Engro Food Limited

Project Report

Submitted by:

Ahsan Ali (4016)

Nadeem Moosa (3779)

Naveed Hanif (3798)

Siddiqui Adnan Ahmad (3791)

Submitted to:

Mr. Muti-ur-Rehman

Submitted on:

14-05-2011
Contents
Contents..................................................................................................................... 2
Letter of Transmittal...................................................................................................4
ACKNOWLEDGEMENT................................................................................................. 5
Ethics and Integrity................................................................................................ 7

Leadership..............................................................................................................7

Quality & Continuous Improvement.......................................................................7

Enthusiastic Pursuit of Profit...................................................................................7

External & Community Involvement.......................................................................7

Candid & Open Communications............................................................................7

Enjoyment & Fun....................................................................................................7

Innovation..............................................................................................................7

Individual Growth & Development..........................................................................7

Teamwork & Partnership........................................................................................7

Diversity & International Focus..............................................................................7

EMPLOYMENT..............................................................................................................8
TRAINING..................................................................................................................11
MEDICAL BENEFITS...................................................................................................13
LEAVE.......................................................................................................................14
MOBILE PHONES.......................................................................................................15
UTILITIES ALLOWANCE..............................................................................................15
TARGET INCENTIVE ALLOWANCE (Variable)..............................................................16
VARIABLE PAY PLAN..................................................................................................16
HOUSING FACILITIES & RENT ADVANCE....................................................................17
COMPANY COMPENSATION CAR................................................................................17
COMPANY ASSIGNED CAR/MOTOR CYCLE FOR FIELD................................................18
CAR EARN-OUT.........................................................................................................19
RETIREMENT / SEPARATION BENEFITS......................................................................19
LONG SERVICE AWARD.............................................................................................22
REFERENCES......................................................................................................... 23

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.............................................................................................................................. 24

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Letter of Transmittal

Iqra University Dated: 14th May, 2011

Gulshan Campus
Karachi.

Respected Sir,

In accordance with the task assigned to us of making a report on HR Manual and

Policy of an organization. We here by submit the final report on “Engro Foods
Limited” as a part of our subject ‘Human Resource Management’.

With best regards,

Yours sincerely,

Ahsan Ali (4016)

Nadeem Moosa (3779)

Naveed Hanif (3798)

Siddiqui Adnan Ahmad (3791)

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 ACKNOWLEDGEMENT

We owe a great many thanks to a great many people who helped and supported us during the

writing of this report especially the HR Manager Mr. Umer Sharif and their sub ordinates.

Our deepest thanks to Mr. Muti-ur-Rehman, whose guidance with care help us making this

report. We would also thank our Institution and our friends without whom making of this report

would have been a distant reality. We also extend our heartfelt thanks to our family and well

wishers.

Engro Corporation at a Glance

Vision

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Engro stands for “energy for growth”. From inception, ours is a legacy of continuous growth,
new challenges and fulfilled promises. From fertilizers to dairy products, business solutions to
PVC resin, power generation to commodity trade, at Engro our ambition is to become the
premier Pakistani enterprise with a global reach.

A journey through time:

1964-Engro Fertilizer Limited

Urea plant commissioned in 1954 as the largest foreign investment in the history of Pakistan, and
today it’s known as leader in phosphate fertilizers industry

1991-Engro Polymer & Chemical Limited

Renamed, with expansion in Daharki (Ghotki) manufacturing Nitrogenous (urea), phosphate &
blended fertilizers, and micronutrients

1997-Engro Vopak Terminal Limited

Joint venture with Netherland to deal with bulk liquid chemical storage at Port Qasim Karachi

2006-Engro Powergen Limited

Established to tap the energy sector in Pakistan, to undertake power distribution and generation
(through THER coal mine)

2003-Engro EXIMP Private Limited

EXIMP has a program to provide pure certified seeds of Basmati varieties to farmers and help
them conserve water in the rice growing area.

2005-Engro Foods Limited

Established to venture into food business in Pakistan, the company has state of art processing
units in Sukkur and Sahiwal Top Brand; Olpers, Olwell , Tarang , Omore’ ,Owsum etc.

Core Values
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Safety, Health & Environment

For Engro, safety and health of our personnel, neighbors, customers and visitors is the foremost
concern in all our operations and processes. We realize and care about our responsibilities
towards environment, health and safety within our own confines and beyond –extending safe
practices throughout procurement, distribution and waste disposal. Our environment reflects
value such as;

Ethics and Integrity

Leadership

Quality & Continuous Improvement

Enthusiastic Pursuit of Profit

External & Community Involvement

Candid & Open Communications

Enjoyment & Fun

Innovation

Individual Growth & Development

Teamwork & Partnership

Diversity & International Focus

EFL HIERARCHY

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EMPLOYMENT

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OBJECTIVE

To attract and retain capable and qualified employees who are willing to contribute their
best efforts to accomplish the objectives of the company.

POLICY

The company aims to develop its employees and encourages promotions from within the
organization whenever possible. However, in the absence of qualified personnel within the
organization, the company will recruit from external sources.

PROCEDURES

When the organization wishes to fill a vacancy for a position that has been approved on
the Company organization chart, an employment requisition on form No. HRD

SOURCE OF APPLICANTS

The main source of applications is the online portal where all vacant positions are
advertised and some other ways are

- Newspaper or professional Magazine Advertisements.

- Contacts with Universities and Head Hunters.

- Unsolicited applications and Referrals.

REVIEW OF APPLICATIONS

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 All applications are reviewed by the talent acquisition team and suitable candidates are
short listed for the initial interview by HRD. Short listed candidates from the initial interview are
called in to meet with the department concerned.

TESTING

All candidates (management and non management) are required to go through an IQ test
at the time of hiring. The "Interview Evaluation Form" is completed by each interviewer and
returned promptly to HRD.

INTERVIEWING THE CANDIDATE

The candidate should be interviewed under such environment that he/she is as “natural”
as possible and has an opportunity to exhibit his/her usual behavior towards people

PRE EMPLOYMENT PROCESS

The shortlisted candidates from the final round are then required to go through the
reemployment screening process, a set of forms to complete and return with the following
documentation:

- Copy of CNIC

- Copy of all academic certificates

- 4 passport size photographs

- Certificate(s) of previous employment

- Latest salary slip

- Resignation Acceptance from previous employer

The medical examinations are carried out at the panel hospitals, results of which are sent
directly to HRD:

- If the CNIC is genuine and valid.

- If the Educational Degrees are authentic.

- References, both personal and professional.

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- Previous Employment and salary details.

The recruitment process is not closed unless the candidate is cleared in the pre-
employment process

APPOINTMENT

The appointment letter is given to the candidate on the day they join.

PROBATIONARY PERIOD

There is no probationary period requirement and the employees are hired with the
confirmed status.

ORIENTATION

When a new employee joins, HRD will explain the general HR Policies and procedures
of the Company. The talent acquisition team will discuss the detailed orientation plan for the new
employee with the line manager concerned

TERMINATION

Approval of the SVP is necessary before terminating employment of VP and above and
below that, only respective Director, and GM HR approval is necessary.

EXIT INTERVIEW

When an employee resigns an exit interview is conducted jointly or either by HRD and
one level up manager.

TRAINING
OBJECTIVE

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 To establish and assign responsibilities & provide employees with a standard set of
instructions.

CLASSIFICATION

In order to make training a more effective process, it has been categorized in 2 different
types.

Soft & Technical Skills Programs

Soft skills have been defined as skills that help an individual perform better in his/her
role and improves the quality of the output that is generated.

Business Skills Programs

Business skill program constitutes of courses that have been designed to provide a point
of reference to the overall business.

Overseas Training

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 The Directors will nominate their employees for the relevant courses, keeping in view the
training needs of the concerned employees.

MEDICAL BENEFITS
OBJECTIVE:

To assist employees and their immediate families in maintaining a high standard of health
and physical fitness.

POLICY DESCRIPTION:

This policy covers OPD (Out patient), hospitalization and life insurance benefits.

Exclusion:

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 This policy is not applicable to the following employees as they are eligible to receive
monthly “Medical Allowance” in lieu of the Company’s sponsored OPD medical benefits.

CONSULTATION

Employees: All eligible employees will be entitled for free consultation.

Families: Employee’s spouse and dependent children will be entitled for 75% reimbursement of
consultation fee.

MEDICAL EXPENSES OVERSEAS:

While it is not the intent of the policy to reimburse for overseas medical expenses,
consideration may be given to assist in reimbursement of certain medical expenses incurred
overseas. Employee/eligible family members while overseas and having incurred medical
expenses may be given reimbursement for medicines, doctors’ consultations and tests on the
following basis.

i) The cost of medicines will be reimbursed at 80% of actual cost up to a maximum of

Rs.3,000 per family in a calendar.

ii) The maximum amount of reimbursement for consultation and tests will be based on
charges for similar items at the Agha Khan Hospital in Karachi. It is not the intent of this policy
to reimburse for tests which would not be conducted in Pakistan.

LEAVE
OBJECTIVE

To provide for and regulate absence from work for rest and relaxation, sickness,
recuperation after sickness and for attending personal affairs.

ELIGIBILITY

All regular Management employees on Company’s permanent payroll.

POLICY

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Annual Vacation

All employees who on completing one year’s working service with the Company shall
be entitled to annual vacation for rest and recreation.

For Example:

‘A’ joins the Company on September 1, 2008, he /she shall complete one year of service
on August 31, 2009. However, since the annual leave is calculated on calendar year basis, the
employee shall be credited 5 working days of the leave, which pertain to the period of September
– December 2008 on January 01, 2009. The earned leaves of 2009 will be credited on January
01, 2010.

MOBILE PHONES
OBJECTIVE:

To define Company’s policy for mobile phone.

ELIGIBILITY CRITERIA:

All employees are entitled for mobile 10000 to 50000 according to the designation.
Monthly fix bill paid by company except (GPRS). In case of theft or lost of mobile, immediately
call to mobilink for SIM block & inform to concerned manager, so he can intimate to
Administration for their further action.

UTILITIES ALLOWANCE
OBJECTIVE

To define the Company policy on “Utilities Allowance” paid as part of compensation.

POLICY

The Company will pay along with the basic salary “Utilities Allowance” equivalent to
10% of basic salary to all employees. The Company pay “Special Allowance” to employees as
per policy from Rs.3000 to Rs.12000 according to the achievement.

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 TARGET INCENTIVE ALLOWANCE (Variable)

OBJECTIVE:

The purpose of payment of monthly variable “Target Incentive Allowance” is to

establish and recognize employees’ performance in achieving business targets assigned to
defined positions in Sales and Supply Chain.

ELIGIBILITY:

The Company distributes “Target Incentive Allowance” from Rs 3000 to Rs 12000

(per Month) as per achievement and level of position in the company.

POLICY:

The “Target Incentive Allowance” will be variable and computed and distributed as
follows:

75% of amount is distributed on achievement on that month.

25% will be distributed on a quarterly basis on achieving quarterly targets.

VARIABLE PAY PLAN

OBJECTIVE

To establish a variable compensation system that recognizes employee performance in

achieving specific targets and business objectives.

ELIGIBILITY

All management employees are entitled for VPP.

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PLAN BASIS

The Variable Pay Plan (VPP) will be a function of two factors; the achievement of
corporate target and individual job performance against business objectives.

Corporate Target is a combination of an after tax operating profit excluding extra

ordinary items set in relation to financial and operating objectives of the Company, sales and any
other item as approved by the Board of Compensation Committee at the start of the respective
year and as shared with the employees.

HOUSING FACILITIES & RENT ADVANCE

OBJECTIVE

To define Company’s policy for house rent advance.

POLICY

Intent of the policy is to facilitate management employees in renting residence and to

ensure a smooth transfer process.

ELIGIBILITY

Employees above and equal to Vice President.

COMPANY COMPENSATION CAR

OBJECTIVE

The Company Compensation Car is a perk offered to managers as a major component of

the total compensation package. For retaining talent and keeping our in house talent highly
motivated.

Eligibility

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 This policy applies to all regular employees of Engro Foods Limited above VP level and
also provided Company Field Car as a job requirement for employees.

Buy Back Option

After four (04) years all eligible employees will have the option to buy back the
Company Compensation Car at 25% of the purchase price of the car.

Returning the Car

In case an employee chooses not to avail the buyback option or resigns before the
retention period of four (04) years he/she will return the car in good order with all necessary
repairs work undertaken.

COMPANY ASSIGNED CAR/MOTOR CYCLE FOR FIELD

OBJECTIVE

It is the intent of this policy to provide efficient means of transport to employees whose
nature of job/assignments requires extensive outdoor duties for carrying out Company’s
business.

Eligibility

All regular employees of Engro Foods Ltd. based in field locations who have a need to
travel extensively for Company business.

Vehicle Entitlement

The size and type of the vehicles designated are according to designations Entitlement
Car / Motorcycle

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Corolla 1300cc (XLi)

Cultus 1000cc (with CNG)

Mehran 800cc (CNG)

Motorcycle (Honda CD-70 or Yamaha 100)

CAR EARN-OUT

OBJECTIVE

To motivate and retain quality human resource for a sustainable career with EFL.

ELIGIBILITY

Management employees with 3 months service with EFL above divisional head.

RETIREMENT / SEPARATION BENEFITS

OBJECTIVE

The Company endeavors to maintain a well balanced program of employee benefits that
is financially sound and will confer benefits principally in recognition of long service.
The program offers financial security for employee and his/her family and protection at
each stage of his/her career. In case of employee’s separation by death, certain benefits
will be extended to their designated beneficiaries. The Company recognizes that these
objectives will be achieved by means of a well defined program. The program comprises
of:

• Contributory Provident Fund

• Non - Contributory Gratuity Fund

• Death Benefits

The principal features of these benefits are briefly mentioned hereunder.

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CONTRIBUTORY PROVIDENT FUND

Eligibility

All employees in regular employment will be eligible to become members of the

contributory provident fund called “Engro Foods Limited Provident Fund” from the date upon
which the employee executes and files with the Company.

Subscription

Each member will subscribe to the Fund up to ten percent (10%) of his/her basic salary
every month through payroll deduction. The Company will make a matching contribution every
month to the credit of the member’s account in the Fund.

Beneficiaries

A member must nominate a person or persons who shall in the event of his/her death be
entitled to receive payment of the amount standing to his/her credit in the Fund, subject
always to the laws of inheritance applicable to such member.

GRATUITY FUND

Eligibility

All eligible employees retiring/ separating from Company’s service will be eligible for a
non-contributory retirement gratuity from the “Engro Foods Limited Employees’
Gratuity Fund”. Employees are required to fill and sign a prescribed nomination form.

Normal Retirement

Employees will qualify for Normal Retirement on completing 58 years of age and 10
years of continuous service.

Rate of Retirement Gratuity

The gratuity will be paid immediately after retirement date at the rate of 100% of the last
monthly compensation basic salary times service years and fractions thereof, if any.

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SEPARATION GRATUITY

This benefit is applicable only to those management employees who do not retire or die
whilst in Company service.

On Voluntary Resignation / Termination of employment:

Upon voluntary resignation / termination of employment by the Company, the Company

will pay to the employee Gratuity at the following rates:

Years of Service Separation Gratuity

• Less than 1 year Nil

• 1 year but less than 3 years 50% of last monthly Compensation Basic x years of service

• 3 years but less than 5 years 75% of last monthly Compensation Basic x years of service

• 5 years and above 100% of last monthly Compensation Basic x years of service

On Termination due to “Misconduct”

On termination due to “misconduct’ no gratuity shall be payable.

DEATH BENEFITS

In the event of death of a regular employee, the Company will pay the following as a
“death benefit” to the employee’s designated beneficiaries. It is an essential feature of the
scheme to require an employee to designate a primary and a contingent beneficiary(ies), who
should be a legal heir, to receive the death benefits.

Contributory Term Life Insurance:

This is a 50/50 shared Group Term Life Insurance Plan under which there is an insurance
coverage up to an amount equivalent to 20 months last Compensation basic salary plus 12
months Gross salary.

In the event of accidental death the amount payable would be double the coverage shown above.

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Gratuity Benefit:

In case of death of an employee during his/her service with the Company, the Gratuity
Fund will pay an amount calculated as per Clause 4.1 above at the last drawn actual
monthly compensation basic salary of the deceased employee and counting the actual
Company service at the time of his/her death.

LONG SERVICE AWARD

OBJECTIVE

The purpose of the “Long Service Award” is to recognize the long service and
contribution of ten, twenty and thirty years made by the Employees to the Company.

ELIGIBILITY

The employee who has worked for ten, twenty and thirty years with the Company will be
eligible to receive the Long Service Award.

POLICY

The eligible employee will be entitled to receive the following award:

YEARS OF SERVICE AWARD

• On completing 10 years service Gold Coin of 10 grams

• On completing 20 years service Gold Coin of 20 grams

• On completing 25 years service Gold Coin of 30 grams

• On completing 30 years service Gold Coin of 60 grams

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 Eligible employees will have the choice to opt for a wrist watch of equivalent value of the
applicable gold coin. In case of option for wrist watch of higher value, the price will be to the
employee’s account.

REFERENCES

SPECIAL THANKS TO

 MR. TAHIR JAVED TO ALLOW US TO VISIT HR OF ENGRO FOODS

AND MR. UMER SHARIF TO GUIDE US THROUGH OUT OUR PROJECT

 MR. UMER SHARIF --- HR MANAGER ENGRO

 MR. SHARYAR LATIF --- HR COORDINATOR

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  MR. NAVEED --- SALES OPERATION MANAGER

-----------------------------------------------------END--------------------------------------------------

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