Edita Project

Food Industries S.A.E.

Preformed By :

Abd El Rahman Ali

Adham Ibrahim
Aisha Gamal
Mamdouh Fahmy
Yasmine Sami

Group 1

0
Table of Content:

1- ……………………………………………….…………..Introduction.

 ……………………………………………………….Products.
 …………………………………………….….Sub Companies.
 ……………………………………………………….Location.
 .........................................................…...No. of employees.
 ……………………………………………………Stakeholders.
 ……………………………………………………Competitors.
 ………………………………………… ……….Market share .
2- …………………………………………….…..…Executive Summary.

 ………………………………….…………………..Mission.
 ………………………………….…………………....Vision.
 ………………….…………..………………….Core Values.
3- ………………………………………….……Environmental scanning.
 ………………………………………………..PEST Analysis.
 ………………………………………………SWOT Analysis.

4- ………………………………………………….Strategy formulation.
 …………………………..……..Formulation of HR Strategy.
 …………………………………Edita Organizational structure.
 …………………………………..Edita Organizational culture.
5- ………………………………………..……Strategy Implementation.
 ……………………..…………… EDITA's HR Scope of work.
 ……………………………………….….Recruitment Strategy.
 ……………………………………...Training & Development.
 …………………………...Compensation and Benefits strategy.
6- ……………………………….………….…….….Strategy Evaluation.
 ………Culture, organization, people, systems (COPS), checklist.
 ………………………………….HR strategy evaluation Metrics.

7- …………………………………………..………………….Conclusion.
8- …………………………………………...……………..…List of Forms.

1 Graduation Project
 1- Introduction:

EDITA S.A.E

CHIPITA DIGMA
EDITA S.A.E ACTIS
S.A.E Trading S.A.E

 About EDITA

EDITA Food Industries was established in 1996, and now is one of the leading
FMCG companies in Egypt and the Middle East.

Edita first entered the Egyptian market with its unique concept of packaged on-
the-go chocolate filled croissant under the brand Molto. Molto soon became
generic name for packed croissant in Egypt and by this product EDITA
became the market leader in the Croissant, Cakes & Bread snacks categories
in Egypt. EDITA brands are now part of every day's life to consumers in Egypt
and more than 15 other markets in Middle East & Africa. As reflected in our
vision, International markets support is of local importance in our strategy.

The company is well known for its consistently high quality products and strong
brands and not only producing these high quality products but also it acts as
the sole regional distributor of several brands of imported sweeteners, olive
oils, & pasta.

We have Over 5400 people work hard at Edita's four production facilities in
order to delight consumers with superior quality products. Two of our
production facilities are located in the 6th of October city, one in the 10th of
Ramadan city and a fourth in Beni suef industrial zone to the south of Cairo

2 Graduation Project
  EDITA Confectionary

EDITA Confectionary was established in 2008 as a joint venture between

edita food industries and Confindel Limited (Cyprus).
The company offers a wide range of premium quality confectionaries
including hard candies, Toffees and jelly. edita confectionary is located at
the industrial zone, Beni Suif.

 Chipita

EDITA's sister company, Chipita S.A. is a company of Greek origin and a

strong international footprint. Chipita S.A. produces and markets
flour based snacks & chocolate confectioneries. With an international
presence in more than 35 countries, Chipita has become a strong player
in the sweet & savory snacks market.

 Digma

EDITA's sister company, Digma Trading S.A.E.’s was established in

1992. Digma’s, continual commitment to quality services and strong
brand portfolio, has made it one of the largest distribution companies in
Egypt and the company of choice for highly qualified sales personnel.

Currently the company has 8 branches located in Cairo, Alexandria,

Ismailia, Tanta, Mansoura, Zagazig,, Assuit and Luxor, and planned to
reach 21 branches by end of 2013. The company is deploying the most
up to date techniques and tools in order to increase efficiency and
ensure accuracy and timely information.

 ACTIS

Actis, a global pan-emerging markets private equity firm, invested $102m

to acquire a 30% stake of Edita Food Industries, becoming the second
largest stakeholder in the country’s second largest snack food company.

3 Graduation Project
Edita Have more than 8 products in the market :

1. Molto Family: The first and generic brand name of packed

croissant in Egypt and neighboring countries.

2. Todo Family: edita's newest and most premium range of cakes.

With its sweet taste, variety of
offering and sophisticated
packaged

3. Bake Family: Bake Rolz is BAKED

not fried salty snack, made of 100%
wheat. Crunchy in every bite with a
rich toasted taste

4. Mimix Family: Available in three families, Toffee, Candy, and

Jelly. With its wide variety of flavors, types, shapes, colors, and
unique ingredients

5. Hostess Family: The most widely spread and the most liked range
of cakes. Available in three brands

6. Freska Family: Prepare for the filling, most premium and most
indulging wafer product to ever hit the market;

7. BARILLA: Pasta is one of the key ancient pillars of Italian

gastronomy also one of the most popular in the world. Barilla’s goal
is to share what every Italian knows about eating for enjoyment,
health and good living.

8. Sparta : Extra virgin olive oil of supreme quality with a velvet

essence.
4 Graduation Project
  Competitors

1. AL Faysal Group ( Brunch)

2. Faragallah Group
3. Monginis Foods
4. Ocean Foods
5. el shamadan co. for food industries S.A.E. ( Al Kowery Group )
6. Sima food industry
7. Cadbury / BimBim
8. Honeywell
9. Biscomisr
10. Family Foods (Kraft)
11. Auer-Portsaid

 EDITA's Market Share in Egypt:

1- Egyptians throughout history have been fond of sweets and snacks.

Sweet and salty treats became a part of the Egyptian culture and the
tradition has launched an industry that continues to grow.

2- Snacks, as a sector, are the least affected by inflation due to high

demand and low price. Salty snacks are particularly popular and make
up 44 percent of the confectionary market Chocolates and biscuits are
the second biggest categories with 18 percent and 14 percent of the
market respectively. The cake and croissants category represents 13
percent of the confectionary market and is dominated by a large local
manufacturer who has almost LE 1 billion in annual sales.

3- Edita for Food Industries was the company with the largest market share
at 6%. This is due to the company’s wide portfolio of products such as
Molto, Hostess Cakes. The company has a strong distribution system
and very effective distribution channels.

5 Graduation Project
 Snacking Market Share in Egypt
Cakes &
Corissants
13%

Another Sugary
Products
11%
Salty snacks
44%
Biscuits
14%
Chocolate
18%

2- Executive Summary

 Mission :

We are a consumer centric Company with passion for quality committed to

making a available variety of unique, fresh and tasty products. We use the best
ingredients, modern technology and food safety practices. We invest in our
people and brands while our actions guided by a sincere concern for our social
responsibilities.

 Vision :

To be the pioneering food conglomerate in the Middle East and Africa through
creating loved brands produced, distributed and supported by expert and
passionate people. This will be measured by market share, consumer loyalty
and maximizing returns on shareholder equity.

 Core Values
1. Team work & communication.
2. Respect.
3. Integrity.
4. Commitment and passion.
5. Excellent.

6 Graduation Project
  Competency Framework

Competency Based HR Management is adopted to provide a common

framework for all edita’s employees, through which they can achieve the
organization’s strategic objectives, they also provide common, organization-
wide standards for promotions, succession planning based on a “best fit”
between employee’s personal profile and required competency level for each
job. Competencies are integrated into various HR functions; including
Performance Management, Training & Development, Compensation &
Benefits, Recruitment, Succession Planning, Talent Management. These
competencies help edita achieve its strategic objectives through increasing the
value provided by their human capital.

Coaching

Ability to provide guidance and feedback to help an employee or group of

employees strengthen their knowledge, skills and attitudes to accomplish a
task or solve a problem, which in turn should improve job performance.

7 Graduation Project
Teamwork

Works cooperatively with others, contributes to and accepts group opinion; and
understands that organizational and team goals take priority over individual
goals

Initiative

Taking prompt action to accomplish objectives; taking action to achieve goals

beyond what is required; regularly creating and taking advantage of learning
opportunities, being proactive

Flexibility

Adapts to change and different ways of doing things quickly and positively;
does not shy away from addressing setbacks or ambiguity; deals effectively
with a variety of people and situations; appropriately adapts one’s thinking or
approach as the situation changes.

Problem Solving & Decision Making

Identifying and understanding issues and problems; using effective

approaches for choosing and developing appropriate solutions; taking action
that is consistent with available facts, constraints, and probable consequences

Communication

Clearly expressing information and ideas through a variety of media to

individuals or groups in a manner that engages the audience and helps them
understand and retain the message

Customer Orientation

Identifying and responding to current and future customer needs; resolving

customer problems, providing service excellence to internal and external
customer through valuing customer satisfaction.

8 Graduation Project
Accountability

Taking personal responsibility for all work activities and personal actions,
implementing decisions that have been agreed upon, and acknowledging
mistakes and failures without blaming others

3- Environmental scanning

 External Environment Analysis PEST:

 Political analysis:

Since the 2011 revolution the Egyptian Political and Economic

Situation have gone from bad to worse , This was due to the
Successive events that faced our Egypt starting from The rule of
the military council that lead to a lot of Bloody events and then the
rule of the Muslim brotherhood through the President Mohamed
Morsi .

On June 30th, 2013 another popular revolution happened against

the Muslim Brotherhood regime and carried the Egyptian army
chief General Abdul Fatah Al-Sisi to remove the country's then-
incumbent president Mohamed Morsi from power and suspended
the Egyptian constitution in a popularly supported people's
revolution. Al-Sisi declared Chief Justice of the Supreme
Constitutional Court of Egypt Adly Mansour as the interim
president of Egypt and accordingly a lot of changes happed in
Different Areas:

 Internal Affairs :
 Temporary president
 We are working with a Caretaker government

9 Graduation Project
  The temporary president assigned the 50th committee to set
the new constitution within the next three months
 Also presidential election will take place recently which lead
to a lot of fears and unclarity about the new president Trends.
 Reduction of the old president supporters protesting and
lead to increasing the internal stability.

 External affairs
 Egypt gain the support of most of the Arab countries followed
by a lot of financial aids.
 The deterioration of the political situation with some of the
European countries and USA and the threatened to cut off
aids also indicate a future risk we may face.
 The travel warning to Egypt may pay some foreign tourism
companies to suspend all flights to Egypt and after 30th June
revolution Egypt witnessed a major boom in the tourism
sector.

 Economical Sector

 Egypt Stock Exchange witnessed during the last two weeks,

a significant increase in turnover with major support from the
central bank cut interest rates twice in a row, and Egypt's
central bank cut interest rates last Thursday on deposits to
8.75 percent and interest rates on lending to 9.75 percent.
 No stability regarding the dollar price
 New tax law introduced with allot of changes
 Change the corporate tax from 20% to 25% with will lead to
the reduction in the profit
 The governmental decisions toward the trade and Traffic.

10 Graduation Project
  The employment law in Egypt will help us in the recruitment
process and to hires the instraturs we want from Egypt and
outside Egypt
 A lot of Arab countries provide the help to Egypt

 Economic analysis

1- Economic growth:
- After unrest erupted in January 2011, the political uncertainty at
the same time caused economic growth to slow significantly,
reducing the government's revenues. Tourism, manufacturing,
and construction were among the hardest hit sectors of the

Egyptian economy, and economic growth is likely to remain

slow during the next several years. The government drew down
foreign exchange reserves by more than 50% in 2011 and 2012
to support the Egyptian pound and the dearth of foreign
financial assistance - as a result of unsuccessful negotiations
with the International Monetary Fund over a multi-billion dollar
loan agreement which have dragged on more than 20 months -
could precipitate fiscal and balance of payments crises in 2013.

2- Interest rates:
 The Monetary Policy Committee (MPC) decided to keep the
benchmark interest rate in Egypt at 9.75 percent

 The monthly developments in both headline and core

inflation since the beginning of the year were largely driven
by broad based increases in food and non-food prices on the
back of the recent movements in the exchange rate and
diesel distribution bottlenecks across the country. While the

11 Graduation Project
 probability of a rebound in international food prices is less
likely in light of recent global developments, the re-
emergence of local supply bottlenecks and distortions in the
distribution channels pose upside risks to the inflation
outlook.

3- Inflation rate:

 The inflation rate in Egypt was recorded at 9.74 percent in

August of 2013.the headline Consumer Price Index (CPI)
measures the change in the cost of a fixed basket of goods
and services that are purchased by a representative sample
of households from urban areas, which include Cairo,
Alexandria, urban Lower Egypt, urban Upper Egypt, Canal
cities and Frontier governorates. The most important
categories in the headline CPI are Food and Beverages (40
percent of total weight).

 Sociocultural Analysis

Cultural aspects

 Parents are used to give their children’s needs more priority as a

part of Care and tenderness
 Children in Egypt consider the candy Cause of happiness
 Candy is considered as a kind of entertainment for youth
 The most preferable products for Egyptians is the cheapest with
average level of quality
 Recently, Egypt has seen an increase in health awareness so
customers became more selective in choosing their children food

12 Graduation Project
Life Style

 Egyptians’ life is very congested, dynamic, and full of noise

specially youth they are not committed to meals time so they used
to take some candies during the day
 They are very sociable and used to exchange different kinds of
candies as a way of showing friendship
 Candy is considered the breakfast meal for children during the
school day and the dessert after lunch

Age distribution

 Age distribution in Egypt in 2008

0-14 years 15-64 years 65 years and over

31.8% 63.5% 4.7%

Males 13,292,961 Males 26,257,440 Males 1,636,560

Females 12,690,711 Females 25,627,390 Females 2,208,455

 Age distribution in Egypt in 2010

0-14 years 15-64 years 65 years and over

33% 62.7% 4.3%

Males 13,308,407 Males 25,138,546 Males 1,546,774

Females 12,711,900 Females 24,342,230 Females 1,818,778

13 Graduation Project
  Technological Analysis:

 Emerging information and communication technology is setting

the pace for a changing, competitive and dynamic global
marketplace and representing an enabling platform for business
and socioeconomic development in the 21st century
 New technology helps in economizing the scale of production;
this means that new technology helps in increasing the level of
production, & reducing the costs of inputs, & maximizing the
level of profits
 Also leads to discoveries & innovations & further improvements
in technology so as to improve perfections in the production
process
 Egypt among other nations strived to develop its national
information and communication infrastructure (NICI) plans
strategies and policies that articulate long-term policy,
infrastructure, content and application as an integral part of
overall national development
 A number of policies have been implemented to attract foreign
investment in IT outsourcing, including local employment
subsidies, lower corporate taxes and deductions for training
costs while the IT spending is expected to increase from
US$1.3bn in 2010 to US$2.1bn by 2014

 Internal Environment Analysis SWOT:

14 Graduation Project
 Weaknesse
Strengths:
1- Low operational costs
1- low exports levels due to the
nature of product
2- can control the production volume
3- having well-known brands in FMCG 2- Future debt rating ( due to the
sector large number of shareholders )
4- large Market Share 3- Inability to invest in research
5- Low prices that satisfy customer needs. and development ( Due to the
6- Long distribution coverage among Egypt exist of large number of
and the middle east competitors )
7- Presence in more than 35 countries
4- Low salary for labors
8- launching new products adding to the
company and increasing brand awarness. 5- Highly turnover rate
9- Strong Marketing companies
6- Lack of competitive salary
10- the market leader in the Croissant, structure
Cakes & Bread snacks in Egypt
7- Working conditions
8- Technological problems due to
old software & old servers

Swot

Threats:
Opportunities: 1- Tax and regulatory structure
1- High demand on our product in both
2- The emergence of competitors with
urban and rural areas
the same quality and price
2- large target segment in meadel east (
kids & youth ) 3-Competition from unbranded and
local products
3- high spending on consumer goods.
4- Lower price and smaller packs are also
4-Removal of import restrictions
likely to drive resulting in replacing of domestic
brands .
5- potential up trading for major FMCG
products 5-Increase in labor costs
6- Egyptisn current population growth 6- -Technological problems
combined with externsive distribution &
7-Increasing rates of interest Cash flow
low unit prices will lead to remaining
popular. 8- Economic Conditios post revolution
& inflation.

15 Graduation Project
 4- Strategic Formulation

- Vertical

Growth Strategy

Differantiation
(forward)
Prospector

- Horizontal
- Related
Diversification
(Concentric)

 Generic Strategy

Prospector: identification of new market opportunities through release new

products and design a strong Market campaigns for each product.

 Corporate Strategy

Growth Strategy

Concentration:

 Vertical integration:

Forward – Organization becomes its own distributor through establishing a

trade company to sell its product and distribute it into market where it opens
outlets in different areas in Egypt, Middle East and North Africa.

 Horizontal integration:

- Growth achieved by expanding product lines into other geographic

location by opening outlets in different places to cover a wide areas in
Egypt like Cairo, Giza , Damiat .. etc and in Middle East like Palestine ,
Libya and in north Africa, and by building new factories in different areas

16 Graduation Project
 - Expanding product range into existing markets through releasing
different flavors from the same product or different products in the same
category like TODO, HOHOS , Freska etc.
- By buying the rights of the brands from the own company and selling it in
different places and that's what happened Edita owns the Hohos,
twinkies and tiger tail brands in Egypt , Libya , Jordan and Palestine after
buying the rights.

 Related Diversification (Concentric):

Refers to diversification into a related industry to achieve strategic fit

through establishing a sister company with different products to gain a
market share.

 Business Strategy:

Differentiation:

Differentiation strategy is a near-opposite approach to cost leadership. A

firm employing this strategy adds additional features to its products or
services to make them above average in the market. Key factors for
success with a differentiation strategy are that customers must desire the
extra features and be willing to pay a price premium for them. The cost of
providing the extras must be less than the price premium they are prepared
to pay.

Strategy Advantages Disadvantages

Premium pricing can The source of

mean differentiation

more money is can become stale over

available for time
Differentiation
activities that maintain and new “extras” need
the to

advantage, such as be developed

R&D
17 Graduation Project
  HR Strategy:

Corporate Strategy
Business Strategy
HR Strategy
Growth

Vertical Integration Horizontal Integration Concentric Differentiation

1. Recruit and retain high quality people with innovative skills and a good track, record in
innovation with innovative skills and a good track
2. College Hiring Trend through "Talent Management Program" where the trainees have a
cross functional hands on experience in addition to wide exposure to top notch training
programs.
3. Use sophisticated selection procedures to recruit people who are likely to deliver quality
Recruitment
and high levels of customer service
4. Clear Job description for each employee through great supervision.
5. Putting a clear career path for the employee to provide the right employee in the right job
by managing horizontally and vertically.
6. Decrease the turnover by always is visible, transparent and to know everything is going
and to deal respectively with comments.

1. Develop strategic capability and provide encouragement and facilities for enhancing
innovative skills and enhancing the intellectual capital of the organization.
Training & Development 2. Encourage the development of a learning organization, develop and implement
knowledge management processes, support total quality and customer care initiatives
with focused training.
3. Introducing training programs for people’s needs ( internal or external )
 Corporate Strategy
Business Strategy
HR Strategy
Growth

Vertical Integration Horizontal Integration Concentric Differentiation

4. Introducing the employee for training programs to improve their job skills and productivity
through "Career Ladder Program ".
5. Well-communicated work environment.
6. Depending on team – work system.
7. Implement a strong performance management system and score card that measure:
a- The Scorecard is the key relation between the driver performance and the
outcome such as revenue.
b- The performance of individual and departments are linked by the growth
strategy.

1. Provide financial incentives and rewards and recognition for successful innovations
2. Link rewards to quality performance and the achievement of high standards of customer
service
3. Create a total package of the wages and benefits to hire the top talent.
Compensation & Benefits 4. Putting a clear work frame that matches the wages and benefits.

5. Putting assessment for the reward.

6. Combining the extrinsic and intrinsic factors to increase the employees motivation ,
7. Change the company financial and non financial recognitions.

1 Graduation Project
 Corporate Strategy
Business Strategy
HR Strategy
Growth

Vertical Integration Horizontal Integration Concentric Differentiation

1. Develop HRIS to fully use HRIS reporting & Tracking Capabilities. Integrated in this plan
will be the development of HR to establish HR metrics , benchmark will be identified
baseline data will be established.
2. Enhance New HR web Page on website: purpose is providing information employees
Information Technology need on HR web page, where it's accessible and easy to navigate for example HR
Forms.
3. Develop HR Technology Plan examples of technology need s include e-forms, new
applicant tracking system.

2 Graduation Project
 Edita Structure

3 Graduation Project
  EDITA 's Culture:

After we made an analysis for EDITA's Culture through two steps:

1st step: we made a culture survey on Edita's communication issues

2nd step: Exit interviews we got some clues

From the following steps, we conclude the following:

 EDITA History:

EDITA has been established in 1996, it has a wide history in which

people have shared experiences for years does a culture stabilize. First it
was a family business (Sole Proprietorship) then changed to
shareholders but the big part owned by Berzi's family the owner.

 EDITA Organizational Chart:

It’s a Matrix organization due to its project based. A matrix organization

consists of a functional structure consisting of a number of different
disciplines and a project structure consisting of project teams drawn from
it. Thus an employee can be a member of a project team and so have
two reporting relationships.
 All the previous effects it's culture, The Culture is a pattern of shared
values and beliefs giving members of an organization meaning and
providing them with rules for behavior and it's also is what make the
organization unique and holds the members of the organization together.
1- EDITA Norm's

Edita's norms reflects all the unwritten rules of behavior, the ‘rules of the
game’ that provide informal guidelines on how to behave. Norms tell
people what they are supposed to be doing, saying, believing and even
wearing. They are never expressed in writing – if they were, they would
be policies or procedures. They are passed on by word of mouth or
behavior and can be enforced by the reactions of people if they are
violated. They can exert very powerful pressure on behavior because of
these reactions – we control others by the way we react to them.

Norms are appears in the different action taken by the management and
the employees in managing the different situations,

 Performance – exacting performance standards are general; the highest

praise that can be given in the organization is to be referred to as ‘very
professional’.
 Power – recognized as a way of life; executed by political means,
dependent on expertise and ability rather than position; concentrated at
the top; shared at different levels in different parts of the organization.
 Politics – rife throughout the organization and treated as normal
behavior; not accepted as overt behavior.
 Loyalty – expected a cradle to grave approach to careers; discounted,
the emphasis is on results and contribution in the short term.
 Anger – openly expressed; hidden, but expressed through other,
possibly political, means.
 Approachability – managers are expected to be approachable and
visible; everything happens behind closed doors.
 Formality – a cool, formal approach is the norm; forenames are/are not
used at all levels; there are unwritten but clearly understood rules about
dress.

1 Graduation Project
 Edita's main norm problems appear in the form of Ethnocentrism:

Ethnocentrism is characterized as judging other groups relative to their

own ethnic group or culture, especially with concern for language,
behavior, customs, and religion. These ethnic distinctions and
subdivisions serve to define each ethnicity's unique cultural identity.
Ethnocentrism may be overt or subtle, and while it is considered a
natural proclivity of human psychology, it has developed a generally
negative connotation. These ethnic has disadvantages and advantages.

Disadvantages:

1- Persecutions in different shapes like sexual persecution, promotions

go for the older not the qualified
2- Misjudge on people.
3- Some groups think that it's better than other groups.

Advantages:

1- Give the sense of self-worth knowing that they a part of the

organization and they believe it's good.
2- They have one culture and one language.

Edita Management Style:

 Autocratic :
It means that the power and the loyalty to the boss and he is the only
one who have the managerial authority and the employees are oriented
towards obedience and dependence on the boss.

2 Graduation Project
 5- Strategy Implementation

All too often, 80 per cent of the time spent on strategic management is devoted
to designing strategies and only 20 per cent is spent on planning their
implementation. It should be the other way round. It is necessary to plan with
implementation in mind.

Because strategies tend to be expressed as abstractions, they must be

translated into programs with clearly stated objectives and deliverables. It is
necessary to avoid saying, in effect: ‘We need to get from here to there but we
don’t care how.

The problem with strategic HRM as noted by Gratton et al (1999)* is that too
often there is a gap between what the strategy states will be achieved and
what actually happens to it. The factors they identified as contributing to
creating this say/do gap between the strategy as designed and the strategy as
implemented include:

 The tendency of employees in diverse organizations only to accept

initiatives they perceive to be relevant to their own areas;
 The tendency of long-serving employees to cling to the status quo;
 Complex or ambiguous initiatives may not be understood by employees
or will be perceived differently by them, especially in large, diverse
organizations;
 It is more difficult to gain acceptance of non-routine initiatives;
 Employees will be hostile to initiatives if they are believed to be in conflict
with the organization’s identity, e.g. downsizing in a culture of ‘job-for-
life’;
 The initiative is seen as a threat;
 Inconsistencies between corporate strategies and values;
 The extent to which senior management is trusted;
 The perceived fairness of the initiative;
 The extent to which existing processes could help to embed the initiative;
 A bureaucratic culture, which leads to inertia.

* Reference – Armstrong’s Handbook of Human Resources Management

Practices “11th Edition”

3 Graduation Project
  Barriers to the implementation of Edita HR Strategy

Each of the factors listed above can create barriers to the successful
implementation of HR strategy. Other barriers may include the lack of proper
communication of the strategy which causes failure to understand the strategic
needs of the business and that reflects negative reactions towards the
idealistic statements and core values which leads to bad understanding of the
business strategy and disengagement of the big picture.

These problems are compounded when insufficient attention is paid to

practical implementation problems, the important role of line managers in
implementing strategies, and the need to have established supporting
processes for the initiative (e.g. performance management to support
performance pay)

 Scope of work

Every strategy statement and strategy development process must have a

number of components. It needs a framework.

The organization must be clear about where it stands in the sector or industry
it is part of. This must always be set against the environment the organization
is operating in, or the one in which it wants to operate in the future.

A necessary first step in the process of making a strategic framework

intellectually understood is often to translate it into more tangible and concrete
actions.

1 Graduation Project
  Approaches to Implementation

An implementation program that overcomes these barriers needs to be based

on:

 A rigorous preliminary analysis of the strategic needs of the business

and how the strategy will help to meet them;
 A communication program that spells out what the strategy is, what it is
expected to achieve and how it is to be introduced;
 The involvement of those who will be concerned with the strategy, e.g.
line managers, in identifying implementation problems and how they
should be dealt with;
 The preparation of action plans that indicate who does what and when;
 Project managing the implementation in a way that ensures that the
action plans are achieved.

Areas of Development to be covered by HR Implementation:

1. Highly Turn Over Rate,

2. Lack of competitive salary structure
3. Working conditions
4. No defined Job Description
5. No Employee Hand Book
6. No training plan and no budget for the training
7. Non-Qualified candidates
8. No Succession Plan
9. Promotion is based on seniority other than competency based
10. Test Cover Only limited positions
11. Performance appraisal is not reliable as it is not based on the define
KPI
12. Lack of Competitive reward system
13. Culture problem (Racism) – the need to maintain an equal employment
opportunity

2 Graduation Project
1- Recruitment Strategy

Recruitment & Selection

Recruitment is best described as the way in which an organization tries to

source or attract people, includes efforts to reach better pools of candidates
and to sell the organization as an employer of choice.

Selection is about choosing between job candidates. It is about how to make a

fair and accurate assessment of the strengths and weaknesses of applicants
and how to identify the candidate who is most likely to perform well in the job.

Main gaps and problems of Recruitment & Selection

1. Job Description
2. Sourcing
3. Process
4. Selection Methods or tools

1- Job analysis

Step 1: Collecting Data on Job activities, required employee behavior, working

conditions and human traits and abilities needed to perform jobs. Collecting
information will be conducted through three methods
1- Interviews with employees
2- Job analysis questionnaire
3- Direct observation with employee performance

Step 2: Verify the job analysis information with the employees

Step 3: Develop the job description and specifications

3 Graduation Project
 2- Job Description

Considered as the backbone for all HR functions and an essential step in

aligning Edita HR strategy. So we need to initiate a job analysis and develop
clear and defined job description and job specification to end up with meeting
the organizational objectives through the required competencies.

And what we need to find and the reasons behind this analysis is to identify

a. The purpose of the role

b. The tasks and responsibilities that are required of the jobholder
c. The knowledge, skills and abilities required for effective performance
d. The targets that are used to measure performance
e. Clarifying the working conditions and operating environment for some
jobs as in production

Developing job description content

JOB DESCRIPTION

OBJECT TYPE: Position OBJECT ID: Edita E-06

GLOBAL FUNCTION: Human Resources SUB- Manufacturing Operations

FUNCTION / Production

GENERIC JOB TITLE: Human Resources Manager

POSITION TITLE: Human Resources Manager

ORGANIZATION UNIT: E-06 LOCATION: 6th October

Factory

POSITION HOLDER: xxxxxxxxx

xx
01-01-
2014

4 Graduation Project
REPORTS TO: Human Resources Operations
Director
FALSE 01012014
ESTABLISHED BY: HR Dep. EFFECTIVE AS OF: 01-01-2014

APPROVAL POSITION APPROVAL SUPERIOR / COMPANY

HOLDER: REPRESENTATIVE:

(please sign) (please sign)

1 PURPOSE OF THE
. JOB:
Briefly summarize the job's overall purpose or role. What is it expected to
be achieved?
To develop and establish HRM strategies, policies, procedures and operational programs for Company,
involving all aspects of human resource recruitment, career planning, training and development, grading,
compensation, reward, and general HR support and advice to ensure that Company has the necessary
manpower resources to achieve its business plans effectively and efficiently.

2 DIMENSIONS / QUANTITATIVE
. DATA:
Indicate the significant numerical data (in USD), which are applicable to the job. Use current year's budget
figures. Leave blank those that do not apply.
The primary role of the jobholder is to align HRM strategies to the corporate strategies and to support all
company executive staff in the areas of employee relations, management and planning. The jobholder
works within the boundaries of the employees regulations approved by the Board of Directors. The job
holder is expected to exercise decision making and HRM systems design to reflect HRM practices
enabling company and employees. (No. of
employees: Direct: HR Department 18 to 40)
(Budget: Indirect: Company Headcount 300 To 3000)

3
. PRINCIPAL ACCOUNTABILITIES:
Please identify major end results or accountabilities for the position. These should reflect, when taken
together, the main purpose of the position. Please list in order of importance, at least the top 4 or 5 most
obvious ones. Try to formulate them using an action verb to describe the role/impact of the job, the output
area, any territorial "limits" or constraints, if applicable along with the reason for the "output". Implicit in a
well written accountability should be a certain number of measurement indicators. Indicate a maximum of 8
accountabilities. ( * Mandatory to specify at least 1st four)

ACCOUNTABILITY 1 *

5 Graduation Project
 1. Provide leadership, motivate and develop reporting staff to ensure that the function has the necessary
skill base and that staff are optimally motivated and enabled to maximize their potential and contribution
in providing services across the company.

ACCOUNTABILITY 2 *
2. Develop and implement HR policies and procedures in line with corporate HR strategy across the
business in order to maximize the potential of the company's human capital and ensure that all legislative
requirements are met.

ACCOUNTABILITY 3 *
3. Develop, implement and maintain Compensation and Benefits policies and practices that ensure that
employees are fairly and competitively remunerated in line with their contribution and that Company is
able to attract and retain high caliber employees.

ACCOUNTABILITY 4 *
4. Develop and implement recruitment policies and procedures that enable the recruitment of high caliber
employees into the business that will enable the Company to meet its objectives.

ACCOUNTABILITY 5
5. Develop and ensure the implementation of corporate training and development strategies and plans
that will ensure that employees across the business have the necessary technical and behavioral skills to
perform to the required standards, both now and in the future.

ACCOUNTABILITY 6
6. Develop and gain agreement to strategies, plans and operating budgets for the Human Resources
Department, monitor performance against these and initiates corrective action to ensure targets are met.

ACCOUNTABILITY 7
7. Develop and ensure implementation of the performance management, training and career development
plans in line with the company's values and objectives to ensure all employees receive suitable training,
regular feedback and coaching to enhance their performance.

ACCOUNTABILITY 8
8. Build and maintain professional working relationships with relevant Government representatives and
oversee subordinates dealings with Government bodies in order to ensure accurate and efficient
processing of employment related formalities.

4 MAJOR
. CHALLENGES:
Please describe the 3 or 4 major challenges, which are critical in terms of exposure and
performance of the job.

6 Graduation Project
 1. Develop staff in line with Succession plans ensuring that future plans are met by highly qualified,
committed and motivated staff.
2. As a member of the top team, helps develop the strategic program of Company and provides advice
which ensures that business objectives are achieved.

5
. SKILLS AND COMPETENCIES

Education:
Jr.College/Prof.Sch. Business related discipline

Work experience:
• 7 or more years’ operational experience

Skills (technical know-how, language,

PC):
You can use this field to describe any additional
Skill Level skills required
Change Management Change • Successful track record with reference to:
1 Skills Leader 1. Strategic Human Resources Management
2. Building up HRM as a "Business Partner"
2 Internal Consulting Skills Accomplished 3. Developing and managing a HRM team
4. Achievement of objectives
Language Level
First
1 Arabic Language

2 English Proficient

PC Skills PC Skills
1 Excel 3 Word

2 Powerpoint

Competencies:
• Succession planning • Staffing and recruiting • Rewards and recognition • Organization and position
design pay administration • Performance management Human Resource management fundamentals •
Job analysis + Labor management relations

6 INTERNAL AND EXTERNAL

. RELATIONSHIPS:
List which internal and external contacts are expected
within this job

7 Graduation Project
 • Strategic Thinking • Leading & Managing People • Communication & Listening • Professional Behavior &
Attitude • Interpersonal Skills & Teamwork • Analytical thinking & Decision making • Customer Orientation
• Result Orientation • Business Sense • Quality Focus

7 DESCRIPTION OF
. LEVELS
If applicable, as it is relevant for some jobs only, indicate the differentiating criteria related to accountability,
experience, etc, which make a distinction between the levels of responsibility found in this job. If you
specify levels, it will normally have an impact on the job evaluation resulting in two or three grades.
Typically level 1 is an entry level or junior role, level 2 reflects this job description full accountability, and
level 3 is a senior level.

8 ORGANIZATION
. STRUCTURE
If the job described in this form is not displayed on the current organization charts, please provide the SSC
Specialist Reward and Retain with the "to be" organization chart via email.

3- Sourcing

The problem with Edita sourcing strategy that it was relying narrow options
which are announcing jobs internally and using internet job boards like
(Linkedin)

Our strategy is attract qualified applicants from wide options on both internal
and external sources so we are going to follow the below steps

8 Graduation Project
 Internal Candidates

Announce Jobs Rehire Formers Succession Planning

Internal Recruiting

Internal recruiting allows management to observe the candidate for promotion

(or transfer) over a period of time and to evaluate that person’s potential and
specific job performance. And this also motivates the employees to do the
best.

Succession planning steps

1. Identifying and analyzing key jobs based on the organization’ strategic

goals
2. Creating and assessing candidates by developing current employees’
skills and competencies to prepare a second line of future management
3. Selecting those who will fill what positions

Advantages of Internal Recruitment

1. Foreknowledge of candidates’ strengths & weaknesses

2. More accurate view of candidates’ skills
3. Candidates have a stronger commitment to the company
4. Increases employee morale
5. Less orientation required

External Recruiting:

External Recruiting provide new blood perspectives and may bring new
industry insights. It's also provides us easily with expertise and qualified
candidates.

9 Graduation Project
  The ways of external recruiting is as the following:

A. Social Media: This through make advertisings on social websites like

Facebook linkedin, free HR blogs. It has low cost and provides us with quick
response.

B. Advertising: Media sources such as newspapers, magazines, television,

radio, and billboards are widely used.

C. EDITA's website: Establish an online application so that directly the

applicants who interested to seek employment in our organization.

D. Outsourcing Agencies: These agencies we used when we want to fill a

particular opening quickly or we need a candidate with specific
qualifications like consultants and expertise.

E. Employee referrals: Applicants who are referred to EDITA by current

employees

4- Recruitment process :

10 Graduation Project
0 Graduation Project
5- Evaluation Tools:

Recent research shows that using short, web-based or paper and pencil tests
as the first screening step efficiently to provide extra information about
applicants that cannot be obtained from their application forms or interviews
.Tests can gather information on an individual's attainment, aptitude, interests,
learning styles and other relevant characteristics.

So the company had develop the following tests for the new candidates to be
able to identify the need capabilities and competencies for a each job level or
each group of job,

Job E
Aptitude Assessment
Level Name Position Knowledge interview
tests Centers
Tests Test

Level Production
Labors B √ X √ √ X
1a Technician

Level
Labor A Supervisor √ √ √ √ √
1c

junior engineer ,
Level Juniors and
accountant , HR √ √ √ √ √
2 assessed
Admin ,

Level Experienced He Specialist ,

√ √ √ √ √
3 employees section Head

Plant Manager ,
Level
Managers HR Manager , √ √ √ √ X
4
Finance Manager

Level Managerial
Directors √ √ √ √ X
5 level

0 Graduation Project
 Job Knowledge Tests: typically use multiple choice questions or essay
type items to evaluate technical or professional expertise and knowledge
required for specific jobs or professions.

 Aptitude tests: used to predict how well you can perform a particular job or
task. It examines your potential by testing aptitudes that are relevant to the
job or task in question. They are usually timed against the clock. They may
test:

Spatial awareness (dealing with diagrams and three-dimensions

Verbal reasoning

Numeracy

Problem-solving

Manual dexterity or hand/eye co-ordination.

 Assessment Centers: Designed to measure many different types of job

related skills and abilities, but are often used to assess interpersonal skills,
communication skills, planning and organizing, and analytical skills.

 Interviews :Interviews vary greatly in their content, but are often used to
assess such things as interpersonal skills communication skills, and
teamwork skills

1 Graduation Project
2- Training & Development

As per the HR Scope analysis and the exit interview records made by the HR
we found that we have some issues to be developed by the training function:

1. High Turn Over Rate.

2. Low training budget.
3. Lack of Health and Safety trainings.
4. Non-Qualified candidates.
5. No Orientation Procedure.
6. Lack of the employee career path.
7. Lack of succession plans and developing a second line of management.
8. Training & development are not integrated with the business needs or
strategic analysis.

So in order to build up our training implementation strategy we have to focus

on all the training areas and t start with the easiest and the most important
methods which is the orientation,

Orientation

Orientation help employees to work cooperatively and flexibly with other team
members and help them understanding their Job role to avoid the below role
problems:

Role ambiguity when individuals are unclear about what their role is, what is
expected of them, or how they are getting on, they may become insecure or
lose confidence in themselves.

Role incompatibility – stress and poor performance may be caused by roles

having incompatible elements, as when there is a clash between what other
people expect from the role and what individuals believe is expected of
them.

Role conflict – this happens when, even if roles are clearly defined and there
are no incompatible elements, individuals have to carry out two antagonistic
roles.

2 Graduation Project
 So HR management developed orientation form to cover all the types of
Orientation and to avoid the un-clarity problem

1- Organization Orientation: Through describing Edita's traditions, rules,

mission, vision, values.

2- Role Orientation to emphasize legality and responsibility.

3- Task Orientation to focuses on task accomplishment. Authority is based

on appropriate knowledge and competence

4- Team Orientation: through influencing each other's & their relationships

in work as one team.

So we developed a new Team members check list to cover all the Functions
inside the company and not only all the functions but also all the departments
and the jobs starting from the labors to the plant manager.

Edita not only focusing to prepare and develop the new hires but also
focusing on the existing employees and consider them as the most
important asset for the company

Learning and development philosophy

A learning and development philosophy expresses the beliefs of an

organization on the role of

Learning and development, its importance and how it should take place. It can
be expressed in the following terms:

• Learning and development activities make a major contribution to the

successful

Attainment of the organization’s objectives and investment in them

benefits all the stakeholders of the organization.

3 Graduation Project
 • Learning and development plans and programs should be integrated with
and support the achievement of business and human resource
strategies.

• Learning and development should be performance-related – designed to

achieve specified improvements in corporate, functional, team and
individual performance, and make a major contribution to bottom-line
results.

• Everyone in the organization should be encouraged and given the

opportunity to learn to develop their skills and knowledge to the
maximum of their capacity.

• Personal development processes provide the framework for individual

and self-directed learning.

• While the need to invest in learning and development is recognized, the

prime responsibility for development rests with individual employees,
who will be given the guidance and support of their manager and, as
necessary, members of the HR department.

And In order to achieve all the benefits from our training program we found
that we have to follow certain steps to be able to conduct effective training
program :

a) Training Need Assessment Process.

b) Training Approaches and Designing Training Programs

c) Delivering

d) Evaluate Training Program

A. Training Need Assessment Process :

4 Graduation Project
 Organization Analysis:
- Exit Interviews - Accident Records
- observations - Complaints

Task Analysis:
- Job Analysis
- Job description

Employees Analysis:
- Preformance Appraisals
- Assessment Center -Records
- Questionnaires

We determined the training needs through using the below sources:

- Self-Assessment : By checking the company appraisal and the surveys

developed by HR
- Customer complaints: Our company aims is to reduce employees
complains and increase customer satisfaction so we have to hear from
customers and to act accordingly.
- Interview with the managers: As the line manager are the best to
describe what we need to develop in employee performance to fit the
company requirements.
- Management by Objectives: Edita setting a certain standards - to fill
the gap in the performance by finding the gap percentage

 Organization analysis: is the process for demining the business

appropriates for training.

- Support of managers and peers: Managers and peers are not

accepting the idea of the change and they don’t need to develop
training as the don’t know what will be the impact on the employees
performance.

- Company Strategy: We found that the company human resources

is supporting encouraging the training in the company and they
agreed that it will help in achieving the company goals and objective.

5 Graduation Project
 - Training Resources: The Company has insufficient budget for
the training and also we don’t have the experts trainers so we
have to outsource the training function,
• Person Analysis : This process determine
(1) Whether employees need training to achieve organizational
objectives
(2) Who Need training
(3) Whether employees are ready for the training

 Employees in some departments in the company need to develop their

KSA to coup with the company strategy.

 Input: the company lack of instruction to tell employees what, how and
when to perform also there isn‘t enough support to help them to
perform.

 Output: Lack of performance standards.

 Consequences: There weren‘t any kind of incentives the employee

receive for performing well

 Feedback: Those employees receive it while they are performing

concerning how well they are meeting their objectives.

 Task analysis: A process identifying the tasks, knowledge, skills and

behaviors that needs to be emphasized in training.

As per the result of the organizational analysis we found that the

company strategy is supporting the training and believe that the training
is one of major factor that will help the organization to achieve the goals
and objective but in the reality we found that the management is not
focusing on the strategy so we found that we need to start our training
plans by the managers to make them feel the importance of the training
by seeing the results reflected on their own performance and to believe
that the training is not money waste without benefits but the training is
reflected on the employees satisfaction by having the feeling that
company is investing on them also training will improve the individual
performance which will be reflected on the overall all company
performance, So we started by making task analysis questionnaire for a
job from the level on the Manager and peers which is HR manager

6 Graduation Project
  Training Approaches and Designing Training Program:

Designing training program:

Once training needs have been identified using the various analysis, and then
training objectives and priorities must be established. We will start working on
the following steps:

1- The Readiness of the Employees and this through:

- Making orientation session about the objective of the training and
its impact on the organization and the employee.
- Motivate employees to have self-efficiency that they can succeed
in learning and applying it on job.

2- Fill Employee Training Program because it help us to set an action

plan for each employee to set out the points of improvement of each
employee and the expected outcomes ( Training Objectives )and what
is the expected activities or how it will be delivered ( Training
Methods)

3- Create Learning Environment by motivate employees through

- Arrange and coordinate the training activities before and after
training.
- Provide the employees to practice what they have learned by
interacting with others, observing and experimenting.
- Support of supervisors and managers through feedback about how
well they perform to meet the training objectives.
- Provide Employees with continuous learning through transferring
what have they learned and their experiment to other colleagues.

7 Graduation Project
 4- Implement Training :

- HR select the most suitable solution for the training (in-house or

outsourcing) that according to expertise available and budget.

In – House Training Steps Outsourcing Steps

Send a request for the required

Develop training Materials training to the provider
Receive Different offers from
Choose an expertise trainer providers
Choose the Suitable offer
Choose the location
Send an email to inform the
Send an email to inform the employees with the training
employees with the training Schedule
Schedule
Send an email to the finance

Training Evaluation

Evaluation of training compares the post-training results to the objectives

expected by managers, trainers, and trainees.

EDITA evaluate the reaction level of trainees by:

1- Evaluate the training program or event through Evaluation Form (f – 1).

2- Test results are used to determine how well the courses have provided
employees with the desired content.
3- Conduct an interview of trainees and their coworkers and observing job
performance and fill in an Employee Performance Review form ( F – 2)
4- Measure the effect of training on the achievement of organizational
objectives. By comparing results records such as productivity, turnover,
quality, time, sales, and costs before and after training.
5- Measure the return on investment through ROI form ( F – 3)

8 Graduation Project
  Development Plan:

EDITA's Strategy is supporting the high performance & high involvement and
this is through continuous development to increase the importance and to
ensure the effectiveness of training .

 Succession Planning:

It's an important part of development to make a large increase capacity

through developing the existing talent. There are three approaches for
development the organization used:

1- Coaching ( Job site Method ) :

It's the daily training and feedback given to employees by immediate

supervisors. Coaching involves a continual process of learning by doing. For
effective coaching, a healthy and open relationship must exist between
employees and their supervisors or managers. And we also provided it formal
through Appraisal Coaching work sheet ( F- 4 ).

2- COMMITTEE ASSIGNMENTS

Assigning promising employees to important committees can give these

employees a broadening experience and can help them to understand the
personalities, issues, and processes governing the organization.

3- JOB ROTATION

It's the process of shifting an employee from job to job. Job rotation through
lateral transfers may be beneficial in rekindling enthusiasm and developing
new talents.

9 Graduation Project
  Performance Management System:

EDITA's have Performance & promotion system based on seniority and this
cause diversity in culture and inequity so EDITA assess development needs of
its employees & it's objectives through different methods include assessment
center and performance appraisals.

 Assessment Center :

It used for developing and for selecting managers. The trainees go for a
mission away from job to practice some activities that include role playing,
pencil-and-paper tests, cases, leaderless group discussions, management
games, peer evaluations, and in-basket exercises, in which the trainee handles
typical problems coming across a manager’s desk.

 Performance appraisal:

Its source of performance data on productivity, employee relations, job

knowledge, and other relevant dimensions can be measured this way. ( F – 0)

In EDITA we use management by objectives appraisal because it increase

productivity and support performance based on performance not on seniority.

3- Compensation and benefits Strategy

As per our HR scope of work and the exit interview records made by the HR,
we found that we have some issues to be developed by the Compensation &
Benefits function:

1. Highly Turn Over Rate.

2. Lack of competitive salary structure.
3. Non-Qualified candidates.
4. Promotion is based on seniority other than competency based.
5. Lack of Competitive reward system.
6. Inequity in the company benefit system.

10 Graduation Project
EDITA developed Compensation & Benefits Management Philosophy

Compensation & benefits management philosophy include beliefs in the need

to achieve fairness, equity, consistency and transparency in operating the
reward system. The philosophy recognizes that if HRM is about investing in
human capital from which a reasonable return is required, then it is proper to
reward people differentially according to their contribution.

 The philosophy of reward management recognizes that it must be

strategic in the sense that it addresses longer-term issues relating
to how people should be valued for what they do and what they
achieve. Reward strategies and the processes that are required to
implement them have to flow from the business strategy.
 Reward management adopts a ‘total reward’ approach which
emphasizes the importance of considering all aspects of reward as
a coherent whole which is integrated with other HR initiatives
designed to achieve the motivation, commitment, engagement and
development of employees.
 This requires the integration of reward strategies with other human
resource management (HRM) strategies, especially those
concerning human resource development. Reward management is
an integral part of an HRM approach to managing people.
 The philosophy will be affected by the business and HR strategies
of the organization, the significance attached to reward matters by
top management and the internal and external environment of the
organization. The external environment includes the levels of pay
in the labor market (market rates) and it is helpful to be aware of
the economic theories that explain how these levels are
determined

11 Graduation Project
  While designing EDITA’s compensation & benefits system we focused
on developing ARM model to construct Equal Effective Compensation &
Benefits System and build up system that can attract qualified
candidates , motivate and retain the existing professional employees.

Attraction ,

Retention

Motivation

1- Attraction: establishing Competitive pay structure to attract

2 - Retention: Benefits & services

3 - Motivation: Establishing pay for performance plan

So we found that in order to maintain effective system we have to focus on all

the compensation and benefits parts (Financial, non-financial, direct and
indirect).as shown in the below figure

12 Graduation Project
Firstly: EDITA’s Pay Structure:

Step 1: Salary survey:

We will conduct salary survey for five benchmark jobs through counseling
company (hey survey) and this to:

1- Make it more efficient to obtain the Salaries and accurate.

2- To provide us with around 15% to 20% of the price of the company
positions directly in the market.
3- Collect data on benefits like insurance , Pension and other personal
benefits to provide a base for decisions regarding employee benefit.

Step 2: Job evaluation Using point method

Job evaluation is a formal and systematic comparison done in order to

determine the worth of one job relative to another and to ensure internal
equity.
Step.2.A:

Identifying our compensable factors that we will evaluate the

company different jobs based on it (skills, responsibilities, effort,
working conditions).

13 Graduation Project
Step.2.B:

Adding the degree of importance for each compensable factor

separately.

 Step.2.C:

Take one major factor from each compensable factors

(Experience, Safety of others , Mental, Working conditions).

 Step.2.D:
Add the Evaluating Levels

Compensable Wait of each Factor Major Factor No Of Levels

factor

Skills 30% Experience 5

Responsibilities 20% Financial 5

Effort 40% Mental 5

Working conditions 10% Hazards 5

 Step Three:

 Define a description for each level.

Levels/ Experienc Point Financial Point Mental Point Hazards Point

Descriptio e s s s s
n
1 0-3 years 30 up to 20 Follow 40 Office 10
5000 LE Standard Hazards
s
2 3-5 years 60 up to 40 Minor 80 Noise and 20
100,000 Decision Dust
LE s

14 Graduation Project
Levels/ Experienc Point Financial Point Mental Poin Hazards Point
Description e s s ts s

3 5-7 years 90 up to 60 Moderate 120 Road 30

500,000 Decision accident
LE s
7-10 years 120 up to 80 Major 160 Physical 40
4 1,000,000 Decision Injuries
LE s
5 10 plus 150 1,000,000 100 Final 200 Death / 50
Plus Decision Disability

 Step Six:

Select the Benchmark Jobs for evaluation.

Jobs Level Experience Financial Mental Hazards Total Grade

/Points Point

CEO Level 5 5 5 1 460 10

Points 150 100 200 10
HR Level 3 0 3 1 220 5
Generalist Points 90 0 120 10
Financial Level 4 4 4 1 370 8
controller Points 120 80 160 10
HR Admin Level 1 1 1 1 100 2
Points 30 20 40 10
Site Level 2 1 2 4 200 4
Engineer Points 60 20 80 40
Sales Level 1 0 2 3 140 3
Person Points 30 0 80 30

15 Graduation Project
Wage Curve

10000 A
9000 v
e
8000 r
7000 a
g
6000
e
5000

4000
P
a
3000 y
2000
R
1000
a
0 t
Ge 1 G2 G3 G4 G5 G6 G7 G8 G9 G 10
s

 Grouping, Pricing and Fine Tune our Pay Rates.

Step Four : Job Evaluation Points

Grades Below Points Mid Points High Points Point Range Range
Spread
G1 833.3 1000 1166.6 < 50 40%
G2 1083.3 1300 1516 50-100
G3 1416.6 1700 1983.4 101-150
G4 1760 2200 2640 151-200 50%
G5 2240 2800 3360 201-250
G6 2800 3500 4200 251-300
G7 3760 4700 5640 301-350
G8 4769.2 6200 7630.7 351-400 60%
G9 6000 7800 9600 401-450
G 10 7307.7 9500 11692.3 451-500

16 Graduation Project
Wage Structure

14000

12000
A
10000 v
e
r
8000 a
g
6000 e

4000 P
a
y
2000
R
0 a
G1 G2 G3 G4 G5 G6 G7 G8 G9 G 10 t
e
s

Maximum Rate
Grades/Points
Wage Curve

Minimum Rate

 After finishing the wage curve there were no either red or green circles to
freeze or raise

 Secondly: Identifying our employee’s Needs.

 Edita Compensation & benefit system adopts Psychological needs and

motivation theories in its structure to know how to effectively distribute its
benefits among employees according to their needs.

17 Graduation Project
Abraham Maslow’s Hierarchy of Needs

– Five increasingly higher-level needs:

 Physiological (food, water, sex)

 Security (a safe environment)

 Social (relationships with others)

 Self-esteem (a sense of personal worth)

 Self-actualization (becoming the desired self)

 Lower level needs must be satisfied before higher level needs can be
addressed or become of interest to the individual.

18 Graduation Project
Herzberg’s Hygiene–Motivator theory

 Hygiene (extrinsic job factors)

Inadequate working conditions, salary, and incentive pay can

cause dissatisfaction and prevent satisfaction.

 Motivators (intrinsic job factors)

Job enrichment (challenging job, feedback and recognition)

addresses higher-level (achievement, self-actualization) needs.

The best way to motivate someone is to organize the job so that doing
it helps satisfy the person’s higher-level needs.

 A result of the lake of competitive reward system and salary structure,

the HR analysis showed that our employees were suffering of low
salaries and weak benefits programs which affect the sense of being an
important part of the whole organization. And that led to lose the loyalty
to their workplace and became disengaged from the company strategy
which finally became a major reason of the high turnover rate the
company experiencing especially on labors and technicians levels.

 The aim from our scope is to maintain the lower levels of needs
according to Maslow’ Hierarchy of needs in order to stabilize the work life
balance for our employees and encourage the sense of creativity to
reach the self-esteem level

19 Graduation Project
  Thirdly: Employees Benefits and Services.

Benefits is Indirect financial and nonfinancial payments employees receive for

continuing their employment with the company.

The major Objectives of Benefits Programs

 Improve employee work satisfaction

 Meet employee health and security requirements
 Attract and motivate employees
 Reduce turnover
 Maintain a favorable competitive position

Employee service and family

Pay for
friendly benefits
performance Insurance
Retirement Family Flexible
Position (supplemental benefits Personal
benefits friendly benefits
pay) services
benefits program

Supplemental Hospitalization,
Social Credit
HR Gen unemployment health and Subsidized Cafeteria
security. unions.
benefits. disability child care approach
insurance.

Financial Life Pension Fitness

Sick leave. EAP. Telecom-
Controller insurance. plan. facilities.
muting

Maternity Food Flex

Admin (Contributory
leave. services. time
plan).
Site Severance Executive
Engineer pay. perquisites:
- Loans.
Salesperson
- Cars
- Air
Labors tickets.

20 Graduation Project
Fourthly: Company Pay for performance Plan.

Company’s incentive plan

Position Incentives
Individual incentives Team incentives Company incentives
CEO Short term incentives (Fund Size Bases)- long term incentives (stock
option)
Merit raise-Golden parachute
HR Gen Merit Raise  Employee stock
Recognition Awards  ownership plan
Financial Controller
Online Award (ESOP)
Program Profit sharing 15%
Admin 
Site Engineer 
Salesperson Salary and 
commission
(Combination)
Merit raise
Recognition awards
Online Award
Program

21 Graduation Project
 6- Evaluation Strategy

 HRM systems diagnostic checklists

The following check-lists present some questions which may prove helpful to
think about when planning development programs for human resources in the
organization.

The aim is to begin to explore how a considered and planned approach to

people management can improve business performance, to the benefit of all.

Warning Indicators

The organization is more than likely in trouble if any of the following holds true:

- Chronic industrial relations problems.

- No means of resolving employee grievances.

- Increasing / erratic employee turnover.

- Increasing number of customer complaints.

- No pride in the organization.

- Inter-group conflicts.

- No career paths for ambitious talented employees.

- Dissatisfaction with pay and conditions.

- Unclear job roles.

- No clear performance measures.

- Quality is unimportant.

- Bad product service / delivery records.

- Poor recruitment standards / practices.

- No management development programs.

- No induction training for new employees.

22 Graduation Project
- Critical skill shortages.

- Inter-departmental conflict.

 Culture, organization, people, systems (COPS), checklist

 Culture

- Do the staff identify with the organization and 'the success of the
organization' as being of direct benefit to themselves?

- Does the staff see themselves as having common interests with their work
colleagues and group? Is there a strong team spirit?

- Is work allocated on the basis of individual expertise rather than position in

the organization?

- Are there sufficient skills / power bases in the organization?

- Are there appropriate leadership skills within the organization?

- Is the staff encouraged to say what they think about the organization?

- Does your organization encourage innovation and creativity amongst staff?

- Does the staff feel a sense of personal responsibility for their work?

- Is quality emphasized in all aspects of the organization?

 Organization

- Does the structure of the organization encourage effective performance?

- Is the organization structure flexible in the face of changing demands?

- Is the structure too complex? If so in what areas?

- Does the staff have clear roles and responsibilities?

- Does the organization structure tend to push problems up rather than resolve
them at the point where they occur?

23 Graduation Project
- Do the procedures and management practices facilitate the accomplishment
of tasks?

- Does the constantly seek to challenge the organization structure?

 People

- Does the staff have the necessary skills and knowledge to perform their jobs
in the most effective manner?

- Does the staff understand their jobs and how they contribute to overall
business performance i.e. have clear goals and objectives?

- Does the staff have a customer service orientation?

- Are people with potential spotted and developed for the future?

- Is the staff encouraged to perform well through the giving of recognition,

feedback, etc.?

- Do your people know what their expected performance standards are?

 Systems

- Do the organization‘s systems (e.g. employee selection and recruitment,

promotion, planning, management, information and control) encourage
effective performance among your staff?

- Are these systems consistent across the organization?

- Are there clear rewards for effective performance within your work group?

- Does the organization review its systems frequently and ensure they mutually
support each other? .

24 Graduation Project
  HR strategy evaluation Metrics

Metric KPI Weight

Compensation & Benefit Cost Rate of benefits 4%

System
cost rate of medical insurance 2%
cost rate of social insurance 2%
cost rate of worker compensation 2%
average income per employee by position 2%
Average income per employee by month 2%

Training and On Job Learning effectiveness 4%

Development
Growth Opportunities 3%

Average time to competence 2%

no. of employees reach the competency 3%

Time of training period 2%

no. of employees completing their program successfully 3%

no. of offered courses 2%

cost of training programs 2%

average training costs per employee 2%

Employees Satisfaction on the training 3%

Recruiting Vacant Period 3%

Turnover Rate of New Hires 3%

Financial Impact on Bad Hires 4%

Cost per internal Recruitment process 2%

25 Graduation Project
 Cost per out sourcing recruitment process 2%

Cost per recruitment position 3%

Average no. of Qualified CVs 3%
Average no. of interviews 3%
New hires achievement in the probation period 4%

satisfactory of the new hiring first appraisal 4%

cost per external recruitment 2%

Performance System adequate time to perform 2%

adequate time to conduct performance counseling 4%

rewards to distribute according to performance 4%

low performance employees 2%

high performance employees 2%
effectiveness of performance compared to the last 3%
month

Employee Relations Degree of cooperation between the employees and 2%

management

flexibility in working process 2%

ability of creativity in work 2%

aligning to culture and values and mission 2%

Team work 2%
Total 100%

26 Graduation Project
 7- Conclusion:

By measuring the key HR contributors to strategy execution the HR function is

transformed into a source of value creation for the organization. Measuring the
key HR issues in strategy provide the alignment between HR and business
process and ultimately what can be used to link to financial business
outcomes.

The HR system needs to be created in alignment with the organization's

strategy. HR needs to ensure that employees are strategically focused. Every
element of the HR functions from hiring, compensation, reviews, training... etc.,
needs to be developed in order to enlarge the human capital in the
organization.

HR Management is the design and the implementation set of internally

consistent practices that ensure an organization's human capital contributes to
the achievement of its business objectives.

The essence of HR is strategic, so it needs to:

1- To be a part of strategic team to gain access to full involvement with

strategy development.
2- HR needs to acknowledge all what it does to provide value organization
bottom line.
3- HR needs to measure itself to guide itself through monitoring and
evaluating of strategic role.

A strategic approach that is aligned with HR ensures that an organization's

employees, skills, and abilities contribute to achievement of its business goals.

Through our project we clarified that the kind of problems EDITA's

Organization face which affect its performance are:

 Lack of Implementation of HR strategies.

 Lack in aligning Edita's values and strategic objectives with
performance.

27 Graduation Project
We demonstrated through the project a lot of HR strategies & HR best
practices in each of the HRM Functions (Recruitment, Training, Compensation
and Benefits) to maintain Edita Business strategy also to promote The Human
Resources Department of the company to recruit top talent and keeps current
employees satisfied through benefit plans, training and the creation of a
pleasant work environment. To achieve this, the company needs to attract the
appropriate type of employees and develop programs to train their current
staff. Although HR strategies may be as unique as a fingerprint, they all require
executive and managerial support in order to thrive.

So we developed a strategic aligning model to adhere edita'

strategic business objectives through solid HR practices and competitive
people competencies

HR practices in Provide the

the area of: foundation for
Emphasize on:
Selection organizational
Job competencies:
Development
People Function
Performance
Appraisal Organization Innovation
Compensation Culture

The ultimate strategic HR goal is to have a set of HR practices that acquire,

develop and motivate necessary performance competencies in a consistent
and supportive manner. It is generally agreed that achievement of this goal
requires an aligned set of HR practices, ones that exhibit both vertical and
horizontal alignment. To create such alignment, the organization must ensure
that the performance competencies are embedded in the HR practices
themselves, so that the practices reflect and communicate the competencies.

28 Graduation Project
Finally, many organizations are struggling with the implementation of their new
strategy. Much time is spent on the formulation of a new strategy, and even
though this was done thoroughly, many organizations still fail to successfully
implement the strategy. As stated by Hambrick et al. (1989) “without
successful implementation, a strategy is but a fantasy”. In addition to spending
time on the formulation of a strategy, organizations should spend enough time
on the implementation.

29 Graduation Project
List of Forms

1- ………………………………..…………………………..Recruitment.

 ……………………………………….Interview Assessment Form.

2- ……………………………….……………..Training & Development.

 ……………………………………..New Team Member Checklist.

 ……………………………… Employee Training Programs Form.

 …………………………...….Employee Training Evaluation Form.

 …………………………….Employee Performance Review Form.

 …………………………….Employee Return on investment Form.

 ……………………………………….Performance Appraisal Form.

 …………………………………….…..Appraisal – Coaching Form.

30 Graduation Project
 EDITA

Interview Assessment Form

Candidate Name: ……………………………………………………………………….

Position Applied For: ………………………………………………………………….

Interviewer Name: ……………………………………………………………………..

Date: …………………………………………………………………………………………..

Acquiring professional knowledge (Continuous Learning)

Identifying and addressing individual strengths and weaknesses, developmental
needs and changing circumstances to enhance personal and organizational
performance
Poor Fair Average Good Outstanding

Comment:

Ambition
Desire of Personal Achievement
Poor Fair Average Good Outstanding

Comment:

Focusing on the Future and on Targets

Developing long term plans, exploring alternatives and responding to challenges with
innovative solutions or services
Poor Fair Average Good Outstanding

Comment:

Analytical Thinking
Interpreting, linking and analyzing information in order to understand issues
Poor Fair Average Good Outstanding

Comment:

31 Graduation Project
Decision Making
Making decisions and solving problems involving varied levels of complexity and risk
Poor Fair Average Good Outstanding

Comment:

Handling Conflicts
Preventing, managing and/or resolving conflicts
Poor Fair Average Good Outstanding

Comment:

Planning and Organizing (Setting Priorities)

Defining tasks and milestones to achieve objectives, while ensuring the optimal use of
resources to meet those objectives
Poor Fair Average Good Outstanding

Comment:

Reacting to changes (Adaptability)

Adjusting own behaviors to work efficiently in light of new information, changing
situations and/or different environments
Poor Fair Average Good Outstanding

Comment:

Trying to improve (Initiative)

Identifying and dealing with issues proactively and persistently
Poor Fair Average Good Outstanding

Comment:

32 Graduation Project
Ability to communicate
Listening to others and communicating in an effective manner that fosters open
communication
Poor Fair Average Good Outstanding

Comment:

Team Orientation
Working collaboratively with others to achieve common goals and positive results
Poor Fair Average Good Outstanding

Comment:

English Language:
Poor Fair Average Good Outstanding

Computer Skills:
Poor Fair Average Good Outstanding

Applicant Salary: ……………………………………………………………………….

Expected Salary: ……………………………………………………………………….

Pre Notice Period: ……………………………………………………………………..

Reason of leaving: ……………………………………………………………………..

33 Graduation Project
HR Section
Applicant Assessment
Applicant Strength Points Applicant Weakness Points

Decision:
Unsatisfactory
Below Standard
Medium Level
Above Average but Acceptable
Over Qualified

Manager Section
Applicant Assessment
Applicant Strength Points Applicant Weakness Points

Decision:
Unsatisfactory
Below Standard
Medium Level
Above Average but Acceptable
Over Qualified

HR / Recruitment Signature: ……………………………………………………. Date: ………………………….

Direct Manager Signature: …………………………………………………... Date: …………………………

34 Graduation Project
EDITA
New Team Member Checklist
EMPLOYEE INFORMATION
Start
Name: date:
Position: Manager:

Induction Plan For The First Week

Provide employee with New Employee Workbook.

Assign "buddy" employee(s) to answer general questions.

Company Over View ( HR Presentation)

Explain EDITA's History and Traditions through Orientation Video

Explain EDITA’s vision and mission and values statements and how these apply in your role

Explain business plan, show copy, explain /check understanding.

Explain background and structure of the organization/team. Explain how things are done, i.e.
customer care ethos, quality systems and team working ethics,.

Introduce to CEO, MD, directors, department heads, managers as appropriate.

POLICIES
Review key policies. Contract Conditions Personal conduct standards
Anti-harassment Progressive disciplinary
Vacation and sick leave actions
leaves of absence Security
Holidays Confidentiality
Time and leave reporting Safety
Overtime Emergency procedures
Performance reviews Visitors
Dress code E-mail and Internet use

35 Graduation Project
POSITION INFORMATION
Introductions to team.

Review initial job assignments and training plans.

Review job description and performance expectations and standards.

Review job schedule and hours.

Review payroll timing and policies and procedures.

ADMINISTRATIVE PROCEDURES
Review general Office/desk/work station Telephones
administrative procedures. Keys Building access cards
Mail (incoming and Conference rooms
outgoing) Picture ID badges
Shipping (FedEx, DHL, and Expense reports
UPS) Office supplies
Business cards
Purchase requests

COMPUTERS
Hardware and software Email Microsoft Databases
reviews, including: Intranet Office Internet
Data on
shared drives

INTRODUCTIONS AND TOURS

Give introductions to department staff and key personnel during tour.

Tour of facility, Restrooms Bulletin board Kitchen

including: Mail rooms Parking Coffee/vending
Copy centers Printers machines
Fax machines Office Cafeteria
supplies Emergency exits and
supplies

36 Graduation Project
I …………………………………. declare and agree that I have read and understand all the above
statements, and agree in all the terms and conditions been provided by EDITA, and committed to
adhere in all the above rules.

Name: _______________________________

Signature: ____________________________

Date: _________________________

37 Graduation Project
 EDITA
Employee Training Programs Form
Employee Information

Employee
Name:
Employee ID:
Job Title: Department
Responsible :
Date:
Year :

points of improvement

1.
2.
3.
4.

1st Training Program Objective

Description:

Methods of training

Presentation Methods : Class Room Instructions Distance Learning

Audiovisual
Hands on Methods : On Job Training Business Games
Simulations
Behavior Modeling Interactive Video
Case studies
Self-Directed Learning
Group based Methods : Adventure Learning Action Learning
Team Learning

38 Graduation Project
2nd Training program Objective

Description:

Methods of Training:

Presentation Methods : Class Room Instructions Distance Learning

Audiovisual
Hands on Methods : On Job Training Business Games
Simulations
Behavior Modeling Interactive Video
Case studies
Self-Directed Learning
Group based Methods : Adventure Learning Action Learning
Team Learning

3rd Training Program Objective

Description:

Measurement:

Presentation Methods : Class Room Instructions Distance Learning

Audiovisual
Hands on Methods : On Job Training Business Games
Simulations
Behavior Modeling Interactive Video
Case studies
Self-Directed Learning
Group based Methods : Adventure Learning Action Learning
Team Learning

4th Training Program Objective

39 Graduation Project
Description:

Measurement:

Presentation Methods : Class Room Instructions Distance Learning

Audiovisual
Hands on Methods : On Job Training Business Games
Simulations
Behavior Modeling Interactive Video
Case studies
Self-Directed Learning
Group based Methods : Adventure Learning Action Learning
Team Learning

40 Graduation Project
EDITA
Employee Training Evaluation Form

Starting Date Ending Date

Instructor
Topic

Ratings
3= 5=
1 = Poor 2 = Fair 4 = Good
Satisfacto Excelle
Instructor Evaluation ry nt
fluency and presentation
knowledgeable about the topic
Used an appropriate method of training
Class Participation & Interaction
Eager to answer all the questions
Friendly with the participants
Spent a discussions irrelevant to the course
Regarded all educational rules and
regulations
The training met the expectations
The training objectives for each topic were
identified and followed
Content Delivery
Well organized and easy to follow

The materials distributed were pertinent and

useful

The training met my professional

requirements

The resources were adequate

Coordinator Evaluation
The coordinator's behavior was delicate and
respectful
The Coordinator tried to organize all the
things well

41 Graduation Project
Starting Date Ending Date
Instructor
Topic

Good training aids ( chairs, air conditioner

and so on)
The schedule for the training provided
sufficient time to cover all of the proposed
activities

Additional Comments

42 Graduation Project
 EDITA
Employee Performance Review Form

Employee Information
Name Employee ID
Job Title Date
Department Manager
Review Period to

Ratings

1= 2= 3= 4= 5=
Poor Fair Satisfactory Good Excellent
Job Knowledge
Comments
Cooperative
Comments
Attendance/Punctuality
Comments
Initiative
Comments
Communication/Listening Skills
Comments
Dependability
Comments
Overall Rating (average the rating numbers
above)

Evaluation

ADDITIONAL COMMENTS

GOALS
(as agreed upon by employee
and manager)

Verification of Review
By signing this form, you confirm that you have discussed this review in detail with your supervisor.
Signing this form does not necessarily indicate that you agree with this evaluation.
Employee Signature Date
Manager Signature Date

43 Graduation Project
EDITA
Employee Return on investment Form
Cumulative Cumulative
Year Costs Benefits
Costs Benefits

Total 0 0
ROI ( The sum of cost - The sum of Benefits ) / The sum of Benefits

44 Graduation Project
45 Graduation Project
EDITA
Performance Appraisal Form
HR Manager objectives Appraisal form

Employee
Date :
Name :

Manager :

Supervi
Final
Date Performance objective Priority Feed Back Frequency Self Rating sor
Rating
Rating

Increase employees
/ / 15%
performance to 30%

Increase Employees
/ / Satisfactory and 20%
engagements to 15%
Decrease turnover up
/ / 10%
to10%
Improving business
/ / through cooperation 15%
and creativity
Increase the Return on
/ / 10%
investment up to 10%

Coaching and
/ / 10 %
developing his team

Integrity , maintaining
/ / 10%
respect, confidence
Aligned with the
culture, mission and
values Encourage others
/ / 10%
to act in a manner
aligned with culture and
values.

Total Result 100%

Conclusion

46 Graduation Project
Over all rating :
Development Goals
Development Goals Priority Target Dates

HR Comments

Sign Off And Review

HR Director : Date :
Employee Signature: Date :
Date :

Recommendations

Sign Off And Review

HR Director: Date :
CEO : Date :

47 Graduation Project
EDITA
Appraisal – Coaching Form

Instruction : this form is be filled out by supervisor and employee prior to each
performance review period.

Employee: Position :

Supervisor : Department:

Date : Period of work under consideration : from to

1- What areas of the employee's work performance are meeting job

performance standards ?

2- In what areas is improvement during the next six to twelve months?

3- What factors or events that are beyond the employee's control may
affect ( positively or negatively ) His \ her ability to accomplish planned
results during the next six to twelve months ?

48 Graduation Project
 4- What specific strengths has the employee
demonstrated on this job that should be more fully used during the next
six to twelve months ?

5- List two or three areas if applicable )in which the employee needs to
improve during the next six to twelve months ( gaps in knowledge or
experience, skill development needs, behavior modifications that affect
job performance ,etc )

6- Based on your consideration of items 1- 5 above , summarize your

mutual objectives:

A- What supervisor will do

B- What employee will do
C- Date for next progress check or to reevaluate objectives
D- Date evidence that will be used to observe and /or measure progress

Employee Signature :………………………………..

Supervisor signature :………………………………..
Date :…………………………………………

49 Graduation Project