Human resources and training development of Engro Food

Engro Foods (Pvt.) Limited (EFL) has been established in 2005 as part of a diversification process at the Engro Group. The plant located at Sukkur on 23 acre land, has the raw milk reception capability of 300,000 liters per day and UHT milk capacity of 200,000 liters per day. The plant has been established at a cost of Rs. 1 billion which provides direct employment to 750 people. Engro Foods has entered the Food business through milk processing and sale with the company's vision to pursue growth opportunities based on country fundamentals and own strength. It also positions the company to influence its corporate social responsibility initiatives and work closely with rural communities to promote integrated farming and livestock development. This effort is expected to play a pivotal role in poverty alleviation and improving livelihoods of the poor in the milk collection areas.

Another plant near Sahiwal in the Punjab is completed. The EFL plan envisages growth by innovative launches to command a product range across the dairy spectrum backed by milk collection infrastructure and top end in the distribution of products. EFL is well positioned to become a substantial player in the dairy sector.

1.2 Mission Statement [] 

"To help farmers maximize their farm produce by providing quality plant nutrients and technical services upon which they can depend. To create wealth by building new businesses based on company and country strengths in Petrochemicals, Information Technology, Infrastructure and other Agricultural sectors. In pursuing the mission we shall at all time be guided in our conduct and decision making by our Core Values."

1.2.1 Vision [] 

"Our vision is to become a fast expanding mega foods company. To achieve our vision, the company will initially focus on dairy by investing a substantial amount in plant, milk collection capability and marketing. We are making concrete efforts to expand in and beyond Pakistan; through strategic international alliances, to eventually become global."

1.2.2 Our Dreams [] 

EFL dreams to be BIG. We want to be a major player in the food industry which is also evident in our vision, "Elevating Consumer Delight Worldwide". EFL wants to challenge the industry norms and surprise whoever has eyes on EFL.

Figure 1.1: Core Values1.3.1 Safety Health & Environment

We will manage and utilize resources and operations in such a way that the safety and health of our people, our neighbors, our customers and visitors in ensured. We believe our safety, health and environmental responsibilities extend beyond protection and enhancement of our own facilities, and we are concerned about the distribution, use and after-use disposal of our products.

1.3.2 Ethics and Integrity

We do care how results are achieved and will demonstrate honest and ethical behavior in all our activities. Choosing the course of highest integrity is our intent and we will establish and maintain the highest professional and personal standards. A well-founded reputation for scrupulous dealing is itself a priceless asset.

1.3.3 Leadership

We have leaders of high integrity, energy and enthusiasm who have the necessary managerial, professional and people skills to inspire a group or organization to set high goals and achieve them willingly. We believe that leadership skills need to be strengthened at all levels within our organizations and that managerial and professionalism is a necessary foundation.

1.3.4 Quality and Continuous Improvement

We believe that quality and relentless commitment to continuous improvement are essential to our ongoing success. To this end, we define quality as understanding the customer's expectations, agreeing on performance and value, and providing products and services that meet expectations 100% of the time. Our motto is, "Quality in all we do".

1.3.5 Enthusiastic Pursuit of Profit

Successfully discharging our responsibilities to our shareholders to enhance the long-term profitability and growth of our company provides the best basis of our career security and meaningful personal growth. We can best accomplish this by consistently meeting the expectations of our customers and providing them with value.

1.3.6 Candid & Open Communication

We value communication that are courteous, candid and open and that enable each of us to do our jobs more effectively by providing information that contributes to the quality of the judgment and decision making.

1.3.7 Innovation

Success requires us to continually strive to produce break through ideas that result in improved solutions and services to customers. We encourage challenges to the status and seek organizational environment in which ideas are generated.

1.3.8 Individual Growth & Development

We strongly believe in the dignity and value of people. We must consistently treat each other with respect and strive to create an organizational environment.

1.3.9 Teamwork & Partnership

We believe that high performing teams containing appropriate diversity can achieve what individuals alone cannot. Consciously using the diversity of style, approach and skill afforded by teams is strength we must continuous building into our organization.

1.3.10 Diversity & International Focus

We value differences in gender, race, nationality, culture, personality and style because diverse solutions, approaches and structures are more likely to meet the needs of the customers and achieve our business goals.

10.4 Product and Services [] 

Olper's milk

Olper's cream

Olwell

Omore

Tarang

Tarka Ghee

Engro Foods Limited is subsidiary of Engro Chemical Pakistan Ltd. which is one of the most reputed enterprises in Pakistan with more than 40 years of diversified business operations in the areas of fertilizer and chemicals. Engro Foods started its business operations in March 2006 and with the successful launch of Olpers Milk, Tarang, Olwell, and Olpers cream, recent launched Omore ice cream and recently it has established itself as a major player in the foods business. Engro Foods has already set up two processing plants at Sukkur and Sahiwal. With the ever expanding milk collection network and processing facilities, the Supply Chain has geared us for the growing sales of our products.

We believe that our recent successes will take us to our goal: To be one of the biggest players in the food business. Our aim is to dominate the food business, and to achieve this we will settle for nothing less than the cream!

1.5 Functional Areas [] 1.5.1 Administration

Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly.

1.5.2 Finance and Accounts

The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited.

1.5.3 Human Resource

The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board at Engro Foods. Resumes of candidates are carefully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods.

1.5.4 Marketing

Consisting of leading marketing professionals of the industry, who are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and post-launch, all strategic decisions are made based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at Engro Foods.

1.5.5 Milk Procurement

As all of our food products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our customers. Ensuring regular collection of fresh and pure milk right from the farmer to the factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food technologists working at the collection centers and veterinary doctors providing service to the farmers.

1.5.6 MIS

The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Company's accounting software is also the MIS team's responsibility.

1.5.7 Production

Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300,000 liters of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards.

1.5.8 Quality Assurance

Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this department ensure that highest quality parameters are adhered to through all steps of production and that the products reach the consumers as per promise.

1.5.9 Supply and Distribution

This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department.

Figure 1.2: Organization Structure [] CEOGM FARMProductionGMTechnicalGMBusiness ModleManagerMilk PocketGMFinance and AdminManagerHR

GM Farm

Production

Manger Farmer

Training

Model Farms

ManagerCommercial Forming

GM

Technical

Cooling tanks

Biogas

Processor training

GM

Business models

Mobile milk

Collection

Farms input

Stores

Animal Importers

Ruler contractors

CHAPTER NO 2HUMAN RESOURSE DEPARTMENT [] 2.1 HUNAM RESOURCE PLANING

It is the process of forecasting demand & supply and making comparison. Or creating balance between demand & supply. In the Engro foods they forecast it by two ways;

Business orientationExpert opinion

The forecasting is done on the above two basis. In the expert opinion the selection is done on the basis of the opinion of the experts. Basically the bench of experts selects that how many employees are required to them in the particular department. And they also decide that what quality and what quantity of employees they are going to hire in the particular department.

And the other thing Engro foods adopts is the business orientation, the management of the organization planed about the hiring of employees on the basis of the new work started in the organization. For example as the Engro foods has started its 2nd production unit at Sahiwal so that's why they are adopting the business orientation technique.

2.2 Recruitment and Selection

Recruitment and selection are the processes through which an organization takes in new members. Recruitment involves attracting a pool of qualified applicants for the positions available. Selection requires choosing from this pool the candidate whose qualifications most closely match the job requirements.

In companies like Engro that function in a global environment we have to distinguish different types of employees. Traditionally, they are classified as one of the three types:

2.2.1 Parent country national

The employee's nationality is the same as the organizations. For example, an American citizen working for an American company in Pakistan.

2.2.2 Host country national

The employee's nationality is the same as the location of the subsidiary. For example, a Macedonian citizen working for a Slovenian company in Macedonia.

2.2.3 Third country national

The employee's nationality is neither that of the organization nor that of the location of the subsidiary. For example, an Albanian citizen working for a Slovenian company in Macedonia.

2.3 Recruitment Policy of EFL

There are five recruitment channels of EFL.

Internal movement

Online-portal

News paper ad

Write ins & walk ins

Customize hunting

2.3.1 Internal movement

HR departments become involved when internal job openings are publicized to employees through job positioning programs, which informs employees about opening and required qualifications and invite qualify employees to apply. The notices usually are posted on company bulletin boards or are placed in the company newspaper. Qualification and other facts typically are drawn from the job analysis information.

The purpose of job posting is to encourage employees to seek promotion and transfers the help the HR department fill internal opening and meet employee's personal objectives. Not all jobs openings are posted .Besides entry level positions, senior management and top stuff positions may be filled by merit or with external recruiting. Job posting is most common for lower level clerical, technical and supervisory positions.

2.3.2 Online-portal

Now today no body thinks anything without internet. So EFL give advertise on internet. EFL most of the times use the online-portal for the recruitment of the employees.

2.3.3 News Paper Ads

EFL also place their ads in news papers for the recruitment of the employees.

2.3.4 Walk-ins and Write-ins

Walk-ins are some seekers who arrived at the HR department of EFL in  search of a job; Write-ins are those who send a written enquire .both groups normally are ask to complete and application blank to determine their interest and abilities. Usable application is kept in an active file until a suitable opening occurs or until an application is too old to be considered valid, usually six months.

2.3.5 Customize Hunting

EFL prefer foreign qualifier and students of LUMS.

2.4 Selection Procedure in EFL

The selection procedure in EFL consists of 7 steps;

Test (aptitude)

Interview (3 to 7)

Medical evaluation

Reference & background check

Offer

Placement

The selection in the EFL is done on the basis of above 7 steps. First of all an aptitude test is conducted and the successful candidates are called for the interview and most of the times 3 to 7 interviews are conducted. The successful candidates in the interview are called for the medical evaluation, that they do not have any serious medical problem. After it any reference of the employee is checked, and the background of the employee is checked, they he or she doesn't have any criminal background or have any problem in the background. If everything is clear then he or she is offered for the job and if the offer is accepted the person is called for the job.

Figure 2.1: Recruitment and SelectionResume Short ListedInterview Selection1st Interview2nd InterviewMedical TestFinal InterviewOffersSelect2.4 De-recruitment

EFL do not de-recruit because our business is started newly and It only recruit new employees for the expansion of our business.

CHAPTER NO 3TRAINING AND DEVELOPMENT [] 

The overall aim of the development function is to provide that adequately trained personnel in a company are capable to fulfill their goals, as well as to contribute to better performance and growth with their work (Armstrong, 1996). The development of employees can be treated as a special field of human resource

management that includes planned individual learning, education, organization development, career development and training.

3.1 EFL Orientation/Induction

EFL make a plan for the orientation and induction of its new employees, most of the times a 15 to 30 days plan is created for the new employees. The new employee has to work with the managers of the different departments in the organization. And the work of the different departments is told to the employee. After the completion of the plan the feedback is taken from all the managers and also from the employee. If the feedback is satisfactory then the person is assigned its seat and he or she start doing his/her work. On the other hand if the feedback is not satisfactory then the entire plan is repeated.

At the organization, human resource development professionals are responsible for:

1. Training and development of employees located in subsidiaries around the world,

2. Specialized training to prepare expatriates for assignments abroad, and

3. Development of a special group of globally minded managers.

Creation and transfer of international human resource development programs may be carried out in two ways:

CentralizedDecentralized

With a centralized approach, training originates at the headquarters and corporate trainers travel to subsidiaries, often adapting to local situations. This fits the ethnocentric model. A geocentric approach is also centralized, but the training develops through input from both headquarters and subsidiaries staff. Trainers could be sent from various positions in either the headquarters or subsidiaries to any other location in the company.

In a decentralized approach, training is on a local basis, following a polycentric model. When training is decentralized, the cultural backgrounds of the trainers and trainees are usually similar. Local people develop training materials and techniques for use in their own area.

EFL most of the time use the decentralized approach in its organization.

To maximize training effectiveness, it is important to consider how trainees learn most effectively. Cultural factors have a strong impact on training practices in different parts of the world. For example, in North America, where power distance is small, the relationship between the trainer and trainees tends toward equality. The trainer and trainees use first names, and the trainees feel free to challenge or question what the trainer says. In Malaysia, where power distance is large, a trainer receives greater respect. Students use his surname and title, and he is an expert that students rarely challenge.

As global competition increases, it is increasingly important for successful companies to have a group of managers with a global perspective. Companies must identify managers with global potential and provide them with various training and development opportunities. For example, having one or more international assignment(s), working on cross-national teams and projects, and learning other languages and cultures contribute to making a manager more globally minded. In addition, an organization should include not only parent country nationals, but also host country nationals and third country nationals in this group.

3.2 Engro Foods' Training Policy

There are three main policies for the training of the employees;

In house

External

Training need assessment

EFL most of the times use the external training for its current employees. The current employees of the company are sent to the different seminars and organizations for the training purposes.

3.2.1 Types of Training in EFL

There are two main types of training in EFL:

3.2.1.1 Technical Training

It is given to the persons who work in the labor force or doing any type of technical work. Due to change in the technology or any type of change in machinery, technical training is required to those persons.

3.2.1.2 Soft Skill Training

It is given to those persons who are working in the office. It is also called the development of the persons. It is given to the middle level managers in the organization.

3.2.1.3 Training

To get the outbreak team building experience, we send our employees abroad. Engro foods bear many expenses for the training of the employees.

Figure 3.1: Training Need AssessmentTraining need assessment

Department manager