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Table of Content: 1. Acknowledgement 2. Introduction & history of Unilever: a. b. c. d. e.

Introduction Mission statement Purpose of Unilever Logo of Unilever History of Unilever

3. HR Department & compensation system: a. b. c. d. e. f. g. h. i. j.

Roles of HR dept Responsibilities of HR dept Mission statement of HR Values of HR Organizational chart of HR FLAD Factory cafeteria HR main office Organizational chart of HR Compensation system

4. Recommendations & Conclusion

ACKNOWLEDGEMENT In the name of ALLAH the beneficent the merciful. First of all we would like to thank almighty Allah who enabled us to complete this project in time. Next we all would like to thank our respected course instructor, Prof. Masood A Mian , who gave us the opportunity to study this topic. His guidance, encouragement and affection made us able to complete this peoject that is indeed a “mile stone” in our lives. We are really thankful to our respected teacher for the guidance and support. We would also thanks to all people specially the people of Madina Colony, Baghbanpura, Lahore they really cooperate with us and provide us maximum information to complete the survey. In the end we would specially like to thank the Councilor of Madina Colony, Baghbapura, Lahore whose guidance and support is also valuable to complete this project.

Introduction & history of Unilever:

Introduction: Unilever is one of the world’s leading suppliers of fast-moving consumer goods. In much of the world, Unilever leads the Home Care market, which includes cleansing and hygiene products. Many of their products are market leaders and include Brilhante, Cif, Comfort, Domestos, Omo, Skip and Snuggle. UPL is implementing world class HR practices. They are critically working on many new concepts of HR. In sequence of their compensation system, they are market leader in many benefits. Their market competitor P&G is also very good pay master and has a very strong concern in developing their own work force. In this project we are going to analyze the compensation system of UPL–HPC–RF (home and personal care Rahim Yar Khan Factory) Within the Personal Care market, they are global leaders in products for skin cleansing, deodorants and antiperspirants. Their global core brands include Axe, Dove, Lux, Pond's, Rexona and Sunsilk. They create market and distribute the products that people choose to feed their families and keep themselves and their homes fresh. Innovation is paramount within the Home and Personal Care markets in order to maintain their strong market position. Their brands cater to consumers everywhere and they produce products for a vast range of requirements and conditions, from laundry soap bars for consumers using river water, to tablets for the most advanced washing machines. From the most essential in personal care products, to the luxury of their fragrances, they have a range of brands to match the diversity of their consumers.

They are growing their biggest brands through innovative product development and compelling brand communications. Each of their brands has enormous potential to meet the changing needs of consumers through a variety of products that fulfill their brand's promise. At the same time they also have the potential scale, profitability and international appeal needed to be world-leaders. Every day, all around the world, 150 million people choose to make their brands part of their lives. Everywhere they operate, they work to understand people's lives, needs and aspirations - and to provide food and home & personal care products that help them, even just a little. Unilever live up to the trust of people by making and selling their products in a responsible way, conscious of their effect on the world they live in and the communities in which they work. Their passion for understanding people's concerns and desires, their ability to create products that fulfill those needs and their skills in getting those products to market drives their growing success - and has made Unilever one of the world’s leading consumer good companies.

Mission statement:

We will continue to build a name for Corporate Video Concepts that is both respected and recognized for excellence. We'll build that name through loyalty to the client, fair pricing and unfailing dedication to creating a superior product that keeps the client coming back for more. Our objective in every finished minute of tape is to grab the viewer while maintaining a firm grasp on the client's message and purpose. We will continue to maintain that level of excellence that has pushed Corporate Video Concepts to the forefront of video communications.

Unilever purpose: The purpose of Unilever is to meet the everyday needs of people everywhere, to anticipate the aspirations of their consumers and customers and to respond creatively and competitively with branded products and services which raise the quality of life. Their deep roots in local cultures and markets around the world are their unparalleled inheritance and the foundation for their future growth. They will bring their wealth of knowledge and international expertise to the service of local consumers – a truly multilocal, multinational. Their long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously. They believe that to succeed requires the highest standards of corporate behavior towards their employees, consumers and the societies and world in which we live. This is Unilever's road to sustainable, profitable growth for their business and long-term value creation for their shareholders and employees.

Unilever logo: People don’t know much about Unilever—and they don’t easily connect the company with its brands. For many people they are invisible. Most don’t know what they stand for and see them as yet another multinational. So with their logo they are taking off their suit and showing their true colors. They aim to add vitality to life. It’s a big ambition, but it’s always been right at the heart of their business. They are just making it a little more transparent. And they believe they are heading in the right direction for the future. The company has published its interpretation of the new logo that they have come up with which has been described as follows:

History of Unilever: The progressive world-class business we know today can trace its roots back to the early part of the last century. Unilever was created in 1930 when the British soap maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie. At the time, an international merger was an unusual move. But the owners of the two companies could see that bringing together complimentary businesses with strong global networks would create new opportunities. Both Companies were competing for the same raw materials, both were involved in large-scale marketing of household products and both used similar distribution channels. Between them, they had operations in over 40 countries. Margarine Unie grew through mergers with other margarine companies in the 1920s. William Hesketh Lever founded lever Brothers in 1885. Lever established soap factories around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and canned foods businesses. In the Thirties, Unilever introduced improved technology to the business. The business grew and new ventures were launched in Latin America. The entrepreneurial spirit of the founders and their caring approach to their employees and their communities remain at the heart of Unilever's business today. Employing 247,000 people, Unilever has two parent companies - Unilever NV and Unilever PLC – which, despite being separate businesses, operate as a single unit with the same board of directors. Unilever's corporate centers are London and Rotterdam. Unilever brands are household names: some are world famous; others have a special role in just one or a few countries.

Different factories of Unilever are operating in different areas of Pakistan. Brief information about theses units is given below: •

Rahim Yar Khan (RF):

The largest and the oldest of Unilever is situated in Rahim Yar Khan. Basically at this factory personal products, soaps, glycerin and dish wash bar are manufactured.

•

Karachi Tea Factory (KF):

This factory was established in 1950 and it is situated in west Wharf area. Formerly it was owned and managed by Lipton Pakistan Ltd. In the last 43 years many modifications are made here. And the factory has expanded considerably. In this factory only tea is produced and packaged. •

Ice Cream Factory:

This is recently established on Multan Road in district Kasur. The plant was commissioned in 1994 having the most modern and latest machines installed. Walls Ice cream is being manufactured here. Unilever, when acquired the Polka, also purchased its two factories, one in Lahore and other in Karachi. •

Best Foods Faisalabad:

Recently Unilever has acquired Rafhan Maize Products from Best Foods International. •

Tea Processing Plant (Mansehra):

The new Lever Black Tea Processing Plant has been set up at Dhodial, 12 km north of Mansehra on the main Karakoram Highway on 2.5 acres of land with the Processing Plant built-in area of 11,800 sq. ft. The plant is expected to process 50 kg per hour or approximately a ton of made tea a day The plant has cost Rs. 11 million whereas Rs. 12 million has been spent on the building and infrastructure. The plant has been inaugurated on 7th of September, 2001.

HR Department & compensation system:

According to the Human Resource Department of Unilever RF, there are things, which are common between workers and machinery of the organization. For example: Machinery requires repair where as workers required training 2. Both are used for production purposes 3. Both require improvement 4. Both become inefficient if proper attention is not given 1.

Role of HR in Unilever: The role of HR starts when there comes a word human. It becomes the responsibility of HR Dept. to analyze, recruit, train, motivate, compensate, appreciate, give safety & health facilities and do every favor which is associated with human needs. Basically HR role is in 5 dimensions. The HR role in: 1. 2. 3. 4. 5.

Industrial Relations (IR) The Administration Dept The Factory Labor Administration Dept (FLAD) The Unilever Estate The Security Dept

The brief introduction of HR role in above departments is given below in its depth so functioning of every department would be clear.

1. The HR role in IR: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Effective implementation of TPM To inculcate the “Safety Instinct” in factory teams To ensure smooth production To ensure a congenial yet a competitive environment To develop specialist skills within the team through training To achieve results & grow as team / with teams To nurture Human Resource that will meet work place needs over a long term period To ensure hygiene / house keeping is maintained through 3P Effective Security Measure

2. The HR role in administration functions:

Business Services: 1. Mail dispatches - internal and external 2. Tele communication services - internal and external 3. Arrangements for in house seminars and courses

General Services: 1. 2. 3. 4.

Acid control / maintenance General repairs House keeping Tea and bar services

Stationary: 1. Procurement / printing / quality / cost Travel: 1. All types of travel plus boarding and lodging 2. Public relations with district management Strength: 1. Manager 1 2. Factory staff 6 Special achievements: 1. 2. 3. 4.

Stationary store cost cutting Enhanced service levels Tea and allied Way Forward

3. The HR role in FLAD: Strength:

1. 4- Mgmt, 16-Factory Staff Special Achievements: 1. 2. 3. 4. 5. 6. 7.

Rationalization of man power Family Medical Center Partial implementation of M.O.U. Running Machines handing and taking over to increase production time Flexible Factory Staff Gender Diversity (only at the office level) Training's parted to entire factory staff (Permanent & contractual)

Way Forward: 1. 2. 3. 4.

Up - skilling through extensive training programs Introducing women on the Personal Products packing floor Continue out sourcing of all non core tasks / operations To create a competitive atmosphere amongst the factory team & a sense to strive for excellence

Factory Labor Administrative Department – FLAD: FLAD is a very important and busy department of UPL-RF. This department is run by junior manager Mr. Raja Saeed under supervision of HRD. 1. 2. 3. 4. 5. 6. 7.

Appointment of temporary and casual workers Maintain leave records Maintain attendance Maintain uniforms and safety shoes Disbursement of salaries Maintain overtime records Factory canteen

Manpower: 1. Management 1, Factory staff 16 Special Achievements: 1. Temporary salaries through bank 2. Enhance level of customer service

3. On time processing of returns - internal and external 4. Hygiene and health monitoring in the factory canteen and the catering staff in the rest of the factory 5. Manpower rationalization in the tea and tandoor area 6. Effective crisis management Way Forward: 1. 2. 3. 4.

Effective installation and running of the electronic swipe card system More towards out sourcing of factory canteen and other non core tasks Training to be parted to time keepers for the atomization process Rationalization of permanent manpower in the FLAD

4. Role of HR in Estate department functions: 1. 2. 3. 4. 5.

General specific cleaning / maintenance of the Estate Event management Boarding / lodging of guests All mechanical / civil / services to be provided to all residing in the estate Maintain good and professional relations with the district authorities

Special achievements: 1. Excellent service level 2. Cleaning staff is out sourced Strength: 1. Manager1

Responsibilities of HRD: In HPC factory Human Resource department deals with the following matters: 1. 2. 3. 4. 5.

Hiring of labor to fulfill the factory needs Negotiation with CBA Negotiation with third party Dealing the legal matters in court Marinating the healthy and professional working environment in factory

6. Improving the security situation in factory 7. Negotiation with Govt. 8. Handling the canteen matters 9. Solving every problem of labor 10. Get the labor aware about the company policies 11. Motivating the work force 12. Appraising the good performance 13. International assignments 14. Controlling the tension between CBA and management 15. Aware the union about the creative participation of management 16. Work with the charter of demand 17. Give allowances to the employees 18. Promotions and bonuses 19. Training the labor 20. As well as management 21. Arranging the farewell party for retirees 22. Prepare ACRs (Annual Confidential Reports) 23. Organizing the healthy activities like sports day etc 24. To implement the company’s policies to its full 25. To maintain the Human Resource standards in factory 26. For managers PDFs (Performance Development forms) 27. Help to get financial support from the company or from other institutions 28. Handle the internship program in factory 29. Make induction plans for management trainees and for guests 30. Conduct value meeting on every Monday 31. Providing every facility to company guests 32. Provide rest house facilities to the Govt. officials 33. Marinating the leave record of managers 34. Keep the bio data of each NMS (Non Management Staff) 35. Handling the estate matters 36. Provide uniform and safety shoes to labor 37. Job description and job specification of each and every job 38. Marinating the shift, leave, and attendance records of each employee 39. Marinating the record of applications for job in Unilever 40. Fulfill the needs of the employees 41. Arranging the transport for the guest 42. Provide stationary to whole factory 43. Reservation of seats is also the responsibility of this dept.

Mission statement of HR: “We in HR are the team of enterprising people committed to enable an environment which allow employees to contribute to the fullest of their potential through being creative, taking risks, having fun and striving for the continuous improvement. We attract, develop world-class people who have the passion for winning. As strategic pattern of the business, we enable achievements of sustainable profitable growth through providing innovative HR advice.”

Values of HR: 1.

We operate with integrity by treating our stakeholders in a fair and honest manner as we want to be treated

2.

We believe in team work, involvement and empowerment

3.

We learn, change and improve by being open to ideas, willing to take risks and learning form our mistakes

4.

Our

focus

is

on

performance,

responsiveness

and

delivering

results

Responsibilities of FLAD office: The main responsibilities of FLAD are • • • • • • • • • • • • •

Provide uniform to the labor Provides safety shoes to every visitor and labor Hiring the temporary workers Hiring the badli workers Maintaining the leave record of NMS including temporary and badli workers Maintain the record of shifts, allowances and attendance of NMS temps and badli workers Dealing with the medical certificates from external doctors Maintaining the attendance allowances (allowance given on constant presence) Granting attendance award (this award is given to those employees whose present is max. and it is given as an appreciation ) Issuing warning letters to those employee who are absenteeism is increasing Maintaining the medical connivance allowance. Statement of annual, casual, and sick leave. Issuing ration card.

• •

Preparing cola(cost of living allowance, it is those taxes imposed by Govt. of Pakistan for each employee in the country like increase in pay, granting Eid package) Preparing Heavy duty allowance (allowance given on doing heavy duty like in engineering dept.)

Now detail of these responsibilities is: To provide uniform and safety props to the labor One of the responsibilities of FLAD is to provide uniform to the employees and keep a record of it. There is different color of uniform for each department in the factory to differentiate them from each other. To provide • • •

Lockers Laundry service Stitching services

For the uniform is also the responsibility of FLAD. Token no, name and dept. of the employee is recorded in specific form in order to issue a uniform. In winter jerseys are also the responsibility of FLAD dept. Each uniform is washed on weekly basis. Colors: • • • • • •

Production side: grey pant and white shirt (3 pairs). Engineering: light blue shirt and dark blue pant (3 pairs). PP (personal products): 4 pairs. Temps girls: off white karandi shirts and orange check gowns. Temps male: white pant and white shirt. Drivers, office staff: white pant and white shirt. To Provide the Safety shoes Safety is given the top most priority from the factory gate to the works manager’s office. Therefore to ensure proper safety, it is one of the duties of FLAD to provide the labor as well as the management with the safety shoes, helmets and caps to minimize safety

hazards on the production floor. The name, taken no, department and signature of employee is also registered. Due to safety reasons every person who enters in factory is provided by safety shoes. Hiring Temporary Workers: To fulfill the demand of labor for production purpose, temporary workers are hire for the period of 9 months Eligibility Criteria for Temps: o o o o

Matriculation certificate Medically fit Not black list by the factory A person can not continue his job as a temp worker for consecutive 2 years Recruitment process of Temps: A notice is placed for the temps. Those who want to apply and are eligible for the job come with their national ID card and matriculation certificate on the interview date. After interview their medical test is taken which is just a formality .after clearance of medical test the selected people’s appointment letters are issued and in the end Unilever identity card is issued to selected person. Above to all this eligibility criteria the most important degree is “applicants C/O”. Basically the whole process is just a formality the selection is already had done. The priority is given to those applicants who have “super source” (a safarish of high authority person) Hiring of Badli Workers: To fulfill the need of additional workers, badli workers are hired for 120 days. The procedure for hiring is same of temps. Badli workers are hired on the request of depts. The approval is given by HRM. To maintain the leave record of non-management staff including the temporary workers

It is a very important functional aspect of FLAD to keep the leave record of nonmanagement staff. There are four types of leaves that are allowed to the non-management staff and they are the paid leaves: • • • • •

Each non-management staff is allowed 24 annual leaves Sick leaves are increased according to the length of service of the worker and they are accepted if the factory doctor or any recognized medical hospital approves of it. Quota for causal leaves is 10 days. Scheduled leaves: One-week holidays are allowed to each worker from the company. That is called the scheduled leaves. Special paid leaves are granted to the Union and are granted if they go on meetings, they are at most 25 days. FLAD maintains the annual, casual, sick and medical leaves of NMS TYPES OF WORKERS IN THE FACTORY There are four types of labor in the Unilever RF

• • • •

Permanent workers Casual or contractual workers Temporary workers Badli workers PERMANENT WORKERS They get all the benefits and services provided by the factory. CASUAL WORKERS They are on contract and that contract has a limit to it, which is in most cases one year and can be less that that too. Company does not bear any liability for them. TEMPORARY WORKERS These are those workers who work in the factory for the period of 9 months. And after 9 months, hiring of new temporary workers is done.

BADLI WORKER These are those workers that are hired in case if there is need of additional workers and are hired for 120 days. If any of the production departments require additional labor, they contact the FLAD and they provide them with badli workers Time Office: It’s a 24 hours duty office the whole leaves, attendance, shifts and overtime system of the factory depends upon the time office. Responsibilities: The main responsibilities are: • • • • • • • •

Attendance of each employee. Shift allowance of each employee. Fulfill the need of badli. Preparing the daily labor force in the factory. Verifying the leave application and absentees. Controlling the punching machine Displaying the department wise time card for each employee. Preparing the allowances and shift arrangement. Shifts in the factory: As the factory is 24 hours working so the full day is divided in 3 shifts, shifts are:

• • •

Shift A that starts at 0600hrs and finishes at 1400hrs Shift B that starts at 1400hrs and finishes at 2200hrs Shift C that starts at 2200hrs and finishes at 0600hrs Every week shits are changed for each employee but the employee working in general shift do not change their shift the general shift is:

•

Shift general that starts at 0600hrs and finishes at 1500hrs Working of punching machine and time office:

Time officer displays employee attendance cards department wise on the board along time machine. He displays attendance cards of those employees who have to come in that shift. Every employee while entering in the factory takes his card from the board and inserts it in the time machine. The time machine prints the date and arrival time of employee on the card. At the end of shift employees insert again their card in the punching machine and the time machine prints the time and date on it. Employee again displays the card on the board. And at the end the time officer collects that cards and next shift cards are displayed on the board. After collecting attendance cards the time officer maintains the record of employees in their respective file. The list of employees is also verified from all the departments in the factory to ensure the correct attendance and on this basis they prepare wages. Overtime of the worker is also recorded according to this method. Rule and Regulations: • •

Pay will be cut if the employee is late from the time office to the factory. No employee can go to his duty if he is late by one hour from the factory time with out the permission of head of particular dept. If the worker is late from the official time his pay is cut down and he is not allowed to go to his duty unless he gets permission from the head of that particular department. Pay cut down is in a way that if the worker is late by 1 minute that will be counted as 15 minutes and if for 31 minutes that will be 45 minutes and 46 minutes is counted as 1 hour. FACTORY CAFETERIA: Factory cafeteria is a place for rest and lunch for the employees. It provides tea, lunch and dinner to the employees both the non-management staff and management staff. Timings: The timings for the two are different. It starts at 1100 hrs for lunch of NMS and finishes at 1200hrs and for MS it starts at 1300hrs and finishes at 1400hrs. Control: Factory cafeteria also comes under the control of FLAD and the menu, the safety and health conditions are maintained by the manager of FLAD and that of Human Resource Department main office.

Price of per Lunch/Dinner • • •

NMS pays 0.50 paisa/lunch Contractual workers pay 0.75 paisa/lunch Management staff pays 2.75 paisa/lunch HR main office is the heart of the human resource department of the factory. This main office controls each and every task in the factory that is subjected to the human resource. Organizational Chart of HR Main Office

Responsibilities of HR Main Office: The main responsibilities of HR main office are: • • • • • • • • • • • • • • • • • • • • • •

Maintaining the leave record of managers Preparing the annual confidential report (ACR) of NMS. Promoting the employees Maintaining the career record of every employee of factory except management Applying different practices to keep on motivated the employees. Conduct value meetings Enhance the loyalty of workers to the company. Information about the financial assistance for the employees of the factory. Dealing with the cases in the court. Negotiations with the Govt. officials Negotiations with the contractors of the company. Hearing complaints from the employees of the factory. Issuing company notices. Recruitment of apprentices. Preparing the induction plan for management trainees and guests. Advertising Maintaining the record of old manpower of the factory Announcement of retirement of NMS. Conducting the retirement ceremony Issuing the gate entry card to all the employees and internees. Dealing with the safety issue of the factory. Preparing the salary control sheets

• • • • • • • • • • • • • • • • • • • • • • • • • •

Attendance record pf managers. Maintain the audit reports of factory canteen Organizing the civil defense training for the employees of factory. Providing the education assistance to the non management staff. Maintaining the POD quota file. Keeps the update the statistical yearly return record. Maintaining the contract managers leave. Providing the opportunity of internship to students to gain the practical knowledge. Offering the job training for the children of NMS. Record the safety discipline contractors Providing the computer loan to the employees. Providing the cash assistance for the hajj for NMS. Issuing the charge sheet for the employees in the factory Expenditure authority Keep the environment record of the company Recruitment and succession plan Keep the record of charter of demand. Keep the record of third party contractors Dealing with EOBI (employee old age benefit institute). Dealing with the works council. Organizing the staff sports club. Providing the free medical allowances Record of professional taxes Maintaining the training sessions in the factory Upgrade the skill level of factory employees to standard. Supervise the affairs of estate

Now the detail of these responsibilities: Maintaining the leave record of managers: It is also one of the duties of HR to maintain the leave record of the managers in order to keep a check on their absenteeism and to make payments according to their paid leave benefits. Managers are also provided with the paid annual leaves, sick leaves and casual leaves Preparation of the annual confidential report (ACR) of NMS:

Regular ACRs are prepared by the Human Resource Department and are stacked in the employment history of the employees. Direct line manager fills out the ACRs for the workers on his line. 360-degree feedback is done for the management in order to keep record of their performances quarterly. Promoting the employees: Promotion of the employees is done on the basis of their ACRs. As the head of the department recommend an employee for his promotion from one grade to another, Human Resource Manager with the permission of works manager promotes him to the next grade. The grade system in Unilever is from grade A to grade F, where Grade A is the lowest and unskilled level and Grade F is the highest skill level. This grading is for the NMS and is done on the basis of the performance of the worker. Promotions of managers are done annually and on the basis of personal development program PDP and personal development review PDR.

Maintaining the Career Record of Every Employee of Factory: If we start from the very beginning of the jobs of HR main office, their very initial activity is to prepare the records of the employees as soon as they join their job. In this way, they are able to maintain a record history of the worker’s employment. In this history they include the o o o o o o o o o

Education record of the employee His joining date and date on which he will be retired Address of the employee Leave record ACRs of the employee Warning letters if any Cash award of respective employee The training programs that he joined while his employment period His behavior and issues of any negligence if any. This history recording does not imply on the managers. Different practices to keep on motivating the employees:

HR is doing different activities to keep on motivating its employees. The organization has the opinion that motivated workers are more productive than unmotivated workers. To motivate its employees the organization uses both intrinsic and extrinsic approaches for motivation its employees. Intrinsic Approach: o o o

Job rotation Job enrichment Job enlargement Extrinsic Approach:

o o o o o o o o

o

Training Appreciation letters Bonuses Cash awards Gifts Shields Clocks Put the name of the workers on the notice board who perform an excellent performance. To motivate the employees the organization has introduced a program name OFI (Opportunity for Improvement). Place the picture of the employees who did extraordinary work and if they are implementing the TPM better than others. When other sees their colleagues’ picture they also got motivated. Conduct value meetings: On every Monday morning the HR dept conduct a value meeting in the main office. It’s an excellent practice. This meeting is conducted by JM-HR. He already selects a topic and discusses it with others. People share their experiences in it. Enhance the loyalty of workers to the company: Many practices are done just to increase the loyalty of employees.

o o o

Value meetings Allowances Security etc

Information about the financial assistance for the employees of the factory: The company provides the financial assistance to all the employees of the factory. This financial assistance may be in the form of loan from the company, marriages, allowances etc. Dealing with the Cases in the Court: Human Resource Department also deals in any judicial cases related to the factory. All the judicial cases of Unilever RF are done at the labor court # 8 that is located in Bahawalpur. If the case is too serious then it is taken to the national industrial relations commission NIRC. NIRC deals with all the cases related to the Unions and Federations. In the conflicting situations of company and union, it is the court that decides who is right and who is wrong. Negotiations with the Govt. officials: HR dept has full responsibility to tackle every person in and out side the factory so govt. officials are among those which should be handled by HR dept. Negotiations with the contractors of the company: There is a tender notice given for the contractors and bidding is done any contractor who suits the company in cost effective manner will be preferred. Terms and conditions are set by HR dept. Considering the complaints of employees: It’s the responsibility of the HR dept. to listen the problems of employees whatever be the problem. Issuing company notices: Any company notice is first come to HR dept. and then the execution of this notice is the responsibility of HR dept.

Recruitment of apprentices: The company recruits the apprentices for training. The company advertises for trainees and then they are selected for 3 yrs. Preparing the induction plan for management trainees and guests: Whenever any manager joins the Unilever, it is the duty of HR to prepare his induction program. Not only this but also if any personnel from any other factories or head office comes to visit Unilever RF, they also prepare their induction plan. Induction plan includes introduction and information about the operations carried out by the departments respectively. It may include induction of safety as well as the production plant as per requirement. Advertising: Another function of HR dept. is to do advertisement for contractors, job and apprentices Maintaining the record of old manpower of the factory: It’s the responsibility of HRD is to maintain the man power of factory. o o o o o o o

Permanent factory staff workers are 445 Temporary staff workers are 392 Average number of Badli workers is 80 Management includes 76 managers out of which: There are 11 senior managers 32 assistant managers 42 junior managers

Announcement of retirement of NMS: It is also one of the duties of Human Resource Department to plan the retirement of the NMS because they maintain all the histories of the employees. In Unilever RF, the retirement of the workers is done on two dates in a year. These dates are 30 th June and 31st December. Normally the retirement age is 58 years but the services may be extended according to the rules of the company.

Rules for Retirement: o o

o

If the number of sick leaves in the last eight yrs is less or equal to 208 then the employee will automatically be promoted for the next two years to stay in factory. And if the number of sick leaves in the last eight years is between 208 to 300 then his extension will depend upon his medical check up. The company doctor can recommended for extension. If the number of sick leaves in last eight yrs is greater then 300 no extension will be granted. Conducting the retirement ceremony: On above given dates, a retirement ceremony is conducted in the factory in which shields and gifts are distributed among the retirees and payment of the funds is done. Issuance the gate entry card: It’s the responsibility of HRD to allot the security gate pass foe employees and internees this shows that in factory Hr is the real authority of Entry and Exit of any person. Dealing with the safety issue of the factory: Security, health and safety aspect of consumers of UPL-RF is direct responsibility of HRD. To secure its employees they do every thing for their protection either it is in the form of safety shoes, helmets or it is in the form of behavioral safety and training. Preparing the salary control sheets: The salary control chart shows the salary increment of staff and NMS. It may be double, single, and special increment .this all depends upon HRM .it is due on first January for staff and first April for NMS. Attendance record of managers: It is also one of the duties of HR to maintain the attendance record of the managers in order to keep a check on their absenteeism.

Maintain the audit reports of factory canteen: The human resource department keeps the record of audit report of factory canteen. This helps to improve the standards of factory canteen. The audit of ISO is due in August. The ISO audit is for twice a year Organizing the civil defense training for the employees of factory: The company trains its people to deal with the emergency situation like fire, earthquake, flood etc. This training is conducted yearly. Its main purpose is to improve safety standards in the factory Providing the Education Assistance to the Non Management Staff: The company also provides the education assistance to all NMS in the form of grant or Scholarship. Maintaining the contract managers leave: HR dept maintains the leave record of contractual workers. so the payment of pays will be according to the leaves per month. Providing the opportunity of internship: As UPL has to provide the opportunity of internship to students to gain the practical knowledge. So it’s the responsibility of HR dept. Issue of charge sheets against any misconduct of employee: Human Resource Department also issues the charge sheets against the employees of the factory for the violation of company rules and regulations. Expenditure authority: The TA/DA is paid by the approval of HRM Keep the environment record of the company: The dept. also keeps the record of environmental policies of UPL

Recruitment and succession plan: Recruitment of any level is done at Human Resource Department. It may include recruitment for apprentices or for temporary workers or recruitment of managers. First of all any department in need of labor e.g. if any new machine is installed then there will be a need of additional human resource, therefore they send requests for labor along with the ob specifications required. In order to recruit the apprentices, the company advertises for the applications and trainees are selected for the period of three years. Human Resource Department keeps their records. Then the recruitment of the temporaries is also done through the applications and then they are called for the interviews. After a careful screening the temporary workers are selected. Recruitment of managers: Job Requirement: The first step is the demand or requirement of the person Advertisement: The recruitment procedure for the managers is quite different from the above. In order to recruit for management, applications are called for by advertising in the leading newspapers all over Pakistan. Best advertisement solves half of the problem. After the applications are received, interview call letters are send to the viable applicants. Interviews & medical: Screening through interview is done and then the selected candidate has to undergo the necessary medical tests. This procedure is only for the permanent employees and not for the contractual, because permanent employees are entitled to 100% family medical cover while staff is not. After the candidates clear the medical test, if the candidates are in greater quantity than required, the top most are selected and are sent appointment letters. Probation: For managers there is 6 months probation period and for staff there is 3 months probation period and within this period their assessment is done. In this way recruitment of the managers is finalized.

Dealing with EOBI: Every organization who pays contributes to the EOBI its employees are given with this fund. The employee must complete ten years of work and must have an age of 60. Dealing with the works council: There is a council in which CBA and management sits together and solves the problem Organizing the staff sports club: In the factory there is a club for staff. The HR dept. arranges the games and other activities for staff Providing the free medical allowances: HRD provides the free medical allowances to the employees. Record of professional taxes: Every employee in the factory pays a certain amount to the govt. of Pakistan annually as tax. The HRD maintains its record

Training: For smooth production and efficient work there must be some training programs for the workers, staff and management. The Personnel Department also performs training function. It provides on the job training to the existing workers and arranges programs for new employees. The Personnel Department provides the following training facilities to management, staff and workers. o o o o

On the job training Lectures Seminars Conferences

The company has a full time training manager who conducts the different training programs according to circumstances. The management is also sent abroad for certain training programs. Unions and federations: Unless we talk about Union, Human Resource Department is incomplete. Dealing with these agents is also a job of Human Resource managers. Unions are the collective bargaining agents that negotiate on behalf of the workers. Unilever RF has very nice relations with its Union and there is always a win-win situation in every negotiation. It is very interesting to know that despite of very strong labor union, there is no any example of strike of boycott in the history of the factory. This shows the excellent abilities of factory staff and management. There are shop stewards that act as the bridge between the management and the workers. Dealing with the health and safety issues of the factory: Unilever RF is much conscious about the health and safety. Company has its policies of consumers, environment and labor; therefore Human Resource Department is not only responsible of the safety of the labor inside the factory but also the environment as well. To ensure complete safety in the factory, there is a special safety coordinator in the factory who carries out all the safety implementations in the factory and outside Medical Center: The factory has a well-equipped Medical Center where doctors are available 24 hours in order to deal with emergency cases. Inside the factory, it is the duty of Human Resource Department to minimize the safety hazards and to ensure safety outside the factory Human Resource Department emphasis on the behavior safety. To avoid near miss and accidents, company follows all the pro-active and reactive measures. Proper training of the employees is done to improve safety standards on regular basis in the areas like fire fighting, first aid and other safety areas. Human Resource Department issues company policies for the quality and consumers, environment and the safety and health every year. Human Resource Planning: The most important function performed by the department is the Human Resource Planning. For a smooth production there must be an effective Human Resource Planning.

For This purpose it makes long term and short term plans to make the labor available for production. Short term Plans are made for those places where workers have gone on holidays or absent. Under these plans it has two types of recruitment: • •

Badli Temporary For long term plans workers are recruited from the temporary workers who have become skilled one. Preparing job specifications and recording job descriptions: It is the duty of Human Resource Department to define the descriptions, responsibilities and specifications of the jobs in the factory. They gather all the basic information from all the other departments and formulate a specified format according to which they categorize each and every worker in the factory. When in need of promotion or transfer, these job specifications and descriptions play a very important role. Transfers and job rotations: Transfers and job rotation of the managers is also the responsibility of Human Resource Department. If any better job position is vacant and personnel in the department are eligible for it, that person is automatically justified for that position rather than hiring from outside. The department after consulting the top management and analyzing the past record of the workers transfers the employee. Job rotation also takes place in Unilever in order to save the managers from boredom and monotony of the same job and to learn and widen their experiences. Training of the employees: For smooth production and efficient work, there must be some training programs for the workers, staff and management. The Human Resource Department also performs training function. It provides on the job training to the existing workers and arranges programs for new employees. Weekly training plan is chalked out by the Human Resource Department and accordingly the training is carried out. There are two specified training rooms out of which one is in the “learning and research center” and the other is in the main office. Every day except for Friday, the training of the employees on the basic issues is done and their training record is maintained by the Human Resource Department. The main areas in which training is given emphasis are:

o o o o o

Quality Motivation Safety specifically Behavior Safety Environmental safety TPM Trainers in their specific areas are selected among the existing managers of that field. Proper Feedback is taken from the trainees. Apart from this, workers are also send to other factories for off-the-job trainings frequently. For the training need analysis, Human resource department is following the skill gap analysis according to which the weak areas of the workers are picked out of their jobs and then are provided training in that particular area time and again unless or until he attains the leading edge in that area. For the training of the management, managers are send frequently abroad for training and sometimes to other factories or head office and organizations to sharpen their skills. Compensation and benefits: UniLever Pakistan Limited conducts the wages survey in the market and of the major competitors after every two years and compares the results with its own package and if there is any difference then adjustment is made. The average wage rate of the worker in Unilever RF is 2900 per month with overtime. It is the desire of Unilever RF to keep their employees satisfied in every aspect because satisfied employees are more productive as compared to dissatisfied. Unilever RF gives 30 different types of allowances and benefits to its employees. These are annual, semiannual, and monthly or may be once in the whole employment period. Benefits and compensations have already been discussed in the charter of demands section. Unilever tries to provide maximum compensation and benefits to its employees to maximize their motivation and satisfaction. That is why it is very interesting to know that despite of very strong labor union, there is no any example of strike of boycott in the history of the factory. This shows the excellent abilities of factory staff and management. The procurement, development, compensation, integration, maintenance and separation are the tasks that are very hard to manage. These tasks can only be done by an effective teamwork and Human Resource Department on the whole is performing it with great conviction and commitment. PERFORMANCE APPRAISAL:

An evaluation sheet used in Unilever for evaluating the performance of a worker .The sheet is filled by departmental manager and supervisor. On the basis of this evaluation sheet the performance of the worker is being evaluated. A

sample

performance

appraisal

is:

Charter of demands is the agreement between management and labor union. The charter is valid for every two years and is maintained by the Human Resource Department. Charter of demand contains all the benefits and services that should be provided to the NMS of the factory. The charter of demand for year 2002-03 contains the following benefits and services: Bonus for NMS There is bonus of Rs. 101,095,486 for NMS on the profit of the company. It is equivalent to 6.88% of PBIT to the permanent employees. Increase in basic salary There is an increase of Rs. 750/- per month for those who have basic salary of Rs. 1500/Cost of living allowance COLA Cost of living allowance be provided to the workers Attendance allowance Attendance allowance of Rs. 200/- per month is increased to Rs. 350/- per month Attendance reward Attendance award is Rs. 1400/- to 1700/- if the worker works for 260 days if the working week is of 6 days and 208 days for 5 working days a week. Breakfast, lunch and dinner allowance Breakfast, lunch/dinner allowance is increased to Rs. 34/- from Rs. 30/-

Burial expanse It was Rs. 25,000/- in the previous charter of demand and is now increased to Rs. 30,000/Canteen meal allowance It is increased from Rs. 40/- to Rs. 44/- per day worked Conveyance allowance It is Rs. 3.50/- per day Death and total disability compensation It is Rs. 350000/- for death and is increased from Rs. 275,000/- to Rs. 350,000/- for disability. Gratuity, provident fund and retirement award Gratuity is increased from 32 months to 36 months and retirement award is increased to Rs. 10,000/- Provident fund is 16% to 18% of the profit. Hajj assistance Hajj assistance is increased from 90% to 95% Leave fare assistance Leave fare assistance is increased from Rs. 4700/- to Rs. 5500/- per annum Marriage assistance to minorities Marriage assistance to minorities is increased from Rs. 35,000/- to Rs. 40,000/Motor cycle loan and computer loan Motor cycle loan and computer loan is increased from Rs. 50,000/- to Rs. 60,000/-

POD quota

POD quota is increased from 38% to 40% Rehabilitation allowance Rehabilitation allowance is increased to Rs. 10,000/- from Rs. 7500/Scholarship for the children of employees Scholarship amount is increased from Rs. 525/- to Rs. 700/Shift Allowance Shift allowance is increased to Rs. 21/- for 2 shifts and Rs. 26/- for 3 shifts Special allowance Special allowance for the SOA is Rs. 425/- and for OA is Rs. 390/Special leave for federation office bearers Special leave for federation office bearers to attend Union meetings etc. is for 10 days and that is paid leave Traveling entitlements and daily allowances Union office bearers will receive Rs.1500/- per day and SOA/ F grade employees receive Rs. 925/- per day Leave Entitlement 1. Annual leave •

Annual leave (in hours) = 192 In days = 24

• • • •

Annual leave with en-cashable at the time of retirement only 48 days of A/L hrs carry over to the next year Maximum numbers of annual leave hrs en-cashable are 7 days the rate of en-cashment = basic salary* 12 /365 days

2. Sick Leave • • •

sick leave in days = as per SIIB (sickness industrial injury benefit) scheme sick leave cannot be carried over to the next year sick leave is not en-cashable 3. Casual Leave

• • • • •

C/L in hours = 80 In days = 10 Casual leave cannot be carried over to the next year Casual leave leaves are en-cashable= 10 days Rate of en-cashment = basic salary * 10 / 365 days 4. Special sick Leaves

• • • •

Maximum no of days = as per SIIB scheme In case of prolonged sick leaves = 1 year SSL is on both bases with base pay & without base pay SSL is granted on the description of doctor In case of festival holidays following on a weekly rest day are substituted on the next working day Over Time Formula for overtime (all type of over time) = basic salary + house rent + utilities + colas +wheat allowance @ 1%/HRS Medical facilities

• • • • • • • •

Full medical cover for self Family medicine @ 7% of gross per annum Family care medical allowance per annum = Rs. 3840 First aid medical facilities to families Provision of Dental facilities Provision of vision facilities Cost of spectacles is not available Trained doctors on their own payroll

• •

Trained nurses on their own payroll First attendant on their own payroll Insurances Group insurance

• •

Death compensation = Rs.3 50,000 Permanent total disablement = Rs. 350,000 Allowances

•

Allowances added to the basic salary for provident fund deduction = COLA Gratuity

• • • • •

Rate of payment of gratuity = basic + COLA Upon voluntary resignation by employee = 1 month against 1 year service Upon retirement = max 36 gratuity Upon death basic + COLA + max up to 36 Upon dismissal of employment = nil Retirement

• • •

Normal retirement age = 60 yrs Whether extendable = no Any other retirement benefits = rehabilitation allowance Rs. 10,000 Rehabilitation award = Rs.10, 000 on retiring continuous 25 yrs of service Pension

• •

Min service to qualify for pension = 15 yrs Pension scheme is only for NMS Accommodation Allowances

• • • •

Percentage of workers provided accommodation in companies housing colony = 20 Rent charged =HR (house rent) deduction Entitlement to house rent allowance = 40% of the basic salary Free electricity ,gas and water

•

Cost to company/worker/month for maintaining workers housing colony= Rs. 6,000 Profit Participation Fund

• • • •

Profit is on basic salary Total amount of principal last paid by the company = Rs. 6,000/head, total amount =2,250,000 Total amount of interest last earned by the fund = Rs. 9290 Number of workers last eligible to the principal amount of the fund = Rs. 375 Promotions

• • •

Seniority bases Salary increase on promotion =2 increments ( 1 existing grade & 1 next grade) Job will be upgraded when the job content of any employee increases Education /Scholarships

•

• •

Detail of the scholarship given to the children of employees

Type College

Number 14

Term in year 4 YRS

School

-

-

Amount/yr Rs. 8400/ candidate -

Allowances/special increments to the graduating employees = no incentive for higher education/ qualification = reimbursement of education expenses + leave according to data sheet

Expenses Operations of Canteen Run by company

Meals served free of cost No Meals served at cost Yes Meals served at subsidized rates Yes Rs.0.50,0.75 Canteen servants 13 Total expenditure on canteen per Rs.1,126,988 month including wages of servants Total sale proceeds per month Rs. 9358

Cost to company/worker/month for the following facilities: • • • • • • •

canteen/ meal subsidy = Rs.1117 uniform expenses =Rs. 1600 per annum hajj expenses = 95% + leaves no of workers for hajj per yr = 09 workers scholarships for workers children = Rs. 700 per child no of scholarship = 40 chartered transport = conveyance allowance

Loans • • • • •

• •

Loans provided by the company = provident fund, credit security loan , motor cycle loan, computer loan Entitlement in each case = all grade factory staff Period of repayment= 3yrs,4yrs,5yrs Rate of interest charged = on P.F 16% , on credit security 6 %, on M/C & computer loan free Rate of leave fare assistance in each grade = Rs. 5500/ annum

They are ignoring their contractual workers .there is no proper compensation system for them, they should give them profit participation fund, HR, education allowance etc. They should appreciate the innovative ideas of the workers and should reward them for these ideas.

We have thoroughly studied the compensation system of UPL and found that UPL had a very excellent and high-quality compensation system. They are trying hard to compensate their employees so that they can fulfill their needs in order to motivate them. They continuously did the surveys in the market to analyze the compensation system of their competitors and if they found deficiency in their compensation system they try to immediately remove it. HRD has been successful in retaining its employees by off and on offering a clearly defined reward and incentive system.