MILLAT EQUIPMENT LIMITED

wVirtual University of Pakistan

Internship Report

On

Human Resource Management of

A REPORT SUBMITTED TO
THE DEPARTMENT OF ECONOMICS AND BUSINESS ADMINISTRATION, VIRTUAL
UNIVERSITY OF PAKISTAN, RAIWIND ROAD, LAHORE
(IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF
MASTERS OF BUSINESS ADMINISTRATION)

Submitted by:Tayyaba Shahzadi

Student ID: MC190200797
Course: MBA (HRM)
Session: 2019-2022
Submission date: 04-02-2021
Submitted to

Talha Subhan

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3. Dedication
I dedicate my report to my esteemed teachers who motivate me, teach me and help me during
making this report. I feel highly honored to present and express my respect and gratitude to my
respected teachers whose behavior is always encouraging and sympathetic.

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4. Acknowledgement
All praises to Almighty Allah, the one and only, the Merciful, Beneficent and Compassionate.
Billions of Darood-o-Salam upon Muhammad (S.A.W), The Last Prophet of Allah who is the savior
of humanity.

I have great sense of gratitude for the most Beneficent and Merciful Allah Subhana Ta’ala who has
always helped me in all matters of life and shows me the right way. I tried but Allah rewarded me
more than my expectation and struggle.

I am pleased to acknowledge the help which I receive in writing this report so, I express
special thanks to the following person.

Miss Ambreen and Mr. Auwn

The last of my acknowledgement is due to my beloved parents and my well-wishers, whose
sacrifices and cooperation made it all of this that I have done. Above all thanks to my friends and
relatives who always encourages me to prepare myself to be honest and efficient in my academic
and professional career all the relevant things I have tried our best in order to serve every objective
of this report.I would like to thank my supervisor as well for guiding me with the completion of this
report and keeping me under their supervision and providing me all the necessary information which
has helped me in the completion of this report.

At last, I express my deepest gratitude to all those who contributed directly or indirectly to bring this
report to this final format, because I would never have been able to achieve this by myself.

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5. Executive Summary
All information I have collected through my internet search in writing this report is provided:

The purpose of this report is to have the general knowledge about the organizational working and
how the human resource division of an organization operates and coordinates its activities to ensure
smooth functioning of the organization at all levels by ensuring right numbers of people are
available at the right time to do the right job. For this purpose I selected the Millat Equipment ltd.
The study of the functions of HR department is the main purpose of this analysis report. It is also
meant for finding the weaknesses and strengths and then giving suggestions for improvement.

The report starts with an organization profile of Millat Equipment giving its background, mission,
vision, its products and services, the hierarchy and organogram of the organization. The project
encompasses introduction to the topic, recruitment, selection, training and development. I have tried
my best to provide all possible information about the operation and functions and tasks about the
human resource department of Millat Equipment ltd in brief and comprehensive form.

I have gathered information about all functions of HR department of the organization e.g.
human resource planning, recruitment and selection, performance management, learning and
development, career planning, function evaluation, rewards, industrial relations, employee
participation and communication, health and safety, personal wellbeing and administrative
responsibilities. All the Services which are provided by Millat Equipment ltd to their customer has
also been explained and discussed in detail.

This report described the internal framework of the working of the Millat Equipment ltd. In
the report I also discuss about the policies of the organization and objectives. The hazards and the
problems faced or found in the Millat Equipment ltd are in its promotional and bounce. The report
shows the Critical and SWOT analysis of the Millat Equipment ltd. It also includes some
recommendations/suggestions for Millat Equipment ltd followed by findings and recommendation
on critical factors regarding Human Resource Management of Millat Equipment. Finally, there is the
conclusion followed by references. During the compilation of this report, I relied mainly on the
primary data. The tools used for collection of primary data is research and observation that played a
vital role as a source of collecting necessary data.

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6. Table Of Contents

Dedication ........................................................................................................................................
Acknowledgement ............................................................................................................................

Executive Summary ..........................................................................................................................

1. Introduction to the industry ......................................................................................................

2. OVERVIEW OF MILLAT EQUIPMENT LTD ...................................................................................
History ..........................................................................................................................................
INTRODUCTION TO MILLAT EQUIPMENT LIMITED ......................................................................
POLICY OF THE MILLAT EQUIPMENT LTD ....................................................................................
COMPETITOR ..............................................................................................................................
BUSINESS VOLUME .....................................................................................................................
PRODUCT LINE ............................................................................................................................
3. ORGANIZATION STRUCTURE ....................................................................................................
Organizational Hierarchy Chart ..................................................................................................
Comments on the organizational structure…………………………………………………………………………………..
NUMBER OF EMPLOYEES .........................................................................................................
MAIN OFFICES .............................................................................................................................
INTRODUCTION TO DEPARTMENT ..............................................................................................
ORGANIZATION STRUCTURE .......................................................................................................
Analysis of HRM Functions of the organization……………………………………………..
a) Human resource planning and forecasting
Human resource planning Process……………………………………………………………….
Forecasting HR requirements …………………………………………………………………..
Methods to forecast HR needs ……………………………………………………………
b) Employee recruitment & selection
Sources of candidates......................................................................................................
Internal sources ...............................................................................................................
External sources..............................................................................................................
Employment selection process...........................................................................................
c) Training & development
Training need assessment ................................................................................................
Employee development.................................................................................................
d) Performance Management
Setting Performance Standards and Expectations ……………………………………
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How performance reports are written …………………………………………………..

e) Employee Compensation & benefits
Type of compensation &benefits …………………………………………………………….
f) Organizational Career Management
Employee job changes ……………………………………………………………………..
Job changes with the organization ……………………………………………………………..
Promotion ………………………………………………………………………………………
Transfer …………………………………………………………………………………………
Demotion …………………………………………………………………………………
Separations ……………………………………………………………………………………..
Layoff ……………………………………………………………………………………
Termination ………………………………………………………………………………….
Resignation……………………………………………………………………………………..
Retirement ………………………………………………………………………….......
g) Labor management relations

Critical Analysis ...........................................................................................................................

PEST Analysis …………………………………………………………………………………………………………………………..
Political …………………………………………………………………………………………………………………………………
Economic …………………………………………………………………………………………………………………………………..
Social ………………………………………………………………………………………………………………………………………..
Technological ……………………………………………………………………………………………………………………………
SWOT Analysis …………………………………………………………………………………………………………………………
STRENGTHS ..................................................................................................................................
WEAKNESSES ..............................................................................................................................
OPPORTUNITIES ............................................................................................................................
THREATS .....................................................................................................................................
6. CONCLUSION ...........................................................................................................................
7. RECOMMENDATION ...............................................................................................................
8. REFERENCE & SOURCES USED ..............................................................................................
9. ANNEXES .............................................................................................................................

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OVERVIEW OF THE ORGANIZATION

Introduction:
It is the authorized assembler and manufacturer of Massey Ferguson tractors in Pakistan. In facilities
were created in Karachi to assemble tractors from semi-knocked-down kits. In operations were
shifted from Karachi to Lahore. In the Government decided on indigenization of the tractors and
entrusted this task to Pakistan Tractor Corporation. Pakistan Tractor Corporation transferred this role
of indigenization in to Millat Tractors Limited. In just one year, the company took a giant step
towards self-sufficiency by setting up the first engine assembly plant in Pakistan. Unsophisticated
manufacturing facilities for the machining of intricate components were set up. These were
previously not available in Pakistan. Currently, critical components like the engine block, sump,
transmission case, axle housing, hydraulic lift cover, front axle support and center housing are all
being machined successfully in-house at Millat Tractors from locally sourced castings. In the
company was privatized, and Millat Tractors plant started its in-house production as a MILLAT
EQUIPMENT LIMITED. The establishment of this modern plant not only increased production
capacity to 16, tractors per year on a single-shift basis. In the financial year, production shot up to
42, tractors, the highest sales of tractors ever in Pakistan for any company at the time. During the
fiscal year Millat Tractors Limited produced and sold over 42, tractors. Automotive industry
Transport in Pakistan Economy. Massey Ferguson Tractor and equipment manufacturers of Pakistan
Manufacturing companies based in Lahore Vehicle manufacturing companies established in
Companies listed on the Pakistan Stock Exchange Formerly government-owned companies of
Pakistan Pakistani brands.Adam Motors DaehanDewan Nexus. Companies of the KSE Index.
Categories. Massey Ferguson Tractor manufacturers of Pakistan Manufacturing companies based in
Lahore Vehicle manufacturing companies established in Companies listed on the Pakistan Stock
Exchange Formerly government-owned companies of Pakistan Pakistani brands Pakistani
companies established in Namespaces Article.

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7. OVERVIEW OF MILLAT EQUIPMENT LTD

History:
Millat groups Ltd was initially started as Rana Tractors and Equipment Limited to import and
market of tractors. In 1965, facilities were created in Karachi to assemble tractors from
semiknocked-down kits. In 1967, operations were shifted from Karachi to Lahore. In 1972, under
the Zulfiqar Ali Bhutto, the company was nationalized and started assembling and marketing tractors
on behalf of the Pakistan Tractor Corporation (PTC).

In 1980, the Government decided on indigenization of the tractors and entrusted this task to
Pakistan Tractor Corporation. Pakistan Tractor Corporation transferred this role of indigenization in
1981 to Millat Tractors Limited. In just one year, the company took a giant step towards self-
sufficiency by setting up the first engine assembly plant in Pakistan. In 1984, sophisticated
manufacturing facilities for the machining of intricate components were set up. In 1992, the
company was privatized, and Millat Tractors plant started its in-house production.

Millat Equipment Limited is an associated Company and was incorporated in 1993 as a

private limited Company under the Companies Ordinance, 1984, and was converted in to unquoted
Public Limited Company on April 20, 2004. The Company is engaged in the business of
manufacturing of automotive, agricultural and industrial vehicles, parts and components thereof.
Millat Equipment Limited is an associated Company and was incorporated in 1993 as a private
limited Company under the Companies Ordinance, 1984, and was converted in to unquoted Public
Limited Company on April 20, 2004. The Company is engaged in the business of manufacturing of
automotive, agricultural and industrial vehicles, parts and components thereof.

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Vision
Aspired to reach and sustain

At ultimate heights of value and

Excellence in engineering.

Mission
To be a preferred choice for customers and suppliers, competing in the domestic and overseas
markets by continuously delivering value on a long term basis through a high performance team
driven by innovation and adherence to Health, Safety and Environmental standards benefiting all
stake holders.

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Core Values:
 Our first need is clients.
 We center on proficient morals.
 We keep up quality at all levels.
 We trust in being a responsible corporate culture.
 We encourage participative administration.
Objectives:
The objectives for which the bank is established as follows:
 To continue, execute, embrace and direct the matter of banking in all branches.
 Full execution and usage of the Bank's greatness program which means to give
administrations to clients.
 To carry on Commercial as lenders, advertisers, entrepreneurs, budgetary and
monitory operators, concessionaires and representatives, managing in return,
protections and all benevolent trade banking and so on.
INTRODUCTION TO MILLAT EQUIPMENT LIMITED
Millat Equipment Limited (MEL) is a part of Millat Group, comprising of three other companies,
Millat Tractors Limited (MTL), Bolan Castings Limited (BCL) and Millat Industrial Products
(MIPL). Millat Equipment Limited is one of the leading manufacturing organizations in Pakistan
producing transmission gears. The company acquired a Gear manufacturing setup from M/S AGCO
LIMITED – UK (owners of the Massey Ferguson brand of tractors) with and understanding to buy
back the transmission components after meeting the local requirement of AGCO Licensee in
Pakistan – (M/S Millat Tractors Limited) M/S AGCO Limited provides all the technical support
regarding products design, developments, specifications, and standards to produce world class
quality components. Millat Equipment Limited is equipped with complete in-house gear
manufacturing facility supported by state of the art inspection and testing equipment to assure
quality as per standards. Our modern manufacturing facility is located at 10 KM, Raiwind Road,
Lahore, Pakistan.

Corporate objective:

Millat Equipment Limited is one of Pakistan’s leading manufacturing organizations, producing high
quality transmission components and automotive solutions. Their objective to equipped with
complete in-house gear manufacturing capabilities, supported by state-of-theart inspection and
testing equipment, a specialist heat treatment facility and metallurgical lab.

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MEL has built up a solid reputation for quality, service and reliability, and for supplying products
that meet the demanding requirements of the gear industry. MEL is also investing in green energy
with its future solar energy system project, which will cater for 25 per cent of
MEL’s energy needs. MEL developed a strong dealer network at group level in the country, and we
also now boast export clientele in countries such as Turkey, India, Poland and UK.

Market Standing:

MEL finds itself moving forward with its efforts to expand its own capabilities, while also exerting
fresh efforts to boost its export growth. Within our local market, they are beginning to make efforts
towards targeting new sectors such as the aftercare market for tractors and similar vehicles, as they
believe there is a big opportunity for a company with the expertise of

MEL to make good ground. In terms of export program, they are actively pursuing more orders from
customers outside of Pakistan

POLICY OF THE MILLAT EQUIPMENT LTD

MEL policy is manufacture and deliver quality product to meet or exceed customer expectation on
time and all times, through continual improvement of their processes, equipment and manpower
skills.

Quality policy:

We will pursue and continuously improve our quality management systems so as to consistently
meet the expectations of our customers and other stakeholders, operate safely and encourage our
employees to develop and grow.

• Commitment to provide high quality gears and parts

• Maintain and continuous improve quality

• Training of manpower and acquisition of latest technology

• Market leader and prosperity for all

Safety policy:

• All the employees have been provided safety equipment during performance of their duties.

• An up graded firefighting system has been installed to cope with any mishap.

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• All machinery has made for the availability of filtered drinking water for the employees

• All the employees ware mask in factory and check their temperature.

• All the employees are insured under group life insurance scheme.

Health policy:

All the employees are going medically checked periodically through the company panel hospitals to
diagnose disease if any. In case of someone is found suffering from some disease the company
provides him medical treatment at its own express or through insurance company.

Environment policy:

The company has a separate horticulture department to make the environment pleasant green and full
of flower. The company also participate various competitions on horticulture arranged by
government and other institutions.

BUSINESS VOLUME
Millat Equipment Limited is a Public Limited Non Listed Company. Company Enjoys the Status of
Economically Significant Company (ESC). The Millat Equipment Limited seven board of directors.
There are 440 shareholders in a company in which 425 public shareholders. Dividend distribution to
the Company's shareholders is recognized as a liability in the period in which thedividends are
approved.

PRODUCT LINE:
MEL is equipped for manufacturing of broad range of Transmission Shafts, Spur Gears, Helical
Gears, Spiral & Straight Bevel Gears and sub-assemblies, like Hydraulic Pump. Almost all
commercial teeth cutting methodologies like Gear Hobbling, Shaping, Broaching, Shaving, Tooth
Rounding & Chamfering for Cylindrical Gears and Gleason Technology for Straight & Spiral Bevel
Gears are used in MEL.
NUMBER OF EMPLOYEES:
There were 148 of employees as on June 30, 2019 compared to 146 employees as on June 30, 2018.

HEAD OFFICE ADDRESS:

 The registered o ce of the Company is situated at Sheikhupura Road, Lahore.

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 The manufacturing facility of the Company is situated at 10 km Raiwind Road, HEAT &
TREATMENT DEPARTMENT

Competitors:
Millat Equipment has faced a very strong competition not only in Manufacturers of transmission
gears & shafts and assembly components but in agriculture implements as well. In tractors the major
competitor is Al-Ghazi Tractors Limited and in agricultural implements all the local manufacturers
are its competitors. There are no pure monopoliesin the world. Every organization, whether big or
small, has competition and competitors.
So the Millat Equipment is keeping a constant check on their competitors. The products offered must
also be better and cheaper than those of the competition.

Millat Equipment competitors are the following:

Siddique brothers (pvt.) Ltd.

Pakistan association of automotive parts and accessories manufacturers
Fit Parts
Hinopak motors limited
gandhara industries limited
auvitronics limited
ravi autos sundar (pvt.) Limited
razi sons (pvt.) Limited
agriauto industries limited

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8. ORGANIZATION STRUCTURE
Organizational Hierarchy Chart:

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Comments on the organizational structure:

Millat Equipment Limited is a subsidiary of the Millat Tractors Limited. The Company is engaged
in the business of manufacturing and sales of vehicular, industrial and domestic batteries.
www.millatbatteries.com
The Company is engaged in the business of manufacturing of automotive, agricultural and industrial
vehicles, parts and components thereof. The Company undertakes every new role with enthusiasm
and in the spirit of national development and proved its engineering capabilities by surprising the
deletion targets set by the Government. To maintain its leadership role in manufacturing in the
country, MEL continues to look toward future, to identify and exploit new opportunities and to
consolidate existing ones. 
 In my opinion an organization has to develop proper and effective performance appraisal system to
improve the performance of their employees and company as well. An organization has to choose a
transformational leader so as to accelerate the performance towards goal achievement. MEL is
Pakistan’s leading engineering concern in automobile sector & has a history that spans almost half a
century. Millat Equipment Limited is market leading industry of agricultural tractors & holds above
50% market share.
9. Analysis of HRM Functions of the organization:
a. Human resource planning and forecasting:
Strategic HR Planning:
Strategic HR planning is defined as:

“Integrating human resource management strategies and systems to achieve the overall
mission, strategies, and success of the firm while meeting the needs of employees and other
stakeholders.”
HR planning predicts the future HR management needs of the organization after analyzing the
organization's current human resources, the external labor market and the future HR environment that
18 the organization will be operating in. The analysis of HR management issues external to the
organization and developing scenarios about the future are what distinguishes strategic planning from
operational planning.
The overall purpose of strategic HR planning is to:
 Ensure ample human resources to meet the strategic goals and operational plans of the organization
- the right people with the right skills at the right time

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 Keep up with social, economic, legislative and technological trends that impact on human resources
in.
 Remain flexible so that organization can manage change if the future is different than anticipated.
Human resource planning process:
HR planning process has four steps:
 Assessing the current HR capacity
 Forecasting HR requirements
 Gap analysis
 Developing HR strategies to support organizational strategies
Forecasting HR requirements:
The next step is to forecast HR needs for the future based on the strategic goals of the organization.
Realistic forecasting of human resources involves estimating both demand and supply. Questions to
be answered include:
 How many staff will be required to achieve the strategic goals of the organization?
 What jobs will need to be filled?
 What skill sets will people need? When forecasting demands for HR, challenges faced in external
environment has to be also considered such as economy, competition etc.
Methods to forecast HR needs:
There are many techniques developed to forecast the needs of human resources.
There are several techniques use for forecasting like Managerial Judgment, Trend Analysis, Ratio
Analysis, Scatter Plot, Computerized Forecast, Work Study Technique, Delphi technique, Regression
Analysis and Econometric Models.
b.Employee recruitment & selection:
Recruitment refers to the process where potential applicants are searched for, and then encouraged
to apply for an actual or anticipated vacancy.

Recruitment and Selection is an important operation in HRM, designed to maximize employee

strength in order to meet the employer's strategic goals and objectives. It is a process of sourcing,
screening, shortlisting and selecting the right candidates for the required vacant positions.

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Information about the role:

 Job title
 Purpose of the position
 High level overview of responsibilities
 Work location and travel requirements (if any)
 Requirements including experience, qualifications, skills and personal attributes
 The salary and benefits associated with the position (may say the salary is dependent on
experience.
Information about the organization
This is a key part of attracting the candidate to the position and it helps the candidate understand the
mission of the organization and its culture. It includes:
 A brief description of the organization.
 Why the organization is a good place to work.
 Opportunities for development and career progression
Types of recruitment:
Internal recruitment:
Internal recruitment gives existing employees and volunteers the prospect to apply for the job
opening. It is linked to succession planning and career development. Internal recruitment can include
promotions to a higher level position, and also lateral moves to a same level position.
Benefits:
 Management already has a good idea of the employee’s capabilities
 Reduces the time and costs of recruitment.
 Reduces the amount of time necessary to orient the person to the new position.

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 Supports positive morale and retention by signaling the possibility of internal progression.
Disadvantages:
If used in isolation, provides a limited number of people to select from.
 Reduces the opportunity for increasing diversity within organization.
 Employees that apply for the position and are not selected may be disgruntled.
External Recruitment:
Print advertisements may appear in national or local newspapers, bulletins, professional journals, or
magazines.
Benefits:
 A large audience can be reached in a specific geographic area.
 A large audience with specialized skills can be reached.
Disadvantages:
 If the ad is general, it may generate a significant number of applications from unqualified
candidates.
 There is a wide range of costs involved, some can be expensive
 Professional publications may not be published frequently which can lead to increased
recruiting timeframes.
Selection:
Itis a process of hiringemployees among the shortlisted candidates and providing them a job in the
organization.The most common method of selection for all positions include an interview followed
by a reference check.
Employment selection process:

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Conducting the interviews:

The place of interview also has to be carefully designed. An appropriate environment has to be set
up. In conducting interviews. It is important to make the candidate feel relaxed and comfortable as a
candidate under stress will not reveal his/her full potential.
Sources of candidates:
 Internal sources
 External sources

Internal Sources:

Best employees can be found within the organization. When a vacancy arises in the organization, it
may be given to an employee who is already on the pay-roll. Internal sources include promotion,
transfer and in certain cases demotion. When a higher post is given to a deserving employee, it
motivates all other employees of the organization to work hard. The employees can be informed of
such a vacancy by internal advertisement.

External Sources:

All organizations have to use external sources for recruitment to higher positions when existing

employees are not suitable. More persons are needed when expansions are undertaken. External

sources include advertisement, employment exchanges, educational institutions, recommendation of

existing employees, factory gates, casual callers, central application file (Data banks), labor unions,

labor contractors and former employees.

Training & development:

Training need assessment:

Training Needs Assessment (TNA) is the method of determining if a training need exists and, if it
does, what training is required to fill the gap. TNA seeks to identify accurately the levels of the
present situation in the target surveys, interview, observation, secondary data and/or workshop. The
gap between the present status and desired status may indicate problems that in turn can be translated
into a training need.
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Employee development:
Some development of an individual’s abilities can take place on the job. We will review several
methods, three popular on-the-job techniques

1) Job rotation
2) Assistant-to position
3) Committee assignments
And three off-the jobs methods:
1) Lecturer courses and seminars
2) Simulation exercise
3) Outdoor training
Performance Appraisal:
Employee needs to maintain their performance and ensure good customer satisfaction. The appraisal
process therefore involves.
Steps in Appraising Performance:
 Define the job
 Appraise performances
 Provide feedback
d. Performance management:

Setting Performance Standards and Expectations:

The performance standard is the level of performance that defines what is acceptable and what is not
acceptable. For example, take sales per week. The lowest would be zero sales. The highest might be 100
units per week. Now let’s say the performance standard is 40 units per week. Higher than that, and the
salesperson is doing well. Lower than that and the salesperson’s performance is not acceptable.
As long as everyone knows the standard, then expectations about performance are clear.

Expectations need to be clear and thus set an objective basis for review.

Standards should match job as it is now – they can be altered and changed over time
The standards they are setting match the current person in the current job. When someone is new the
standard should be set accordingly and then changed when they get up to speed.

 Set quantitative and qualitative standards

Quantitative standards relate to things that can be counted – amounts, errors, time, cost, percentage of
visits, number of complaints, output etc.

Qualitative standards - which relate to how well something has been done. Not everything can be
counted. For example how well someone deals with a customer, the quality of the service provided.

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How performance reports are written:

A performance report is a valuable business tool. It allows you to document and track employees'
performances. It is important to write these reports carefully, as they can be catalysts to encourage
more positive or negative behavior from employees. A well-written performance report combines
information, analysis, honesty and tact.

It is important to keep notes on employees prior to writing the report and then pull information
from those notes in order to compile the report.Write about behaviors that are specifically related
to the work being done. Work-related behaviors include interactions with colleagues, attention to
detail, quality of paperwork, overall attitude and punctuality.

Write the report when you are in a positive frame of mind. Be sure to review the report at least
several hours after writing it in order to catch any possible revisions that need to be
made.Encourage employees to communicate with you about a report once they have received it if
they so desire. Use the analysis as a chance to collaborate together positively toward personal
improvement, as well as improvement for the company as a whole.The exceptional employee
needs his pat on the back and the feeling that his efforts are recognized and appreciated in order to
continue the exemplary work .

Put your comments on paper and describe the personal attributes of the person you are analyzing.
Use the material gathered for starters. Include items such as how he gets along with supervisors
and fellow workers. Think about whether he is pleasant to be around. Mention his ability to be
involved in teamwork and his attitude toward suggestions and criticism. Check that he follows the
policies and procedures of the company, meets deadlines and performs an ample volume of work.

Arrange for a post write-up meeting with the employee and discuss the items in his report. Discuss
with him his possible goals for the future and how he can make an excellent performance even
better. Consider rewards for the exceptional performance such as a salary increase, possibility of
promotion or simply personal satisfaction for being recognized for his contribution to the job.

e. Employee Compensation & benefits:

Compensation is the human resource management function that deals with every type of reward
individuals receives in exchange for performing organizational tasks. This includes:
 Direct financial compensation consisting of pay received in the form of wages, salaries,
bonuses and commissions provided at regular and consistent intervals
 Indirect financial compensation including all financial rewards that are not included in direct
compensation and understood to form part of the social contract between the employer and
employee such as benefits, leaves, retirement plans, education, and employee services
 Non-financial compensation referring to topics such as career development and advancement
opportunities, opportunities for recognition, as well as work environment and conditions.

Benefits:
Pension plans:
Pension plans are usually classified as either defined benefit or defined contribution according to
how the payments are determined.

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 A defined benefit plan guarantees a predictable monthly payment at retirement, calculated by using
an established formula with some combination of the employee’s salary, years of service and/or age.
 A defined contribution plan will provide a payment/payout at retirement that will be determined by
the amount of money contributed during the life of the plan and the performance of the stock or
investments used.
Provident fund:
Provident fund is a fund that provides benefits to the employees of a company (who are members of
the fund), upon termination of their employment. Both the employees and the employer are required
to make contributions to the fund in accordance with the predetermined rates. To become eligible for
membership of the fund, a worker must have completed a number of year’s continuous service in the
organization. The employees have to contribute at a certain rate of the basic wage, dearness
allowance and retaining allowances. Similarly, employers also contribute at the same rate.
Gratuity:
Gratuity is a lump sum payment made to the employees based on the duration of their total service.
The gratuity benefit is payable on cessation of employment (either by resignation, death, retirement
or termination, etc) by taking the last drawn salary as the basis for the calculation. However, in case
of death of the employee, his/her family members are given the amount. It is a form of gratitude
provided to the employees in monetary terms for the services rendered by them to the organization
and is an important form of social security benefit. Gratuity payment liability of the employer tends
to increase with an increase in the salary and tenure of employment.
Organizational Career Management:
Employee job changes:
An employer may change an employee's job duties, schedule or work location without the
employee's consent. In terms of notifications, some state and local predictive scheduling laws require
businesses to provide workers with advance notice of their schedules or face penalties.
When an employee is on leave, the act protects an employee's job duties, schedules and work
location by prohibiting changes that include the following: changing the essential functions of the job
in order to preclude the taking of leave, reducing hours available to work in order to avoid employee
eligibility, transferring the employee to an alternative position in order to discourage the employee
from taking leave or otherwise placing a hardship on the employee. 
Upon returning from leave employees must be reinstated to their job or an equivalent one. An
equivalent position is one that is virtually identical to the employee's former position in terms of pay,
benefits and working conditions, including privileges, perquisites and status. It must involve the

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same or substantially similar duties and responsibilities, which must entail substantially equivalent
skill, effort, responsibility and authority. 
Job changes with the organization:

Job changes can occur for a variety of reasons including promotion, reclassification, career
development and lateral moves.Your manager works with the local human resources manager or
representative to evaluate how the job duties have changed, select the appropriate job description
from the Job Description that is the best fit based on operational need and determine the appropriate
type of job change.

Promotion:A promotion is defined as a move from a job in a lower grade to a job in a higher grade
with different and/or increased level of responsibility.

Transfer:A transfer is a horizontal or lateral movement of an employee from one job, section,

department, shift, plant or position to another at the same or another place where his salary, status
and responsibility are the same.
Demotion: Employee demotion is the reverse of employee promotion. It is the act of downgrading
an individual's rank and status as a result of disciplinary action. This can be because of
an employee's work, behavior, violation of rules, etc.
Separations:Employee separation is a sensitive issue for any organization. ... An employee may
be separated as consequence of resignation, removal, death, permanent incapacity, discharge or
retirement. The employee may also be separated due to the expiration of an employment contract or
as part of downsizing of the workforce.
Layoff:A layoff is the termination of the employment status of a hired worker. This is an action
initiated by the employer. The former employee may no longer perform work related services or
collect wages. In some instances, a layoff is only a temporary suspension of employment, and at
other times it is permanent.
Retirement:Retirement refers to the time of life when one chooses to permanently leave the
workforce behind. The traditional retirement age is 65 in the United States and most other developed
countries, many of which have some kind of national pension or benefits system in place to
supplement retirees' incomes.
Resignation:A “resignation” occurs when an employee voluntarily informs HR or their manager that
they will stop working for our company.
Termination:Termination of employment refers to the end of an employee’s contract with a
company.An employee who is not working due to an illness, leave of absence, or temporary layoff is
still considered employed if the relationship with the employer has not been terminated formally with
a notice of termination.
Labor management relations:
The term “labor management relations” refers to interactions between employees, as represented by
labor unions, and their employers. Labor unions are organizations of employees in particular
industries, companies, or groups of industries or companies, who join together in order to further
worker’sindividual interests.

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MILLAT EQUIPMENT LIMITED

10) Critical Analysis:

Compensation and Benefits:
Compensation basically consists of direct and indirect compensation and Millat Equipment Limited
is very much concerned about both these types of compensation. They offer attractive package that is
in per with current market practice in similar sector. They also offer bonuses and yearly incremental.
They also have leave planning for employees consisting of different kind of leaves according to
employee needs.
Performance Evaluation:
The evaluation of employee’s performance of Millat Equipment is not properly done by the HR
division.
Service quality:
Service quality of MEL is commendable. It is very important for every organization serve its
customers so that it create a loyal customer base who will repeatedly buy its products and carry a
long time relationship with the company as well as work as a spoken person to promote the products
of the company to peers, friends, relatives, etc.
Work environment:
Everyone is cordial and helpful and cooperative. There is less internal conflict or politics at play
which is essential for conducting a productive working environment.
Attractive compensation policy:
Compensation package of Millat Equipment Limited is more attractive to hold qualified employee.
Under the direct and indirect compensation policy they offer all type of new compensation system.

Training and Development Policy:

Millat equipment limited should make a compelling preparing and improvement strategy. They
ought to likewise give preparing to the workers as per the enrollments of the association. Along
these lines, the staff individuals get the chance to hone their current aptitudes or improvement
particular expertise which thusly, will assist them with taking up some new jobs.
CUSTOMERS:
The main purpose for the existence of Millat Equipment is to satisfy the needs and wants of
its customers. Millat Equipment aims to please its customer and earn a profit in return. This is
why it has become increasingly important for Millat Equipment to listen to its customers and
value their feedback.
MEDIA:
Millat Equipment improved brand awareness–Social media allows it to promote their brand
to millions with one click of a button. By using social media Millat Equipment is increasing
the visibility of their brand to current and potential customers.
MICRO ENVIRONMEN OF MILLAT EQUIPMENT

The micro environment is the operating environment of the firm. This is because the
functioning of the micro environment has a direct and immediate bearing on thecompany.
They are more interlinked with the company than macro environmental factors. Let’s take a
look at some of the most important and common elements of the micro environment of Millat
Equipment. Following are usually found in Millat Equipment:

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MILLAT EQUIPMENT LIMITED

Employees

Suppliers Shareholders

Micro
Environment
of Millat
Equipment
Ltd.

Competitors Media

Customers

27
MILLAT EQUIPMENT LIMITED

Awards & Certifications:

Macro environment of Millat Equipment Limited:

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MILLAT EQUIPMENT LIMITED

Employees:
Employees or labor is one of the most important factors ofproductionfor Millat Equipment Ltd.
Human resources are a significant factor in the success (or failure) of Millat Equipment. Millat
Equipment has 148 employees that are correct employing people best suited for Millat Equipment
is of vital importance.
Millat Equipment paying a lot of focus on training and development of these employees is also
essential. If care is not taken in this matter the organization can never succeed, because
employees are the back bone of every organization.

11. PEST Analysis of whole macro environment of organization:

PEST analysis is a way of analyzing the key external factors that might influence our organization.It
helps us to understand the political, economic, social and technological changes that will shape our
business environment. It is part of an external analysis when conducting a strategic analysis or
doing market research and gives an overview of the different macro-environmental factors to be
taken into consideration. It is a strategic tool for understanding market growth or decline, business
position, potential and direction for operations.
Political:
Changes brought about by powerful bodies such as governments, the European Union (EU), Trade
union movement and other regulatory bodies. Political factors may also include goods and services
which the government aims to provide or be provided and those that the government does not want to
be provided. Political factors relate to how the government intervenes in the economy. Specifically,
political factors have areas including tax policy, labor law, environmental law, trade restrictions,
tariffs and political stability.
The political environment can impact Millat Equipment Ltd. in many ways. It could add a
risk factor and lead to a major loss. Millat Equipment should understand that the political
factors have the power to change results. It can also affect government policies at local to
federal level. Millat Equipment should be ready to deal with the local and international
outcomes of politics.
Below, is a list of political factors affecting Millat Equipment ltd:
 Bureaucracy
 Corruption level
 Freedom of the press
 Tariffs
 Trade controls
 Education Law
 Anti-trust law
 Employment law
 Discrimination law

Economic:
Economic climate, interest rates (which affect the cost of borrowing and potentially, company
profitability), skills shortages, consumer debt, demand for goods, import tariffs etc.
These factors can drastically affect how a business operates. Following are some economic factors

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MILLAT EQUIPMENT LIMITED

of Millat Equipment:
 interest rates
 tax rates
 law
 policies
 wages
 governmental activities
 Exchange rates
 Recession
 Inflation

Social: One parent families, an ageing population, consumer expectations, demographic changes,
immigrant workers, lifestyles, consumer attitudes to social environmental. Social factors include the
cultural aspects and health consciousness, population growth rate, age distribution, career attitudes
and emphasis on safety.
The key socio-cultural factors that have a major impact on the operation of the Millat
Equipment Ltd. are:
 Culture
 Language
 Religion
 Level of education
 Customer preferences
 The attitude of the society towards foreign goods and services

Technological: Developments in medicine, mobile phones, energy sources and the internet. These
can determine barriers to entry, minimum efficient production level and influence
the outsourcing decisions. Furthermore, technological shifts would affect costs, quality, and lead
to innovation.
Technological factors that can affect Mill Equipment are:
 The existence of 3D technology
 Computer calculation speed/power
 The ability of computers to create truly ‘random’ numbers
 Engine efficiency
 Internet connectivity
 Wireless charging
 Automation
 Security in cryptography

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MILLAT EQUIPMENT LIMITED

12. SWOT analysis of whole organization in the business sector:

STRENGTHS: The strengths of a company are the most important building blocks required for
growth to take place. The following are a few of the most prevalent strengths that Millat Equipment
Ltd has at the present time:
Transparency: For clear communication to the employees of the HR Practice in Millat Equipment,
they have a service rule book which they give to every employee. The guide articulates important
and covers all HR Practice followed by the organization. This is very helpful both for the employees
and the employer as it removes chances of misinterpretation, bias etc.
Recruitment: Their recruitment and selection policy is very strong. Millay Equipment recruits
talented candidates from the market through proper testing- written and interview. The written part
contains questionnaires that are of IBA standard which is a renowned education institution of our
country.
Training & development system: They arrange special training on their software also which they
use in the office to operate their system, which eventually becomes beneficial not only for the
employee but also for the organization, because if they do not know the exact procedure of carrying
out work in their system then that might affect them both the employee end into making mistake, and
as a result the reputation of the organization also might get hampered.
Weaknesses:
Inadequate human resources: The human resources are not sufficient in terms of its service
providing system. It has to maintain a number of formalities to recruit employees.

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MILLAT EQUIPMENT LIMITED

Human Resource Planning: There is not much Human Resource Planning at the Organization
except for an annual need assessment for required workforces.
Lack of Job Analysis: It is the important part of HR practice in an organization but not implanted in
Millat Equipment which means they are less informed about current market trends and that could
lead to loss of potential talents from their pool.
Capital:Their concept about mutual funds is vague and they have a very pessimistic notion on the
current negative performances of the closed-end mutual funds. The closed-end mutual funds are
performing poorly for the couple of years and almost all are trading under their face value.
Opportunities:
Recruitment:Most recruitment in here is through internal recruitment, they can spread the pool of
entry level employees through campus recruitment.
Expanded market: As new industries are coming into the market, capital market is being large
enough and long term financial demand is being created. The open ended mutual fund is a new
sector, so there are high possibilities of growth in this sector. Open ended mutual fund is a largely
untapped market, and Millat Equipment will be able to capture a large number of institutional clients
from competitors, as well as new clients.
Growing economy:Economic growth leads to increased revenue and profitability, which can create
some great opportunities for MTL such as financial advisors, shareholders or investors, and team
leadership
Threats:
Government Policy:
The changes of policy connected to the operation of finance companies might create an unfavorable
impact on the investment industry. The decision to withdraw the accounting practices accelerated
depreciation and extra shift depreciation has decreased the profitability of the Mutual Funds.
Lack of Motivation of Employees:
Sometimes the lack of motivation in employees can create a threat to the organization. Employees
may be overburdened with tasks that are not their core-competencies. As a result, the quality and
accuracy of deliverables duties may fall. Employee turnover may have a negative effect on the
overall performance of organization.
Tax changes:Business taxation affects a company costs. A rise in corporation tax has the same
effect as an increase in costs which can lead to raised price.

13. Conclusion:
From the above discussion it can conclude such a way that since human resource
management is a continuously practicing issue so it plays a significant role on organizations
overall performance. If an organization wants to gain full benefit from human resource
management. It should follow all the sections of HRM. As a small AMC few persons are
recruited for its operations and performances. But it will expand soon or later and then the
number of HR employee may not be enough to run the company. Committed and trustworthy
employees are the most significant factors to becoming an employer of choice, it is no
surprise that companies and organizations face significant challenges in developing energized
and engaged workforces. However, there is abundance of research to demonstrate that
increased employee commitment and trust in leadership can positively impact the company’s

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MILLAT EQUIPMENT LIMITED

bottom line. Millat Equipment as a whole can be considered as an ultimate organization

working in Pakistan that has dominated a large area of market with its policies and procedure
even after achieving a maturity state.

Therefore, we conclude that Millat Equipment ltd has going on concern and it will progress father
and have ability to overcome risks and prosper
14. Recommendations
The organization should practice proper Alliance Capital guideline. The purpose of Human Resource
Management is to improve the productive contribution of people.

 To get effective and efficient employee, the organization should arrange proper training and
development programs.

 The entire HR department should be well informed regarding the employment personal.

 The organization should provide well direct compensation as well as direct to its staffs.

 The management should have job evaluated salary structure, which is most competitive than other
organizations in the country.

 To evaluate employee’s performance; the management should follow promotion policy properly.

 In order to get competitive advantage and to deliver quality service, top management should try to
modify the services.

 Periodical performance appraisal and giving recognition and rewards to the qualified employees to
keep motivating them.

 Proper training needed for ensuring efficient performance of the employees.

 The management should create customer’s database and continuously informing the investors about
the available facilities or opportunities which will work to achieve twin goal at a time. One is direct
marketing and another is large pool of customer’s database.

 The job Analysis and job design should be prepared before the recruitment is done. By setting
the job description clarifies the tasks employee needs to carry on and benefits both Millat
Equipment Limited and the employee himself.

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MILLAT EQUIPMENT LIMITED

 They should increase the manpower of human resource planning policy to handle the regular
operation smoothly.

15. References & Sources used:

https://www.scribd.com/doc/52710359/Management-Analysis-of-Millat-Tractors-Ltd

http://www.scibd.com/doc/52710359/Managment-Analysis-of-Millat-Equipment-Ltd 

http://documents.tips/documents/millat-tractors-56ad3e146acd8.html

https://search.yahoo.com/search?

fr=mcafee&type=E210US91215G0&p=www.slideshare.met%2Fazlanchaudry

%2Fpresentation-on-internship-at-millat-Equipmentlimited-MEL

https://www.slideshare.net/malikafan/final-internship-report-76581980

https://en.wikipedia.org/wiki/Main_Page

https://www.millatgears.com/pdfs/MELaccounts2019.pdf

http://www.millatgroup.net/?page_id=446

16. Annexes:

Human Resource Management: Fisher, Schoenfeldt, Shaw 6th Ed

W. Griffin Ricka (2004), Management, 7th edition, Haughton Mifflin Company, Boston, New York.

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