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HUMAN RESOURCES MANAGEMENT PRACTICES

PREVAILING IN DESCON ENGINEERING COMPANY

Submitted To: Submitted By:


PROF SAPNA SURI SUNITA MISHRA
ROLL NO-09024
MBA-HR

Padmashree Dr.D.Y.Patil University


HUMAN RESOURCE DEPARTMENT

TABLE OF CONTENTS

PAGE
SERIAL NO CONTENTS NUMBERS

1 EXCUTIVE SUMMARY 3

2 INTRODUCTION OF DESCON ENGINEERING LTD 4-10

3 HUMAN RESOURCE DEPARTMENT 11-14

4 MANPOWER PLANNING & JOB ANALYZING 15-17

5 RECRUITMENT & SELECTION 18-24

6 TRAINING & DEVELOPMENT 25-30

7 PERFORMANCE MANAGEMENT SYSTEM 31-34

8 REWARDS & REMUNERATION MANAGEMENT 35-36

9 INDUSTRY RELATIONS 37-38

10 BIBLIOGRAPHY 39

EXECUTIVE SUMMARY

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HUMAN RESOURCE DEPARTMENT

Descon is the one of the leading company in project based business to business
market in Pakistan. This summary is all about the Human Resource Department
of Descon Engineering Company. We will discuss about the introduction of
Descon in first chapter. The second chapter will tell us about the structure of HR
Department in Descon. The third chapter shows planning and job analyzing steps
in the department. The fourth chapter will help us to know about selection and
recruitment procedures. The fifth chapter is all about training and Development
through implementation and evaluation. Sixth chapter will give a knowledge how
Descon conduct its Performance Appraisal System. The seventh chapter defines
the compensation management. And the last chapter explains how this department
handles the disputes and procurement procedures.

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HUMAN RESOURCE DEPARTMENT

CHAPTER NO.1

INTRODUCTION

History
Over the last three decades Descon has evolved into a multi faceted Engineering
and Manufacturing concern and has further spawned a group of ventures with a
diverse activities portfolio: Project Management, EPC, Engineering,
Manufacturing, Construction, Maintenance, software development, Mining,
Chemicals and Trading, While the group companies operate independently under
a corporate structure, Descon Engineering remains the flagship company and
provides the associated identity to its affiliates.

The company is unique in its resources base with in house capabilities for Design
Engineering, Manufacturing, Construction and Maintenance Service. These are
applicable to a wide variety of projects related to Industrial plants, Energy and
Infrastructure development for which services are provided selectively or on
turnkey/ EPC basis.

Project management expertise vested through sophisticated IT based systems is


one of the key elements in achieving successful culmination of projects. The
company’s operations span Pakistan, UAE, Saudi Arabia, Qatar, Oman, Egypt
and Afghanistan. Joint venture partners and technology alliances include JGC
Corporation Japan, Enerflex Presson, Canada and Eckrohr Kessel, German. The
roster of clients and end users is replete with auspicious names such as Sabic,
Aramco, Adnoc, Borouge, Gasco, Qatar Petroleum and WAPDA, NHA, OGDCL
at home.

All establishments are system oriented with ISO and OHSAS certifications and
ASME stamps. HSE achievements are reflected in the statistics with over 350
million man hours of work executed. Considerable investment is made in human
recourses focusing on development.

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Descon is project oriented and client driven. Quality and HSE are taken as Value
adders and the company culture encourages teamwork and innovation. With all
these attributes and resources, the company is well placed to compete and succeed
in the local as well as international contracting arena while being recognized as a
quality service provider and manufacturer of capital equipment. The synergy
between various business areas fuels strategic growth by providing cost effective
solutions.
Vision

“To become a world class engineering, manufacturing and construction company


operating internationally”.1

Mission

"To provide the valued customers with cost effective and reliable solutions in
project implementation and be recognized as the leading manufacturer of
high quality equipment for plants." 2
Core Values
The purpose of Descon is to bring prosperity and well being to the stake holders
and society at large by adding value through engineering, technology and
management.3

Integrity

The integrity of Descon is realization of its corporate Social investment and


to play a leading role within spheres of influence. The aim of the company to
work for achieving world class standards of openness and transparency
towards all of their stockholders and serves the communities. They want to
become the knowledge-based corporation in the world, capable of sustainable
economic growth and greater social cohesion.

1
http://www.descon.com.pk/Company/visionAndMission.aspx
2
http://www.descon.com.pk/Company/visionAndMission.aspx
3
http://www.descon.com/Qhse/corporateSocialResponsibility.aspx

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HUMAN RESOURCE DEPARTMENT

Corporate Social Responsibility

Descon Group’s business activities are based on relationships with many


stakeholders, including customers, shareholders and other investors,
business partners and the community at large and employees. Descon
believes that earning the trust of these stakeholders through fulfillment of
its responsibilities as a good corporate citizen is a key element in enhancing
management quality and corporate value.

While operating globally, they touch upon many people. They would set
CSR Objectives in the annual plans to take a leadership position in this
regard. They believe in transparency and giving access to the information
to people about the life cycle of their products and services.

The core issues in their CSR strategy are given below,

• Compliance to our core and operating value


• Sustainable Business
• Environment
• Corporate Governance
• Community philanthropy
• Contribution to educational programs
• Promoting multicultural workforce
• Gender Empowerment
• Protecting Human Rights
• Honesty and integrity in our policies.

These strategies require commitment from top to bottom level of their employee’s
relationships. Because they want to see a healthy and safe world and trying to
achieve their goal by using best practices at their premises. The annul objectives
for CSR focus on six areas; - Business Integrity, Environment, People,
Community, Human Rights and Suppliers. These all areas are integrated into
Descon’s core values.

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HUMAN RESOURCE DEPARTMENT

Business Operations
Descon’s engineering know-how is vested in various business areas across the
company. All engineering facilities are equipped with the current software
packages in IT-based environments and specialize in niches relevant to the core
activity of a Business Area. At the forefront is JGC Descon Limited (JDL), the
joint venture company which acts as engineering wing with capabilities in basic
and detailed engineering for plant design. For JGC Corporation, it is key offshore
Satellite Engineering Center for engineering of major hydrocarbon energy
projects in the region.

To enable value-addition in the field of equipment supply, the Manufacturing


Business Area in Pakistan has its own design group for engineering process plant
equipment and coded items mainly in accordance with ASME codes

Equipment-oriented engineering capability is also present at a greater scale in


Descon, the joint venture company in Saudi Arabia. This operation also has
extensive capabilities for electrical design to support its mechanical and electrical
shops.

The EPC Business Area is also evolving into an autonomous entity which has its
own engineering expertise for undertaking projects on a turnkey basis. These
range solution for existing plants to ‘Greenfield’ facilities pertaining to process,
utilities and offsite areas.

The infrastructure projects Business Area has developed its own in house design
group for projects related to water reservoirs and irrigation channels. Descon is
the only Pakistani company which has the complete ‘design and construction’
capability for large infrastructure projects.

Functional Areas at Descon

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HUMAN RESOURCE DEPARTMENT

There are two Heads of departments in Descon.


1. Business Support Departments
2. Business Area

Business Support Departments


These areas are helping and supporting the Business areas and the Operation level
areas. The corporate level and administration of Descon are working in these
departments. In these departments, there are main heads of Descon,

Company Supervision Department (Admin)

This department consists on executives who supervise the rules and regulations.

Finance Department
This department supports all financial issues, information, trend analysis, and
make financial statements to for future decision making.

Project Management System (PMS)


This department provides all information and manages all projects in which
Descon’s employees are working through a scientific system. This system tells
what time they should complete the project, how to complete the project and all
plans which can be useful to generate efficiency level at maximize position.

Human Resource Department (HRD)

This department handles the human power of the Company. Make policies and
procedures and helps to achieve organization’s goals by hiring competent
workforce and retain through training and motivating.

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HUMAN RESOURCE DEPARTMENT

Proposals Department (Bid Creators)


This department creates bids for making projects, plan how to start project, this
department also conducting research and development and making strategies to
maximize those areas of Pakistan in which they work.

Marketing (B.D)
This department shows off all competencies and strength through Integrated
communication technology (ICT) and advertising in their websites, Expo Center,
and Push strategies for Stake holders.

Strategic Planning
This department checks overall market structure and find out all those
opportunities which can help out in order to survive in the market.

Construction Management
This department manages the project handling issues and areas in which they are
constructing continuously and new as well.

HSE (Health Safety and Environment)


This department plays an important role for CSR and social marketing as well by
strict policies to make the environment of Descon clean, safe and environment
friendly.

Business Areas

These areas are working under Business Support Department.


These areas are further divide in National areas (Pakistan) and International
Business areas.

National Areas
There are regional and site branches in Pakistan.
• Karachi
• Lahore
• Islamabad

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HUMAN RESOURCE DEPARTMENT

International Areas
These areas are representing Descon as Pakistan’s Dynamic Engineering
Company in different countries of the world. These countries are;
• Qatar
• Kuwait
• United Arab Emirates (Humria)
• Saudi Arabia
• Oman

Areas of Specialization
There are different areas of specialization which are following;
• Manufacturing
• Engineering Procurement and Construction (EPC)
• Plant Construction and Services
• Infrastructure Project

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HUMAN RESOURCE DEPARTMENT

CHAPTER NO.2
HUMAN RESOURCE DEPARTMENT

Human Resource Management


The ultimate success of any organization depends on its Human Resource. This
makes Human resource a challenging and critical element for managers to
control.

Thus Human resource of Descon is not only a critical asset today but has become
an important source of competitive advantage in dynamic industry of engineering
and construction. With the help of HRD, Descon’s rating in Pakistan is No.1 in
Engineering and Construction based industry. They are standing for many years
and no one even touch to their rank because of competent and willing work force.
Organogram of HRD

Units in HRD

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HUMAN RESOURCE DEPARTMENT

Human Resources Planning

It is a starting point of human resource management. If an employee leaves the


firm due to any reason, which may be deliberate resignation to move to another
firm, or any other reason such as, retirement, termination or death, a vacancy is
formed at the respective department of the Descon. The department, carefully
analyzed in all its respects identifies this vacancy and the job description is
forwarded to the Human Resource department.

Job analysis

It is the procedure for determining the duties and skill requirements of a job and
the kind of person who should be hired for it.

a) Job Description

It is a list of job’s duties, responsibilities, reporting relationships, working


conditions and supervisory responsibilities. Descon Engineering Company makes
a job description before recruiting people.

b) Job Specification

A list of job’s “human requirements” that is, the requisite education, skills,
personality, and so on. They also make job specification hire the right people at
the right place.

Recruitment and Selection

Descon Engineering Co. Maintains a strict difference between external


recruitment and internal recruitment. It has given different names to both these
functions that are

• Resourcing refers to internal recruitment the Descon Engineering Co.i.e. they


try to attract candidates for vacant jobs from within the organization, and

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HUMAN RESOURCE DEPARTMENT

• Recruitment only refers to external recruitment that is locating candidates


from outside the firm, which may include fresh graduates or people working in
other firms.

Training and Development

The Company holds that orientation program is very necessary for the Company
as well as for the new employee. The unit of Training and Development performs
several important functions for the Company, like orientation training,
performance appraisal and the general Training and Development. Broadly
speaking, Descon Engineering Co. holds a strict distinction between training and
development.

Performance Management System

Descon Engineering Co. gives the importance to their employees as well as their
performance. There are certain standards that are set by the Company to check the
performance of staff. They give the incentives and bounces on the base of check
performance. Descon Engineering Co. follows all the international rules when
done performance management.

Rewards and Remuneration Management

Descon Engineering Co. gives utmost importance to rewards and compensation


packages because this is the most crucial factor for retaining key employees. ...
The amount of bonus depends on the amount of profit Descon Engineering Co.
World makes.

The amount of bonus and increments depend on the profit of Descon Engineering
Co. world, then Descon Engineering Co. Pakistan, then for each department and
finally for each employee. The Gross salary includes a number of allowances.

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HUMAN RESOURCE DEPARTMENT

Industry Relation
As one of the international Companies, Descon employees almost 35000 people,
representing more than 5 nationalities. This diversity lies at the heart of their
values and supports their growth because they are a Pakistani company and now
spread in the Asian Market. There is cooperative environment and relation
between lower and upper staff is good. Expenses incurred on professional
medical consultation including periodic health check- ups and costs of any
diagnostic tests.

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HUMAN RESOURCE DEPARTMENT

CHAPTER NO.3
MAN POWER PLANNING AND JOB ANALYZING

This chapter tells us how Man Power Planning and Job Analysis are important
to select a job and the need for hiring or training the employees in Descon
Engineering Company. The Company allocates the budget through they are
receiving from profit margin. The opportunities find out when they work on
project, and if something is missing in their specialized field. The budget for new
employees and training the employees should be allocated. Then, the jobs and
work is defined and analysis the job and person who can be do that type of job
excellently.
Criteria for Human Resource Planning

HRM Audit

The HRM (Human Resource Management Audit) of Descon uses this framework
to try to answer such questions as: Are the mission and strategy of the human
resource organization designed to match the business strategy of the Descon
Engineering Co.? Does the design of the human resource organization enhance its
ability to accomplish its strategy? Are the kinds of people who run the human
resource function good choices for the ongoing task?

HR Policy and Manual

HR policies vary considerably from one organization to another, depending on its


size, the nature of the workforce and the position regarding union recognition, but
here are the main policy areas of Descon’s which are recognize as HRD
executives in the Business Support Areas.

Criteria for Job Analyzing

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Job analysis is the process of determining the nature or content of a job by


collecting and organizing information relevant to the job. A complete job analysis
contains information relating to the following factors which deemed appropriate
to fully describe the nature of the job. These factor are considering while the job
is analyze for new and old employees as well in Descon Engineering Company.

Key Components of Human Resource Development

There are three fundamental component areas of human resource development


(HRD):
1) Individual Development (Personal)
2) Career Development (Professional)
3) Organizational Development

The importance of each component will vary from organization to organization


according to the complexity of the operation, the critically of human resources to
organizational efficiency, and the organization’s commitment to improved human
resources.

Job Analysis Interview Guide

Job analysis interview guide is a tool that can be used in conducting job analysis
process. It describes list of questions that should be asked to explore the content
of a particular job. What is the job overall purpose? What the inducement does
and, if possible, how he/she does it?

Writing Job Description

Most widely used job description format contain the following five sections”
(1) job identification
(2) job summary or purpose

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(3) job duties and responsibilities


(4) accountabilities
(5) job specifications
The most important thing to remember is that all job descriptions within Descon
Engineering should follow the same format.

Strategies for Designing and HRD Program

HRD philosophy that states unequivocally that effective human resource


development can improve performance (i.e. change behavior, produce results,
increase productivity). This provides a framework for the HRD program. It also
provides a common objective for each of the members of the HRD staff of
Descon Co. on which to focus their efforts.

Job Time Study

Time study is a work measurement technique for recording the times of


performing a certain specific job or its elements carried out under specified
conditions, and for analyzing the data so as to obtain the time necessary for an
operator to carry it out at a defined rate of performance

CHAPTER NO.4

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RECRUITMENT AND SELECTION

Descon maintains a strict difference between external recruitment and internal


recruitment. It has given different names to both these functions that is: Descon
Engineering is a multi dimensional engineering, construction and manufacturing
company operating in Pakistan and the Middle East. With over million man hours
of construction work executed in industrial and infrastructure projects, Descon
employs over 34000 professionals and other personnel.

Resourcing refers to internal recruitment the Descon that is; they try to attract
candidates for vacant jobs from within the organization. Recruitment only refers
to external recruitment that is locating candidates from outside the firm, which
may include fresh graduates of people working in other firms. However, it must
be noted that Descon prefers resourcing to recruitment.
The Resourcing Process
The resourcing process at Descon is conducted in a well planned in an efficient
manner. Resourcing process can be summarized as:
• Identification of Job Vacancy

• Job Description forwarded by respective departments

• Determination of Grade and Designation

• Job Posting

• Candidates contact HR Department

Steps in the Resourcing Process

Now we will discuss all the steps involved in the resourcing process in turn.

1) Identification of Job Vacancy

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If an employee of the company leaves the firm due to any reason. This may be
deliberate resignation to move to another firm. This may also any other reasons
such as, retirement, termination or death, a vacancy is formed at the respective
department of the company. The department, carefully analyzed in all its respects
identifies this vacancy and the job description is forwarded to the workers of the
human resource department.

2) Job Description Forwarded By Respective Department

Then the department, in which the vacancy is created, sends a complete Job
Analysis Information to the HR Department. Thus, the Department forwards a
complete document to HR specialists so that they can analyze the job correctly
and efficiently.

3) Determination of Grade and Designation

When respective departments have identified the vacancy and the job description
has been sent to HR Department, the HR Department decides on the grade and
designation of the vacancy.

4) Job Posting

This is the most common practice at Descon. Moreover; the reporting time is also
specified within which the candidate should contact the HR Department.

5) Candidates contact HR Department

After job has been posted, the candidates who are interested contact the HR
Department via mail, telephone or face to face. The candidates will include
• People working within the same branch of Descon.

• People working in some other branch of Descon.

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Management’s View on the Resourcing Process

The management of Descon holds that resourcing or internal recruitment is better:


Because people not only seek a job at Descon but also find a prolonged career in
the company, basically it is Project Company.

The Recruitment Process

In Descon recruitment refers to external recruitment only that is people are hired
from outside the firm. The recruitment process involves the following steps:
• Internal unavailability of appropriate personal

• Screening of Available Resumes

Sop for Clerical/ Labor Job


Descon engineering is undertaking a major expansion in its capacity to provide
comprehensive, multi discipline engineering services in petroleum oil and gas,
power generation petrochemical and chemical industry sector for EPPC projects.
It is project based organization. Descon is renowned of diverse offer of training
and development measures. They provide state of art facilities to conduct internal
or external training.

These trainings covers development of fresh gradates, project managers,


department heads, technical staff and potential leader.

Criteria for Officers Job


1) In charge Quality Assurance & Quality Control

B.E (Mechanical / Metallurgy) with minimum 08 years of experience in the field


of QA/QC, with at least 03 years as Head of a QA/QC team. The candidate
should ideally have experience related to plant construction & Maintenance in Oil
& Gas, Fertilizers, Power Plants and Petrochemicals Sector.

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2) Incharge Production

B.E Mechanical/Metallurgy with 10 years of experience in fabrication of Steel


Structure, Boilers, Heat Exchangers and process equipment etc.

3) Site Managers (Mechanical, E & I)

B.E/ M.E (Mechanical, Electrical) with 15-20 years of relevant experience. Able
to lead the multi-discipline project team and responsible for the overall
management of the project site to which assigned such that the contractual
requirements and obligations are fulfilled, in accordance with drawings and
specifications and all is completed within in safety goals set for construction,
within budget, and within schedule.

4) Construction Managers (Mechanical, E&I)

B.E Mechanical/Electrical having more then 10-15 years of experience of filed


construction in mechanical works with proven leadership & entrepreneurial skills.
Motivate construction team, Ensuring cost effectiveness and work progress to
deliver the output as per schedule, Ensure implementation of Descon’s integrated
project management systems and related procedures at the site.

5) Incharge Planning and FEDC (Civil, Mechanical, E&I)

B.E Civil/Mechanical/Electrical with 10-15 years working experience on large


mechanical construction projects (Oil& Gas, Petrochemicals etc).

6) Incharge Fabrication

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B.E. Mechanical with more than 10-15 Years Experience in Site Engineering Oil
& gas field construction, refineries, and Storage terminals. Must have sound
Knowledge in plant Storage Tank Fabrication and erection and piping works.

7) Incharge Stores

MBA/ M.COM, or equivalent with 8 years experience. They have Knowledge on


Tool, Plant, Consumables, material identification and handling. Familiar with
ACCPAC / any computerized Inventory Control Software.

8) Incharge (E&P)

B.E Mechanical having 5-7 years experience or DAE with 10-15 years experience
in maintenance of hydraulic and pneumatic systems of heavy equipments. They
should be able to lead a team of technical persons and having strong
communication skills. Computer knowledge shall be preferred.

9) Incharge Commercial / Sub-Contracts

B.E (Civil/Mechanical) 10 – 15 years of experience. They have experience in


knowledge of FIDIC and other international forms of contracts.

10) Mechanical Engineer (Piping, Equipment, Structure)

B.E Mechanical with more than 5 - 8 Years experience in Erection of piping,


Hydro testing and commissioning in mechanical construction of plants.

11) Engineer FEDC (Civil, Mechanical, Electrical)

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HUMAN RESOURCE DEPARTMENT

B.E Mechanical having 5-8 years of experience in field related engineering


information (drawings, project documents) in oil and gas. Candidate should be
able to ensure the correct estimation of BOQ and BOM from drawings and
breakdown in to workable package as per WBS and OBS. Sound knowledge on
P3, or equivalent.

12) Planning Engineer/Area Planner (Mechanical/Civil/E&I)

B.E Mechanical/Civil/Electrical with 3-5 years working experience on large scale


construction projects. Must be well versed with Primavera Project Planner, MS
Office. Incumbent will be responsible for project process monitoring,
implementing of planning & monitoring systems, analysis of weekly project
performance report, assistance during project launching, resource estimation,
budgeting and cost analysis of project activities.

13) Engineer Cost Control

B.E Mechanical / Civil having 3-5 years of experience. Having Knowledge for
monitoring financial health of the project as compared to approved budget.
Prepares Quarterly Cost/Revenue forecasts.

14) Rigging Engineer

B.E Mechanical/DAE Mechanical having 5-7 years experience. Must have


knowledge of all crane operation related to rigging, heavy lifts.

15) QA/QC Engineer / Inspector

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HUMAN RESOURCE DEPARTMENT

B.E / DAE Civil, having sound knowledge of related materials, specification and
testing.

16) Material Engineer

B.E / B.Sc Mechanical / Civil / Electrical with 10 years experience. They must
have worked in same capacity in Mechanical construction Projects, Knowledge
on materials identification and handling.

Criteria for Executive Level Job


The criteria for executive level job are usually done for company’s most
experience employees who are very competent and knowledge of company’s
departments and they have the ability to perform their job as executive. Descon
Company prefers those employees who have ability to do that job.

The employee’s knowledge status and experience is based to do that job. The
Board of Directors selects the vertical promotion of employees who are eligible
for that. If the votes are more than opposition, they select for those employees as
executive level job for new or existing jobs. They give a chance of shareholders
also who are capable to do that job.

CHAPTER NO.5
TRAINING AND DEVELOPMENT

The unit of Training and Development performs several important functions for
the company, like orientation training, and the general Training and
Development.

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Orientation Process and Induction of New Employees


The Descon holds that orientation Program is very necessary for the old as
well as for the new employee. The entire process of orientation is conducted
at Descon as follows:
1) Need determination for orientation program
2) Designing of orientation program
3) Implementation of orientation program
4) Analysis of orientation programming And Development

Steps of Orientation Program

Need determination for orientation program. When an employee joins Descon,


the HR Department, the department in which the employee has been selected and
the top management determines the need for the orientation program. If the
candidate has been transferred from some other country to Descon Pakistan, it is
very necessary to acquaint him to the culture of the country and the general
business practices. He is of course, aware of the Descon engineering culture but
he may be informed about the new department he has joined and about his new
duties and authority.

Designing of orientation program At Descon the orientation program is designed


by
• Head of HR Department
• Training Specialists
• Immediate Supervisor
• Head of the Department in which the employee is selected

In designing the orientation program, the length of the program depends on the
employee for whom the program is conducted. If the employee has joined Descon
from some other country the program is very lengthy as he is not only to learn the

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culture of the organization but also the culture of the country as a whole. The
program usually includes

• History, policies, practices, rules and regulations of the organization


• An overview of the department, the employee joints
• An introduction to the work environment, co-workers, superiors, and sub-
ordinates.

Hence, in this way the new employee is thoroughly acquainted with the Descon
culture and thus can perform his job effectively. Implementation of orientation
program at this step management simply implement the already design orientation
program effectiveness.

Analysis of Orientation Program

The HR Department of Descon holds that the feedback on the success of


orientation program is very necessary. The follow-up is conducted in the
following manner:

Discussion amongst Key Personnel

A comprehensive discussion is conducted by the HR Department with the


immediate supervisor and the Head of the Department of the employee to
evaluate the prose and corns of the orientation Program. If he is comfortable with
the Descon environment, the Program is a success or vice versa.

Management’s View on Orientation Process

The management of Descon believes that orientation Program necessary because


of socialization and knows how about company’s policies and procedures. The
purpose of this step is to introduce the new employee with the work unit,
organization, peers. Tell them the rule and regulations of the company. In

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different companies different persons are responsible for this but when we talk
about Descon manager gives orientation.

Training Policy

Basic purpose of training is to update the knowledge of employees and enhancing


their skills. Today organizations want professional employees because they have
come know the importance of employee that’s reason organization call employees
“their most important assets”. Due to which companies send their employees on
different types of workshop, seminars and other educational programs. Even
some companies provide opportunity of getting knowledge on the cost of
company.
Training Need Assessment
The training program of Descon normally for the period of lesser then six months
and its purpose is to investigate strength and weakness after that making effort to
remove these weaknesses. They analyze that employee need training by self
assessment, performance record, and questionnaire. The handouts which they
provide to trainee develop by themselves not net based. All the cost incurred by
the company let it be in-house training or training organized by the Descon
Engineering Co. The employee normally needs training about his skill,
knowledge and career development.

Training design
After the need assessment process is complete, the designing process starts to
train employees in systematic way.

Setting objectives

The objective of the program is described in which a statement is passed. In this


statement, the goal of the training program is written that what thing they should
achieve by conducting this program. So the statement should be specific.

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HUMAN RESOURCE DEPARTMENT

Developing lesson plan

The statement is not enough, so the whole lesson plan is prepared in which each
and every activity is written in this portion.

Selecting trainer/leader

The company select the trainer based on the training criteria, No. of employees
and their skill enhancement. If the No. of employees are less or any specific
criteria demands to train through the outside trainer, they outsource the training
program.

Preparing material

The material is prepared by Trainer if the trainer is of the organization.

Selecting program methods and techniques

Descon mainly uses the following training and development methods are:

• In-Housetraining On-the-Job Training


• Program Conducted Abroad

In-House Training is the most common method used at Descon. Under this bank
have two options;

On-the-Job Training:

Descon give the training to their employees on the job by hiring a trainer from
outside or from within the organization. But company selects the trainer very
carefully and only professionals individuals in field. Training In Institutes Within
The Country: If the trainees need training in a specific technical skill, which the
company cannot provide economically, it sends the employee to institutes where
they get the requited training. The trainee interacts with new people and can make
contacts for the organization.

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Training Program Conducted Abroad

Employees are sending abroad for special training and development Program
conducted by the Descon Group. This training Program may be conducted in
other countries Dubai or anywhere else where the Descon exists.

Scheduling the program

The scheduling of the program is helping to conduct the program in right


direction and the employees learn in training.

Implementing the Program

After designing the program, the implementation process is playing Back Bone. If
all the process of designing is complete but the program doesn’t held due to
certain reasons, their will be loss of money, time and efficiency. So Descon’s
HRD convincing their executives to implement the program according to training
design will be benefit to the organization.

Criteria for training and Evaluation


The criteria for training and evaluation is to help that how well the program will
benefit to the organization in a whole. Descon’s criteria contain four parts;

Select the Evaluation Criteria


In this segment, the base for evaluation the training program set. If the base is
accurate, so the true results will be found.

Determine Evaluation Design

The evaluation design helps employees to set accurate base in which the criteria is
set.

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HUMAN RESOURCE DEPARTMENT

Conduct Evaluation of Program

The program is conducting on the basis of setting evaluation criteria. These


criteria may be through questionnaires, Examination Papers, presentations or
observation.

Interpreting Results

The results of evaluation criteria helps the Descon’s Engineering Company that
how well their training staff learn and enhance their abilities for future role. If one
person get full fledge train in this specific area of training, it is possible that he
may receive rewards like, increase in salary or Promotion. Because he is now the
precious asset of the organization and everyone wants to retain his precious asset.

Descon Training Institute (D.T.I)

Descon Has Specific institute (D.T.I) in the employees and especially technical
workers are trained and become company’s dynamic asset. These institutes have
capacity to train all types of technical works done in Pakistan and other places.

CHAPTER NO.6
PERFORMANCE MANAGEMENT
SYSTEM

A performance management system is very


important in order to check efficiencyand
effectiveness of work. Actually it is the
process of creating the work environment in
which people are enabled to perform their
best abilities. It starts from the necessity of

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HUMAN RESOURCE DEPARTMENT

the job and ends with the employee leave


from the organization.

This picture indicates that How Performance


management system works to evaluate the
job and after evaluation, the management
decides what strategies in which they can
grow by considering the approach of their
work force and set standards on the basis of
evaluation. These standards are in shape of
rewards and sanctions. The rewards are in
the shape of promotion; increase their pay or
some non-monitory reward.

Performance Appraisal System

Performance Appraisal Process


Descon Engineering Company uses HAY
Methodology as a Performance Management

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HUMAN RESOURCE DEPARTMENT

System to check the performance of


employees of the company. This method is
used by most of the world’s largest
companies. This method helps to evaluate
the right people, right job and execution of
company’s strategies.

A thorough Hay method is followed by


Descon Engineering Company, which
determines the performance appraisal for
each employee. At the end of the year, the
manager and the HR Department at Descon
evaluate the performance of each employee
formally. At some branches of the Company
in Pakistan, management checks the
performance on monthly bases.

Goal Setting

The strategic planning of Descon is to match


the employee’s goals with organization
goals.

Performance Evaluation Method

Descon set the appraisal criteria according to


the national and international laws because it
is a Multinational organization. The
evaluation process consists of various
techniques which are adopted according to
the Hay Methods of evaluation.

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HUMAN RESOURCE DEPARTMENT

The main Hay Group methodology, Hay


Group Guide Chart-Profile Method of Job
EvaluationSM provides with a consistent and
objective framework to:5

Analyze Organizational Structure

The first step of performance appraisal


method is to analyze the structure of the
organization and then identify those ways
which help to make it more effective.

Descon Company is Project Base Company in


which the structure of the company’s work
force is usually contract base. But the
company is focusing their employees to train
them and motivate them. This thing starts
from assessing needs to the completion of
those needs. The performance management
system is one of the ending processes of the
whole retention program.

Evaluation of the Jobs

When the structure of the company is


analyze by the HR Managers. They start to

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HUMAN RESOURCE DEPARTMENT

evaluate the people and jobs to match the


right individuals to the right roles.

Define Career Progressions

The company defines career progression


both from individual roles and across related
job groups and interlinking organizational
goals with personal goals.

Reward Program

After the Performance Appraisal Process, the


company develops targeted pay and reward
programs, using Hay Group’s global
compensation database, optimize the return
on investment in people by paying in
proportion to contribution. All of this
ultimately leads to an increased ability to
manage human resources more effectively.
The reward program is held and employees
take reward according to these levels:

Level I.D. Form

• L1 High Potential / High


Performance
• L2 High Potential / Medium
Performance
• L3 Medium Potential / Medium
Performance
• L4 Medium Potential / Low
Performance
• L5 Low Potential / Low
Performance
• L6 Cruse
Performance Feed Back

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HUMAN RESOURCE DEPARTMENT

The person who is conducting Hay method


of performance appraisal is sharing
information and getting feedback from
employees who are checking their abilities
of their work and experience and their
feedback helps both parties to create good
results. The discussion have three parts in
which first prepare feedback discussion,
second part conduct feed back from
employee and last one conclude the
discussion through analyzing the behavior of
employees

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HUMAN RESOURCE DEPARTMENT

CHAPTER NO.7

REWARDS AND REMUNERATION


MANAGEMENT

Rewards and Remuneration Management


plays very important role in the motivation
of employees. Every organization gives the
importance to these activities.
Monitory Rewards

Salaries

Descon pay the salaries to their employees


according to their ability, skills and their
experience. Company also considered the
national laws of every country in which it
operates regarding to salaries such as
minimum salary act.

Designations
Like all other organizations Descon also
have specific grades and designations for
their employees that show the status, power
and responsibilities of job at work place.
These grades start from G-1 to G-9.

G-9 is a executive level grade that shows the


high level power and responsibilities in
organization and G-8 show less than as
compare with G-9 and so on.

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HUMAN RESOURCE DEPARTMENT

The monitory rewards include so many


things in which an employee can be
motivated through different packages. These
rewards are following;
• Salaries
• Gratuity Funds
• Profit Sharing
• Provident Funds
• Annuities
• Bonus

Non-Monitory Rewards
Descon gives utmost importance to
compensation packages because this is the
most crucial factor for retaining key
employees. The amount of bonus and
increments depend on the profit so they
gives gratuity for those projects in which the
workers perform well and effects company’s
extra profit, then for each department.

Stock Ownerships are given, as Performance


Bonuses to employees giving high
performance and whom the Company wants
to retain.

Allowances

Descon Engineering Co. gives different


allowances to their employees in order to
increase their performance and loyalty.
There is different allowance that included in
basic salary of employees. These are:

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HUMAN RESOURCE DEPARTMENT

• House Rent Allowance at sites


• Medical Allowance
• Conveyance Allowance
• Insurance Facility
• Food allowance
• Annual Leaves
• Hardship Allowances
• Health and Safety Environment

CHAPTER
NO.8
INDUSTRY RELATION

The field of industrial relations (also called


labor relations) looks at the relationship
between management and workers,
particularly groups of workers represented
by a union. Descon treats their employees as
partner in delivering superior customer
value.The Company’s operations are project
based and they work in different types of
construction, maintenance and development
businesses.
Procurement for election of labor union
The company has very good system of
procurement of labor union. There are

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HUMAN RESOURCE DEPARTMENT

several types of Technical, Engineering, and


Managerial employees working in Descon.
When any project is start, the Human
Resource Department check all those
workers who can work on that specific
project. If the members are not available, so
they are checking those projects which are at
completing stage. If any one is at competing
stage, the HRD pull some work force from
these areas and start new project. If the
demand does not fill right now, they hire
new workforce for starting the project.
Dispute Settlements
We now that in any organization, there are
different dilemmas’ between employees. If
there is any dispute regarding any issue, the
HRD plays an important roll and settling
disputes which are not settling by supervisor.
The climate survey is held to check both
parties and some times punish both parties
for their bad work. Some time handling
miscommunication through interfere all
those parties which are involve.

Health and Safety Measures


As we know, Descon is a Multinational
organization so it follows all laws regarding
to Health and Safety at work place. The
Head Office of Company at Lahore is very

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HUMAN RESOURCE DEPARTMENT

clean, well arranged and cool in summer.


Descon provides the following health and
safety equipment at all their branches:

First aid at work

In case of any sudden accident Company has


First aid at work place

Emergency doors and Direction

In case of any emergency Company has


doors and clear direction toward these doors
through arrow signs.

Fire extinguishers

In case of fire there is fire save equipment at


Company.

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HUMAN RESOURCE DEPARTMENT

BIBLIOGRAP
Y

BOOKS:

• Human Resource and Personnel


Management(3rd edition) by K
Aswathappa

• A text book of Human Resource


Management by C.B.Mamoria,
S.V.Gankar

• Personnel Management(6th edition)


by Edwin B.Flippo

WEBLIOGRAPHY:

• www.google.com

• www.citehr.com

• www.descon.com

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