Mission Statement

“Transform PTC to perform with speed, flexibility and

enterprising sprit of an innovative, consumer Focused
Company.”

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 Vision Statement

“To be the best factory in the region”

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History

From being the first multinational to set up its business in Pakistan in 1947 and beginning
operations out of a warehouse near Karachi Port, we have come a long way.

From being just a single factory operation to a company which is involved in every aspect of
cigarette production, from tobacco cultivation to packaging we have evolved and grown with
Pakistan. However, what is significant about these fifty-seven years is the effort that PTC has
demonstrated in the development of the country. By being instrumental in the campaign for
modern agricultural and industrial practices, we have helped in the development and progress of
the agricultural & industrial sector in the country.

We have been supporting & contributing to various causes of national interest. Educating growers
in the latest techniques and technology in agriculture, a forestation and free health care in
designated areas are but a few examples.

Through these fifty-seven years, our continuous investment in people, brands, technology,
innovation and the communities in which we operate has borne fruit in many ways and to mention
just a few; we are deemed as a partner of choice by many, our Environmental, Health & Safety
standards are a source of inspiration for local companies, our Industrial Relations practices have
led and influenced local practices, and as a result of all these, our managers are highly valued
and sought after people in the Pakistani corporate world based on the training and exposure we
give them from very early on in their careers.

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 Introduction to Pakistan Tobacco
Company
Pakistan tobacco company was incorporated 1947, after Pakistan became.
This company is the part of British American tobacco company (BAT). British American
Tobacco was incorporated in 1902 by merger of British and American Tobacco
Company. It was a leader of 180 markets in 94 countries. First production plan was
started in Karachi. There are tow more companies incorporated in Pakistan like PTC
Jehlum and PTC Akora. Pakistan Tobacco Company which was incorporated in Karachi
was closed in 1992. Now only two companies are working that is:-

• Jhelum Factory.
• Akora Factory.

Jhelum Factory:
Pakistan Tobacco Company was incorporated in 1955. It started its work in 1956.
Initially it manufactured Red lem, Telegraph, Would brine, Scissor, Stars, and Polo. Now
in present, it manufactured different types of brand i.e. Benson, Hedges, Gold leaf, Gold
Flack and Capstan.
In 1971, PTC started too manufactured of filter rod also. Before only two main 1992 the
company was also producing pipe tobacco but later company terminated this
manufacturing. As manufacturing and packing are two different things so in order to
achieve the desire level of output, high speed maker and packer were introduce in 1993
and 1994 respectively. Before 1994 there were departments as primary and secondary
departments. In 1994, the secondary department was divided in 8 teams. In 2002 there is
only one team of operation. In 1996 all types of printing operations were terminated and
now a day this function is performed by the Packages Limited Lahore. In 1997, product
separation in the form of parcels was introduced. In order to attract the more competent

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And professional-oriented management, a training programmed was introduced in 1997.
In order to achieve the quality standards, the quality control management introduced
inspection of incoming material.

Jhelum factory has several departments working here and performing their respective
jobs with ultimate aim of accomplishing the company’s task. Some of these departments
are directly involved in production and are known as “Production Department”. While
there still other departments which support the processing department. These departments
are called “Supporting Departments”. Factory manger is responsible for the performance
of the entire unit heads. Under there are different mangers who had their own respective
departments. Other persons down the hierarchy further support these mangers and the
business support officer further assist them.

Akora factory:
The factory was established in 1976 and is located approx. 100 Km from Islamabad
toward north of Grand Trunk Road leading toward Peshawar. Main brand which are
manufactured here are Capstan Filters, Embassy and Gold Flake. Its capacity is around
20 billion sticks per annum and is running partially like Jhelum Factory and partially in
double shifts 6 days a week.
Now from 57 years, Pakistan Tobacco Company is involved in every aspect off cigarette
production from tobacco cultivation to packaging. They have been instrumental in the
development and progress of the agriculture and industrial sectors in the country.

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 Personal Review of Both Factories:

Today Pakistan Tobacco Company is the largest revenue generator in the country,
paying more taxes than the entire textile sector, which is the largest industrial sector in
Pakistan. Pakistan Tobacco Company pays approx. 65% taxes on their revenue. In 2004
alone, PTC paid the government close to Rs.16 Billion in excise and sales taxes. This
amounts to over Rs. 50 million per working day. Over one million people are
economically dependent on the industry in Pakistan.

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Board of Directors

Mr. Aslam Khaliq

Chairman and Non-Executive Director

Mr. Toh Ah Wah

Managing Director and CEO

Mr. Mubasher Raza

Deputy Managing Director and Finance Director

Mr. Fazal Ghaffoor

Marketing Director

Mr. Mirza Rehan Baig

Marketing Director

Mr. Ahmad Zeb

Supply Chain Director

Mr. Faroze Ahmad

IT Director

Lt. Gen. Ali Kuli Khan Khattak

Non-Executive Director

Mr. Brandan James Brady

Non-Executive Director

Mr. Fatehali Walimuhammad Vellani

Non-Executive Director

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Mr. Istaqbal Mehdi
Non-Executive Director

Mr. Kunwar Idrees

Non-Executive Director

Mr. Mueen Afzal

Non-Executive Director

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-10-
Product of the company

The main product of the company is cigarette

Main Brands of the company

1. BENSON & HEDGES

In 1873, Richard Benson & William Hedges started a partnership in London. From the
very start, the idea was to make Benson & Hedges a style statement, which is why the
business started from London’s fashionable West End.

PTC launched Benson & Hedges in Pakistan in March 2003. Made with the finest hand
picked golden Virginia tobacco from across three continents, the brand is packed with
perfection to seal its freshness.

2. JOHN PLAYER GOLD LEAF

The story of John Player Gold Leaf has to start from the story of its founder, John Player.
An enterprising businessman, John Player started a small tobacco selling business in
1877 and turned it into a thriving cigarette company, John Player and Sons.

With a distinct lifebuoy and sailor trademark, John Player Gold Leaf has an identity
entrenched in sailing and maritime adventure. Thus staying true to John Player’s very
first big brand - Player’s Gold Leaf Navy Cut cigarettes.

3. Dunhill
Dunhill is imported from other countries.

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Other brands of the company

1. Capstan

Capstan has a rich heritage, originating in Britain in the 19th century. The brand
was created under the auspices of W.D. & H.O. WILLS at Bristol and London.

2. Gold Flake
Gold Flake, like many of our brands, also boasts its origins at W.D. & H.O.
WILLS where it was a premium brand around the end of the 19th century.
Launched in 1982, in a 'soft cup' packaging, the brand took off when it was repositioned
in the value for money segment and later a 'hinge lid' variant was introduced in 2000.

3. WILLS
WILLS takes its name from the heritage of one of the original Imperial
Tobacco Company families: the Wills Brothers of London.

4. Embassy
Embassy, the third leading volume brand in Pakistan, is most popular in the
Punjab where it enjoys a leading position due to its equity and loyalty

5. Pall mall

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 Cigarettes Manufacturing
Procedure

GLT (Green Leaf Threshing) office process the different variety of tobacco for example
VFC, WP, and Burley. This office is situated in Akora Khattak. Leaf department receive
these varieties of tobacco in different grades. This department issues the tobacco for
operation according to recipe which is given by the PMD. Before the operation LLR
reweights of the grades which are issued for operation. Stems of tobacco are also used in
operation. Five cases of tobacco is used in one operation. PMD (Primary Manufacturing
Department) operates on these grades this department ready the tobacco of different
bands for SMD. PMD issues the tobacco and MMD issues wrapping material to SMD.
SMD (Secondary Manufacturing Department) receive tobacco and wrapping material and
operate it and ready for finish good. This department is also manufacturing the filter rod
this filter rod is used in manufacturing cigarettes.

Department which are supporting the manufacturing cigarettes:

1. GLT
2. Leaf Department
3. PMD
4. SMD
5. SCD
6. Finance Department
The material which are used for manufacturing cigarettes:
1. Tobacco
2. Stems
3. Filter Rods
4. Tipping paper
5. cigarettes Paper

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 Competitors of Pakistan Tobacco
Company

There are also competitors of Pakistan Tobacco Company which are given as follows:
1. Philip Morris Tobacco Company
2. Lakson Tobacco Company
3. Mardan wallas Tobacco Company
4. Counterfeit Brands

Lakson Tobacco Company:

Lakson Tobacco is competing Pakistan Tobacco Company. This is major competitor of
Pakistan Tobacco. This company is manufacturing following brands:
• Marvin Gold
• K.2
• Diplomat
• Red & White

Mrdan Walla Tobacco Company:

Mrdan Wallas are the small brands manufactures. These are tax evaded manufactures.

Counterfeit:
This group manufacturing bogus brands. It means that this group copies an other
company’s brands. This group sells their products in village in low prices.

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-15-
 Departments of Pakistan Tobacco
Company
Different departments of Pakistan Tobacco Company is as follows

 Finance Department
 Human Resource Department
 Supply Chain Department
• Leaf Department
• Reclaiming Department
• Shipping Department
 Primary Manufacturing Department
 Secondary Manufacturing Department
 Quality Control Department
 Sale Department
 Engineering Department
 Security Department
 Training Department

 Information Technology

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Managers of the department

DEPARTMENTS MANAGERS

Factory Manager Mr. Ilyas Butt

Finance Manager Mr. Faisal Saif

HR Manager Mr. Jamshaid

Mr. Atique
SCD Manager
Aslam

Mr. Kamran
PMD Manager
Butt

SMD Manager Mr. Ibrahim

Quality Assurance
Manager Mr. Manzer Ijaz

Engineering Mr. Amir Taimoor

Security Mr. Maj. Zaheer

Training Center Mr. Naveed Butt

IT Manager Mr. Faizan

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HRM Department

Different activities are performed by the HR managers in organization like Acquiring,

Training, Appraising, Compensating, employees and attending to their relations, health
and safety and fairness concerns. HR department’s strategies, policies, and activities must

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makes senses in terms of the company corporate and comparative strategies and they
must sport those strategies.

Importance of Human Resource Management

Human resources are critical for effective organizational functions HRM was once
relegated to second-class status in many organization, but its importance has growth
dramatically in the last to decades its importance stems form increase legal complexities,
the recognition that human resource are valuable means for improving productivity and
the awareness today of the costs associated with poor human resource management.

What is Human Resources

Management

The set of organizational activity directed at attracting, developing and maintaining of

effective workforce.

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ATTRACTING

Human resource is an important part of HRM functions; Human resource involves the
activities of planning start with job analysis than focuses on forecasting the future needs
for employees. Recruitment and selection are processes by which job applicant are
attracted, assessed and hired.

DEVELOPING

Mean the training of the employees as they are to grow and develop in their jobs.
Training refers to the teaching operational and technical; employees how to do job for
which they work hired. A development refers to teaching managers and professional the
skills needed hired both present and future job.

MAINTAINING

Human resources are also important. After organization have attracted and developed
and affective workforce, they must also make every effort to maintain that workforce. To
do so requires effective compensations and benefits as well as carries planning.
Compensation rates must be fair. Proper design incentives or merit pay system can
encourage high performance and good benefits can help attract and retain employees.

Hierarchy of HR Department

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 FactoryManager
Factory Manager
Mr.Ilyas
Mr. IlyasButt
Butt

HRManager
HR Manager IRManager
IR Manager AssistantManager
Assistant Managerof
ofHR
HR
Mr.Jamshaid
Mr. Jamshaid Mr.Ahmad
Mr. Ahmad Mss.Sadia
Mss. SadiaRahman
Rahman

Supporting Staff

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Job analysis

It is the systematic collection and recording of information concerning the purpose of job,
its major duties, and the condition under which it is performed and the knowledge, skills
and abilities needed for performing the job effectively. In the reference of the Pakistan
Tobacco Company the job are permanent basis.

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Job Description:
It is the statement of duties, working conditions and other significant
requirements associated with a particular job. In the reference of PTC duties and working
conditions depends upon job type.

Example:

The company offers attractive salary & fringe benefits in a dynamic and
challenging work environment with tremendous opportunities for personal learning
growth and development.

Job Specification:
It is the statements of skills abilities, education and previous work experience
that are required and minimum qualification is metric for other employees.

Example:

“To strengthen our team we are seeking competent, result oriented, carrier
motivated young and energetic individuals for following posts”

Assistant Manager- Human Resource Department

Qualification: MBA
Experience: 5-year relevant experience

USES OF JOB ANALYSIS

INFORMAITION

Human resource manger uses job analysis information for:

• Training and orientation of the new employees

• The performance appraisal of employees
• Recruiting and selection decision

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Job analysis information contains what are the duties and skills one person requires
performing his job. The job analysis information is used in selection of new employees.
So that right person could be placed so they can avoid of hiring of wrong people for he
job. After the hiring they rain and give orientation to their employees so they become
familiar with their work. After the training employees so they become familiar with their
work, after the training program the performance appraisal program starts. They provide
career development plans, which include career counseling, job rotation and some
training programs.

Process of Job Analysis in Pakistan

Tobacco Company

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In job analysis they interview the employees and find out the main duties and
responsibilities of the job and they also analyze he standards of the job performance.
They also analyze that what kind of person should be hire for a particular job.

After the job description is completed then HRD get this job description approved by Hay
Consultants.

Hay Consultants:
Hay Consultants are the outsiders who verify the job description for particular job
position according to International standards.

Review of Job description:

Human resource department of PTC review the job description of each job after every 5
years.

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Recruitment in PTC

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When a vacancy arises in a particular department then the head of that department
concern with the HR department of PTC. The manager of the human resource department
now selects the relevant information about the job. The job is if for the higher
management the human resource manager concerns all the relevant discussion with the
Directors of the company. After the approval of the director now human resource
managers go for searching the required person for the respective job. The main purpose
of the Human Resource Department is that hiring a right person for the right position.
This process of hiring is very difficult because if a company takes a wrong decision about
the hiring of the person for the job in the PTC may company bears the all of the loss.
Recruitment its self is a very costly process but every company must go thorough for it
because the main purpose is to find a right person for the right job.

Now for the purpose of searching the best candidates for the respective positions the
Human Resource Department goes for these steps to finding out the best person for the
job.

The process of finding new employees is only made by the Advertisement. The HRD
advertises the job through different channels. These channels are

1. Newspaper
2. Reference
3. Internal Resources
4. Bride Spire
5. Campus Activity

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 1. NEWSPAPER:

The one of the best method for searching a required person is

advertised the job through different newspaper. Newspaper is only one channel which
is mostly used by the people. These newspapers named as “JUNG” and “DAWN” is
widely used for this purpose. The Human Resource Department finds the different
C.V of the person through this channel. After getting the C.Vs of the persons the HR
department goes for different process to finding out the best one for the job.

2. REFERENCES:

The references are effective way to find out the required person for the
job. The references of the internal person help the Human Resource Department in
searching the required person. From the references the Human Resource Department get
the Resumes of the person. After this the Human Resource Department go for the
different process for selecting the best candidates for the job. The department now uses
the manual procedure and through recruitment soft wares.

3. INTERNAL RESOURCES

The PTC are referred the internal resources for the required fulfillment of
the job. The internal resources are the best persons for every company. The selective
promotional schedule helps the PTC sometime to get the right person. Sometime there is
a need of promotions for some employees within the PTC then the HR department
concerns with the Line manger of the respective person. The line manager and HR
manager now find the best person who will get the promotion and fulfill the required job.
After the promotions now there is a need of some more persons for the positions of those
person who are get promoted.

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 4. BRIDE SPIRE:

Bride spire is a software which is used for sorting of applications received online.
Pakistan Tobacco Company has got this software develop by a well known software
company “HEAD HUNTERS”

5. CAMPUS ACTIVITIES:

This Campus Activity is starting from February to May. In this period of time the PTC
holds an activity named as “Campus Activity”. The main purpose of this activity is to
finding out the different candidates for the job from different universities like LUMS and
IBA. In these universities the company arranges a lecture in which they tell the student
about their company. In this activity the members of the PTC are get involve in branding
of there different products. Due to this the company introduces the products in making
this opportunity that the students would be interested in doing job in Pakistan Tobacco
Company. Because at the same time many companies also came there to introduce them
selves.

This activity involves the visiting of the different universities for the purpose of:

• Overview of the PTC

• Vision
• Mission of the Company

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 I. Overview:
The main purpose of the company in this activity is to introduce the overview of
the PTC among all of the students, to tell them about the company history, board of
Directors etc. This overview is only for the making of the student minds about the
company.

II. Vision:
In this section the team of the PTC tells the Vision of the company

III. Mission of the company:

After this, the team of the Pakistan Tobacco Company tells the main Mission
statement of the company to enhancing the vision of the company.

The purpose of this campus activity is to make aware different students about the
company vision, mission and overall view of the company.
At the end of this activity the different students submit there resumes to the team of the
Pakistan Tobacco Company. In this manner the members of the company get all the
information about the different students who are interested in doing a job in Pakistan
Tobacco Company.

Selection Process in PTC

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After receiving a number of CV’s it is very difficult to select a right person for a job. In
Pakistan Tobacco Company the process of selecting the candidates is very lengthy. There
is a specific criterion for evaluating the non perfect CV’s set by the company and there is
software that evaluates non perfect CV’s.

Prescreening Interview:
The sorted candidates are invited at Royal Palm Country Club at Lahore where their
Prescreening interview is conducted. This interview is in the form of Panel and there is 2
or 3 person in the panel.

Management Assessment Center:

The candidate which passed the prescreening interview thy invited in Islamabad in
Management assessment center in which the organization divide the candidates in the
form of groups and the HR manager check the leadership quality and decision making
power and speaking power of the candidates. HR manager give them a case to the
candidates from which the HR manager looks that how the candidate participate in the
case study and how he deliver the presentation.

AA4 Test:
This is a form of functional test which is conducted by HR department to know much
knowledge candidate has about the job.

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Final Interview:
The candidate which pass from the MAC they are invited for final interview. This
interview is one-on-one it means that only one person conduct the interview. This
interview is conducted by director. The candidate who passes this interview he will
select.

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Orientation

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Orientation is the process through which the new employees are introduced to the
company. Through this the new employees get acquainted with the company’s culture. It
is by this process of orientation that the employees find out the company’s culture, the
rule and regulations and other important things in the company. The orientation programs
are effective ways of helping the new employee in their socialization process.

Objectives of Company
Orientation

• To Reduce Startup-Costs Proper orientation can help the employee get “up-to speed” much
more quickly, thereby reducing the costs associated with learning the job such as mistakes and
downtime caused by uncertainty, confusion and a lack of information.

• To Reduce Anxiety an employee, when put into a strange, new situation, will experience
anxiety that can impede their ability to learn the job. Proper orientation helps to reduce anxiety
that results from entering into an unknown situation and helps provide guidelines for behavior
and conduct, so the employee doesn’t have to experience the stress of guessing. Additionally,
supervisors spend far less time correcting undesired activities and actions.

• To Reduce Employee Turnover Employee turnover increases as employees feel they are not
valued or are put into positions where they can’t possibly do their jobs because they don’t know
what is expected of them. Orientation shows that the organization values the employee by giving
them the tools and information that will help them to succeed on the job.

• To Save Time Simply put, the better the initial orientation, the less production time supervisors
and co-workers will have to spend “showing”, “telling”, and answering questions.

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• To Develop Realistic Job Expectations, Positive Attitudes and Job Satisfaction
It is important that employees learn early what’s expected of them, what to expect from others, as
well as learning about the values and philosophies of the organization. While people can and do
learn from experience, many unnecessary, costly, and often dangerous mistakes can be avoided
with a thorough orientation.
There are two parts of orientation that are

Two Phases of
Orientation
It is recommended that a complete orientation be done in two sections or phases, an overview
phase and the job-specific phase.

1. Overview Phase
The overview phase deals with the basic informational employee will need to understand the
broader organization of the company. The human resources department or administrative staff
often conducts this phase since much of the content is general.

It is also recommended that the site manager be introduced to the new hires at this time to
establish good relations between the hourly employees and top management right from the start.
You may wish to have that “top manger” conduct part of the orientation such as telling about
company history and philosopher give the new hires an introductory tour of the facility. If your
company is a large, multi-site organization, a pre-recorded greeting or welcome by the company’s
president/CEO is a good way to start.

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During the overview phase the following general areas should be covered:

• General company information; history, philosophy, market niche, departments and branches.
• Important policies and general (non-workstation specific) procedures.
• Information about compensation and benefits.
• Safety and accident prevention issues.
• Employee rights and responsibilities.
• Overall discussion and tour of physical facilities.

During this phase, it is a good idea to have employees follow along in the employee handbook so
they know where important polices and procedures are found and can refer to them again. The
overview phase does not have to be a recital of every section of the employee handbook. Instead,
the most important issues should be addressed and summarized. Your company’s employee
handbook should have
Included an “Acknowledgement of Receipt and Understanding” that should be removed, signed,
and returned to management by the new employee upon completion of the orientation processes.
This acknowledgment is usually general in nature and therefore your company attorney may
recommend that you have individual signed statements of
Understanding for the most critical policies and procedures such as handling of hazardous
materials, sexual harassment, disclosure of trade secrets, etc. All signed Acknowledgement of
Receipt and Understanding statements should be stored in the
Employee’s personnel file.

2. Job-Specific Phase
The immediate supervisor and/or manager best conducts the job-specific phase of the orientation
process because much of the content will be specific to the individual and their workstation and
surrounding area. At this time, the new employee is made aware of the production cycle, quality
control, and how his/her role fits into the completion of the final product or goal. It should be

Specifically demonstrated how the employee’s actions directly affect subsequent steps in the

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manufacturing process. During the job-specific phase of the orientation process, the following
areas should be covered:

• Function of the organization and how the employee fits in

• Specific job responsibilities, expectations and duties
• Layout of the work area
• Job specific policies, procedures, rules and regulations (including all safety
measures)
• Introduction to co-workers and key people in organization
This phase can be considered to encompass the first few days on the job in which the employee is
not yet expected to be 100% proficient and works closely with supervisors and/or co-workers
who supply additional information, tips and instruction as the employee is brought “up-to-speed.

Orientation in Pakistan Tobacco

Company

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When the Pakistan Tobacco Company hair an employee, initially they put him at ease
after this the company sends him to head office (Islamabad) where he introduced by
Board of Directors and give them an orientation after this they send to NWFP where they
understand the manufacturing process of the cigarette.

In Pakistan Tobacco Company the process of orientation is not just a lecture it is a very
long process. Silent feature of their orientation is as follows:

Characteristics of Pakistan Tobacco Company’s orientation program

 Orientation at Pakistan Tobacco Company is a three to four day program.

 The employees are given a detailed interactive lecture on the over all structure of
the organization.
 At the end of the orientation program the new workers are then introduce to each
of the department heads who then brief each employee about the functions of
his/her department.
 This process gives the employee a good over view of the organization.
 The importing thing in this orientation is that the company tells the employee the
whole procedure of making of cigarette.
 Once the employee has a good overview of the organization they are better able to
identify their work with the organization’s overall work and strategies.

PROCESS OF TRAINING

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Training is defined as “the process of teaching new employees the basic skills they need
to perform their jobs”. Training is the hallmark of good management, and task managers
ignore at their peril. Having high potential employees doesn’t guarantee they’ll succeed.
Instead, they must know what you want them to do and how you want them to do it. If
they don’t they’ll do the jobs their way, not yours or they will improvise, or worse, do
nothing productivity at all. Good training is vital.

Analyzing Training Needs:

How you analyze training goods depends on whether you’re training new or current
employees. The main task in analyzing new employees’ training needs it to determine
what the job entails and to break it down into subtasks, each of which you then teach to
the new employee. Analyzing current employee training is much can be more complex,
since you have the added the task of deciding whether training is the best solution.
Pakistan Tobacco Company also doing the same thing they are involves the same
activities of training for the employees to make the performance much better. Pakistan
Tobacco Company has their own resources to train its employees the training process
which are used in the Pakistan Tobacco Company.
After the process of the Orientation the employees now are doing there are respective
jobs on their positions.

On the job training is the best method which are used by the HR persons to motivate the
employee about the job and to get the best performance in the future. During the job the
employee are really get involve with the activities of the job so that the purpose of the on
the job training is that to make learn all the employee through their best work activities
For this purpose the HR managers of the Pakistan Tobacco Company concern with the
heads of the departments. Now they make them aware the entire supervisor by how they

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Get training the new employees about their respective job. The best method which is used
in the Pakistan Tobacco Company is as following

Couching:
The couching is done by the supervisors of the department because the supervisor of the
department knows the all the basic knowledge of the job so that the HR managers assist
the supervisor and make them aware about the criteria through which couching has been
done by the supervisors. The main duty of the supervisor in couching is to produce
maximum level of output through the employees’ best performances. In this manner they
check the all the factors of the persons, the factor are the employee’s personal mentally
factors that how they perceive about the job.
The factors like:

1. Motivational factor
2. Leadership quality
3. Skills of the job
4. Knowledge of the Job
5. Developing the skills etc.

These are the person own thinking how to motivate and get the best way to produce the
maximum output level. The new employee some time don’t know how to perform the job
in the best way, they may know the knowledge of the job and they make all the best
efforts of theirs to make maximum output of work. This couching is day by day activity
by the line manager until the employees get the all the significant knowledge of the job’s
performance. The line manager notes the all the activities of the employees and make
them aware when needed. After this couching the line manager if he’ll succeed to

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Enhance the motivational factor, skills, knowledge of the job, intelligence, leadership
qualities etc. the line manager who is the supervisor of the department now slightly come
back to the employee and now he just look after the employee when there is some need.

Technical Training:

The Product units of Pakistan Tobacco Company is contained many productive units so
where different employees do technical jobs on the different machines. The use of the
proper machines may increase the productivity of the company. Pakistan Tobacco
Company is cigarette making firm so that the production plant of leafs where are leafs of
tobacco gone through different process by the employees. The technical training is more
important for all the employees. Pakistan Tobacco Company has 52 different persons for
only the purpose of training of the employees. The trainers are also highly qualified so
that they training are done by the trainer at on the job some time may be some time at off
job training.
For this purpose of training there are two types of training procedure named as:
1. WADDA
2. ROSHAN

WADDA:
This technique of training is involves the activities through out the year. The trainer set
the different types of training activities in whole the year in day by day activity. The
training is divided into the different section which are held monthly whole the year. The
WADDA program is basically the “commitment of the employee of his work”. The
WADDA program is not only the training program which concern with all the technical
training as well as the it is the also the training of the employee it self. The main purpose
of WADDA is to make loyal the employees with the company as well as with the all the
others members.

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Class Room Training:
This session of training includes the lecture of those topics which are related to the job
activities. This is a daily activity in which minimum 12 employees are taught by the
trainer. This training program is only in the form of the lecture and the employees only
get the information of the different things but they here they don't implement in the class.
After this types of lecture the employee get know many important things about the
different machines so that after this they go to their respective unit of production and
there they implement their different techniques that they have already learnt.

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-43-
Compensating managements

Compensation is a systematic approach to providing monetary value to employees in

exchange for work performed. Compensation may achieve several purposes assisting in
recruitment, job performance, and job satisfaction.

Compensating management’s objective is to ensure internal equity i.e. the jobs with more
responsibility be paid more. Similarly there should be external equity, i.e. the jobs should
at least pay what they are worth outside the organization. Pakistan Tobacco Company
agrees that compensation should be high enough to attract good applicants and also be at
least enough so as to retain the good employees the firm has.

If the compensation packager is not competitive, then the first one to leave the
organization usually internal and external equity among the workers. The HR department
believes in having competitive starting salaries to some extent. Also if the organization
usually pays the same to all starting salaries i.e. those having the same level schooling.
This strategies may vary with how badly company need of the applicant. Also if the
applicant has some extra skills or he has some more experience as compared to the other
fresh graduates, he may also be compensated for the extra skills and education as well as
the experience that he brings to the company.

Another reason for which a new candidate may be paid significantly higher than other
candidates could be that his particular profession may be highly demanded in the market.
Also the candidate may bring some particular experience which he knows is highly
needed by the organization. Therefore is such a case the company may will to pay him
more.

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 Compensation Management in Pakistan Tobacco
Company

There are many factors for which the compensation is used. Pakistan Tobacco Company
provides to its loyal employee.
Pakistan Tobacco Company is using different kinds of factors like salary, rent of
residence facility etc.

1. Salary:
The salary increment is also is the part of the compensation in the Pakistan Tobacco
Company. This salary increment increases in view of the performance of the employees;
the better is the performance of the employee more chances in increment of the salary.
There are 10 grades in this firm for management ranking. These ranks are referred 30 –
40 grades system. The upper level management is in the grading of above 34, the grading
30 – 34 is for the low ranked employees. The salary package in Pakistan Tobacco
Company of the employees is like as the salary package of top 25 companies in Pakistan.

2. Rent of Residence facility:

Pakistan Tobacco Company provides the facility of rent compensating to its employees.
The company provides this facility to their management and high level employees.

3. Health and Safety measure:

The environment of the Pakistan Tobacco Company is full of risk because the plants of
leaf and other units may cause of some accident in the firm. So for this purpose there are
many safety items for preventing from a large damage in the firm. The totally loaded
machines with their safety kits are highly available in the firm. There are two many
emergency fire kits are hanging on the walls of the Pakistan Tobacco Company. This all
safety measure are so important for the safety of the all the employees.

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4. Medical Care:
When an employee does his work all the day on a machine so due to using of the machine
there may be produce some kinds of diseases. The plants of production on which the
employees do their doing are so much noisy so that the it is in the policy of the Pakistan
Tobacco Company to conduct an annual or monthly check up for all the employees. In
this test the two major tests are so important:
• Eyes Testing
This test includes all the different activities which are for the eye check up.
The well experience doctors conduct these tests. In this test they focus on the eye
exercise of the employee which he does on the duty. If there are some kind of serious
case the firm refers the person to the Hospital.
• Hearing Tests
These tests include all the tests which are for the purpose of knowing the
hearing ability of the employee. For this purpose the doctors use different machines
which are highly advance machines. The environment of the production plant is too
noisy so that these tests are conducting monthly for checking the ability of hearing of
the employee.
• Physical Tests
These tests are for the checking the physical condition of the employee. The
employees of the company are involved in doing physical activities. So in this manner
there must be some physical damage of the help may occur with the passing of time. The
doctors aware the employee how to make physical work and advise them for daily
exercise.

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5. Transportation:
Pakistan Tobacco Company provides the transportation facility to all of his
loyal employees. This facility is for those employees who live in the faraway places or in
villages they have a large number of employees and Pakistan Tobacco Company is loyal
with them and give them incentives to the drivers.
6. Leave Criteria:
The leave criteria for the employee for the year are pretty defined by the
Pakistan Tobacco Company. The employees of Pakistan Tobacco Company are allowed
to make leaves only 28 for the year. This policy provides the employee comfort and
reliability. In the case of any emergency there is allowed some emergency leaves.

7. Insurance
The insurance for the employee of the Pakistan Tobacco Company is well
defined. In the case of any uncertainty the Pakistan Tobacco Company pays some kinds
of fund in the form of insurance. The firm is registered and having the well defined
numbers of the employees in the Pakistan Tobacco Company so that’s why the company
is insured.

8. Transfer
The transfer of any employee to the other unit which is in AKORA is not
mostly observed. The recruitment is done for both units and so there is not a specific
need of transfer an employee to the other unit. But for the purpose of the training the
employees. The employees often use to go to the AKORA unit for their training and
some of the others employee visit the Jhelum factory.

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Performance Appraisal

Ranking
This method is one of the simplest to administer. Jobs are compared to each other based
on the overall worth of the job to the organization. The 'worth' of a job is usually based
on judgments of skill, effort (physical and mental), responsibility (supervisory and fiscal),
and working conditions. After ranking, the jobs should be grouped to determine the
appropriate salary levels.

Classification
Jobs are classified into an existing grade/category structure or hierarchy. Each level in
the grade/category structure has a description and associated job titles. Each job is
assigned to the grade/category providing the closest match to the job. The classification
of a position is decided by comparing the whole job with the appropriate job grading
standard. To ensure equity in job grading and wage rates, a common set of job grading
standards and instructions are used. Because of differences in duties, skills and
knowledge, and other aspects of trades and labor jobs, job grading standards are
developed mainly along occupational lines.

Factor Comparison
A set of compensable factors are identified as determining the worth of jobs. Typically
the number of compensable factors is small (4 or 5). Examples of compensable factors
are:

1. Skill
2. Responsibilities
3. Effort
4. Working Conditions

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These factors can then be further defined:

1. Skill

• Experience
• Education
• Ability

2. Responsibilities

• Job duties
• Supervisory

3. Effort

• Mental
• Physical

4. Working Conditions

• Location of the job

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