SALARY AND BENEFIT PACKAGES AT K&NS

HUMAN RESOURCE MANAGEMENT REPORT

SUBMITTED TO:
MS. TEHZEEB SAKENA AMIR

SUBMITTED BY:
SONIA KHAN M. FARAZ FAROOQI SARAH HAIDER SYED OSAMA BIN HASEEB NIDA SIDDIQUI ASFIA SULTANA

SALARY AND BENEFIT PACKAGES AT K&NS

ACKNOWLEDGEMENT
December, 14 2012

First of all we would thank Allah (S.W.T) for giving us the oppurtunity and ability to write this report. Then our sincere thanks to MS. TEHZEEB AMIR for guiding us and giving us the valuable knowledge through her experience and practical understanding of human resource management. It has been great pleasure and learning experience throughout the whole semister. We would like to thank you for teaching us and sharing with us your valuable information. We are also very thank ful to Mr. Shahabuddin Valimohamed, chief of Human Resource at K&Ns, who give us his precious time and share with some his companys salary and benefit programs he gave us a lot of information which helped us in understanding the practial importance of salary and benefit programs in organizatins.

Sincerely,

Sarah Haider Sonia Khan Faraz Farooqi Asfia Sultana Nida Siddiqui Syed Osama Bin Haseeb.

SALARY AND BENEFIT PACKAGES AT K&NS

BRIEF INTRODUCTION ABOUT K&Ns:

More than 45 years ago, Khalil Sattar recognized the potential to move from domestic to industry scale production and his company has triumphed through many ups and downs in the market. Today K&Ns is the epitome of a fully vertically integrated poultry business from the production of Cobb parent stock to the chain of highly rated K&Ns Chicken Stores selling chicken and value-added chicken products in 15 of the largest cities in Pakistan. It was all so different when the founder, Khalil Sattar, a college student, began a small broiler farm with 1000 chicks in 1964. At that time, there was no commercial poultry production in Pakistan. All chickens were backyard poultry known as Desi, grown mainly by families in small numbers around their own homes in the villages. K&Ns, a founding pillar and beacon for Pakistans Poultry Industry started in 1964 with a single minded objective of providing better nutrition for health and happiness of the nation. With five decades of poultry expertise and a commitment to food-safety, we bring you safe and healthy chicken. The K&N's Way by managing and controlling all stages of poultry production under one umbrella, and conducting quality assurance lab tests at every stage, from grandparent breeding right down to delivering products to your neighborhood.

PRODUCT LINE OF K&NS:

K&Ns, product line includes. Processed Chicken Ready-to-cook Products Fully Cooked Products Deli Line Products.

SALARY AND BENEFIT PACKAGES AT K&NS

DESCRIPTION ABOUT SALARY, BENEFITS AND BONUSES: SALARY

A salary is a fixed compensation that is being paid for the services offered after the completion of the duration i.e. a moth or it may vary according to the nature of the job or organization. Salary in most of the organizations do not act as a motivator for the employees because employees know that even if they do not give out their maximum output to the organization they would be paid at the end of the month. So, the salary discourages the employees power to give out their maximum output or productivity. Salary differs with the wages. As salary is paid for the services rendered at the end of the month, wages are paid on the hourly or daily rate basis. Another point where salary and wages stands different from each other is that salary is paid for the white collar jobs whereas the wages are paid for the blue collar jobs.

SALARY BY LAW
The Payment of Wages Act, 1936, regulates the payment of wages to certain classes of industrial workers. It applies to those workers whose monthly wages do not exceed Rs. 3,000 (51.68 US$) and are employed in factories, railways, plantations, workshops and establishments of contractors. The main object is to regulate the payment of wages to certain classes of persons employed in industry. The provisions of the Act can, however, be extended to other classes of workers by the Provincial Governments after giving three months notice to the employers of their intention to do so. The Act stipulates that wages to workers employed in factories and on railways are to be paid within seven days of completion of the wages period, if the number of workers employed therein is less than 1,000. In other cases, the time limit for payment of wages to the workers is 10 days. No deduction can be made from the wages of the workers excepts as specified in the Act, such as for fines, breach of contract and the cost of damage or loss incurred to the factory in any way other than an accident.

The employer is responsible for the payment of all wages required to be paid to persons

SALARY AND BENEFIT PACKAGES AT K&NS employed by him or her. Similarly any contractor employing persons in an industry is responsible for payment of wages to the persons he or she employs. The persons responsible for payment of wages must fix wage periods not exceeding one month. Wages should be paid on a working day within seven days of the end of the wage period, or within ten days if 1,000 or more persons are employed. The wages of a person discharged should be paid not later than the second working day after his or her dischargei.

SALARY DETERMINATION STEPS

There are mainly four steps that are used in determining the salary payment for a particular job: 1- Job description: This is the first step of Salary payment method. In this step we describe the type of person needed for a particular job, the skills required, the qualification of the person, the legal requirements, and responsibilities and to whom the person should report. 2- Job evaluation: This is the second step to salary payment. Here we define and evaluate the worth and the relative importance of the job that it holds in the organization. This evaluation helps in drawing out a compensation plan for the job under consideration. 3- Salary survey and analysis: In this step we use certain statistical tools for determining the salary payment for a particular job. We collect data from several employers who are the big pay masters. This helps in equitable salary distribution in the organization. 4- Salary structure: In this step we set out a range of salary payment from minimum to maximum depending on the grades and bands in the organization.

BENIFITS
The benefits processes belong to most important HR Processes, which are critical for the organization. Benefits may include group insurance health, dental, disability protection, retirement benefits, tuition reimbursement, sick leave, vacation (paid and non-paid), funding of education, as well as flexible and alternative work arrangements. Although expensive, there are many intrinsic benefits to providing your employees with a comprehensive benefit plan. For most, it is the ability to find and keep highly qualified staff that is the key driver.

SALARY AND BENEFIT PACKAGES AT K&NS Here are just a few of the advantages of offering benefits to your employees: For employers:

By providing increased access and flexibility in employee benefits, employers can not only recruit but retain qualified employees

Providing benefits to employees is seen as managing high-risk coverage at low costs and easing the company's financial burden

Employee benefits have been proven to improve productivity because employees are more effective with they are assured of security for themselves and their families For employees:

Employees can experience a peace of mind which leads to increased productivity and satisfaction by being assured that they are their families.

Employees with personal life and disability insurance can enjoy additional protection including income replacement in the event of serious illness or disability

Employees can feel a sense of pride in their employer if they are satisfied with the coverage they receive

BONUSES:
Bonuses are the compensation for work performed above and beyond normal or expected duties or it may be hourly rate of pay. Performance bonuses are often used as incentives for increased productivity of an individual or team in a corporate environment. Bonus pay can be distributed randomly as the company can afford to pay a bonus, or the amount of the bonus pay can be specified by person. Bonus pay is used generally to recognize and reward employee contribution toward company productivity, profitability, team work, safety, quality. Bonus pay is awarded in a variety of formats including profit sharing bonuses, holiday bonus, deferred compensation, cash sales commission and others.

SALARY AND BENEFIT PACKAGES AT K&NS

SALARY AND BENEFIT PACKAGES AT K&NS:

SALARY AT K&NS:

In K&Ns salary is not a motivating factor for their employees because it is predetermined element and fixed amount which employee get in the end of every month but it is belongingness, if employee work in particular organization so it influence a lot and appreciations are given to their employees according to their performance for the purpose of motivating them or achieve specific target. In K&Ns, they have their own standards of setting salary. Basically they have made ranges of all different position of employees and they pay accordingly. The turnover rate of K&Ns is almost zero because their employees are satisfied with their friendly environment, decentralized structure in which employee can share ideas etc and competition also exist among employees. K&Ns also provides increment in salary above the inflation rate. For example, if inflation rate is 10% so they will give salary 12% and this is also good reason to retain their employees. Increments and promotions are given on the basis of employees competency, target and performance based. If employee performs well according to organizations requirement so definitely he/she gets rewards. They are having opportunity to give provident fund to the employees in whom they deduct 10% of basic salary of employee and same contributed by organization and after the retirement they given to their employees in form of large amount.

BONUSES:

The Bonuses K&Ns provided to the employees are: Eidy Bonus:

K&Ns provides eid bonus to their employees every year. They gave eid bonus as the complete salary of the employee with the eid day leave. If for any reason employee has to come on eid day for work then they gave them holiday other day than the eid day without deducting the salary.

SALARY AND BENEFIT PACKAGES AT K&NS Workers Participation in Profit Fund (WPPF):

This benefit of bonus is implemented according to the law. It is introduced in Pakistan in 1968 with the name of Companies Profits (Workers Participation) Act 1968. It says that every employee should be provided the profit in some percentage if company e arns profit. K&Ns implement this law by giving their employees Workers participation in profit fund (WPPF) (each year) when the company makes profit. Performance Bonus:

As the name of the bonus explains Performance Bonus it is given to the employees on the basis of their performance. It is given to the employees of the K&Ns based on their performance. It is given to their employees to increase their productivity. It is given on the extra ordinary work of the employees. Annual Bonus:

K&Ns provide 30% of the gross salary as annual bonus to their employees. The annual bonus payment is also explained in Pakistans law with the name of The Payment Bonus Act, 1965. It explains that whether the employees contribute in the achievement of profit for the organization or not they should be paid annual bonus.

OTHER BENEFITS PROVIDED BY THE COMPANY:

Sick Leaves

K&Ns give 15 days sick leave benefit to their employees every year. Annual Leaves:

K&Ns give 30 days annual leave benefit to their employees. They have implemented this leave program twice as mention in the law of Pakistan. In Factor Act of Pakistan, 1934 it is explained that employees can have 15 days annual leave. This is one of the important or motivating benefits that K&Ns provides to their employees.

SALARY AND BENEFIT PACKAGES AT K&NS Soft And Technical Skills:

K&Ns provide different training to their employees. The training may include technical or soft skills. This is another benefit that the organization provides to them. The training may conduct in the home country or abroad all the expenses of the training that are given to them are bear by the company.

CONCLUSION:
K&Ns are not big pay masters but still their turn over rate is almost 0% which indicates that for employee retention and motivation, salary or other benefit programs are not the only motivating factors but there are things as well such as supportive and competitive environment, where employees feel free to come up and share their own innovative ideas, where task are challenging and growth opportunities are high and employers are unbiased. In K&Ns the line managers perform the role of HR managers because they are more close to the employees and can judge their performance easily.

http://www.labourunity.org/labourlaws.htm