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Report on human resource management in international textile ltd business essay

BACKGROUND OF THE SUBJECT AND STATEMENT OF THE PROBLEM

INTRODUCTION

People are definitely companys greatest assets. It doesnt make a difference weather the product is cars or cosmetics. A company is as good as the people keep it.

Peter F. Drucker

Human Resource Management in today’s competitive world can be described as strategic and effective management of company’s sustainable competitive edge and its most valuable asset, its employees, whose individual and joint efforts lead to achievement of organization’s objectives and strategic goals. This organizational function focuses on all activities and decisions that in any way affect the human resource of the organization (al, 1984)

In today’s world, HRM is about maintenance of complete set of KSA in form of employees that are required by a company to maintain its edge in the market. (Whip and pettigrew, 1991). Beyond simple payroll management, it involves concern for development and retention of talent on a much broader horizon which can only be achieved through a coherent HRM philosophy .

There is mounting support to the that human resources are crucial to success of an organization and a source of sustainable competitive advantage thus offering the best return on investment (Luthans and Yousef, 2004). Paying consideration to the mounting importance of human resource and its effective management in today’s world, this study is focused on identification of problems in human resource management at International Textile Limited.. The study will also shed some light on how the Human Resource department at ITL ,in particular, can benefit from emergent approaches of HRM to attract, retain, develop, and motivate the talent and solve the identified problems. However, other organization’s of similar characteristics may also benefit from the findings of the study.

There has been considerable research in with focus on attraction, motivation, and retention of human resource or the new era knowledge workers (Horwitz et al., 2003; Horwitz et al., 2006; Baron et al., 2001; Evans et al., 2002). Studies on attraction and retention of skilled as well as young professionals have concluded the so called best-practices in the context to be high pay-offs, increased autonomy, attractive job designs and flexible work hours. (Olson, 2003; Stovel and Bontis, 2002). Every firm wants to employee the best in the market and maximize their output. In this urge to hire the best handsome monetary packages are offered to pull staff from competition to have high performers working for them. Such practices have resulted in unprecedented job switches. Sidewise, the trend of layoff and downsizing has exacerbated the situation by increasing the uncertainty regarding job security in minds of employees and reducing the organizational loyalty to new lows. Thus, as described by many scholars, there is a “war-for-talent” (Hargie, 2004; Michaels et al., 2001).

A study of McKinsey & Company consultants revealed that the “war for talent” is a imperative driver of corporate performance in today’s scenario and a very influential strategic business challenge (see Michaels et al., 2001). They found that a pervasive talent mindset was secret of high-performing organizations. They believed in better-quality talent and its best handling as their competitive advantage. It is this challenge that is hurting the low or average performing companies the most because in this war as they are either unable at attracting the right talent or fail to relish and leverage it when they incidentally get it. War-for-talent has not only emerged as one of the major challenges of contemporary business world, but fighting and winning over talent to utilize it as an edge in competition is up-and-coming as core strategy of many high performing and rapidly growing organizations.

INDUSTRY INTRODUCTION

The textile industry is one of the most important sectors of Pakistan. It contributes to the country’s GDP, exports as well as employment. It is, infact, the backbone of the Pakistani economy. Textile industry has the highest potential for giving a boom to Pakistani exports. Apart from its basic role of clothing the nation and alongside being the source of largest foreign exchange earning through exportable items, the key to company’s future growth and industrial expansion lies within this industry.

Important Facts

Textile products are a basic human requirement next only to food

. 4th largest Producer of Cotton

. 3rd largest Exporter of raw cotton

. A leading Exporter of yarn in the World

. Availability of cheap labor and basic raw cotton

COMPANY INTRODUCTION

INTERNATIONAL TEXTILE LTD

International Textile Limited is a family owned business which was started by Mr. Azad Khan in 1970. ITL started off as a commercial exporter of towel and has now expanded into other areas of textiles with its own manufacturing base. ITL’s annual turnover is more than US $ 60 million. Armed with 36 years of experience, it has learned the hard way to stay in business by working effortlessly and looking out for our customers’ needs.

International Textile Ltd. product portfolio includes the following list of items:

Yarn –Towels- Fabrics- Kitchen range Blankets-Institutional/hospitality products

Manufacturing facilities:  ITL has two facilities situated at Korangi – Unit 1 and Unit 2 and a Head office at Park towers.

Customer profile: International Textile Ltd caters to a wide market from USA, UK, Europe – Australia and some parts of Asia as well.

CORPORATE STATEMENT

To achieve the status of a premier textile company that promotes excellence and creativity is the fundamental objective of ITL.

As an organization, ITL strives to attain leadership in the world of textile industry by ensuring the production of goods to satisfy its consumers at all levels.

ITL is committed to follow a strict code of ethics and morality in business in order to become a model of good corporate citizenship.

To create a work environment that is free from prejudices of caste and color provides its employees ample opportunities for development.

Achieve excellence in being the best supplier and manufacturer in the market and achieve growth by making use of the opportunities and by utilizing our strengths and proficiencies.

Acquire a team that comprises of hard working and sincere individuals whose top priority is to abide by their pledges.

WORKING ENVIRONMENT

It is because of excellent teamwork, trusted employees and hardworking individuals who work as a team that International Textile Limited manages to weave out world-class fabrics on traditional and non-traditional patterns. We maintain a working environment in which innovation and action ensure the highest level of quality. The skills of our artists help us present the very best to the demanding-yet-content public, both locally and internationally!

The secret behind every success is the binding force of professionalism. The Human Resource Department of International Textile maintains that very blend by engaging the highly skilled individuals available.

The Players, as we call them, come to our organization with the frame of mind that maximum utilization of their professional skills to make company grow. This not only triggers a competition within the players but also lets it help the company in particular!

Nothing works better than having a positive attitude, at International Textile Limited, you will find positive attitude in abundance since we believe that the happy the Players, the better the product. We show loyalty to our workers and always give credit to the team. We provide them equal opportunity to serve and carve a niche for themselves and it all makes them as ITL family and that makes ITL a caring organization.

STATEMENT OF THE PROBLEM

“Human Resource Management problems at International Textile Limited”

SIGNIFICANCE OF THE STUDY

This study helped the researcher expand her horizon and give her an insight into ITL and thus the textile industry. It will also increase her knowledge regarding the problems faced by employees in practical scenarios and how theory can be applied as solution.

This research paper will guide the manufacturing company i.e. International Textile Limited (ITL) in understanding its human resource problems better and suggestions to overcome those problems. In general, companies of similar characteristics can also get some insight into the problem areas that might surface later within their organizations and be proactive at handling them .This study will be an important document for general reading regarding the subject as there is not much research material available on HR practices in Pakistan.

Also, it would provide an opportunity for students to match the theory with practice.

SCOPE OF THE STUDY

The data used for the study covers a snapshot of the present HR Scenario and conditions and was collected at one point in time from a sample which represents the population. Respondents may not be honest or reluctant at providing the correct information or the average rating syndrome my effect. The researcher may not be able to create a perfect questionnaire covering all the important aspects of the study.

DELIMITATIONS OF THE STUDY

Certain assumptions have been taken in this study which may change in the future. These include factors like political stability, government’s lack of interference, and the quality criteria that have been used.

RATIONALE

The main purpose of undertaking this research is to try to find out the problems in the human resource management, which the researcher believes, is vital for success of any company and overcoming those problems should be prioritized. These days, it is becoming very important for organizations to improve the aspects related to employee satisfaction and retention of good talent.

OBJECTIVES OF THE STUDY

This study has the following objectives:

What are the problems in HRM in the organization?

What is the impact of these problems on the employees?

Why do the problems occur?

How can the problems be solved?

CHAPTER # 2

REVIEW OF RELATED LITERATURE & STUDIES

RELATED LITERATURE

The researcher has found the following literary review related to the topic of the thesis:

LOCAL LITERATURE

HR IN PAKISTAN

This article is written by an HR professional who has worked in HR department of various private companies over the past 5 years. In this article the author has elaborated on views about HR departments in the country. She explains how HR department is still a misunderstood department. The major reason for this begins at the top because the top management and owners of private firms who start HR departments in their organizations are themselves not aware of the importance of efficient HR practices. Mostly the top management expects that by creating an HR department all problems will be gone. This confusion starting from the top ultimately leads to the feeling among the employees and management that HR is reducing their authority and thus creates conflict. This feeling of being unwelcomed by the employees and pressure of top management diverts focus of HR people and lead them to confusion and thus improper HR operations (LadY, 2008).

HUMAN RESOURCE MANAGEMENT IN PAKISTAN HAS MANY FACET, CLAIM SOME OF THE TOP HR MANAGERS IN PAKISTAN

In this article views of various HR Managers of Pakistan have been presented regarding the HR practices in country. According to those views, HR departments in Pakistani organizations have evolved from administration department. This evolution and some understanding regarding the functions of HR department has grown due to the adoption of HRM by the multinationals coming to pakistan. As compared to internatonal scenario, HRM in Pakistan is still at immaturity. For HRM practices to benefit, it requires joint effort of all three parties; sincere efforts of professionals in HR department, realization of the company that its employees are its most valuable asset and loyalty and dedication of employees towards their jobs

The elongating work hours within Pakistani corporate culture is increasing the need of an effective HR department. Required is a department that not only works as a bridge between the employees and management but also goes an extra mile to give a feeling of care to its employees. (ROZEE PK)

HUMAN RESOURCE ISSUES IN PAKISTAN

In this article the author exclaims that the unprofessional and mal practices of HR departments in Pakistan have lead to generation of qualified but unskilled employees leading to unproductive organizations. If we analyze HR department issues , problems will be identified in management of al functions of HRM discipline. Some major problems include improper recruitment, wrong employment leading to no respect of job by the incumbent, personal interests obstruct organizations interests, leadership quality is poor, innovation and diversity is discouraged, the general behavior is passive , there are not many opportunities, no motivation, improper performance management systems, pay for performance is missing, communication problems , centralized decision making, shortsightedness and lack of vision of the top management (Ahmed)

PROMOTE WORK-LIFE BALANCE THROUGH EMPLOYEE ASSISTANCE PROGRAMME

The author explains that in order to have a progressive organization, the employer needs to create a respectful workplace and have healthy employees, which is achieved when employees are mentally and emotionally stable. Healthy employees lead to increase in productivity, better quality of output and creativity (NAYANI.)

BALANCE BETWEEN WORK AND FAMILY OR PERSONAL LIFE.

The study reveals that one-forth of the wok-force in Pakistan, especially Karachi, rate there job as biggest stressor in their lives. Employees rate their design of task, a lot of work, small and improper rest breaks, long shifts and lack of depth and control of the job performed as some of the causes of stress . Centralized decision making management style along with absence of employee-friendly policies also add to dissatisfaction and stress in work places. Employees feel that the management has given them unrealistic targets to achieve, also that they are uncertain of their job responsibilities and are provided with improper working environment (PPI, 2010 ).

FOREIGN LITERATURE

HUMAN RESOURCES EXCELLENCE: OPTIMIZING EMPLOYEE POTENTIAL THROUGH HR DEPARTMENT EFFICIENCY.

Author explains that considering the importance of human resource asset , aligning the human resource departmental goals with that of organization are of utmost importance. Innovative Human Resource practices application has been proved among best practices of top performing companies and an important driver towards productivity gains in business. Efficient HR practices include recruitment and selection of best employees, having strategically directed development programs, creative compensation and recognition programs."Any company's performance lies in the hands of its people," said Chris Bogan, president and CEO of Best Practices, LLC. "Investing in human resources development allows a company to continuously drive productivity and profits. (Business Wire, 2003)

WHAT ARE THE MOST COMMON WORKPLACE ISSUES

The author explains that improper communication between employees and there managers is the most common workplace issue and needs to be addressed on regular basis as it has vital effects on both parties and job performance. Team meeting and creation of respectful work environment can help coping up with this issue. (2010)

EMPLOYEE DE-MOTIVATION – CAUSES AND SOLUTIONS!

Employee dissatisfaction and de-motivation is a common workplace issue and very contagious in work environments where it is not taken care of instantly. Constant cribbing of one employee may lead to de-motivation of others. The effect of lack of motivation is directly upon job performance and productivity, therefore, immediate tackling of this issue is important. To tackle such situation effectively , an organization must understand the root cause behind the lackluster attitude and find out way to create positive attitude in the employees (Zaineb, 2010 ).

SO IS PAY REALLY A MOTIVATOR?

Compensation is considered as a motivator, but without a solid strategy which is applied consistently ,the compensation can become a de-motivator. This area needs consistent focus because the reality of compensation is much more complex than the theory (OCT2010).

CHAPTER # 3

THE RESEARCH METHODOLOGY

INTRODUCTION TO THE CHAPTER

“People don’t usually do research the way the people who write books about research say that people do research” Bachrach (1981) as quoted by Dane (1990: 201)

In this section the research process used for the purpose will be explained. The research design, respondents of the study, research instruments used, sources of data, data analysis methods

THE RESEARCH & ANALYSIS PROCESS

The research study conducted is exploratory in nature. The whole process has been divided into three distinct parts:

PART I – RESEARCH DESIGN

In step one; different problems and issues of the Human resource at International Textile Ltd will be identified using “SURVEY RESEARCH DESIGN”. Along with using survey research design, various secondary data sources will also be used to get an insight into the processes.

PART II – ANALYSIS OF COLLECTED DATA

The data collected through survey research and through secondary sources will be analyzed to generate list of major problems faced by the organization Human resource and get to the causes of the problems.

PART III – SOLUTIONS AND RECOMMENDATIONS

After an in-depth analysis, the next step will be as follows:

Identifying options for solutions (As per class lectures and notes)

Recommended solution

RESEARCH DESIGN

The “Survey Research Design” will be used for data collection. I choose this method to benefit from the uniqueness of the information that I will not be able to get from any other available source / secondary sources. Also the standardization of measurement will give reliability to the analysis and the information collected will help compliment the data collected from secondary sources.

QUALITATIVE RESEARCH

The survey based research is will be of qualitative dialect and condenses the study to the following:

Research questions

What are the problems in HR in the organization?

What is the impact of these problems on the employees?

Why do the problems occur?

How can the problems be solved?

EXPLORATORY & DESCRIPTIVE STUDY:

The research is an exploratory study since the main task or research objective is to find out what problems exist among the Human Resource department, management, and employees. The exploratory study precedes a descriptive study in the given case. It’s descriptive in the sense that it finds out what are the problems? The sources of the problems are also to be identified in the process. It also covers the various aspects of how these problems effect the employees negatively and the sources of generation.

CROSS-SECTIONAL STUDY:

The time dimension and sample design of the study is cross-sectional in nature .It just covers a snapshot of the present HR Scenario and conditions and was collected at one point in time from a sample which represents the population.

POPULATION AND SAMPLING:

Population: Current employees

HR department

Sampling method: Convenience sampling; Non-Probability Sampling

METHOD OF DATA COLLECTION:

Interrogation: In order to find the answers to the above mentioned research questions the method of questioning was carried out; a certain set of convenience sample was selected from the organization based on various department employees.

Survey & Interview: Survey forms were distributed (15 in total) and the HR department manager and HR Executive were interviewed for in-depth analysis of problems and causes.

TOPICAL SCOPE:

Case: We are not interested in the entire population rather our selected sample of a single organization and its single case.

RESEARCH ENVIRONMENT:

Field setting: The research is being carried out in a very real environment where no manipulation, simulation or replication of environment is possible. The company is itself an everyday real routine based organization.

PARTICIPANT’S PERCEPTION:

Actual routine

RESEARCH INSTRUMENTS

The primary data collection of this research is conducted through the following instruments:

INTERVIEWS

Interviews were conducted with employees in HR department to get an in-depth analysis of their observations and findings with regard to the research questions. The interview was unstructured and in-formal in nature. The informal aspects lead to revealing of inside information and personal comments of the interviewees along with the sugar coated professional answers and descriptions

SURVEY FORMS

Questionnaire were distributed among a selected sample of employees. Closed ended questions for the questionnaire were taken to reduce the inconvenience of respondents.

SOURCES OF DATA:

Basically primary data was used for this study which was collected through the above mentioned techniques. Secondary data such as company website content, company manuals, job descriptions and SOPs were also reviewed and used where required.

ANALYSIS

The data collected through the interviews and survey forms was analysed using the following:

Fishbone Analysis

Graphical analysis (Pie and bar charts)

Employee survey

RESEARCH PROCESS

 

Research/ Data collected/ discussion with HR personnel

Graphical analysis

Problem Identification

Solutions and Recommendations

Fish bone analysis

Interview Questionnaire

HR concepts as per theory taught in lectures

PHASE II

Recommendations/Solutions

PHASE I

Problem Identification and Analysis

CHAPTER # 4

PRESENTATION ANALYSIS

CHAPTER INTRODUCTION

This chapter will provide information on the following areas:

Description of HR Department at ITL based on facts and data collected from primary sources such as interview with employees in HR department and secondary sources such as company website and HR manual. Weak and strong areas will also be enlisted.

Analysis of the data collected through primary sources. Listing HR problems in different areas along with data for supporting their existence. Analysis of the root causes of the problems and finding some insight into the problem solutions.

Summary and list of problems as analyzed from fishbone and survey analysis.

HUMAN RESOURCE DEPARTMENT IN ITL

Human Resource Department has been effectively working in International Textile Ltd right from the beginning of its foundation. The CE Mr. Azad Khan considers Humans as the most important asset for the company. A beneficiary policy of not firing employees even when their service levels drop or they are no more required – has led ITL a good name in the industry. ITL has never exercised forced Employments and has always offered better compensations and rewards in order to maintain its efficient pool of Productive workers. At times employees who have left the organization have also been re-welcomed with better packages and working incentives.

CORPRATE STRATEGY AND HR STRATEGY

CORPORATE STRATEGY

To encourage excellence , Inspire creativity, be the premier textile company with leadership position with respect to market share and corporate image

Product quality, customer satisfaction, commitment to strong code of company. Widely profound ethics and model of good corporate citizenship

Attract, Develop and retain diverse and high caliber employees

Operate safe workplace and environment. Add value to the society

HUMAN RESOURCE STRATEGY

Envision our customer:

Customer is the highest priority having unique needs that drives our performance

Involving the customer in our HR planning assessment

Envision ourselves (Human Resource)

To recruit and be flexible; creative problem solvers

Advocate and champion textile climate and foster performance excellence by full participation and aid in personal and organizational growth

HR FUNCTIONS/COMPONENTS IN ITL

Human resource planning is designed to ensure the future personnel needs will be constantly and appropriately met.

Recruitment It is the process of locating, identifying, and attracting capable applicants. Both the HR department and the Department managers are actively involved in recruiting. The prospective candidate pools are :

Textile Universities/Institutes

Referrals

Competitor companies

Textile Industries

In-house capable employees

Retention-Five factors that influence retention that are

Compensation

Environment

Growth

Relationship

Support/Recognition

Orientation -Orientation is designed in such a way that new employees are provided with necessary information and tools to perform their jobs and they also get comfortable with the environment and culture. It may extend from a week to 1 month.

Training Programs -Most training is directed at upgrading and improving an employee’s abilities or skills. On the job training as well as off job trainings – both are practiced conveniently.

Developmental Programs -A process designed to develop skills necessary for future work activities. A number of employee and skill development programs are being simulated at ITL. A few of them are: 

Literacy programs – It’s a 3 to 4 months literacy program where the illiterate employees at ITL are taught enough to fill in their everyday applications and job requirements.

Training : Computer training along with soft and hard skills

Change Management

Stress Management

Computer awareness

Succession Planning – A successor to each manager is trained.

Compliance Trophy competitions

Inter-organizational learning – Letting other organizational members attend the workshops at ITL

Performance Appraisal-A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made. Yearly appraisals and promotions are a must. Even in case of recession a minimum incremental percentage is applicable.

Compensation-Compensation is one of the important element which ITL use to retain its valuable assets and attract new employees. ITL believes in:

“If you pick the right people and give them the opportunity to spread their wings—and put compensation as a carrier behind it—you almost don't have to manage them."

The salaries as compared to the Industry are low. However certain other benefits Medical /Health insurance, Car insurance, two annual bonuses, Conveyance allowance, Fuel allowance and Leave benefits are equally provided to all employees.

 

“The HR manager- Mr Ahsan Fareed refers to the situation as a Recession struck society. People prefer a job more than being interested in the package. Less is being preferred over nothing!”

A minimum salary package of Rs 7000/- is offered. The company is socially responsible and satisfies all government compliances. 32 annual leaves inclusive of 18 paid leaves are also allotted. An annual appraisal of a minimum 15% is awarded to almost all departments.

Research & Planning Section -It covers the research process in respect of the HR system improvement, analyzing the current system in the organization and what may be the solutions to make improvement in the system that directly relates to Organizational Development.

GOOD PRACTICES/STRENGTHS OF HUMAN RESOURCE DEPARTMENT AT ITL

Learning organization: ITL is believes in constant 2 way learning. The departments cater to everyday change in globalization and environmental requirements – HR department and its policies are one of them as well. Innovation and idea generation are greatly appreciated at the company. Each individual is considered as an asset for the organization. Employees learn from the management and the management learns through the employees.

Employee Development programs – See above section “Development”

Hiring and deploying strategies: Individuals are fore mostly examined on a maturity scale. Each employee once hired is tested for 2 to 3 days as to whether he has the capability to survive and work in the textile environment. Apart from the above, casual and formal interviews are carried out. At times the exit interviews have also proved as a means of reducing turnover and absenteeism , minor complains leading to resignations have been restrained and employees have been re appointed or retained.

Conflict Resolution: Carried out through Executive committee discussions and HR and grievance programs

Stress Management: Recently a 2 day workshop had been organized the HR department at Unit 2 in order to educate the management regarding stress management abilities. A 100% attendance was mandatory – The success rate has been satisfactory.

Motivation: The top management believes in constant learning and adapting to temporariness. Dynamic leaders instigate and motivate their subordinates to learn better and faster. Ideas are appreciated and propagated with acknowledgement.

Job enlargement: It’s a regular exercise practiced at ITL..Job enrichment:  Enrichment exercised with success has lead to promotions.

Job involvement: Employees are constantly involved and taken suggestions from while making decisions.

Work arrangements (Flexi timing): This is not practiced in the organization – apart for special cases where employees are also catering to their educational needs.

Participative decision making – Department employees sit for a weekly meeting within the department, the department manager looks into all issues deeply and if required takes a decision consulting all members. This department head then represents his entire team in the weekly Factory meetings

WEAKNESS OF HUMAN RESOURCE DEPARTMENT AT ITL

Long working hours for employees – It’s a general textile based regime

Lengthy feedback procedures which frustrates the employees at times

Too much paper work required for petty HR issues

Daily overtimes

Seth culture

Low industry rated salary structure

ANALYSIS OF DATA

The methods used for analysis comprised of the following two tools:

1. Fishbone diagrams

2. Survey analysis using bar charts and pie charts

FISH BONE ANALYSIS:

The inventor of Fish bone analysis tool was a quality control statistician Dr. Kaoru Ishikawa. It is for this reason it is also referred to as Ishikawa diagram. This tool provides a systematic manner of looking at cause and effect relationship regarding a problem. The design of the analysis is such that the problem is indicted at the fish head and its potential causes and sub-causes at the bones which makes it look like a fish skeleton which give it its name. It’s a very effective analysis tool.

Methodology for Fish Diagram:

An interview was carried out with the Deputy HR manager and HR executive in order to have their opinion on the subject. After the interview the problems were listed down and fish bone diagram was used to map out the potential causes . This provided the problems an order in investigation and helped in separating the major problems from the root causes and indicators of those problems.

The fishbone diagram was used to

Study a problem/issue to determine the root cause

Study all the possible reasons why a process is beginning to have difficulties, problems, or breakdowns.

Why a process is not performing properly or producing the desired results?

Diagrams:

Four fishbone diagrams have been included in the report ; covering the major issues analyzed during the interview. The major problems with respect to the diagram are:

Employee Retention

Human Resource Planning failure

Lack of Training

Mismatch in Job Description and Job Performed

Lack of Training

Person Job Fit issue

Recruitment

Performance Management /Concept

Inadequate skill training

Lack of awareness in candidate

Biased analysis

Lack of hiring tests

Personal goals mismatch

Improper TNA

Average ranking syndrome

Pool of candidates

Improper Job Analysis

Lack of homework

Improper Trainer

Reluctance

Trainee reluctance

Promotion

Demand > Supply

Unable to retain employees at International Textile Ltd

Hierarchy based salary division issue

Lack of Communication

Feedback

Hiring criteria absent

Candidate reversely hired

Job perceptions

Sense of values don’t match

Description mismatch

Take home package?

Database unavailability

Rotation and Time required

Time constraints

Economic recession

Lack of Quality hiring

Improper Hiring

Competitive salary

Job size > Job depth

Reluctance in certain dept.s

Compensation

Orientation

Job

Lack of Contingency Planning

Lack of communication

Economic Fluctuations

Employee

Lack of feedback

Reluctance

Boom and recession

Action plan keeps changing

Improper recruiting

Job analysis issue

Grudges

Biasness

New Govt. = new rules

Retention issue

Improper downsizing method

Minimum salary

Improper hiring

One sided communication

Lack of training

Human Resource Planning Fails

Reluctance

Demand fluctuation with economic fluctuation

Growth vs. Tenure

Downsizing

Lack of database

Managerial estimates

Company policy changes

Seniors don’t retire

Lack of skill

Lack of statistical models

Say but not practice

Experience vs. education

Labor Demand Supply

Improper Forecasting

Strategy Fit (HR and ITL)

Succession Planning is costly

Product ratio used

Lack of Awareness

At introductory stage

Job Analysis

Lack of communication (Controlled)

Glass ceiling syndrome

Politics: Do not let info pass down hierarchy

Not a continual process

Analyst characteristics

Personal Grudges

Not up to date

Interdepartmental lags at times

Job Descriptions do not match the job performed

Knowledge of descriptions at times is unclear

Performance evaluation

Unclear performance measurement criteria

Over time and too much work load

Comparison

Extra work pays more

General perception: Overwork pays more

Expectations

Environment/Industry

Too much work delegated at times

Competition

Employee perception

Industry demands

Line Managers/HOD

Employee

Time required

Training Program

Return on Training issue

HR planning

No training calendar

Lack of Training in certain departments

Method

Objectives

Trainer evaluation (Fit with ITL?)

No proper calculation

Cost vs. Benefit?

Assessment criteria

Biased Performance evaluation and TNA

Average ranking is good

Reluctance

Level of acceptance/Participation

Priority

Personal Evaluation doesn’t match with TNA

Department’s /HOD reluctance

Employee /Trainee

Motivation

SURVEY ANALYSIS:

An employee survey form was distributed in the organization through mail and physical hardcopies. 15 Surveys were all in all distributed and 12 were received back. The survey had questions based on various different functions of the Human Resource department.

Certain limitations and biasness was also noticed depending on the following:

Average rating syndrome

Fear of name leakage (However names were optional)

Employee reluctance to participate for the survey

The following pages consist of a brief graphical analysis obtained through the findings. The main parts the survey questioned about were:

Job

Training and Development

Pay

Performance Management /Appraisal

Team working

Internal Communication

Management

Equal Opportunities and Diversity

Your Organization

However only relevant areas of interest have been discussed here ;

JOB

Figure 1a and Figure 1b

From the above analysis majority of the employees realize their job responsibilities and claim that they have up to date job descriptions. However the Fish bone analysis shows that a major problem when analyzing jobs occurs that the employees descriptions are not up to date. The employees are unaware of this discrepancy

Figure 3

Figure 2

The above two show that the only problem occurring is that of Motivation. Employees generally do not tend to feel motivated for their jobs or other activities that could benefit them. Security is a slight issue and people also feel that they do not have enough time to get the jobs done.

The major problems analyzed from these 4 figures are:

Employee perceptions that their job descriptions are up to date

Motivation issues

Time constraints to perform job.

Figure 4a and Figure 4bTRAINING AND DEVELOPMENT

In general 50% of the people have declared that the training carried out at ITL is satisfactory or fairly good. This shows that Training is not that widely attributed to as it should be (Figure4a)

Also 10% proclaims that the line managers or team leaders coach them, where as 70% approximately do not receive regular coaching or receive it rarely (Figure 4b)

Figure 5

70% of the employees are not totally satisfied with training that they get (Figure 5). Figure 4a and Figure 5 both together show a little overlapping of results. They both portray the employees’ dissatisfaction with respect to the training they are exposed to – if exposed that is.

Figure 6

The above shows that only Induction training and Team development are the major areas the Management is concentration on. The weak areas are management, personal development and the most important Technical and Professional skill training.

The major problems analyzed from this section analysis are:

Lack of training

Employees dissatisfaction for training

Sensitive areas that need training

PAY AND COMPENSATION

Figure 7a and 7b

The above figures, 7a and 7b, show that more than 50% of the employees do not consider themselves as being paid fairly. Only 10% consider themselves as fairly paid. The reason to this perception might be the lack of industry knowledge, job security or the employees’ reluctance to participate in this survey and provide the right knowledge.

Figure 8

Basic pay is one of the lower rating areas. As per policy – 2 annual bonuses are rewarded on Eids.

Problem areas:

Take home basic pay is less as compared to market.

Compensation packages are not competitive.

PERFORMANCE MANAGEMENT/APPRAISAL

Figure 9

Figure 10Lack of communication and performance evaluation sharing has lead to a very unclear and vague perception for employees. They are unaware as to how have they performed last quarter or how are they expected to perform the next quarter. The HR department has strict quarterly appraisals held to avoid the fluctuations but the Line managers do not practice them as per the policy and hence lead to such problems.

The above figure 10 clearly shows that the performance if discussed with the employees lacks the areas such as future targets, priorities, skills and developmental needs to be discussed.

Problem areas:

Lack of communication in performance evaluation

Training and Evaluation is not prioritized

INTERNAL COMMUNICATION/ MANAGEMENT AND POLICIES

Figure 11

Most of the employees get information through informal feedbacks or Discussions between colleagues.

There is no formal way of commuting or providing employees with necessary information

Figure 12 Shows that the only well communicated aspect is the workgroups plans or financial performance.

Figure 12

Figure 13

Figure 14a and 14b

Figure 13

All in all the communication in certain departments is better off than other departments. The HRD and the managers make sure they listen to the organization and its employees on the whole. People are not aware about the various organizational policies and would want to learn more .

Problem areas:

Communication medium is not strong – Mostly informal communication

Sensitive areas of communication are the organizations future plans

Employees unaware of policies.

Figure 14THE ORGANIZATION AS PER THE EMPLOYEES’ PERCEPTION

The employees in general feel proud working for International Textile Ltd. A few weaknesses in certain areas need to be taken care of. The management style, working hour and pay levels are amongst the de-motivating factor for the employees. The reason for these issues existing might be that the organization is unaware about the various problems occurring at the grass route level; else employees feel that management considers them lucrative asset and are making efforts to retain the employees on their personal and departmental levels.

LIST OF PROBLEMS AS ANALYZED FROM FISHBONE AND SURVEY ANALYSIS

From the analysis done using the fish bone technique and survey method, the following list of problems can be generated:

From Fishbone and Interviews:

Employee Retention

Human Resource Planning failure

Lack of Training

Mismatch in Job Description and Job Performed

From Survey Analysis:

Employee perceptions that their job descriptions are up to date

Motivation problems.

Time constraints to perform job.

Lack of training.

Employee’s dissatisfaction for training.

Sensitive areas that need training.

Take home basic pay is less as compared to market.

Compensation packages are not competitive.

Lack of communication in performance evaluation.

Training and Evaluation is not prioritized.

Communication medium is not strong – Mostly informal communication.

Sensitive areas of communication are the organizations future plans.

Employees unaware of policies.

Management style is de-motivating for employees.

CHAPTER # 5

RECOMMENDATION & CONCLUSION

RECOMMENDATION

Motivated employees are the best source of getting business efficiency. Management at ITL needs to take control of this sinking ship, i.e. its human resource. Company cannot leave thesekey stakeholders unsatisfied.

Analysis in the current study shows that there are many take-aways for organizations in terms of how they manage their human resources. Analysis and subsequent discussion shows that the prevailing salary structure and benefits are not adequate to attract and retain talent within the organization. Required is implementation of more innovative HRM practices within the organization. The most important lesson to take away is getting review from the employees. In most scenarios, employees know the best what motivates them. Therefore, regular feedback from workers can provide HR and management with broad game plan which they can use to preserve and develop the existing talent along with attracting new talent.

Focusing on the results of current study, the following solutions are recommended to cater to the problems identified.

MANAGEMENT STYLE:

ITL management style is that of “Seth Culture”, the most prevalent style in Pakistan. It can be ,to some extent, linked to the administrative expert style of human resource management. What is required is a movement towards the employee championship style of human resource management. This requires major thinking transformation at the top level. HR polices and procedures are in place to facilitate the move, but its proper and unhindered implementation is required with complete elimination of favoritism and one man show decisions, an essence of Seth culture.

BASIC IMAGE OF FAIR TREATMENT- ROLE OF HR

Employees at ITL have a perception of management that due to the one man show and favoritism they can be fired at any time .This perception is true to a great extent. HR department needs to improve the image of prevalent management style. They need to discuss the issue with the top management and its effects.

Decisions and processes such as Recruitment and employee separation need to be formal and transparent.

Employees at all levels should be fully informed of the policies of the company and there implications. A feeling of “Fair and equal pay treatment” should also be promoted by implementation of a just compensation system.

A SOLID COMPENSATION STRATEGY - MODIFICATION OF SALARY AND INCENTIVE STRUCTURE

One of the foremost concerns, as per the results of study, is the perception of unfair compensation structure. Its a major cause of turnover within the company.

The positions in ITL are not unique. Employees who have little insight into the business world know that they are not paid fairly and this feeling is contagious. Management needs to rectify this. A proper updated salary survey needs to be conducted and salary levels should be revised if the findings claim so. On basis of that a formal and solid compensation strategy serves the purpose of guiding the organization in a competitive market . When the policy is formulated , it should be communicated well as it will give employees confidence in the plan, its accountability and intent.

There is a variety of variable pay schemes which if used will propel employees to perform higher in anticipation of greater returns. These include:

Merit based pay plans

Bonuses

Profit-sharing

Gain sharing

Employee stock ownership plans.

This will provide recognition and galvanize employees to work in sync with the organizational goals.

DEVELOPMENT OF A JUST AND ACCOUNTABLE PERFORMANCE MANAGEMENT SYSTEM

The management at ITL is faltered on the procedural justice end. Employee feedback was not taken while the senior management was appraising them. Management defended itself against the rebuttals by citing paucity of time as the main culprit. This blatant use of authority should be avoided. A just and fair performance management system should be installed .Such a system will in turn add to the level of faith in the system and will propel the Output/ Input ratio (Equity Theory) closer to rightness.

A clear and transparent performance management system should be implemented. The system should help clearly identify at all levels about the required input, the desired output and the rewards. This will help in generating a positive attitude towards work as employees will know what direction to go in and what to find at the end .

Managers/ supervisors role in this act is of high importance. All actions in the evaluations need to be justified. A two way communication process should be initiated regarding the performance management of employees and there year end evaluations should not come to them as a surprise. Also poor performers need to be addressed and high performers rewarded, and both in formal manner, so that performance recognition is announced.

Employee TNA should be conducted twice every year to load him with necessary gadgets for the job an also provide him with professional development. Employee should be given open and clear feedback and action plan for improvement every quarter so that at annual appraisal he knows his position. Also, after the appraisal, proper performance improvement plans should be provided to the employee and compliance ensured.

Managers should be kept well aware of compensation plans and company’s position in the context compared to the market. Thy should be educated on how to motivate there high performers with compensation. Also , the performance measurement goals should be linked to business goals, for every employee,. The reason for this is that some times incentive plans and compensation policies can cause conflict among employees and departments.

Thus , clear performance standards, unbiased rating matrices, linking performance to reward and good communication of the process will lead to improved performance and satisfaction.

DECENTRALIZATION-GREATER AUTONOMY ACROSS THE HIERARCHY

The top management needs to provide more autonomy in decision making. Employees are delegated tasks but not given autonomy which is de-motivating as it makes an employee feeling secluded from the organization. A more participative approach should be adopted which allows the employee feedback to be taken regarding decisions effecting them. When the employees realize that their reward and compensation is dependent on exogenous factors, which they have no control on, self-efficacy would decrease, resulting in diminishing productivity.

Other then these , formulation of updated job descriptions should be number one priority as all other areas of human resource management benefit from them. Training sessions on identified sensitive areas / identified during last appraisals should be planned as soon as possible. This will give employees a slight feeling of movement towards a change

CONCLUSION

The study was aimed at finding out problems faced at the HR management in ITL. Analysis shows that many underlying factors actually led to several problems that resulted in low motivation, high rate of turn-over, decreased productivity, and deterioration of work culture, and lack of trust in the organization. However, by moving towards “employee championship” style of management, fostering procedural justice, promoting transparency, formulating two way communication channels, implementing a good performance management system and providing autonomy, all would help in restoration of self-efficacy amongst employees, although the process is expected to take time. Given the shortage of human resources in Pakistan, this study carries important lessons for organizations. If they need to attract, retain, develop, and capitalize their human resources, they will need to adopt strategic HR measures rather than just relying upon the emergent HR practices

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