ACKNOWLEDGMENT

I have great sense of gratitude for the most Beneficent and Merciful ALLAH who has
always helped me in all matters of life. I tried but He rewarded me more than what I
struggled.

Special praises for the HOLY PROPHET MUHAMMAD (P.B.U.H) who

forever is touch of knowledge and goodness for humanity as a whole on the
successful completion of the project.

I would like to acknowledge my deep sense of gratitude and indebtedness to my

best friends and best colleagues Mr. Syed Yasir Ali Bukhari and Mr. Naseem
Awan without their continued guidance and timely advice the completion of this
report would have been difficult. They have been a source of continuous
encouragement throughout the execution of my internship period.

Words cannot say the gratitude that I feel for my mother and my father, whose
affection and prayers have always been the key to my success.

Finally I am also very thankful to all members of Society for Sustainable

Development; with out their guidance and help, it will be impossible for me to
complete my internship. I would like to thank the management of Society for
Sustainable Development for rewarding me such a great experience during my
stay.

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 TABLE OF CONTENTS

TABLE OF CONTENTS....................................................................................................2
TABLE OF CHARTS & ILLUSTRATIONS.....................................................................3
EXECUTIVE SUMMARY.................................................................................................4
1 OBJECTIVE OF STUDYING THE ORGANIZATION.............................................6
2 INTRODUCTION TO THE ORGANIZATION....................................................7
3 OVERVIEW OF THE ORGANIZATION................................................................10
3.1 ORGANIZATIONAL STRUCTURE....................................................................................11
4 ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT............................11
5 HUMAN RESOURCE MANAGEMENT PROCESS IN THE ORGANIZATION: 14
5.1 HUMAN RESOURCE PLANNING (HRP) & FORECASTING..........................15
5.1.1 HUMAN RESOURCE PLANNING PROCESS (HRP)................................15
5.1.2 FORECASTING HR REQUIREMENTS......................................................17
5.1.3 METHODS TO FORECAST HR NEEDS...................................................17

5.2 EMPLOYEE RECRUITMENT AND SELECTION.........................................................18

5.2.1 SOURCES OF CANDIDATES:.........................................................................20
5.2.1.1 Internal sources..........................................................................20
5.2.1.2 External sources.........................................................................20
5.2.1.3 Employment selection process.................................................21
5.3 TRAINING AND DEVELOPMENT................................................................................22
5.3.1 TRAINING NEED ASSESSMENT.............................................................23
5.3.2 EMPLOYEE DEVELOPMENT.........................................................................25

5.4 PERFORMANCE MANAGEMENT...............................................................................26

5.4.1 PERFORMANCE STANDARDS AND EXPECTATIONS...........................26
5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN.............................................29

5.5 EMPLOYEE COMPENSATION AND BENEFITS........................................................30

5.5.1 TYPES OF COMPENSATION AND BENEFITS........................................32

5.6 ORGANIZATIONAL CAREER MANAGEMENT.........................................................34

5.6.1 EMPLOYEE CAREER PLANNING............................................................35
5.6.2 EMPLOYEE JOB CHANGES.....................................................................36

5.7 JOB CHANGES WITHIN THE ORGANIZATION.........................................................37

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 5.7.1 PROMOTION............................................................................................38
5.7.2 TRANSFER.................................................................................................38
5.7.3 DEMOTION.................................................................................................39
5.7.4 SEPARATIONS............................................................................................40
5.7.4.1 Layoff............................................................................................41
5.7.4.2 Termination...........................................................................................42
5.7.4.3 Resignation...........................................................................................43
5.7.4.4 Retirement............................................................................................44
6 LABOR MANAGEMENT RELATIONS.....................................................................45

7 SWOT ANALYSIS........................................................................................................47

8 WEAKNESSES OF THE ORGANIZATION..........................................................49

9 RECOMMENDATIONS....................................................................................................51

10 CONCLUSIONS................................................................................................................53

11 REFERENCES & SOURCES USED................................................................................53

12 ANNEXES / APPENDICES........................................................................................54

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 TABLE OF CHARTS & ILLUSTRATIONS

Figure 1 SSD Organizational Structure.............................................................................10

Figure 2 Structure of Human Resource Department.........................................................12
Figure 3 Recruitment and Selection Process.....................................................................18
Figure 4 Trainings for employees......................................................................................21
Figure 5 Performance Measurement tools.........................................................................27
Figure 5 Performance Measurement tools

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EXECUTIVE SUMMARY

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1 OBJECTIVE OF STUDYING THE ORGANIZATION

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Undergoing an internship program is an essential element of MBA AIOU program. This
practical study does not only provides an overview of the current HR related issues but
also helps internee to understand the dilemmas and solve them in supervision of
experienced HR managers of the organization they are undergoing internship in. The
main objectives of studying Society for Sustainable Development are:
1. To review the human resources department of SSD
2. Analyzing the functionalities and command and control system of human
resources department
3. To find out the weakness and strengths of the human resources department
4. To review the practices of human resources department and comparing them with
the standard human resources theories.
5. To review the human resources development program of the organization
6. To analyze the compensation management program of the organization keeping in
view the compensation management as a critical part of human resources
management.

2 INTRODUCTION TO THE ORGANIZATION

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SSD is a Non-profit and Non-Governmental Organization, founded in 1999 and is
registered with the NWFP Ministry of Commerce & Industry under Society’s
Registration Act, 1860.

SSD has been found to address issues of sustainable development through innovation,
appropriate technology promotion and capacity building. SSD’s philosophy is not to
duplicate the mandate of existing NGOs, rather carve a niche of its own to distinctly
contribute to the sustainable development in general and NRM and water and
environment sector in particular. Thus, SSD calls itself a knowledge based NGO,
predominantly interested in promotion of Best Management Practices and appropriate
technology in the sector.
SSD seeks to achieve its development vision through promoting and practicing an
integrated approach to sustainable development encompassing principles of:

➢ Participatory and human rights based approach to development,

➢ Strengthening grass roots level organization to ensure local level services delivery
following principles of subsidiary

➢ Behavioral change Communication to identify and target vulnerable practices for

a sustained development

➢ Introduction and promotion of appropriate technologies to crystallize change in

largely dormant societies

➢ Productively engage children as change agents through active learning

methods/life skills based education/child to child communication for realization
of behavioral changes for sustained development

➢ Develop models of participatory civil and environmental planning, design,

management and implementation;

➢ Capacity-building of municipalities, local government institutions and NGOs in

specialized areas relating to environmental planning and design;

➢ Design and implementation of environmental impact assessments and

participatory benefit monitoring systems.

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Key Strengths

➢ Project cycle management of projects in areas of:

➢ Water Supply, Sanitation & Hygiene;

➢ Livelihood;

➢ Local Governance;

➢ Community Infrastructure;

➢ Appropriate technology development and promotion;

➢ Participatory Development; and

➢ Emergency assessment, response and reconstruction.

SSD through its network partners is extensively represented in FATA specially Khyber
and Mohmand Agencies through Tribal Reforms and Development Forum (TRDF) and in
North and South Waziristan through local CBOs.

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3 OVERVIEW OF THE ORGANIZATION

(Overview)

Offices & Infrastructure

Head office of SSD is located in Peshawar while its 3 regional offices have been
established in Mansehra/Abbottabad, Battagram & Muzaffarabad to fully attend to
emergency program needs in the earthquake affected areas.

Address(s):
Head Office:
House # 223, K1, Phase III, Hayat Abad, Peshawar
Tel: 091-5816876

Regional Office Mansehra

Dab #2, Pakhwal Road, KKH, Mansehra

Tel: 0997-236013, 249031

Regional Office Battagram

Adjacent District Hospital Battagram, KKH, Battagram
Tel: 0997-311723, 333434

Regional Office Muzaffarabad

D-139, Upper Chattar, Muzaffarabad
Tel: 058810-51070

3.1 ORGANIZATIONAL STRUCTURE

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Mr. Abdul Wakeel is the Executive director of Society for Sustainable Development.

Figure 1 SSD Organizational Structure

4 ORGANIZATIONAL STRUCTURE OF HRM DEPARTMENT

Society for Sustainable Development SSD is basically a functional and project oriented
organization. The management is decentralized. Due to its project oriented functionalities
the number of staff and the work of human resources vary time to time. Human
Resources Directorate is based at SSD head Office Peshawar while Human Resources
Offices works in three SSD area offices- Peshawar, Muzaffarabad and Mansehra. The
division of work between the Directorate and HR Area Office is as follows:

HR Directorate: (Peshawar)

➢ Developing Standard Job Descriptions

➢ HR forecasting at a large

➢ Compensation Management

➢ Developing HR policies

HR Area Offices: (Peshawar, Muzaffarabad, Mansehra)

➢ Recruitment for concerned area Offices

➢ Salary Processing and Leave Records

➢ Implementing HR rules and compensation management as per HR

directorate directions

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 ➢ Labor Management Relations

Currently Mr. Bilal Ahmad is acting as Area Manager SSD Muzaffarabad. He is

responsible for the project undergoing in the area as well as the Human Resource
Department. The HR department in Muzaffarabad works closely with Human Resources
Department of the Organzarion and the Area Manager in based in Muzaffarabad. The
Organization Structure of SSD Muzaffarabad is as follows:

Figure 2 Structure of Human Resource Department

sor)
i re c t S
upervi
in e s (D
5 HUMAN RESOURCE MANAGEMENT PROCESS IN THE Red L
ORGANIZATION:

Society for Sustainable Development (SSD) is a project oriented organization. Mr. Riaz
Ahmad is the Director Human Resources. He has more then 20 years of experience in the
field. In the beginning SSD was using traditional techniques for selection. But with the
passage of time it is moving a bit forward. Now while selecting any candidate it uses
short questionnaires, on computer problem solving techniques and interviews. The
organization structure of SSD is more projectized. The Human Resource Process moves
forward with close consultation of the concerned project manager and manager
B lu e L
in e s (In
d ire c t S
uper vis
or )

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5.1 HUMAN RESOURCE PLANNING (HRP) & FORECASTING

The concerned project office is to provide general information on their future human
resources requirement as per their plans. Human resources office is responsible for
Human resource planning with strong consultation of the project office.

5.1.1 Human Resource Planning Process (HRP)

Human Resource Management Process is the process of systematically reviewing

human resource requirements to ensure that the required number of employees, with
the required skills, is available when they are needed. After an organization’s
strategic plans have been formulated, human resource planning can be undertaken.
Human resource planning has two components: requirements and availability.
Forecasting human resource requirements involves determining the number and type
of employees needed by skill level and location. In order to forecast availability, the
human resource manager looks to both internal sources (presently employed
employees) and external sources (the labor market). When employee requirements
and availability have been analyzed, the firm can determine whether it will have a
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 surplus or shortage of employees. Ways must be found to reduce the number of
employees if a surplus is projected. Some of these methods include restricted hiring,
reduced hours, early retirements, and layoffs. If a shortage is forecasted, the firm
must obtain the proper quantity and quality of workers from outside the
organization. In this case, external recruitment and selection is required.

SSD is a project oriented organization. It does its HRP during formation of the
proposal of the contract with any donor. SSD uses the following steps for HRP
Planning.

Steps in HRP process

➢ Determine the impact of organizational objectives on specific organizational

unit

➢ Define the skills required to meet objectives (demand for Human Resource)

➢ Determine additional human resource requirements in light of current HR

(net HR requirements)

➢ Develop action plan to meet the anticipated HR needs

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5.1.2 Forecasting HR requirements

A requirements forecast is an estimate of the numbers and kinds of employees the

organization will need at future dates in order to realize its goals. Several
techniques of forecasting human resource requirements and availability are
currently being used by organizations. SSD mainly forecast its HR requirements
at the time of making proposals. The Human resource manager and the manager
project or the director is mainly responsible for forecasting HR requirements. No
hard and fast rules are being observed in forecasting HR requirements; the
requirements are being set as per the work schedule provided by the donor.

5.1.3 Methods to forecast HR needs

As I said earlier that no hard and fast rules are being observed in forecasting HR
needs. Only managerial judgment is seen to be sufficient for forecasting Human
resources needs for upcoming projects. For that purpose top management

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 conducts interviews with the executives to find out the need of HR for the coming
year.

The following methods can be used for forecasting HR needs:

Statistical approaches

a) Trend analysis

b) Ratio analysis

c) Regression analysis

Judgmental methods

a) Managerial judgment

5.2 EMPLOYEE RECRUITMENT AND SELECTION

Once the forecast is developed and approved from the top management, the HR
department starts Recruitment & Selection process to fill up the vacant positions.

It is always thought to be better to get any existing employee of the organization

promoted because it saves money on trainings and time on hiring new personnel.
If the person not found from the organization’s internal sources then the positions
are advertised and selection committees are to be made. The complete recruitment
& selection process at SSD is as follows;

Figure 3 Recruitment and Selection Process

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5.2.1 Sources of candidates:

There are various sources available for the recruitment of potential candidates,
which are broadly divided in two categories.

Internal Sources

External Sources

5.2.1.1 Internal sources

The first choice of SSD is to utilize its internal sources. When some new post is
created or some post is vacant due to termination, resigning and promotion of
employee, The HR department scan internal organizational environment to locate
the potential candidates. Whenever any position is available, HR Department
advertises the position internally through management memo. Interested
candidates submit their CVs along with the written permission from their
respective managers for the new post. These information’s are then forwarded to
top management and after there approval a formal notification is sent to interested
candidates for interview. After interview, job is offered to successful candidates.

5.2.1.2 External sources

If not any suitable employee is available within the organization, HR department

advertises the position for external candidates.

For external recruitment, HR department uses internal and external resources and
referrals. Existing candidates can recommend any outside personnel suitable for
the job. If this is not possible then HR department advertises the position in

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 newspaper. The advertisement is published in at least one national and one local
newspaper.

5.2.1.3 Employment selection process

The selection process typically begins with a test and then candidates complete
the application for employment. They progress through a series of selection tests,
the employment interview, and reference and background checks. Several
external and internal factors impact the selection process, and the manager must
take them into account in making selection decisions. Typically selection process
consists of the following steps

1. Initial Screening

3. Pre-employment Testing

➢ General Intelligence Tests

➢ Personality and Interest Tests

➢ Honesty Tests

4. Interview

➢ Structured Interview

➢ Unstructured Interview

➢ Mixed Interview

5. Background Checks

6. Conditional job offer

8. Final Selection Decision

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5.3 TRAINING AND DEVELOPMENT

Upgrading employees' performance and improving their skills through training is

a necessity in today's competitive environment. It is becoming more and more
important for the organizations to train their employees in order to get efficiency
and effectiveness.

Mainly SSD provides three type of trainings to its staff;

Figure 4 Trainings for employees

The HR department of SSD is responsible for Training and Development of its

employees. There are series of trainings provided to the employees. Various
internal and external sources are used for training the employees.

Once a new employee inters into SSD culture, he receives orientation for his job.
Orientation is basically a one to two hour activity in which the new employees are
informed about the organizational structure, term & conditions of employment,
the duties of incumbent, the ethical & behavioral requirement for the new
employee and the so.

Then he works on probation for at least 6 month that provides On-job training
opportunity to the employee. The HR department also arranges various trainings
and seminars, workshops and group sessions to build their employee’s skill up.

5.3.1 Training need assessment

HR department assess the need of training among their employees. Mainly

training need is assessed through following three options;

Organizational Analysis: It is an examination of the kinds of problems that an

organization is experiencing and where they are located within organization.
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 Task/Operational Analysis: An operational analysis identifies the kinds of the
skills and behaviors required of the incumbents of a given job and the standards of
performance that must be met.

Personal Analysis: The objective of the personnel analysis is to examine how

well individual employees are performing their jobs. Training should be given to
those who need it. Assigning all employees to a training program, regardless of
their skill levels, is a waste of organizational resources and create a unpleasant
situation for employees who do not need training.

Mostly when there is a performance gap i.e. the performance is not up to the
specified standards training is required to improve the performance there are
certain factors that are kept in mind before conducting training:

• Number of employees experiencing skill deficiency: Number of employees

supposed to be trained.

• Importance of skill: How important is skill to be possessed by workforce.

• Extent to which skill can be improved with Training: Would there be real
difference in skill level in case the training program is conducted.

Determining Training Needs:

HR department is responsible for determining the needs of training. For that

reason HR department works closely with the management and Project Managers.
Normally through following sources training needs are assessed.

➢ Self-assessments

➢ Company records

➢ Customer complaints

➢ Interviews with managers

➢ Customer satisfaction surveys

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 ➢ Observation

5.3.2 Employee development

For better results and effective and efficient performance of the employees, they
should know exactly what is expected of them and what is required by the firm
for advancement in the job.

That is why SSD takes employee development very seriously. Various training
sessions are conducted for the employees during various course of time.
Employee Development is performed through orientations, on job Trainings,
Professional Readings. For this purpose SSD holds a small library as well which
consists of around about 500 books on various social, development and
managerial issues.

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5.4 PERFORMANCE MANAGEMENT

Performance Management has always been core issue to be discussed within any
organization. A performance management system consists of the processes used
to identify, encourage, measure, evaluate, improve, and reward employee
performance at work.

Society for Sustainable Development encourages their employees to achieve high

level of excellence i.e. in

➢ Quality of output

➢ Timeliness of output

➢ Presence at work

➢ Cooperativeness

➢ Efficiency

➢ Effectiveness

These excellences are appreciated by the management at their monthly meetings

with their employees and in the form of certificates, cash and shield awards.
However all these activities are qualitative in nature. The activities of employees
are recorded on the basis of observation and performance appraisals made by the
management every year and time to time.

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5.4.1 Performance standards and expectations

Usually following determinants are considered for performance Management;

1) Willingness to perform:

If employee is performing tasks and responsibilities in the organization

with willingness level of the performance will be high and will be up to
the standards.

2) Capacity to Perform:

If the basic qualifications abilities and skills required performing specific

tasks are possessed by the employees the level of performance will be in
accordance with the set standards and vice versa.

3) Opportunity to Perform:

Favorable circumstances and opportunities to perform the challenging

tasks which are more contributory towards achievement of the
organization’s mission and objective can be reasons to have more effective
performance from employees.

Figure 5 Performance Measurement tools

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5.4.2 How performance reports are written

Supervisors are responsible to submit performance appraisal report at the end of

each year normally in December. All these reports must be submitted to HR
department after having them signed by the employee and his direct supervisor.

However these performance reports are not very much helpful in increase of
salary and promotions. That is why these reports are not considered seriously
which makes this whole process useless.

A typical performance report of Society for Sustainable Development contains

information as

➢ Name of employee

➢ Designation of Employee

➢ Name of performance evaluator

➢ Department

➢ Date & Time

➢ Performance Standard (Arranged according to their priority)

○ Rating

○ Critical Incidents

○ Explanatory Notes

➢ Remarks

➢ Signature of Supervisor

A sample of Performance appraisal is attached with the report as Annex II

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5.5 EMPLOYEE COMPENSATION AND BENEFITS

SSD have a different pay structure for different level of employees. HR

department is responsible for pay and pay related issues. It was also found that
salary determination in SSD is a matter of bargaining. i.e. SSD pays 10,000 to a
social organizer while pay 15000 to another having same experience and
qualifications.

There are no specific rules and regulations for salary determination in Society for
Sustainable Development thus this is a big disadvantage of compensation system.
As a result a turn over rate is increasing day to day. However management
positions are paid better then the supervisors or field workers and the policies for
them are also better. Due to this dual and non standardized compensation system
SSD has always been facing lack of experienced and skilled workers.

To get the better results SSD needs to improve their pay structure and
compensation plan and should change its HR strategy. The better result can only
be achieved when the compensation plan is able to select, engage, develop, retain
and attract new employees. That would not only help the organization to achieve
better results but also to make a higher position in the local NGO competition.

HR Results
Desired
Strategy

Figure 6 HR Compensation Strategy

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 5.5.1 Types of compensation and benefits

There are only one type of pay structure is available for the lower level
employees. i.e. basic pay. No other direct & indirect pay & benefits are provided
to the employees. For the lower level employees Society for Sustainable
Development is giving time base pay i.e. every employee have to work for 40
hours a week after which he has subject to receive his pay at the end of month.
Not a single type of allowance is paid to lower level employeesNo portion of the
pay is directly or indirectly associated with the performance. As a result
motivations of the employees are low.

The composition of salary of lower level employees consist of :

➢ Basic Salary

➢ Overtime

Managers are entitled to receive the following compensation:

➢ Basic Salary

➢ Bonus Pay

➢ Per diem

➢ Travel Allowance

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 Figure 7 SSD Compensation System

5.6 ORGANIZATIONAL CAREER MANAGEMENT

Career planning is an ongoing process through which an individual sets career goals and
identifies the means to achieve them. The process by which individuals plan their life’s
work is referred to as career planning. Through career planning, a person evaluates his
or her own abilities and interests, considers alternative career opportunities, establishes
career goals, and plans practical developmental activities.

In Society for Sustainable Development employees are suggested according to their

career goals and their skills and qualifications. Usually, career planning programs are
expected to achieve one or more of the following objectives:

➢ More effective development of available talent.

➢ Self-appraisal opportunities for employees considering new or nontraditional

career paths.

➢ More efficient development of human resources within and among divisions

and/or geographic locations.

➢ Satisfaction of employees’ personal development needs.

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 ➢ Improvement of performance through on-the-job training experiences provided
by horizontal and vertical career moves.

➢ Increased employee loyalty and motivation, leading to decreased turnover.

➢ A method of determining training and development needs.

5.6.1 Employee Career Planning

Society for Sustainable Development provides good career planning to its employees.
The career counseling is provided through different means

A. Discussions with Knowledgeable Individuals

SSD has good very experienced and skilled management which provides
excellent career development techniques and knowledge to their employees.
This is not a formal type of discussion. Mr. Bilal Ahmad who is the in charge
of HR has also got very good experience in career development and career
counseling. He tries to share his experiences with the employees for their
development.

B. Company Material

SSD has got very good career development material to study. For that reason
SSD has a library which consists of more then 500 books on different topic
especially related to social development. Every one can easily avail these
books from management office. The library is free of cost but the number of
books should be increased so that employees can have a good knowledge for
their development available on one table.

C. Performance Appraisal System

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 As performance appraisal does not have direct link with promotions and
salaries practically however it provides excellent opportunity to employees to
see where they are in terms of their performance. After having knowledge of
performance appraisal they can set their targets and can work to achieve the
best performance.

D. Workshops

As SSD is pioneer of some very useful social development techniques, SSD

believes in career development through workshops. Workshops are arranged
on different topics by SSD management for their employees. Sometimes other
organizations are also invited to participate in workshops which provide good
opportunity for experience sharing and organizational motivation.

5.6.2 Employee job changes

Job changes in Society for Sustainable Development is a matter of routine.

Turnover rate is very high in SSD even though SSD give its employees priority
for selecting him for any new position within the organization. The reason for that
is lack of employee’s confidence over management, dual salary system, no
relation of performance with salary and promotions.

However when any job is lying vacant or some new post is created because of
expansion or addition of new project, SSD first priority is to select employees
from the current pool. For this purpose SSD announces the vacancy internally and
invite the current employees to submit their CVs along with required documents
and then select the right candidate for the post. If right candidate are not available
to fill out the vacancy then SSD search for candidates who have the required
competency and are willingly to fill the post but not have proper knowledge
and/or skill required for the post, then SSD arrange an up gradation program

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 which best suit the employee requirement for the new post. As a result the
employee’s response for the new position is always higher than expected.

5.7 JOB CHANGES WITHIN THE ORGANIZATION

Job changes in SSD are managed by HR Department. When there is new post created
in the company or some post became vacant because of layoff, dismissal, promotion
or demotion etc,

SSD first announce the post through their display board. Interested employees are
informed to submit their CV’s along with required documents and with NOC from
the head of their department. After receiving such documents, the HR Manager verify
the information collected and match the current post requirement with that of
competencies and capabilities of the employees. HR Department conducts a short
interview with that of interested employees.

HR department shortlists the employees after consultation of employees’ direct

supervisor. Short listed candidates are called for interview. In interview the reasons of
leaving the previous job and joining a new position remains core issues to be
discussed.

Normally following type of questions could be asked:

➢ Why he is applying for this specific job?

➢ What is the deficiency the employees feel in their current job?

➢ How he will manage the new job?

➢ What does employee expect from the new job? etc.

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 In the light of interview conducted and the recommendation and NOC of the current
head of employee department, HR department makes an initial recommendation to
higher management (Chief Executive, General Manager). After approval from the top
management the employee, previous and new manager of the employee are informed
and employee is given new position title.

Employee signs a new contract agreement but mostly the terms and conditions
remains the same as before.

5.7.1 Promotion

In case of promotion, the head of department inform the HR Manager through

intercommunication form about the performance of an employee.

After receiving such information, the HR department recommends the employee

for possible promotion within department to top management. The top
management decides in the light of recommendation from the head of department
& HR department to promote or not. The decisions of the top management were
mostly verbally, and the HR department in the view of decision makes necessary
documentation.

Promotion policy of SSD is not very much clear as employees do not know when
they will be promoted. It is a matter of top management decision. As a result of
this, some employee promoted very early like after 6 to 7 month of employment
while some are still waiting for promotion after 5 years of employment.

5.7.2 Transfer

Transfer policy of SSD is clearly mentioned in job description & in appointment

letter. SSD transfer policy stated that when ever services of an employee are
required in some other department and/or any section within the firm, the
employee must assume the responsibility without any hesitation and any reasons.
The employees’ job description clearly says that whenever suitable, in the favor
of SSD, employee will be appointed in any section of the organization or any
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 geographical location. However employees are consulted before their transfer to
any other project or geographical area.

As SSD is a project oriented organization and works on many projects at the same
time which can totally be different in nature. SSD needs their skilled employees
sometimes more then one project. So in that cases employee is assigned different
activities from different projects.

Employee some times also takes part in transfer process and willingly apply for
transfer because the transfer gives them fresh life in the form of new knowledge
and skill.

This type of transfer is voluntarily one. While in involuntarily one top

management decided which one is transfer and which one not. The employee has
the right to ask the management to review their decision about transfer and the
last decision remains with the employee but only on the basis of solid reasons.

5.7.3 Demotion

Demotions are mostly associated with failure of the employee but limited
promotional opportunities in the future and the fast pace of technological change
may make them more legitimate career options.

However there has not been a single issue of demotion occurred in SSD to date.

HR policy documents shows that when any employees does not show satisfactory
performance within 1 year period and does not improve his performance after the
recommended training from the concerned department manager, makes
continuously same mistakes, does not oblige the order of department manager,
supervisor and any other senior and after informally verbal, formal written and a
formal show cause notice, does not satisfy the concern officials in show cause
case hearings, theft, damage to company property, engage in any other activity
other that assigned one and the same and leaking company critical or non critical
information to outsiders include relatives, friend and competitors of the firm are
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 subject to demotion, penalty equivalent to damage, withholding salary, and
termination from the employment with or without notice.

5.7.4 Separations

One of the worst decisions an employer or employee made is the decision of

separation from the firm. The employee turnover rate is very high in SSD. Almost
10 to 15 employees finds job elsewhere and decide to join other organization.
Normally the employee leaves the job because of various reasons such as

➢ Finding better job

➢ Less attractive current job

➢ No career growth in current job and/or current organization

➢ Unexpected new complex & lengthy assignment in the job

➢ Bad employment condition in current job

➢ Unacceptable supervisors, manager’s behaviors.

➢ Inequality in pay

While the employer removes an employee also have one of several reasons such
as

➢ Continuous low performance of an employee

➢ Cutting unnecessary overheads.

➢ Increase profit by reducing cost through cutting employees strength.

➢ Hire low wage workers by removing high paid workers.

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 ➢ Layoff union workers because of strikes, lockout etc

➢ Due to inflationary or recession conditions

➢ Layoff old workers because of less or no knowledge of advance

technology.

➢ Employee who leak out critical firm information to outsiders.

➢ Employees who damage company property.

➢ Continuous absence from the job

Unfortunately in SSD this decision were made frequently in the last 2-3 years.

Almost more than 50% of employees were got separation due to several reasons
such as

➢ Unacceptable behavior with that of supervisor and/or manager

➢ Lake of good compensation management

➢ Lake of good performance management

➢ Less career growth opportunities

5.7.4.1 Layoff

Layoffs occur when employees are put on unpaid leaves of absence for time
period longer than approved one.

Each employee is entitled to have 20 days annual leave along with 20 days
annual vocational leave after completion of 5 years of service and onwards.
Employee is also entitled to have 15 days sick leaves per annum but the
employee has to provide medical certificate in case of two consecutive sick
leaves. 3 months maternity leaves are provided to female workers while 5

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 days leaves are awarded to the male employees who got new baby to take
care of his spouse and the baby.

SSD have a strict policy on leaves. If an employee makes extra leaves

without prior approval, a written show cause is issued to him within 7 days.
If the employee does not provide reasonable reason to HR department, then
he has a danger of layoff. Only 7 times this option is used.

If employee does not respond to the show cause within 3 days of receiving,
another show cause is issued and if he still not respond within 3 days of
receiving, a layoff letter is send to him and thus in this way the employee is
terminated.

Employees can also apply for unpaid leave in case of emergency such as
medical leave, maternity leave, educational leave etc. but prior permission
from HR department is necessary.

5.7.4.2 Termination

According to SSD HR policies, an employee can be terminated due to

following reasons

➢ Unacceptable behavior

➢ Damage to Firms property

➢ Does not obey Management orders

➢ Smoking and engage in activities prohibited by the management

➢ Leak information to outsiders

In case of any of the above reason a show cause notice is issued to the
employee, employee submit his answer to HR department which presented
in the committee consisting of HR manager, Direct Manager of the

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 employee and the Area Manager. The committee is responsible for making
decision whether the employee should be terminated or not.

5.7.4.3 Resignation

Resignation in SSD is another big reason for brain drainage of valuable

talent. SSD spend valuable and its precious time to reward a good
experience but because of the weakness of the system, when the employee
get some knowledge he resigns from his post and join new firm.

The major causes behind this situation were found as under.

➢ Less opportunity for career growth due to less room for innovation
and creativity because of standardized rules and procedures

➢ Lower salary

➢ Unsatisfactory work conditions.

➢ Unacceptable term and conditions.

➢ Tight supervisory control

➢ Lack of trust

➢ No benefits for most of employees.

SSD does not so far make some sound homework to reduce this trend. As a
result this situation persists. Because of bureaucratic style of management,
opportunities for others becomes lower & lower down the hierarchy. The
post leave after resignation was not filled immediately. Usually 3 to 4
months are required to fill the posts. It was also observed that resignation
letter was given by employees to the management immediately without
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 waiting period of 1 month. Because there is no benefit for employees thus
resignation was given immediately. Another trend was observed that mostly
resignation application was given 2nd date of new month when employee
get there previous month complete salary thus the management have nothing
to hold and forces the employee not to resign. Resignation is one of the
worst ways which not only effect some department badly but some times the
firm faces dangerous situation.

5.7.4.4 Retirement

There is no retirement plan for employees in SSD. This is also one of the
reasons of turnover, separation and resignations as employee do not see any
other benefit for carrying on their service with SSD after getting any
suitable job in any other organization.

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5 LABOR MANAGEMENT RELATIONS

Labor-Management relations in Society for Sustainable Development are not ideal. There
are not written procedures and policies for labor-management relations. However the
management of the organization keeps good relations with the employees that us why
employees are just satisfied with the efforts management make to solve any employee
related issue. However we can say that the organization keeps normal relations with its
employees. There is no union or employee council in Society for Sustainable
Development however the problems and issues are discussed and solutions are suggested
on the basis of full consensus developed between employees and the management.

There are two-way communications methods in Society for Sustainable Development

which means that the problems and issues are discussed open heartedly from both sides –
management and labor. Several features of Labor-Management relations in Society for
Sustainable Development are;

➢ Every employee has the right to come to meet his immediate supervisor for the
help or solution of any problem. If his supervisor cannot satisfy the employee,
then employee can go to HR department for this problem.

➢ Complaint Box is placed near the entrance of HR office which is opened by HR

manager normally once in a week. So employee can get the solution of his
problem in this way as well.

➢ The organization holds a general monthly meeting. All low level employees, their
direct supervisors, Project Managers and HR manager and Area Manager

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 participate the meeting to share the progress of work, new plans and share the
problems and issues of employees

➢ The Organization treats all employees with respect and dignity, no employee is
subjected to any gesture, language and physical contact that are sexually coercive,
threatening, abusive or exploitative.

➢ Warning are addressed to the employees verbally and in written through their
immediate supervisor. The warning referred to the contraventions committed by
the employee and served to remind the employees the he/she abide by
organizational rules and regulations in performing his/her work, and that this
contravention should not be repeated in future.

➢ A written letter addresses to the employee describing the contravention

committed. The employee is also notified that a higher penalty may be inflicted
on him if the contravention is repeated in future. The warning letter is then put in
the employee’s personal file. Issuance of written warning can be recommended by
the respective supervisor and Head of Department. It will be issued by the HR
department after approval of Chief Executive Officer.

➢ An employee who is absent from the job with out satisfactory explanation and
necessary proof, is considered to be an unauthorized unpaid absence.

➢ Discrimination, intimidation and harassment based on sex, race, religion, age,

color, disability, sexual orientation and cultural background is prohibited at the
workplace.

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5 SWOT ANALYSIS

STRENGTH

➢ One of the largest Non governmental organization in Muzaffarabad

➢ Pioneer of different new Sanitation Approaches like SLTS and CLTS in the area.

➢ Frequent availability of lower wage employees due to organizational member’s

personal relations.

➢ More loyal senior management.

➢ Qualified, experienced and well skilled management staff.

➢ Reduces cost by merging some departments, especially merger of finance and

logistics Department into Administration and Finance Department.

➢ Higher motivational level of management due to Job rotation & Career

Management programs and workshops

WEAKNESS

➢ Lower wage level as compared to other non governmental organization in the area

➢ Availability of less skilled and less experienced low level workers.

➢ Employee turn over rate is high in the organization

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 ➢ Full time HR manager is not available at the post from last 6 months which is a
serious managerial issue.

➢ Low level Employee satisfaction level is very low due to less compensation and
non –relation of compensation and performance and dual pay system

➢ Dual responsibility of various managers due to merger of various departments.

➢ No HR plans and forecasting

➢ No proper job descriptions are formed

➢ Career growth opportunities are only available to selected employees usually the
management.

➢ No referral reward system for employees who recommend competent employees.

➢ No specific promotion criteria

OPPORTUNITIES

➢ Enough room for the implementation of new HR policies & Procedures.

➢ There is variety of skilled managerial and non managerial employees available in

Muzaffarabad who can be hired by SSD.

THREATS

➢ Imposition of new rules and regulations on NGOs in Muzaffarabad by the

government.

➢ Entrance of new local organizations in social sector

➢ Employee turn over rate and absenteeism is high and is a upcoming threat for
organization

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 ➢ Serious shortage of skilled and qualified workers in near future

5 WEAKNESSES OF THE ORGANIZATION

During my stay in SSD I found that SSD has a much room for developments in its HR
department. SSD management needs to be very serious for these developments in HR
department. I found following weaknesses in SSD which needs to be given proper
attention;

a. Serious shortage of skilled and experienced staff in HR department

b. Short term planning and forecasting for human resources.

c. In selecting new candidates, more stress is paid on an internal candidate then

external who prevents out side skilled and qualified candidates to be inducted.

d. More employees in Society for Sustainable Development are offered job due to
recommendations which can create a serious problem in terms of loyalty with the
organization.

e. There are neither formal training programs nor training need assessment
conducted before arranging any training. Career development opportunities are
more easily available to senior managerial staff members then lower level
employees.

f. Orientation & training period of new incumbent are very short and new employee
has to learn every thing from his mistakes.

g. No training need assessment form developed yet.

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 h. No specific compensation plan. Dual pay system in existing salary system in
which low level staff are not entitled to receive travelling allowance and per
diems.

i. No relations between performance appraisal reports and annual salary increase.

j. Compensation & Benefits are lower in Society for Sustainable Development as

compared to other non governmental organizations based in Muzaffarabad.

k. No medical facility available to staff

l. Strict bureaucratic style of management which disturbs labor-management

relations.

m. High turnover ratio and absenteeism than competitors.

n. Different standard are set for different employees working same type jobs.

o. Different pay structure for different employees working same job.

p. HR department is headed by a non HR manager

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5 RECOMMENDATIONS

On the basis of my study during internship period in Society for Sustainable

Development, I recommend following steps to be taken by Society for Sustainable
Development’s management to eliminate the weaknesses of the organization.

➢ Society for Sustainable Development must look for skilled and experienced staff
for its HR department.

➢ Human Resources needs should be forecasted and planned in advance so that the
organization can have much of skill available for the time when it is needed

➢ Internal and external candidates should be given proper importance while

selecting for a new position. There is much talent in Muzaffarabad so external
candidates should also be given chance to prove their talent and skills

➢ Recommendation culture must be ended if the management wants the

organization to be developed.

➢ A comprehensive training program must be developed so that any new incumbent

has the opportunity to learn except keep doing mistakes due to improper
knowledge

➢ New employee must be oriented well and the supervisor must observe that new
incumbent is fully prepared before going on work independently.

➢ Training assessment forms should be developed so that the management could

have idea what type of training is needed

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 ➢ Comprehensive compensation plan should be announced in which dual system of
salary should be ended; low level employees should also be paid per diems and
travelling allowances. Moreover overtime should also be paid but it must be
approved by the head of department in advance.

➢ Compensations must be related with performance appraisal.

➢ HR department must conduct a salary survey to make its compensation plan more
effective and efficient as compared to its competitors in the region.

➢ Strict bureaucratic style of management must be converted to more flexible type

i.e. authority and responsibilities must be delegated to lower level as well. This
action not only increases motivational level of employees but also increases the
loyalty and sense of ownership.

➢ Employee turnover ratio absenteeism is high in the organization due to employee

dissatisfaction. Employee dissatisfaction must be eliminated. HR department must
work on compensation plans and medical facility should be provided to
employees.

➢ There must be same pay structure for all employees working on same position.
There should be specific pay policy.

➢ HR department must be headed by an experienced and skilled HR manager so that

proper HR policies can be developed and implemented.

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10 CONCLUSIONS

11 REFERENCES & SOURCES USED

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Books

Manuals:

Online searching

www.ssd.org.pk
www.citehr.com
www.cbizlinks. Com
http://www.pakstudents.com.pk/
www.shrm.org
Online book resources
http://www.pearsoned.co.uk/HigherEducation/Booksby/Torringtonetal/

12 ANNEXES / APPENDICES.

A-01 Job Advertisement

A-02 Interview Evaluation Form
A-03 Performance Appraisal Form
A-04 Employee Salary Slip
A-05 Employee Personal File Checklist

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