated basis and credited to their leave account on 30th june and 31st December for management staff or unionized staff respectively. However, first time leave availed for after completion of one year’s services. * Leave Rules: 1. Employee availed minimum 15 days after the completion of 1 year’s service under all circumstances. 2. A minimum of 7 days and maximum of 45 days earned leaves are granted at a time. For performing hajj leave up to 60 days may be allowed. 3. Medical and casual leave should not be allowed in continuation with the earned leave. 4. No leave shall be granted to employee who have resigned or under the notice period. 5.

The number of earned leave shall be reduced for gazette holidays falling during the leave period. The employee may, however, add these holidays while applying for the leaves. The employee must report for duty on the date given in the sanction time. * Accumulation of Earned Leaves: It is compulsory that out of 30 days entitlement in the year a half of the leave must be availed and remaining half i. e 15 days can be accumulated up to maximum of 90 days. * Encashment of Earned Leave: 1. The accumulated leave of not more than 90 days plus current year‘s entitlement on prorated basis shall be cashed on basis of last basic salary to employee leaving company on resignation, termination or retirement. 2.

Unionized staff can encash their earned leaves subject to minimum 30 leaves in balance. * Leave Fare Assistance (LFA): 1. Leave Fare Assistance (LFA) is a Financial Assistant to meet the re-creational expenses of an employee during leave. A permanent employee becomes entitles after completion of 1 year’s uninterrupted service. 2. One LFA means 30 days basic salary. 3. One LFA is paid on availing a minimum of 15 days earned leave. 4. Employee on probation/ training shall not be entitled for the LFA. 5. If the compulsory leave for 15 days is not availed, the LFA shall be lapsed. 6. No advance LFA shall be paid. 7. No LFA shall be paid on encashment of leave. RESPONSIBILITIES OF HR FOR EARNED LEAVES PROCEDURE:

* Assistant HR/ Designated staff is responsible for the following task in earned leave procedure: 1. To maintain and update the earned leave record in system. 2. To receive leave application from employee and post earned leave in system. 3. To keep record of employee availed and un-availed LFA. 4. To prepare and issue leave sanction/ extension/ revision and cancellation letter. 5. To dispatch leave sanction/ extension/ cancellation and revision to concerned employee department. * Responsibility Of Senior Executive HR: To review and recommend the changes in the earned leaves policy and procedure. * Responsibility Of DM-HR: Verifies and get the recommendation in policy/ procedure approved by top management.

EARNED LEAVE AND LFA PROCEDURE: 1. All department shall fit out Annual Leave Plan form (GTR-FM-99) before the start of financial year. Indicating tentative leave plan for all employee in each department, including managers. 2. All employee apply for leaves of the prescribed form at least two week before the start of their leave. The application form signed by employee and approved by the Department Manger. Original is forwarded to HR and copy is retained for departmental record. 3. Leave record for factory based is maintained up to officers level by administration, whereas for head office based staff by HR. The leave application should, therefore be sent accordingly. 4.

HR Assistant/ Designated staff then checks the LFA entitlement for the due year. If the employee is entitled for any LFA, the HR Assistant/Designated staff records availing of the employees LFA in system. 5. After verification of his earned leave and LFA entitlement, HR Assistant/Designated prepare sanction letter maintaining sanction of leave, leave duration, the date of rejoining, the office and balance earned leave. He/She also ask finance Department for pay employee the due LFA in the same sanction letter. 6. The original sanction letter is sent to concerned employee and a copy is sent to Manger of concerned employee and Finance Department. 7.

The original leave application and copy of sanction letter are filed in the concerned employee, personal life for future record, reference and audit purpose. 8. The concerned employee in Executive and above category will be submit the expense report to Finance for the claim of LFA payment. 9. On the last day of the year, the leaves earned during previous year are credited to individual leave account and the compulsory leaves. If not availed, is deducted from the total accumulated leaves. EMPLOYEE ENROLMENT AND CLAIM PROCEDURE FOR LIFE ASSURANCE * Purpose To provide life insurance cover to all permanent and contract Management staff of the company to help the family of employee financially who come across either with accidental or natural death of their loved ones. * Scope

The policy is applicable to all permanent and contract Management staff i. e grade ‘A’ and above. The policy is applicable to all permanent workers and unionized staff of the Company. * Life Assurance Entitlement: A permanent and contract management employee i. e from grade ‘A’ and above becomes entitled for life Assurance cover after conformation in case of regular employment and from the date of joining in case of contract employment as per following limits: In case of natural death all management staff are covered for the amount equal to their basic salary multiple of 36 times subject to minimum coverage limit of Rs. 225000/- and maximum coverage limit of Rs.

1,000,000/- It means if the management staff basic salary multiplied by 36 times is greater than Rs. 225000/- and less than Rs. 1000000/-, he will be entitled for actual amount equal to his basic salary multiplied by 36 times. If any management staff basic salary multiplied by 36 times is less than Rs. 225,000/-, he will be entitled for Rs. 225000/- and greater than Rs. 1000000/- he will be entitled for Rs. 1,000,000/- In case of natural death all workers and staff are covered for amount equal to Rs. 200,000/- All the employees, Management Staff and workers in case of accidental death are covered for double the amount they are entitled for natural death. * Procedure

Before observing 61th birth day, the employee is required to submit the Health Declaration Form dully filled to Executive Human Resource for life insurance cover. In order to answer queries and provide relevant information to insurance company, Executive Human Resources follows up the registration. When the employee registration with billing is received in HR, Executive Human Resources update this information in records. If any employee leaves the company, Executive Human Resources fills and send insurance termination form with covering letter to insurance company to terminate the life cover policy of employee with the company. Company Doctor is responsible to fill out and submit the statement form to Executive Human Resources for further process.

Any information required by insurance company for claim recovery will be provided by Executive Human Resources with help of Department Manager of Deceased employee. Executive Human Resources follows up the claim recovery process. Once the claim cheque is received from insurance company, Human Resources Manager with Department/ Divisional Manager of deceased employee hand over the cheque to family or nominee of the deceased employee. EXECUTIVE SUMMERY: General Tyre is one of the most leading Tire and rubber manufacturing companies on the world and it has a great market share in Pakistani market. General Tyre Company has HR policy to maintain Collaboration between the employees and the employer to have a good working environment. It works on improving, monitoring and controlling company policies.

Maintaining Dynamic and highly motivated environment is its first priority. Using new technology is one of the major HR policies so for implementing this policy highly qualified employees are tried to be a part of this company. The HR department is being divided in to sub-parts, Hiring/ Recruitment Procedure is one the most important part of the HR department of General Tyre. Need Analysis Personnel Requisition Advertising Screening Interviewing Pre-Employment Screening and Testing Hiring and Employee Offers Orientation Programs Probationary Period Compensation Procedure is also one of the most important parts of the Hr department. Payroll Records Time Sheets Medicare, Insurance State Income Tax etc

Dress Code includes Business Attire, Casual Attire, Uniform Attire, Business Situation, Employee Categories, Employment of Minors, Separation from job etc. Termination is also important part it includes Objective Resignation Dismissal Retirement etc Leaves Activities are also so important in Hr Department Leave Rules Leave Entitlement Accumulation of Earned Leaves etc Insurance also include in HR of General Tire, it include all the safety policies for the employees of the company. Procedure to entertain the employees regarding insurance, Documentation etc. CONCLUSION: General Tire Company is more benefit oriented company as compare to the other companies.

It’s HR has a great loyalty towards the company and it always work for the benefit of the company. It responses better to the employees. General Tyre’s HR department has all the great procedure as any world bests company have. APPENDIX: 1- List of New Entrance (Life Inc) 2- Health Declaration (Life Inc) 3- List of Employee to be Terminated 4- List of Employees with Received 5- Wages/Salery (Life Inc) 6- Death Claim Form (Life Inc) 7- Physician’s Statement Form (Life Inc) 8- Manpower Requisition Form 9- Job description form 10- Salary Comparison Sheet 11- Advertisement Request Form 12- Interview schedule form 13- Interview form

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