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INTERNSHIP REPORT

SHAHEEN PHARMACEUTICALS

Specialization: Human Resource Management

Submitted To:

Chairman

Department Of Business Administration

Submitted By:

Name: Ziad Hussain

Roll #: W584559

Registration #: 07NST0019

Mailing Address: Village & GPO

Ghalagay, Tehsil Barikot, Distt.

Swat, N.W.F.P. Pakistan

Contact No. (Res.) 0946 753025

Cell: 0346 9488665

Email:daizhus s ain004@ yahoo.com

Date of Submission: 20-09-2009

ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD

ACKNOWLEDGEMENTS

All praises and thanks are for ALMIGHTY ALLAH who is entire source of

all knowledge and wisdom to mankind.

Special praises for the HOLY PROPHET MUHAMMAD (P.B.U.H) who forever is touch of knowledge and

goodness for humanity as a whole on the successful completion of the project. I would like to

acknowledge my deep sense of gratitude and indebtedness to academic assistance of my best teacher

Mr. Mujeeb

Alam, without his continued guidance and timely advice the completion of this

report would have been difficult. He has been a source of continuous encouragement

throughout the execution of my internship period.

Words cannot say the gratitude that we feel for our parents, friends and the members of my family

whose affection and prayers have always been the key to my success.

I applaud the nice company of my best and true friends Mr. Sir Zamin Khan,

Mr. Riaz and all the class fellows during the past few months of MBA studies. I will

always remember my association and affinities with all of them and treasure the

good days and happy moments spent with them.

Finally I am also very thankful to all members ofShaheen

Pharmaceuticals, with out their guidance and help, it will be impossible for me to

complete my internship. I am thanking the management ofShaheen

Pharmaceuticals for rewarding me such a great experience during my stay.

Thanks to all who helped me in completing my project.

Table of Contents:

COVER PAGE

ACKNOWLEDGEMENT

TABLE OF CONTENT

LIST OF TABLES & ILLUSTRATIONS

EXECUTIVE SUMMARY

OBJECTIVES OF STUDYING THE ORGANIZATION

INTRODUCTION TO THE ORGANIZATION

OVERVIEW OF THE ORGANIZATION

ORGANIZATIONAL STRUCTURE

ORGANIZATION STRUCTURE OF HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE MANAGEMENT PROCESSS IN ORGANIZATION

HUMAN RESOURCE PLANNING & FORECASTING

HRP PROCESS

FORECASTING HR REQUIREMENTS

METHODS FORECAST HR NEEDS

EMPLOYEES RECURITMENT & SELECTION

SOURCES OF CANDIDATES

5.2.1.1 INTERNAL SOURCES

5.2.1.2 EXTERNAL SOURCES

TRAINING & DEVELOPMENT

TRAINING NEED ASSESSMENT

EMPLOYEES DEVELOPMENT

PERFORMANCE MANAGEMENT

PERFORMANCE STANDARDS & EXPECTATION

HOW PERFORMANCE REPORTS ARE WRITTEN

EMPLOYEES COMPENSATION & BENEFITS

TYPES OF COMPENSATION & BENEFITS

ORGANIZATIONAL CARRER MANAGEMENT

EMPLOYEE JOB CHANGES

JOB CHANGES WITHIN ORGANIZATION

PROMOTIONS

TRANSFERS

DEMOTIONS

SEPARATION

5.7.4.1 LAYOFF

5.7.4.2 TERMINATION

5.7.4.3 RESIGNATION

5.7.4.4 RETIREMENT

LABOUR MANAGEMENT RELATION

SWOT ANALYSIS (STRENGTH, WEAKNESS, OPPORTUNITIES & THREATS

FOCUSING ON THE HRM PROCESS IN THE ORGANIZATION

MAIN WEAKNESS OF THE ORGANIZATION

RECOMMENDATION

CONCLUSION

REFERENCES

ANNEXES/APPENDICIES

APPOINTMENT LETTER

INTERNSHIP CERTIFICTAE

MONTHLY EMPLOYEES STRENGHT REPORT

EMPLOYEES WAGES & SALARY REPORT

EMPLOYEES ABSENTEESM REPORT

EMPLOYEES TRAINING RECORD

EMPLOYEES TRAINING SCHEDULE

EMPLOYEES PERSONAL FILE CHECKLIST

EMPLOYEES WAGE & SALARY RECORD

EMPLOYEE SALARY SLIP

EMPLOYEES PROVIDENT FUND RECORD

RECRUITMENT & APPOINTMENT PROCESS

LIST OF FIGURES & ILLUSTRATION

FIGURES

Figure 1

Structure of HR Department

Figure 2

Shaheen traditional style of management

Figure 3

Shaheen modern projectized style of management 9

Figure 4

Human Resource Planning Process

Figure 5

Forecasting Techniques

Figure 6

Estimating internal labor supply

Figure 7

Sources of Recruitment

Figure 8

Stages of Recruitment

Figure 9

Sources of Candidates

Figure 10

Performance Management Cycle

Figure 11

Employees Categories

Figure 12

Composition of Salary

TABLES

Table 1

Table showing current and needed staff level

EXECUTIVE SUMMARY

Irrespective of the size or objectives of an organisation, the most valuable resource it possesses is its

workforce. Without workers who are both efficient and effective, the long-term success of an

organisation cannot be assured. The human resource of an organisation is its entire workforce from

managing director to part-time cleaner. Each person is employed to perform specified functions which

play their part in the overall success or failure of an organisation.

It is the human resources employed by an organisation which generate wealth through the provision of

services or the production of goods. Consequently, just as machinery and buildings need to be protected

if they are to work properly, time and care must be taken if an organisation is to secure and retain the

To put suggestions & recommendations to further improve the

activities of HR Department of Shaheen Pharmaceuticals.

And finally to prepare an internship report in the light of observation I

found and recommendation I forwarded to the management of Shaheen

Pharmaceuticals.

INTRODUCTIION OF THE ORGANIZATION

I have selected Shaheen Pharmaceuticals, for my internship study in this report. Mr. Syed Karim founded

Shaheen Pharmaceuticals in March 2004 in Pakistan. Its Registered Marketing Office is situated at

Peshawar while its main manufacturing plant is present 3 Km from Saidu Sharif, Swat.

Shaheen Pharmaceuticals presents more than 50 products to the market. Nowadays, Shaheen

Pharmaceutical is a leading ISO 9001:2000 certified firm in pharmaceutical industry of Pakistan with over

350 employees and covers all four provinces of Pakistan.

OBJECTIVES AND FUNCTIONS

The basic objective of the company is to produces high quality medicine at cheap price by using latest

technology and highly technical staff. To achieve this goal the company adopted GLP, cGMP, GWP and

ISO 9001:2000 rules and regulation and continuously improving their management and marketing tasks.

There are various functional department present in Shaheen Pharmaceuticals and includes Production

Department (consist of Manufacturing Department, Packing Department, Drying Section, Granulation &

Mixing Section, Dispensing Areas, Tablet, Capsule, Dry Suspension & Liquid Sections), Quality Control

Laboratories, Quality Assurance, R&D Departments, Warehouses (Finished, Inprocess, Quarantine &

Rejection Areas), Finance Department, Marketing Department, Inventory Control Department.

PRODUCTS OFFERED

Shaheen Pharmaceuticals are offering different types of product to the market,

which includes.

Antibiotics

Anti histamines

Antifungal

Cardiovascular products

Iron supplement products

Foliate supplement products

Anti-inflammatory , Analgesics and Antipyretic products

H2 Receptor antagonist

Hepatic protective products.

OVERVIEW OF THE ORGANIZATION

Shaheen Pharmaceuticals is one the famous and reputed pharmaceuticals with more than 350

employees belong from different regions. Shaheen Pharmaceuticals has achieved the distinction of

being the first organization in the SWAT Valley, which achieved ISO 9001:2000 Quality Management

Certification from one of the famous and recognized organization IIC which have a registered head office

in Dubai, U.A.E. and approved from Joint Accreditation System of Australia-New Zealand (JAS- ANZ) in

2007. Shaheen in recent years initiated implementation of the HR reforms in a structured manner.

Shaheen Pharmaceuticals has successfully launched its HR development process at the beginning which

was aligned to the new organization knowledge, skill and competencies needs.

Shaheen Pharmaceuticals have a traditional management style i.e. functional departments are present

to perform various organization activities. A list of these functional departments is shown in

organogram.

LOCATIONS OF OFFICES

Shaheen Pharmaceutical marketing office is present in Peshawar while

Manufacturing Plant is present in Swat. The addresses of these offices are as below:

Factory & Head office:

Shaheen Pharmaceuticals3-Km, Murghzar Road , Saidu Sharif

Swat , N.W.F.P

Pakistan

Marketing offices:

STRUCTURE OF THE HUMAN RESOURCE DEPARTMENT

Shaheen Pharmaceuticals follows bureaucratic style for their HR Department activities i.e. all major

activities are concentrated to one position which means that only one person is holding major activities

of HR Department. The HR department of Shaheen Pharmaceuticals are composed of 3 main segments.

They are

Employee services

Employees Services

Staffing &

Compensation

OD & Effectiveness

Shaheen HR Core

Competency

Figure 1

Payroll Information

Leave and Medical Record

Final Settlements

Policies and Procedures

Employees Record and Recreation

OD and Effectiveness

Training plan

Talent Management

Performance Management

Employees Retentation

Orientation & Employee Communication

Staffing and Compensation

Staffing Plan and HR Budgeting

Management Trainee and Internship Program

Interviewing and Selection

Compensation, Benefits and Incentive

HUMAN RESOURCE PROCESS IN THE ORGANIZATION

Shaheen is basically a functional organization with functional departments covering Finance, Production,

R&D, Quality Control & Quality Assurance, and Marketing & Distribution. Having more than 20 Years

experience in the field of Marketing & Distribution, Shaheen was formed by the founder & present CEO

Dr. Syed Karim in 2004-05 as a fourth pharmaceutical in SWAT valley. Mr. Rashid which has an

experience of 15 years was appointed as consultant and head of HR Department. At the beginning the

management of Shaheen uses traditional techniques such as interviews to select candidates for various

jobs. Now the traditional way of appointing the employees are changed and some of modern techniques

such as filling a short questionnaire along with interviews are used to select the candidates.

Shaheen makes a great change in their working style and nowadays Shaheen is converting itself into

more projectized style than traditional hierarchy style but the management of Shaheen still uses the old

tradition of interviewing.

Top Management

Functional Department

Functional Department 1

Figure 2

Project 2

Project 3

Project 1

Management

Shaheen Traditional Style of Management

Shaheen Modern Projectized Style of Management

Figure 3

HUMAN RESOURCE PLANNING & FORCASTING

Planning & Forecasting in the modern age is a matter of life & death for organizations of modern age.

The same is true for pharmaceuticals industry. Each & every consecutive day new research product is

developed, deployed for trails & testing. All these effort require skilful, trained and experienced

workforce. It is for this reason organization plan and forecast for human resource so as to remain

competitive.

The management of Shaheen Pharmaceuticals also uses planning &

forecasting procedures to cope with human resource requirement but these

Project 2

Project 3

Project 1

Management

planning are usually of short term. As a result when the management of Shaheen open there Liquid

Section, they faces a serious shortage of skillfull, trained & experienced workforce. Although the

management strongly believes that employees are there supreme strength. But they are not adequately

planning to anticipate the future need.

5.1.1HUMAN RESOURCE PLANNING PROCESS

The HR Planning Process of Shaheen is shown in the following Figure.

Shaheen HR Planning are usually of short time in nature usually of 4 to 6 months. Because of shortage of

skill workers and because of the presence of pharmaceutical industries in the SWAT Valley, the

competition is very high so the HR Department of Shaheen continuously looking for skill workers. For

this purpose Shaheen scan internal environment to find out suitable employee and promote to fill the

vacancy, if there are no such employees available, then HR Department scan external environment for

skilled and experienced employees. As a result it is found the HR Department minimally interviewed 2

3 candidates daily, most of these interviewed candidates are called 3 to 4 months later of which almost

60 - 70% get jobs else where and only 30 - 40% available. Once the internal environment along with

external environment is scanned, a draft forecast is prepared. There are no forms for this purpose

Shaheen uses, instead Shaheen only colleted CVs and credentials for future need with HR comments

written on it.

Shaheen uses surveys to find out the present employees, their strength and

experience and then find out the no of required employees in near future. This gives

Shaheen Objectives & Strategies

the organization the ability to cope with future need of employees. But the same is not true for high

level employees such as Pharmacists, Chemists, Analysts, Officers & Managers. Shaheen does not have a

valid planning for higher level officers. As a result there is always a shortage of skilled, technical &

experienced top level officers as indicated by the following table.

Available Required

Managers

Chemist

Pharmacists

Ware House Officers

Accounts Sections

Godown Staff

Inventory Control

Production Officers

Despite the availability of vary sophisticated techniques, forecasting in Shaheen is still subjective

judgment. The facts are some times evaluated and weighed by knowledgeable individuals, such as

managers and HR experts, and some times not.

5.1.3 METHODS OF FORECASTING HUMAN RESOURCE NEEDS

HR at Shaheen uses 2 method when forecast the human resource need using judgmental methods and

mathematical methods. Although Shaheen uses these two types of model, the management still do not

know the model and the difference between them.

In Judgmental Techniques, Shaheen uses Estimates which are both top-down and bottom-up, but mainly

the HR & Management teams combinely interviewed the top level employees who are in a position to

know that How many people will they need next year to cop with employees shortage and to increase

productivity. After obtaining responses, the HR prepare forecast sheet and submit it to chief executive

for approval.

While In Mathematical methods, extensively used for lower level worker, Shaheen uses Productivity

ratios which calculate the average number of units produced per employee. These averages are then

applied to forecasts to determine the number of employees needed. For example when Shaheen

launches new product (Preston Tablets, Normidol Suspension & Olox Tablets in April 2009) the

Shaheen Forecasting Techniques

Judgmental Techniques

Mathematical

Figure5

Estimates

Personnel needs;

The supply of outside candidates according to their company requirements.

Internal

Sources

External

Recruitment

Sources of

Recruitment

Figure 7

By the utilization of their resources, firstly it is checked that either there is any job placement or

company is expending their business so that new jobs are open for new candidates. These issues are

tackled by the HR Manger. If staff is required then company tries to find them inside the company by

upgrading their employees if it not possible then new jobs are created and fill by the outside market.

The overall aims of the recruitment and selection process in Shaheen are to obtain, at minimum cost,

the number and quality of employees required to satisfy the needs of staff requirement. The three

stages of recruitment and selection in Shaheen are:

Defining requirements: Preparing job descriptions and

specifications; deciding terms and conditions of employment;

Attracting candidates: Reviewing and evaluating alternative sources

of applicants, inside and outside the company, advertising;

Selecting candidates: Sifting applications, interviewing, testing,

assessing candidates, offering employment, obtaining references;

preparing contracts of employment.

Stages of Recruitment

Defining Requirements

Attracting Candidates

Selecting Candidates

Figure 8

5.2.1 SOURCES OF CANDIDATES

There are various source available for the recruitment of potential candidates,

which are broadly divided in two categories.

Internal Sources

External Sources

5.2.1.1

INTERNAL SOURCES

First choice which Shaheen mostly utilize is internal source. When some new

post is created or some post is vacant due to termination, resigning and promotion of

employee, The HR department scan internal organizational environment to locate the

potential candidates, as a result Quality Assurance Officer was promoted to the post

of Inventory Control Manager, Production Manager were promoted to Management

Representative of ISO Program, and Quality Control Incharge were promoted to

Quality Control Manager.

When some post is available, then HR Department notifies the interested candidates

about the job opening and the candidates submit their CVs along with the writtenpermission from their respective managers for the new post. These informations are

then forwarded to top management and after there approval a formal notification is

sent to interested candidates for interview. After interview , job is offered to

successful candidates.

Sources of Candidates

Internal Sources

External Sources

Figure 9

5.2.1.2

EXTERNAL SOURCES

If there are no people available within the organization the other sources of

candidates, are used for recruitment such as internal or external referral &

advertising etc.

In external sources, the HR department uses internal and external referrals i.e. when job is posted then

existing employees recommend some employees for the job or Managers of other pharmaceuticals

recommend some candidates for the job. HR gives first priority to internal referral and then external

one. if the HR Department still not find out the potential candidate, then Shaheen advertise the job

opening in local news paper.

Almost more than 70% of employees both workers, technical staff and

managers are appointed through external or internal referrals.

Initially every officer rank employees are appointed for a probation period of 3 to 6 months as trainee.

After successful completion of training a permanent job is offered to the trainee.

TRAINING & DEVELOPMENT

Training is one of the most important tool any organization using to cope with the rapid change in

technology and way of doing business. HR department of Shaheen is responsible for the training and

Development of existing as well as new coming employees.

The difference between the training of new and existing employees

are orientation and Shaheen culture.

When a new employee is selected, an orientation of the new employees is conducted. Production

Manager is responsible for the orientation of new employees. Orientation is basically a one to two hour

activity in which the new employees are informed about the organizational structure, term & conditions

of employment, the duties of incumbent, the ethical & behavioural requirement for the new employee

and the so. This activity is only design for the officers and managers. Workers & employees of lower

level are exempted from orientation. As a result most problems are observed at this level during day-to-

day transaction.

New or Existing employees are trained in HR Department via three

methods.

Employees Handbook

Training by concerned department Manager.

Training to visit to other pharmaceuticals.

The period of training is not specified, some times it covered in a

week some times it is extended upto 6 months.

5.3.1 TRAINING NEED ASSESSMENT

There is no document for training need assessment in HR department,

however a document is found in ISO Master File QMS/02/001 along with several

forms.

6.2.2 TRAINING, AWARENESS AND COMPETENCY

A planning process is being implemented which ensures the proper training, awareness and competence

development of people. This carried out while taking into account the organization processes, customer

and expectations, the stages of development of people and the culture of the organization. The

objective is to

provide people with knowledge and skill, which, together with experience, improve their competence

capabilities. Organization has established and maintains a procedure to ensure proper capabilities of

personnel working. This includes:

Identification of competency needs for personnel performing activities affecting quality

Providing training or take other actions to address identified needs.

trainees are asked to perform some activities. The all activities are recorded. As a result the turnover of

employees in Quality Control is much lower than any other areas of the organization.

HR of Shaheen also uses another method to train some employees i.e. by sending them to other

pharmaceuticals to work for some time and then come back to their original position.

Although some documents regarding training activities are found in ISO

documentation, it was found that these forms are never used.

PERFORMANCE MANAGEMENT

Employees job performance is an important issue for all employers. A performance management

system consists of the processes used to identify, encourage, measure, evaluate, improve, and reward

employee performance at work.

Shaheen encourage their employees to achieve high level of excellence i.e. in

Quantity of output

Quality of output

Timeliness of output

Presence at work

Cooperativeness

These excellences are appreciated by the management at their monthly meeting with their employees

and in the form of shields and awards. However all these activities are qualitative in nature. The

activities of employees are recorded on the basis of observation made by the management officials from

time to time. There is no maintenance of performance log. However critical incidents are recorded on

rough pages for the future need.

Figure 10

5.4.1 PERFORMANCE STANDARD & EXPECTATION

Although Shaheen is a well reputed pharmaceutical organization, what target the employees must

achieve is totally the matter of perception. Different standards are set for different employees. i.e. if

two employees which perform same task in which one are highly experience and skilled and other have

relative lower experience than the management expect a high quantified target achievement for the

experienced one than from other.

It is because of this reason, an atmosphere of conflict found in some section of Shaheen

Pharmaceuticals. Management still not do sufficient planning to overcome these differences in targets

and for the smoothing of organizational environment.

The production department are usually engage in performance standard setting and reviews of activities

to find out that these standards are met during normal course of operation. However if the standard are

not met there are no mechanism how to remove inefficiency. Thus some one can say that performance

standards are not a matter of seriousness in Shaheen. It was also found that some employees are also

reluctant to these standards because no reward are attach to these standards. During my internship,

several times the product staff achieves the target but they are not appreciated well.

5.4.2 HOW PERFORMANCE REPORTS ARE WRITTEN

Performance reports are the responsibility of all managers of the concern department. However these

reports must be submitted to HR Department. A major drawback is that these report are not considered

when pay raise is recommended by the manager of various department, as a result every employee get

10% annual increase in their pay regardless of their performance. This creates a lack of seriousness

about the performance report preparation. Every department uses their own performance sheet. A

typical performance report of Shaheen contains information as

Name of employee

Designation of Employee

Name of performance evaluator

Department

Date & Time

Performance Standard (Arranged according to their priority)

Remarks

Signature of Supervisor

EMPLOYESS COMPENSATION & BENEFITS

Shaheen Pharmaceuticals currently highly compensating there employees with respect to other

industries present in Swat valley, however among the lowest compensation payable organization in the

industry in Pakistan. Because of very low number of pharmaceuticals in Swat valley and absence of

many taxes in Swat valley, Shaheen is one of the most profitable pharmaceutical in Pakistan, but these

benefits are not transferred to their employees as a result the employees turnover is very high.

Shaheen have a different pay structure for different level of employees and also employees of same

level. i.e. Head of two departments are paid two different type of compensation.

HR department is responsible for pay and pay related issues. It was also found that salary determination

in Shaheen is a matter of bargaining. i.e. Shaheen pay 5500 PKR to an analyst while at the same time pay

15000 to other analyst working in a same post.

Shaheen creates 2 categories for their employees. Exempt & Non- Exempt. Shaheen pay overtime to its

non-exempt employees who work in excess of 8 hour and are one & half times there base pay. Almost

all officers, managers, directors & executives are exempt from overtime allowance.

There is no shift premium and night allowance for workers. The pay structure

changes in Shaheen with that of based on seniority and not on performance.

Although Shaheen is considered as one of the most profitable

organization in pharmaceutical sector, it does not distribute some portion of

Employees

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