Chapter i Executive Summary

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CHAPTER I

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Business is the highest level of human activity and the highest level of social good. It is the

people engaged in business who deliver all the goods and services the community wants.

Business demands excellence and abundance of creativity from the people who engage in it.

The business is made successful with the help of skilled, trained, loyal and hardworking

employees. A Business or a factory would be nothing without its employees working constantly

to satisfy their forever valued customers.

The Human Resources Management (HRM) function includes a variety of activities, and key

among them is deciding what staffing needs you have and whether to use independent

contractors or hire employees to fill these needs, recruiting and training the best employees,

ensuring they are high performers, dealing with the performance issues, and ensuring your

personnel and management practices conform to various regulations.

Activities also include managing your approach to employee benefits and compensation,

employee records and personnel policies.

Human Resources is an increasingly broadening term with which an organization, or other

human system describes the combination of traditionally administrative personnel functions with

acquisition and application of skills, knowledge and experience, employee relations and resource

planning at various levels.

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INTRODUCTION

The term ‘HUMAN RESOURCE’ defined as the total knowledge, skill, creative abilities,

talents and aptitudes of an organization’s workforce as well as the values, attitudes, approaches

and beliefs of the individuals involved in the affairs of the organization. It is the sum total or

aggregate of inherent abilities, acquired knowledge and skills represented by the talents and

aptitudes of the persons employed in an organization.

Human Resource Management may be defined as that part of management process which

develops and manages the human element of the enterprise considering their resourcefulness in

terms of total knowledge, skill, creative abilities, talents, aptitudes and potentialities for

effectively contributing to the organizational objectives.

HR Operations includes many aspect of Human Resource which is as follows:

1. Recruitment & Selection

2. Training and Development (People or Organization)

3. Performance Evaluation and Management

4. Promotions/Transfer

5. Redundancy

6. Industrial and Employee Relations

7. Record keeping of all personal data.

8. Compensation, pensions, bonuses etc in liaison with Payroll

9. Confidential advice to internal 'customers' in relation to problems at work

10. Career development

11. Competency Mapping

12. Time motion study is related to HR Function

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OBJECTIVE OF STUDY

The objectives of the project are as follows:

To study the procedure of recruitment and selection at Oriental Weavers

To bridge the gap between theoretical and practical knowledge.

To study and analyze the reimbursement and medical claim cycle.

To redressed the HR issues of the employees.

To study the payroll processing and maintain the uniformity in the payment of salary.

To maintain the record of the employees of Oriental Weavers.

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CHAPTER II

COMPANY PROFILE

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“Everything bows toInnovation, Even Success”

Chairman’s letter

I would like to take this opportunity to express my deepest appreciation to those of you who have

shown interest in Oriental Group. I strongly believe that the steady growth of the group is due to

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Vision:

OW’s vision is to enhance our lifestyle worldwide;

tomorrow’s homes will require ever-fashionable

and inspired floor coverings with distinctivecharacters at affordable costs.

Mission:

OW’s mission is to build a state of the art carpets

and rugs company by achieving economies of scale, being aggressively market oriented, being

export oriented and internationally competitive,

and maximizing the use of local competitive

advantages.



the support of our Business partners, associates and colleagues all over the world. The Group is

continuously exerting effort in achieving the highest possible quality products for you through

devoted research and development programs.

Innovation is the driving force leading to our peoples’ creativity. It is our pillar of strength

originating from the spirit of freedom and security. Granted with innovation are productivity and

progress, a result of sound social and work conditions based on motivation and fairness.

Mohammed Farid Khamis

Chairman

The Orientals Group

General Introduction

Oriental Weavers (OW) is one of the most recognized brands in the machine woven rug and

carpet industry today. Established in 1980 by Mr. Mohamed Farid Khamis, a leading Egyptian

entrepreneur and industrialist, the company has grown under his leadership to become the largest

machine made rug and carpet manufacturer in the world. From modest beginnings in the textile

field, the group today is a corporate powerhouse with multifaceted activities.

The Orientals Group began its vertical integration within a few years of its formation, expanding

in the field of textiles by creating its own facilities for the spinning and dying of yarn and

production of synthetic fibers.

OW is the acknowledged leader in design, quality and innovation within the industry. With a

simple vision the company became a leading worldwide exporter and by far the largest player in

the Egyptian Market.

The Group has since rapidly grown and diversified. It has expanded its operations to diverse

fields from the manufacturing of carpets and rugs and related activities to petrochemicals,

construction, real estate and tourism development, agriculture and trading.

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OW is the flagship company of the Orientals Group, which is a multinational organization that

incorporates several companies dedicated to the production of woven rugs and carpeting, along

with companies in other industries such as petrochemicals, property and real estate development,

agro-industries, and other investment activities.

OW, located in the 10th of Ramadan City near Cairo, is completely vertically integrated thus

providing the company with the advantage of manipulating and producing fine fiber and

manufacturing the worlds most innovative rugs and carpets. Most of OW’s raw materials are

produced within its subsidiaries. Therefore, it is able to pass on the advantages of complete

vertical integration to all its customers.

The Group adheres to the international declaration of Human Rights and maintains a set of

transparent human resources policies and procedures for both management and labor.

Governmental labor offices represent all employees, and the company’s wages, benefits, labor

policies, and management procedures comply with and exceed requirements.

We continuously contribute to our community by supporting several development projects and

welfare events. We have supported the construction of respective schools in different remote

locations of Egypt and sponsored several public hospitals and clinics by providing advanced

medical equipment.

Commitment:

OW is committed to the pursuit of continued excellence in the manufacture of exquisite rugs and

carpets and surpassing all our customers, suppliers and employees expectations. In addition we

abide by the following simple belief “everything bows to innovation”. Innovation is our pillar of

strength and the driving force behind all of our accomplishments

Products

Oriental Weavers is the world leader in area rugs. The area rugs are designed with functionality

in mind. The various lines are created and produced to suit a variety of flooring needs. From

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traditional to transitional, from contemporary to tribal, a new product is introduced every two

weeks on average.

Among the company’s most popular introductions are:

ANDY WARHOL

Oriental Weavers secured a licensing agreement with the Andy Warhol Foundation,

paving the way for a new fashion forward line of area rugs inspired by the renowned

American icon. The line features a variety of designs from contemporary to floral and

spanning nearly 40 years of Warhol’s work in machine made constructions representing a

variety of price points.

NATIONAL GEOGRAPHIC

The NATIONAL GEOGRAPHIC line is inspired by ancient heritage, nature and the

environment. These inspirations are embodied in four distinct collections: TROPICAL

WINDS, WEST INDIES, SOUTH AMERICA and NORTH AFRICA. The Collectionstays true to the spirit of exploration which NATIONAL GEOGRAPHIC is renowned

for.

THE INDUSTRYS FIRST EVER 3 AND 4 MILLION POINT RUG

Oriental Weavers is unparalleled within the rug industry in regards to technological

innovation. OW introduced the world’s first 3 and 4 million point rugs which combined

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unique designs with innovative weaving techniques to produce a revolutionary new rug to

the market.

Companies

Oriental Weavers Carpet Co.

Oriental Weavers, the flagship company of the Orientals Group, is one of the biggest

names in machine woven rugs and carpets today. The company is the acknowledged

industry leader in design, quality and innovation.

Oriental Weavers International (OWI)

OWI is home to many diversified businesses within the home textiles industry. Among

them are Axminster Weaving which is the production of high quality broadloom carpet

catering to the hospitality and residential industries as well as Goblin production for

tapestries and light-weight rugs. OWI also produces wool hand-tufted rugs in custom

made designs and colors. It is located in the free trade zone in Tenth of Ramadan City,

Egypt.

Oriental Weavers U.S.A

Based in Dalton, Georgia, and established in 1991, Oriental Weavers USA Inc. combines

both a manufacturing facility and a sales and distribution arm. It has become one of the

most influential and largest players in the American market.

Oriental Weavers (Tianjin) Ltd-China

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Oriental Weavers (Tianjin) Co. Ltd. Is based in China, 80 KM south of Peking. The

company uses state of the art machinery and ensures quality by the production of in-

house polypropylene yarn.

The scope of the company is research, development, production and processing of

machine-woven carpets and rugs, raw materials for carpets and rugs and sale.

Cambridge Weavers

Cambridge Weavers offers high quality, high performance Axminster carpet into the

commercial and contract markets. The broadloom carpets are produced on the latest

generation fully electronic high-speed looms.

Misr American Carpets (MAC)

Established in 1981, MAC is the largest producer of custom printed tailored rugs, wall to

wall carpets and area rugs in the world. It produces carpets and rugs in varying qualities

for the residential, commercial and hospitality industries.

MAC is the authorized producer of customized licensed mats and rugs. With around 35%

world market share in jet printed mats and rugs, MAC uses its jet printing facility to

produce for well known names such as BMW, Disney and Warner Brothers, amongst

others.

Oriental Weavers U.K. (OWUK)

Oriental Weavers UK is the distribution and marketing arm of Oriental Weavers based in

Milton Keynes, UK. The headquarters consist of a large showroom and a fully automated

warehouse which serves over 800 upscale retail stores throughout the UK, Ireland and

France.

Other Non-Textile Related Companies within the Group

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Oriental Petrochemicals Company (OPC)

Oriental Petrochemicals Company (OPC) is a joint-stock company established in Egyptin 1996, specializing in the production of polypropylene. OPC takes pride in being a

market focused company; service oriented responding to the needs of its customers

through the production of premium quality products at highly competitive prices.

Located in the industrial zone of the Gulf of Suez, Egypt, OPC boasts many strategic

advantages. OPC is the sole producer of polypropylene in Egypt, a hugely untapped

market with a very promising future.

Oriental Petroleum & Petrochemical Investments Company (OPPI)

Oriental Petroleum & Petrochemical Investments Company (OPPI) was established in

2006 as a holding company to take over and manage Oriental Holing Company’s

investments in this lucrative sector.

OPPI’s goal is to continue to develop projects along the natural gas value chain in order

to continuously add value to the abundant natural gas reserves of Egypt.

Real Estate

Oriental for Urban Development (OUD), a joint-stock company, was established in 1994

to capitalize on the real estate boom in Egypt. Over the years, OUD seized growth

opportunities through diversification into tourism and agriculture. Today, OUD have an

assortment of different projects spanning the three different sectors of Real Estate,

Tourism and Agriculture.

Tourism

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Oriental Resorts for Touristic Development focuses on the development of complete

multi-use resorts in the most central and prime locations.

One of the company’s landmark projects is a touristic village in South Nabq on the Gulf

of Aqaba, creating a vast integrated and diverse community.

Education

The British University in Egypt is focused on encouraging personal integrity and

academic excellence alongside fostering forward thinking philosophies, innovation and

teamwork spirit. The British style of education focuses on making students learn how to

think; not what to think, which encourages students to develop problem-solving and

analytical skills through a personalized and independent approach.

Shorouk Academy offers academic programs, equivalent in content and quality to those

offered by leading institutions of higher education worldwide. Shorouk Academy gives

its graduates an education that enables them to comprehend the dynamism and

complexity of contemporary global processes and empowers them to direct those

processes in constructive directions.

Investments

Oriental International Trade is a full service importing and exporting company

involved in all aspects of foreign trade and abiding by international regulations. The

company finds producers, reaches valuable markets and writes contracts with businesses

throughout the world.

Kafr El Sheikh for Investments and developments was established to invest in the

industrial, commercial and residential sectors.

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The company generates investment ideas, builds models and analyzes prospective

projects whereby various assets are purchased, recurring and capital gains are made from

returns.

Oriental for Industrial Projects is currently focusing all its efforts on developing 10

million meters in the Gulf of Suez. This large scale project of outstanding infrastructure is

an industrial park aiming at providing all the amenities needed for a world class complex.

Awards

Oriental Weavers has received worldwide recognition throughout the last decade. Amongst the

many awards and recognitions, these are some of the highlights.

• OW was awarded UNIDOs “Africa’s Innovative Company” award in the large scale

industries sector for the year 1998.

• OW has consecutively won the “Americas Magnificent Rug Award” from 1994 to 2000

and again in 2002, 2005 and 2006 for its innovative designs and exceptional service.

• OW has gained the title of “Favorite Area Rug Manufacturer” from industry magazines

from 1997 to 2006 variably in service, design and quality.

• OW was awarded the Super brand status from 2004 to 2006.

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ORGANIZATIONAL STRUCTURE OF ORIENTAL WEAVERS

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Oriental WeaversGroup

Chairman(Mohd. Farid

Khamis)

Vice Chairman

(Mahmood Khamis)

Oriental WeaversInternational

CEO(Salah Abdel Aziz)

GM Production

(Mohd. AbdelHamid)

Director Yarns

(Mohd. Shaban)

Technical Director

(Dr. Reda AbdelBaky)

IT Head

(Abu Bakar)

Director Administration

(Mohd. Shargawy)



CHAPTER III

PROJECT OVERVIEW

Theoretical Design of Project Details

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RECRUITMENT

Meaning of Recruitment

Recruitment involves attracting & obtaining many applications from eligible job seekers. The

process begins when new recruits are sought & ends when their applications are submitted. The

result is a pool of applications from which new employees are selected. Though, theoretically,

recruitment process is said to end with the receipt of the applications so as to eliminate those,

which are not qualified for the job.

Recruitment represents the first contact that a company makes through the potential employees.

It is through recruitment that many individuals come to know a company & eventually decide

whether they wish to work for it. Well-planned recruiting efforts results in high quality

applicants whereas a haphazard effort will result in mediocre ones. The recruitment process

should inform qualified individuals about employment opportunities, create a positive image of

the company, provide enough information about the jobs so that applicants can make comparison

with their qualifications & interests & generate best enthusiasm among the best candidates so

that they will apply for the vacant position.

Recruitment lends itself as a potential source of competitive advantage to a firm. An effective

approach to recruitment can help a company successfully compete for limited resources. The

firm must choose a recruitment approach that produces the best pool of candidates quickly &

cost effectively.

Significance of Recruitment

The general purpose of recruitment is to provide a pool of potentially qualified job candidates.

Specifically, the purposes are to:

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1. Determine the present and future requirements of the organization in conjunction with its

personnel-planning and job-analysis activities.

2. Increase the pool of job candidates at minimum cost.

3. Help increase the success rate of the selection process by reducing the number of visibly

under qualified or overqualified job applicants.

4. Help reduce the probability that job applicants, once recruited and selected, will leave

the organization only after a short period of time.

5. Meet the organization’s legal and social obligations regarding the composition of its

workforce.

6. Increase organizational and individual effectiveness in the short term and long term.

7. Evaluate the effectiveness of various recruiting techniques and sources for all types of

job applicants.

RECRUITMENT METHODS

Once the organization has decided that it needs additional or replacement employees, it is faced

with the decision of where to generate the applications form. Most organizations have to use both

internal and external sources for generating a sufficient number of applicants.

I. INTERNAL RECRUITMENT

Although recruiting often brings to mind employment agencies and classified ads, current

employees are often the largest sources of recruits. Internal recruitment involves generating

active, voluntary participation of current employees. It is a process designed to create sufficient

interest among current employees to cause them to formally indicate an interest in a given

position. The positions applied for, may represent promotions, transfers, and perhaps demotion.

Following are the various internal recruitment methods:

1. Personnel records and skills banks: - Examining personnel records may uncover

employees who are working in jobs below their educational or skills level. It may also

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reveal persons who have potential for further training or those who already have the right

background for the open jobs in question.

Organizations can also effectively use skills inventories for identifying internal applicants

for job vacancies. Computerized systems can help to ensure that qualified internal

candidates are identified and considered for the opening.

2. Job posting and bidding: - Since HR managers may not be aware of all current

employees who might be interested in the vacancy; the organization may use an approach

called job posting and bidding. This is the most common method of generating a pool of

internal applicants. It requires that management posts or otherwise circulates and notifies

listings of available job openings and let the current employees bid for the same, should

they be interested.

3. Informal Methods: - Job posting is a formalized process of advertising available

positions to employees and a means by which employees can express an interest in being

considered for those positions. There are many organizations that have not formalized

that process. For example, the grapevine may provide information about anticipated

openings within the firm. An indication of interest by an employee through the use of

‘important channels’, may result in his or screening that position.

For a short – term labour shortage or for a limited amount of additional work, the

organization can use inside moonlighting.

Advantages of Internal Sources

Filling vacancies in higher jobs from within the organization or through internal transfers & has

the following merits: -

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1. Employees are motivated to improve their performance.

2. Morale of the employees is increased.

3. Industrial peace prevails in the enterprise because of promotional avenues.

4. Filling of jobs internally is cheaper as compared to getting candidates from

external sources.

5. A promotion at a higher level may lead to a chain of promotions at lower levels in

the organization. This motivates the employees to improve their performance through

learning and practice.

6. Transfer or job rotation is a tool of training the employees to prepare them for

higher jobs.

7. Transfer has the benefit of shifting workforce from the surplus departments to

those where there is shortage of staff.

Disadvantages of Internal Sources

Internal sources of recruitment have certain demerits also. These are listed below: -

1. When vacancies are filled through internal promotions, the scope for fresh talent is

reduced.

2. The employees may become lethargic if they are sure of time bound promotions.

3. The spirit of competition among the employees may be hampered.

4. Frequent transfers of employees may reduce the overall productivity of the

organization.

II. EXTERNAL RECRUITMENT

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When an organization has exhausted its internal supply of applicants, it must turn to external

sources to supplement its work. Nowadays organizations are becoming more proactive in their

recruitment efforts.

A number of methods are available for external recruiting. There is no single combination of

resources and methods that will work well for all organizations, or for that matter, across all

types and labour market, or even within a labour market. Research and experience indicates that

there are particular methods that are more effective for some types of jobs and potential

applicants than for others.

Following are the various external recruitment methods:

1. Direct Applications: - For hourly workers, “walk-ins” are major source of applicants.

For blue-collar jobs, walk-ins are often called gate-hires. Direct applications provide a

relatively inexpensive source of good applications to the organization, especially for

entry-level, clerical, and blue-collar jobs. More recently direct applications (write-ins)

from fresh college graduates have also been used to fill other entry-level positions.

The size of an organization, and its image and reputation determine the quality of

applicants who will apply directly to the organization. Employers may also ensure that

every walk-in gets a brief interview with someone in the human resource office, even if

only to compile information on the applicant for a possible future position or vacancy.

Good business practice also requires that all letters of inquiry from applicants be

answered promptly and courteously.

2. Employee Referrals: - These form a quick and relatively inexpensive means of

recruitment. Some organizations encourage direct applicants for skilled, technical,

professional, or managerial positions, by mounting an ‘employee referrals’ campaign.Announcements of openings and requests for referrals may be made in the organization’s

bulletin and posted on bulletin boards. Mostly, however, requests for referrals are informal

and made at an informal level. More recently, a more systematic approach has been adopted

for referrals. Prizes are often offered for referrals that culminate in hirings. A cash award for

referring candidates who are hired is the most common type of referral incentive.

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position desired, location and educational background. Candidates can also specify

preference for geographic areas. Along with the “personal summary of qualifications” the

form presents a fairly complete picture of each candidate’s qualifications, occupational

preferences, and desired salary range. This data/resume for each job seeker is entered into

the company’s database for a fixed registration fee to be paid by the job seeker. The

salary level desired by the job seeker frequently determines the amount of registration

fee. However, some companies do not charge any fee from the job seekers for including

their names in the database.

5. Media Advertisements: - Organizations advertise to acquire recruits. Various media –

both print media and audio-visual, are used, the most common of which are the daily

newspaper help-wanted ads. Organizations routinely advertise in daily newspapers,

several unskilled, semi-skilled, clerical, administrative, and entry-level managerial job

openings.

There are several reasons why employers use newspaper advertisements. Job openings

can be announced quickly-appearing in the newspaper within 1 or 2 days. They are fairly

inexpensive when compared with other methods, and more than one position can be

included in the same advertisement. These also have the advantage of reaching many

people in a short period of time, and depending upon the newspaper; can reach a very

representative sample of job candidates. Further, newspaper, advertisements offer

flexibility to employers, who may specify that applicants apply for the position in person,

send resume and salary requirements through mail, or telephone or personally drop in the

personnel office during prescribed hours on certain days.

6. Executive Search Firms (Head Hunters): - The executive recruitment agencies directtheir efforts toward finding high – level managerial and professional’s talent for

organizations. They also provide a more complete range of services to their client

organization. The search firms attempt to find the person who best suits the requirements

of the organizations and will adjust best. Their fees are rather high (equal to one month’s

salary of the successful applicant or sometimes as much as 30 percent of a year’s salary

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of the successful applicant). But they provide a specialized service that may require

personnel skills not available in the organization’s own personnel department. Further,

the best talent is already employed. To the extent that this is true, executive search firms

may provide high quality talent by luring away employees from other organizations.

Because of this, these firms are called “Head Hunters”.

7. Campus Recruiting: - Many entry – level professional and managerial jobs require a

college degree. Perhaps the best source of college graduates is the college campus.

Unfortunately for the organization, college recruiting can be extremely difficult, time

consuming, and expensive. But pressures from external environment will continue to

force organizations to be highly visible and active in this kind of recruiting.

In college recruiting, the organization sends an employee (recruiter), or a team (recruiting

team), to a campus to interview candidates and describe the organization to them. They

act as representatives to individuals (who typically may have no first-hand knowledge of

the firm), as well as a first – level screening agent for the organization.

Advantages of External Sources

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The merits of external sources of recruitment are as under:

1) Qualified Personnel: By using external sources of recruitment, the management

can make qualified and trained people to apply for vacant jobs in the organization.

2) Wider choice: When vacancies are advertised widely, a large number of

applicants from outside the organization apply. The management has a wider

choice while selecting the people for employment.

3) Fresh talent: The insiders may have limited talents. External sources facilitate

infusion of fresh blood with new ideas into enterprise. This will improve the

overall working of the enterprise.

4) Competitive spirit: If a company can tap external sources, the existing staff will

have to compete with the outsiders. They will work harder to show better performance.

Disadvantages of External Sources

The demerits of filling vacancies from external sources are as follows:

1) Dissatisfaction among existing staff: External recruitment may lead to

dissatisfaction and frustration among existing employees. They may feel that their

chances of promotion are reduced.

2) Lengthy process: Recruitment from outside takes a long time. The business has to

notify the vacancies and wait for applicants to initiate the selection process.

3) Costly process: It is very costly to recruit staff from external sources. A lot of

money has to be spent on advertisement and processing of applicants.

4) Uncertain response: The candidates from outside may not be suitable for the

enterprise. There is no guarantee that the enterprise will be able to attract right

kinds of people from external sources.

Standard Recruitment Process

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REQUISITEREQUISITE DETAILSDETAILS WHICHWHICH CONFIRMSCONFIRMS::

•• DDETAILSETAILS OFOF THETHE POSTPOST..

•• JJOBOB DESCRIPTIONDESCRIPTION && SPECIFICATIONSPECIFICATION..

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•• FFINALINAL APPROVALAPPROVAL FROMFROM HHEADEAD OFOF THETHE DEPARTMENTDEPARTMENT..

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HEHE//SHESHE JOINSJOINS..

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SELECTION

SELECTION is a process of picking out men best suited for the organization. Selection is

the part of the employee resourcing process, which involves choosing between applicants for

jobs; it is largely a negative process, eliminating unsuitable applicants.

Selection forms a crucial manpower function. The trends towards automation and

computerization have increased the significance of this process.

Selection is the process of securing relevant information about an applicant to evaluate his

qualifications, experience and other qualities with a view to matching these with the

requirements of a job. It is essentially a process of picking out the man or men best suited for the

organization’s requirements. Selection standards and personal qualities of a candidate determine

whether or not he is placed on a job. Explicitly, selection standards are adjusted to the needs of

the organization and labor market situations. The applicants pass or fail on specific selection

standards of “hurdles” and those surviving these standards or hurdles for specific jobs are placed

in vacant positions. Thus, an effective selection program is a non – random process because

selected have been chosen on the basis of the assumption that they are more likely to be “better”

employees than those who have been rejected. This process should be called ‘rejection’ since

more candidates may be turned away than employed. That is why; selection is frequently

described as a negative process in contrast with the positive nature of recruitment.

The concept of strategic selection aims to provide a link between the company’s business

demands and the ‘kind’ of personnel who can deliver the demands there on. Because improper

selection is so costly, management must take better use of all available techniques to ensure that

the majority of those who are hired will work to the ultimate advantage of themselves and their

organization.

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Meaning of Selection

Selection is a process of collection & evaluating information about an individual in order to

extend an offer of employment. This employment could be either a first position for a new

employee or different position.

The basic objective of selection is to separate from the pool of applicants for a job, those that

have the appropriate knowledge, skills & abilities (KSA) to perform well on the job. It cannot be

assumed that everyone who applies for a job is qualified to actually perform it. Therefore to find

the qualified applicants we must collect information from the applicants about how much of

skills they possess.

This systematic collection of information from applicants can range from being fairly simple to

fairly complex.

PURPOSE OF SELECTION

The basic purpose of the selection process is to “choose right type of candidates to man

various positions in the organization”.

In order to achieve this purpose, a well-organized selection procedure involves many steps and

at each step, unsuitable candidates are rejected. In other words, the aim of selection process is to

reject the unsuitable candidates.

SIGNIFICANCE OF SELECTION

Selection is a critical process these days because it requires a heavy investment of money to get

right types of people. Induction and training costs are also high. If the right types of persons are

not chosen, it will lead to huge loss of employer in terms of time, effort and money. Therefore, it

is essential to devise a suitable selection procedure. Each step in the selection procedure should

help in getting more and more information about the applicants to facilitate decision-making in

the area of selection.

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Absenteeism and Employee Turnover are the important problems, which are being faced by most

of the organizations. The intensity of these problems can be reduced if in the future all selections

are made carefully. Whenever unsuitable employees are appointed, the efficiency of the

organization will go down. Such employees will shirk work and absent themselves from work

more often. They may also be compelled to leave their jobs. If this happens, all the expenses

incurred on the selection and training of such employees will go waste.

Scientific selection and placement of personnel will go a long way towards building up a table

work force. The objective of scientific selection is to place on each job a worker who can

maintain a given output with minimum expenditure of energy and who will be best fitted to the

job.

THE BENEFITS OF SELECTING RIGHT KINDS OF PEOPLE FOR VARIOUS JOBS

ARE AS FOLLOWS:

It will keep the rates of absenteeism and labor turnover low.

Competent employees will show higher efficiency and enable the organization to

achieve its objective effectively.

The rate of industrial accidents will be considerably low if suitable employees are

placed on various jobs.

When people get jobs of their taste and choice, they get higher job satisfaction, and morale of

these employees is also high that eventually results in the productivity and hence the growth of

the candidate and the organization as well.

29



TRAINING

The term training refers to the acquisition of knowledge, skills, and competencies as a result of

the teaching of vocational or practical skills and knowledge that relate to specific useful

competencies. It forms the core of apprenticeships and provides the backbone of content at

institutes of technology (also known as technical colleges or polytechnics). In addition to the

basic training required for a trade, occupation or profession, observers of the labor-market

recognize today the need to continue training beyond initial qualifications: to maintain, upgrade

and update skills throughout working life. People within many professions and occupations may

refer to this sort of training as professional development.

Some commentators use a similar term for workplace learning to improve performance: training

and development. One can generally categorize such training as on-the-job or off-the-job:

• On-the-job training takes place in a normal working situation, using the actual tools,

equipment, documents or materials that trainees will use when fully trained. On-the-job

training has a general reputation as most effective for vocational work.

• Off-the-job training takes place away from normal work situations — implying that the

employee does not count as a directly productive worker while such training takes place.

Off-the-job training has the advantage that it allows people to get away from work and

concentrate more thoroughly on the training itself. This type of training has proven more

effective in inculcating concepts and ideas.

Training differs from exercise in that people may dabble in exercise as an occasional activity for

fun. Training has specific goals of improving one's capability, capacity, and performance.

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Types of training

Physical training

Physical training concentrates on mechanistic goals: training-programs in this area

develop specific skills or muscles, often with a view to peaking at a particular time. Some

physical training programs focus on raising overall physical fitness.

Religion and spirituality

In religious and spiritual use, training may mean purifying mind, heart, understanding and

actions to obtain a variety of spiritual goals such as closeness to God or freedom from

suffering. Note for example the institutionalized spiritual training of Buddhism, the

Threefold Training, or discipleship in Christianity.

31



PAYROLL

Employee compensation refers to all forms of pay or rewards going to employees and arising

from their employment. It has two main component:

Direct financial payments.

Indirect payments.

Definition

Payroll is a record showing the computation of the wages and salaries payable to each employee

for a particular period, normally a month. It discloses the following information:

The gross amount of wages earned by each employee for a specific period with its

various components.

The deductions made from the wages under the various heads and

The net amount payable to each employee. This amount should be the difference between

the gross amount and the deductions.

Functions of payroll section

1. Maintenance of relevant records containing job description, job classification, department

and wage rates for each employee.

2. Computation of employees’ wages.

3. Preparation of Payroll with reference to time cards, piece work cards etc and verify their

correctness.

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4. Computation of authorized deductions.

5. Disbursement of wages.

6. Ensure the remittance and deposit of statutory deductions made with appropriate

authorities, within the stipulated time.

7. Furnish necessary report to the management.

Preparation of Payroll

During the course of the project the payroll were processed for the BASL employees. The

following information appears in the payroll format followed by the organization.

1. Name of the department.

2. Period covered by the Payroll.

3. Name of the employees.

4. Employees Oracle ID.

5. Earnings of the employees.

6. R&R Details.

7. Loan Details.

8. Absent Data.

9. Absent Reversal.

10. Master Change.

11. Status Change.

12. Insurance.

13. IT Declaration.

14. Deductions.

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Components of Salaries

Salary in general, comprises of following components;

Basic Salary

Dearness Allowance.

Allowances for different purpose:

• House rent allowance

•

City compensation allowance.

• Education allowance

• Conveyance allowance

• Medical allowance.

• Travelling allowance.

• Any special allowance for any particular purpose

Bonus.

Fringe Benefits

1. Basic Salary:

It is stable payment paid over a period of time-monthly, weekly or daily. It is a price paid

for services of specific level of skills and experience required for a particular job. It

remains rather fixed within a given range and not subject to fluctuations.

2. Dearness Allowance:

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This allowance is paid for neutralizing the high cost of living and protects the real wages

of the employees. It provides a relief measure to compensate for the increase in the prices

of essential commodities. It seeks to help the employees in inflationary conditions by

giving an additional allowance to compromise the rise in the cost of living.

3. Allowances:

House rent allowance:

This is an allowance paid to compensate the employees for their rented accommodation.

The amount of HRA depends upon the grade of the employee and is not necessarily equal

to the amount of rent paid by the employee.

City Compensation allowance:

The cost of living is different in different cities depending upon the size and population of

the city. Hence to compensate for the high cost of living in large cities, a city

compensatory allowance is paid.

Educational allowance:

This allowance is given to take care of the educational expenses of the children of the

employees. It is not necessarily equal to the expenses incurred.

Conveyance allowance:

It is given by the employer to the employee for meeting the conveyance expenses in

connection with the performance of his duties in respect of his employment.

Medical allowance:

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This is paid to compensate for the medical expenses of the employee. It is given as an

allowance related to the grade of the employee.

Other allowances:

Other allowances include the following allowances:

• Incentive.

• Shift allowance

• Hardship allowance

• Mobile allowance

• Marriage allowance

• Anniversary allowance

Fringe Benefit

These are the monetary and non-monetary benefits provided by the employer to and fro the

benefit of the employees. These benefits are not related to the employee’s productive efforts and

performance. Some examples of these benefits are low costing housing, free medical facilities,

subsidized canteen, educational facilities etc.

Types of Fringe Benefit

Normally, the fringe benefits can be grouped into the following four group:

1. Payments without work; paid holidays, etc

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2. Retirement benefits; provident fund, pension, gratuity, etc

3. Safety and health benefits- medical benefit, accidents compensations, etc

4. Recreation and other benefits; sports facilities, canteen facilities, etc.

Deductions

Deduction from the wages of an employed person shall be made only in accordance with the

provision of relevant Acts and may be of the following kinds:

• Fines

• Deductions for absence from duty

• Deductions for house-accommodations supplied by the employer.

• Deduction for recovery of advances

• Deduction for recovery of loans

• Deduction for recovery of income-tax

• Deduction for reissuance of ID-card

• Deduction for canteen facilities

• Deduction for cab facilities

• Deduction for mobile

• Deduction for the payment of co-operative societies

• Deduction for insurance

37



Process Implementation at Oriental Weavers

RECRUITMENT and SELECTION PROCESS at OW

38

Identify the requirement

Advertise for vacancies

Collect CVs

Recruit appropriate candidates

Conduct panel interview

Select right person for right job

Collect complete set of documents

Sign the contract and appoint the candidate for a 90 days trial period

Final note of selection after trial period evaluation



PROCESS IN DETAIL

Step 1:Select all company staff and employers by building on the highest standards to ensure

selection of the work will be performed to the fullest extent.

Step 2:When there are vacant posts in different departments, the official director makes a

statement of need and functions and send it for HR department. (Appendix I)

Step 3:The HR department analyzes the immediate and important requirements (Appendix II)

and then makes the declaration in following ways:

Declaration in official newspapers

Declaration in the employment offices that the company deals with.

Step 4:First 7 days of month, CVs of applicants are collected and are filtered on the educational

grounds and names of applicants recruited are stored. (Appendix III)

Step 5:Panel interviews are conducted for the recruited applicants from 8th

to 10th

day of themonth, and the results of each interviewer are recorded. (Appendix IV)

Step 6:All the selected candidates are required to complete their file including documents like:

Academic qualifications

Date certificate

Military Status certificate

Secured criminal record

Step 7:The newly selected employee signs the contract with the company and is appointed for a

trail period of 90 days

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Step 8:The concerned department head conducts a job evaluation after 90 days of trial period

(Appendix V). All the employees scoring more than 60% are considered eligible for work and

are accepted in the organization family.

TRAINING PROCESS at OW

After the employee is made permanent, a periodical job evaluation is conducted every 6 months

for each employee (Appendix VI). On the basis of this evaluation result, the concerned

department, the training department and the HR department decides what type of training the

concerned employee should be provided with.

The company also conducts some necessary training for the job before the employee is handed

over their duties.

There are two basic groups of training which are:

1. Some necessary trainings conducted outside the Organization

2. Some company and job specific training conducted within the Organization.

Training within the Organization

The training course for a new employee constitute of:

• General idea about Oriental Weavers group

• Work direction inside Oriental Weavers group

• Roles and work traditional inside Oriental Weavers group

• Care and Services

• Promotion system and attitude evaluation

• Social care

• Fire training

• Technical training

• Industrial security

40



The other job specific trainings are conducted as per the requirement. The criteria to judge the

training needs depend on the production recorded and the job evaluation of each employee which

is conducted every six months.

Training outside the Organization

There are some training programs which are necessary for the employees but are not conducted

within the Organization but the company arranges for them outside the Organization in

collaboration with some institutes providing these training. These training programs include:

• Management skills

• PLC

• Education method and workable to keep out the static stored

• Interior control

• Make planning balance

• English language

• Information technology

• ISSO 18001

41



PAYROLL at OW

Components of Payroll in Oriental Weavers

There are eleven components covered in Payroll chart of the company, which are as follows:

1. Loan Details

2. R&R Details3. Earnings

4. Deduction

5. Absent Data

6. Absent Reversal

7. Master Change

8. Status Change

9. E-Code Revoke

10. Insurance

11. IT Declaration

1. Loan Details:

In the organization, the loan given by the company to its employees when they need to take

loan. In the organization the loan is given without any interest, the employees need to

pay back the loan amount to the company minimum in 6 installments and maximum in

10 installments. The employees can be given the following types of loan:

Society Loan: Society loan is given to the employees on their application for the

renewal of their home etc.

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Festival Advance: The employees asked for the festival advance at the time of

any festival like Moharrum, ID-UL-ZUHA, ID-UL-FITR and Christmas etc.

Salary Advance: The employees can take advance salary if they need. Maximum

amount given by the company as salary advance is 75% of gross salary.

Emergency Loan: Emergency loan is given to the employees when there is any

emergency. Maximum amount given by the company for emergency loan is

2000 L.E.

2. R&R Details: Reward and Recognition is given to the employees for their

performance and achievements.

3. Earnings:

Apart from basic salary employees earn some amount under the following heads:

• Incentive:

An incentive is an additional benefit which makes the employees motivated to give

better result. “It is related with wage payment plans which tie wages directly or

indirectly to standards of performance or to the profitability of the organization”.

The company provides various incentives to its employees once they join the

organization. Some are in the monetary terms and some are awards and rewards are

non monetary. Some of such incentives which an employee receives are as follows:

As soon as the employee joins the company, Oriental Weavers provide 67%

health insurance from the company side and 33% from the employee’s salary.

This is necessary for all the employees working in Oriental Weavers to have

health and life insurance

After 90 days of trial period, if the employee is selected as permanent then the

company bears the charges of the life insurance with the amount depending on the

post of the employee. In case of death of the employee company decides a budget

that will be provided to the employee’s family. This budget depends on the post

the employee was holding at the time of his demise whereas a minimum and

43



maximum amount is already set by the company which is 75,000 L.E (Egyptian

Pound) up to 250,000 L.E.

After an employee has completed six months in the organization as an employee,

the company sanctions 15 days leave per year for each employee.

After one year of joining, the company gets the medical insurance of the

employee done. This medical insurance means that the company bears all the

expenses occurring in the treatment, medication or health care of the concerned

employee.

All the employees are given bonuses and rewards on festivals, occasions and also

as performance appraisal. These bonuses reach the limit of 6 to 8 months salary

per year for the worker class specially.

After 5 years of joining, if the employee is over 40 years of age then the company

arranges for their trip to Saudi Arabia for HAJJ. All the expenses including

tickets, fooding, lodging, etc are taken care of by the company.

Company cannot provide transportation all over the Egypt therefore it just

provides transportation in three or four cities which are near to the city where

headquarters are located. These cities include Cairo, 10th of Ramadan city

(location of headquarters), Ramses, etc.

If any employee performs well then in order to reward them and keep them active

and innovative, the company sends them on a trip to a nearby place for a day.

Oriental Weavers decided last Wednesday of every month to be a trip day. One

month employees with single marital status are sent on the trip and the second

month employees who wish to go with their family are given a chance.

The working hours are 8 hours per day but if any employee has a duty schedule of

working 12 hours per day then they are paid extra which is counted as overtime.

On the basis of experience, seniority and educational qualifications, employeesare promoted to the higher post. All the top management posts are filled by

internal recruitments among which the main source is promotion.

• Hardship Allowance:

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When the employees were working in very remote area where there was a risk to

their life, they were given 100 L.E per month as hardship allowance.

• Employee Referral:

When any employee refer any other person’s name for a particular job and if he/she

joins the organization then the employee get 100 L.E after the completion of third

month of the service of referred employee.

4. Deduction:

The deductions are being made from the employees’ salary.

In Oriental Weavers, the following amounts are deducted from the employees’ salary:

• Reissuance of lost ID card:

If any employee lost his ID card then 30 L.E is deducted for reissuance of lost ID

card from his gross salary.

5. Absent Data:

The no of days the employee is absent and their leave balance is maintained in the record of

absent data.

6. Absent Reversal:

If the employees submit their leave application after their joining the company and their

annual leave (during probation period- 12 days and after confirmation-21 days) is still

balance then their absent data is reversed and recorded as paid leave in payroll chart.

7. Master Change:

Any changes in the details of the employees are recorded in the master change for the further

correction like;

Correct Date of Birth and Date of Joining.

Correct Designation sand Level.

Correct location and Circle.

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Change in Bank name.

Change in Account number.

Change in PAN card number etc.

8. Status Change:

Any change in the location and circle of the employees is mentioned in the status change in

the payroll chart for the further consideration.

9. E-Code Revoke:

When any employee left the organization and again he joins the organization then his earlier

oracle code is revoked and given a new oracle code.

10. Insurance:

In the organization, the employees were given insurance by the company. The company pays

67% whereas the employee pays 33%. (Mentioned earlier)

11. Income Tax Declaration:

In the organization, the employees are given the income tax declaration form to declare their

explanation against income tax like;

Medical Premium

PPF

ULIP

Life Insurance Policy

Children Education Fee

Mutual Fund

Infra Bond

NSC/Post Office

Interest

Principle amount etc.

46



RESEARCH METHODOLOGY

SAMPLING DESIGN

DEFINING THE POPULATION.

There are approximately 8,000 employees at Oriental Weavers working as permanent

employees.

SAMPLING UNIT

It consists of the employees of different Grades:

• Top Management ( TM )

• Engineers (Eng)

• Technicians ( T )

• Worker class ( E )

SAMPLE STUDY

The researcher went for a sample study rather than census as it was not possible to cover

the whole population in the given time period.

DURATION OF THE STUDY

15th May 2008 to 15th June 2008

SAMPLE SIZE

250 employees

SAMPLING TECHNIQUES

47



Convenient sampling.

DATA COLLECTION

Data is primarily of two kinds:

1). Primary data

2). Secondary data

PRIMARY DATA

Primary data was obtained through observations and direct communication with employees

through informal interviews. The information was collected on the basis of structured

questionnaire.

SECONDARY DATA

The secondary information was collected from:

• Organizational brochure

• Previous records

• Documents

• Personal manuals.

QUESTIONNAIRE

1) Primary role is to draw accurate information from the respondents.

2) It provides structure to the interviews that helps comparability and assessing the overall

picture.

3) The purpose of the questionnaire is to provide a standard form on which facts, comments,

and attitudes can be recorded.4) Questionnaire facilitates data processing.

SCALING TECHNIQUE USED

Four point Likert scale was used for the study.

1. Strongly Disagree

48



2. Disagree

3. Agree

4. Strongly Agree

RESEARCH PROCEDURE

TOPIC OF THE STUDY

The topic of the study is “A Study on HR activities at Oriental Weavers”.

PERIOD OF THE STUDY

The study was conducted for the period of 60 days i.e. from 15th of May to 15th of June 2009.

PLACE OF THE STUDY

The study was conducted in all the divisions of Oriental Weavers, specifically at the Export

department

PURPOSE OF THE STUDY

The employer, the employee and the state have a definite role to play. If each performs it

properly and harmoniously, the problems of inefficiency, undesired conflicts, low productivity,

dissatisfaction on the part of employees and their low morale resulting can be largely eliminated.

49



ANALYSIS

All the results shown below are in percentage indicating percentage of respondents those

who selected “Agree” or “Strongly agree” as their response

I Recruitment and Selection Process TM Eng & T E

1. The complete process was systematicallymanaged. 71.5 76.7 72

2 I am selected for the job I desired and it

requires the skills in which I specialize

70.2 75 71

3 My Job profile has opportunities of career

development.

71.2 75 66.5

4 I am aware of the rules and regulations of

Oriental Weavers and have a positive

approach to its implementation in work

place.

73.7 75.2 71.2

5 I was taken care of after joining the

company in the trial period of 90 days

67.5 73.5 65.5

II Training and Development Process

6 Proper training programs are conducted atregular intervals.

70.7 76.7 66.5

7 Good quality material or simulation

program is used for the purpose of training.

69.5 78.7 71.2

8 Training programs are able to develop

general as well as specialized skills in the

employee.

74 73.5 74.2

9 The seriousness of training requirement is

considered and training is provided as andwhen required.

77.2 84.5 75.2

10 Trainers are expert in their field and able toextend quality knowledge to the trainees.

65.7 73 70

III Employee Welfare Process

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11 The place chosen for the trip was worth

visiting and convenient to reach.

74 74.5 65.5

12 The quantity and quality of food providedin the trip was good.

62.2 73.5 69.7

13 I receive rewards as a result of good work and this always motivates me to perform

better.

68 70.7 72.2

14 My working hours are convenient. 78 78.2 72.7

15 I am not overloaded with work and I am

paid well for extra time and extra work.

56.7 67.7 56

IV Concern Resolution

16 I am fully aware that I should avoid anyconflict of interest in any form and should

not seek any gift or contribution from a

business partner.

84.7 88.7 77

17 Adequate channels of communication areavailable to seek clarification and report

concerns to General manager without fear

of retribution.

69.4 77 72

18 The concern resolution mechanism is well

understood and has sufficient credibility

67.7 77.5 69.5

19 Human Resource Office maintains

confidentiality in resolving concerns.

72 76.7 72.5

20 Management has set-up an effective systemto take action in case of proven violation of

Oriental Weavers.

76 78.2 73.2

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Overall Comparison in results

52



53



FINDINGS OF THE PROJECT

Trial period for all the grades did not result in a satisfactory level which indicates that the

employee is not accepted well during this trial period of 90 days The E grade employees have comparatively low level of awareness about the company in

general.

Most of the employees are not given complete presentation of the company and hence

they are unaware of all the rules in detail

Union officers have not actively participated & promoted the importance &relevance of

OWE.

It is observed through assessment & analysis of survey that the average level of

awareness among the E grade employee is lower than that of T & ENG grade.

Concern Resolution mechanism is not properly communicated.

Senior management is not using the available forums of communication with the lower

grades properly.

Technical training workshops are not sincerely conducted periodically as required.

Employees pay attention and attend trainings provided outside the Organization to

enhance their softskills.

Almost all the employees know that they cannot accept any gift or contribution from a

business partner.

Employees do not like to communicate much in English language which acts as a barrier

to their career developement

Adequate channels of communication need to be developed to report concerns and to

increase the credibility of concern resolution mechanism.

Any change in the management at upper level is not properly communicated to the

employees at lower level.

54



CONCLUSION

I had collected a snap opinion survey and collection of perception through structured

questionnaire to find out the level of awareness of all the employees on various grades. Human

Resource Management is largely about managing the risk to an organization’s reputation and

avoid bad publicity that several well known companies have experienced as a result of their

perceived corporate responsibility.

The success of the Human Resource management program will ultimately depend on having the

right person for the right job at the right place and in the right time. It will also depend on the

cause being championed and supported by senior managers.

HR activities is about ensuring acceptable standards of behavior throughout all the operations of

a business where ever they are. There may be short term cost involvement for a specific purposeor project or it might be a long term commitment of the employee with the organization,

businesses that are trusted and respected by their employees, suppliers, customers and the wider

community are more likely than businesses that are not to provide their shareholders with a better

return and to be sustainable.

55



LIMITATIONS OF THE PROJECT

1) The major problem was the language barrier and employees there specially E grade

employees were unable to communicate in English and I did not have a command on

Arabic (Local Language)

2) Due to the work pressure, employees were not available always and respond properly.

3) The sample size does not cover the employees of all the shifts.

4) Employees were reluctant to be objective

5) Employees were apprehensive about the outcome of the survey i.e. it will not have much

effect.

6) E grade employees were not able to understand the content of the questionnaire.

7) The survey is rather a biased one to a certain extent for the employees were discussing

and copying each other’s responses.

56



RECOMMENDATIONS

There would be some recommendation which I prefer will be beneficial for the Organizational

Development. Some of these points are:

1. More emphasis on English language should be given. Each employee should necessarily

take part in training for English speaking course to bring the functions at the Organization

more at ease.

2. Proper trainings should be conducted for new employees and it should be made

compulsory for all new employees to attend.

3. Senior employees or the supervisors must assist the new employees training programs.

4. Appreciation should be provided to the employee at all conducts of good work

5. Bonuses and increments boost up the employees morale so these bonuses, increments and

festival allowances should keep flowing among workers.

6. New ideas coming from worker class employees should be given a consideration by the

top management which will make the employees feel a part of the Organization family.