SUMMER 2015

EZZ STEEL HUMAN RESOURCES

MANAGEMNT ANALYSIS PROJECT
TO PROF DR.GHADA EL KOT
BY
MOHAMED AHMED
MAHMOUD SAMIR

EZZ Steel
Introduction
Ezz steel is the Middle Easts leading producer of high-quality long and flat steel
for use in a wide range of end applications. Dependable products, made to
customer and international specifications, combined with unrivalled customer
service has created a strong reputation in the region and an ever-growing status in
markets around the world.

Modern, purpose-built and fully integrated plants in Alexandria, Suez, Sadat City
and 10th Ramadan City produce a wide range of rebar, wire rod, wire mesh and
flat steel products to international quality standards. Continuous investment has
built the company's overall capacity to 5.8 million tons per year, including three
million tons of long products.

Ezz steel has one of the highest levels of productivity in the world, at 800 tons per
employee per year. At the company's long products plants, raw material
processing, steelmaking, casting, rolling and finishing operations are all part of a
continuous, computer-controlled process. Highly trained personnel in fully
automated control pulpits monitor steel production from beginning to end,
ensuring that steel is always manufactured in line with strict quality standards.

Ezz steel is a joint stock manufacturing company with 10500 employees

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Data collected from HR department

Recruiting
1. What are the various internal and external sources of recruitment used?
2. Explain factors affect recruitment process
3. How do you attract new employees
4. How do you know that you need to hire new employees
5. Explain you recruitment process

Selecting
1. Who selects the employees
2. How do you select employees
3. What do you look for while selecting new employees
4. You have two employees that are equal in qualifications who would you select
and based on what
5. What are the problems faced when selecting employees

Training
1. How do you make training effective for employees?
2. How are training needs identified?
3. How would you evaluate the results of training?
4. Who trains employees?
5. Do you train regularly?

Performance appraisal
1. What are the major criteria to assess the performance of employees?
2. What can you aim to achieve through 360 degree performance appraisal?
3. Who evaluates the employees?
4. How often do you evaluate employees?
5. Do you sometime fail in performance appraisal decisions?

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Discussion and Analysis

Recruitment and planning

The organization depends on recruitment from within in filling its vacancies

providing the employees with career development opportunities, the advantages
of internal recruitment: Providing career development opportunities for
employees, Existing employees fit much more quickly into the organization
environment and culture. Recruitment from within means also that the firm
within its recruitment and selection performs succession planning in filling vacant
positions .Organizational benefits would include lower cost ,less time to fit within
the organization culture and no need for orientation ,also organizational benefits
would include higher motivation of employees towards productivity to get
promoted to higher vacant position .Competition between employees could result
in tension in employee employee relationships

The external recruitment methods used by the firm is mainly two methods ,online
based through its website where vacancies are announced ,and external human
resources agency ,in other words external recruitment is outsourced to grab the
following advantages :less time ,less costs ,access to best talents ,the agency had
better knowledge of the market ,and has larger number candidates(shortlisted ) not
applicants.

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The firm has a data base that includes all job needed skills and qualifications in
job specification ,vacancies ,and using these data base to estimate the needed
skills in applicants ,these skills are forwarded to external agency for shortlisting
of applicants into candidates

Recruitment process is made up of the following steps

1.

Step 1: Identify Vacancy and Evaluate Need

2. Step 2: Develop Position Description

3. Step 3: Develop Recruitment Plan
4. Step 4: Select Search Committee
5. Step 5: Post Position and Implement Recruitment Plan
6. Step 6: Review Applicants and Develop Short List
7. Step 7: Conduct Interviews
8. Step 8: Select Hire
9. Step 9: Finalize Recruitment

What attracts the applicants to the firm is the a attractive compensation package
as well as medical benefits ,as well as the name of the company as a large and
profitable organization

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Selection

The accountability for all departmental personnel issues lies with the HR
department head/director. However, it is generally understood that principal
investigators, as supervisors, have the delegated responsibility for hiring decisions
(as well as other employment related decisions. Selection of employees depends
on matching the job analysis with candidates ,the one having the necessary skills
and qualifications are selected

Selection methods used by the HR department Employment tests are not always
required, but they may be appropriate for certain categories of jobs. For example,
it is common to test individuals for clerical, secretarial and assistant positions by
assessing skills such as mathematics, typing speed, and software capabilities.
Human Resources provides testing for individuals on typing speed and accuracy,
and a variety of software packages (at the request of the hiring department).A
skills test is limited to job-related skills and abilities, is not gender or culturally
biased, and gives the highest test weightings to the most important job-related
skills. Tests may be conducted as part of the interviewing process and can be
requested before, during or after the interview. Results of the tests may have a
direct impact on selecting a suitable candidate.

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Tests undertaken for employees before selection differs from one job to another ,
the firm uses Personality Tests to measure personality traits in work settings
especially in leadership and top management skills ,blue collars undertake work
sample tests ,other positions requires computerized tests in mathematics ,English
and accounting .Employees undertake a drug test after passing the tests and
interviews a medical examination may be warranted as a condition of
employment for the successful candidate. Physicals related to job duties are
arranged by Human Resources at the expense of the hiring department. Also
selection uses interviews Human Resources normally arranges interviews between
qualified candidates and the department, Staff from Human Resources may
participate on selection committees at the invitation of the department to provide
advice and guidance on candidate evaluation, interview techniques .It is
particularly advised that a member of the Human Resources Department be
invited to participate in selection committees for positions in higher grades

Major selection problems faced can be summarized as follows

1. During the selection process, a hiring manager might become too
interested in a single quality or talent he expects of a candidate. This can
limit his focus when looking over applications and resumes, and
conducting interviews.

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2. Selecting tools usually offer more insight into a candidate's skills and
experiences to perform the job. The indirect qualities, such as friendliness,
communication skills and interpersonal skills, require some interviewer
observation. Someone with loads of talent might negatively affect your
work culture if he doesn't have the attitude and personal qualities to blend
well with other employees

Performance appraisal

Appraisal is done to assess the performance of employees relative to

predetermined standards .Appraisal requires the existing of clear standards,
fairness in measuring employees' standards and a necessity to communicate the
results of the appraisal as feedback to the employees. Appraisal affects training,
compensation, and future recruitment. Discussion with HR staff had shown that
the organization has set goals as performance standards but viewed to be un
doable ,and difficult by employees ,this is maybe due to the fact that answers
had shown that employees arent given the chance to express their opinions and
share the process of goal setting ,accordingly we can expects that employees
might see goals and performance standards to be un doable and difficult
.Discussion showed little direction sharing and alignment with the overall
strategic goals because employees arent kept informed about business issues.
Performance management is much more cyclical process when compared to
appraisal, because performance management is continuous and constantly
should be done to control the employees' performance, measuring his /her
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performance, giving feedback, coaching then re-measuring and so on. A major

deficiency is noticed within the questionnaire answers, managers dont provide
help or support to employees when needed.

360 performance appraisal isnt applied ,360-degree feedback will include direct
feedback from an employee's subordinates, peers (colleagues), and supervisor(s),
as well as a self-evaluation

Supervisors and managers are the one responsible for performances appraisal, as
they submit appraisal reports to top management and HR to determine the
financial incentives or promotional opportunities. Appraisal is recorded and
done regularly by supervisors as it's part of their job

The HR responses had stated that performance appraisal methods used in the
firm include
1. Rating Scales: Rating scales consists of several numerical scales
representing job related performance criterions such as dependability,
initiative, output, attendance, attitude etc. Each scales ranges from excellent
to poor. The total numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost, every type of job
can be evaluated, large number of employees covered, no formal training
required. Disadvantages Raters biases

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2. Checklist: Under this method, checklist of statements of traits of employee in

the form of Yes or No based questions is prepared. Here the rater only does
the reporting or checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited training required,
standardization. Disadvantages Raters biases, use of improper weighs by
HR, does not allow rater to give relative ratings

The organization doesnt apply aligned reward strategy, as performance is kept

away from the compensation received by employees. This might lead to expect
that compensation depend on other subjective matters other than performance,
this would result in low sense of equity and mistrust in appraisal process

Training and Skills development

HR department has an annual training program that pays attention to regularly

expose employees to skills development and training programs .They type of the
job would highly affect the training method to be used .The firm uses
performance analysis to determine the training needs razing the questions : Are
the employees performing up to the established standard? If performance is below
expectations, can training help to improve this performance? Is there a
Performance Gap?

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Training methods used by the HR department within their annual training

program depends mainly on job training, assumed to be the best method by HR
department On-the-job training is training that takes place while employees are
actually working. It means that skills can be gained while trainees are carrying out
their jobs. This benefits both employees and the business. Employees learn in the
real work environment and gain experience dealing with the tasks and challenges
that they will meet during a normal working day. The business benefits by
ensuring that the training is specific to the job. It also does not have to meet the
additional costs of providing off-the-job training or losing working time. On job
training methods applied include: Coaching an experienced member of staff
will help trainees learn skills and processes through providing instructions or
demonstrations (or both), Monitoring each trainee is allocated to an established
member of staff who acts as a guide and helper, and Job rotation this is where
members of staff rotate roles or tasks so that they gain experience of a full range
of jobs. The firm also uses other methods for training like class room lectures
mainly held by an external training company

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Conclusion
1. The organization depends on recruitment from within in filling its vacancies
providing the employees with career development opportunities, the advantages
of internal recruitment. Organizational benefits would include lower cost, less
time to fit within the organization culture and no need for orientation. A possible
result was the competition between employees could result in tension in employee
employee relationships ,employees answers had shown no loyalty towards their
employee fellows ,negative employee-employee relationships have negative
impacts on achieving the organizational goals

2. Organization has set goals as performance standards but viewed to be un doable

,and difficult by employees , employees arent given the chance to express their
opinions and share the process of goal setting , little direction sharing and
alignment with the overall strategic goals because employees arent kept informed
about business issues', employees receive very little feedback from their
immediate supervisors .
3. Employee dont' receive continuous feedback from their immediate supervisors
,employees compensation doesnt depend to a great extent on performance (out of
the discussion HR staff said they all receive almost the same profit share and
monthly incentives with no regards to individual performance).

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Employees regularly receive training HR department has an annual training

program ,the firm uses performance analysis to determine the training needs .Onthe-job training methods applied include: Coaching ,and Monitoring .The firm
also uses other methods for training like class room lectures mainly held by an
external training company

Recommendations

Performance standards should be reviewed and re placed in a realistic way and

with employees' participation to gain acceptance. Managers should link the
strategic goals to employees' and job goals and keep employees informed with the
overall strategic orientation of the firm

360 degree performance appraisal should be implemented to enhance the

performance appraisal process

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