INSTITUTE OF

BUSINESS
MANAGEMENT

Dewan Distillery, YDC Human Resource Department Functions, Issues &

Recommendations

Mr. Muhammad Tariq

Khan

ADNAN JAVED
KASHIF FAZAL
SHUMAIL
KUMAIL

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PROJECT BASED ON Human Resource
DEPARTMENT’S FUNCTIONS, ISSUES &
RECOMMENDATIONS

Presented to

Mr. Muhammad Tariq Khan

Managing Human Capital

April 21st 2018

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LETTER OF TRANSMITTAL:

MR. Muhammad Tariq Khan

Lecturer, Institute of Business Management (IoBM),

Karachi, Pakistan.

Dated: April 21st 2018

Dear Mr. Khan,

With this letter, we would like to thank ALMIGHTY ALLAH for succeeding us in the completion
of this report. Also, we acknowledge with thanks and would like to honor your efforts and
guidance you provided us throughout the whole period.

This report portrays various HR management aspects of the organization “Yousuf Dewan
Companies”, their businesses and overall culture of the organization & their exact related
issues. A background study is therefore being conducted and we are thankful to every team
member for earnestly participating and putting in the efforts required for the same.

Sincerely,

Group Members

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 Executive Summary

The company is running various businesses in the sectors of Cement, Sugar, Textile and

Automotive operations mainly. A brief history of all sectors of YDC is being provided to have a

general understanding about the group.

This report discusses the following HRM activities being followed by Dewan Distillery:

 Job Analysis

 Human Resource Planning & Recruiting

 Employee Testing, Interview & Selection.

 Training & Developing Employees.

It also covers group’s activities in corporate social responsibilities, that how the group has

contributed in the Education and Health Sector in particular.

In the end, the report concluded that this organization is currently striving to have future

leaders that can impact the company’s vision and performance in the coming decades. The real

time HR related issues have also been identified and recommendations are also provided to

effectively prevent and improve the HR performance and culture of the organization.

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Scope of the study

The project is aimed at getting an exposure to “Experiential Learning” or "learning through

reflection on doing". The group has been assigned with the task of performing a one-on-one
interview session with HR Manager of “Yousuf Dewan Companies”. The intent of the project is to
get equipped with necessary information about operations, HR functions, organizational ethics,
culture and dynamics. This session truly explained us how a business is overseen both from
management and operations perspectives.

Introduction:

Yousuf Dewan Companies is an industrial group based in Pakistan. YDC have its route covered in
cement, textiles, sugar, fiber, automotive and trading. The group is owned by Dewan
Muhammad Yousuf Farooqui. A dynamic individual with proven leadership qualities, Dewan
Mohammad Yousuf Farooqui is the driving force behind the YDC’s major expansion and
diversification initiatives.

A graduate of the Government College of Commerce and Economics, Karachi, he joined the
family-run business at an early age. By the time he was in his twenties, he was responsible for
an independent industrial unit. His span of responsibilities continued to grow steadily,
culminating in his current responsibility for the entire group.

In March 23, 2005 his enormous contribution to the national economy was recognized in the
award of the 'Sitara-e-Imtiaz' (The Star of Excellence) by the President of Pakistan.

He is the founder & co-chief patron of the Pakistan Korea Business Forum, a member of Young
Presidents Organization (YPO), International Chamber of Commerce (ICC) and Pak France
Business Alliance.

From 1999 to 2003 he remained a Minister in the Sindh Provincial Government for Industries,

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Labor, Transport, Mines & Mineral Development, Local Government, and Housing & Town
Planning. He was also the Minister for Finance and Information, Government of Sindh.

The group is delivering in following segments with a brief description:

1. Automotive
 Dewan Faroque Motors Ltd.
 Dewan Automotive EngineeringLtd.
 Dewan Motors Private Ltd.
 Dewan Mushtaq Motor Company Private Ltd.
2. Fiber
 Dewan Salman Fiber Ltd.
3. Sugar& Distillery
 Dewan Sugar Mills Ltd.
 (Dewan Distillery Division)
4. Textile
 Dewan Textile Mills Ltd.
 Dewan Khalid Textile Mills Ltd.
 Dewan Mushtaq Textile Mills Ltd.
 Dewan Farooque Spinning Mills Ltd.
5. Cement
 Dewan Cement Ltd.
6. Trading
 Dewan Mushtaq Trade Ltd.

AUTOMOTIVE OPERATIONS:

The Automotive Operations of YDC comprise of Dewan Farooque Motors, Dewan Mushtaq
Motor Company and Dewan Motors. Having produced over a hundred thousand passenger
cars, light commercial and sport-utility vehicles, Dewan Farooque Motors emerged as a leading
manufacturer of vehicles. Dewan Mushtaq Motor Company and Dewan Motors too have made
their presence known with over ten thousand built-up vehicles sold.

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FIBER

Dewan Salman Fibre Limited is one of the largest Polyester Staple Fibre manufacturing
companies in Pakistan and is the flagship company of YDC. The production capacity of Dewan
Salman Fibre’s three polyester units is 540 tons per day. DSF has been instrumental in
developing textile yarn industry of the country by catering 45% feedstock needs of manmade
fibre. The company has the only Acrylic unit of Pakistan to fulfil the Acrylic fibre requirement of
the country. Surplus Acrylic fibre has been exported to various export destinations.

SUGAR AND ETHANOL

YDC decided to diversify its activities to other spheres and entered the sugar industry. Dewan
Sugar Mills Limited was established in 1987, with a sugar cane crushing capacity of 3,500 metric
tons per day that has been expanded to 9,000 metric tons/day. Dewan Distillery is a SBU of
Dewan Sugar Mills, which produces 125,000 litres of high quality food grade ethanol per day.
Dewan distillery is an export base unit, major destinations are Europe and Far East

TEXTILE

Dewan Textile Mills Limited, the first industrial unit, was set up in 1970 with a capacity of
25,080 spindles that has since been increased to 62,544 spindles & 3,000 Open End rotors and
TFO facility. YDC strengthened its footing in the textile sector by taking over another textile unit
in 1975, now known as Dewan Mushtaq Textile Mills Limited with an installed capacity of
25,776 spindles. Thereafter, another spinning unit Dewan Khalid Textile Mills Limited,
consisting of 25,536 spindles was added. In year 2006 Dewan Farooque Spinning Mills Limited
was established. This unit has a capacity of 28,800 spindles and is equipped with state of the art
Reiter Com4® Technology to cater to the requirements of high-end users.

CEMENT

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YDC entered the cement sector by acquiring Pakland Cement Limited and Saadi Cement Limited
in 2004. These companies were merged in September 2007. Dewan Cement Limited or DCL is
amongst Pakistan's largest manufacturers of cement with combined installed capacity of 2.9
million tons per annum. The company has two production facilities; one in southern Pakistan
near Karachi at Deh Dhando, Dhabeji , Sindh and the other in northern Pakistan near Kamilpur
Hattar Industrial Estate, District Hattar Khyber Pakhtoonkhwah. These plants provide a distinct
advantage to the selling activity both in the local as well as in the export markets. The northern
plant being close to the GT road covers Punjab, KPK, Azad Kashmir in the local market and
Afghanistan and India in the export Market. The southern plant covers Sindh and Baluchistan in
the local market and proximity to the ports at Karachi facilitate export to markets of Sri Lanka,
Africa and the Middle East.

TRADE

Dewan Mushtaq Trade Limited is the trading arm of YDC. The company was established in the
year 2005 and since then it is rapidly working towards developing a robust and sustainable
business portfolio of products and international partners. Achievement in the short span of
time is in itself a testament to DMTL’s aggressive growth strategy. DMTL’s operating philosophy
is to work through selected international partners of repute, enabling a highly focused and
target oriented approach towards marketing & selling of partner products. DMTL currently has
five major SBUs in its domain, Paints and Construction, Chemicals, Bulk Commodities, Ethanol
Exports and Petrochemicals.

Vision& Mission Statements:

VISION STATEMENT
“To lead each sector that they operate in, creating value for all their stakeholders. To diversify
with sustainable growth in sharp focus, based on a corporate culture that seeks self-
responsibility, delights in diversity and incentivizes integrity.”

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 MISSION STATEMENT
“While seeking this leadership position, we operate in a manner that contributes positively to
the company, community and the country in an environmentally friendly and sustainable
manner.”

Brief History

 1916 - A legacy begins.

 1970 - Industrialization starts with the establishment of Dewan Textile Mills Ltd.
 1987 - Dewan Sugar Mills Ltd. is founded.
 1990 - The largest industrial undertaking Dewan Salman Fibre Ltd, a joint venture with Mitsubishi
of Japan and Sam Yang of Korea is founded.
 1998 - Having established itself in the textile, sugar and man-made fibre sectors, Dewan Farooque
Motors Ltd. heralds the arrival in the automobile sector.
 2003 - Yousuf Dewan is selected by BMW group for the exclusive importer-ship in Pakistan.
 2004 - Mitsubishi Motors selects Yousuf Dewan as the partner of choice and appoints it as its sole
distributor for Mitsubishi vehicles in Pakistan.
 2004 - Yousuf Dewan ventures into the cement sector with its acquisition of two cement plants;
Pakland Cement and Saadi Cement, renamed Dewan Cement Ltd.
 2005 - Dewan Farooque Motors Ltd. celebrates the rollout of the 50,000th vehicle produced at
its state-of-the-art facility at Sujawal.

Among all these segments of the Group we are going to take into consideration one of the
company of YDC, which is Dewan Distillery.
Dewan Distillery Division:
Dewan Distillery has a capacity to produce 125,000 liters/day Extra Neutral Ethyl Alcohol, using
sugar cane molasses as a raw material by the use of latest French Technology. The plant is
controlled by DCS control system and was commissioned in Nov. 2004.
The distillery plant consists of four major sections:
1. Fermentation

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2. Distillation
3. Effluent Treatment Plant
4. Ethanol Dehydration Unit

Due to its operational sensitivity they run this plant according to standard compliances. In this
plant HSE is proactive. From last five years incident percentage is near to zero.

Due to its operational continuity, system is kept in updated phase through different procedures.

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HR Management Functions:

HR management of this group is all about increasing employee performance to their highest
level corresponding to their role in the organization.

This organization is made of people, HRM is all about acquiring services of people, developing
their skills, motivating them to the foremost level and making sure that they continue to
maintain their commitment towards the organization.

In short, HRM is concerned with the management of employees from recruitment to

retirement. Although there are many functions of human resource management, here is a list
of its major functions:

1. Job Analysis
2. Human Resource Planning & Recruiting
3. Employee Testing, Interview & Selection
4. Training and Development Of Employees
5. Performance Appraisal
6. Human Resource Management Strategy and Analysis
7. Ethics in HR and Employee Safety
8. Strategic Pay Plans and Pay for Performance

Job Analysis:

The procedure adopted for JOB ANALYSIS in the company is as follows:

 Job Analysis is the process of determining and reporting pertinent information relating
to the nature of a specific job.

 It is the determination of tasks which comprise the job and of the skills, knowledge,
abilities, and responsibilities required of the holder for successful job performance.

 It is a process of determining through observation and study, the pertinent information

relating to the nature of a specific job.

 The job analysis should “report the job as it exists at the time of the analysis, not as it
should exist, not as it existed in the past, and not as it exists in similar
establishments”.

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 Job Analysis process at Dewan Distillery
The analysis is made at Dewan through different methods.

Random Observation: The employer idenfied the problem through observation and
calculate how many workers are needed to meet the desired target.

Performance Evaluation: The job analysis is also made through analysing the trend
performance of each quarter and if the work is not up to the bench mark and employees is
facing problem to produce the required inventory, then supervisor raise this issue to human
resource department and ask them to hire required number of employees with desired skill
set.

Employee Feedback: Employees feedback for hiring is also taken into consideration in
meeting, if they ask more worker for specific department the human resource critically
analyse the gaps and provide number of workers to the concern department.

Human Resource Planning & Recruiting:

The procedure adopted for HRP in the company is as follows:

1. Once a manager has determined the types and numbers of employees required, he or
she analyzes these estimates in light of the current and anticipated human resources of
the organization.

2. This process involves a thorough analysis of presently employed personnel and forecast
of expected changes.

3. Skills inventory: Consolidated list of biographical and other information on all employees
in the organization.

4. Information that should be included in a skills inventory:

1. Personal data: age, gender, marital status

2. Skills: education, job experience, training

3. Special qualification: membership in professional groups, special achievements

4. Salary and job history: present and past salary, dates of raises, various jobs held

5. Company data: benefit plan data, retirement information, seniority

6. Capacity of individual: test scores on psychological and other tests, health

information
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 7. Special preferences of individual: geographic location, type of job

5. Furnishes a means to quickly and accurately evaluate the skills available within the
organization.

6. Aids in planning future employee training and management development programs and
in recruiting and selecting new employees.

7. Management inventory: Specialized expanded form of skills inventory for an

organization’s current management team; in addition to basic types of information, it
usually includes a brief assessment of past performance and potential for advancement.

8. Transfers and promotions, can be estimated by taking into account such factors as the
ages of individuals in specific jobs and the requirements of the organization.

9. Individuals with potential for promotion can and should be identified.

10. By combining the forecast for the human resources needed with the information from
the skills inventory and from anticipated changes, managers can make a reasonable
prediction of their net human resource requirements for a specified time period.

Recruitment Process
The procedure adopted for RECRUITING in the company is as follows:

1. The aim of recruitment is to attract qualified job candidates.

2. To avoid costs, the recruiting effort should be targeted solely at applicants who have the
right qualifications for the job.

Sources of Recruiting

3. Current employees.

4. Referrals from current employees.

5. Former employees.

6. Print and radio advertisements.

7. Internet advertising and career sites.

8. Customers.

9. Business Partners.

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Employee Testing, Interview & Selection:

The procedure adopted for EMPLOYEE TESTING, INTERVIEW & SELECTION in the company
is as follows:

 Application Forms.

 Ability Tests.

 Personality Tests.

 The Big Four factors:

1. Extroversion: The degree to which someone is talkative, sociable, active,

aggressive, and excitable.

2. Agreeableness: The degree to which someone is trusting, amiable, generous,

tolerant, honest, cooperative, and flexible.

3. Emotional stability: The degree to which someone is secure, calm, independent

and autonomous.

4. Openness to experience: The degree to which someone is intellectual,

philosophical, insightful, creative, artistic, and curious.

 The final step in the selection process is choosing one individual for the job, a value
judgment based on all of the information gathered in the previous steps.

 In this organization, the human resource department handles the completion of

application forms, conducts preliminary interviews, testing, and reference checking, and
arranges for final interview with Business Head.

 The responsibility for making the final selection decision is assigned to Business Head of
organization.

 Such a system relieves the Business Head of the time-consuming responsibilities of

screening out unqualified and uninterested applicant.

 The final approval is being given by the CEO of the company.

 The contractual employees are hired by the 3rd party contractors.

 Once employees have completed his contractual period and confirmed by the company
then they adopted to the company payroll.

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Training & Developments of Employees

The company adopts following approach towards TRAINING & DEVELOPMENT:

1. The need or Competency Deficit for potential employee is identified via a thorough
assessment.

2. Specific training objectives are generated, Training Content and Training Plan
developed to achieve those objectives.

3. The criteria for assessing the training’s effectiveness are also based on the objectives
identified in the assessment phase.

4. Training approach vary by location, and type.

On-the-job training (OJT)

On-the-job training (OJT) approach, the trainee works in the actual work setting, usually
under the guidance of an experienced worker, supervisor, or trainer. The Company provide
on the job training to new employees mostly from operation and production department.

Job Rotation
Job Rotation allows employees to gain experience in different kinds of jobs in the
organization. It is often used to give future leadership a broad background.

Technical Training
The company provide number of technical training to their employees recently the
company send the team of R&D department to Kenya for international training.

BONSUCRO

It’s one the kind of technical training and very complex such as OSHA and ISO certification.
Bosucro certification is relate to decrease the environmental effects on sugar cane
production. The training include to setting standard for sugar cane production and
certification. Recently, the company sent their employees from multiple to Bangkok for
BONSUCRO training.

ISO 14000 Certification

The ISO 14000 is relate to environmental standards for the operation. The Dewan Distillery
has provided ISO 14000 training to their compliance department.

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Performance Appraisal:

The company has the following performance appraisal form in use on annual basis:

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Ethics in HR and Employee Safety
The Dewan group believe in ethical, justice and fair practices at workplace. The following are
some of the practices the company perform.

Equal Employment Opportunity

The company give equal opportunity to be a part of the company and don’t discriminate on
cast, race, religions and physical disability. For special employees company create ramps and
lifts

Workplace Aggression and Violence Handling

The workplace of the company is aggressive and have zero percent tolerance policies in some of
the case such as sexual harassment, inappropriate language at work. But company hand
workplace violence very carefully and provide room to employee for improvement.

Employees Termination

The Dewan Distillery handle employees very carefully. If the employees is not performing up to
mark, initially he is counselled by his immediate supervisor and in most cases issue is resolved
there, secondly, if employees is still below his desired target he is guided and motivate by
human resource and in some cases light warning is given to employee.At end if employees is
not willing to perform job and his performance continuously decline, he is given a 1 month
notice of termination and sometime in extend to 3 months before termination and at final
stage he is terminated from his services

Exit Interview

The exit interview is compulsorily taken from the resigning staff. The employees’ issue and
problem with the company are carefully analyze and actual reason for resignation is extracted.
The company counsel and tried to retain the employee if his problem can be resolved possibly.
Employee’s suggestion and feedback is highly appreciated at the company took measures for
improvement where necessary.

Employees Safety

The company takes many measure to make employee health and safety. The following are
some precautions which company make sure while employees are at work.

 No Smoking during work hours

 Distillery Costume
 Lab Technician Uniform
 Helmet is compulsory on field
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  Fire Drill training is given to all employees periodically
 Fire fighting

ISO 9001:2015
The company is ISO 9001:2015 certified which relate to the quality standard of the products
and help company to meet the standard and provide consistent quality products to customers

BonSucro
The company is in process of becoming the member is BonSucro International which related
the sustainable production of Sugar cane and meet the standard. It is specific for sugar
manufacturing companies.

Pay Plans and Pay for Performance

Salary and Benefits

The company give market compatible salary to all worker according to grade and
designation of employees.

Annual Incentive and Bonus

Sales Commission

1% to 2% commission of the total sales of individual is given to the sales staff on

the company

Organizational Structure and Culture:

The organization believes in “decentralized” organizational structure as they have several

individuals responsible for making business decisions and running the business. The group of
companies totally relies on a friendly team environment at different levels in the business.
However, individuals at each level in the business do have some autonomy to make business
decisions as well. According the HR manager, all the subsidiaries of the group strongly believes
on empowerment of the employees to foster and grow. The HR manager says that they all have
certain objectives and every individual has to align his objective with the company goals.

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The organization also believes in creating Leaders through its ranks and files by providing
conducive environment for professionals. Off the job trainings for Leadership roles have also
been provided to its potential employees.

Oganogram of The Company

Corporate Social Responsibility (CSR):

Yousuf Dewan Companies is involved in numerous philanthropic ventures with a focus on

health and education. The donation of four hundred bed medical facilities to the Sindh Institute
of Urology and Transplantation (SIUT) was a major initiative. Currently the organization is
involved in developing education and health facilities in rural areas nationally in proximity to

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their business presence. These facilities are especially focused on Interior Sindh due to relative
inequity in terms of coverage and availability.

Education:

Schools at all YDC plant locations are providing the highest level of education at par with
modern urban schools. These schools are recognized by the government. Education is provided
free of cost together with uniforms and meals. Besides these, YDC has adopted a large number
of schools that were in a dilapidated condition in rural areas of Sindh. These were renovated
and are now providing free educational facilities to the economically disadvantaged localities.

Healthcare:

Free medical services are provided for the needy and impoverished people living in rural and
remote areas of urban and Interior Sindh like Hyderabad, Mirpurkhas, Thatta, Sukkur, Badin
and Sujawal. These facilities are equipped with modern medical equipment and staffed by
professionals.

Recently, the company has arranged a free Eye Camp at Sujawal and a camp for blood donation
at their head office in Karachi.

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Problems:

Following problems have been identified:

 There is a communication and functional gap between HR department and Plant staff which
results in in-effective functioning of HR related activities within the organization.
 Performance appraisal system lacks feedback of the employees.
 Proper career path plan for employees is missing.
 Lack of orientation for new employees.

Recommendation:

Develop Communication System

HR department should restructure and align themselves with plant team upto the Line-Managers level.
This will improve overall functionality of HR department in executing its functions.

Upgraded Appraisal System

Performance appraisal system needs up-gradation to have added feedback of the employee.

Employee Career Path

HR should develop proper career path plan for its employees.

Proper Orientation
There should be proper orientation activity for the new employees at the time of their joining the
organization. The employees must be familiarized with company policies, procedures and norms so he
can better understand the company. The new employees should be introduced on the work floor so he
could acquainted with other employees and don’t feel alien at work.

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