Table of Content:

1. Acknowledgement
2. Introduction & history of Unilever:

a. Introduction
b. Mission statement
c. Purpose of Unilever
d. Logo of Unilever
e. History of Unilever

3. HR Department & compensation system:

a. Roles of HR dept
b. Responsibilities of HR dept
c. Mission statement of HR
d. Values of HR
e. Organizational chart of HR
f. FLAD
g. Factory cafeteria
h. HR main office
i. Organizational chart of HR
j. Compensation system

4. Recommendations & Conclusion

 ACKNOWLEDGEMENT
In the name of ALLAH the beneficent the merciful.

First of all we would like to thank almighty Allah who enabled us to

complete this project in time. Next we all would like to thank our respected
course instructor, Prof. Masood A Mian , who gave us the opportunity to
study this topic. His guidance, encouragement and affection made us able to
complete this peoject that is indeed a “mile stone” in our lives. We are really
thankful to our respected teacher for the guidance and support.

We would also thanks to all people specially the people of Madina Colony,
Baghbanpura, Lahore they really cooperate with us and provide us
maximum information to complete the survey.

In the end we would specially like to thank the Councilor of Madina Colony,
Baghbapura, Lahore whose guidance and support is also valuable to
complete this project.
Introduction & history of Unilever:

Introduction:

Unilever is one of the world’s leading suppliers of fast-moving consumer goods. In

much of the world, Unilever leads the Home Care market, which includes cleansing and
hygiene products. Many of their products are market leaders and include Brilhante, Cif,
Comfort, Domestos, Omo, Skip and Snuggle.

UPL is implementing world class HR practices. They are critically working on many new
concepts of HR. In sequence of their compensation system, they are market leader in
many benefits. Their market competitor P&G is also very good pay master and has a very
strong concern in developing their own work force. In this project we are going to
analyze the compensation system of UPL–HPC–RF (home and personal care Rahim Yar
Khan Factory)

Within the Personal Care market, they are global leaders in products for skin cleansing,
deodorants and antiperspirants. Their global core brands include Axe, Dove, Lux,
Pond's, Rexona and Sunsilk. They create market and distribute the products that people
choose to feed their families and keep themselves and their homes fresh. Innovation is
paramount within the Home and Personal Care markets in order to maintain their strong
market position.

Their brands cater to consumers everywhere and they produce products for a vast range
of requirements and conditions, from laundry soap bars for consumers using river water,
to tablets for the most advanced washing machines. From the most essential in personal
care products, to the luxury of their fragrances, they have a range of brands to match the
diversity of their consumers.
They are growing their biggest brands through innovative product development and
compelling brand communications. Each of their brands has enormous potential to meet
the changing needs of consumers through a variety of products that fulfill their brand's
promise. At the same time they also have the potential scale, profitability and
international appeal needed to be world-leaders.

Every day, all around the world, 150 million people choose to make their brands part of
their lives. Everywhere they operate, they work to understand people's lives, needs and
aspirations - and to provide food and home & personal care products that help them, even
just a little.

Unilever live up to the trust of people by making and selling their products in a
responsible way, conscious of their effect on the world they live in and the
communities in which they work. Their passion for understanding people's concerns
and desires, their ability to create products that fulfill those needs and their skills in
getting those products to market drives their growing success - and has made Unilever
one of the world’s leading consumer good companies.

Mission statement:

We will continue to build a name for Corporate Video Concepts that is both respected
and recognized for excellence. We'll build that name through loyalty to the client, fair
pricing and unfailing dedication to creating a superior product that keeps the client
coming back for more.

Our objective in every finished minute of tape is to grab the viewer while maintaining
a firm grasp on the client's message and purpose.

We will continue to maintain that level of excellence that has pushed Corporate Video
Concepts to the forefront of video communications.
Unilever purpose:

The purpose of Unilever is to meet the everyday needs of people everywhere, to

anticipate the aspirations of their consumers and customers and to respond creatively and
competitively with branded products and services which raise the quality of life.

Their deep roots in local cultures and markets around the world are their unparalleled
inheritance and the foundation for their future growth. They will bring their wealth of
knowledge and international expertise to the service of local consumers – a truly multi-
local, multinational.

Their long-term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively and to a willingness to
embrace new ideas and learn continuously.

They believe that to succeed requires the highest standards of corporate behavior
towards their employees, consumers and the societies and world in which we live. This is
Unilever's road to sustainable, profitable growth for their business and long-term value
creation for their shareholders and employees.

Unilever logo:

People don’t know much about Unilever—and they don’t easily connect the company
with its brands. For many people they are invisible. Most don’t know what they stand for
and see them as yet another multinational. So with their logo they are taking off their suit
and showing their true colors. They aim to add vitality to life. It’s a big ambition, but it’s
always been right at the heart of their business. They are just making it a little more
transparent. And they believe they are heading in the right direction for the future. The
company has published its interpretation of the new logo that they have come up with
which has been described as follows:
History of Unilever:

The progressive world-class business we know today can trace its roots back to the early
part of the last century.

Unilever was created in 1930 when the British soap maker Lever Brothers merged with
the Dutch margarine producer, Margarine Unie. At the time, an international merger was
an unusual move. But the owners of the two companies could see that bringing together
complimentary businesses with strong global networks would create new opportunities.

Both Companies were competing for the same raw materials, both were involved in
large-scale marketing of household products and both used similar distribution channels.
Between them, they had operations in over 40 countries.

Margarine Unie grew through mergers with other margarine companies in the 1920s.
William Hesketh Lever founded lever Brothers in 1885. Lever established soap factories
around the world. In 1917, he began to diversify into foods, acquiring fish, ice cream and
canned foods businesses.

In the Thirties, Unilever introduced improved technology to the business. The business
grew and new ventures were launched in Latin America. The entrepreneurial spirit of the
founders and their caring approach to their employees and their communities remain at
the heart of Unilever's business today.

Employing 247,000 people, Unilever has two parent companies - Unilever NV and
Unilever PLC – which, despite being separate businesses, operate as a single unit with
the same board of directors. Unilever's corporate centers are London and Rotterdam.

Unilever brands are household names: some are world famous; others have a special
role in just one or a few countries.
Different factories of Unilever are operating in different areas of Pakistan. Brief
information about theses units is given below:

• Rahim Yar Khan (RF):

The largest and the oldest of Unilever is situated in Rahim Yar Khan. Basically at this
factory personal products, soaps, glycerin and dish wash bar are manufactured.

• Karachi Tea Factory (KF):

This factory was established in 1950 and it is situated in west Wharf area. Formerly it
was owned and managed by Lipton Pakistan Ltd. In the last 43 years many
modifications are made here. And the factory has expanded considerably. In this factory
only tea is produced and packaged.

• Ice Cream Factory:

This is recently established on Multan Road in district Kasur. The plant was
commissioned in 1994 having the most modern and latest machines installed. Walls Ice
cream is being manufactured here. Unilever, when acquired the Polka, also purchased its
two factories, one in Lahore and other in Karachi.

• Best Foods Faisalabad:

Recently Unilever has acquired Rafhan Maize Products from Best Foods International.

• Tea Processing Plant (Mansehra):

The new Lever Black Tea Processing Plant has been set up at Dhodial, 12 km north of
Mansehra on the main Karakoram Highway on 2.5 acres of land with the Processing
Plant built-in area of 11,800 sq. ft. The plant is expected to process 50 kg per hour or
approximately a ton of made tea a day

The plant has cost Rs. 11 million whereas Rs. 12 million has been spent on the building
and infrastructure. The plant has been inaugurated on 7th of September, 2001.

HR Department & compensation system:

According to the Human Resource Department of Unilever RF, there are things, which
are common between workers and machinery of the organization. For example:

1. Machinery requires repair where as workers required training

2. Both are used for production purposes
3. Both require improvement
4. Both become inefficient if proper attention is not given

Role of HR in Unilever:

The role of HR starts when there comes a word human. It becomes the responsibility of
HR Dept. to analyze, recruit, train, motivate, compensate, appreciate, give safety &
health facilities and do every favor which is associated with human needs.

Basically HR role is in 5 dimensions. The HR role in:

1. Industrial Relations (IR)

2. The Administration Dept
3. The Factory Labor Administration Dept (FLAD)
4. The Unilever Estate
5. The Security Dept

The brief introduction of HR role in above departments is given below in its depth so
functioning of every department would be clear.

1. The HR role in IR:

1. Effective implementation of TPM

2. To inculcate the “Safety Instinct” in factory teams
3. To ensure smooth production
4. To ensure a congenial yet a competitive environment
5. To develop specialist skills within the team through training
6. To achieve results & grow as team / with teams
7. To nurture Human Resource that will meet work place needs over a long term period
8. To ensure hygiene / house keeping is maintained through 3P
9. Effective Security Measure

2. The HR role in administration functions:

Business Services:

1. Mail dispatches - internal and external

2. Tele communication services - internal and external
3. Arrangements for in house seminars and courses

General Services:

1. Acid control / maintenance

2. General repairs
3. House keeping
4. Tea and bar services

Stationary:

1. Procurement / printing / quality / cost

Travel:

1. All types of travel plus boarding and lodging

2. Public relations with district management

Strength:

1. Manager 1
2. Factory staff 6

Special achievements:

1. Stationary store cost cutting

2. Enhanced service levels
3. Tea and allied
4. Way Forward

3. The HR role in FLAD:

Strength:
1. 4- Mgmt, 16-Factory Staff

Special Achievements:

1. Rationalization of man power

2. Family Medical Center
3. Partial implementation of M.O.U.
4. Running Machines handing and taking over to increase production time
5. Flexible Factory Staff
6. Gender Diversity (only at the office level)
7. Training's parted to entire factory staff (Permanent & contractual)

Way Forward:

1. Up - skilling through extensive training programs

2. Introducing women on the Personal Products packing floor
3. Continue out sourcing of all non core tasks / operations
4. To create a competitive atmosphere amongst the factory team & a sense to strive
for excellence

Factory Labor Administrative Department – FLAD:

FLAD is a very important and busy department of UPL-RF. This department is run by
junior manager Mr. Raja Saeed under supervision of HRD.

1. Appointment of temporary and casual workers

2. Maintain leave records
3. Maintain attendance
4. Maintain uniforms and safety shoes
5. Disbursement of salaries
6. Maintain overtime records
7. Factory canteen

Manpower:

1. Management 1, Factory staff 16

Special Achievements:

1. Temporary salaries through bank

2. Enhance level of customer service
3. On time processing of returns - internal and external
4. Hygiene and health monitoring in the factory canteen and the catering staff in the rest
of the factory
5. Manpower rationalization in the tea and tandoor area
6. Effective crisis management

Way Forward:

1. Effective installation and running of the electronic swipe card system

2. More towards out sourcing of factory canteen and other non core tasks
3. Training to be parted to time keepers for the atomization process
4. Rationalization of permanent manpower in the FLAD

4. Role of HR in Estate department functions:

1. General specific cleaning / maintenance of the Estate

2. Event management
3. Boarding / lodging of guests
4. All mechanical / civil / services to be provided to all residing in the estate
5. Maintain good and professional relations with the district authorities

Special achievements:

1. Excellent service level

2. Cleaning staff is out sourced

Strength:

1. Manager1

Responsibilities of HRD:

In HPC factory Human Resource department deals with the following matters:

1. Hiring of labor to fulfill the factory needs

2. Negotiation with CBA
3. Negotiation with third party
4. Dealing the legal matters in court
5. Marinating the healthy and professional working environment in factory
6. Improving the security situation in factory
7. Negotiation with Govt.
8. Handling the canteen matters
9. Solving every problem of labor
10. Get the labor aware about the company policies
11. Motivating the work force
12. Appraising the good performance
13. International assignments
14. Controlling the tension between CBA and management
15. Aware the union about the creative participation of management
16. Work with the charter of demand
17. Give allowances to the employees
18. Promotions and bonuses
19. Training the labor
20. As well as management
21. Arranging the farewell party for retirees
22. Prepare ACRs (Annual Confidential Reports)
23. Organizing the healthy activities like sports day etc
24. To implement the company’s policies to its full
25. To maintain the Human Resource standards in factory
26. For managers PDFs (Performance Development forms)
27. Help to get financial support from the company or from other institutions
28. Handle the internship program in factory
29. Make induction plans for management trainees and for guests
30. Conduct value meeting on every Monday
31. Providing every facility to company guests
32. Provide rest house facilities to the Govt. officials
33. Marinating the leave record of managers
34. Keep the bio data of each NMS (Non Management Staff)
35. Handling the estate matters
36. Provide uniform and safety shoes to labor
37. Job description and job specification of each and every job
38. Marinating the shift, leave, and attendance records of each employee
39. Marinating the record of applications for job in Unilever
40. Fulfill the needs of the employees
41. Arranging the transport for the guest
42. Provide stationary to whole factory
43. Reservation of seats is also the responsibility of this dept.
 Mission statement of HR:

“We in HR are the team of enterprising people committed to enable an environment

which allow employees to contribute to the fullest of their potential through being
creative, taking risks, having fun and striving for the continuous improvement. We
attract, develop world-class people who have the passion for winning. As strategic pattern
of the business, we enable achievements of sustainable profitable growth through
providing innovative HR advice.”

Values of HR:

1. We operate with integrity by treating our stakeholders in a fair and honest manner
as we want to be treated

2. We believe in team work, involvement and empowerment

3. We learn, change and improve by being open to ideas, willing to take risks and
learning form our mistakes

4. Our focus is on performance, responsiveness and delivering results

Responsibilities of FLAD office:

The main responsibilities of FLAD are

• Provide uniform to the labor

• Provides safety shoes to every visitor and labor
• Hiring the temporary workers
• Hiring the badli workers
• Maintaining the leave record of NMS including temporary and badli workers
• Maintain the record of shifts, allowances and attendance of NMS temps and badli
workers
• Dealing with the medical certificates from external doctors
• Maintaining the attendance allowances (allowance given on constant presence)
• Granting attendance award (this award is given to those employees whose present is max.
and it is given as an appreciation )
• Issuing warning letters to those employee who are absenteeism is increasing
• Maintaining the medical connivance allowance.
• Statement of annual, casual, and sick leave.
• Issuing ration card.
• Preparing cola(cost of living allowance, it is those taxes imposed by Govt. of Pakistan for
each employee in the country like increase in pay, granting Eid package)
• Preparing Heavy duty allowance (allowance given on doing heavy duty like in
engineering dept.)

Now detail of these responsibilities is:

To provide uniform and safety props to the labor

One of the responsibilities of FLAD is to provide uniform to the employees and keep a
record of it. There is different color of uniform for each department in the factory to
differentiate them from each other. To provide

• Lockers
• Laundry service
• Stitching services

For the uniform is also the responsibility of FLAD. Token no, name and dept. of the
employee is recorded in specific form in order to issue a uniform. In winter jerseys are
also the responsibility of FLAD dept. Each uniform is washed on weekly basis.

Colors:

• Production side: grey pant and white shirt (3 pairs).

• Engineering: light blue shirt and dark blue pant (3 pairs).
• PP (personal products): 4 pairs.
• Temps girls: off white karandi shirts and orange check gowns.
• Temps male: white pant and white shirt.
• Drivers, office staff: white pant and white shirt.

To Provide the Safety shoes

Safety is given the top most priority from the factory gate to the works manager’s office.
Therefore to ensure proper safety, it is one of the duties of FLAD to provide the labor as
well as the management with the safety shoes, helmets and caps to minimize safety
 hazards on the production floor. The name, taken no, department and signature of
employee is also registered. Due to safety reasons every person who enters in factory is
provided by safety shoes.

Hiring Temporary Workers:

To fulfill the demand of labor for production purpose, temporary workers are hire for the
period of 9 months

Eligibility Criteria for Temps:

o Matriculation certificate
o Medically fit
o Not black list by the factory
o A person can not continue his job as a temp worker for consecutive 2 years

Recruitment process of Temps:

A notice is placed for the temps. Those who want to apply and are eligible for the job
come with their national ID card and matriculation certificate on the interview date. After
interview their medical test is taken which is just a formality .after clearance of medical
test the selected people’s appointment letters are issued and in the end Unilever identity
card is issued to selected person.

Above to all this eligibility criteria the most important degree is “applicants C/O”.
Basically the whole process is just a formality the selection is already had done. The
priority is given to those applicants who have “super source” (a safarish of high authority
person)

Hiring of Badli Workers:

To fulfill the need of additional workers, badli workers are hired for 120 days. The
procedure for hiring is same of temps. Badli workers are hired on the request of depts.

The approval is given by HRM.

To maintain the leave record of non-management staff including the temporary

workers
 It is a very important functional aspect of FLAD to keep the leave record of non-
management staff. There are four types of leaves that are allowed to the non-management
staff and they are the paid leaves:

• Each non-management staff is allowed 24 annual leaves

• Sick leaves are increased according to the length of service of the worker and they are
accepted if the factory doctor or any recognized medical hospital approves of it.
• Quota for causal leaves is 10 days.
• Scheduled leaves: One-week holidays are allowed to each worker from the company.
That is called the scheduled leaves.
• Special paid leaves are granted to the Union and are granted if they go on meetings, they
are at most 25 days.

FLAD maintains the annual, casual, sick and medical leaves of NMS

TYPES OF WORKERS IN THE FACTORY

There are four types of labor in the Unilever RF

• Permanent workers
• Casual or contractual workers
• Temporary workers
• Badli workers

PERMANENT WORKERS

They get all the benefits and services provided by the factory.

CASUAL WORKERS

They are on contract and that contract has a limit to it, which is in most cases one year
and can be less that that too. Company does not bear any liability for them.

TEMPORARY WORKERS

These are those workers who work in the factory for the period of 9 months. And after 9
months, hiring of new temporary workers is done.
 BADLI WORKER

These are those workers that are hired in case if there is need of additional workers and
are hired for 120 days. If any of the production departments require additional labor, they
contact the FLAD and they provide them with badli workers

Time Office:

It’s a 24 hours duty office the whole leaves, attendance, shifts and overtime system of the
factory depends upon the time office.

Responsibilities:

The main responsibilities are:

• Attendance of each employee.

• Shift allowance of each employee.
• Fulfill the need of badli.
• Preparing the daily labor force in the factory.
• Verifying the leave application and absentees.
• Controlling the punching machine
• Displaying the department wise time card for each employee.
• Preparing the allowances and shift arrangement.

Shifts in the factory:

As the factory is 24 hours working so the full day is divided in 3 shifts, shifts are:

• Shift A that starts at 0600hrs and finishes at 1400hrs

• Shift B that starts at 1400hrs and finishes at 2200hrs
• Shift C that starts at 2200hrs and finishes at 0600hrs

Every week shits are changed for each employee but the employee working in general
shift do not change their shift the general shift is:

• Shift general that starts at 0600hrs and finishes at 1500hrs

Working of punching machine and time office:

 Time officer displays employee attendance cards department wise on the board along
time machine. He displays attendance cards of those employees who have to come in that
shift. Every employee while entering in the factory takes his card from the board and
inserts it in the time machine. The time machine prints the date and arrival time of
employee on the card. At the end of shift employees insert again their card in the
punching machine and the time machine prints the time and date on it. Employee again
displays the card on the board. And at the end the time officer collects that cards and next
shift cards are displayed on the board. After collecting attendance cards the time officer
maintains the record of employees in their respective file. The list of employees is also
verified from all the departments in the factory to ensure the correct attendance and on
this basis they prepare wages. Overtime of the worker is also recorded according to this
method.

Rule and Regulations:

• Pay will be cut if the employee is late from the time office to the factory.
• No employee can go to his duty if he is late by one hour from the factory time with out
the permission of head of particular dept.

If the worker is late from the official time his pay is cut down and he is not allowed to go
to his duty unless he gets permission from the head of that particular department. Pay cut
down is in a way that if the worker is late by 1 minute that will be counted as 15 minutes
and if for 31 minutes that will be 45 minutes and 46 minutes is counted as 1 hour.

FACTORY CAFETERIA:

Factory cafeteria is a place for rest and lunch for the employees. It provides tea, lunch
and dinner to the employees both the non-management staff and management staff.

Timings:

The timings for the two are different. It starts at 1100 hrs for lunch of NMS and finishes
at 1200hrs and for MS it starts at 1300hrs and finishes at 1400hrs.

Control:

Factory cafeteria also comes under the control of FLAD and the menu, the safety and
health conditions are maintained by the manager of FLAD and that of Human Resource
Department main office.
 Price of per Lunch/Dinner

• NMS pays 0.50 paisa/lunch

• Contractual workers pay 0.75 paisa/lunch
• Management staff pays 2.75 paisa/lunch

HR main office is the heart of the human resource department of the factory. This main
office controls each and every task in the factory that is subjected to the human resource.

Organizational Chart of HR Main Office

Responsibilities of HR Main Office:

The main responsibilities of HR main office are:

• Maintaining the leave record of managers

• Preparing the annual confidential report (ACR) of NMS.
• Promoting the employees
• Maintaining the career record of every employee of factory except management
• Applying different practices to keep on motivated the employees.
• Conduct value meetings
• Enhance the loyalty of workers to the company.
• Information about the financial assistance for the employees of the factory.
• Dealing with the cases in the court.
• Negotiations with the Govt. officials
• Negotiations with the contractors of the company.
• Hearing complaints from the employees of the factory.
• Issuing company notices.
• Recruitment of apprentices.
• Preparing the induction plan for management trainees and guests.
• Advertising
• Maintaining the record of old manpower of the factory
• Announcement of retirement of NMS.
• Conducting the retirement ceremony
• Issuing the gate entry card to all the employees and internees.
• Dealing with the safety issue of the factory.
• Preparing the salary control sheets
• Attendance record pf managers.
• Maintain the audit reports of factory canteen
• Organizing the civil defense training for the employees of factory.
• Providing the education assistance to the non management staff.
• Maintaining the POD quota file.
• Keeps the update the statistical yearly return record.
• Maintaining the contract managers leave.
• Providing the opportunity of internship to students to gain the practical knowledge.
• Offering the job training for the children of NMS.
• Record the safety discipline contractors
• Providing the computer loan to the employees.
• Providing the cash assistance for the hajj for NMS.
• Issuing the charge sheet for the employees in the factory
• Expenditure authority
• Keep the environment record of the company
• Recruitment and succession plan
• Keep the record of charter of demand.
• Keep the record of third party contractors
• Dealing with EOBI (employee old age benefit institute).
• Dealing with the works council.
• Organizing the staff sports club.
• Providing the free medical allowances
• Record of professional taxes
• Maintaining the training sessions in the factory
• Upgrade the skill level of factory employees to standard.
• Supervise the affairs of estate

Now the detail of these responsibilities:

Maintaining the leave record of managers:

It is also one of the duties of HR to maintain the leave record of the managers in order to
keep a check on their absenteeism and to make payments according to their paid leave
benefits. Managers are also provided with the paid annual leaves, sick leaves and casual
leaves

Preparation of the annual confidential report (ACR) of NMS:

 Regular ACRs are prepared by the Human Resource Department and are stacked in the
employment history of the employees. Direct line manager fills out the ACRs for the
workers on his line. 360-degree feedback is done for the management in order to keep
record of their performances quarterly.

Promoting the employees:

Promotion of the employees is done on the basis of their ACRs. As the head of the
department recommend an employee for his promotion from one grade to another,
Human Resource Manager with the permission of works manager promotes him to the
next grade. The grade system in Unilever is from grade A to grade F, where Grade A is
the lowest and unskilled level and Grade F is the highest skill level. This grading is for
the NMS and is done on the basis of the performance of the worker. Promotions of
managers are done annually and on the basis of personal development program PDP and
personal development review PDR.

Maintaining the Career Record of Every Employee of Factory:

If we start from the very beginning of the jobs of HR main office, their very initial
activity is to prepare the records of the employees as soon as they join their job. In this
way, they are able to maintain a record history of the worker’s employment. In this
history they include the

o Education record of the employee

o His joining date and date on which he will be retired
o Address of the employee
o Leave record
o ACRs of the employee
o Warning letters if any
o Cash award of respective employee
o The training programs that he joined while his employment period
o His behavior and issues of any negligence if any.

This history recording does not imply on the managers.

Different practices to keep on motivating the employees:

 HR is doing different activities to keep on motivating its employees. The organization has
the opinion that motivated workers are more productive than unmotivated workers. To
motivate its employees the organization uses both intrinsic and extrinsic approaches for
motivation its employees.

Intrinsic Approach:

o Job rotation
o Job enrichment
o Job enlargement

Extrinsic Approach:

o Training
o Appreciation letters
o Bonuses
o Cash awards
o Gifts
o Shields
o Clocks
o Put the name of the workers on the notice board who perform an excellent performance.
To motivate the employees the organization has introduced a program name OFI
(Opportunity for Improvement).
o Place the picture of the employees who did extraordinary work and if they are
implementing the TPM better than others. When other sees their colleagues’ picture they
also got motivated.

Conduct value meetings:

On every Monday morning the HR dept conduct a value meeting in the main office. It’s
an excellent practice. This meeting is conducted by JM-HR. He already selects a topic
and discusses it with others. People share their experiences in it.

Enhance the loyalty of workers to the company:

Many practices are done just to increase the loyalty of employees.

o Value meetings
o Allowances
o Security etc
Information about the financial assistance for the employees of the factory:

The company provides the financial assistance to all the employees of the factory. This
financial assistance may be in the form of loan from the company, marriages, allowances
etc.

Dealing with the Cases in the Court:

Human Resource Department also deals in any judicial cases related to the factory. All
the judicial cases of Unilever RF are done at the labor court # 8 that is located in
Bahawalpur. If the case is too serious then it is taken to the national industrial relations
commission NIRC. NIRC deals with all the cases related to the Unions and Federations.
In the conflicting situations of company and union, it is the court that decides who is right
and who is wrong.

Negotiations with the Govt. officials:

HR dept has full responsibility to tackle every person in and out side the factory so govt.
officials are among those which should be handled by HR dept.

Negotiations with the contractors of the company:

There is a tender notice given for the contractors and bidding is done any contractor who
suits the company in cost effective manner will be preferred. Terms and conditions are set
by HR dept.

Considering the complaints of employees:

It’s the responsibility of the HR dept. to listen the problems of employees whatever be the
problem.

Issuing company notices:

Any company notice is first come to HR dept. and then the execution of this notice is the
responsibility of HR dept.
 Recruitment of apprentices:

The company recruits the apprentices for training. The company advertises for trainees
and then they are selected for 3 yrs.

Preparing the induction plan for management trainees and guests:

Whenever any manager joins the Unilever, it is the duty of HR to prepare his induction
program. Not only this but also if any personnel from any other factories or head office
comes to visit Unilever RF, they also prepare their induction plan. Induction plan includes
introduction and information about the operations carried out by the departments
respectively. It may include induction of safety as well as the production plant as per
requirement.

Advertising:

Another function of HR dept. is to do advertisement for contractors, job and apprentices

Maintaining the record of old manpower of the factory:

It’s the responsibility of HRD is to maintain the man power of factory.

o Permanent factory staff workers are 445

o Temporary staff workers are 392
o Average number of Badli workers is 80
o Management includes 76 managers out of which:
o There are 11 senior managers
o 32 assistant managers
o 42 junior managers

Announcement of retirement of NMS:

It is also one of the duties of Human Resource Department to plan the retirement of the
NMS because they maintain all the histories of the employees. In Unilever RF, the
retirement of the workers is done on two dates in a year. These dates are 30 th June and 31st
December. Normally the retirement age is 58 years but the services may be extended
according to the rules of the company.
 Rules for Retirement:

o If the number of sick leaves in the last eight yrs is less or equal to 208 then the employee
will automatically be promoted for the next two years to stay in factory.
o And if the number of sick leaves in the last eight years is between 208 to 300 then his
extension will depend upon his medical check up. The company doctor can recommended
for extension.
o If the number of sick leaves in last eight yrs is greater then 300 no extension will be
granted.

Conducting the retirement ceremony:

On above given dates, a retirement ceremony is conducted in the factory in which shields
and gifts are distributed among the retirees and payment of the funds is done.

Issuance the gate entry card:

It’s the responsibility of HRD to allot the security gate pass foe employees and internees
this shows that in factory Hr is the real authority of Entry and Exit of any person.

Dealing with the safety issue of the factory:

Security, health and safety aspect of consumers of UPL-RF is direct responsibility of

HRD. To secure its employees they do every thing for their protection either it is in the
form of safety shoes, helmets or it is in the form of behavioral safety and training.

Preparing the salary control sheets:

The salary control chart shows the salary increment of staff and NMS. It may be double,
single, and special increment .this all depends upon HRM .it is due on first January for
staff and first April for NMS.

Attendance record of managers:

It is also one of the duties of HR to maintain the attendance record of the managers in
order to keep a check on their absenteeism.
Maintain the audit reports of factory canteen:

The human resource department keeps the record of audit report of factory canteen. This
helps to improve the standards of factory canteen. The audit of ISO is due in August. The
ISO audit is for twice a year

Organizing the civil defense training for the employees of factory:

The company trains its people to deal with the emergency situation like fire, earthquake,
flood etc. This training is conducted yearly. Its main purpose is to improve safety
standards in the factory

Providing the Education Assistance to the Non Management Staff:

The company also provides the education assistance to all NMS in the form of grant or
Scholarship.

Maintaining the contract managers leave:

HR dept maintains the leave record of contractual workers. so the payment of pays will
be according to the leaves per month.

Providing the opportunity of internship:

As UPL has to provide the opportunity of internship to students to gain the practical
knowledge. So it’s the responsibility of HR dept.

Issue of charge sheets against any misconduct of employee:

Human Resource Department also issues the charge sheets against the employees of the
factory for the violation of company rules and regulations.

Expenditure authority:

The TA/DA is paid by the approval of HRM

Keep the environment record of the company:

The dept. also keeps the record of environmental policies of UPL

Recruitment and succession plan:

Recruitment of any level is done at Human Resource Department. It may include

recruitment for apprentices or for temporary workers or recruitment of managers. First of
all any department in need of labor e.g. if any new machine is installed then there will be
a need of additional human resource, therefore they send requests for labor along with the
ob specifications required. In order to recruit the apprentices, the company advertises for
the applications and trainees are selected for the period of three years. Human Resource
Department keeps their records. Then the recruitment of the temporaries is also done
through the applications and then they are called for the interviews. After a careful
screening the temporary workers are selected.

Recruitment of managers:

Job Requirement:

The first step is the demand or requirement of the person

Advertisement:

The recruitment procedure for the managers is quite different from the above. In order to
recruit for management, applications are called for by advertising in the leading
newspapers all over Pakistan. Best advertisement solves half of the problem. After the
applications are received, interview call letters are send to the viable applicants.

Interviews & medical: Screening through interview is done and then the selected
candidate has to undergo the necessary medical tests. This procedure is only for the
permanent employees and not for the contractual, because permanent employees are
entitled to 100% family medical cover while staff is not. After the candidates clear the
medical test, if the candidates are in greater quantity than required, the top most are
selected and are sent appointment letters.

Probation:

For managers there is 6 months probation period and for staff there is 3 months probation
period and within this period their assessment is done. In this way recruitment of the
managers is finalized.
 Dealing with EOBI:

Every organization who pays contributes to the EOBI its employees are given with this
fund. The employee must complete ten years of work and must have an age of 60.

Dealing with the works council:

There is a council in which CBA and management sits together and solves the problem

Organizing the staff sports club:

In the factory there is a club for staff. The HR dept. arranges the games and other
activities for staff

Providing the free medical allowances:

HRD provides the free medical allowances to the employees.

Record of professional taxes:

Every employee in the factory pays a certain amount to the govt. of Pakistan annually as
tax. The HRD maintains its record

Training:

For smooth production and efficient work there must be some training programs for the
workers, staff and management. The Personnel Department also performs training
function. It provides on the job training to the existing workers and arranges programs for
new employees.

The Personnel Department provides the following training facilities to management, staff
and workers.

o On the job training

o Lectures
o Seminars
o Conferences
The company has a full time training manager who conducts the different training
programs according to circumstances. The management is also sent abroad for certain
training programs.

Unions and federations:

Unless we talk about Union, Human Resource Department is incomplete. Dealing with
these agents is also a job of Human Resource managers. Unions are the collective
bargaining agents that negotiate on behalf of the workers. Unilever RF has very nice
relations with its Union and there is always a win-win situation in every negotiation. It is
very interesting to know that despite of very strong labor union, there is no any example
of strike of boycott in the history of the factory. This shows the excellent abilities of
factory staff and management. There are shop stewards that act as the bridge between the
management and the workers.

Dealing with the health and safety issues of the factory:

Unilever RF is much conscious about the health and safety. Company has its policies of
consumers, environment and labor; therefore Human Resource Department is not only
responsible of the safety of the labor inside the factory but also the environment as well.
To ensure complete safety in the factory, there is a special safety coordinator in the
factory who carries out all the safety implementations in the factory and outside

Medical Center:

The factory has a well-equipped Medical Center where doctors are available 24 hours in
order to deal with emergency cases. Inside the factory, it is the duty of Human Resource
Department to minimize the safety hazards and to ensure safety outside the factory
Human Resource Department emphasis on the behavior safety.

To avoid near miss and accidents, company follows all the pro-active and reactive
measures. Proper training of the employees is done to improve safety standards on
regular basis in the areas like fire fighting, first aid and other safety areas. Human
Resource Department issues company policies for the quality and consumers,
environment and the safety and health every year.

Human Resource Planning:

The most important function performed by the department is the Human Resource
Planning. For a smooth production there must be an effective Human Resource Planning.
 For This purpose it makes long term and short term plans to make the labor available for
production. Short term Plans are made for those places where workers have gone on
holidays or absent. Under these plans it has two types of recruitment:

• Badli
• Temporary

For long term plans workers are recruited from the temporary workers who have become
skilled one.

Preparing job specifications and recording job descriptions:

It is the duty of Human Resource Department to define the descriptions, responsibilities

and specifications of the jobs in the factory. They gather all the basic information from all
the other departments and formulate a specified format according to which they
categorize each and every worker in the factory. When in need of promotion or transfer,
these job specifications and descriptions play a very important role.

Transfers and job rotations:

Transfers and job rotation of the managers is also the responsibility of Human Resource
Department. If any better job position is vacant and personnel in the department are
eligible for it, that person is automatically justified for that position rather than hiring
from outside. The department after consulting the top management and analyzing the past
record of the workers transfers the employee. Job rotation also takes place in Unilever in
order to save the managers from boredom and monotony of the same job and to learn and
widen their experiences.

Training of the employees:

For smooth production and efficient work, there must be some training programs for the
workers, staff and management. The Human Resource Department also performs training
function. It provides on the job training to the existing workers and arranges programs for
new employees. Weekly training plan is chalked out by the Human Resource Department
and accordingly the training is carried out.

There are two specified training rooms out of which one is in the “learning and research
center” and the other is in the main office. Every day except for Friday, the training of
the employees on the basic issues is done and their training record is maintained by the
Human Resource Department. The main areas in which training is given emphasis are:
o Quality
o Motivation
o Safety specifically Behavior Safety
o Environmental safety
o TPM

Trainers in their specific areas are selected among the existing managers of that field.
Proper Feedback is taken from the trainees. Apart from this, workers are also send to
other factories for off-the-job trainings frequently. For the training need analysis, Human
resource department is following the skill gap analysis according to which the weak areas
of the workers are picked out of their jobs and then are provided training in that particular
area time and again unless or until he attains the leading edge in that area.

For the training of the management, managers are send frequently abroad for training and
sometimes to other factories or head office and organizations to sharpen their skills.

Compensation and benefits:

UniLever Pakistan Limited conducts the wages survey in the market and of the major
competitors after every two years and compares the results with its own package and if
there is any difference then adjustment is made.

The average wage rate of the worker in Unilever RF is 2900 per month with overtime. It
is the desire of Unilever RF to keep their employees satisfied in every aspect because
satisfied employees are more productive as compared to dissatisfied. Unilever RF gives
30 different types of allowances and benefits to its employees. These are annual, semi-
annual, and monthly or may be once in the whole employment period. Benefits and
compensations have already been discussed in the charter of demands section. Unilever
tries to provide maximum compensation and benefits to its employees to maximize their
motivation and satisfaction. That is why it is very interesting to know that despite of very
strong labor union, there is no any example of strike of boycott in the history of the
factory. This shows the excellent abilities of factory staff and management.

The procurement, development, compensation, integration, maintenance and separation

are the tasks that are very hard to manage. These tasks can only be done by an effective
teamwork and Human Resource Department on the whole is performing it with great
conviction and commitment.

PERFORMANCE APPRAISAL:
An evaluation sheet used in Unilever for evaluating the performance of a worker .The
sheet is filled by departmental manager and supervisor. On the basis of this evaluation
sheet the performance of the worker is being evaluated.

A sample performance appraisal is:

Charter of demands is the agreement between management and labor union. The charter
is valid for every two years and is maintained by the Human Resource Department.
Charter of demand contains all the benefits and services that should be provided to the
NMS of the factory. The charter of demand for year 2002-03 contains the following
benefits and services:

Bonus for NMS

There is bonus of Rs. 101,095,486 for NMS on the profit of the company. It is equivalent
to 6.88% of PBIT to the permanent employees.

Increase in basic salary

There is an increase of Rs. 750/- per month for those who have basic salary of Rs. 1500/-

Cost of living allowance COLA

Cost of living allowance be provided to the workers

Attendance allowance

Attendance allowance of Rs. 200/- per month is increased to Rs. 350/- per month

Attendance reward

Attendance award is Rs. 1400/- to 1700/- if the worker works for 260 days if the working
week is of 6 days and 208 days for 5 working days a week.

Breakfast, lunch and dinner allowance

Breakfast, lunch/dinner allowance is increased to Rs. 34/- from Rs. 30/-

Burial expanse

It was Rs. 25,000/- in the previous charter of demand and is now increased to Rs.
30,000/-

Canteen meal allowance

It is increased from Rs. 40/- to Rs. 44/- per day worked

Conveyance allowance

It is Rs. 3.50/- per day

Death and total disability compensation

It is Rs. 350000/- for death and is increased from Rs. 275,000/- to Rs. 350,000/- for
disability.

Gratuity, provident fund and retirement award

Gratuity is increased from 32 months to 36 months and retirement award is increased to

Rs. 10,000/- Provident fund is 16% to 18% of the profit.

Hajj assistance

Hajj assistance is increased from 90% to 95%

Leave fare assistance

Leave fare assistance is increased from Rs. 4700/- to Rs. 5500/- per annum

Marriage assistance to minorities

Marriage assistance to minorities is increased from Rs. 35,000/- to Rs. 40,000/-

Motor cycle loan and computer loan

Motor cycle loan and computer loan is increased from Rs. 50,000/- to Rs. 60,000/-

POD quota
 POD quota is increased from 38% to 40%

Rehabilitation allowance

Rehabilitation allowance is increased to Rs. 10,000/- from Rs. 7500/-

Scholarship for the children of employees

Scholarship amount is increased from Rs. 525/- to Rs. 700/-

Shift Allowance

Shift allowance is increased to Rs. 21/- for 2 shifts and Rs. 26/- for 3 shifts

Special allowance

Special allowance for the SOA is Rs. 425/- and for OA is Rs. 390/-

Special leave for federation office bearers

Special leave for federation office bearers to attend Union meetings etc. is for 10 days
and that is paid leave

Traveling entitlements and daily allowances

Union office bearers will receive Rs.1500/- per day and SOA/ F grade employees receive
Rs. 925/- per day

Leave Entitlement

1. Annual leave

• Annual leave (in hours) = 192

In days = 24

• Annual leave with en-cashable at the time of retirement only

• 48 days of A/L hrs carry over to the next year
• Maximum numbers of annual leave hrs en-cashable are 7 days
• the rate of en-cashment = basic salary* 12 /365 days
 2. Sick Leave

• sick leave in days = as per SIIB (sickness industrial injury benefit) scheme
• sick leave cannot be carried over to the next year
• sick leave is not en-cashable

3. Casual Leave

• C/L in hours = 80
• In days = 10
• Casual leave cannot be carried over to the next year
• Casual leave leaves are en-cashable= 10 days
• Rate of en-cashment = basic salary * 10 / 365 days

4. Special sick Leaves

• Maximum no of days = as per SIIB scheme

• In case of prolonged sick leaves = 1 year
• SSL is on both bases with base pay & without base pay
• SSL is granted on the description of doctor

In case of festival holidays following on a weekly rest day are substituted on the next
working day

Over Time

Formula for overtime (all type of over time) = basic salary + house rent + utilities + colas

+wheat allowance @ 1%/HRS

Medical facilities

• Full medical cover for self

• Family medicine @ 7% of gross per annum
• Family care medical allowance per annum = Rs. 3840
• First aid medical facilities to families
• Provision of Dental facilities
• Provision of vision facilities
• Cost of spectacles is not available
• Trained doctors on their own payroll
• Trained nurses on their own payroll
• First attendant on their own payroll

Insurances

Group insurance

• Death compensation = Rs.3 50,000

• Permanent total disablement = Rs. 350,000

Allowances

• Allowances added to the basic salary for provident fund deduction = COLA

Gratuity

• Rate of payment of gratuity = basic + COLA

• Upon voluntary resignation by employee = 1 month against 1 year service
• Upon retirement = max 36 gratuity
• Upon death basic + COLA + max up to 36
• Upon dismissal of employment = nil

Retirement

• Normal retirement age = 60 yrs

• Whether extendable = no
• Any other retirement benefits = rehabilitation allowance Rs. 10,000 Rehabilitation award
= Rs.10, 000 on retiring continuous 25 yrs of service

Pension

• Min service to qualify for pension = 15 yrs

• Pension scheme is only for NMS

Accommodation Allowances

• Percentage of workers provided accommodation in companies housing colony = 20

• Rent charged =HR (house rent) deduction
• Entitlement to house rent allowance = 40% of the basic salary
• Free electricity ,gas and water
• Cost to company/worker/month for maintaining workers housing colony= Rs. 6,000

Profit Participation Fund

• Profit is on basic salary

• Total amount of principal last paid by the company = Rs. 6,000/head, total amount
=2,250,000
• Total amount of interest last earned by the fund = Rs. 9290
• Number of workers last eligible to the principal amount of the fund = Rs. 375

Promotions

• Seniority bases
• Salary increase on promotion =2 increments ( 1 existing grade & 1 next grade)
• Job will be upgraded when the job content of any employee increases

Education /Scholarships

• Detail of the scholarship given to the children of employees

Type Number Term in year Amount/yr

College 14 4 YRS Rs. 8400/
candidate
School - - -

• Allowances/special increments to the graduating employees = no

• incentive for higher education/ qualification = reimbursement of education expenses +
leave according to data sheet

Expenses

Operations of Canteen

Run by company
 Meals served free of cost No
Meals served at cost Yes
Meals served at subsidized rates Yes Rs.0.50,0.75
Canteen servants 13
Total expenditure on canteen per Rs.1,126,988
month including wages of
servants
Total sale proceeds per month Rs. 9358

Cost to company/worker/month for the following facilities:

• canteen/ meal subsidy = Rs.1117

• uniform expenses =Rs. 1600 per annum
• hajj expenses = 95% + leaves
• no of workers for hajj per yr = 09 workers
• scholarships for workers children = Rs. 700 per child
• no of scholarship = 40
• chartered transport = conveyance allowance

Loans

• Loans provided by the company = provident fund, credit security loan , motor cycle loan,
computer loan
• Entitlement in each case = all grade factory staff
• Period of repayment= 3yrs,4yrs,5yrs
• Rate of interest charged = on P.F 16% , on credit security 6 %, on M/C & computer loan
free
• Rate of leave fare assistance in each grade = Rs. 5500/ annum

• They are ignoring their contractual workers .there is no proper compensation system for
them, they should give them profit participation fund, HR, education allowance etc.
• They should appreciate the innovative ideas of the workers and should reward them for
these ideas.
We have thoroughly studied the compensation system of UPL and found that UPL had a
very excellent and high-quality compensation system. They are trying hard to compensate
their employees so that they can fulfill their needs in order to motivate them.

They continuously did the surveys in the market to analyze the compensation system of
their competitors and if they found deficiency in their compensation system they try to
immediately remove it.

HRD has been successful in retaining its employees by off and on offering a clearly
defined reward and incentive system.