PROJECT DOCUMENTATION

Presented To: Mam Tayyaba Iqbal

Subject: Human Resource Management

Presented By: Faiqa Urooj

Ayesha Tehreem

Sohaib Sardar
 ABSTRACT
This is a group project assigned by Mam Tayyaba Iqbal for the course of Human Resource
Management. The objective was to analyze the HRM functions on these lines; Employment laws,
Strategies, Recruitment, and Selection, Interviews, Training, plus Performance evaluation. For
the purpose, we have chosen Shan Foods. Following report contains a brief description of HR
practices at Shan Foods and the findings collected and analyzed from the project questionnaires

INTRODUCTION
Shan Foods (Pvt) Limited is a Pakistani producer of packaged spice mixes used in Pakistani
cuisine, Indian cuisine and other countries of South Asia. The company's products are exported
to over 50 countries, and the popularity of such products is due to the reduction in time required
to make traditional meals.

Shan Food Industries was founded as a cottage industry in 1981 in Karachi, Pakistan by Sikandar
Sultan, the founder & chairman. A few years later it started exporting to Europe, United
Kingdom, United States and the Middle East. By 2008, Shan had become hugely popular within
Pakistan due to its quality brands which were selling at affordable prices for common people.
The company is now exporting its products to 52 countries as well in 2008.[2]

In 2000, Shan increased its penetration in the central and northern regions of Pakistan, and
officially launched in India in 2004 by organizing a cooking competition in New Delhi. Shan
exports to 52 countries making it Pakistan's largest exporter of packaged spice, food, and rice
mixes. But now its presence is in 60 countries.

Chapter 1
 HUMAN RESOURCE MANAGEMENT
What is HRM?
Human Resource Management (HRM) is the term used to describe formal systems devised for
the management of people within an organization. The responsibilities of a human resource
manager fall into three major areas: staffing, employee compensation and benefits, and
defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees. This mandate is unlikely to change
in any fundamental way, despite the ever-increasing pace of change in the business world. As
Edward L. Gubman observed in the Journal of Business Strategy, "the basic mission of human
resources will always be to acquire, develop, and retain talent; align the workforce with the
business; and be an excellent contributor to the business. Those three challenges will never
change."

HRM OF SHAN:
The Human Resources (HR) Department develops initiatives and provides strategic support to
SHAN FOOD’s Management with regard to human resources policy. It supports line
management in the departments, performs centralized service tasks, and ensures application of
operational human resources activities. It is the responsibility of human resource managers to
conduct these activities in an effective, legal, fair, and consistent manner. Human resource
management serves these key functions
Shan have more than 1000 people who share the same vision that is aligned behind a clear
strategy expressed in a simple road map. Our ambition for Shan Foods (Pvt.) Ltd is to be
recognized as the world’s trusted leader in taste, quality and to be the main point of reference for
outstanding financial performance in our industry.

Chapter 2
 EMPLOYMEMT LAWS

1. EQUAL EMPOYMENT OPPORTUNITY

1. Gender
2. Minorities
3. Disability
4. Harassment
LAWs with references

The Constitution of Pakistan contains a range of provisions with regards to labor rights found in

Part II: Fundamental Rights and Principles of Policy

Article 11 of the Constitution prohibits all forms of slavery, forced labor and child labor . No one
has the right to force anyone for labor

Article 17 is related to freedom of association. Every citizen has right to become part of any
union unless if there is any restriction for country safety, provides for a fundamental right to
exercise the freedom of association and the right to form unions

Article 18 is related to the freedom of trade, business and professes and also gives the right to its
citizens to enter upon any lawful profession or occupation and to conduct any lawful trade or
business.

1. GENDER LAWS:

Article 25 addresses the right to equality before the law and prohibition of discrimination on the
grounds of sex alone. Article 25 of constitution of Pakistan is related to Equality of Citizenship.
Article 25 talks about that all the citizen have equal rights and there is no discrimination on the
basis of gender and there can be separate laws which can provide benefit to the children and
women in different forms :

Article 27 title is safeguard against discrimination in services. Exception of qualification basis,

on citizen can be discriminated on the basis of race, caste, gender, religion, place of birth and
residence
2. MINORITIES LAWS:

Article 36 talks about the protection of minorities. The main purpose of this article is highlight
that minorities are equal to Muslims and their protection and rights and interest are also very
important and have right to make their representation in federal and local public institutions.

Article 37 whose title is promotion of social justice and eradication of social evils. The clause e
and f are directly related to EEO laws.
3. DISABILITY LAWS:
C159 of ILO title of Vocational Rehabilitation & Clause 1 of section 10 emphasizes that in any
establishment, minimum 3% of representation should be from disabled.
In section 10 of Disabled Person Employees and Rehabilitation ordinance 1981 which is related
to establishments to employ disabled person
4. HARASSMENT LAWS:
Section 2C of the protection of woman harassment at workplace act 2011 provides guidelines of
behavior to all employees including the owner to make harassment free environment for women
at work 9
2. EMPLOYMENT INFORMATION AND HEALTH SECURITY
INFORMATION:
Employment Information and health Security Information related to employment like:
1. Facilities
2. Wages
3. Employment Particulars
4. Probation period, and fixed term contracts, health etc.

LAWs with reference

 1. Chapter 3 of Factories act 1934 is based on health and safety issues in industrial
sector. It has 13- 33Q sections. It is the responsibility of employer to train and provide
safety equipment to workers.
2. In section 2 of Schedule standing ordinance of the industrial and commercial
Employment 1968, term and conditions should be given in writing such as appointment,
transfer and promotion.
3. According to Section 1, probation period should not more than 3 months. Contract
based employment should will be of 9 months which can be renew during employment.
4. According to Section 3, last in first out method will be used for retrenchment
3. WORKING HOURS AND HOLIDAYS
LAWs with reference
1. Section 34 of factories Act 1934 allows 48 hours week in a week and for seasonal
production, maximum 50 hours of work
2. Section 35 is related to weekly holidays. No one allowed working on Sunday unless he
takes one holiday immediately before or after three days
3. According to section 36, no one is allowed to work 9 hours in a day

4. MATERNITY LAWS:
LAWs with reference
1. Section 6 Chapter 5 of the provincial employment social security ordinance 1965 is
related to maternity benefits:
2. According to section 3, 4 of The West Pakistan maternity benefit 1958, woman can get 3
months leave with full pay.
5. MINIMUM WAGES:
LAWs with reference
There are different types of acts, ordinance are working in Pakistan related to wages such as
the Minimum wage Ordinance 1961
1. Pakistan Minimum Wages for Unskilled Workers Ordinance, 1969
2. The Payment of wages act 1936
 3. Amendment in the section 3 of Minimum Wages for Unskilled Workers Ordinance 1969
has set the minimum wage for unskilled workers Rs 12000(26 days) per month
4. Section 3,4,5 of the payment of wages act 1936 are related to who is responsible to pay
the wages, the period of payment of wages should not exceed 1 month and wages should
be distributed till 7th date of the month
COMPENSATION:
1. Section 47 of chapter 4 related to factories act enforces extra pay for overtime. This
would be double of the regular wages
2. Section 48 restricts the double employment in same factory.
BONUS:
1. In industrial and commercial employment ordinance 1968, 10-c payment of Bonus, if an
employer gets profit, he has to pay bonus to a worker, working for him more than 3
months
2. Section 10-A emphasizes the importance of group incentive scheme for workers whose
production exceeds from others
6. MINIMUM AGE
LAWs with reference
1. Section 3 of article 11 clarifies that no child below the age of fourteen can work in mine,
factory and other risky places
2. Section 26 of Mines act 1923 explains that children are not allowed to work in mines
3. Section 26 A limits the work age in mine of 17 years if the child has not fitness
certificate
4. Section 26 B highlights the break of 12 consecutive hours if the age is below 17 years
5. Section 3 of The Road transport workers ordinance ,1961 defines that any type of road
transport services are not allowed unless the age of 18 years.
6. Similarly section 110, Chapter 8 of Merchant shipping Ordinance of 2001 restricts that
no citizen is allowed below the age of 15 to perform work in any ship.
7. Section 20 of Shop and establishment ordinance 1969 clarifies that no child is allowed to
work in any establishment
8. International Labor Ordinance convention 138, Minimum age convention 1973,c-15
minimum age (trimmers and stokers) convention 1921,C182 worst form of child labor
 convention,C6& C90 night work of young people industry, convention 59 minimum age
industry convention are in enforcement.
7. EMPLOYEES REFERENCE CHECKING
 Education
 Previous Employment
LAWs with reference
Educational and Employment reference checking should be according to the law

1. In section 3 of Defamation Ordinance2002, it is clearly mention “Any wrongful act or

publication or circulation of a false statement or representation made orally or in written
or visual form which injures that reputation of a person, tends to lower him in the
estimation of others or tends to reduce him to ridicule, unjust criticism, dislike, contempt
or hatred shall be actionable as defamation
2. Absolute and Qualified privilege is given in section 5 and 6 to the person who gives
information on the order of parliament and to the proper authorities
3. Chapter 21 of Pakistan Penal Code is related to Defamation laws and its explanations.
 Chapter 3
STRATEGIC MANAGEMENT
SPICE BUSINESS IN PAKISTAN
The spice industry of Pakistan annually grows at a rate that is above 50%. Within this industry,
80% market share is with unbranded loose spices and the rest with branded packed spices.
Pakistan is the world’s ninth largest market with an estimated 170 million consumers. Experts
believe that the food retail market in Pakistan is in the throes of landmark changes, with the total
number of retail outlets expected to have grown by 15% in the1990s, presently resting at 286,774
outlets. Share of food in household budget is 48.3% in Pakistan. As indicated in Figure below, it
is apparent that 48.3% of the monthly expenditure is on food, beverage and tobacco’, followed
by ‘rent’. This clearly depicts the consumption pattern of an average person living in a
developing country like Pakistan. The Pakistani spice industry can be divided into branded and
unbranded industry. SMEDA found out that there are about 7000 spices and salt grinding units
operating in Pakistan, 60% of which are rural based.
STR ATEGY SHAN FOODS
VISION:
A global food brand offering premium quality innovative products, which delight our consumers.
MISSION:
 To ensure Shan products are in every kitchen / households all over the world
 To satisfy the needs of all stake holders in a just and equitable profit sharing.
 To put the name of PAKISTAN as a hall mark of quality in food products among the
international community
 To provide products of the highest quality at the least chargeable profit.
 To produce and market food products having quality standards much higher than set
internationally.
1. EXTERNAL ENVIRONMENT:
 OPPORTUNITY:
Sultan found a gap in the food industry of Pakistan, where ready-made spice mixes
were unheard of.
 THREAT: Loose unhygienic spices or home-grown spices.
 INDUSTRY COMPETITION: National Foods, Chef’s Pride, Mehran Foods,
Ahmed Foods, Habib Foods, Zaiqa Foods, Ronaq Masaley, Kitchen Secrets. National
Foods is the biggest competitor in pickles and salt categories as well.
In traditional desserts, Laziza, and in contemporary desserts, Rafhan gives a run for
the money. Shoop competes with Maggi and Knorr (SPICY COMPETITION)

2. FORCES OF COMPETITION
 THREAT OF NEW ENTRANTS: High
 RIVALRY AMONG COMPETING FIRMS: High
 THREAT OF SUBSTITUTE PRODUCTS: Low
 BARGAINING POWER OF BUYERS: High.
Buyers spend 40%-55% monthly on food, beverages and tobacco in the rural and
urban areas of Pakistan. The sales of spices make a significant portion of Shan’s
revenue. Buyers can quickly switch to other brands, or unbranded spices for little
cost.
 BARGAINING POWER OF SUPPLIERS: Medium.
Shan Foods is a big corporation and suppliers tend to bargain for the best prices.
(FIVE FORCES MODEL)
3. COMPETITOR ANALYSIS
 COMPETITIVE ADVANTAGE:
Shan Foods is the only spice company in Southeast Asia with cryogenic technology
that preserves the taste of 1600-1700 tons of spices when it is ground, by maintaining
freezing (0 degree Celsius) temperature and killing heat produced from friction.
 FIRST MOVER ADVANTAGE: Shan Foods has the advantage of being the first
mover for branded spices in Pakistan, and now in India as well. It has created a
 positive reputation for itself in the spice market focusing on Sharia and Pakistan’s
traditions.
 STANDARD CYCLE MARKET: The market of spices is a standard cycle market
where new entrants can come in quickly and sell spices on a small scale.
 PRICE IMPARITY: Shan Foods has to sell fast movers at a loss due to the price
imparity with unbranded spices. If they raise prices, the buyers would switch to
unbranded or home-grown spices.
 MARKET COMMONALITY: Although Shan shares the same market with
National Foods, it is less popular in the north because of its spicy flavor. Shan Foods
has a strong hold in southern parts of Pakistan.
4. INTERNAL ENVIRONMENT
 TECHNOLOGY: Apart from the cryogenic technology, Shan Foods’ other major
resource expenditure is on maintaining the ERP systems. It is also looking to
implement SAP through Arm Tech in the future.
 HUMAN RESOURCE: Shan Foods hires trainees once a year and focuses on their
individual development. These trainees are later hired into the company.
5. BUSINESS LEVEL STRATEGY
Shan Foods has recently focused on becoming a “House of Brands” like Unilever and P&G.
Instead of launching desserts, basmati and soups under Shan’s name, they launched separate
brands - Delve Desserts, Maa and Shoop respectively. Unlike National Foods, which focuses
on export, Shan Foods focuses on the local market and its marketing department handles the
export side. During recession, Shan Foods continues the hiring process and shows
growth especially in lower SKUs where their sachets sell well.
 COST VS. DIFFERENTIATION
 COST LEADERSHIP: Shan Foods cannot lower its price too much because it
needs to support its cryogenic units to maintain taste. However, it does sell fast
movers at a loss to give its customers the best price in the market. It is currently
impossible for Shan Foods to compete with unbranded spices’ prices.
 DIFFERENTIATION LEADERSHIP: Shan’s taste is slightly spicier owing to the
fact that they maintain the rich flavor of the ingredients even after they are ground.
 Apart from quality, Shan focuses on giving variety, better packaging, brand
reputation, easier recipes and greater availability. HOW DO THEY LEAD?
6. TOTAL QUALITY MANAGEMENT
SHAN FOODS focuses on the Return of Investment of every activity they do. From human
resource planning to sifting through raw material to delivering marketable goods, their
strategy is to focus on quality at every step. The Quality Control (QC) department ensures
that the ingredients are the very best, chosen from a variety of crop yields and that the
process brings out the right taste in each spice.
The end result is a packaged Fast-Moving-Consumer-Good that has become a household
name in Pakistan.
A MYTH OR REALITY?
7. RATIO ANALYSIS
 CURRENT RATIO:
Current assets/ Current liabilities: 3,114,550/ 3,654,457 = 0.851597242121519
 INVENTORY TURN-OVER:
Sales/ Inventory of finished goods: 26,744,359/ 2,551,752 = 10.48078300712608
 FIXED ASSET TURNOVER:
Sales/ Fixed Assets: (26,744,359/ 3,947,210) * 100 = 67.8%
 PROFIT MARGIN: 10-15%
 ANNUAL REVENUE: 3.3 Billion
 ANNUAL FIXED COST: 120,000
 TOTAL VARIABLE COST: 300,000
OUR SUGGESTIONS EXPORT STRATEGY:
Shan Foods should create a separate department for exports to lessen the burden on marketing
department.
MARKETING STRATEGY: To increase market share, Shan Foods should invest more in
marketing to the foreign markets such as Africa, West Indies, Zimbabwe, Sri Lanka, Bhutan,
Central Asia and Mexico. The middle class market is already saturated.
 Chapter 4

JOB ANALYSIS

Job analysis is done subsequently by the line managers, heads of the departments and the HR
department. The job is completely analyzed on the basis of activities and responsibilities
involved and attributes or job requirements needed to perform the activities. The job analysis are
done by keeping in sight the functional or duty areas of a position, tasks, the basic requirement
for the job and the basic training to do the job. The job description and job specifications are
subsequently made and analyzed by line managers, HOD and HR department which in turn helps
hire the right quality of workforce for the company. Another purpose of job analysis is later
improvements, regarding performance appraisals, selection systems, promotion criteria, training
needs recognition, compensation plans etc. The job analysis at Shan Foods aims to answer
questions such as:

 What qualifications, skills, techniques and characteristics are needed to perform the job?
 Within how much time the job needs to be performed?
 How does the worker perform the job?
 What responsibilities does the worker undertake?
 Why does the particular job exist?

JOB EVALUATION

Job evaluation is conducted by HR department determining the value and worth of a job. This
allows them to identify the highly responsible and tougher jobs so that they can set the
compensation package of an employee according to the nature of the job. Without job evaluation,
there is a threat of employees’ job dissatisfaction which can result in deterioration in employees’
performances. At Shan, jobs are arranged from highest to lowest, in order of their value, level of
responsibilities and the relative difficulty in performing them. Compensation packages are set
according to the ranking of the job as highest being most difficult and highly paid and lowest
being simplest and less paid.

Chapter 5
 PERSONNEL PLANNING AND RECRUITING
RECRUITMENT
CREATION OF VACANCY:
The vacant positions are usually assigned to the existing employees for the purpose of
replacement or promotions etc. But still there is a good amount of budget allocation for the new
vacancies at the end of every year which allows the HR department to create some new
vacancies for external recruitment. The vacancies are created by the decision making of line
managers of the departments, head of the departments, HR manager and CEO regarding the need
and necessity of the new vacancies. New vacancies are created on the basis of termination,
expansion etc.
PHASES OF RECRUITMENT
 Phase 1: Identify Vacancy and Evaluate Need
The Company first identifies and evaluates the need and necessity of the new vacancy
and internal replacement. The decision making is done with the collaboration of HR
manager, line managers, Heads of the departments and CEO keeping in sights the
objectives and strategic goals, budget allocation and job analysis.
 Phase 2: Applicant Generation
In this phase of recruitment, the company decides the applicants to target in the search.
More specifically, what type of applicant would they like to attract to their organization’s
open or vacant positions for example, entry-level or experienced. The open positions are
generally for the non-experienced and entry-level applicants at Shan Foods as they prefer
referrals for the vacant positions which require replacement. Sometimes, for some new
openings, the services of headhunters are also availed for recruitment depending on the
nature of job.
 Phase 3: Maintaining Applicant Status
During the second phase of recruitment, the company is primarily concerned with
maintaining the applicant’s interest in the job and the organization so that the applicant
will accept the job offer. Given the goals of both the company and applicant, the initial
recruiter-applicant contact is considered very important. First impressions revolve around
the recruiter judging the applicant and the applicant’s reaction to the recruiter’s attitude
and behaviors. For this purpose, numerous interviews depending on the nature of the job
are held with HR manager, line manager of the concerned department and finally with the
Head of the department.
 Chapter 6
EMPLOYEE TESTING AND SELECTION

STRATEGIES FOR HIRING SENIOR/ MID/ ENTRY LEVEL POSITIONS:

The senior and mid-level positions are filled using internal recruitment system and previous
employee on that position is replaced with another employee of the company. Entry level
openings are comparatively lesser at Shan Foods and for the purpose of hiring entry-level
employees, Shan gives job ads online and in newspapers, consider recommended applicants of
existing staff and avails services of headhunters.
SELECTION PROCESS
Review of Applications
a) Applications are reviewed by the HRD and suitable candidates are selected for the
departmental consideration.
b) Applications are reviewed by the Department concerned.
The department concerned and the HRD select those candidates who are to be called for an
initial interview by the HRD.
Preliminary Interview
 Candidates are screened by the HRD
 Appropriate tests are administered as mentioned below.
 Results of screening and tests are shared with the Department concerned
 Candidates for further interviewing are chosen on the basis of this screening and testing.
RELIABILITY

 It is the degree to which an assessment tool produces stable and consistent results.

VALIDITY

 Refers to how well a test measures what it is purported to measure.

Testing:
The successful applicants may be asked to take selection tests in order for the organization to
assess applicant’s knowledge, skills, abilities and demonstrated capabilities relevant to the job
requirements.
Group HR will coordinate with the department the design and related elements (grades
applicable, test environment, checks and reviews, follow through with results vs. on the job
performance) of the tests.
Results of tests will be compiled and maintained in Human Resource department and will
remain confidential
The kinds of test measurements obtained and the questions that help to answer are: Intelligence
- Can the candidate learn to do the job?
- Will he be expected to progress to higher job?
- Can he be expected to progress to higher job?
- Will he show sound judgment in crucial situations?
Educational Achievement
- Does the candidate have the basic education upon which is build?
- Does his/her achievement conform to his/her years of schooling and intelligence?
- Does his/her achievement show that he/she is highly motivated?
Attitudes
- Does he have the attitude, opinions and personal history that have been shown to be
characteristic of our successful employees?
- Does his judgment about himself and other people agree with the principles of Human
Relations practiced in the Company?
Job
- Does he know the principles and theory of his craft?
- Does he know the standards of practice of his craft?
Passing scores are determined by considering:
- The content of entrance training programs.
- The job requirement, present and future.
- The number of applicants
- The status of the applicant’s present, former or new employer.
HIGH/LOW RISK EMPLOYEES
There is no such formal classification of high and low risks employees at Shan Foods Ltd and
according to them; each and every employee is important to them whether they are of managerial
or non-managerial level. Although, like any other organization, there are some employees whom
the company cannot afford to lose at any cost and for the purpose of retaining them, the company
provides them with extraordinary salary packages, allowances and other perks and privileges.
 Chapter 7

INTERVIEWING CANDIDATES
Final Interview
The candidates are short-listed by factory HR Manager against the requirements of the job
description and called in for interviews in consultation with the Department Head. Interviews for
Managers and above are conducted by the Chief Executive with facilitation from the Group HR
Department. Interviews for all other positions are conducted by the General Manager in
consultation with the Factory Manager/ Department Head with the facilitation of HR department.
Reference Checks
Reference checks are conducted for all qualified and selected candidates by the HR Department.
Reference Checks can reveal information about an applicant’s behavior with prior employers that
could be critical to your decision.
Medical
The purpose of the medical examination is to determine and evaluate the general health status of
the applicant as it is related to his ability to perform the job for which he is applying.
Appointment letter is issued only after the candidate has been found fit for the job applied for.
Only successful candidates are asked to undergo the medical test, which will consist of a blood
test, chest x-ray and a urine test. The cost of the medical examination is borne by the
organization.
Appointment
On acceptance of “Offer Letter/Sheet” by the candidate, the HRD finally issues the
“Appointment Letter” signed by the Director for all Management employees and the by
Manager for all Non-Management employees and returns it to the HRD for further processing.
Probationary Period
The appointment for a probationary period is as follows
- MANAGEMENT Employees : 6 months
- NON-MANAGEMENT Employees: 3 months
On successful completion of the probationary period a “Confirmation Letter” is issued by
HRD, which is duly signed by the concerned Director/Manager, Employees will become
members of the Provident Fund only on confirmation of the employment.
Replies to other candidates
All other candidates who were called wither for initial interviews or any other interviews are sent
replies by the HRD thanking them for their cooperation and telling them that the position has
been filled.
Provides equal employment opportunities on pure merit system irrespective of gender, race,
religion, ethnicity, origin etc. There is a general perception regarding Shan Foods that their
organizational culture is extremely religious and most of their staff strictly follows the
religious values of a specific religious sect. There is also a perception about Shan regarding
discrimination on the basis of gender that they don’t hire female staff because of religious
extremism. By visiting the company itself, we observed that the general perception is not
absolutely correct and there are equal employments opportunities for all as there is are
female staff in the company, non- Muslims are working in the company and employees
belonging to Hindu religion are provided with specially made vegetarian food for them.
The general staff there was casual and there was no sign of religious extremism. Although,
because of being Sharia compliant organization, the company completely stops its
operation at Prayer breaks and car allowance are given to employees through Islamic Ijara
system.

 Basic Features of Interviews

 An interview
– A procedure designed to obtain information from a person through oral responses to oral
inquiries
 Types of interviews
– Selection interview
– Appraisal interview
– Exit interview
 Interviews formats
– Structured
– Unstructured
 Types of Interviews
 Selection interview
– A selection procedure designed to predict future job performance on the basis of
applicants’ oral responses to oral inquiries.
 Appraisal interview
– A discussion, following a performance appraisal, in which supervisor and employee
discuss the employee’s rating and possible remedial actions.
 Exit interview
– An interview to elicit information about the job or related matters to the employer some
insight into what’s right or wrong about the firm.
 Formats of Interviews
 Unstructured or nondirective interview
– An unstructured conversational-style interview in which the interviewer pursues points of
interest as they come up in response to questions.
 Structured or directive interview
– An interview following a set sequence of questions.
 Interview Content: Types of Questions
 Situational interview
– A series of job-related questions that focus on how the candidate would behave in a given
situation.
 Behavioral interview
– A series of job-related questions that focus on how they reacted to actual situations in the
past.
 Job-related interview
– A series of job-related questions that focus on relevant past job-related behaviors.
 Interview Content: Types of Questions
 Stress interview
– An interview in which the interviewer seeks to make the applicant uncomfortable with
occasionally rude questions that supposedly to spot sensitive applicants and those with low
or high stress tolerance.
 Puzzle questions
– Recruiters for technical, finance, and other types of jobs use questions to pose problems
requiring unique (“out-of-the-box”) solutions to see how candidates think under pressure.
 Personal or Individual Interviews
 Unstructured sequential interview
– An interview in which each interviewer forms an independent opinion after asking
different questions.
 Structured sequential interview
– An interview in which the applicant is interviewed sequentially by several persons; each
rates the applicant on a standard form.
 Panel interview
– An interview in which a group of interviewers
 Personal or Individual Interviews
 Mass interview
– A panel interviews several candidates simultaneously.
 Computerized Interviews
 Computerized selection interview
– An interview in which a job candidate’s oral and/or computerized replies are obtained in
response to computerized oral, visual, or written questions and/or situations.
 Characteristics
– Reduces amount of time managers devote to interviewing unacceptable candidates.
– Applicants are more honest with computers
– Avoids problems of interpersonal interviews
 Factors Affecting Interviews
 First impressions
– The tendency for interviewers to jump to conclusions
—make snap judgments
—about candidates during the first few minutes of the interview.
– Negative bias: unfavorable information about an applicant influences interviewers more
than does positive information.
 Factors Affecting Interviews (cont’d)
 Misunderstanding the job
– Not knowing precisely what the job entails and what sort of candidate is best suited
causes interviewers to make decisions based on incorrect stereotypes of what a good
applicant is. Candidate-order error
– An error of judgment on the part of the interviewer due to interviewing one or more very
good or very bad candidates just before the interview in question.
 Factors Affecting Interviews (cont’d)
 Nonverbal behavior and impression management
– Interviewers’ inferences of the interviewee’s personality from the way he or she acts in
the interview have a large impact on the interviewer’s rating of the interviewee.
– Clever interviewees attempt to manage the impression they present to persuade
interviewers to view them more favorably.
 Factors Affecting Interviews (cont’d)
 Effect of personal characteristics:
attractiveness, gender, race
– Interviewers tend have a less favorable view of candidates who are:
Physically unattractive
Female
Of a different racial background
Disabled
 Factors Affecting Interviews (cont’d)
 Interviewer behaviors affecting interview outcomes
– Talking so much that applicants have no time to answer questions.
– Letting the applicant dominate the interview.
– Acting more positively toward a favored (or similar to the interviewer) applicant.
 Designing and Conducting the Interview
 The structured situational interview
– Use either situational questions (preferred) or behavioral questions that yield high
criteria-related validities.
 – Step 1: Job Analysis
– Step 2: Rate the Job’s Main Duties
– Step 3: Create Interview Questions
– Step 4: Create Benchmark Answers

 How to Conduct an Effective Interview

 Structure your interview:
1. Base questions on actual job duties.
2. Use job knowledge, situational, or behaviorally oriented questions and objective criteria
to evaluate the interviewee’s responses.
3. Train interviewers.
4. Use the same questions with all candidates.
5. Use descriptive rating scales (excellent, fair, poor) to rate answers.
6. Use multiple interviewers or panel interviews.
7. If possible, use a standardized interview form.
8. Control the interview.
 Examples of Questions That Provide Structure Situational Questions:
1. Suppose a co-worker was not following standard work procedures. The co-worker was
more experienced than you and claimed the new procedure was better. Would you use the
new procedure?
2. Suppose you were giving a sales presentation and a difficult technical question arose that
you could not answer. What would you do? Past Behavior Questions:
3. Based on your past work experience, what is the most significant action you have ever
taken to help out a co-worker?
4. Can you provide an example of a specific instance where you developed a sales
presentation that was highly effective? Background Questions:
5. What work experiences, training, or other qualifications do you have for working in a
teamwork environment?
6. What experience have you had with direct point-of-purchase sales? Job Knowledge
Questions:
 7. What steps would you follow to conduct a brainstorming session with a group of
employees on safety?
8. What factors should you consider when developing a television advertising campaign?
 How to Conduct an Effective Interview (cont’d)
 Prepare for the interview
– Secure a private room to minimize interruptions.
– Review the candidate’s application and résumé.
– Review the job specifications
 Establish rapport
– Put the person at ease.
 Ask questions
– Follow your list of questions.
– Don’t ask questions that can be answered yes or no.
 Chapter 8
TRAINING AND DEVELOPMENT
OF EMPLOYEE

TRAINING SYSTEM AT SHAN FOODS

They have built an institution named ‘Shan Centre for Excellence’ where Training Sessions are
conducted for development of Technical and Managerial Competencies. The HRM department at
Shan Foods provides extensive on job training to its employees both internally and externally on
regular basis according to their respective job areas. The training system is proper and
transparent and every employee gets extensive training according to his performance rating and
job evaluation. Necessary training is also provided to employees before promotions, transferring
and external projects to cope up with the changes in environment and increment in job
responsibilities.
CAREER PLANS FOR EMPLOYEES
Shan Foods is not an extremely formal organization like MNCs, therefore there are no such
visible career plans for the employees. Unlike big MNCs, Shan doesn’t inform its employees
regarding their career path and promotional limits or time periods. The promotions and postings
to other countries in which the company is operating are done on the basis of performance and
willingness of the concerned leadership. Shan doesn’t provide clear lines of career planning to its
employees. Although, there is rapid career growth at Shan and on job trainings are provided to
the employees to excel their career but still there is no formal and fixed way of career planning at
Shan.
 Chapter 9
PERFORMANCE MANAGEMENT AND APPRAISAL
MOTIVATION SYSTEM
There is a proper motivation system at Shan Foods Ltd. They have certain criteria for every job
and they rate the performance of their employees on the scale of 1 to 5 (1 being “needs to
improve” and 5 being “excellent performance”.) The increments, promotions and other monitory
benefits and incentives are given to the employees based on their performance for the
responsibilities which are quantifiable while non-monitory awards are given for good conduct,
dedication at work, punctuality and loyalty towards work and organization. Surveys are
conducted within the organization asking employees regarding the job satisfaction and other
motivational aspects promising them complete confidentiality regarding their identity. In case of
negative response from the employees, necessary steps are taken to overcome their complaints to
keep them satisfied and motivated at work and. Besides that, several motivational programs and
promises for opportunities are used to motivate employees.
COMPENSATION
The compensation policy at Shan Foods is not strategic. Although they offer market competitive
salary, perks and privileges but their employees do not have clear vision regarding their future
salary increments and allowances on the basis of inflation and economic forecasts. There is not a
concept of “Salary Banding” so the compensations are equal for the jobs having same workload
and responsibilities according to their classification irrespective of departments. Because of the
absence of strategic compensation policy, Shan Foods has faced serious retention issues from
their sales department and they had to revise their pay scale to overcome that issue.
BENEFITS FOR THE EMPLOYEES
Besides market competitive salary, the company offers various incentives and allowances to its
employees like bonuses, GP fund, medical allowance, car and fuel allowance etc.
The salaries of employees are received and revised time to time against inflation and economic
conditions of the country.
BENEFITS ON SEPARATION
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 services.
The Principle features of these benefits are mentioned hereunder.

 Gratuity fund
 Provident fund
 Pension
On Termination due to “Misconduct” no gratuity shall be payable.
SUCCESSION PLANNING AT SHAN FOODS:
Shan Foods doesn’t focus much on succession planning. According to Mr. Tariq, Assistant
Manager HR, there was a formal action plan made for succession planning few years back but
the top management of the company didn’t find it much effective, appealing and beneficial and
the keeping in sight the possibility of politics between company’s employees, the concept of
succession planning was not focused upon anymore.
PERORMANCE MANAGEMENT AT SHAN FOODS
Shan foods greatly emphasizes on performance management as they know the importance of
capable employees in the organizational progress. Performance of employees is monitored on
regular basis and appraisals are given to them annually regarding their performance. The rating is
done on the basis of bell curve. Performance appraisal is objective based at Shan Foods (Pvt.)
Ltd. Employees performing well are given additional benefits along with additional
responsibilities and targets. Low performing employees are counseled and necessary trainings
are provided to them to let them overcome their weaknesses. Besides that, extensive on job
trainings are provided to the employees on regular basis to enhance their performance.
RETENSION ISSUES
According to Mr. Tariq, Assistant Manager HR, they were facing serious retention issues from
sales department previously. The reason behind subsequent resignations was the salary and
compensation packages which, according to the sales people were not enough to prevent them
joining other organizations. Though, the HR department was not facing such issues with other
departments but necessary steps were taken and pay scales for all the departments were revised
to retain the employees and now they are free from such retention issue. The HR department
does not instantly accept resignations from capable employees and tries to retain them by
overcoming the reason for resignation to some extent. The resignation is only accepted if the
employee doesn’t want to get retained even after efforts of HR department for retaining him/her.
TURNOVER RATIO
The turnover ratio at Shan Foods is not alarming for the Human Resource department because
there is no culture of firing until and unless it becomes too necessary. Moreover, the job
satisfaction level and compensation packages are good enough to retain employees. The brand
name and company reputation also allows them to retain employees as employees feel their jobs
securer and their status higher working in a company like Shan Foods Ltd. Although, there was a
noticeable turnover ratio previously because of employees’ preference of working in MNCs over
working in a local based organization. But the issue has been terminated ever since Shan Foods
has expanded its production capacity even further with manufacturing units installed in UAE,
Saudi Arabia, United Kingdom, USA and setting up harbor offices in Shariah- UAE, Makka-
KSA and Manchester- United Kingdom. This enormous expansion has allowed them to retain
employees even better.
RESIGNATION
All employees, upon resignation acceptance will be scheduled for an exit interview. Refer to Exit
Interview Form. HR will conduct an exit interview for employees placed in managers and above
category. For all other positions the concerned factory manager will conduct the Exit interview.
Findings of the Exit Interviews will be compiled by HR Managers and forwarded to Group HR
Manager for onward review with management for corrective actions wherever required.
RETIREMENT
Retirement age for all male employees is 60 years and female employees are 55 years. Human
Resources will issue all related correspondence to employee 1 month prior to retirement.
RE-HIRE OF FORMER EMPLOYEES
Rehiring of former employees can take place with the organization. In such cases, HR
Department will request recommendation of (previous) Department Head before forwarding the
case to the General Manager and Chief Executive. The General Manager and Chief Executive
will have the authority to approve/reject the rehiring of the employee.
ALLIGNMENT OF HR DEPARTMENT ON ORGANIZATION’S
OVERALL STRATEGY
Strategic HR planning is one of the most important components at Shan Foods as they consider
the strategic HR planning as a core component in achieving organizational objectives and
strategic goals. The HR policies at Shan Foods are completely aligned with company’s overall
strategy and maintaining a pre-defined organizational culture like strict Shariah compliance,
decentralized decision making to some extent, informal means of communication between
managerial and non-managerial staff, employee empowerment etc. The HR department, as per
company’s policy primarily focuses on internal recruitment, merit based selection, attractive and
market competitive salary and compensation packages for employees and fair wages to the labor
as per government’s instructions, retirement plans etc. All these factors align HR policies with
organizational strategies assisting actively and playing immense role in achieving strategic goals
of the organization.
STATUS OF HUMAN RESOURCE MANAGEMENT DEPARTMENT AT
SHAN FOODS
The status of HR department at Shan is moderate. The HR department influences the employees
work and management’s decision to some extent but not at full. There are clear lines of
authorities for each department and maximum authority is given to the departmental line
managers as they are directly supervising the staff. Although, the HR policies are strictly
followed within the organization and every employee of every level has to comply with those
policies. Shan Foods doesn’t have any visible talent acquisition system in place as they primarily
focus on internal recruitment and replacement for the vacant jobs and entry-level openings are
comparatively lesser at Shan Foods.
CONCLUSIVE ANALYSIS OF THE HRM DEPARTMENT OF SHAN FOODS
The human resource management department of Shan Foods is one the most influential and
powerful departments of the company. Although, the department has clear lines of authority but
still it has an influential role within the organization. The HRM department of Shan Foods
consists of well qualified and professional staff with highly ethical working methodologies and
effective system of recruitment, selection, training and compensation. They value their
employees and consider them as an organizational family maintaining friendly and motivating
organizational culture and informal means of communication for better coordination. Although,
there is still some capacity for further improvement regarding clear and visual career planning of
the employees. At Shan Foods Pvt. Ltd, the recruitment is purely rational and requirement based,
selection is merit based with equal employment opportunities, training is extensive and
compensation is market competitive, fair and attractive. Although, they have faced some
retention issues in the past but due to the absence of strategic compensation policy. They have
overcame it by revising their pay-scale and now they are very successful when it comes to
employee retention. Their effective performance management and alignment with company’s
overall strategy have made them a successful and reliable department of the organization.
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