Why is there a major failure of human resource management in PPC? Who is responsible for this failure? How will you address this major issue?
The major failure in Pakistan paper company is due to actually there is no HR-department exists, there is only personnel & administration department, which is also leaded by irrelevant HR-professional, named samad choudhary,he was actually accountant.
The top management including mr.Lakhani & mr.Mustafa were the responsible for that failure because they had not created the HR-department in organization; actually they were not familiar about the importance of HR.they only focusing on productivity, which was a wrong perception
The creation & implementation of HRM department & policies in ppc can resolve the issues, hiring of professionals regarding HR.which are able to make strategies & policies regarding HRM.
What problems are being faced by PPC in each of the following areas of HR? Describe each problem in detail:
No proper recruitment & selection process was implemented in PPC, due to inexistence of HRM.mostly the hiring in the company has been done based on references of ownership & top management or employees or customers. Selections were not done on merit. No formalized recruitment process exists. All hiring interviews, except for daily wage workers, are conducted by irrelevant HR-professionalism Mustafa and the GM Finance, influence of biasness & favourism during the selection. Daily wage and contract workers are hired by Samad Chaudhry.which results the unskillful & incompetent employees cause to suffer company.
There was no system was developed for performance management. No performance appraisal criteria, no performance based appraisal interviews, actually no performance management system exists. Annual increments are decided by a committee comprising of Mr. Mustafa, GM Finance and Mr.Samad Chaudhry.The old system of annual confidential reports was in process. Increments are awarded on the basis of .
➢ Work measurement,
No promotion & compensation policies. Promotion not depends on the performance of the individuals but depends on the length of service. Promotion criteria were defined as, minimum of 5 years in a position is required for promotion to the next level. No discussion to employee regarding performance appraisals.
Due to inexistence of compensation policies, peoples were demotivated & unhappy. Absence of internal equity, external equity, and imbalance total remuneration package increases the employee turn-over rate rapidly. No policies were developed for medical facility, profident fund policy, gratuity fund, end of service benefits, bonuses and its all varies man-to-man and case-to-case.
No salary grades exist and usually a lump sum amount is given as monthly salary. Late payment of salaries due to company worse cash flow situation. Actually, there are no HR policies except for general circulars that are issued from time to time.
Employees feel dissatisfied & they have no way of communicating their grievances & issues,no such employee relation function is in process in company. Employees have many problems & issues but no one is available to resolve their problems such as no transport is provided to workers. No loans are given for house building, motorcycle, children’s education or marriage or even for meeting emergencies. The canteen food is considered unhygienic and most workers, including managerial staff, bring their lunch from home
Due to all of these demotivation level of employees increased & causing the worse effects in their performances & resulting the...