December 6th 2010
Mr Abdullah Patoli
Institute of Business Management
Korangi Creek Karachi, Pakistan
Dear Mr. Patoli
Here is a report on the ‘Practice of Rewarding function of Human Resource Management at EFU general’ (PPLK), authorized by you on 19th October 2008 and submitted to you on 6th December 2010.
This purpose of this report is to analyze how the rewarding function of Human Resource management is practiced at EFU general in Pakistan, a leading insurance company in the country. For this reason a process consisting of thorough primary and secondary research was carried out. We analyzed the data on EFU from the internet and had a detailed meeting with Mr. Altaf Baig Hear Human Resource department at EFU who provided us with all the details.
Throughout this process we got many experiences by witnessing ourselves the corporate pay structures and incentive plans. We would like to help you whenever you require our skills and would like to offer you, in case you need us, in interpreting this report or a section of it.
It was a great pleasure working with the people at EFU. Thank you for providing us with such a great opportunity.
Tasawwur Zubair ()
Hayat Omer Malik (7608)
Mohammed Shoaib Qureshi
Table of Contents
Background of the Company:4
EFU’s compensation structure5
Pay structures and Grades6
Benefits and Allowances7
House Rent Allowance7
Mobile Phone and Air Time11
Incentives and Recognition12
Various Kinds of insurance13
Background of the Company:
EFU was established in 1932. After the partition EFU transferred its head office from Calcutta to Karachi. Today the company is engaged in general, health and life insurance businesses. EFU gave the emerging insurance industry the leadership, the man power and the drive needed to grow in a situation where at one time, three fourths of the insurance is held by the foreign companies. EFU became the flag bearer of Pakistan's insurance industry on the world stage, and the largest life company in Afro-Asian countries (excluding Japan). EFU is the market leader in insurance business in Pakistan which the company has attained through sheer hard work, dedication and commitment of EFU employees to achieve excellence. Gaining customers’ satisfaction is the prime objective of every employee of EFU. With over 60 branches throughout the country, EFU is one of the few Pakistani organizations run totally by professional management and highly motivated field force. EFU had a very long-term relationship with its main reinsurer “Munich Re” which is one of the largest reinsurance companies in the world. In the year 2009 EFU general wins for the third consecutive year “Brands of the year award” and was also honored with “Brands icon of Pakistan”.
EFU’s compensation structure
EFU uses a mixture of both types of compensation. Employees are rewarded for their performance through direct and indirect compensation. Direct Compensation
Direct compensation includes wages, salaries, bonuses and commissions.
Rules of Pay
At EFU there are various pay scales for the employees which are specified in an appropriate manner. Our meeting with the departmental head HR revealed to us that the pay structure was formulated back in 1985 which is still followed by the company. There are other employees who are employed on contractual basis, their pay scales are different and will be determined by the Competent Authority. Whenever the person gets promoted his pay scale is shifted from previous pay scale to the above level pay scale and only the competent authority have the...