Kohinoor Textile

Mills Limited
Functional Analysis of Human Resource Department

Study developed by BBA students, University of Wah, Wah Cantt

February 2011

Kohinoor Textile Mills Ltd

Textile is one of the oldest industries of the world and Saigols are among the pioneers of this industry in Pakistan. KOHINOOR TEXTILE MILLS LTD is ranked as one of the best composite textile units in Pakistan having a finishing capacity of 4 Million Meters in form of Bleached, Dyed & Printed Fabric. All the products are being exported in shape of Bleached, Dyed & Printed Piece Goods and Home Textile Products including Bed Linen (Duvet Covers, Bed Sheets, Fitted Sheets, Valance Sheets, Bed Skirts, Comforters, Bed Spreads, Pillow Covers, Pillow Shams), Furnishing Items (Ready Made Curtains, Pelmets, Drapery Sets, Tie Backs, Cushion Covers) and Table Linen (Table Covers, Napkins, Seat Pads, Table Mats). Kohinoor Textile Mills Limited (KTML) is a customer driven company that believes in continuous improvement in its products & Services. It provides all the times to customers a growing range of products to meet their changing needs. Their trend-setting products include Fabrics as well as home fashion products. KTML focus on specialty, value-added products that stand out in a crowded marketplace.

History
The Kohinoor Maple Leaf Group (KMLG) was formed by the Saigol family. Founded in the early 1950s in Pakistan, KMLG is a reputable and leading

manufacturer of textiles and cement. The Group currently comprises of Kohinoor Textile Mills Limited (KTML) and Maple Leaf Cement Factory Limited (MLCF) with KTML being the holding company of MLCF.KTML was established in 1953, initially with 25,000 spindles and 600 looms with further expansion in 1954.

List of companies under the Saigol Group

Kohinoor Textile Mills. Pak Elektron Ltd. (PEL). Kohinoor Power Company. Faisalabad Grammar School (FGS). Kohinoor Energy Saigol Computers (Private) Limited Kohinoor Motor Works Limited Saigol Motors Sajeel Sehgal ltd Shoaib steel ltd Wahab Sehgal ltd

Introduction
The Kohinoor Maple Leaf Group was born from the trifurcation of the Saigol group of companies and is a reputable and leading manufacturer of textiles and cement. KTMG comprises of Kohinoor Textile Mills limited (KTML) and Maple Leaf Cement factory limited (MLCF). Both companies are incorporated in Pakistan and are listed on three stock exchanges of the country. Today, K.M.L is considered to be at par with multinationals operating locally in terms of its quality products and management skills. KTML was established in 1953 and is one of the oldest companies of Pakistan with over 50 years experience in textile

manufacturing. The KTML is located at Peshawar road, Rawalpindi over an aria of 997966.37sft including a residential colony (280,067sft) and colony clubs, schools (43288 KTML sq ft) at the mill side KTML started its working with 25,000 spindles and 600 looms with further expansion in 1954. However, after decades of aggressive expansion and modernization KTML has emerged into a fully vertically integrated home textiles company with state of the art capabilities for spinning, weaving, dyeing, printing and stitching. The company has a diverse customer base with sales in both the local and export markets. The main international markets include Asia, Europe, USA and Australia. The high quality of management in the company has resulted in achieving many international certifications, such as ISO 9001, 2000, OKEO TEX 100, WRAP and various certifications from leading retailers of the world including Wal-Mart, Sears, JC Penny, Macy's and Marks and Spencer. KTML is one of the most compliant to international standards textile companies in Pakistan. Company is presently headed by following persons: Chairman: Tariq Saeed Saigol MD: Mr. Waleed Saigol.

Vision Statement
The Kohinoor Textile Mills Limited Stated Vision Is To Achieve And Then Remain As The Most Progressive And Profitable Company In Pakistan In Terms Of Industry Standards And Stakeholders Interest.

Corporate mission
Mission Statement:
The Company Shall Achieve Its Mission Through A Continuous Process Of Having Sourced, Developed, Implemented And Managed The Best Leading Edge Technology, Industry Best Practice, Human Resource And Innovative Products And Services And Sold These To Its Customers, Suppliers And Stakeholders. Put the customer first always. Be flexible to the customers needs. Adhere to the highest quality standards. Think innovatively but make informed business decisions. Deliver results.

Values
"Honesty, integrity, and hard work." The companys success, as well as the success of individual employees, can be traced to embracing and practicing these values. Flowing from the values of honesty, integrity, and hard work are a set of principles that we believe in and use to govern our behavior as Kohinoor Industries employees.

Certification:

Human Resource Department

All organizations have people -- they have human resources. Regardless of the size of an organization or the extent of its resources, the organization survives -and thrives -- because of the capabilities and performance of its people. The activities to maximize those capabilities and that performance are necessary regardless of whether the organization refers to them as Human Resource Management. The Human Resource Department (HRD) is the key strength of any organization in motivating employees, managing HRIS, dealing external affairs, handling with each departments performance, making promotions etc. HR department of KTML is well established and working on the legal and ethical principles. Kohinoor believe that their people are the most valuable asset. They view human resources as a competitive advantage and therefore ensure that only motivated and professionally qualified people are employed here. KTML also ensure that business goals are realized through people whilst meeting their own personal aspirations. KTML is an equal opportunity employer with policies to ensure there is no discrimination on the basis of cast, creed, sex and religion.

Hierarchy of HRD at KTML

General Manager

Manager HR

Dy. Manager

Assistant Manager

Assistant Manager

Assistant Manager

Labor Officer

Human Resource Officer

Human Resource Officer

Human Resource Officer

General Manager is the top most position of the HR department of Kohinoor Textile Mills Ltd. (KTML) Rawalpindi. Succession positions are Manger HR, and then Deputy Manager HR following by three assistant mangers and a Labor officer. Labor Officer who is responsible to deal with Government/cantonment, labor union or any kind of legislation regarding KTM. There are almost 25 personnel in the HR department and the single Human Resource officer (HRO) is responsible to deal with 1000 employees

Functions of HRD
As the whole business of KTML Rawalpindi is based on export so they fulfill all the legal requirements of local as well as International Laws and perform following functions of HRM.

Human Recourse Planning

The first function of Human resource is planning. Without appropriate plan it is impossible to move a single step. The key aspect of HR planning is to determine and forecast the HR needs. KTML forecasts the need of Human recourses to perform the desired functions and moreover it maintains the human resource inventory or we can say that they maintain the standby employees in case of extra production in future. They plan for succession paths and also mould the paths for employee development. At KTML human resource department plans and forecasts for at least 6 months framework ahead in future.

Job Analysis
Job Analysis is a process to identify and determine the detail of particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about the data collected on a job. KTML has its own job analysis method according to that it analyze the jobs according to the tasks, responsibilities and duties of the job along with what type of qualities, knowledge, skills and abilities are require to fulfill the job. By conducting job analysis benefit is that company able to find the right person for the right job. It is important when the company create a new job or job change. By the effective job analysis KTML is able to clearly describe the job, state the job

specifications and most of all it helps to evaluate the job that what is the worth of particular job to organization.

Recruitment
Successful employment planning is design to identify the need of HR in the organization. Once these needs are known an organization try to meet them. Recruiting is a process of discovering potential candidates for actual, anticipated organization calamities or for another perspective, it is linking activates that brings together those with jobs to fill and those seeking jobs. The KTML perform the recruitment process in such a way that it encourage the qualified people and discourage the nonqualified people. Basically it utilizes both sources of the employment i.e. internal and external. It prefers the internal sources but if the particular person is not available internally than it look for external sources.

Internal sources
The internal sources of the employment in KTML is their highly established Human Resource Information System (HRIS) in which it provide the details about the replacement chart, in which the details are provided about the vacant jobs and details about the most suitable persons available for posts in succession. The second internal source is employees referrals.

External sources
If the relevant persons are not available inside the organization than KTML seeks for the external sources of employment. The organizations external sources are following:

 Advertisement Online CV Database Regular Employment

Advertisement
Whenever the position is vacant in the organization they advertise the vacancy through the print media and also uses the Internet (hiring websites e.g. rozee.com etc). Blind Box ads This is an external source of the employment for the Organization in which it uses the Blind Box ads, there are many reasons behind that they advertise the vacant job by the Blind Box ads, the main reason is that the people who want to apply for managers level job in KTML, they approach to higher level management and even to Owners of the Corporation for recommendations. The image of the organization is very well reputed, thats why the more people apply for the job even they are not applicable. Online CV Database The organization has its website where it collects the CVs and maintain the database or databank, and they can utilize when required. Regular Employment Above two sources are used for managerial level post and this source is use for the labor hiring. The organization allocates two days every week (Monday & Thursday) in which they recruit the labors.

Selection
Employee Selection is the process of putting right men on right job. It is a procedure of matching organizational requirements with the skills and qualifications of people. Effective selection means effective matching of person with job. By selecting best candidate for the required job, KTML gets quality performance of employees. Thats why the KTML faces less absenteeism and employee turnover problems. By selecting right candidate for the required job, organization also saves time and money. Proper screening of candidates takes place during selection procedure. All the potential candidates who apply for the given job are tested on following steps: 1. Completion of application form 2. Employment test 3. Comprehensive interview 4. Background Investigation (Conditional) 5. Conditional job offer 6. Medical/physical examination 7. Permanent Job Offer
Completion of application form

There are lot persons who applied for the required post and the short listed candidates are required to fill the form. Here company takes only the applicants name, address, telephone no. and other specific information about the applicants. For this purpose the company have specific application form that are given to short listed candidates and collected later.

Employment Test
The firm takes different test of short listed candidates that include both written and oral test. These tests measure intelligence aptitude, ability, perception skills, mechanical comprehension, work sampling (the applicants are required to perform some task of the job in the actual environment) and interest of the candidates.

Comprehensive interview
A selection tool that is used to obtain in-depth information about the

candidates. Applicants who pass the employment test are again short listed and called for the interview. The comprehensive interview is structured and sometimes situation

based. Where the applicant has to answer the questions of interview panel. And the interviewer assess ones motivation, value, stress management, decision-making, ability to work under pressure and ability to fit with the organization. The interview panel consists of General Manager HR, Health and safety manager and head of concerned department (marketing, production, finance etc). For the higher-level post the MD of KTM can be the part of the interview panel.

Background Investigation (Conditional)

The Process of verifying information and record that are provided by the candidates. Here KTML verify educational accomplishments, previous work performance, personal references and individuals legal status etc. The background investigation is not necessary for every kind of post. Here it is mostly done for managerial posts.

Conditional job offer

Individuals, who pass successfully in the preceding steps, are now consider eligible to receive the employment offer on conditional basis. The employees are crosschecked and observed for the period of three to six month called probation period. After the end of that period the supervisor provide the detail report and sent to HRD. The HR personnel take information about that employee with the help of HIRS and evaluate performance. The decision for permanent job is made on the basis of this performance report.

Medical/Physical examination
After conditional job offer the employee is examined medically and physically to ensure the fitness for the job. At worker level the medical examination is done through social security institute and for the managerial level the KTML has its own medical officer.

Permanent Job Offer

If the probation period and all preceding steps are passed than the employee is offered a permanent job. For the managerial level post, the supervisor of concerned department gives the performance evaluation report (with his personal suggestion) of the probation period to the HR Managers. The HR managers also get the evaluation from HRIS about the particular person. They analyze the performance and than the report sent to senior managers than the HR department take decision to offer permanent job. At this level the employee is enrolled on permanent basis and he is now liable for all the compensation and benefits including, residence, medical and insurance etc.

Socialization and Orienting

Socialization
Socialization is the process of adaption that takes place when an individual attempts to learn the values and norms of the organization. When selection process is completed, the new stage starts called socialization. There are three stages of

socialization:

pre

arrival

stage,

encounter stage and metamorphosis. KTML supports the employees to quickly adapt and pass these stages. The process completion helps to increase the productivity of employees and their commitment toward organization.

Orientation
Activities that introduce new employees to the organization and their work units. In the orientation the employees are given a formal presentation about objective, history, procedures, philosophy, roles and regulation of the organization. The conducting the orientation is the responsibility of the HRD. The employees are given handbook that states the policies of the organization and FAQs. At KTML the formal orientation is given by the head of department and if the whole batch is new coming than the president of the KTML. The role of HR is to perform coordination. In the orientation some following steps are taken. Welcome to employees. Provide a vision for the company. Introduce company culture -- what matters. Convey that the company cares about employees. Allay some new employee anxieties and help them to feel good about their job choice.

Training and development

The training is the changing knowledge, skill, behavior and abilities to develop desired changes on permanent basis in employees to perform a current job. It is

present oriented to enhance the skills of the employees to perform the job. It is especially given when the employees are new, change in technology, methods, or when the productivity is declining. The KTML adapt both training techniques off the job training and on the job training In On the job training the supervisor gives the instructions and train over the equipments and machineries. While at off job training, they conduct lectures, seminars and announce different courses. For the professional training, employees are sent to other cities as well as abroad. The development is future oriented and KTML uses the same techniques as used for training the employees along with the job rotation.

Performance Management system

Performance Management system is an evaluation of employees performance with respect to goals and objectives. KTML gives critical consideration to performance management or performance appraisal system. For performance evaluation the key method used, is essay appraisal method in which the supervisor prepares detail report about employees performance and sent to the HRD. Where they compiles the information given by the supervisor as well as from HRIS. HRIS plays very important role in evaluating the employees performance. As it contains real time up to date information such as working hours, absenteeism, punctuality, over time, and time period of job etc. There is thumb impression attendance system is installed exclusively in the organization, each and every employees when enters in the work place, or exist he must has to give thumb impression to the attendance system, which automatically updates the HRIS.

Compensation And Reward Management

Rewards are the incentives that are given to the employees to motivate them and obtain the desired goals. The reward system of the KTML is comprises of intrinsic

rewards, extrinsic rewards, financial, non-financial, performance based and membership based rewards. When the organization earns the high profit then the expected standard it distributes the part of profit in employee. They establish their pay structure according to the local laws as well as keeping view of international laws. When the performance of particular employee is good the organization gives both financial and non-financial rewards. The non-financial rewards include attractive title, promotion or administrative assistants and preferred parking space. Rewards are aligned with performance and these motivate the good performers as well as non-well performers so that they try to improve their performance and take the rewards. Job evaluation is the relative worth of each job in organization. On the basis of job evaluation companys compensations are managed. KTML has its own

customized compensation management program in order to create pay structures that attract, motivate and retain the captive employees. The compensation program fulfills the local government policies as well as international laws of compensation including least pay, work hours and other benefits etc. Below are some policies of KTM to compensate their employees.

HR Polices:
Health And Safety Policy Environmental policy Social Compliance Policy Labor union policy Whistle blowing policy Insurance policy Promotion policy Old age benefit policy Accommodation policy Recruitment policy

 T & D policy Noise Control Polices Tobacco Smoking Policy Security policy Leave policy Time policy Over time policy

Health and Safety Policy

For maintaining the health of employees KTM provides safe and secure working environment to its employees, so that they fully motivate and work at their potential productivity. All employees are enrolled with social security institute for medical facilities. There is a dispensary that facilitate to its employees and their families where qualified doctors provide their services 24 hours. Safety precautions are written on different Pillars in spinning, processing, and stitching and quality assurance department so that employees may be aware from safety and protection needs during their work. The fire extinguishers are installed in overall organization.

Environmental policy
KTML also take care of the environment in which it operates. It is ISO 9001 & 2000 certified for the environmental policies.

Social Compliance Policy

Labor union policy

As per the labor union policy, there is a registered Labor union at KTML that plays very productive role in the progress of the organization. The labor officer is responsible to deal with the union and other legal affairs.

Whistle blowing policy

KTML has also developed a whistle blowing policy that provide complaint boxes on the different sides of the organization and any employee can drop complains without mention his or her name and designation. Complains are weekly checked if the complain is genuine the organization surely take action against the complaint.

Insurance policy
KTML provides life insurance to all its employees. In case of any accident or causality in the working environment the employee get claim. Social security institute insures the employees (labors) having pay less than Rs. 10,000. While the insurance company EFU insures the employees (managers) having pay more than Rs. 10,000.

Promotion policy
The firm has its promotion policy that fulfills all ethical as well as legal requirements. And this policy purely follows merit.

Old age benefit policy

Company deducts 6% per month from the salary of all employees. The social security institute is responsible for this policy under the Employees Old Age Benefit Fund Act 1976. Pension Benefit: Provident fund lump sum amount is given to the employee at the time of retirement. And the pension is regular amount that is paid to employee after the retirement for the lifetime. And in the case of death the part of the pension is given to the employees family every month.

Accommodation & education policy

The KTM provides the residential facility along with subsidized electricity, gas. Fatalities differ according to grade of the emp-loyees The KTM also provide the education facility to the children of its employees. There is an up to middle and secondary school, where the qualified and hard working teachers mentor and enlightens the mind and the personality of the students.

Recruitment Policy Of Company

Company has designed the Recruitment Policy as follows: Age of worker should be 18 or more years at the time of recruitment. He should have C.N.I.C. Physical health should be proper as regarded to the nature of work.

This board is clearly seen at the front of the main entrance of the organization.

T & D policy
The KTM provide training and development opportunity to its employees on continues basis to compete with latest trend in technology and methodology.

Noise Control Polices

Noise Control Policy is specifically for production department, where huge machinery operates with considerable noise, so company provides noise control

equipment to overcome it. No smoking is allowed in the mill area as different signboards are attached in different mill area.

Tobacco Smoking Policy

Smoking is strictly not allowed inside the organization. Signboards are attached at many locations for prohibiting smoking. The organization has also allocated particular open-air spaces for smoking called smoking zones.

Security policy
Company provides complete security and safety to employees and their families. KTML designed different polices related to organizational security as well as colony security. The KTML installed walk through gates on entrance and many guards assure the security conditions. The KTML also installed CCTV cameras for monitor.

Leave policy
Casual Leave: An employee can take ten casual leave during one calendar year. Sick Leave: An employee can take eight sick leaves during one calendar. Earned leave: Such leave is given to an employee for fourteen days after completing one-year service. Maternity leave: Company gives salary of six weeks before maternity and after maternity to its ladies worker.

Time policy
KTM promotes punctuality and discourage to the latecomers. The automatic machines mark attendance of each employee when he enters or exit. This system also helps to HRIS for performance appraisal.

Over time policy

Under this policy company pays to its employees if they have done work more than 40 hours a week. And the rate of over time amount is at least one and half the normal rate.

Conclusion
The HR department is well managed and follows the cutting edge principles of human resource management. They are following local as well as international laws. The pro-duct of the KTML is demanded in the international markets due to its quality products. KTML believes that a motivated workforce and a safe and healthy environment is the key to its success, HR policies are reviewed every two years. Kohinoor provides free housing in safe colonies to all its employees, medical insurance, education for children and has also established provident and workers participation funds. Hospitals and schools have also been set up within the colonies. Presently KTML employs over 5000 people. It has a comprehensive HRIS that helps to mange all its employees and also helps in performance management etc. Kohinoor Textile Mills is an SA 8000 & ISO 2001 certified company and is also approved by the California Safety Compliance Corporation (CSCC).