COTTON WEB PRIVATE LIMITED

Final Project Report

ORSC 341 Section 2
Group 3
Haroon Nasir 16110221
Surhan Abbasi 16020221
Ali Singay 17090075
Talha Dogar 16020382
Ali Abdullah 16110192

Q1. How effectively is the human resource function of this organization contributing
to the fulfillment of its mission, objectives, and strategic plan?

In order to assess the efficacy of the Human Resource function in contributing to the
fulfillment of the companys objectives it must first be understood what those objectives are.
When three LUMS MBA students founded Cotton Web in 1998 their objective was simple;
produce the highest quality garments they can. The profits would come eventually. Over the
past decade the company has grown rapidly and is now worth millions of rupees. The
primary objective of the firm is to achieve production targets without any defects and to
meet the quality demands of foreign customers. To do this the firm tests its products at the
various stages of the value chain, all the way till the products are tagged, packed and
shipped out for delivery to clients. What makes these quality checks particularly effective is
that they are performed by an impartial and independent audit team.
To say that the Human Resource function of Cotton Web has been very effective in meeting
the firms objective would be true but somewhat misleading. The truth and veracity of the
statement cannot be denied because the firms objectives are being met, it is carrying out
its mission and all the while it is enjoying remarkably accelerated growth. While it is true
that the human resources function of Cotton Web is a contributor to the firms objectives
it is not crucial to the meeting of its objective. Or at any rate it had previously not been
crucial to its objectives. It is only now when the company is entering in to a period of
sustained and accelerated growth that the Human Resource function becomes necessary.
Cotton Web was founded in 1998 and it is only in 2012 that a formalized Human Resource
Department was established. Before the creation of the HR department the general
administrative body of the company took care of the basic Human resource functions such
as recruitment and salary decisions.
The department was established to modernize HR functions in an effort to ensure the
stability in the recent rapid growth of the company. The major clients of the firm are
European companies and so it is in the firms best interest to comply with HR policies,
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practices and ethics. By doing so voluntarily it lends an air of credibility to the company
especially since it is based in Pakistan which in present times does not enjoy the best of
reputations. In this regard it can be argued that although Cotton Web was very late in
establishing an HR department when it did ultimately do so it was not just a matter of
complying with international standards but rather was born out of a well-reasoned and
strategic endeavor. This is apparent in the reason the department was established;
modernize HR functions in an effort to ensure the stability in the recent rapid growth of the
company.
The department is still in a period of infancy and it is still managing primarily the higher
posts. This is a problem of incomplete transition to a full fledge centralized HR system. The
problems that arise from this decentralization are quite evident and are mentioned later in
the report.
However, the newer system is linking the firms objectives to individual incentives slowly
through performance pays and proper performance appraisal. These have ultimately
founded the basis of creating HR as a competitive advantage, and the improvements made
during the period from its establishment up till now provides evidence for this claim.
Q2. What are some of the problems of human resources management that have
been adequately solved or are now in the process of being solved by the
organization?
The HR department has solved several problems, which has contributed to the achievement
of strategic goals of the organization.

The first problem that arose for Cotton Web was that three founders and the upper
management no longer had the time to invest in recruitment and selection of new
employees. This was because the organization had entered in to a phase of rapid
growth. Recruiting, selecting and hiring employees were too time-consuming and it
took valuable time away from other strategic management issues. The upper
management needed a specialized HR department to recruit, select, train and develop

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employees. In an effort to solve this problem the management decided it was high
time to establish a formal HR department that would take responsibility for

recruitment, selection, and training and development functions.

The second classic problem that Cotton Web faced is in part a kin to the first problem
it faced. Management did not have time to address employee grievances and ensure
that the work force is happy. This is why a specialized HR department is required.
The HR department has taken over this function and is able to address grievances
and has been able to ensure that the work force is generally happy. Total satisfaction
is an absolute that can never be achieved but it is an ideal which can be striven for.
Cotton Web has been able to ensure through its HR function that its employees are

relatively happy.
Previously complaints were received by upper management and there was no concept
of privacy. But now with the formal establishment of the HR department all
complaints that are received have a degree of anonymity to them. This enables

employees to more confidently voice their concerns.

The organization has a large workforce totaling 3,000 employees. Managing these
employees was a considerable task. But now with the implementation of new time

management systems because of new technology it is relatively easier.

Noncompliance with European HR standards and practices was a hindrance in
obtaining new customers. But now the HR department has begun to ensure
compliance with these standards. This helps establish credibility and counter some of

the negative perceptions of the Pakistani image.

Previously individual pay was negotiated on an individual basis and the resulting pay
for the different positions feel on rates both above and below the market rate. The
rates have now been standardized and there is a uniformity and consistency to be

found in the pay across the organization.

The turnover rate for employees was high because of the monotony of the production
related jobs. The company decided to solve the problem by motivating the employees
to stay on with the company despite the monotonous routine. They did this by
starting a tradition of Family Days. This was series of frequent social gatherings for
the employees where they could bring their families and have a pleasant time.

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The job evaluation is now being done on a point system, which further emphasizes
the competencies, skills and knowledge required for the various jobs.

C. What are some of the major human resource problems that remain to be
confronted and solved?

The HR department is relatively new, it hasnt statistically analyzed developments

that correspond to changing workforce demographics. It is important that they do

that since the number of women in the white collar staff is increasing.
The lack of centralization regarding the recruitment of factory workers may be
problematic because of general tendency of departments to overstate their
requirements so as to increase their budgets. The managers will try to build some
slack in the staffing requirements for themselves which can ultimately increase costs

and foster a culture of overspending over time.

Aptitude tests for professional recruits are lacking as selection requirement. The
validation of the tests administered for recruitment and selection is lacking as the HR

department is relatively new.

For training and development they conduct seminars, workshops and orientation.
There are no role playing exercises which does against the stated objective of
imparting leadership skills to employees as employees cant be taught leadership

through seminars and lectures only.

Furthermore, HR mentions that the employees do not take the trainings seriously
and also asserts that the employees should take the responsibility of learning during
these training. In our opinion, this also reflects poorly on the HR department as they
have been unable to create urgency in the minds of the employees. The employees

should be counseled to change their behaviors.

Only 40% of the white collar staff has been sent so far for training. Only promising
employees are sent for training sessions which can potentially demotivate the
remaining employees. This also means that low performers are not trained and

influenced to move towards higher performance.

There is absolutely no flexibility in the work schedules.

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There is a lack of intrinsic motivation for blue-collar staff. There are some motivators
like transport, but these are also provided by most other firms. Their training is also
limited to show them the operation of machinery but no new skills are imparted.
There is no job rotation for blue-collar staff according to Miss Iman. This can also

cause higher turnovers due to boredom in the job.

The firm follows an average pay policy. This can be somewhat problematic in the
sense that the blue-collar workers could leave as soon as they get a better offer. And
better offers are available in the market which means a higher turnover. This is not in
line with the organizational goal of higher quality. You have to attract the best of the

best to provide the best of the best.

The report mentions that Cotton web focuses on compliance with the labor laws of
Pakistan such as the overtime law, minimum wage law and child labor laws. The
company does not provide evidence of any sexual harassment policies and procedures
that it follows.

D. What would appear to be among the most desirable solutions to these problems?
Provide specific detail and justifications for your recommendations.

Statistical analysis of the changing workforce demographics should be conducted to

be able to account for the increasing number of women in the workforce.

The recruitment of the factory workers should be completely centralized because of
the tendency of departments to overstate their needs in order to get a higher budget.
This would take care of the budget issues that could arise as a result of unhindered

decentralization.
Aptitude tests should be used for recruitment and selection. They are more jobrelated and test the candidates to gauge their aptitude with regards to the job.
Furthermore, the tests already employed should be tested for validity, especially
criterion validity. This would show whether people who perform well on the tests are

better performers as well or not.

For training and development the use of seminars, lectures and orientation would be
enough if not for the stated objective of Cotton Web with regards to its employees i.e.
Cotton Web wants to give its employees leadership skills. Leadership skills could

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perhaps be imparted through role-playing exercises in the training programs. Also

the training programs should be designed in such a way that they take the

suggestions of the employees and so be able to motivate them.

All employees should get the chance to partake in the training programs and should
not be discriminated against. This would lift their morale and would make them feel a

part of the organization.

Workers should have flexible schedules.
The lack of motivation in the blue-collar staff could be tackled by emphasizing upon
motivator (factors) as Frederick Herzberg stated. The job should be organized in such
a way that it reinforces motivators. The employers could employ job rotation; give

feedback and recognition to accomplish that.

Since the firm is reaping profits, it can afford to pay a higher than average salary to

its employees. This could curb the high worker turnover.

Laws and regulations dealing with sexual harassment should be put into place so
that any untoward incident can be dealt with effectively. This is important because
the number of women is increasing in the workforce. The existence of laws, and their
dissemination, dealing with sexual harassment will remind the employees of the
values of the organization and will hopefully prevent any unpleasant incident.

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Annex A
Interview with Miss Iman Masud Omar, Manager Organizational development and Mr.
Adil Raza, Assistant manager compensation and benefits.

I. The Organization and Its Mission

A. When and why was this organization established?
Cotton web was formed in 1998 as an entrepreneurial venture among three LUMS
MBAs. The company was started as a small concern but is now worth millions. The
company is one of the top 25 fastest growing firms in Pakistan.
Many European companies import garments from Pakistani firms to reduce their
costs. One of these firms is Cotton Web. Cotton webs major customers are Mango,
Tesco and Sainsburys which are quite reputable brands in Europe.
1. What are the principal needs and objectives that the organization is designed to
fulfill?
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The main objective of the firm is to achieve the production targets while limiting the
defect rate. The quality of the garment and safety of the end consumer is of prime
importance. For this, strict quality and safety procedures are adopted at every level of
production and operation to minimize the possibility to any complaint from the
valuable client. These steps include testing of product at various stages of the value
chain up till it is finally tagged, packed and shipped out. An impartial and
independent audit team is doing these inspections and quality checks. The company
intends to work with vision of producing quality goods as per international standards.
B. What budgetary constraints confront the organization?
The firm is not leveraged by debt. The only source of finance is the owners equity. So
the budgetary constraints arise from the decisions of the owners.
1. What are the sources of revenue for this company?
The only source of the firms revenue is the sales of the woven garments to the
international customers such as Mango, Tesco and Sainsbury.

a. For capital expenditures?

Retained earnings and additional investments from owners is used for capital
expenses.
b. For operating expenditures?
Revenues from sales cover all the operating expenditures.
2. What changes have occurred in the organization's budget in recent years?
Since they convincingly and gradually moved into success stage and did extension in
plant capability and capacity. The organization aims to grow in international market
and intends to cater major garments brands in Europe. Thats why firm is
continuously increasing its resources in order to introduce new styles, washes and
end product for customers around the globe all for all the seasons.
a. Have there been any noticeable increases or decreases in revenues?
The firms revenues are constantly increasing as it is targeting major players in
Europe and America. But one thing must be noted that the revenues are greatly
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sensitive to the Dollar value. Recently the drop in Dollar value has significantly
lowered the worth of revenues.
b. Have there been any new sources of funding?
No, the only source is the equity raised by the three owners. Increased revenues and
retained earnings are pertaining to the increased expenses.
c. Have any old sources of funding been reduced or eliminated?
No.
d. How have these trends affected management of the organization?
There has been no direct effect. Though the formation of HR department and the
planned implementation of HRIS can be attributed indirectly to the increased
revenues.
C. What is the total employment complement of the organization?
Cotton web has almost 3000 employees. There are about 50 employees in managerial
positions.
1. How these employees are distributed white collar throughout the organization?
The employees are distributed through the organization by departments. And within
the department they are classified by their skills e.g., managerial, professional,
technical, clerical, skilled craftsperson, semi -skilled operatives, unskilled laborers,
etc.
2. What have been some of the noticeable employment trends in recent years?
There has been a steady increase in the employments drifts from the last few years as
the sales of the firm are continuously growing. This indicates that to run its
operation smoothly and to cater the enlarged demand of its products company
staffing needs have also been amplified. The firm is also hiring more engineers and
skilled labor now.
3. Does the organization operate overseas? If so, do you employ Pakistanis or foreign
nationals overseas?
The company has an office in England where British nationals have been employed

II. The Human Resource Function, Diversity, and Legal Issues

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A. Does this organization have a formal and identifiable human resource function or
department?
1. When was this department or function formally established and why?
A formalized HR department was established in 2012. Before the creation of the HR
department, general administration took care of the basic HR functions such as
recruitment and salary decisions. As the company expanded rapidly, a need arose to
formalize the HR functions in a specialized HR department.
It was established to modernize the HR functions so that the expansion and growth of the
company carries on. As their major customers are European companies, they also needed
to comply with HR policies, practices and ethics recognize in Europe.
2. How is the human resource function or department organized to carry out the objectives of
the organization?
The HR department is still in infancy and is taking over the HR functions step by step. They
have an organization development (OD) function within HR which organizes training and
development and helps employees with their career paths. Compensation and benefits are
also handled by HR department, albeit only for the managerial positions.
In a garments industry where most of the firms are much disorganized, Cotton web has
managed to formalize its HR department which gives them a competitive advantage over its
competitors. Managers are now compensated on the basis of key performance indicators
rather than having a fixed salary. This motivates them to stress them towards the
organizational goals of higher quality products and reduced waste management.
3. How many individuals are directly associated with the human resource function or
department?
There are seven employees in total out of which 2 are employed in the OD function.
4. What are the academic and employment backgrounds of those involved in the function or
department?
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Most of them are MBAs from highly reputed institutes. Our contact person, Iman Masud
has a professional certification from HRCI.
B. To what degree is human resource management centralized or decentralized?
It is centralized for the managerial positions at least. For the blue collar staff, there is
partial centralization. For example, job descriptions are made by the HR department in
conjunction with the relevant departments but the recruitment of factory workers is
entirely decentralized.
C. To what degree has the human resource function used information technology to
manage information?
The HR department is in the process of implementing an HRIS which is a module of the
broader ERP system that the firm intends to employ within a certain time frame. The HRIS
system is planned to incorporate all the HR functions currently being done by the HR
department and also the tasks that will be required in the future.
D. How have shifting workforce demographics impacted the human resource
function?
The HR department is quite new so they have not statistically analyzed any developments
due to changing workforce demographics. But general observation tells that the education
level of the employees being hired is increasing and so is the cost of salaries. Female
workers have increased too especially in the white collar staff.
E. What is the perceived importance of the human resource function or department
relative to other functional operations of the organization?
HR department is still in the process of gaining acceptance and relevance within the firm.
Other departments have been inquisitive of the HR department and have resisted it at times
at well.
F. What legal challenges (if any) is the human resource function currently addressing?
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The firm has to comply with the labor laws of Pakistan such as the overtime law, minimum
wage law and child labor laws. There are no current legal cases against the firm.
The more critical challenge are the requirements if foreign customers. The European
customers are very concerned about fair labor policies and hold regular audits at the firm.
G. What recommendations do you have (if any) for reorganizing the human resource
function? Why?
The department is still in the process of constant change and organization so the question
of reorganization seems redundant. However the HR department has to take over all the HR
functions progressively so that consistency is ensured.
III. Meeting Human Resource Requirements: Job Analysis, Planning, Recruitment,
and Selection
A. Who is responsible for human resource planning and forecasting for the
organization?
1. What methods are used to determine staffing needs?
Staffing needs are determined by the expected demand of the garments. These demands are
conveyed to the relevant departments and they then decide how many employees would be
needed.
Turnover for white collar jobs is quite low and there is relatively low increase in the number
of jobs at this stage.
2. Does the organization focus primarily upon short-term or long-term human resource needs,
or both?
Both.
3. Are job analyses and job descriptions made for each position in the organization? To what
degree are they updated periodically?
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All positions are analyzed and job descriptions are written for all of them. They are updated
every year.
4. Is any human resource planning done? How is it being done?
Yes. There is a succession planning system. Recruitment policies are changing and
importance is being given to competencies as well. Trainings are being conducted on a
regular basis to help employees at all levels achieve skills that the firm requires.
5. Does the organization provide career planning and career counseling for employees? Why
or why not? If yes, how is this done and how effective is it?
The organization provides both career planning and career counseling for employees. It is
done to motivate managerial staff to stay with the organization. However this is done
informally most of the time and promises are seldom made.
C. Once staffing needs are established, what procedures are utilized for filling job
vacancies?
1. Who is responsible for staffing the organization- the human resource department or the
respective functional departments?
HR department is responsible for recruiting managers while hiring blue collar staff is the
duty of the respective functional departments.
2. What methods are used to recruit new employees?
Cotton web does not use newspaper ads. It instead relies on social media pages such as
LinkedIn to hire managers. Rozee.pk is another source of the recruitment pool. Blue collar
jobs are normally filled with the help of word of mouth. The location of the factory itself is a
rural area so labor is in high supply.
The firm is also under the process of creating an online careers portal on its website.
3. What methods and criteria are used for evaluating and selecting job applicants? Have
these methods been validated? How?
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Application forms are the basic way to evaluate the basic knowledge and education level of
the candidate. Then IQ, Mathematics and English tests are administered to the potential
employees. Finally there are panel interviews as well. Generally it was observed in the past
that the candidates who performed well in these tests and interviews, they prove to more
productive in the actual jobs.
4. Have you used employee recruitment through social network sites and through the
Internet? How effective are these?
Cotton web have used LinkedIn and Rozee.pk to recruit managers. These have been very
effective as the cost of recruitment is very low.
5. To what extent are new employee recruitment, evaluation, and selection procedures aided
or restricted by
a. established policies or practices of the organization?
The HR department has established guidelines for recruitment so they are generally helpful
for the process. For example they have policies about the minimum education and
experience levels for all managerial positions.
b. provisions contained in employment laws?
Employment laws are generally very relaxed in Pakistan but there is a compliance function
in the organization as well which makes sure that the Pakistani laws are followed as well as
the provision made by the European customers are fulfilled. The added profits due to
export, however, offset the increased costs. So these provisions are not a big hindrance.
c. Factors associated with local labor markets?
The disorganized state of other comparable firms is a problem when it comes to attracting
candidates from these firms. The blue collar staff is mainly enticed by the word of mouth so
local labor markets directly affect the quality of candidates. However, as stated above, there
is plentiful supply of labor in the area so hiring is often not a problem.

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6. To what degree does the organization seek to fill existing job vacancies from among present
employees or by recruiting new employees, and why?
The firm always prefers to promote employees from within. They evaluate the inside
candidates and their potential. If there are no inside candidates, then outside candidates
are recruited.
7. What selection processes and criteria do you use to select employees?
There are application forms and reference checks. There are IQ, English and Mathematics
tests as well. The final decision is made after a panel interview. There are no background
checks however.
8. How have these criteria been validated?
There is not enough statistical data to validate the results as the HR department is
relatively new.
9. What options do you provide for flexible employee work schedules?
There are no flexible work schedules for permanent workers. However, in exceptional cases
some contractual workers might be given liberty to work whenever they want or to work
over the internet.

IV. Developing Effectiveness in Human Resources: Training, Career Development,

and Performance Appraisal
A. Has the programs for organization supported employee training and
development? Why or why not?
Yes, the company promotes the employee training and development programs in order to
strengthen the performance of individuals and teams. The company wants its employees
to empower with higher skill levels combined with a better understanding of the job
function.
1. What kinds of programs have been established?
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Company arranges different workshops and seminars for its employees training and
development. These programs are more oriented towards job skills, abilities and strategic
goal attainment. Company also conducts orientation for the new employees. Informatory
sessions for the blue collar staff on the reduction of production flaws have also been
organized by the organization. All managers are given different training opportunities
according to their current skill and knowledge level.
2. How do these programs relate to the organization's strategic and operational
objectives?
The programs which the company uses for the training and development of the employees
enable the firm to be self-sustaining in the future as far as the succession is concerned.
The company intends to create such managers who are capable of decision making
without any outside assistance. Its training programs relate to the companys objective by
giving them firm leadership and supervisory skills.
3. Does the organization maintain its own training staff or are outside organizations
used for training purpose?
Company uses outside trainers for training managers. There are onsite trainings
conducted by supervisors for factory workers.
4. What proportions of employees have participated in training (in both general and
specific job categories) and development programs supported by the organization?
Around 90% of blue collar staff has been part of training and also 40% of white collar
employees have attended the training programs supported by the organization.
5. Are training and development offered in-house, outside the organization, or both?
Company uses both outside and in-house training and development for their employees.
The informatory sessions for the blue collar employees are offered in the organization.
Workshops, lectures and seminars for the white collar employees are held outside the
organization.
6. How has the effectiveness of employee training and development been evaluated?
After the training, trainees have to fill the evaluation form in order to evaluate the
effectiveness of training. Different kind of tests is also taken in order to assess the
trainees.
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B. To what extent have the organization's programs of employee training and

development been used in making decisions related to promotions and transfers
within the organization?
Most of the promotions and transfers are mainly based on the type of performance
appraisal he/she receives. But candidate is given preference who has received the
organizations training and development programs.
C. What processes and programs, if any, do you offer for employee career
development?
Company offers succession planning and management training programs. When a new
employee, lets say an engineer is hired, he goes through 6 months training. After this
training, he starts working as process engineer. Then after gaining experience and based
on his performance over the years he is promoted to assistant manager.
D. What options, if any, do you provide for flexible employee work schedules?
Company does not provide flexible work schedules for the permanent employees. In few
exceptional cases, the company provides flexible working hours for the contractual
employees.
E. What problems, if any, have been encountered in the administration of employee
training and development programs within the organization? What suggestions for
improvement can you make? Why?
The employees are not considering training and development as their own responsibility.
They are taking it as a part of the work just like other obligation of their job. The employer
wants their employees to acknowledge that this is their own responsibility and it is
essential for their continuous learning. This is the only way they get something out from
the training otherwise it would be just another compulsion.
F. What methods are used for evaluating employees for the purpose of determining
their effectiveness and any merited salary increases?
New performance evaluation method has been introduced by the organization in order to
determine the efficiency of employees. It rates employees on the basis of their performance
which is measured by the different performance indicators like sales targets, lead time
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maintenance and defects per 100 units. The employees get their pay raises according to
the ratings they receive.
a. What methods of appraising employee performance are currently being used?
New performance evaluation method has been introduced by the organization in order to
determine the efficiency of employees which include KPIs according to the job
descriptions.
b. Do employee performance appraisal systems actually reflect job performance?
Why or why not?
Yes, they do. Because, the performance indicators used by the new performance
evaluation system to assess the employees differ from one job grade to another. For
example, for production line workers these indicators are low defects per 100 units and
production targets. But for a marketing manager the indicator is certain sales target, and
low turnover for a human resource manager. As each indicator is related to the job being
appraised so, the performance appraisal system reflect the actual job performance.
c. How adequate or inadequate are the performance appraisal methods currently
being used? Why?
As the performance evaluation method is new and recently been introduced by the firm
thats why the firm is still in the learning process and constantly trying to improve the
current evaluation method.
d. Do they reflect the knowledge, skills, and abilities needed to successfully
implement the particular organization's strategic goals?
Yes they do. The evaluation method is based on the job descriptions, which makes sure
that the knowledge, skill and abilities required for the job are aligned with the firms
strategy. That being said, the job descriptions are still being updated and it is a learning
process for the HR department.
e. What factors other than job performance influence employee performance appraisal
outcomes? Explain.
Other than job performance, soft skills, educational skills, job abilities and other
competencies are very much influential in performance appraisals.

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V. Implementing Compensation Systems and Security

A. How are wage and salary levels and annual improvements determined?
The company has a proper rating system and grade system on the basis of which salary
levels and annual improvements determined.

1. Does the organization conduct periodic internal and external wage surveys?
Yes the company conducts both internal and market wage survey on the basis of which
the new wages are assigned to the employees.
2. Are salary levels adequate to enable the organization to attract and maintain an
effective work force? Why or why not?
The company offers average salary as compare to the market. In addition, it also offers
monitory and non-monitory benefits with excellent working environment to attract the
work force and reduce the job turn over.
3. Do differentials in salary grades appropriately reflect differentials in skills and
responsibilities?
The salaries are determined on the bases of the job grade which is directly related to the
skills and responsibilities of the employee. They have a point based job evaluation problem
which has been employed only recently.
4. How do salary levels compare with those of other comparable organizations for the
same or similar occupational and experience groupings?
Recently the company conducted a market salary survey on the basis of which it averaged
out the salaries. Before that, some of the jobs were paid above or even below the market
average because the contracts were individually negotiated. Now, there is a standardized
process.
5. Does the current reward system adequately reward employees with the requisite
knowledge, skills, and abilities necessary to implement the strategic plan?
The company reward system is satisfactory and there is room for improvement. The HR
department is currently working to improve the performance evaluation system so the
reward system can be more satisfactory.
6. What trends have taken place in salary levels over the past few years?
From last few years there is a rapid increase in the salary levels e.g. the salary of the line
supervisor last year was in the range of 16,000 to 20,000 and now it is from 20,000 to
30,000.
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7. To what degree is merit pay and incentive compensation used and in what areas?
How effective are they in achieving high levels of employee performance?
The company has performance base profit sharing system with all its employees and the
degree of sharing depends upon the grade of the employee.
8. Do you provide bonuses for executives? If so, how are these bonuses determined?
Do they reflect individual and/or organizational performance?
The company provides fixed bonuses per year for executives which are equal to their basic
salary. These bonuses are paid in two halves and it does not depend upon their
performances.
B. How adequate are non-wage fringe benefits?
1. How are they determined?
The non-wage fringe benefits are determined on the basis of performance indicators fixed
by the company. These indicators consist of targets achieved, maintain lead time, low
defects per 100 units, and lead time for recruitment and low employ turnover.
2. How do they compare with those of other organizations?
The company provides better non-wage fringe benefits as compare to other organizations
e.g. the company provide cars for its managerial level employee which is not observed in
the market. The company also provide pick and drop to its blue collar workers.
3. How have they changed in recent years and how will they change in the future?
As the company is growing rapidly so there is also improvement in non-wage fringe
benefits and in future it will get better with the better performance of the company.
4. Do you provide for family and medical leave? If so, please describe.
The company also provides paid family and medical leave. On per year basis there are 10
casual leaves, 8 sick leaves and 14 annual leaves.
C. Does the organization provide employee health insurance coverage? If so, how
have their benefits changed over time and how are they likely to change in the
future?
The organization provides health insurance coverage to its employees, which does not
cover the health problems of the employee before joining the company. The health
insurance program is improving with the passage of time by covering more and more
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health related problems. In future the company also intends to cover the complete health
issues of the employee both before and after joining the company.
The company has a contract with a private insurance company; this setting minimizes
false claims.
D. Has the organization introduced any special programs or activities to improve
health and safety conditions on the job (i.e., violence in the workplace)?
The company has clearly defined strict policies which are mentioned in the worker hand
book. There is proper health and safety mechanism which is regulated by the compliance
department of the company moreover there is external auditing system to ensure further
work place safety.

E. What efforts, if any, are utilized to maintain employee morale and job
satisfaction?
The company provide excellent working environment for its workers and the company
gatherings for employees and their families. The job trainings are also provided to enrich
the skills and to groom the employees. The HR department also taken in account the
informal employee feed backs to improve the services provided by the company to its
workers.
F. Does the organization provide for flexible work options such as telecommuting or
job sharing? Please provide details.
As the organization is a manufacturing company so it does not offer flexible work options
such as telecommuting or job sharing.

G. What improvements in compensation, employee motivation, and health and

safety should be made? Why?
The HR department is launching an IT programs to make its compensation programs more
effective and motivational. There is also an employee engagement program in which direct
feedbacks will be taken from the employees and on the basis of which decision regarding

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to them will be taken. The company has proper health and safety standards which are
regulated by both internal and external auditing firms.

VI. Enhancing Employee Relations: Employee Discipline and Labor Relations

A. What methods and procedures are available for resolving employee complaints
and grievances?
There are different methods and procedure for resolving employee complaints and
grievances. In case of complaints the identity of the complainer is protected and the issue
is forward to the disciplinary committee.
1. Are there clearly spelled-out formal procedures within the organization for handling
discipline cases? What are they?
There is a disciplinary committee headed by administration manager who is also
responsible for industrial relations. It is his responsibility to investigate the complaints
and grievances and give decision about them.
2. How often are employees disciplined or discharged?
In white collar till now there are no disciplined or discharged issues. In blue collars there
were a few such issues which were investigated by the disciplinary committee and few
were also discharged.
a. What are the major causes of such problems?
Violation of company rules, disciplinary issues and harassment of fellow clique are the
major causes of such problems.
b. How have these been dealt with by the organization?
The rules are clearly given in employee hand book moreover the administration manager
makes sure the discipline of employees and if there any violation the disciplinary
committee takes action.
B. To what extent have employee tardiness, absenteeism, and turnover been
problems?
There are penalties if the employee exceeds certain level of tardiness or absenteeism.
1. Have these problems been studied to determine their most likely causes? What are they?
There has been no formal study of these problems.
2. What steps have been taken to resolve these problems, if they exist? What steps should
have been taken? Why?

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In order to tackle the issue of absenteeism and tardiness the company has punch in and
punch out card system which automatically keep record of the employees.

C. What employee restrictions (if any) does the organization impose on employee
free speech, surfing the Internet, and unhealthy behavior (smoking) on or off the
job?
The Directors have open door policy and gave the right of free speech to the employees so
they can walk in to the directors office and discuss their problems.
Internet facility is only provided to the employees who require it for official work. The
social networking sites are mostly banned in the company.
As the company is a production facility therefore, in the working place food and chewing
gum are not allowed. There are only a few small areas for smoking too. The rest of the
facility is off-limits.

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