Hair
Content
TABLE OF CONTENTS
Introduction
The Haier Group was founded in 1984 with headquarters in Qingdao,
Shandong Province, PRC. In 1984, Haier produced only a single model
of refrigerator, today it is one of the world’s leading white goods home
appliance manufacturers. Under the leadership of Chairman and CEO
Zhang Ruimin, Haier manufactures home appliances in over 15,100
different specifications under 96 categories. Haier products are now
sold in over 100 countries around the globe.
Haier has over 240 subsidiary companies, over 110 design centers,
plants and trading companies and over 50,000 employees throughout
the world. Haier’s focused industries include technology research,
manufacturing, trade and financial services.
The global revenue of Haier for 2005 was RMB 103.4 billion. Haier
Electronics Group Co., Ltd., a subsidiary of Haier Group, is listed on
the Main Board of the Stock Exchange of Hong Kong. Qingdao Haier
Co., Ltd., also a Haier subsidiary, is listed on the Shanghai Stock
Exchange.
COMPANY INFORMATION
Haier’s product categories range from refrigerators, refrigerating cabinets, air
conditioners, washing machines, televisions, mobile phones, home theatre
systems, computers, water heaters, DVD players and integrated furniture,
Hailey College of Banking & Finance
1
among which 9 are ranked market leaders in China, and 3 are ranked among
the top 3 worldwide in their respective industries. Haier is also a world leader
in the technology domains of intelligent integrated home furniture, networked
home appliances, digitalization and large scale integrated circuits.
By April 2006, the Haier Group has obtained 6,189 patented technology
certificates and 589 software intellectual property rights. Haier’s proposal for
safe care water heater technology initiative was accepted at the 66th IEC
Conference in 2002 and Haier dual drive washing machine technology was
included in the 2006 IEC standard proposal. This clearly demonstrates Haier’s
world-class innovation capabilities in product R&D.
Haier Pakistan
Haier was incorporated in 1984 producing household refrigerators and over the past
18 years, has grown and prospered as a transnational company widely recognized in
the world community. Haier now manufactures a wide range of house electrical
appliances in 86 categories with 13,000 specifications and exports products to more
than 160 countries.
Haier's international promotion framework encompasses globalized trading, design,
production, distribution and after-sales service network. Haier foot print stretches to
over 36,000 sales points as well as electrical appliances factories setup in America,
Pakistan, Indonesia, Philippines, Malaysia and Yugoslavia- to name some of the
markets. In the European market, especially in Greece and France, Haier airconditioners dominate the local markets as is the case with Chile, where Haier's
washing machines and air-conditioners are very popular.
Haier's small size refrigerators currently have 20% of the refrigerator market in USA.
Hailey College of Banking & Finance
2
Haier has established multilateral cooperation relations with many international rivals.
On January 8 and February 20, 2002, Haier signed an agreement of joint investment
with Sanyo and SAMPO for win-win development and benefits with respective
advantages and resources. Haier has been developing CFC-Free technology and
Industrial Waste Treatment systems, so that in addition to providing excellent value
for money there is a simultaneous improvement in the quality of life.
The joint venture between Ruba
Group and Haier Group of China,
brings Haier into Pakistan for the first
time. As the 5th largest producer of
home appliances in the world, Haier
brings its global expertise to work for
Pakistan market. Alongside the vast
range of Haier products that include
refrigerators, air-conditioners, deep
freezers and washing machines, dish
washers, vacuum cleaners, television
sets, mobile phones etc.
Haier is now widely recognized in the world. From the latest statistics of Euro-monitor,
Haier was placed fifth for the global white goods manufacturers with the largest world
market share for refrigerators*. In the list of the most respected companies in Asia
and Pacific Region published by the Far Eastern Economic Review issue December 26,
2002,
Haier was placed first. Haier production and management system restructuring has
enabled Haier to diversify internal and external resources. At present, Haier has put
its worldwide logistics, distribution and manufacturing facilities into efficient operation
for customer demand satisfaction. Haier's goal is to obtain worldwide recognition and
to become one of Fortune Global 500.
Haier Pakistan is the Pakistan Sales & Marketing division of the international Haier
Group, a globally recognized manufacturer of world-class electrical home appliances.
The joint venture between Ruba General Trading Company and Haier Group of China
has brought Haier to Pakistan with an initial investment of about USD 35 million and a
commitment to provide world-class innovative products based on uncompromising
quality to the Pakistani consumer. The plant spreads over a vast area of 63 acres with
a covered area of 0.6 million square feet including a workers' colony on Raiwind Road,
Lahore. The project is expected to produce 0.9 million pieces of household appliances
per year with plans to export to the Middle East and all over Asia. In the first year of
its operations, Haier will generate employment opportunities to 600 individuals with
potential to grow up to 1200 within the next 5 years. Furthermore, Haier will
supplement income of 1000 to 1500 families providing indirect earning and
employment possibilities.
The roster of products to be launched immediately in Pakistan includes Refrigerators,
Air-Conditioners (Window & Split), Deep Freezers and Washing Machines, Microwave
Hailey College of Banking & Finance
3
Ovens and Small Appliances with Dishwashers, Vacuum Cleaners, Television Sets and
Mobile Phones to follow shortly. Haier Pakistan has entered the local market with a
commitment to help its consumers reap the benefits of modern lifestyle and to
provide them world-class innovative products, unmatched nationwide customer
support, a vast dealer network and a steadfast after- sales-service throughout the
country.
Improving the Quality of Life
Our Mission
To improve the quality of life, focusing on customers' needs.
Behind Haier's success is this simple and ambitious philosophy, taking on concrete
form in the attention to research and design, carried out with maximum respect for
consumers and the environment.
Innovation, technology, timeliness, insight, organization, distribution capacity, solidity
and high quality services, are the factors that have enabled Haier to achieve important
goals, often anticipating new consumer trends and styles.
Haier has developed a corporate image campaign in Asian , aimed at creating strong
brand awareness, flanked by a policy clearly aimed at offering high quality and high
performance product ranges. The solutions proposed, combining styling and
practicality, are designed to meet the needs of Asian consumers and markets.
The Group's philosophy is also reflected in the reliability of the Customer Service
during the before and after-sales phases and in the resources used to create electrical
and electronic appliances intended to simplify the everyday life of families.
Our Vision
Hailey College of Banking & Finance
4
People derive limitless inspirational happiness from fresh food, clean clothes, a
comfortable environment and nice sunshine, but what they also need in this fast-paced
information era are product-based solutions for a comfortable home life. Thus what we
at Haier aim to do is to start with the needs of consumers and transform ourselves
GLOBAL BRANDING STRATEGY
Haier’s global branding strategy aims at positioning the company as a local
brand in different world markets in conjunction with enhanced product
competitiveness and strong corporate operations. Haier’s international
business framework encompasses a global network of design, procurement,
production, distribution and after-sale services. Today, Haier has established
15 industrial complexes, 30 overseas production factories and bases, 8 design
centers and over 58,000 sales agents worldwide.
In China, Haier’s 4 leading product categories - refrigerators, refrigerating
cabinets, air conditioners and washing machines - have over 30% market
share. In overseas markets, Haier products are available in 12 of the top 15
chain stores in Europe and 10 leading chain stores in the USA. In addition,
Haier has set up production facilities and plants in the USA, Italy, Pakistan,
Jordan and Nigeria.
Haier’s innovative management principles, such as Haier’s OEC management
model, “market-chain” management and “individual goal combination” – a
system of assigning incentives-based responsibility to staff to ensure the
quality of products delivered to their customers – have gained high
recognition among international management institutes. Haier business case
Hailey College of Banking & Finance
5
studies are included in the text books of Harvard University, University of
Southern California, Lausanne Management College, European Business
College and Kobe University.
PARTNERS
Haier has established an extensive sales network around the globe. Key
partners in perspective markets include:
• China: Strategic alliance with Suning and Gome chain stores
• America: Cooperation with TOP 10 retailers, e.g. SEARS, Lowe's, HOME
DEPOT, Best Buy, PC-Richard, Wal-Mart, Sam's, Costco, Brands Mart and
Target
• Japan: Cooperation with TOP 10 retailers, e.g. YAMADA, KOJIMA and
JUSCO
• Europe: Cooperation with Media Market and Carrefour.
QUESTIONARE
RECRUITMENT AND SELECTION
1. What is recruitment?
2. Why recruitment is necessary?
3. How you measure your recruitment requirements?
Trend analysis
Ratio analysis
Any other method (name :………………)
Doesn’t measure recruitment requirements
4. What is the current situation of your organization?
Downsizing
Rightsizing
Hailey College of Banking & Finance
6
5. Whose responsibility to recruit the candidates?
6. Method of recruitment you follow?
7. When a new job is created what do you prefer resources or external
resources?
External
Internal
Both
8. Is reference count in recruiting?
9. Which are your internal sources of recruitment?
Job postings
Succession planning
Internal hiring is not used
10. Is background necessary for recruiting?
11. Why careful selecting is necessary?
12. Do you follow or have any selecting law or ordinance?
Which are your external sources of recruitment?
Internet
Advertising media
Employment agencies
College recruitment
Internships
13. If selected employee does not work, as you like what you do?
14. Do you advertise your vacancy anywhere?
TRAINING & DEVELOPMENT
15. What do you mean by training?
16. What is your training procedure?
17. Any Act, Law, or any prescribed method do you follow?
18. How do you Train your employees after selection?
Hailey College of Banking & Finance
7
19. Which method of training does your organization uses?
Coaching
Lectures
Audiovisual based training
Computer based training
20. Do you provide some special training for some special purposes?
21. Method of training you follows?
22. What do you prefer?
On the job training
Off the job training
A combination of both
23. What types of trainee are working in company?
24. Do you hire any trainer or experts for lecturers for training of employees
Help?
25. Which job analysis method do you use?
Ranking method
Job classification
Any other method (name :……………….)
We don’t do job evaluation
26. Do you issue any diploma or certificate to trainees?
27. Does Haier Pakistan (Pvt) Ltd has its own training center?
EMPLOYEES SAFETY, HEALTH & WELFARE
28. What types of services are given to employees?
29. In case of health facility how many allowances you give to employees?
30. In case of any employee’s death, how much you give to his family?
Hailey College of Banking & Finance
8
31. Is any outside medical facility allowed to employees?
32. In case of welfare what facilities are given to employees?
33. What is manpower planning?
34. Why manpower planning is necessary?
35. In Haier what is the role of manpower planning?
36. What is the maximum age of employee to earn salary in the
Organization?
37. Do tasks are given to employees at the start of year? If yes then how
they evaluate it?
SALARY ADMINISTRATION
38. What is your minimum salary?
39. When salaries are paid to employees?
40. Is there separate salary department?
41. What steps you take to make your salary equitable for employees?
42. What is base of your compensation to employees?
43. Do you pay salary by cheque or cash?
INDUSTRIAL RELATION
44. Do you feel that industrial relationship is important?
45. Do you have international industrial relationship?
46. What is your practice to improve industrial relationship?
47. Is there any department for improvement of industrial relationship?
SYSTEM OF COMMUNICATION
Hailey College of Banking & Finance
9
48. What is the system of communication in Haier?
49. Are you agree with the current system of communication.
50. What are the tools, you use in internal communication?
51. What are the tools, you use in external communication?
52. How do you communicate with your foreign branches?
53. Are you using any intranet?
NEGOTIATING WITH UNION
54. Is there any Union in your organization?
55. How do you manage unions and there problems?
56. Did HAIER face any Strike in his life?
57. What are the main points of dispute between you and union?
58. Do you take unions seriously?
59. In your view, is union healthful for the company?
TERMS & CONDITIONS OF EMPLOYMENT
60. Do you recruit on temporary basis?
61. Has your organization ever gone for Downsizing or Rightsizing?
62. Do you recruit on contract or permanent bases?
63. Is there any quota system?
64. Is there promotion criteria based on seniority or talent?
Hailey College of Banking & Finance
10
65. Why skilled people are required for job?
RANGE OF PRODUCTS
Presently the company is engaged in the manufacturing the following products:
REFRIGERATORS
AIR CONDITIONER
WASHING MACHINES
TELEVISIONS
HOME THEATRE SYSTEMS
DVD PLAYERS
COMPUTERS
WATER HEATERS
Hailey College of Banking & Finance
11
REFRIGERATORS
FEATURES
Super Space-Super Design
Infinite Freedom
Automatic Ice Maker
Three dimension double air
Full width box
Sectioned and lengthened slide way
A Class
AIR CONDITIONERS
FEATURES
Powerful cooling and Fresh Air
Energy Saver
Luxury Appearance
Stylish Panel Opening
Double Condenser
International Brand Compressor
Auto Restart
Cooling & Heating Models
Hailey College of Banking & Finance
12
Quite Operation
Sleep mode
3 minutes protection
180° Air Swing
WASHING MACHINES
FEATURES
10 minutes spin
Foam-removing spinning
Transparent view
Window design
Outer and inner lids
Big cubage
Saving space
TELEVISIONS
Hailey College of Banking & Finance
13
FEATURES
DNR (digital noise reduction)
Black and silver color
218 Channels Preset
Calendar, Child Lock
Game
Multiple Picture & Sound Modes
DVD terminal
DIVISIONS OF HAIER PAKISTAN (Pvt) LTD
HAIER is mainly divided into two divisions.
a)
Power Division
b)
Appliance Division
a)
Power Division
Power Division is engaged in the production of Water Heaters, Energy
Savers and DVD Players. The main buyer of these products is government. The
HAIER power equipment was chosen for vital projects.
b)
Appliance Division
Hailey College of Banking & Finance
14
The products manufactured in Appliance Division are Air conditioners,
Deep freezers, Television, Refrigerators etc
Air conditioners and deep freezers are made at Raiwind Road Lahore,
while Refrigerators and Televisions are assembled in Lahore and Karachi.
REGISTERED OFFICE
8th Floor, Mega Tower, Main Boulevard, Gulberg II, Lahore.
UAN- 111-434-737
PH # 042-35851786-89
WORKS
18 k.m Raiwind Road, Lahore .
Hailey College of Banking & Finance
15
HUMAN RESOURCE MANAGEMENT
“The
process
of
attracting,
developing and maintaining a
talented
and
workforce
organisational
to
energetic
support
mission,
objectives and strategies.”
Hailey College of Banking & Finance
16
HRM OF HAIER PAKISTAN (Pvt) LTD
We have acknowledged the importance of human resource development. In
HAIER, Merit selection, improved compensation, training and accountability
at each level are being introduced to increase motivation and productivity,
which in turn leads to development of the quality personnel with leadership,
attributes to face the challenges ahead. The management of the organization
has been further strengthened through recruitment of managers with proven
professional records and market credibility.
“We have studied the Human resource department of HAIER PAKISTAN (Pvt)
LTD thoroughly. HAIER considers its human resource as an asset of the
organization and manages it according to the needs of the modern era.”
1.
RECRUITMENT AND SELECTION
Recruitment is the process of searching for prospective employees
and stimulating them to apply for jobs in the organization.
RETENTION
Hailey College of Banking & Finance
17
ROLE OF HRD IN RECRUITMENT PROCESS
HRD of HAIER is responsible for designing the selection system and
managing its everyday operation. Human resource mangers in cooperation with
other managers largely set the overall strategy; they are likely to be influential
in deciding, e.g., whether the department should focus on choosing people who
are best qualified for current vacancies or for those who have the greatest long
term potential. The personnel managers also decide how the guidelines for
equal employment opportunities met and whether the company needs outside
legal assistance in formulating its affirmative action plan.
REQUIREMENTS
Following requirements are to be fulfilled on joining the company and
forwarded immediately to Human Resource Division for completion of
their record.
o Photocopy of National Identity Card.
o Photocopies of all academic certificate especially metric certificate.
o Photocopies of testimonials from previous employers.
o Duplicate copy of appointment letter duly signed by the employee in
acceptance of the terms and conditions embodied therein.
o Two recent passport size photographs.
RECRUITMENT PROCESS
Hailey College of Banking & Finance
18
Recruitment of employees, in general the sources of recruitment can be
classified into two types.
Internal Job Posting:
1.
Filling a job opening from within the firm has the advantages of
stimulating preparation for possible transfer, or promotion and increasing the
general level of morale.
Nomination by Employees Supervisor.
In year 2002, 1500 jobs were opened by employee supervisors out of
which approximately 85% were filled. 15 % were cancelled. And when HRD is
not satisfied with the nominations of supervisors, they disqualify all nominees
and ask management for permission to recruit from outside.
2.
External Job Posting:
HAIER also go to external sources for positions whose specification can
not beam by present personnel. HAIER uses following outside sources.
i)
Advertising:
Advertisement is carried out in various newspapers. More information
about the company and job specification is included in the ads.
ii)
Employment Agencies:
HAIER also utilizes private employment agencies which have qualified
employees and also they have specialized in various types of workers and job
e.g. sales office, execution or engineer.
iii)
Casual Applications:
Unsolicited applications both at the gate and through the mail constitute
a much used source of personnel recruitment. It has been developed through
Hailey College of Banking & Finance
19
provisions of attractive employment office facilities and prompt and
continuous replies to unsatisfied letters.
SELECTION PROCEDURE
In the hiring procedure in HAIER, following steps are taken to discover
significant information about an applicant.
1.
Call for application
2.
Preliminary interview
3.
Applications blank
4.
Check of References
5.
Psychological lest
6.
Employment interview
7.
Approval by the supervisor
8.
Physical examinations
9.
Induction or orientation
1)
Call For Application:
First of all, an ad is given in the newspaper for the vacancy.
2)
General Interview:
In this step, an idea of education and experience is obtained by asking
for the last grade finished in school and the names of jobs previously done. The
more obvious facts and impressions are of the type generally obtained in an
initial interview. Applicants are often asked why they are applying for a job in
HAIER.
Hailey College of Banking & Finance
20
3)
Application Form:
In HAIER factual information are to be obtained by means of an
application blank.
HAIER has established the selection of more stable employees to
decrease labor turnover. They have discovered and utilized the particular data
that devote stability facts relating to home ownership, marital status, age and
sex.
4)
Check of References:
The purposes of the reference check are to obtain information about past
behavior of applicants and to verify the accuracy of information given. HAIER
uses combination of letters and telephone calls, as a method of checking.
Reference includes only
o Dates of employment
o Job title
o Promotions and demotions
o Compensation
o Stated reason for termination.
5)
Psychological Test:
In HAIER, clericals jobs are subjected to the greatest amount of testing,
applicants for unskilled hourly jobs are tested least. The factors measured are
usually of the psychological type, such as ability to reason, capacity for
learning, temperament and specific aptitude.
Hailey College of Banking & Finance
21
Types of Psychological Tests:
Following types of tests are being used in HAIER to identify talents.
i)
Intelligence test:
ii)
Mechanical Aptitude test:
iii)
Clerical Aptitude Test:
6)
Approval by the Supervisor:
The Supervisor approves the candidates immediately after the
employment interview and the candidate is recruited after probationary period.
7)
Medical Examination:
The Medical test includes matching of an applicant's physical
capabilities to job. To ensure the applicant physical capabilities e.g. can the
applicant work standing up. And to protect the company against unwarranted
claims.
Questions to HAIER Officials
1. What is recruitment?
2. Why recruitment is necessary?
3. Whose responsibility to recruit the candidates?
4. Method of recruitment you follow?
5. Is reference count in recruiting?
6. Is background necessary for recruiting?
7. Why careful selecting is necessary?
8. Do you follow or have any selecting law or ordinance?
9. If selected employee does not work, as you like what you do?
10. Do you advertise your vacancy anywhere?
Hailey College of Banking & Finance
22
Haier Pakistan (Pvt) Ltd’s Practice
Recruitment refers the policies you need to carry out the people aspects of
your management. These policies include:
a) Conducting job analysis
b) Planning labor needs and recruiting job candidates
c) Selecting job candidates interviewing
d) Orienting and training new employees
Recruitment is necessary for HAIER because it is beneficial for the
company and it is one of the basic requirements of the organization. It is the
responsibility of Human Resource Department to conduct the job analysis and
recruit the candidates. HAIER follows both internal and external recruitment.
Internal recruitment is beneficent because there’s really no substitute for
knowing a candidate’s strengths and weaknesses. It is often there safer to
promote employees from within, since you’re likely to have a relatively
realistic view of the person’s skills than you would an outsider’s. Inside
candidates may also be more committed to the company. Morale may rise, to
the extent that employees see promotions as rewards for loyalty and
competence. Inside candidates may also require less orientation and training
than outsiders. So, HAIER prefers Inside Recruitment over Outside
Recruitment.
Skilled people are the need of HAIER because only skilled people have
the good performance. And Intelligence tests best screen out the employee’s
abilities and capabilities. In HAIER physical test is necessary for all the
candidates.
Careful selecting is necessary because if you hire wrong person it is a
burden for the organization. The cost of hiring wrong person is much more
than anything. So careful selecting is necessary so that right person for the
right job can be selected.
Hailey College of Banking & Finance
23
2.
Training
TRAINING AND DEVELOPMENT
is
the
systematic development of
the
attitude,
knowledge,
skill pattern required by a
person to perform a given
task or job adequately and
development is 'the growth
of the individual in terms of
ability, understanding and
awareness'.
Hailey College of Banking & Finance
24
ORIENTING AND TRAINING OF EMPLOYEES
Once employees are "on board" their personal growth and development
overtime become a major concern.
In HAIER both human resource directors and other managers play an
important role in the development of course programs. Human resource
directors have assumed leaders in developing such programs.
ORIENTATION OF NEW EMPLOYEES
After the selection of successful employees the first step is their
introduction to company policies, practices and benefits is an orientation
program. HAIER management as whose is initially interested in training and
educational programs in order to promote employment and utilize the talents of
its citizens.
The first step is usually conducted by the staff personnel unit. Subjects
covered include products of the company, employee benefits, salary schedules,
safety, probationary period, timed recording and absence, holidays equal
employment opportunity programs etc.
The second step of most organized induction program is performed by
the immediate supervisor. The inductee is introduced to fellow employees,
given a tour of the department, and informed about such details as locker and
rest rooms, supply procedures, hours of work overtime, call in procedures, rest
and lunch periods, and lunching facilities.
Step three follows up some week later. The interview, conducted by
either the supervisor or a personnel specialist is concerned with
1)
Employee satisfaction with the job and organization.
2)
Supervisor satisfaction with the employees.
HAIER is a multinational organization in which importance has been
given to training. The management considers the training as an "Investment in
Hailey College of Banking & Finance
25
their Asset". They believe that planed development programs will returns
values to the organization in terms of increased Productivity, high morale,
reduced costs and flexibility to adapt to changing external requirements.
TRAINING NEEDS ASSESSMENTS
In HAIER there are three level of analysis for determining the needs
training can fulfill.
1.
Organization analysis:
Focuses on identifying where within the organization training is needed.
2.
Operation analysis:
Attempts to identify the contents of training, what an employee must do
to perform competently.
3.
Individual Analysis:
Determines how well each employee is performing the task that make
up his or her job.
OPERATIVE TRAINING:
The development of operative calls for specific increased in skills and
knowledge to perform a particular job. In HAIER there are primarily two basic
methods in use.
1)
On The Job Training:
This method is most widely used and has the advantage of motivating the
trainee to learn. As the success of the system depends almost entirely upon the
immediate supervisor, the trainer, the personnel unit has a major responsibility
for making a good, effective reaches out of every supervisor.
Hailey College of Banking & Finance
26
2)
Off the Job Training:
There are three methods used in HAIER for Off the Job training
i)
Workers Training Program:
The main agenda of the program was to explore the hidden talent of
their worker and to make them aware of their own potentials. H.R Department
conducts the program in a very interesting and entertaining manner with the
help of IQ testing riddles and different games.
ii)
Special Courses:
The second system of conducting training may be classified by some as
education rather than training.
iii)
Skills training program:
The objective of the program is to convert their sales staff into technical sales
staff. Human Resource Departments presents on selling skills and technical
application knowledge.
iv)
Improvement
of
Educational
and
Technical
Qualifications:
The company adopts the policy of sending its employees for training
abroad. Apart from this, employees are sent to attend suitable training program
within Pakistan held by recognized institutions e.g. LUMS, IBA etc.
Employees who wish to improve their educational qualification by registering
in Diploma courses and degree courses are encouraged to do so.
Questions to HAIER Officials
1. What do you mean by training?
2. What is your training procedure?
3. Any Act, Law, or any prescribed method do you follow?
4. How do you Train your employees after selection?
Hailey College of Banking & Finance
27
5. Do you provide some special training for some special purposes?
6. Method of training you follows?
7. What types of trainee are working in company?
8. Do you hire any trainer or experts for lecturers for training of employees
Help?
9. Do you issue any diploma or certificate to trainees?
10. Does Haier Pakistan (Pvt) Ltd has its own training center?
3. EMPLOYEES’ SERVICES SAFETY,
HEALTH & WELFARE
Hailey College of Banking & Finance
28
To attract productive human resource and ensure positive
contribution to the organization's success, the company offers a variety of
facilities, benefits and welfare programs to its personnel.
Management at HAIER, in addition to giving basic pay to its
employees, also cares for many employer benefit schemes and programs e.g.
the distinction of large corporations only. Here are important mentions in this
respect.
BONUS:
In order to motivate the workers and get most out of them, incentives
and increments in salary are offered both to workers and officers. For this
purpose his performance is checked and if satisfactory he is given Bonus as in
addition to basic salary.
LEAVES:
HAIER allows its employees leaves with the one basic salary per year.
People are facilitated with 25 days leave per year, 10 sick leaves and 15 casual
leaves. Company has its own guest house in Murree and employees have
options
spend
to
one
week there
at company
expenses.
Hailey College of Banking & Finance
29
PROVIDENT FUND:
In case of provident fund, 5% contribution is made by employees and
10% by the employer.
MEDICAL FACILITY:
Employees earning Rs.7000 to 15000 per month have medical facility.
Those having salaries more than Rs.15000 per month are paid medical
allowances according to the medical facility availed.
UNIFORM FACILITY:
In HAIER, Workers are provided with two uniforms in a year.
PERFORMANCE APPRAISAL:
To boost the morale of employees, every year rewards are given to the
most regular person. A special performance award is also given.
LOANS:
Loan facility is also provided but it can be availed from the provident
fund of the employee, which is equal to 10%.
Hailey College of Banking & Finance
30
CANTEEN FACILITY:
The Management of HAIER believes that primary condition for good
health is nutritious food. So it is prepared under most hygienic conditions in
the company and is served at highly subsidized rates.
Questions to HAIER Officials
1. What types of services are given to employees?
2. In case of health facility how many allowances you give to employees?
3. In case of any employee’s death, how much you give to his family?
4. Is any outside medical facility allowed to employees?
5. In case of welfare what facilities are given to employees?
HAIER PAKISTAN (Pvt) LTD’S PRACTISE
In HAIER employees are provided with: -
Medical facility
Gratuity
Provident Fund
Conveyance Allowance
Outside medical facility is available for employees and they are paid at
actual basis. It means if an employee gets treatment from the authorized
hospital of the HAIER where it will bear all its expenditure incurred.
Hailey College of Banking & Finance
31
4.
MANPOWER PLANNING
To get maximum output from minimum input of human resource.
Manpower planning requires an assessment of present and future needs
of the organization to be compared with present resources and future
predicted resources, appropriate steps should be planned to bring demand
and supply into balance.
Overstaffing is wasteful and expensive, if sustained, and it is costly to
eliminate. Understaffing loses the business economies of scale and
specialization, orders, customers and profits.
In HAIER basic purpose for which HRD in relation to HRP serves are as
under:
1.
Balancing the cost between utilization of plant & manpower:
This theme involves comparing costs of these two resources in different
combinations and selecting the optimum.
2.
Determining recruitment needs:
It is an essential prerequisite to the process of recruitment. It means that
HRD unexpected shortages, wastage, blockages of unexpected shortages,
wastage, blockages in promotion flow and needless redundancies.
3.
Determining training needs:
HRD plans fundamental training programs for which it is necessary to
assess not only quantity but also quality in terms of the skills required by
HAIER.
Hailey College of Banking & Finance
32
4.
Management Development:
HRD provides succession of trained and experienced manager which is
essential to the effectiveness of the organization and this depends on accurate
information about present and future requirements in all management level in
HAIER.
A system of HRP in HAIER:
A system of HRP in HAIER has some specific points on which
company act.
1.
Defining or redefining organizational objectives.
2.
Determining and implementing the basic requirement to sound planning.
3.
Assessing future requirements to meet objectives.
4.
Assessing current resources and availability of resources in the future.
5.
Producing and implementing the plan in detail i.e balancing the forecast
for demand and supply related to short term and long term time.
6.
Monitoring system and amending as indicated.
EVALUATION OF HRD PERFORMANCE
HRD of HAIER is working very well. Such as planning, managing
people, resulting people, its objectives and its mission, guiding principle are
very good and helping in overall organization.
Managers of HRD are expected to organize and to be accountable for
the work of other people. In this process, managers act as employers as such
they create and sustain the employment relationships of their organizations.
The occupation of HRM specializes in technical skills of managing this
employment relationship. In the HAIER specialist management has engaged.
After we have seen how different models of personnel management have
developed, and it shall explore the interdependence between activities which
Hailey College of Banking & Finance
33
make up the personnel function of managements by looking at how these
activities interlock as a "System in form of HRD".
REASONS FOR HUMAN RESOURCE PLANNING
The formal personnel planning is essential for HAIER because it is
moderate to large in size, that experiences changes in technology, products,
markets and utilizes a lot of high talent personnel. Following are specific
reasons for which HAIER management is carrying on systematic human
resource planning.
1)
Future Personnel Needs:
2)
Coping with Change:
3)
High-Talent Personnel:
4)
Equal Employment Opportunity:
5)
Foundation for Personnel Functions:
THE PLANNING PROCESS:
Planning for human resources is tied in with overall HAIER long range
planning.
1)
GOALS AND PLANS OF ORGANIZATION:
Human resource planning is a part of overall strategic planning for
HAIER. A personnel vice-president and his staff cannot make useful plans for
period of one or three or five years, unless they have data on possible corporate
expansions new products, new plants, new markets and so on. Important steps
involved in overall planning for HAIER are:
Hailey College of Banking & Finance
34
1.
To analyze and evaluate environmental influence.
a)
Political trends and legislation which will have impact upon the
business.
b)
Economic conditions such as competition inflation, rate of
change in gross national product and unemployment level.
c)
Social trends in leisure time, consumer tastes, work values and
retirement.
d)
2.
Technological advances affecting enterprise.
To identify the values and aspirations of HAIERs directors and
executive.
3.
To identify and evaluate the internal strengths and weaknesses of the
enterprise.
4.
To develop a strategy which relates the strength of the company and
aspirations of executives with opportunities perceived in environment.
5.
To create specific enterprise objectives and plans for achieving these
objectives.
6.
To prepare plans for the functional areas of the business; production,
finance, marketing, research and development and personnel.
7.
To communicate with members of the organization and involve them in
planning process.
8.
To evaluate progress toward implementation of plans and take
corrective action where necessary.
PLANNING PERIOD:
The extent and rapidity of change in the forces affecting the business
determines the utility of forecasts into the future. HAIER's planning period is
Hailey College of Banking & Finance
35
from 3 years to 5 years. Period for three year is short range and of five years is
long range period.
2)
CURRENT HUMAN RESOURCE SITUATION:
This is also called a skills inventory or manpower information system. A
skill inventory consists of up-to date information regarding the qualifications
of the selected categories of personnel. The skills inventory has several
important uses.
1)
After preparing human resource forecast, HAIER compare, the number,
types and skills specified by forecast with the present baseline or current
position given by skill inventories to as ascertain what skills must be
developed from present personnel via training, up grading and special
development efforts.
2.
Other use is to identify talent within the organization for specific job
opening.
3.
An up to date skill inventory is valuable for the preparation of rosters of
qualified technical and managerial personnel.
4.
An inventory can be used in conjunction with an affirmative action
program to monitor progress toward meeting employment goals.
5.
And finally the existence of a skills inventory enhances the
opportunities for employees to satisfy their career through development
and promotion.
COMPUTERIZED SYSTEM:
HAIER along with manually prepared Human Resource Data card also
use computerized system to handle data. The computer can readily provide a
printout of the age distribution of all mangers by level, job, and department.
Hailey College of Banking & Finance
36
Questions to HAIER Officials
1. What is manpower planning?
2. Why manpower planning is necessary?
3. In Haier what is the role of manpower planning?
4. What is the maximum age of employee to earn salary in the
Organization?
5. Do tasks are given to employees at the start of year? If yes then how
they evaluate it?
HAIER PAKISTAN (PVT) LTD’s Practice
HAIER Officials said that manpower planning means to use the human
resource in such a way that we get maximum out put from minimum input of
human resource. They said that manpower planning is necessary to use human
resource economically and efficiently.
HAIER Officials told that manpower planning has improved the
working standard with economically and efficiently. Tasks are given to
employees at the start of fiscal year. At the end of fiscal year, these tasks are
evaluated by annual appraisal..
5. SALARY ADMINISTRATION
There is no doubt that motivation is the crux for good performance,
but there is no clear-cut answer to the question of how to motivate.
Money is a factor in motivating people and this section concentrates on
this. Reward systems are discussed in general and later in specifics in
terms of payment by results. Various schemes for financial motivation are
also described.
Hailey College of Banking & Finance
37
i)
In HAIER all confirmed employees are allowed annual increments.
ii)
If service is less than one year then increment is granted in proportion of
the length of service during the year.
iii)
Full normal increment is equal to the time scale of the grade in which
the concerned employee is placed.
iv)
An employee can only be promoted when there is a vacancy in the
higher cadre of the organizational chart or position in which he is
working is being upgraded.
v)
Promotion shall normally be considered at the time of granting the
increments i.e. at the end of June.
vi)
Up to supervisory level employees, General Manager concerned and
General Manager (P&A) shall decide.
vi)
In order to give importance to the event, the employee concerned shall
also be interviewed.
vii)
Merit shall be the only criteria for promotions. Seniority will be taken
into consideration only when every thing else is equal.
Questions to HAIER Officials
1. What is your minimum salary?
2. Is there separate salary department?
3. What steps you take to make your salary equitable for employees?
4. What is base of your compensation to employees?
5. Do you pay salary by cheque or cash?
Hailey College of Banking & Finance
38
HAIER PAKISTAN (PVT) LTD’s Practice
HAIER Officials said that their minimum salary in the organization is
about Rs. 7000. There is separate salary department, which do the job of salary
administration in HAIER.
HAIER takes many steps to make its salary equitable. Basically the
salary at HAIER is period based salary. If an employee works according to the
rules and regulations of the organization, they pay them very well.
6. INDUSTRIAL RELATION
The
purpose of industrial
relations is to ensure effective
communication between management and staff, to secure maximum
cooperation from staff, and to motivate staff to give their best by ensuring
that they feel fairly treated, understands the overall direction and values
of HAIER and those of their departments, and how decisions that affect
them have been reached.
DISPUTES IN ORGANIZATION
Sometimes the employees are not satisfied with their jobs and there are
some signs such as strikes, confrontation leading to lockouts and various forms
of withdrawal of cooperation by workers. But the typical conflicts which are
taking place in the organization are overtime bans, working to rules, refusal to
use new machinery have all seen in different sectors of HAIER.
Hailey College of Banking & Finance
39
ROLE OF HRD IN SOLVING DISPUTES
Different conflict resolution starts with a careful diagnosis of the causes
of the problem. And all the times HRD plays an important role in solving there
problems. It is then the responsibility of the manager of HRD to apply an
appropriate procedural, structural or personal solution or some combination
of all three. But the management of HAIER believes that resolving conflicts
will be his or her own attentiveness to adopt a pluralist stance, and the
interpersonal skills which he or she can bring to bear supplemented by -honesty and practicality. But HRD performs following chief roles.
Management communicates regularly and openly with staff;
Staff consults on matters that affect them;
Problems and disputes should be resolved through
discussion and consultation; and
Management devises and encourages activities that
contribute to staff's well being.
Questions to HAIER Officials
1. Do you feel that industrial relationship is important?
2. Do you have international industrial relationship?
3. What is your practice to improve industrial relationship?
4. Is there any department for improvement of industrial relationship?
HAIER PAKISTAN (PVT) LTD’s Practice
Good industrial relations, while a recognizable and legitimate objective
for an organization, are difficult to define since a good system of industrial
relations involves complex relationships between:
Hailey College of Banking & Finance
40
Workers (and their informal and formal groups, i. e. trade union,
organizations and their representatives);
Employers (and their managers and formal organizations like
trade and professional associations);
The government and legislation and government agencies and
'independent' agencies like the Advisory Conciliation and
Arbitration Service.
HAIER understand the importance of industrial relationship, so,
HAIER tries to make good relations with employees.
7. SYSTEM OF COMMUNICATION
Communication is a two-way process, for releasing staff's ideas,
energy and ambitions. Through communication, management helps staff
understand the mission, objectives and values of the department, and staff
can let management know their ideas and aspirations for giving their best.
Some specific communications objectives are:
Provide managers and staff with information to support
departmental budget decisions and workforce planning, including
context, benefits and challenges, training and technical
requirements, and implementation strategies.
Gather information on the campus’s business and training needs
at the appropriate times, to ensure that the system reflects those
needs to the greatest extent possible.
Encourage leadership and support from campus management.
Hailey College of Banking & Finance
41
Ensure that the various project staff and working groups receive
communication from project management and from each other.
Recognize the contributions and accomplishments of the many
participants in development and implementation.
Describe available resources and support for training, planning,
information, and assistance with change management.
1.
Direct Communication Policy:
HAIER
employees.
manager's
It
provides
door
is
always
continuous
open
invitation
to
for
employees to come in and talk about everything that is
troubling them.
2.
Effective communication:
In HAIER it can be judged with.
Informal discussion
Meeting with manager
Formal meeting
Questions to HAIEROfficials
5. What are the tools, you use in internal communication?
6. What are the tools, you use in external communication?
7. How do you communicate with your foreign branches?
8. Are you using any intranet?
Hailey College of Banking & Finance
42
HAIER PAKISTAN (PVT) LTD’s Practice
Good communication plays an essential role in the success of any
organization. HAIER uses all possible means of communication in its
operation.
In Internal communication they use: Telephone (mostly)
Fax
In External Communication they use: Written communication
Verbal communication
HAIER gives you direct access to a comprehensive range of better
facilities to help you monitor your business locally as well as internationally.
Hailey College of Banking & Finance
43
8. NEGOTIATING WITH UNION
UNION:
In HAIER, employees have a right to elect the Union on yearly basis.
The union includes one president, vice president, and general secretary and
finance secretary. It plays its part in all activities and arranges functions at
important occasions and negotiates with the management for employees
problems. All labor disputes are settled through the union.
Hailey College of Banking & Finance
44
Labor Laws:
Labor laws applicable in the country are also applied at HAIER. All
benefits imposed by the Government of Pakistan and Government of Punjab
are granted to employees.
Questions to HAIER Officials
1. Is there any Union in your organization?
2. How do you manage unions and there problems?
3. Did HAIER face any Strike in his life?
4. What are the main points of dispute between you and union?
5. Do you take unions seriously?
6. In your view, is union healthful for the company?
HAIER PAKISTAN (PVT) LTD’s Practice
HAIER has a very strong Union. HAIER management manages the
unions and problems by holding meetings with unions and discusses various
problems.
HAIER faced a strike in 2008 because the workers wanted increment in
their pay but they did not have it. So, workers went on strike. Then
management took a serious notice of this strike and went into negotiation with
union of the workers and settled the issue.
Hailey College of Banking & Finance
45
These are the main points between HAIER management and Union: Salary
Various benefits
Promotion
All other staff related problems
HAIER takes union very seriously because they found very hard to manage
the strike. HAIER has a good reputation in the Market, so the management
does not want to lose this reputation by union problems.
Human Resource Manager said that in his own view Union is healthful for
the company because management cannot go against the benefits of the
employees due to Union’s pressure.
9. TERMS & CONDITIONS OF
EMPLOYMENT
Productive human resource management in esteem organizations requires
two important foundations between the employee and organization terms and conditions of employment and a position description.
Hailey College of Banking & Finance
46
The term `employee' is used in the rules, regulations and covers all nonunionized employees i.e. Junior Officer up to Managing Director
The company reserves the right in its discretion to modify, alter or
discontinue any rule, regulation or plan.
1. LEGISLATION FULFILMENT
All the legislations (which are followed by the organization)
should be taken into consideration while recruiting.
2. EMPLOYEES’ PERSONEL NUMBER & IDENTITY CARD
All the employees will be allocated their personnel numbers and the
Company will also issue a Company Identity Card to each employee. In
case, card is lost, the matter should be reported to Human Resource
Division immediately and a duplicate will be issued.
3. PROBATIONARY PERIOD
During this period, the employee will not be entitled to avail any leave,
benefits of the medical scheme, and coverage under Group insurance Policy
and member ship of the Provident and Gratuity Funds except coverage
under the Accident Insurance Policy.
4. WRITTEN EMPLOYMENT CONTRACT
The employee should consider developing a written employment
Hailey College of Banking & Finance
47
Contract, which sets out any additional terms and conditions of
employment, which are applicable to the organization.
5. DUTIES & RESPONSIBILITIES
An employee shall devote the whole of his time to the business of the
Company and not be engaged, interested or concerned with any other business
or commercial activity of any kind whatsoever, whether directly or indirectly
without the prior written consent of the Company.
6.
COMPENSATION AND BENEFITS
On the successful completion of the probationary period an employee's
services will be confirmed in writing and then an employee will be entitled to
avail benefits of Medical scheme, Leave Entitlements, Coverage under Group
Life Insurance, Membership of Provident Fund, Gratuity Fund, Pension Fund.
7.
SALARIES, INCREMENTS AND PROMOTIONS
Salaries are disbursed to all employees on the 26th of the month or, if a
holiday, the next working day.
Salaries are remitted directly to the Bank Account and it is therefore necessary
that details of Name, Account Number, Branch and Place should be intimated
to H.R.D/S.P.C. on joining or if any change occurs.
8.
LEAVE ENTITLEMENTS & RULES
All confirmed employees are entitled to leave according to the rules and
regulations stated below:
i.
CASUAL LEAVE
Hailey College of Banking & Finance
48
RULES:
Casual leave may be allowed to be availed at one time for a maximum
of 3 days and shall not normally be combined with any other leave,
holidays and /or public holidays.
Causal leave shall not be accumulated and carried forward beyond a
calendar year.
ii.
SICK LEAVE
Entitlement is 14 calendar days in a year and shall not exceed 21 days.
RULES
Any application for sick Leave which exceeds 3 days should be
supported by a medical certificate from a registered practitioner.
Company Doctor will examine the employee and his advice shall be
final, for the purpose of granting leave to the employee.
iii.
PRIVILEGE LEAVE
The P/L entitlement for all employees is as follow:
RULES
a)
An application for P/L shall be submitted to the Human Resource
Division duly recommended by the concerned Superior, a minimum of
14 days before commencement of leave.
b)
A minimum of 2 weeks P/L pertaining to one year has to be availed in
order to receive Leave fare Assistance for the year.
c)
If privilege leave is cut short by any employee on his own accord, a note
should be sent to Human Resource Division immediately on resumption
of duty for adjustment of leave.
d)
Prefix and suffix of weekly/gazette/other holidays to Privilege Leave
will be allowed and as such will not be counted as Privilege Leave.
Hailey College of Banking & Finance
49
e)
The management reserves the right to refuse any leave if the exigencies
of business so require.
iv.
MATERNITY LEAVE
Maternity Leave will be allowed to the concerned employee for a period
of 12 weeks (85 Calendar days) for each case.
Application for the period of leave should be submitted well in advance.
9.
TRAVELLING SCHEME
A travelling advance may also be taken by the concerned employee
keeping in mind, the entitlement and the length of stay planned. For this
purpose an advance form may be filled in, recommended by the
Division/Department Head and forwarded to Human Resource Division for
approval.
10.
FOREIGN TRAVEL
In case of foreign travel, rules and regulations of the State Bank of
Pakistan will apply. Claims can be made according to the Daily allowance
prescribed for different countries by our principals.
11.
MEDICAL FITNESS PROGRAMME
The Company has a medical fitness programme whereby one in 3 years
each employee will undergo a complete examination at company's expense on
a schedule given by the company at specified clinics.
HOSPITALIZATION
Hailey College of Banking & Finance
50
In those cases where admittance to hospital is required total
hospitalization expenses, which include Doctor's fees, X-Ray charges,
Medicines, Laboratory charges etc., will be reimbursed by the company at its
description against proper receipts.
12.
INSURANCE PLAN
The company has made arrangements to provide adequate 24 hour
insurance coverage of all its employees in case of death or permanent disability
while at work or traveling or at home.
13.
SERVICE AWARDS
In recognition of loyal service, the company gives service awards to the
employees as follows:
1)
Silver Plate: On completion of 10 years continuous service an engraved
silver plate or a gold ring is presented to the employee.
2)
Gold Medal: On completion of 20 years continuous service a Gold
Medal is presented to the employee.
Questions to HAIER Officials
1. Do you recruit on temporary basis?
2. Has your organization ever gone for Downsizing or Rightsizing?
3. Do you recruit on contract or permanent bases?
4. Is there any quota system?
5. Is there promotion criteria based on seniority or talent?
Hailey College of Banking & Finance
51
6. Why skilled people are required for job?
HAIER PAKISTAN (PVT) LTD’s Practice
HAIER recruits persons temporarily for temporary purposes. HAIER
also recruits on contractual and permanent basis as the requirement of the
organization. There is no quota system in the recruitment Haier. It means that
organization can hire any appropriate person from the candidates without
taking any quota into consideration.
9. SYSTEM OF ISLAMIC FRAMEWORK
Although Haier Pakistan (Pvt) Ltd is a company from a Non-Muslim
country. However being their setup in Pakistan (an Islamic country ), they have
to follow the Islamic principles. So the administration of Haier Pakistan (Pvt)
Ltd is following Islamic principles relating to labor and employees.
Following are the facilities which are provided to Muslim employee for
offering their Islamic responsibilities.
Employees enjoy freedom governing the values of Islam.
Employees work within the limitations of Islam
Namaz Break
Fund for UMRA
Hailey College of Banking & Finance
52
Leaves for Umra & Hajj
Food Package in Ramadan
Special Bonuses on Eids
Contribution in Marriages of Employee
Special Dowry packages for Low Grade Employees
CONCLUSION
*
The organizational structure of the company shows that the top
management is centralized as compared to middle and lower
management. The decision making is done at top level and the decisions
are enforced down the middle and lower management.
*
The management is bureaucratic in nature. The authority increases as
we go up the hierarchy. Selection of members is based on their
qualifications and the requirement of the position determines who shall
be employed in what position.
*
The organizational structure is not tall but flat. Due to flat structure span
of command is large.
*
The organization's objectives are clearly communicated to each
employee through MBO program. This helps the employees to engage
Hailey College of Banking & Finance
53
themselves in those activities which lead towards achievement of
objectives.
*
Top administrators ensure that every decision can be attributed to
someone. If some body is given responsibility and authority he is also
held accountable.
*
The management audit is conducted after every six months which
considers
policies,
organization
operating
methods,
financial
procedures, personnel practices, physical facilities and over all
organization's condition. The information generated from this audit
assist top executive in ensuring that current policies and procedures
relate to the over all objective of the organization.
*
The management is doing a great job in dealing with workers' union.
Management has good relationships with workers' union. The
management tries to meet as many demands of union as possible. If they
cannot they do every thing possible that workers union should be
satisfied.
PROBLEMS AND RECOMMENDATIONS
Management is responsible for planning, organizing, coordinating and
controlling. A strong management is the back bone of a successful
organization. HAIER has been a successful company in the industrial sector of
Pakistan. No doubt the management of HAIER has played its role in the
success of the organization. The conclusions, problems and recommendations
about the management of the company are as follows:
Hailey College of Banking & Finance
54
PROBLEMS
*
As company's organizational structure is centralized at top level, it is
causing an imbalance between responsibilities and authorities in the
lower portion of administrative span.
*
There are not many career opportunities in the organization. Jobs which
are available are not very challenging. Although the company offers
substantial monetary rewards but these rewards do not make the jobs
challenging.
*
No training system is present in the company. The employees learn only
through experience.
*
The promotion system is based on age and experience and not on
performance. This is a big reason due to which employees feel
dissatisfied with their jobs.
*
Centralized structure has blocked the way for unique and creative
decision in middle and lower administration. They are used to taking
orders as decisions are only taken by top management.
RECOMMENDATIONS
*
Organizational structure should be decentralized. This will solve the
problem of imbalance in the responsibilities and authorities of lower
administration. This way lower and middle administrator can be made
responsible and authoritative and at the same time would be held
accountable. This will also enable them to make unique and creative
decisions.
Hailey College of Banking & Finance
55
*
HAIER has recently adopted MBO. This will not only enable the
company to make the jobs challenging but also involve the employees to
take part in setting their objectives.
*
The company should have an in-house training system. This would
enable the employees to keep in touch with latest development in their
field. Also the company should send able employees on courses in
different institutes.
Hailey College of Banking & Finance
56
