Executive Summary:

One sector in Pakistan, which has grown significantly in the past, the
Home Appliances Division. There is great competition in this sector and PEL has this contest
with great flair survived. PEL enjoys a good reputation in the market for household appliances.
In PEL targets two weights divided inn 60% and 40% goals. First company completes 60% set
by executives and departmental level. Based on the performance of the Company Targets will
report performance assessment of each employee for the incentives and allowances. PEL use the
BEL GRAD method of performance appraisal. Ijn BEL GRAD method goals are divided into
categories A, B, C Top 20% Middle 60%, and a layer of another 20%.
PEL is in a growth phase in the sector. This sector has a lot of potential and PEL can take
advantage of this fact.
PEL last three years to upgrade its system and now add any updates to the software and set the
goals through software and send it to all employees. We take orientation internal portal of PEL.
Our experience was good and learnable in PEL.
We also got a chance to improve our decision-making. Moreover, Project on PEL also in
performance and helped judge. We got to know the importance of teamwork in PEL Company.
In the end, has all the experience we have gained helped during our stay at the PEL in a
performance appraisal system. We can say without any doubt that HR functions including
recruitment and selection, training and development, appraisal and management of the system
and special appraisal and assessment interviews system that we have gained during the project
PEL will be applied to where we go work in the future
Company History:
Pak Elektron Ltd (PEL) was established in 1956 with technical collaboration
of M / S AEG Germany and is manufacturing unit in Pakistan oldest composite electrical
equipment.
In October 1978 the company was acquired by the group Saigol, which is one of the industrial
and commercial leaders of Pakistan groups. Products manufactured by PEL have always been of
a high standard and the name "PEL stands for quality throughout Pakistan." PEL, since its
inception, has been acting as an institution that works for the promotion and development of
engineering and modern technology in Pakistan since its inception, the company has been
working for the progress and development of knowledge engineering in Pakistan . The company
has produced hundreds of qualified engineers and technicians through their learning programs
1

and worker training programs. PEL has been continually adding new products to its range. As a
result, PEL has been a significant increase in its sales volume during the last ten years
In 1978, the Group of Companies purchased major shares Saigol Pak Electron Limited. At that
time, the company only manufactured transformers and cells. With Saigols management, PEL
began expanding its range of products by entering into the manufacture of the air conditioner.
In 1981, PEL window type air conditioners were introduced in technical collaboration with the
General Corporation of Japan.
In 1986/87 the company began manufacturing refrigerators in technical collaboration with M / s
IAR-SILTAL Italy.
In 1987, it freezers PEL also introduced in technical collaboration with M / s Ariston Italy.
In 2006, the Company has begun production of air conditioners split type of various capacities
and customer choice has changed type of split type window. The product has been well received
in the market. This encourages the company to multiply its production in the coming year.
Today, PEL has become a household name. Their products are not only in high demand in the
local market, but the company has begun exporting its products appliances division.
Company Details:
Internal Environment:
Strategic Goals and objectives of the organization:
Each company set its goals through the
vision and mission statement. Even if the company does not put its mission and vision, it is likely
that the company does not exist in the market and cannot know why the company exists, and
where that is headed. These fundamental elements provide a frame work, against which the
company establishes goals, designed to help them move towards its vision to achieve its mission.
The Company is fully dependent on the vision and mission statements, because, through the
vision and mission statement, everyone knows the area and knows the direction of the
organization. Without a vision and mission statement one cannot know the direction of the
company.
Strategic goals PEL is to provide quality products and services to meet the needs of our
customers and maximize profits for all stakeholders through the optimal use of resources. The
company wants to promote good governance, corporate values and a safe working environment
with a strong sense of social responsibility
Objectives:
The company does not affect quality, low-cost production. With another production
company to export its products to other countries and generate more profit. Employees of the
2

company's total involvement of all products and services through continuous improvement.
Providing innovative and high quality products to understand their needs and expectation of
hope for their future or are required to achieve total customer satisfaction by.
In every area of the organization and functions of yearly targets for quality improvement
monitoring.
The company's professional team of electrical and home appliance division through reliable
equipment to improve the quality of life in the home of Pakistan is trying to.
The growth in the size of the organization to develop better business practices and greater
resources creates.
The goal of the electronics unit to acquire the entire product family.
Work force Details and characteristics:
Employees are the basic unit for the every company. Without employees cannot achieve his
goals. In PEL 800 to 900 employees are working in different departments on different scales.
PEL is the male oriented because 50 to 60 females are working in different departments.

Skilled Vs. Unskilled:

Unskilled:

100

(Loading, Unloading staff)

Skilled:

800

(CEO to Production level)

Managerial Vs. Non-managerial Staff:

Managerial:

35

(Lead on different Department)

Non-Managerial:

765

(Other Employees)

Work force Characteristics:

Average Age:

45 year

Average Tenure:

6 to 7 year

Turnover Rate:

Now 10% to 12% (Before 5 year 25%)

Overview HR Department of PEL:

.
BP PEL model (Use the Business Partner) to HR
department. HR business partner model, Human Resource Department of Business Meat present,
3

is participating in the planning of the strategic objectives to help in the future. On the contrary,
such benefits, payroll and employees in relation to the H duty more specifically, on the existing
employees and recruiting new HR Department, will seek to add the values of the company and
supervises the placement, training and advancement. PEL is fully involved in the strategic
objectives of the HR department when it comes to weight, is designed to set goals

Source:
https://www.google.com.pk/url?
sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http%3A%2F
%2Fwww.hrmpictures.com%2Fhr-business-partnershipmodel.html&ei=l4ZhVb3GIMbTU6PugdAJ&bvm=bv.93990622,d.d24&psig=AFQjCNEIujgyh
CaakkXxJyNK1FRlOdb-PQ&ust=1432541208108362

Advantages:
In business partner model the HR department participate in strategic planning to help for
improve employees efficiency and help for management in other decision making. The business
model relieves pressure from management to improve employees job skills for efficiency and
4

productivity, as well as identifying, development and grooming key elements for advancement.
Human resource personnel are also responsible for analyzing employee review data. This allows
HR personnel to recognize strengths, which may further develop to place employees more
efficiently, and weaknesses which they may correct with further job skills training or disciplinary
action.
Challenges:
The HR department is already overworked with everyday employees relation issues; they may
not be adequate time and personnel to offer to partner with the business for additional function.
The business partner model requires HR to be involved in almost every aspect of the business,
including production statistics, financial status and sales projections. In many time HR
department busy in recruitment and selection of employees, they cannot fully participate in other
business functions. Few strategies are confidential they cannot share with overall HR
department.
Other Departments of PEL:

Production Department
Financial Department
Marketing Department
Human Resource Department
Administration Department
Research and Development Department

Production Department:
Production department are manufacturing of product. Top management gives target to this
department to produce a specific number of products according to previous production data and
market condition. This department is responsible for quality control. It sees there are no defects
or any shortcoming in the product. It also oversees new technology and updates his machinery
according to the requirement of production.
Financial Department:
Financial department is divided in to three departments,
Finance
Accounts
Credit Control

Finance:
Accounts deal with banks
Accounts:
Accounts deal with costing system, Billing and Booking transaction as well as auditing.
Credit Control:
This section of Finance Department
Deal with credit and recovery procedure
Marketing Department:
Brand Manager
Manager Distribution Credit
Customer Services Officer
Institutional Sales Manager
There are six branches of PEL in Pakistan.
They are headed by Regional Sales Manager. RSM
The sales policies recommended by head office for all regions. The policies for customer
services are define by General Manager Customer Services at head office. Target are given to
regional Sales Manager of each particular region and then the RSM give further target and
incentives to sales officer to achieve the given targets.
In Lahore the Market divided into three areas,
Abid Market
Patiala Market
Out Skirts

In Lahore there is
6

Regional Sales Manager

Area Sales Manager

Sales Executives

10

Marketing Department control the 4Ps in the company i.e. Product, Promotion, Placement and
Pricing. They are also responsible for the alternative alteration is Modification in the different
brands of the company and of new products etc. They can suggest color change, size of product
etc. which is being demanded by customers. They try to bring innovation in the product to make
them attractive for the customers and to compete with the competitors i.e. Dawlance, General,
and Waves etc.
Human Resource Department:
HR Perform these Functions:
Recruiting
Selecting
Training
Transfer
Performance Appraisal
Firing Decision
Labor affair
Staff Welfare
Research and Development Department:
This department is most important regarding the future of company as a market leader this
department is constantly in touch with market to know about customer preference and
specification for products.
After analysis of customer expectations these departments then give its recommendations to the
top management to being changes in the product for market success. These departments conduct
survey in market to get information. This department is also responsible for bringing new
technologies in the product.

Organizational Chart:

SWOT Analysis:
Strength:
Strong Brand Name
Strong Dealer Network
Market leader in WRAC
Strategic Alliance with LG
Contract with Government of the Punjab
Weaknesses:
Financial Problem
Lack of Advertisement
Inappropriate Working of HR Department
System Variation
High price
Low satisfaction of employees
Opportunities:
Exploration of Market in Pakistan
Export opportunities
Increase in Product Range
Increasing investment in Power sector
Threats:
Strong competition with Chinese Product
Devaluation of Currency
Rapid change in Government Policies
High tax
No availability of new Technology and High tax rate on imports
9

HRM merits and working of HPWS:

We are using HR BP model. We follow business partner,
center of excellence, support department, HR business partner, HR business associates. In center
of excellence included reward specialist and acquisition specialist. We are not using HPWS. In
PEL employees using internally developed system. Goals set in the start of the year. On the basis
of these goals we evaluate employee performance in month of June & Dec. On the basis of these
evaluation we create a category A, B,C.
Differentiate & separation of employees:
Goals set in the start of the year. We select a
minimum four goals and maximum 6 goals. For the evaluation of a new employees internal
portal that can be excess anywhere. In these portal employees set goals. Goals are predefined
way. They are divided in to points 10-12-15-18. These points must be 60%. Then employee
reviewed. Then include a 40% competency rate. Competency rate in every job already default
set. Then we give a ranking to the employees. On the basis of goal give 60% & 40% competency
rate. This evaluation two times in a year (June, Dec). The basic purpose of this evaluation we get
a low performance and high performance employees. High performance employees get rewards.
On the basis of the 40/60% evaluation competency Bell shape curve is derived. This bell has a
three categories A.B.C. A is a high performance. B is a medium performance. C is a lower
performance employee.
Internal & Outside candidates:
The internal employee refers for internal jobs. But PEL dont
concentrate on internal candidates. We are mostly using LinkedIn. We are attend jobs fair. On our
official website email address is available. Employees are using this email address for CV.
Internally job hiring ration is 1 or 2.
Test selection:
We are take test only fresh graduates. They have not a practical experience in any
organization. Otherwise we conduct interviews
Negligent hiring:
Negligent hiring is never happening in pel. We are hiring on the basis of
probation evaluation after three months on the basis of experience for manager posting. A fresh
employees get training .Their time period of probation is six month.. If a person is able to
perform during that period. He get confirmed at the job. Otherwise e we will regret it.
Structured or Unstructured interview:

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We are conducting a structured interview. Questions

about HR are fix. We just change a little bit statement of a question. If person is non-experience
than we get a structure form questions. If an employee is experiences than form is half
structured. In structured interview the employee knows about the job role and duties. He know
very well about our path way. Thats why we prefer on structured interview.
Conduct an interview executive and lower level:
Interview of lower level cannot conduct HR
department. Administration department deal lower level candidates. HR department deal only
with manager or executive level. Hiring of CEO through group discussion. Questionnaire or
interviews never evaluate the performance of CEO rank personality. Questionnaire interview are
inadequate in these kind of case.
Training of new employees:
If an employee in a sales department than training will be a weekly
basis. Manager rank employee training duration is one week. Every Monday our induction day.
We conduct a orientation of each department. After vesting these department employees know
about the rules, regulations & policies.
Motivation of the employees:
HR business model implemented this year when we identify the
role and then read this model or take presentation on daily basis or train the employee and share
information and interact the customer. In this process we did satisfied of his customer and
employees. This is very helpful to start one window operation.
Pay rate plane:
The pay rate of his company mostly relay on market based. When we develop a
new job description the pay rate is set to market of similar this job. To check the market pay
plane we evaluate the pay rates on mercer pay plane.
HR focuses on Job evaluation:
Our job evaluation is focus. But we have a plane to implement on
rotational plan and developmental plan. The job evaluation very good in the organization and not
affect the appraisal.
Incentives:
We are offering our employee EOBI life insurance, mobile allowance health,
allowance and car allowance. We are providing the employees group life insurance included
child and spouse.

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Motivation of employees:
We motivated the employees through annul reward and recognition
and some type of incentive on the basis of performance.

How Performance Appraisal System work in PEL:

In 360 degree performance appraisal system are working in PEL. In 360 degree performance
appraisal system every person are involve in the performance appraisal system. In this system
subordinates can be appraisal of his supreme authority. In PEL goals are set for one year. Every
year its goals updated according to accomplish of task.
PEL BELLGRADE METHOD use in Organization
A

20%

Top

(Corporate/ Executives)

60%

Middle

(Departmental Goals)

20%

Low

(Others)

In PEL goals are divided into weights:

PAK ELECTRON LIMITED

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PERFORMANCE EVA LVATION

FOR EMPLOYEES REPRESENTED BY LOCAL 2324, PEL
Employee Name: Click here to enter text
Position Title: Click here to enter text

BU ID: Click here to enter text:

Department: Click here to enter text

Evaluator Name: Click here to

enter text Date of Hire: Click
here to enter text.

Date in Current Position: Click here to

enter text. Evaluation Period: Click

Date of Appraisal: Click

here to enter text.

PURPOSE OF PERFORMANCE APPRAISALS

The written performance appraisal is a formal assessment of your job performance based on
performance expectations previously identified and shared with you. Informal and formal
performance assessment is an on-going aspect of effective management and communication and
the written performance appraisal should not replace the day to day communication of
expectations.
Scoring Categories:
Exceptional = 5 points; Exceeds Expectations = 4 points; Meets Standards = 3
points; Below Standard = 2 points; Unacceptable = I point
5.

INTERPERSONAL SKILLS:

Extent to which you are professional, courteous, respectful, and cooperative during
workplace interactions in accordance with applicable department and PEL policies and
procedures,

E xcep tion al:

You are always professional, courteous, respectful and cooperative during all workplace
interactions and your behavior is always exemplary regardless of the circumstances.

Exceeds Expectations:

You are regularly professional, courteous, respectful and cooperative during all
workplace interactions and your behavior is Appropriate regardless of the circumstances.

Meets Expectations:

You are sufficiently, professional, courteous, respectful and cooperative during workplace
interactions promoting a pleasant and productive work environment and you address
workplace disagreements or discord in an appropriate manner.
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Below Expectations:

Your interpersonal skills are deficient enough to occasionally impair the orderly and efficient
operation of the department.

Unacceptable:

You are unable or unwilling to observe reasonable standards of courtesy or

professionalism when interacting with others while at work.
Comments:
Click here to enter text.
6. .

ATTENDANCE AND PU CTUALITY:

Extent to which you are present and adhere to applicable department and PEL policies
and procedures regarding attendance, commitments and obligations in accordance with
prescribed schedules and deadlines. Please note that approved FMLA leaves will not be
counted against the employees.

E xcep tion al:

You are always punctual and present and always follow the PEL policies and procedures with
regards to accrued vacation and personal time. You are never absent except for the pre-arranged
use of accrued vacation or personal time. You always fulfill your job commitments and
obligations regardless of tile circumstances.

E xceeds Expectations:

You are almost always punctual and always follow the PEL policies and procedures with regard
to accrued vacation and Personal time. You only occasionally use a sick day and always follow
department procedures when notifying your Supervisor of a sick day. You almost always fulfill
your job commitments and obligations regardless of the circumstances.

Meets Expectations:

You are consistently punctual and present and always follow the PEL policies and
procedures with regards to accrued vacation and personal time. You always follow
department procedures when notifying your supervisor of a sick day and never use more
sick time than what has been accrued unless dictated by a medical emergency. You
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consistently fulfill your job commitments and obligations even under challenging
circumstances.

Below Expectations:

You are frequently late or absent and usually follow the PEL policies and procedures
with regards to accrued vacation and personal time. You follow his/her department
procedures when notifying your supervisor of a sick day and sometimes exceed accrued
sick time. You often fail to fulfill job commitments and obligations and cannot be
counted on in emergencies.

Unacceptable:

You are regularly late or absent and have difficulty following the PEL policies and procedures
with regards to accrued vacation and personal time. You do not follow department procedures
when notifying your supervisor of a sick day and often exceed accrued sick time. You regularly
fail to fulfill job commitments and obligations and are not dependable under even ordinary
circumstances.

COMMENTS:
Click here to enter text
OVERALL RATING:
27-30 = Exceptional
22-26 = Exceeds
Expectations 17-21 =
Meets Expectations
10-16 = Below
Expectations 6-9=

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Choose an item
Choose an item
Choose an item
Choose an item
Choose an item

GOALS FOR NEXT EVALUATION PERIOD:

Click here to enter text
Supervisor's Signature: ___________________Date:
Employee's Signature: _________________________________________ Date:
EMPLOYEECOMM
ENTS:
Click here to enter
text.
I have been given a copy of this performance evaluation and have been notified that a copy will
be placed in my personnel file in Human Resources.
Employee Signature:____________ Date:___________
Gap Analysis:
Employees are not easily meet to managers
Over time but over time charges low
Managers are object oriented without care of employees
Low Medical Allowances
High Favoritism (Performance Appraisal Report)
Hiring on low merit Basis
Low Marketing Information
No proper work shop conduct
No extra curriculum activities arrange by organization
Employees complaints are not properly registered and not act on time.

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