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Auriga Human Resource Management Project

Introduction of Auriga GroupAuriga Human Resource Management Project

Auriga Group of Companies started as a small business entity in agro sector some 10 years ago it has grown into a brand now with strong personal connection with grows.Over the past 10 years, the values of brand have not changed.Building and keeping those strong relationships with farmers and improving on farm productivity are still the top priorities.

Auriga Group of companies is committed to make Pakistan self-sufficient in agriculture because it is the largest productive sector and a bulk of our population depends upon it. With population increasing to alarming levels, Pakistan’s agriculture needs to become more productive and sustainable. Only agricultural innovations can help us cope with the situation.

Auriga Group was established with a vision to introduce high tech and innovative agriculture in Pakistan that could ultimately lead the agri sector to progress and prosperity.

In its birth year i.e. 2000, Auriga started the production of micro nutrients. This was a major breakthrough in the history of agro business. Standing true to its vision of making farmers’ lives easy by providing them harmless pesticides, Auriga started pesticide distribution the very next year. In 2004, import of pesticides was started. This was initiated in response to overwhelming demand of pesticides which have minimum side effects for the produce. Alongside importing high quality pesticides, Auriga also started research on seeds. By the virtue of this research, it was able to produce its own range of finest pesticides ever within one year span.

In 2007, Auriga started marketing fine hybrid seeds. Pukhraj brand was also launched by the group in the same year and it stands out in agri sector for having revolutionized the rice crop. It gives farmers 3 times more produce than the ordinary seed. Last but not the least, covering major milestones in the present decade, Auriga Group has finally been able to produce hybrid seeds in 2010.

Our history testifies our commitment towards quality assurance, which is the basic pillar of our production, sales and marketing strategies.

Auriga Chemicals Enterprises:

Auriga Chemicals Enterprises is the parent company. We have a well built sales and marketing network with a team of almost 400 dedicated agriculture graduates and 7 warehouses across Pakistan. The company markets quality agricultural inputs at affordable prices backed by the on-farm advisory service. This kind of marketing creates a win-win situation by guiding farmers to manage weeds and increase

yield potential. We are operating to make farming a commercially sustainable and growing business.

Taking clue from the overwhelming success of Sayban One Stop Shop, Auriga Group has set up Auriga Solutions Centres on various locations to assist the farming community. From providing agro products to free advisory services to the farmers and growers, Auriga Solutions Centers support the agro community in growing more.

Auriga Seed Corporation

Auriga Seed Corporation believes in ‘Better Seeds for A Brighter Future’. Seed is the most fundamental and imperative element that farmers sow to reap the benefits of harvest. Seed is a business of finding the right kind of genetics adaptable to our climate.

Auriga Seed Corporation is focused on research and development of seed varieties, using indigenous pool of genetics coupled with elite sources of genetics around the world. The company focuses on developing and procuring high yielding hybrids of field and vegetable crops. The company is actively engaged in sourcing of transgenic technologies from local research institute and developed nations. Aiming at having local seed production to minimize dependence on imported seeds, we have signed agreements with international players.

 

Auriga Farms

Auriga Farms established with a vision of CEO Jamsheed Iqbal in corporate farming to improve farmer community by introducing high yielding seed varieties of different crops to farmer’s with improved agricultural practices.

Agriculture farming may not be the prime occupation in a majority of the countries but the significance of advanced agriculture farming cannot be denied. An era set in when agriculture farming improved manifold. With the advent of latest technologies, improved agricultural processes, sophisticated machinery, use of fertilizers, the output of crops multiplied like never before.

Auriga Farms maintaining 2000 hectares led by Director Farms with a professional team of Plant breeders, agronomists, phyto doctors, are located at different climatic zones to have better comparison of crop behavior. Our farms are located in farmer’s community & designated as Research & Production farms for seed & valuable produce. These farms are to advocate farming community of Pakistan by opening our gates for farmer because “seeing is believing” for adoption of new technologies. So whatever, the new technology is demonstrated at our farms has great opportunity to get good market share in agro based economy of Pakistan. We are also equal opportunity to innovative technology providers in the world to join hands at our farms to demonstrate their latest technologies to bring revolution in agriculture of Pakistan.

Auriga fertilizers

Auriga fertilizers are basically a research and production wing with a mandate to develop novel combinations of micro and macro nutrients, together with growth regulators and growth promoters, specific to different crops. We take pride in being the pioneers in this industry and giving new trends to agribusiness industry.

Our famous brands like Zarcon, Zeneca, Galore, Grow up, Comus and Vital  have become industry standards. The products have unique combinations of micro and macro nutrients targeting different segments of the market as per need of the specific soil and crops. Our next product from this wing is true Potassium Humate. The test supply to the market has proven it to be a very good product and we aim to take over 40% of the market in next couple of years

 

VISION

“A pulsating rural economy driven by value-added agriculture”.

MISSION

To create and facilitate the development of value-added agricultural businesses, and the fulfillment of our corporate social responsibilities towards the Agro Segment in particular.

CORE VALUES

  • Practice high ethical business standards in Agro Sector.
  • Produce and provide high quality Agriculture inputs.
  • Respect and protect the environment.
  • Productive Hard work.
  • Efficient Time Management.
  • Self Respect

We believe in strong cultural values and expect very inelastic behavior for implementing from our leaders and team members

 

DEPARTMENTS / WINGS

  • Finance & Imports
  • Accounts & Stores/Logistics
  • Production
  • Administration, Legal, Commercial
  • Human Resources (HR)
  • R & D (Registrations) – Seed / Pesticides / Fertilizers
  • Research & Reproduction Farms
  • Bulk Sales / Institutional Sales
  • Sales & Marketing
  • Brand & Packaging
  • Technical Trainings & Franchise Development
  • Farm Operations & Technologies
  • Auriga Urban Pest Management

Auriga Human Resource Management Project

Auriga Human Resource Management Project

Auriga Human Resource Management Project

STRATEGIC HUMAN RESOURCE PLANNING

The objective of manpower planning/budgeting is to plan and regulate recruitment, selection, training, career planning and other human resource activities, at the right time and with right people to meet Auriga Group short range and long range organizational objectives.

Human Resource Planning/Budgeting is part of the annual budgeting exercise and aims to estimate the needs of Auriga Group over the period covered. Key policies relating to this aspect are as follows:

Human resource requirements are built around Auriga Group business plans i.e. the targets, development plans and service standards etc. which it aims to achieve.

Manpower requirement is forecasted for a particular department/functional area by the head of the respective department/function for preparation of the manpower budget, keeping in view the objectives and future needs of the department in the period under review and targets set in the business plans.

Proper justification is required for each requisitioned position. Due consideration is given to various factors such as work load of existing human resources, planned expansion of the department, external developments etc. while developing arguments justifying requisitioned position(s).

Departmental manpower budgets are submitted to the Human Resource department at least 10-12 weeks before the end of the operating financial year of Auriga Group , unless otherwise specified in writing by the HR department.

Recommendation:

  • Auriga Group should consider developing a multi-year integrated business and human resource plan for the department that is adjusted annually to reflect the priorities of the current year.
  • Auriga Group should consider risk-ranking human resource gaps as a means of setting priorities given limited resources and to maximize res Auriga Group ults.
  • Auriga Group should formalize and standardize the performance reporting process on human resource plans in order that the results can inform subsequent plans or drive mid-year course corrections where warranted.
  • When management establishes targets in their human resource plan, management should ensure that strategies are established to achieve those targets.
  • Auriga Group should review its existing human resource policies to ensure completeness and relevance to the department’s current context; ensure widespread communication and understanding of human resource policies; regularly monitor compliance to human resource policies; and update human resources policies on an ongoing basis.

 

Recruitment & Selection

Recruitment is the first part of the process of filling the vacancies; it includes the examination of the vacancies, the consideration of sources of suitable candidates, making contact with those candidates and attracting applications from them. (OR) All activities directed towards locating potential employees, (OR) the attraction of applications, form suitable applicants.

  • Auriga Group gives first preference to its own employees only if they meet the job requirements
  • Recruitment age for Junior/entry level vacancies should preferably be under 25 years.
  • Recruitment of immediate family of current employees is prohibited within same department where he/she is reporting directly to each other.
  • Selection criteria will be as per Job Descriptions and other job skills and competencies related information, where available.
  • When a job opening occurs, the Immediate Supervisor fills the Manpower Recruitment Form and forwards it to Head of Department. HOD (if approves the Request) forwards it to the HR Department.
  • HR Department gets an approval from CEO before starting the recruitment process.
  • Upon Approval, HR Department will collect applications for the required post from various recruitment methods (Job Portals, Newspaper Ads, Campus recruitment, Corporate Website and Search Consultants)
  • Upon collection of sufficient number of applications HR Department will scrutinize all the applications against the approved job description. If the job requires skill testing, the designated HR Representative will get the test prepared, conduct the test and check it.
  • The candidates selected in the initial interview and test shall be called for a Technical interview with Head of Department. The interviewer should fill the Interview Evaluation Form. After the interviews, department head decides the most suitable candidate based on the Interview Evaluation.
  • After the Technical Interview evaluation, in case if the person is suitable, but not found competent enough on the already mentioned salary; it’s the duty of HR department to convey the results and again negotiate salary with the candidate.

The candidate selected by HR Department and respective Head of Department will be finally interviewed by the CEO for Confirmation.

The communication of job offer is done in written by the designated HR Representative (HR Rep. takes signatures of Selected candidate on a copy of offer letter which later on is filed in employee file). Upon consent and acceptance of offer, employee will be given an Appointment Letter duly signed by both parties (at DOJ). A copy of appointment letter will be maintained in personnel file while the photocopy is sent to the Accounts Department for payroll processing. The designated HR Representative also informs all the employees about the newly selected employee through email.

Auriga Human Resource Management Project

Recommendations 

  • It is observed that the immediate supervisor feel the fear from their subordinates. For internal hiring the candidate has to satisfy his line manager for applying for the desired post but managers become hurdles against their transfers as they don’t want to lose their own trained employee. This bounds the employee to work in his existing department.
  • It is observed that The candidates have to wait for hours to give interviews which gives negative impact of the organization. Interview should be conducted as per given schedules and need to improve this segment time.
  • The main focus of selection during the interview is on excellent English both in written and verbal without judging his knowledge, skills and abilities.
  • The candidates are called four to five times for final selection (for written test, initial interview with HRD, Interview with line manager, finally interview with Director Finance and Admin), which may be reduced to twice (written test and initial interview on same day and then final interview).

 

On-boarding & Orientation

Once the selection process has been completed, new employee must be oriented in order to become productive contributor. Orientation not only improves the rate at which employee are able to perform their job but also helps employee satisfy their personal desire to feel they are part of the organization’s social fabric. Supervisors in coordination with HR Department complete the orientation by introducing new employee to co-workers and others involved in the job.

At the Day of joining the employee will Report to HR Department and submit the photocopies of his/her past credentials. A Designated HR Representative will issue the appointment letter to employee and get some documents signed from the employee. These are as follows;

  • Appointment letter.
  • Joining Report.
  • Statement of ethics
  • Confidentiality Agreement
  • Reference Forms for at-least Two Referees will be filled by the employee (referees must not be blood relations).
  • Employee will fill a Health Questionnaire Form.

After the signatures on documents the Designated HR Person will start briefing the employee about company’s vision, mission, values, objectives and policies.

Following the oral demonstration, the HR Person will issue the employee handbook to employee in order to study in detail all the policies that have been told during orientation; and then will take the employee to a physical tour of the company and will get him/her introduced by all the colleagues.

After the orientation the HR Representative will issue an orientation checklist to the employee, where the employee will fill the checklist and will give his/her feedback about orientation. The orientation checklist will be filed into the employee file and feedback will also be used for further improvements in orientation program (if required).

Recommendation:

It is found there is not proper implementation of orientation. The management have to focus this segment and develop the culture in organization of orientation.

The orientation session for all newly appointed employees should be done at the end of every hiring process. The newly hired employee is made to stay in luxurious hotel for two days during his orientation session.

 

Training & Development

The aim is to outline the role of training in Auriga Group of companies to help the management and its employees to work in the knowledge intensive environment and to enable them to develop the necessary skills to carry out its operational programs. The training will be conducted through both, the open enrollment and in-house programs. The training arrangement will be done at dissertation of management of Auriga Group. In case of formal in-house training the training will be conducted in batch of at-least 10 people. In case of one-to-one training, the training will be conducted through OJT (On Job Training).

Training is defined as the acquisition of knowledge, skills and attitude to perform more effectively on one’s current job. Development is the acquisition of KSA’s to perform some future job.

Employee Training & Development is an essential component of the Human Resource function and is tied directly with the Human Resources Planning, Performance Management and Career & succession planning activities. Auriga Group has an ongoing training & development program that contribute towards improving productivity, raising employee morale, creating a conductive work environment and ultimately enhancing the profit of the organization. Training needs are identified at the work place and through performance management. Basically, this involves;

(i)  Identifying competencies (knowledge, skills and abilities required to perform the job successfully

(ii)  Assessing employee’s current performance quality, skills and knowledge

(iii) Identifying the gaps between requirements and actual competencies to arrive at the training needs to close the gaps.

Recommendation:

  • Annual plan for training should be designed as per company strategic goals.
  • Annual budget should be allocated for all departments, and it should be consumed at any cost.
  • Organization should encourage a learning culture and express to all employees that the organization cares about enhancing their skills and wants every worker — whether training or not to remain competitive within their skill set.
  • Organization should also give preference to its supervisors and lower level employees because maximum training budget is set for sale team.
  • Maximum preference should be given to on job training because new or inexperienced employees learn from their seniors.

 

Performance Management

To ensure that AURIGA GROUP has highly competent human resources who can respond positively to the current and future organizational needs and to optimum utilization of our employees knowledge, skills and abilities while providing them opportunities for their career growth and development; the performance appraisal objectives focus on the followings:

  • Continually improving employee performance
  • Compensating employees on performance related criteria
  • Taking placement decisions
  • Identifying training and development needs
  • Planning staff careers

It also aims to provide a proper mechanism in which the Performance Appraisal system is established in the company, and result in the employee promotion and/or salary increments (if employee deserves so).

PROMOTION CRITERIA (Must’s of Promotion):

Promotion criteria are following;

  • The employee must have completed his probation period successfully.
  • The employee should achieve three A+ ratings in the Annual Appraisals.
  • The employee shall only be promoted if there is a space available in hierarchical chart and there is potential to absorb further.
  • The employee shall only be promoted if he has developed a reliable and dependable second line.
  • Top mental and physical alertness shall be gauged for the managers.
  • The employee moving in Managerial Segment should be Self Driven, Capable of taking Initiatives and rationale decisions.
  • The management reserves the right to decline any request(s) without assigning any reason.
  • The management also reserves the right to move the instant appraisal of any employee as and when desired.

SUSTAINING ON PERFORMANCE

  • Employee is supposed to get maximum 4 increments per year if he gets A+, (However the management reserves right to compensate with “Dearness Allowances” as much as desired. But that will not affect the scales).
  • At the achievement of A, he will be awarded 3 increments
  • If any employee is not having 3, A+ in 3-4 years, he will not be promoted.
  • If an employee has just got 2, A+ in four years he will sustain, but not promoted

INCREMENTS

Annual increment means an annual enhancement within the steps of the salary grade of an employee. There are two types of increments, which are as follows:

ECONOMIC & SPECIAL

This increment is an adjustment for cost of living increases, market adjustment or official rates of inflation prevailing in the country.

MERIT & PERFORMANCE

This increment is allowed on performance of employees on the basis of the performance appraisal. The Management may grant advance increments to any employee in deserving cases at any stage of service.

EFFECTIVE DATE OF INCREMENT

All employees of AURIGA GROUP will receive annual increment effective July 1st of each year. The performance appraisal shall be held in May-June of each year and completed before the annual increment takes effect on July 1st.

FOR NEW EMPLOYEES

An employee who joins in between the July 01 to December 31 shall be eligible for consideration in coming Annual Appraisal. Vice Versa, if an employee joins in between the January 01 to June 30 shall not be eligible for consideration in upcoming Annual Appraisal.

Recommendation:

  • As the Self assessment is not part of PA so it  must be part of the performance appraisal system.
  • The objective and the KPI’s should be developed and the performance appraisal must be assessed on these KPI’s
  • Performance feedback must be provided to all the employees so that they know their weaknesses. This feedback lets employees know how well they have performed in comparison with the performance standards.
  • There must be proper monitoring for performance improvement process and performance appraisal must be conducted semi annually.

 

Compensation & Benefits

Eligible employees at AURIGA GROUP are entitled an extensive range of benefits. A number of the programs cover all employees in the way prescribed by law and as per company policy.

Benefits eligibility is dependent upon a variety of factors, including employee classification. Immediate supervisor / Head of Department can identify the program for which you are eligible. Detail of many these programs can be found as following(s);

  • Company maintained vehicle
  • Vehicle Fuel and Maintenance Expenses
  • Personal Driver
  • Group Life Insurance
  • Medical Allowances
  • Incentives (for sales staff)
  • Bonuses (for non-sales staff)
  • EOBI
  • Social Security
  • Laptop / Internet Device
  • Daily Allowance
  • Imp-rest Money
  • Mobile usage Allowances
  • Hajj Vacations
  • Study Vacations
  • Maternity Vacations
  • Lunch Facility
  • Pick & Drop Facility
  • Overtime
  • Domestic & Foreign Training
  • Domestic & Foreign Tours
  • Marriage Gifts

SALARIES AND ALLOWANCES

SALARY SCALES

The Organization maintains salary rates at a level, which are in balance to the prevailing rates for comparable positions in the market. Outstanding work performances are rewarded through periodic merit awards & increases. The categories of employees corresponding AURIGA GROUP grades are attached for your convenience to know the detail of the fringe benefits at every scale.

SALARY COMPOSITION

The following is the composition of salary applicable to all grades of employees:

  • Basic salary
  • House rent allowance
  • Utilities allowance
  • Any other allowance to be determined by the management.

HONORARIUM / SPECIAL REWARD

The Management may grant an honorarium to an employee for special work performed by him/her which is occasional in character and either so laborious or of such special nature as to justify a special reward.

SALARY DEDUCTIONS

The following deductions are made from salaries to meet legal and other requirements:

  • Income tax on salaries
  • Loan instalment
  • Fines (if any)
  • Any other cost sharing expenses

 

LEAVES

CASUAL LEAVES

10 days in a calendar year (with full pay, to the confirmed employees only). Balance (Un-availed) leaves will lapse at the closing of each calendar year.

SICK LEAVES

10 days, these leaves would be subject to Medical Certificate issued by a qualified Doctor or as desired by the HRD.

ANNUAL LEAVES

10 days after completion of one year service.

HAJJ / UMRAH LEAVES

All type of staff is entitled to 30 days leave with pay, once in a service, provided he/she put in 3 years service. In case of Umrah 15 days leave with pay will be granted.

MATERNITY LEAVES

40 days maternity leave shall be granted with full pay (only for the confirmed regular employees).

FAMILY LEAVES

An employee may on death of his spouse be granted family leave with full pay for a period not exceeding 20 days.

STUDY EXAMINATION LEAVE

There is a provision for study leave separately, as it is obligation of every employee to give full time to his/her job, the decision of such request will be dealt as per situation and demand of the examination or study schedule. This decision will be made with agreed consent of the General Manager / Head of Department.

LEAVE ENCASHMENT POLICY

The benefit is announced for your utmost motivation, for increased punctually and regularity at head office for bringing it at par with the desired corporate culture. Now all those who will remain punctual and regular can take this reward. It is felt appropriate to let you recall the following essential/salient features;

 

 VEHICLE POLICY

Travel policy is being laid down to streamline the procedures regarding movement of employees.

Designation                                                         Car Entitlement

R.M / B.M                                                             XLI / GLI

Manager                                                                 Honda City

Sale Officer / Territory Manager                       Suzuki Cultus

M.D.O                                                                     Daihatsu Coure

If employ is promoted to next pay scale, he will be entitled to ownership transfer after 5 years starting from previous pay scale.  After passing five year the ownership may be transferred to employee’s name @ 38% fair market value of the vehicle.

 

FAMILY SUPPORT POLICY FOR THE DECEASED EMPLOYEES

The Auriga Group always support and help the employees who are eligible for that. The scope of this Family Support Policy (For the deceased employee) is limited to the personnel who deceased and their family needs help.

The scope of the policy is limited in the following terms;

  • Just the regular staff of any department(s), of any company of the Auriga Group.

The decision about the Work Charge (Daily Wage) and Contractual Employees will be made as per discretion/judgment of the Chairman – Auriga Group

 

EID BONUS BENEFIT

Our management believes in sharing the happy times with a gesture of benevolence. Two “Eid Bonuses” are given to the Regular Employees (Including all other than Sales & Marketing). All those who are confirmed employees who have completed at least one year of their service with Auriga Group will be entitled for this benefit. The bonus amount will be equal to the employees Basic Salary (i.e.66.666% of the gross amount).

GRATUITY POLICY

Purpose of the policy is to privilege the Non-Sales Staff in monetary terms and support them at the time of leaving the organization. Also this effects/enriches the TORs of employment and attracts the market.

ACCOMMODATION ALLOWANCE

Hotel/Guest House accommodation may be arranged by employees traveling on business, when the journey time including the official business to be conducted exceeds a total of 12 hours. It would be preferable to arrange hotel accommodation through the HR & Admin function, if night stay is pre-planned.

 

PESSI  (PUNJAB EMPLOYEE’S SOCIAL SECURITY INSTITUTION)ELIGIBLE:

Pakistani National below 60 years eligible for medical benefits including members of family from PESSI.

EMPLOYER’S CONTRIBUTION:

  • Calculated on the basis of Gross Wages excluding all types of overtime.
  • Employees drawing wage (Rs.12,000 to Rs.16,000) per month are eligible to avail medical benefits along with members of family from PESSI.
  • Employees drawing wages / salaries more than Rs.16, 000 per month will not be eligible for medical facilities under PESSI.
  • If once registered by PESSI, then the employee will remain registered even if his pay exceeds Rs.16,000.

 

EOBI (Employee’s Old Age Benefit Institution)

Employee’s who are Pakistani National and below 60 years are eligible for registration.

Calculated on the basis of Gross wages excluding all types of overtime

  • If Employee’s wages is more than Rs.12,000 per month, then the employer will pay 5% Rs.600 per employee per month to EOBI & employee will pay 1% contribution.

Last date of submission of monthly schedule to EOBI is 25th of next month, if Sunday falls on 25th, then 24th will be the last date. Accounts department prepares cheque and submit to EOBI along with above schedule in time.

 

MEDICAL POLICY

Auriga Group provides two types of medical policies (a) Group Medical Insurance in which permanent employees their spouses and dependent children under the age of 21 years are covered. The limit of each employee will be according to the grades defined. (b) Second medical policy is named as OPL (Out Patient Limit) which covers all the family including parents. This policy is limited to employee’s half salary per year which is divided on monthly and quarterly basis. The claim will be reimbursed on doctor’s prescription and original bills.

The employee has to register the name of his wife, children and parents with the company to be eligible to claim reimbursement of their expenses.

Any fake submission of bills or false claims will invite, apart from disciplinary action, disqualification from the benefits of the scheme.

 

SALES / SERVICE INCENTIVES

Only sale & marketing team which includes the direct Sales Forces are entitled to the sales incentive. The target for calculation of incentives is set in annual appraisal at the end of each year by G.M Sales & Marketing & Director Finance & Admin. The company has documented procedure for calculation of incentives based on their performance. The following factors are considered in calculating incentive rate:

  • Total Sale
  • Total Recovery
  • Total Expenses

PROFIT BONUS

Subject to the performance of the company and approval of the board of directors, employees may be given 2 annual profit bonus on both Eids based on basic salary. Employee entitled for sales incentives will not be eligible for profit bonus.

 

Recommendation:

  • Concluding all we can say that no doubt HR is performing his duties very well but still some gaps are left vacant. The HR department must prosper to remove those gaps and try to improve the existing system.
  • If company has to be successful then it must make its customers (Internal and external) a part of its business.
  • Conduct Annual Employee survey.
  • Cross functional job rotation.
  • Knowledge sharing sessions.
  • Recognize employee achievements.
  • Individual learning plans.
  • Idea works/encash program – awards for better ideas/suggestions.
  • Leadership programme for young managers.

 

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