Mughalsteelbymr Irfanamin

Internship Report on Mughal Steel Group of Industries
INTERNSHIP REPORT ON
MUGHAL STEEL
(HUMAN RESOURCE MANAGEMENT)
PRESENTED TO:
CHAIRMAN MBA DEPARTMENT

ALLAMA IQBAL OPEN UNIVERSITY
ISLAMABAD
PRESENTED BY:
MR. IRFAN AMIN

ROLL NO.
Q-579544
REGISTRATION NO.
05-PSP-0098
ADDRESS
St. No. 5, House No. 2

Mohallah Farooq
Nagar, Sheikhupura
PHONE NO.
(Cell) 0333-4534380
(Off.) 042-7970226-7
DEPARTMENT OF BUSINESS ADMINISTRATION
ALLAMA IQBAL OPEN UNIVERSITY

ISLAMABAD
Acknowledgement
All praises to Almighty Allah, the one and only, the Merciful, Beneficent and
Compassionate. Billions of Darood-o-Salam upon Muhammad (PBUH) Last Prophet
of Allah who is the savior of humanity.
Great tributes to my beloved late parents who taught me to strive for Rizq-e-Hilal and
always trust in Almighty Allah!
I extend my heartiest thanks to my seniors, colleagues, and subordinates who assist

me on every occasion to enable me to write this report.
I pay special homage to the following persons.

Mr. Muhammad Azeem (MBA Tutor)
Mr. Amjad Bashir Bhatti (Manager HR, Mughal Steel)
Miss Afshan Khan (Assistant Manager HR, Mughal Steel)
Mr. Waqas Ahmad (Assistant Manager HR, Mughal Steel)
Mr. Sohail Anjum (Class fellow, MBA)
Salute to the marvelous management of AIOU, to have such a thought provoking

activity in form of this compulsory internship report.
PREFACE
This report is one of the necessary elements to get the Master of Business
Administration Degree from the Allama Iqbal Open University.
As a part of my MBA studies I went through three months internship at Mughal Steel
Group of Industries, where I am working since six months. During the internship
period I went through various sections of Human Resource Department. I hope that
this report will give a detail and true picture of the company and what I did and learnt
during my training program.
I also try my best to write this report in such a way that gives more information about
the recruitment & Selection Process, Training and Development, Performance
Management, Employee compensation and Benefits and Organizational Career
Management systems. I have also tried my level best to obtain complete information
about HR Process and present all what I have learnt in the following pages.
I hope that this report will be a true representative of my efforts and will satisfy the
purpose, which I was meant to achieve.
TABLE OF CONTENTS
S.NO
DESCRIPTION
PAGE #
00
Title Page
01
01
Acknowledgement
02
02
Preface
03
03
List of contents
04
04
Objectives of studying the organization
06
05
Introduction to the Organization
08
06
Overview of the organization
09
1)
Organizational Structure
12
2)
Organizational Structure of HRM department
13
07
Function of HR Department
14
08
HRM Process in the organization
15
09
Human Resource Planning and Forecasting
17
10
Forecasting HR requirements
18
11
Employee Recruitment & Selection
19
12
Sources of candidates
19
i)
Internal Sources
19
ii)
External Sources
19
13
Employee Selection Process
20
14
Training and Development
24
15
Training Need Assessment
26
16
Employee Development
28
17
Performance Management
29
18
Probation Performance Appraisal & Procedure
30
19
Annual Performance Appraisal & Procedure
31
20
Increment Policy
33
21
Employee compensation and benefits
35
22
Types of compensation and benefits
35
23
Organizational Career Management
38
24
Employee job changes with in the organization
38
25
Promotion
38
26
Transfer
39
4
TABLE OF CONTENTS
S.NO
DESCRIPTION
PAGE #
27
Demotion
39
28
Separations
40
29
Lay Off
40
30
Termination
40
31
Termination Policy
41
32
Termination Request Form
43
33
Resignation
44
34
Retirement
45
35
Labor Management Relations
46
36
Critical Analysis
47
37
Conclusion
49
38
Recommendations
50
39
List of Annexure / Appendices
51
1-OBJECTIVES OF STUDYING THE ORGANIZATION:

To identify the HRM Process in the organization.
To view the operational activities of the HR department in the organization.
To do a comparative analysis of the organization with the other in the same
business and capacity.
Finding out the weaknesses, short comings, strengths and beauties of the
Human Resource Department.
To look into the special assignments carried out by HR team like preparation
of Job Descriptions for all field positions and conduct TNA research program
to detect gaps in KSQ (Knowledge, Skills and Qualities) of employees.
To put suggestions and recommendations to improve the HR department.
2-INTRODUCTION TO THE ORGANIZATION

Mughal Steel is a pioneer steel manufacturing industry of Pakistan. In 1940, Mr.
Bashir Ahmed commenced steel manufacturing on a very small scale by installing a
furnace at Badami Bagh in Lahore. At that time, Muslims had very few opportunities
to grow and progress because British and Hindu were the rulers. In spite of the
circumstances, he worked hard and continued with his struggle. When Pakistan came
into existence, there were hardly any industrial units. The country was in need of
such industrialists and capitalists. Who would invest their capital for the advancement
of the country? Being a true patriot, Mr. Bashir Ahmed made tireless efforts to
expand his business and meet the requirements of the newly established country. By
the grace of Allah Almighty, this business soon turned in to a limited company to
contribute towards the strengthening of the economy.
At present his three sons, Mr. Javed Iqbal Mughal, Mr. Tariq Iqbal Mughal and Mr.
Jamshaid Mughal successfully carry on with their fathers business. All of them are
highly skilled in their respective fields. They have been groomed by their prudent
father and received official training from various foreign and local institutions.
Following their fathers golden principles of diligence and commitment to the set
goals, they have established Mughal Steel Mills as the second largest steel
manufacturing industry of Pakistan. Mughal Steel produces 219,000 tons of steel per
annum, which is the next highest output after Pakistan Steel Mills.
The durability and quality of the Mughal Steel is equally appreciated on national and
international level. Maintaining their tradition of serving the country, Mughal Steel
Mills started the manufacturing of stainless steel for first time in Pakistan. It is the
only company in the private sector that possesses the facilities of re-rolling and steel
aligning. Mughal Steel is also manufacturing alloy metal and carbon steel.
All the products of Mughal Steel Mills are produced according to the standards of
ASTM, AISI, SAE, DIN and SUP.
3-OVERVIEW OF THE ORGANIZATION

Brief History:
The Mughal Steel was founded over three decades ago by Mughal family and is
headed by Chairman M. Javaid Iqbal Mughal and Vice-chairman M.Tariq Iqbal
Mughal and Director M.Jamsheed Iqbal Mughal. The Mughal family has been in
business and trading since the 1900s.Far back in the middle of last century, when this
newborn country was struggling for its stand in the economics & industry, few
courageous people with a solid mind devoted themselves entirely for the uplift of
trade & industry. Mr. Bashir Ahmad Mughal, the founder, is one of them. In 19_ he
commenced steel manufacturing on a very small scale by installing a furnace at
Badami Bagh, Lahore. Mr. Bashir made tireless efforts to grow up the business and to
fulfill the local market needs through his single local furnace. Because of his
dedication, the business soon turned into a progressive position in -------------- and
steadily progressed to become one of the major companies to contribute towards the
strengthening of the economy.
The minds behind the success of this company of unique caliber, Mr. Javaid Iqbal
Mughal the versatile genius Chairman of the company, having knack technicalities as
well as financial matters, Mr. Tariq Iqbal Mughal, (Vice Chairman) having foresight
of Management & projects, Mr. Jamsheed Iqbal Mughal, (Director) Financial & Sales
Management Expert and Mr. Shakeel Ahmad, Marketing expert. With great
professional Dedication and zeal to produce congenial quality of steel products, the
company is reaching on the peak success. The most qualified and well equipped staff
has made splendid efforts to attain this marvelous success.
Overview of the Mughal Ferro Alloys is as under;
DESCRIPTION OF THE PLANT
MUGHAL
FERRO ALLOYS
Laboratory & Offices
10
PRODUCTS:
Stainless Steel
Mughal Steel has taken the lead to produce stainless steel for the first time in
Pakistan. Our in-house fixture allows us to come up with 200, 300 and 400 series of
AISI specification, which caters the needs of Kitchen ware, Surgical and other highly
sensitive industries.
Alloy Steel
Mughal Steel has taken a leaf out of the book from the leading steel manufacturers
world wide to provide big and small Alloy Steel Billets in conformance with
international standards with specification i.e. ASTM, BSS, AISI, JIS, SAE, and DIN
etc. our clientele has ever acknowledged our expertise for developing, producing
metals as per their own specific needs with a high degree of confidence.
Industrial Steel
High quality, in conformance with ASTM, BSS and ASHTO, industrial section i.e. I
Beam, Tee Section, H Section, C Section, L Section, etc are re-rolled. Our re-rolling
fixtures allow us to re-roll the section in 400 mm sizes.
Steel Bars
Deformed Steel and TOR Steel bars of G-40 and G-60 having size range from 6mm to
50 Dia are produced by prime quality steel billets. Samples of these bars are regularly
checked during hot rolling to ensure that shape and size conform to the requirements
of American and British standards.
11
12
4-ORGANIZATIONAL STRUCTURE
OF
HUMAN RESOURCE DEPARTMENT
Manager
Human Resources
Assistant Manager
Recruitment & Selection
Training & Development
Assistant Manager
Compensation & Benefits
H R Officer
Incharge Time Office
Compensation & Benefits
H R Officer
Recruitment & Selection
Time
Keeper
Assistant
Incharge Time
Office
13
Time
Keeper
FUNCTIONS OF HR DEPARTMENT
Following are the major functions of Human Resources Department at Mughal
Steel:
1. HR Planning
2. Recruitment, Selection and Orientation
3. Training and Development
4. Compensation and Benefits
5. Performance Appraisal
6. HR MIS, HR Policy Manual and System Development
7. Internal and External Communication
8. Industrial Relations
Labor-Management relations
Disciplinary actions, Show Cause Notice, Inquiry, Terminations etc.
Dealing with external agencies such as Labor Department, PESSI,

EOBI
Dealing with Health Department ad periodic medical check up of

workers
Time office function recording of daily attendance and overtime

etc.
Maintenance of leave record and personal files
Liaison with Legal Advisor, follow up and attend the Courts of law
Daily updating the attendance record in ERP system.
14
5-Human Resource Management Process in the Organization:

Objective:
The main objective of HRM process in the organization is to design and develop
Human Resource Planning procedure for both permanent and contractual staff.
Scope:
The HR Management Process is divided into the following major stages;
(a)
Human Recourse Planning and Forecasting
(b)
Employee Recruitment & Selection
(c)
Induction & Orientation
(d)
Training & Development
(e)
(f)
Employee compensation and benefits
(g)
Organizational Career Management
The whole process is carried out through HR department and Respective HODs. It is
the responsibility of the HR Manager to implement all the above mentioned functions
in a proper way. Now we will discuss these processes one by one.
HR Planning and Forecasting:
Human Resource planning is the first function of HRM. HRM planning is related with futures
proposed business strategies imply with respect to Human Resources. How we will settle the
issue of internals (Collective Bargaining) as well as externals (New Recruitment).
Employee Recruitment & Selection:

Recruitment and selection is a next step to HR planning. This is a practical situation in which
we analyze the positions and requirement of organization as per business objectives.
15
Sources of Candidate
Internal Sources:
HRD gets advance information regarding manpower requirements at the

bidding stage from the proposal department for various key positions.
HRD receives the workforce hiring request from the various departments of
the organization.
HRD searches the suitable candidates from the manpower data bank.
The availability of candidates is checked after reviewing and discussing the

requirements with the concerned staff.
External Sources:
If the required candidate does not exist in the manpower data bank, then
applications are received through different sources i.e. advertisement in the
news papers, professional organizations and employee referrals etc.
Relevant HOD, in charge or Managers short lists the applications, where

necessary
HRD held interviews of the short listed applicants.
Induction & Orientation:
On joining the HR department gives orientation to the new employee about

his/her job responsibility in coordination with concerned HOD.
JD of the employee is prepared by the HR Department and provided to the

staff.
General Training:
If it is necessary to provide the training to the new employee then basic training
regarding his/her job is given to the new employee.
16
Performance Appraisal:
Performance is an effective tool to find the balance between the JD as well as the
assigned task in relation to achieved results. The details regarding performance
appraisal are available in the Performance Management section.
Exit:
At the time of retirement/ termination or resignation of employee, HRD arranges exit
interview of key persons and records the information on exit interview form.
5.1-Human Resources Planning and Forecasting in Mughal Steel:
Human Resource Planning is the first step and important function of HR department.
In Planning we have to see the future targets regarding production and recruitment. In
Mughal Steel management has decided to install a new plant first Plant of its nature in
Pakistan. It is Mughal Ferro Alloys. This plant will be used to produce Ferro
Manganese and it will be used in the production of steel alloys. We have a furnace of
about 3 tons. In HR planning management has to decide the following;
a)
What will be the future benefits after the installation of Ferro

Plant?
b)
What will be the strength of that Plant?
c)
How much will be the profit from this plant?
d)
Who will be the exporters of the Ferro Maganese?
Forecasting Human Resource Requirements

Mughal Steel is now enhancing its business volume and they are installing a Ferro
Alloys plant in their premises. This is the single plant of its nature in Pakistan. Now
all the steel industries importing the steel alloys form other countries but after the
17
installation of this plant we will be able to export the Ferro alloys and other chemicals
to other steel industries.
Method to Forecast HR Needs:
In Mughal Steel there is no proper method is used to forecast HR requirements. The
HOD of the division just write down the vacant seats and then forward to the HR
department. Then HR department plans how, to recruit the technical and official
persons. They take the next step and take approval from the top management to hire
the employees. If the management grant the permission to hire new talent then they
advertise in the Newspaper and select the required employees.
Mughal Ferros
With a capital investment of around Rs. 700 million, the facilities to convert countrys
rich deposits of ore of Manganese and Chromites into value added and highly
demanded commodities of Ferro Manganese and Ferro Chrome started production by
July 2005(first phase). The plant produces 25000 tons of finished Ferro annually.
This is the first plant of its kind in Pakistan.
Recruitment of Mughal Ferros:
For the induction of Mughal Ferros, they advertised in Jang for new employees and
they selected some employees for their plant. Following is the Manpower Strength
Chart for the Ferros Alloys plant. (Annexure 01)
18
5.2-Employee Recruitment & Selection:

Objective
To recruit & retain capable, qualified and experienced human resources. The
Objective is to Place right person on the right job that is willing to contribute their
best efforts to accomplish objectives of the organization.
Policy
We are an equal opportunity employer. The overall requirement of the job (relevant
qualification and experience of the individual) will be determining in the selection of
employees. The policy of the company is to develop its own employees and fill in the
vacancies from within the organization, whenever possible. In the case of nonavailability of qualified personnel from within the organization shall recruit qualified
& experienced personnel in the respective discipline from outside. New employees
will be inducted only on the basis of a personnel requisition against a specified
function within the approved manpower strength.
Sources of Candidates:
There are two sources of candidates while recruiting;
1) Internal Sources.
a) A method of informing employees of job vacancies by posting a notice in
central locations and giving a specified period to apply for the job.
b) Intranet
c) Employee references are also used in internal recruitment.
2) External Sources:
External sources are also used at Mughal Steel while recruiting the neo
employees. Following are the main external sources that are used in factory.
a) Direct Sourcing
19
b) Advertisement in News Papers

c) Job posting in different Educational and Technical institutions
Employment Selection Process:
The human resource department of Mughal Steel has adopted a very simple and
effective method of recruiting and selection .A direct but very keen and purified
approach has been adopted by the HRM Department of Mughal Steel for performing a
sensitive and important function of recruiting and selection. The step by step
procedure of recruiting and selection is given below.
Forecasting for the vacant positions to be filled
Advertisements for vacant positions
Receiving application and complete Data bank
Building a pool of candidates
Short listing the candidates and building a secondary and purified pool
Written test
1st Interview
2nd Interview
Final interview
10
Telephonic confirmation for joining
STEP-1
Forecasting for the vacant positions to be filled
The first step in recruiting and selection process is to forecast the requirements of
persons for performing the required functions. Job analysis and actual requirement
proposal is prepared for making the plan of recruiting and hiring the persons in the
respective areas of fields. Trend analysis is used for predicting the actual needs of the
20
persons in future with respect to the past. The number of employees is increasing day
by day in Mughal Steel.
STEP-2
Advertisement for vacant position
2nd step in the process of recruiting and selection is to advertise the position for
getting more and more candidates to appear in competition so that the quality person
can be drawn for the purpose of achieving organizational objectives.
Advertisements are made in the newspapers THE JANG . The advertisement
contains details about the requirement of the company for a favorite candidates and
this is one of the most important steps of recruiting and selection of the candidates
which leads towards hiring the right men for right place
STEP-3
Receiving application and complete Data Bank
After advertising the process of receiving application and enter in data bank starts.
Applications are received by mail and often by online application system now. A
comprehensive application form is attached as appendix. A database is developed on
computer for analysis and short listing of candidates automatically.
STEP-4
Building a pool of candidates
After receiving applications a primary pool of candidates is developed to observe the
the quality of persons applied for the post.
STEP-5
Short listing the candidates and building a secondary and purified pool
A pool of candidates is developed after short listing the eligible candidates according
to the predefined criteria of selection and recruiting. A standard of education,
21
experience and skill is maintained or set according to the requirement of the position
vacant or to be filled.
STEP 6
Written test
After short listing the candidates are called for a written test for selection purpose
which is mandatory and is used to check the intellectual capability of candidates.
Written test involves generally the knowledge about the job or relating to their
education.
STEP 7
1st interview
The candidates who have passed their test for selection are called for interview for
testing the experience related or not for the post. The first interview is taken by
manager HR and the HOD of the concerned department of Mughal Steel.
STEP 8
2nd interview
2nd interview is conducted for the selected candidates of 1st interview. This interview
is conducted by Director HR for testing the skills to select the right candidate for a
vacant position. This interview is the 2nd last inter view which is to be to get the
candidates for presenting to the Chairman or Vice Chairman for final inter view
STEP 9
Final interview
The candidates selected by Director HR in 2nd interview are presented to Chairman or
Vice Chairman for final selection. This is a very formal and general interview by
Chairman for selection of candidates
22
STEP 10
Telephonic Confirmation for joining
After the induction of 3rd and final interview the management prepares a list of
selected candidates.
The candidates who qualify the final interview, they are
informed through telephone about their selection and joining date is confirmed by the
HR department.
23
5.3-Training and Development

Training:
A learning experience that seeks a relatively permanent change in an individual that
will improve his or her ability to perform the job.
Development:
A process designed to develop the skills necessary for future work activities.
Employee development future oriented training focusing on the personal growth of
the employees.
Scope and Purpose
Mughal Steel is committed to excellence in Training and Development of its
employees. The purpose is to impart knowledge, enhance skills, and bring forth a
professional attitude among the employee working at all levels, for the attainment of
Mughal Steels Mission, quality policy and quality objectives.
Responsibilities
It is the responsibility of all Supervisors and Section / Department Heads to ensure
that the employees under their control have the necessary skills and knowledge to
competently carry out their workplace responsibilities.
The Human Resources Department shall advise all Section / Department Heads in
identification of Training Needs, prepare Training Plans, organize the required
training at Company level and maintain all training records.
Implementation
Each employee informed to attend arranged training programme (in house/external)
is bound to attend it and give feedback after attending the training. In case of any
24
emergency, if nominated employee can not attend the training programme then he
will forward the application through his/her head of the department to HR
department for the approval from Director.
Human
Resources
(HRD) is the generic name given to all actions that are part of training
Development
and development.
Human
HR
Resources
Dept
is
overall
responsible
for
carrying
Department
training & development activities.
Supervisor
To be read as Supervisor or Manager, as appropriate.
Trainer
Any suitably qualified person who conducts a training program.
Competency
The demonstrated ability to carry out a task to the required standards.
out
A structured process to equip a person with the knowledge, skills and

Training
attitudes to competently perform their current or future work duties.
25
Standards for Trainers

Any Internal Training shall be performed by a skilled and experienced employee
(this includes members at any level within the Team). Employees in competency
level-4 for a particular task may become a Trainer to impart training for that task
Aspects to be considered when identifying criteria:
Course contents should reflect a non-discriminatory language and equal opportunity
practices. Courses may be evaluated and where necessary adjusted, as a part of
continuous improvement process.
Identification of Training Needs (TNA)
Effective training depends on clear & accurate identification of needs. Identification
of needs will permit appropriately targeted relevant training. Needs are related to the
achievement of organizational objectives and ensuring employees are adequately
trained to perform the task(s) both competently and safely.
The Department Head shall be responsible for assessing and identifying the training
needs of employees within their scope of authority. HR Dept will assist Department
Heads in this exercise. These needs will be identified through the Performance
Appraisal and Management System. Identification of training needs will be an on
going process in addition to its organized annual assessment.
Areas to be considered during evaluation should also include:
Were objectives met and competency requirements achieved?
Were participants satisfied with the course?
Was there application of the learning at the workplace?
26
And were needs met and measurable gains derived from the programme?
HR Department shall be responsible for the evaluation of both internal and external
training programs.
Follow-up
Training is an ongoing process. It is successful when learning acquired is applied on
the job. Management must take care to see that an effective follow-up system exists
in the organization to help the trainees develop the required skills by putting the
knowledge they have gained in to practice on their job. Department Head will
complete the Training Follow Up form for onward submission to HR Dept. HR
Dept will discuss these forms with the Trainers & concerned Dept Head.
Monthly Training Report
Human resources department will prepare monthly training report of its activities
and endorse copies to all concerned.
Training Records
For the purpose of career planning, it is important to maintain the training record of
each employee. The record should contain the following information
Name of trainee
Title of the course
Duration of the course
Date when the course was attended
Follow-up reports
27
Certificates:
At the end of training, a test is conducted and all participants participate in test. This
test contains the material or questions that are already told them during training.
After checking the tests, the result is compiled and the participants are given the
certificates with the achieving grades in the test. A copy of this certificate is attached
herewith as Appendix .
At Mughal Steel different trainings have been arranged by the HR department with
the help of external sources.
HR department held a training course on ERP
(Entrepreneur Resource Planning) for different departments to give them basic know
how about the new computerized system.
They conduct training for Sales &
Marketing, Accounts, Time Office, Procurement and Time Office department.

Following is the course plan of ERP training.
Employee Development:
Employee development is a joint, on-going effort on the part of an employee and the
organization for which he or she works to upgrade the employee's knowledge, skills,
and abilities. Successful employee development requires a balance between an
individual's career needs and goals and the organization's need to get work done.
Employee development programs make positive contributions to organizational
performance. A more highly-skilled workforce can accomplish more and a
supervisor's group can accomplish more as employees gain in experience and
knowledge.
28
5.4-PERFORMANCE MANAGEMNET SYSTEM

Objective:
To design, develop an effective and transparent performance appraisal procedure for
all permanent employees of Mughal Group of Industries aimed at
1.
Recognition & acknowledgment of excellent performance to attract motivate

and retain talent of highest caliber, while supporting the groups charter by
creating distinguishable difference in remuneration aligned to relative
performance.
2.
Identification of causes of poor performance and taking appropriate corrective

measures.
3.
Aligning our total remuneration policies with the market condition and
industrial surroundings we operate.
4.
Elimination of inappropriate behavior from work place.
Scope:
This procedure is applicable to whole group.
Responsibility:
HR department is responsible to initiate performance evaluation and its result

compilation as per performance evaluation schedule.
All concerned HOD,s are responsible to conduct evaluation in their respective

departments in coordination with HR department.
Top Management, will conduct performance evaluation of HODs.
Types:
Probation performance appraisal.
Periodic/Midterm performance appraisal.
29
Annual performance appraisal.
Probation Performance Appraisal:

An employee on joining the organization in placed in his respective department on
probation for a period of 03 months. Probationer evaluation form is sent along with
probationer to the concerned HOD, where a probationer employee is being employed.
Procedure:
An employee on joining the organization remains on probation for a period of 3

months. During this period he is accessed by his HOD/ in charge on basis of
assigned tasks/ responsibilities and over all conduct / behavior exclusively for the
following.
Fit /not fit for retention / employment.
Recommended for extension of probation period up to another 03 months if

assessment process warrants so.
Assessment is based on assigned tasks/ responsibilities/ conduct/ behavior /ethics

etc.
HR department is responsible for initiating & ensuring the handing over of

orientation and evaluation form of the new employee to each HOD/ in charge in
writing.
Concerned HOD/ in charge is responsible for the safe custody; completion and
handing over of form to HR department in prescribed time frame work i.e. (3
months)
On receipt of assessment report of a probationer the HR department is responsible

for the following:
1.
Issuance of confirmation letter, with in one week to the employees who
30
are recommended by the HOD/in charge.

2.
Issuance of letter of extension, with in one week, for extension in

probation period, to the employee s recommended for extension in
probation period by HOD/in charge.
3.
Issuance of termination letter to an employee within 24 hours who is

not recommended fit for retention by any HOD/in charge.
HR department is responsible to control and maintain all relevant record generated

out of the activities under the procedure. (Soft/Hard).
Annual Performance Appraisal

It is a periodic activity, carried out for all permanent employees towards fulfillment of
the organization commitment to effective performance management, through regular,
formal feed back, review and open communication, while ensuring that each
employee receives formal, documented performance appraisal from his/her HOD/ In
charge and rewarded accordingly: Procedure:
The organization has developed an assessment/evaluation form generated for the
systematic and transparent transactions of the procedure based on the following
aspects.
Suitability of assigned job.
Identification of growth potential.
Identification of training needs and its effects/impacts.
Evaluation of outcome of previous trainings imported.
Significance and effectiveness of counseling.
Performance based compensation & rewards.
Transparency in corporate culture.

31
1. .HR department is responsible to initiate performance appraisal process as per

company policy.
2.
Appraisal forms are forwarded by HR department to each HOD/ in charge as

per schedule for recording/ documenting the assessment of all employees.
3.
The guidelines/ directions/ instructions required to fill performance appraisal

form are noted on the back of last page of the prescribed form. Moreover HR
department also imparts training regularly thought out the year to all HOD, s
/in charges and employees for better awareness about the adopted systems/
procedures.
4.
All appraisal forms duly completed in all respects are returned back to HR
department as per schedule. (1st of Dec)
5.
On receipt of appraisal forms, the HR department compiles the data of all (04)
appraisals of the group employees.
6.
The compiled data is then presented to the committee comprising of all top
management and HOD, s. The committee then decides, annual increase in the
salary of each employee, promotions, training needs etc.
7.
Annual increment, promotion, revision of grades takes effect from Ist of

January each year.
Appraisal Forms are attached as Appendix.
32
INCREMENT POLICY
1-Purpose:
The Top Management of Mughal Steel wishes to reward its employees for the services they
render to organization. This policy has been designed to develop a transparent and uniform
system which relates this reward with monitory benefits to employees i.e. annual increase in
their salaries.
2-Scope:
All permanent employees of Mughal Group of Companies are entitled for increment.
3- Procedure:
Annual Increment:
a) Increments are awarded annually on basis of performance appraisal results (refer to
appraisal policy).
b) The increments are finalized in January every year which are applicable with effect
from 1st January.
c) Increments are calculated on basic salary.
d) Employees who have not completed one year service with organization at 31st
December are awarded increment with proportion to their months of service in the
organization. Proportionate increment rate is calculated with following formula:
Increment % age/12 x *Months of service
*Appointment in first half (1~15) of any month is considered one complete month for
purpose of increment calculation.
e) Employees who are on probation at 31st December are not considered in annual
increment plan.
f) Employees who are not considered in annual increments due to probation are awarded
increments in next year. However the number of months which were not previously
considered is accounted for in their first increment proportionately. The proportionate
increment rate is calculated by the formula as stated in d.
33
Special Increment:
a) Special increment is a special reward awarded by top management on special
contribution of any employee towards organizational goal achievement.
b) Special increment can be awarded at any time during the year which depends upon
sole discretion of top management.
c) Top management also reserves the right to decide whether cases of special increment
will be considered in next annual increment or not.
_____________
Prepared By:
_______________
Reviewed By:
________________
Approved By:
Atif Haleem
A/M HR
Khurram Javed
Director
Javed Mughal
Chairman
34
5.5-EMPLOYEE COMPENSATION & BENEFITS

The wage and salary administration guidelines in this section apply to all employees
with the exception of faculty and some professionals designated by Chairman
Staff
Initial pay rates for employees are established at the time of hire. The initial pay rate
is determined jointly by the employees department head and the Chairman or his
designee.
Pay levels
Designations are assigned to an employee upon employment. Each classification
carries a minimum salary level for workers.
No employee will be paid at a rate less than the minimum for the applicable position
classification.
Overtime Pay
Mughal Group of Industries follows a 54 hour working week (09 AM To 06 PM).
Rest interval is 1 hour (01 PM To 02 PM). Workers working extra time are awarded
overtime for the extra hours they have worked.
Overtime is paid only for work that cannot be done during the normal work week.
For the purpose of computing overtime, holidays are counted as actual time worked.
Overtime may accrue only after 54 hours of actual time worked. Leave time is not
considered part of the normal work week.
For gazetted holidays i.e. Eid and National holidays, workers are paid overtime with
substitute holiday.
35
If an employee is required by a supervisor to work on a day designated as a paid

holiday, the total compensation shall be the regular rate for the holiday plus the
hours worked on the holiday at the normal rate.
Working on public holidays and late hours after official timing will be discouraged
and the departmental head will require any staff member to do so only if it is very
urgent.
Salary payment
Employees will normally be paid on monthly basis on the 7th of the preceding
month. In the event that payday falls on a holiday, payment may be made on the
preceding workday.
Salaries will be paid in cash for employees with less than or equal to Rs. 10,000
gross. For employees whose salary is more than Rs. 10,000/- salaries shall be paid
vide bank account.
All such employees who fall in above category are advised to open a bank account
with in one month of their appointment. A grace period shall be awarded of only
one month to special cases after which no salary shall be paid in cash for the said
category.
Details of banks can be obtained from the Accounts department.
36
Educational and professional development

Mughal Group of Industries offers educational benefits to support and encourage
professional development among employees. Chairman is the only authority on
granting such benefits to any employee. Any such approval, if given, is with the
consent of the concerned departmental head.
Courses may be approved or denied based on department needs and the effect of the
employees absence on department operations.
An employee with unsatisfactory performance evaluations may be denied this
educational benefit.
Employees old age benefit (EOBI)
Upon confirmation, the workers may be registered with EOBI department.
Employees contribute a portion of their total earnings as provided by law. The
amount is deducted from each paycheck. Mughal Group of Industries contributes its
portion as provided by EOBI Acts in force.
Social security
Employees of the Company are covered under Social Security Act. The Company
contributes its portion as provided by Acts in force.
Workers compensation
Workers are compensated for work related injuries as per law. Notification is
necessary to ensure proper medical attention and accurate processing of
compensation claims. The Company has designated the Human Resource
department to administer workers compensation issues.
37
Employees should report injuries to the Admin Department immediately and no

later than 02 days after the injury has occurred.
The Admin Department informs and provides notice of accident report forms to the
HR department and HR department will precede the case in consultation with
Manager Administration
Employees who suffer a work-related injury are also compensated by the factory
with special leave with full pay and medical expenses as well.
5.6-Organizational Career Management:
Career Management is concerned with providing opportunities for employees to progress and
develop their careers and ensuring that organization has the flow of talent it needs. The
elements of Career Management are also maintained are the provision of learning and
development opportunities, career planning and management succession planning.
In Mughal Steel the HR department is looking forward to manage the career of the
employees.
To full fill this requirement they induct different trainings to enhance the
interpersonal and communication skill of its employees.
Employee job changes:

Employee job changes means internal moves or external moves. Internal moves means
changing with in organization and external moves mean separation of job. Job changes also
including the change the position of job as per requirement of organization tasks or
responsibilities.
Promotion.
A promotion occurs when an employee moves to a new classification with a
higher-grade level. The employees new rate of pay must be at least the minimum
pay assigned the new classification. In Mughal Steel concerned HOD recommends
38
the case on special performance of that employee and HR department finalize this
promotion with the mutual understanding of Director HR, HOD of that employee
and the employee.
Transfer.
A transfer is defined as a lateral move from a job in one location to a job with the
same grade level in a different location. A transfer does not involve a pay rate
change but may involve a change in benefits. In Mughal Steel an employee may be
transferred from one department to another, one unit to another unit due to need of
expertise of that person or due to inability of that person to perform. Transfer letter
is issued to that employee, his/her HOD, Personal File and Accounts department.
Demotion.
If an employee is demoted due to disciplinary action, the employees rate of pay will
be reduced as per the directives of Chairman / Vice Chairman / Director. Demotion
occurres when annual performance review report is written in negative manner with remarks
unsatisfactory or poor. The employee, which Performance Review Report is written by
Reporting Officer with negative remarks, to be reverted in previous grade. Also it could be a
disciplinary action, inability of an employee to handle the requirement level of job.
39
SEPARATIONS
Its mean moving out or separating the employees from organization with different ways as
mentioned hereunder;
Lay Off
Termination
Resignation
Retirement
Lay Off:
Lay off means involuntary moving out of employees from organization. It is not pleasant for
organizations. Organizations always avoid from lay off the employees. In a very difficult
situation when organizations are facing lot of financial crisis of loss then they make a decision
for lying off the employees.
Recently Mughal Steel lay off its employees due to shortage of Gas. When there was a
shortage of Sui Gas throughout the country. Many steel industries that have there own power
housed and furnaces they have to face the problem of sui gas shortage. Here in Mughal Steel
gas is used to run the furnaces, and many employees are working there. So due to this
situation they lay off there production department and power plant department employees on
lay off for two months from 05th December, 2007 to 7th February, 2008.
When the employees were on lay off, the management has decided to give them half month
salary. These are the motivational incentives that may help to retain the employees.
Termination:
Termination of employment refers to the end of an employee's duration with an

employer. Depending on the case, the decision may be made by the employee, the
employer, or mutually agreed upon by both.
Termination refers to the employee's departure at the hands of the employer. There are
two basic types of involuntary termination, known often as being "fired" and "laid
40
off." To be fired, as opposed to being laid off, is generally thought of to be the

employee's fault, and therefore is considered in most cases to be dishonorable and a
sign of failure. In Mughal Steel termination policy is as follows;
Termination Policy
General:
This policy lays down the rules, regulation and terms in connection with Resignation
from service or Termination of service for permanent employees.
Terminations & resignations:
The following guidelines shall be applicable for permanent Employees.
All resignations/terminations shall be routed through HRD. For this purpose.

Termination / Release Request Form (Annex-1) is attached. It shall be duly
filled-in and signed by the Head of Unit/ Department and sent to Head, HRD
along with resignation, if applicable, for necessary actions. No employee is to
be terminated without a formal letter duly signed and issued by HRD.
An employee who has resigned shall continue to serve the Company till his
resignation has been formally accepted. Non-compliance to this clause shall
make him liable to pay the loss/ damages caused to the Company.
The services of a permanent employee in any Grade (Management and nonmanagement) may be terminated by the management without assigning any
reason by giving one months notice or by paying a sum equal to one month
salary in lieu there of as applicable under the terms of appointment.
A permanent employee may also leave service by tendering resignation and

giving one months notice or by paying a sum equal to one-month salary in
lieu therefore the un-expired notice period if earlier release is desired.
41
No resignation shall be deemed effective during the period of disciplinary

proceedings instituted against the employee concerned.
The period of notice shall commence from the date on which notice was given
by the employee or the Company as the case may be.
The Management may waive off notice period or portion thereof at its sole
discretion.
In the event of dismissal from service the permanent employee shall not be
entitled to any Gratuity, encashment of unavailed balance of earned leave and
notice period or salary in lieu thereof.
Accumulated balance of earned leave of an employee may be adjusted against

the notice period.
42
REQUEST FOR TERMINATION OF SERVICES
Name: ________________________Fathers Name__________________

Designation:
Grade:_______________________
Expected Date Of Release:
Employee No:______________
Previous Experience: _____________________ Years:

Mughal Steels Experience In: ___________________ Years
Circumstances under which termination / release are requested:
1. Completion of work
2. Long absence
3. Misconduct: please specify ________________________________________
4. Any other: please specify _________________________________________
Please give general comments about his performance.
General comments
__________________________________________________________________
__________________________________________________________________
-------------------------------Signature HOD
43
Resignation:
Voluntary termination refers to a decision made by the employee to leave the job.
Such a decision is commonly known as "resignation", "quitting", "leaving", or
"giving notice". Some common reasons for voluntary termination include:
Personal dissatisfaction with job, employer, hours, or working conditions, or

in more severe cases, burnout.
Factors in employee's personal life not related to the job that make holding or
performing the job impossible or more difficult. These may include family
obligations, education, health, or moving to a new location.
Hire at a new job. Reasons for wanting a different job may be better working
conditions, better hours, a shorter distance to work, better pay, graduation,
career progression or preparation for entry into a new career, or a career
change.
Feared or anticipated involuntary termination. The employee may wish to take

matters into his/her own hands in order to leave more honorably. This is also
known as mutual consent in some parts.
Exit Interview
In Mughal Steel efforts shall be made to conduct Exit interviews of the employees,
who decide to resign from companys service. Comments/ feedback of departing
employee shall be recorded on Interview Exist Form. This form shall be issued to
such employees and be placed in their personal files reference and records, if received
back.
44
The Exit interview sessions shall be conducted by heads HRD & concerned head of
department. Interview Exist Form is attached herewith;
Retirement:
This may be as a result of the employee's age (which may vary, depending on job type
and benefits available following retirement) or else an injury, disability, or other
medical condition forcing early retirement.
In Mughal Steel there are very few cases regarding employee retirement. Only two
cases are observed regarding retirement. Both were from security department and
there ages were more than 60 years.
There names were registered in EOBI
department and now they are given the pension from EOBI department.
45
6-LABOR MANAGEMENT RELATIONS:

Labor Management Relation means relationship between management and employees at work
place. The overall productivity depends upon good relationship between workers and
management. It has been always the top priority policy of management of any organization
that always good relationship created at site. If the workers are motivated and satisfied with
their jobs then the productivity will be always increased. Otherwise the less motivation will
be the cause of decreasing the productivity and its results will be come in shape of loss or
reducing the profit of organization.
In Mughal Steel both direct and indirect labor Management relations are observed. Every
worker has the right to discuss his problem with the management directly. It shows that there
is no communication gap between labor and management. On the other hand the workers or
the labor discuss their problems with their Head of department and then HOD discuss the
matter with the management, which takes time and communication gap remains between
labor and the management. But mostly we observe open approach is used that is direct
relations with the management.
46
7-CRITICAL ANALYSIS:
The critical analysis of the theoretical concepts relating to practical experience of my
internship at Mughal Steel in Human Resources Department is as follows.
Analysis of HR Planning and Forecasting:
As we learn in our MBA text that HR planning and forecasting plays an important role in the
planning of human resources. But, in practically at Mughal Steel HR Planning and
Forecasting is not observed instead of Mughal Ferro Alloys. For Ferro Alloys the HR
department prepares a comprehensive planning sheet for new recruitment. Here planning is
not necessary, first they take actions and then think about the action taken. So there is a need
to plan before taking any action.
Analysis of Recruitment and Selection:
After HR Planning and Forecasting, Recruitment and selection of an employee is

important. As for as Mughal Steel is concerned, Employee recruitment and selection
follows the right criterion of selection. HR department receives the requisition form
from HOD of the department then after meeting with management they take the next
step and recruit the right candidate.
Analysis of Employee Training and Development:
Training and Development plays important role in the career development of an

employee. In Mughal Steel there is a proper policy to train the employees. In April,
2007 ERP system was introduced to work properly.
ERP trainings have been
conducted twice to train the workers. For new Mughal Ferro Alloys plant they sent
their Engineers to China for training of about three months. Because this is the first
plant of its nature in Pakistan. So their Engineers got training from China and now
they are serving there.
47
Analysis of Employees Performance Management:

As we read that performance management plays vital role in the development and
motivation of an employee. Good Performance Appraisal is necessary to retain the
workers. As for as Mughal Steel is concerned they also evaluate their employees. As
it has been discussed, they appraise their workers twice in a year. There are many
attributes which have to be discussed during appraisal but practically situation is
different. The HR department evaluates their employees annually, Mughal Steel
spent lot of money on performance appraisal but the result is zero. Because there is
an error of biasness. When HR department prepare all the increment lists then
Director HR decided how much increment should be given to this person.
So
Director HR recommended the amount with the negotiation with the HOD and the HR
Department.
Analysis of Employee Compensation and Benefits:
Employee Compensation and Benefit is actually related with reward Management. The
theoretically concepts define us that it is very necessary for the motivation of our employees
that the reasonable and attractive rewards should be paid to employees for their good working
and motivation. But in Mughal Steel, workers and dissatisfied regarding compensation and
benefits. New workers are paid more while old workers are paid low by the management.
There are many examples in this regard. No benefits are provided by the management of
Mughal Steel to the employees. No Social Security and EOBI cards are issued to employees
expect some special cases.
48
8-CONCLUSIONS:
No doubt Mughal Steel is a manufacturing unit but the working substances are the
human being .It goes with out saying that Human resources are the most important in
the organization and so does the Human Resource Department .It integrate all the
activities and functions of the bank like job analysis, recruitment, staffing, training,
designing compensation package, employees appraisal system.
Human Resource Department plays the key role in the hiring, retention, motivation
and promotion of the employees. Actually it assigns the specified duties to the
specified persons in this age of specialization.
Human Resource manager should be well versed and confident in his field. He should
be humane, well natured and have go face reading capabilities .All this ensures his
success. He should be of the notion victory is not the everything but the way of
fighting is.
49
9-Recommendations:
The HR department of Mughal Steel is not fully authorized to take the action
against any employee. Authority should be given to the management of HR
department.
There is a need of duly structured performance appraisal system, equipped

with proper tools of evaluation, attached with reasonable financial elements
and duly supported by the employees of the company.
It is recommended that training and development should be given due

importance and shall be treated as regular function of HR Department.
There is a need to prepare a comprehensive HR Policy Manual to provide the

brief information to the employees about the organization.
Minimum wage should be paid as per law.
Salary slip may be issued to the employees for proper communication of their
salaries.
It is recommended that all employees who fall in the Social Security and
EOBI category should be provided this facility.
All overtime hours may be paid at double rate of salary / wages and one
compensatory leave in case of overtime during the Gazetted holidays may be
allowed.
There is much room to improve the reward scheme and its correct
implementation.
50
10-ANNEXTURE / APPENDICES
Recruitment plan of Ferro Alloys
Staff / Worker Requisition Form
Staff Advertisement in News Paper
Employment Application Form
Interview Evaluation Form
Joining Report of Employees
Employee orientation Form
Training Certificate
Performance Evaluation Forms
For Managers and Officers
For Workers
Leave Application Form
Official Duty form
Application Form for loan against Salary / Gratuity
Exit interview Form
Clearance Certificate
No Demand Certificate
51

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Internship Report on Mughal Steel Group of Industries

CHAIRMAN MBA DEPARTMENT

MR. IRFAN AMIN

St. No. 5, House No. 2

DEPARTMENT OF BUSINESS ADMINISTRATION

ALLAMA IQBAL OPEN UNIVERSITY

Internship Report on Mughal Steel Group of Industries

I extend my heartiest thanks to my seniors, colleagues, and subordinates who assist

I pay special homage to the following persons.

Salute to the marvelous management of AIOU, to have such a thought provoking

Internship Report on Mughal Steel Group of Industries

Internship Report on Mughal Steel Group of Industries

Objectives of studying the organization

Introduction to the Organization

Overview of the organization

Organizational Structure of HRM department

HRM Process in the organization

Human Resource Planning and Forecasting

Employee Recruitment & Selection

Employee Selection Process

Training and Development

Training Need Assessment

Probation Performance Appraisal & Procedure

Annual Performance Appraisal & Procedure

Employee compensation and benefits

Types of compensation and benefits

Organizational Career Management

Employee job changes with in the organization

Internship Report on Mughal Steel Group of Industries

Termination Request Form

Labor Management Relations

List of Annexure / Appendices

Internship Report on Mughal Steel Group of Industries

1-OBJECTIVES OF STUDYING THE ORGANIZATION:

Internship Report on Mughal Steel Group of Industries

2-INTRODUCTION TO THE ORGANIZATION

Internship Report on Mughal Steel Group of Industries

Internship Report on Mughal Steel Group of Industries

3-OVERVIEW OF THE ORGANIZATION

Internship Report on Mughal Steel Group of Industries

DESCRIPTION OF THE PLANT

Internship Report on Mughal Steel Group of Industries

Internship Report on Mughal Steel Group of Industries

Internship Report on Mughal Steel Group of Industries

Internship Report on Mughal Steel Group of Industries

Disciplinary actions, Show Cause Notice, Inquiry, Terminations etc.

Dealing with external agencies such as Labor Department, PESSI,

Dealing with Health Department ad periodic medical check up of

Time office function recording of daily attendance and overtime

Maintenance of leave record and personal files

Daily updating the attendance record in ERP system.

Internship Report on Mughal Steel Group of Industries

5-Human Resource Management Process in the Organization:

Human Recourse Planning and Forecasting

Employee Recruitment & Selection

Induction & Orientation

Training & Development

Employee compensation and benefits

Organizational Career Management

Employee Recruitment & Selection:

Internship Report on Mughal Steel Group of Industries

HRD gets advance information regarding manpower requirements at the