Acknowledgments

First, we thank Allah, the Almighty without whose will, nothing is possible and with whose mercy and blessing everything is possible for us. Then we would like pay regards to our beloved Parents whose guidance, motivation and support remained with us through every stage of our life. This project would be a dream if we were not able to get the cooperation of the following representatives from Sadaqat Corporation Mr. Bashir Ahmed, Incharge Packing Department Mr. Ehsan, Manager I.T. Mr. Malik Muhammad Afzal, Incharge Sampling Department In addition, especially both of the Managing Partners of the firm, Mr. Afzal Awan and Mr. Akhlaq Khan. These people provided us with all the information and resource regarding this project. At last, we pay special thanks to our most respected Course Instructor Mr. Owais Ejaz Khan whose absolute knowledge and motivation forced us to achieve this level of interest to excel in the field of Human Resource Management and made us understand the value of this subject in our professional career. We dedicate this effort to our most beloved Holy Prophet P.B.U.H, for whom the whole Scenario of Universe and its actors and factors are created. For sure, among these are our pen and paper.

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Executive Summary

This project report gives its reader a complete view of the business type and its procedural activities and policies of Sadaqat Corporation (Pvt.) Ltd. It includes the complete introduction of the company, its owners, its vision, mission, business objectives and code of conduct. Then comes the complete production procedure from purchase of the raw material to shipment of the order. This project report is made to bring in readers knowledge the understanding, implementation and practice of Human Resource Management within the company and to some extent within the whole garments industry. Human Resource Management is still not in practice in Sadaqat Corporation and its competitive market. Therefore, we have tried to present their conventional trends and practices of managing human resource (successfully) according to them. This segment of the report is divided in following portions: Recruitment and Selection, Training and Development, Compensation and Benefits, Performance Appraisal, Employee Relationships and Personnel Management. At the end of each portion some recommendations and suggestions are given, made according to the level of our subject understanding, knowledge, discussions, social interactions and hard work. These are not made for the sake of criticism but for the real sake of improvement and innovation. According to the core demand of the project, we have developed a full fledge Human Resource Department to be established in the company, a new organogram and at last some logical suggestions and discussion are given for its defense and justification. We may hope that the reader will be interested at the beginning and inspired at the end.

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Table of Contents
Introduction ................................................................................................................................ 1 Organizational Objectives .......................................................................................................... 1 Vision ..................................................................................................................................... 1 Mission................................................................................................................................... 1 Products...................................................................................................................................... 2 Workflow ................................................................................................................................... 4 Organogram ............................................................................................................................... 6 H.R. Department ........................................................................................................................ 8 Recruitment and selection .......................................................................................................... 9 Conclusion ............................................................................................................................. 9 Suggestions / Recommendations: ........................................................................................ 11 Training and Development ...................................................................................................... 12 Suggestions / Recommendations: ........................................................................................ 13 Performance Appraisal............................................................................................................. 14 Suggestions / Recommendation ........................................................................................... 14 Compensation and Benefits ..................................................................................................... 14 Suggestions / Recommendations ......................................................................................... 15 Employee relationship ............................................................................................................. 15 Suggestion/Recommendation .............................................................................................. 17 Personnel Management ............................................................................................................ 19 Recommendations / Suggestions ......................................................................................... 19 Human Resource Department .................................................................................................. 20 Functions of HR department ................................................................................................ 21 Conclusion ............................................................................................................................... 23

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Introduction
The present setup was established in 1998. Originally, the root of the business goes to 1992 when Mr. Afzal Awan setup a small business worked as manufacturing outsources. In 1998 the current business was established when Mr. Akhlaq Khan joined as partner in the firm. Than the proper export business was established earlier, the core business was to work for other export firms as outsource. Now the firm is making hosiery made garment for different firms present in United Kingdom, United States, Spain, Germany and Italy. The names and contact information of these firm is not used in firm following the secrecy of the Firm; this is due to the basic business competition present in the export sector and the location of Faisalabad. In addition, the prices of products are hidden so this information is only for class presentation. Now the firm is capable of producing the all types of hosiery made garment.

Organizational Objectives
Vision
We are enthusiastic and concerned for our customers. Optimal satisfaction we pursue mutual growth. Growth in a professional manner. Our employees work under a strong impression that they are running their own corporation.

Mission
Increase the efforts level to 40% relative to previous year. Vanish customers complaints by gradual decrease. Fully satisfy the customers. To improve the quality & system in accordance to ISO 1901-2000. Provide best environment to workers.

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Products
All the products are hosiery made garments. We mention names of some of the main products. In Casual wear PC Jugging Suite, Pique 100% cotton shirt, Telsin Jugging Suite, Microfiber Jugging Suite, Fleece Jugging Suite In Ladies Fashion wear Ladies polo shirt 100% cotton, Ladies Rugby shirt 100% cotton, Rugby shirt 90% cotton 10% Easter, Ladies T-shirt 100% cotton, Ladies Trouser, Ladies Jacket, Ladies Short, Ladies Skirt. In Men Fashion wear Polo shirt, T-shirt, Sweet shirt, Jugging Suite Fleece Brushed, Man Jacket in French Terry, Track Suit Micro Fabric Peach Finish. In Work wear Apron, Dogrib In Sports School wear England short, New Zealand short, Junior Rugby shirt 100% polyester, P-E short, jogging suit Fleece Brushed, Track Suit In Sports wear Rugby Jersey 100% Polyester, Rugby Jersey 100% Cotton, Rugby Jersey 100% Acrylic, Soccer Suit, Golf Polo Shirt, Ploir Training Bib, Net balls bibs, Net balls reversible bibs, Shadow strip short 100% polyester,

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Page 3

Workflow
The process of development of product in the factory

Finished Cloth Storage Cutting Designing Stitching Threading Printing Pressing Packing

Dispatching
After each step, the inspection is done when garments are moved to next department to separate the defective garments from further working to minimize the cost.

This is the product cycle of Sadaqat Corporation. There may be slight variation in this cycle depending upon the situation and specific requirements of the goods order.

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The procedure is briefly explained below: At first stage, the finished cloth is purchased and stored in the inventory. Purchases decisions are made keeping in view the future expectations and running orders. The purchase is made for a risk of 15 days in case the raw material is unavailable due to strike or any other reason. Raw material is purchased keeping in view the past record of orders and purchases made to fulfill those orders. Company receives the order and forwards to the concerned departments to get the procedure started. Inventory department forwards the required cloth for order to the cutting department. Designs are forwarded to cutting and stitching department by the sample department. After cutting the cloth, it is forwarded to stitching department. The cutting and stitching is done with 99% accuracy. After stitching is done designing department make different designs on the pieces of cloth according to order requirement. After designing the tailoring department brings these pieces of stitched cloth into the shape of a garment. The involvement of specialized tailors depends upon the complexity of the design. Then the finishing department removes errors and extra threads for every piece of garments to assure quality and minimize the number of errors that could be complained afterwards. Designing, threading, stitching, cutting, printing and most of the operations are mechanical but manual because the just a few of these procedures are automatic. Designing and printing is done according to the requirements on these finished garments. Then the finished garments are forwarded to ironing or pressing department where they are pressed both manually and with automatic steam-press plants according to the sensitivity of the cloth and the design. These garments are then packed categorically in packing department.

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Organogram
Assistant

Export
Assistant Inventory
Assistant Inventory Loader Master Designer

Sample

Assistant Master Tailor Pattern Master Shaper

Cutting
Handler Auditor Machine Incharge

General Manager

Production
Designing

Helper Line Incharge

Stitiching

Tailors Checkers Assistant Packing Printing

Packing Assistant Manager Cashier

Press and Wash Checkers Packers

Accountant I.T/ISO

This is chart made by us, but there was organizational chart visible in the factory, which was as

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Company interacts and communicates with its customers through telephone and internet. Export manager communicates directly with the customers but decision-making remains totally with the managing partners. Pricing, mode of payment, time and place of delivery are the main issues in negotiations among the company and its customers. Company responds to its customers keeping in view its production cost and capacity, its human resource, energy recourses and other requirements of the demanded order. After getting the financial matters solved and procedure of payment finalized, inventory manager is ordered to purchase the raw material, to get the work started. Raw material according to the requirement of that particular order is then forwarded to the cutting department. General Manager looks after the production procedure until the end when packed garments are handed over to dispatch department for shipment. Involvement of both the managing partners, in all major and minor issues can be taken as their intervention of interference in the chain of order and command. Before the completion of production, the export department gets all the legal issues solved and the export and bank documents ready.

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Accounts department in Sadaqat Corporation and many other organizations like it are also playing the role finance department in the complete absence of finance department. Accounts department keeps the record of every penny spent in any department on any sort of business activity. All financial activities e.g. payment of bills, advance payment of salaries to the employees and other expenses are made by the decision of anyone of the managing partners. Accounts department always depends upon the presence of anyone of the managing partners because no financial activity can happen without their approval. I.T. department is responsible for keeping in record all the operational activities, financial activities and dealings with the customers of the company. Other jobs of the I.T. department include keeping the record of attendance of the employees through attendance software, computerization of the hand-written data, and record of all the financial transactions including payment of salaries to the employees on individual and collective level. Internet of the company is also run and controlled by this department.

H.R. Department
The development and maintenance of a separate and independent human resource department has become necessary for the company to introduce modern HR practices in the company and to have a systematic and proper HR channel rather than a conventional and unsystematic approach. However, if the interference level remains same then even the best HR department is useless. The interference of managing partners at any time and at any stage and in any department has reduced the level of motivation, efficiency and productivity of every employee. Even the level of job satisfaction is also unappreciable. If this interference is stopped and each and every person in the organization follow the chain of command and the chain of order, the level of employee satisfaction and motivation will become higher and will lead to a healthy increase in their level of productivity. The number of employees is likely to increase in near future and afterwards as the company has longer plans of growth and development so to perform the HR activities individually and conventionally will become very difficult rather impossible for both of the managing collaborates. Currently, no modern HR activities are being performed in the company and even no one knows about them.

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Recruitment and selection

Majority of employees comprise of labor, which is selected and hired on reference basis. The already working labor introduces new people in the organization. These people are then finally selected by higher administration. There are two types of labor i.e. I. II. Skilled Labor Unskilled Labor

Skilled labor is selected based on previous experience and expertise in their skill. There are different machines that are run by expert mechanical workers therefore they are required to have proper information, knowledge and experience in using that particular machine. This labor is brought from different other organization as well, on better compensation and benefit according to their production capacity and with lesser possibility of errors. The skilled labor has to perform a demo or are requires to give a sample of their work practically at the spot. An experienced skilled labor is preferred upon an inexperienced labor or even on a labor with lesser experience as compared with the better. Interviews Questions are asked at the spot about the use of technicalities of the machine and art. The master to check the knowledge and expertise of the labor about his job conducts their informal interview session. Unskilled labor e.g. bellhops, loaders and security guards etc are hired through the same source i.e. internal reference (of permanent employees and owners). However, no selection criteria or qualification requirement are desired nor considered important. They are just hired based on physical appropriateness and ability to perform their job.

Conclusion
Although it is a small industrial unit invention of owner is clearly dominantly visible in selection and recruitment of employees. The ball of decision-making remains in the owners court. Therefore, anyone or both of the owners depending upon their availability finalize selection and recruitment of labor.

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Question How the vacant seat is filled and how the labor deficiency is identified and then covered? Answer Hiring and firing of labor is a continuous process that goes on through the year. On average 1-2, labors are hired or fired a month. The labor deficiency does not become a massive burden for organization, as it is not a problem for the company to find a particularly skilled labor in a fertile employee network like Faisalabad. In case if sudden increase occurs in orders, new machinery can be bought and outsourcing can be done but if it is not a companys preference to increase their orders up to such an extent that they have to go for immediate purchase of expensive machinery and hiring of unreliable and sometimes inexperienced outsourced labor. So vacant seats are filled in an unsystematic way that can be known as conventional method of hiring and employee selection that is being practiced since the first day. Labor leaves the organization or they are being fired individually and not in groups. Therefore, procedures are not stopped by the deficiency of a single labor in a department consisting of 20-50 labors. Nothing stops by the deficiency of a single labor. Office bearers Before the first ever advertisement placed on web by the company the past month, same procedure of selection and recruitment for qualified or we may say white color employees was there. They were rather picked from the market openly by the owners. Their qualifications were less preferred than their ability to perform their job, which was being judged by the owners. No selection test or interview was there. References are considered reliable and are honored while hiring someone at any seat. Sometimes the employees are being given job by the managing partners in an informal gathering or meeting, if they feel requirement of the new seat or are previously existing seat vacant. In the history of the organization very, first an ad is being placed on web for the requirement of training managers on four seats. This is due to the company future vision of being ISO9001 certified and international market demand.

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Question Why ads were not being placed before and no other better selection procedure was practiced? Answer Till now Pakistani labor have not reached such level of literacy or social awareness or internet that they read newspapers. They have no personal interest in reading and no financial resources to purchase a newspaper. Another thing is that up until now this conventional method of recruitment was successful due to availability of every sort of highly or low paid, qualified or non-qualified, skilled or unskilled employee easily in a highly suitable and competitive market of Faisalabad. So why should company waste its financial asset on an activity like advertisement (or nay platform i.e. TV, Radio, Newspapers, internet, wall posters etc). Which they consider unfruitful and unnecessary.

Suggestions / Recommendations:
The procedure for selection of a skilled or unskilled labor is fine as experience, skill, physical and technical capability, and personal referencing is of more value and importance than educational qualification that has nothing to do with his job description. The turnout at middle and lower management level is nearly zero that has restricted the energetic and innovative minds to enter the organization and outclass its timed-out trends and practices. Qualified designers, tailoring masters and freshly trained professionals can bring several innovative and profitable changes in the designs, quality, and procedures of the company and enhance the velocity of organizational growth in any means and terms. Adz must be placed on different job-portals and newspapers to bring more and more competitive people in the management. Recruitment and selection should be via made an independent HR department without any pressure and corruption. A neat and clean recruitment procedure brings the real talent in an organization. Selection tests should be conduct according to the appropriateness and requirement of the job. In this way, a barrier would be placed for the unfit people.

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Training and Development

As already discussed earlier that already trained and experienced labor are selected and hired. The qualification criteria of employees is their previous training that is a part of their experience. On job, training at Sadaqat Corporation is a part of their daily job. No special training classes, training seminars, workshops or programs are conducted. In simple words in a local corporate firm at Faisalabad, the industrial capital of Pakistan, organization just want higher level of production in means of number of units etc. they have no other interests and their labor development and growth. At the other end, labor is such tightly captured by its financial crisis giant that this mind can also not go out of increasing compensation against his work. Therefore, he always goes for increasing his no. of products and production capacity rather than thinking of learning more until his further learning and training becomes compulsory for his future growth in terms of financial means. Therefore, in this case, such labor is promoted and is given slightly heavier consignments or some more technically tougher job. This is considered his promotion by him and his organization that is actually only in financial means. Based on experience and expertise a labor is promoted to line incharge and then to master but it is possible only for a very few hardworking and loyal labors. Another way is that at a particular level of seniority, high levels of productivity and expertise an employee is made permanent, and this is considered a way company considered a way company worker for his growth and development. As for as office workers and office bearers are concerned we have already come to know that, it is not an organization with a long chain of employees. There are two or three layers in its organogram. Chances of promotion of juniors are attached with the replacement of his senior or the promotion of his senior as well. A firm with a big majority of technically skilled labor and a very small management group cannot have inside company growth for its employees. another thing is that, growth does not mean promotion and increase in compensation and benefit but it is also in terms of the assets of the company is giving to its employees in terms of experience and exposure as the company has a fairly good reputation among exporters of the industry. Export industries have to be modern and diversified intentionally or unintentionally because international market is much more advanced than our local or national market in terms of communication, modes of payment, means of transportation and

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shipment delivery and payment recovery, code of business conduct, or business ethics and much more importantly in terms of quality because quality production and its maintenance is compulsory to introduce yourself in the global market, capture orders, fulfill them and to retain their customers. Because in this type of business customer relation is very important than in FMCG market because every common person is not a customer to the company. Large-scale retailers or whole sellers are also not among the major customers of the company. Rather, different European and American brands place large orders or regular annual basis and are source of revenue for the company provides more exposure and vast working spectrum to employees as compared to the local hosieries and small level garment industries. However, as the company is growing and getting diversification large growth prospects are likely to be opened in a way that the best performers will be given more important and highly paid roles in those new departments. This is not sure for all but very few performers and an attracting probability for all other loyal and hardworking employees. Therefore, this is the training and development given to its employees by the company.

Suggestions / Recommendations:
Proper training and development is simply impossible without an independent HR department. On-job training is a part of every sort of job an employee gets in any case but special training lectures and workshops have become very important now a days. Through these, an employee can be made able to give the best out of him. Motivational programs e.g. family events on annual or 6 months basis can be designed and executed for all employees. These could be Eid Milan parties, birthday parties of the managing partners, Iftar parties etc. these activities create motivation and loyalty inside the employees hearts and minds. Special training should be given to employees especially labor to cope up with emergencies. These include fire-fighting, first aid etc. A service certificate should be given at the time an employee leaves the organization. This will be helpful for him in future. On-job training should be checked and balanced to remove jealousy and biasness among juniors by the seniors and vice versa. Hard workers should be promoted rather than backbiters.

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Performance Appraisal
Performance Appraisal would be a new concept for the management in case HR department is established. Senior employees fear of their removal from their jobs in case a junior is promoted due their performance appraisal even though it is just not more than a verbal appreciation. Organizational politics is present at every level in the organization. Therefore, the performers remain discouraged and work-shirkers get full advantage out of this scenario. Low performance steps forward to low productivity moving further to low profits for the organization. Low performers are not being punished and high performers are not being rewarded in absence of performance appraisal. Complaints are investigated inaccurately and inefficiently and mostly all of the departments equally bear the burden of one's negligence. Reasons of negligence are not found, nor are they eradicated.

Suggestions / Recommendation
Performance appraisal is needed to mark a clear line of difference between the black and the white sheep and their rewards and punishments. Company cannot prosper until these black sheep are identified and punished. A proper evaluation system is need thus.

Compensation and Benefits

Senior Manager / General Manager Like all other employees, GM was also selected through a personal reference by the owners. Although he is loyal to the organization as he remained in thick and thin with the organization. His salary consists of Rs.25000/- and a 1000cc car with limited gasoline expense. Manager Salary includes Rs.20000/- and 70cc motorbike with limited gasoline expense. Department Heads (Packing, designing, stitching, sample room master) Salary ranges from 17000-20000 with no over-time incentives.

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Senior Workers (Permanent) Salary ranges from 12000-15000. Seniority means an inside experience of more than 10 years. Assistants Qualification: minimum B.A. and computer literacy Salary: 6000-7000 Daily Wages These are non-permanent employees paid based on their total productivity calculated through total number of products made by them. Salary ranges from 6000-18000 depending upon their skill, efficiency and experience.

Suggestions / Recommendations
Salaries of labor class are lower as compared to the competitors in the industry. They must be raised to prevail fairness and justice on human grounds. Brilliant and highly qualified professionals should be welcomed in the organization through a modern human resources recruitment and selection procedure. Vacancies should be advertised in future for office posts. Attitude towards employees of all sorts should be handsome and fair. Aggression and biasness towards them lead to lack of motivation and productivity.

Employee relationship
This relationship is usually at three levels. 1. With owners 2. With senior managers 3. With junior or subordinate

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Owners There are two business partners. One named as Mr. Awan and other Mr. Khan. Both are opposite in nature from each other. Before we proceed, it is important that we dissect their attitude. Mr. Khan is bachelor degree holder and Mr. Khan is illiterate. Mr. Khan usually sits in office and seen as educated person. He does not regularly intervene in ongoing management matters. He mainly deals with customers and sometimes has to deal with employees with necessity. He does not visit production department and management offices regularly unless it is urgent. He keeps distance from employees and has personal interaction with few employees. On the other side, Mr. Khan is entirely different person in nature. He does not adhere to sit in office. After arrival in office, he uses to visit production department and offices. According to his own will, he compels labor to work. If he does not visit employees, they sit free and do not work. He also interferes in issues like purchase of sugar for tea. He has personal interaction with many employees (approximately more than 50 employees). This makes the relationship setting-off employees with owners. Most of the organization workers perceive that organization is running due to Mr. Khans knowledge and negotiation skills with customers. Even though he has very little interaction with employees. Employees feel reluctance in order to encounter Mr. Khan. Mr. Khan thinks that employees are working efficiently therefore, there is no need to visit them. That is why employees give regard to Mr. Khan. In case of Mr. Awan, the situation is entirely different. He has too much interaction with employees that is why employees start ignoring his instruction. Employees say to each other, it is part of routine; therefore we do not need to bother about it. The trust factor is badly affected y this attitude. Employees do not trust on Awan. He has one or two employees in each department who regularly report him about work and senior manager. This annoys other employees. This investigation is must to ensure that you control thing efficiently, but when one disclose the secret person name it makes employees dissatisfied. Although the department heads or managers are his in-group, but due to this factor they are going away from him. They try to head off Mr. Awan; Because Mr. Awan has lost trust of employees. This creates problem in the organization. Moreover, Mr. Khan accepts that information without any confirmation.

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Senior Managers As employees can approach to CEO of the organization so according to junior employees senior management importance is deteriorated because of direct interaction with CEO. They also perceive that senior management is idle, only Mr. Khan is the man who is controlling and managing things efficiently. That is why junior employees do not give much importance to senior management. This also reduces managers fear factor and trust upon subordinates. Because he knows if I said something to that employee who is near to owners. Even those employees are non-productive. Managers are unable to replace them because of their relationship with owners. That has badly affected the productivity, loyalty and job satisfaction of an employee. Therefore, an isolated layer has created between managers and their subordinates. They consider each other as foe. Both parties should comprehend that they have to work for organization. If they do not stop this sort of activity then they might lose their job if any of the owners take notice of it. These sorts of things are prevailing in the labor side because they are illiterate. On the other hand, these things are happening in office because of jealousy and closeness of employees with management. Promotion chances are also one of the root causes of this issue. A skill worker thinks if he gives an opportunity to someone to learn the things, he might lose his position in the organization. This fear also prevents skill workers to impart their skills to others. This factor can be overcome by the owners if they ensure senior managers that these subordinates would not take your seat. Subordinates There are some bad things happening in the organization. However, some employees are very good and productive for organization. Senior managers train very few employees. However, these employees are hardworking and loyal. They follow orders of senior managers seriously and give regard to them.

Suggestion/Recommendation
It should be make sure that each one is working for mutual benefit. It is not a one-way traffic. Change in attitude is required at three levels. It is hurdle in making this corporation into a giant one.

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Owners Recommending something to owner is a very difficult task. Owners need to keep one thing in their mind that their employees are their strength. They can accomplish whatever they want by using human resource efficiently. They should understand that employees welfare is actually their own welfare. If they sort out employees problems, they will work for the organizations benefit. Interference of Mr. Awan should be reduced. He should not suggest everything to employees. He should just look after the things. They should follow the hierarchy and do not break the chain of command. Give employees work friendly environment. Still if some employees do not work then they must be terminated. Furthermore, they should train employees by the means of management workshop. Give fair compensation and other facilities to employees to achieve their objectives. Moreover, they should develop high level of trust in senior managers. If senior managers are not productive or they keep involve in organization politics or they do not work, then they should be replaced. However, try to avoid from breaking the chain of commands. Senior Manager If owners change their attitude, its effect will go up to departments. Senior managers are first in chain and good sound relationship is required so that they impart their higher decision to lower level. The managers should train employees who are ready to take responsibility. It will be helpful from two aspects. Firstly, if they train juniors they will consider that seniors own them. Secondly, they can distribute tough work to juniors as well. This will make good working environment and enhance efficiency. Fresh graduate from good business schools like International Islamic University, Islamabad should encourage to join the organization. Subordinates Subordinates of different department have quite different requirement. In offices, the subordinates may like that their senior acknowledge their work and skills. In the production department, their subordinates are more concerned or motivated towards salary. They do not want acknowledgement as well as managers require but they hate humiliation.

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If anyone humiliates labor this can create negative thinking in the minds of employees. This negativity can flourish from one to other and employees job satisfaction reduces greatly. Psychology of labor is that owners get benefit by sucking up our blood. It is necessary to ensure them me both are getting benefit mutually. Workshops can be arranged to change their attitudes about organization and motivate them to enhance their productivity.

Personnel Management
Personnel management activities are being performed by I.T. department at present, as establishment of a separate personnel department is considered a vague procedure and a source of wastage of funds. No proper attention is being paid towards keeping the personal and performance record of employees; no performance reports are being made. Attitude of the management towards employees always remain biased and unjustifiable. In case of an accident, an immediate decision is taken for an employee without going in depth of the problem. Working hours are not fixed and they depend upon the nature of the job of the employee. Personnel development has never been focused and they are not even trained to cope up with any sort of accident. Employee dissatisfaction leads towards negative productivity. At present when inflation is at a rise of 20-40% on annual basis an annual increase of 10-15% in the salaries is very unfair. According to the company policy, annual increase percentage is set according to the budgetary increase. Advance payment of 1-month salary is made in case the employee presents an urgent reason for its demand. This advance payment is adjusted afterwards in installments.

Recommendations / Suggestions
A complete personnel department equipped with up to the mark human and technical resource is required. Training sessions should be organized and complete training of handling any sort of situation should be given to every employee of the organization. A majority of uneducated persons is serving the organization and they need training. Some more relaxation in financial policies should be brought to facilitate the employees and enhance their loyalty. Employees should be educated both literally and technically.

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Labor should be trained how to cope with their financial problems and how to lead a balanced life in this world or crisis.

Human Resource Department

The core purpose of our project is to recommend a proper and independent HR department for the company. Keeping in view the organizational division of departments and their work force strength and the losses organization is facing in terms of under-development, lack of training, lack of motivation and loyalty among the employees and considering each and every aspect and result of its establishment a small-sized department is suggested. The departmental hierarchy will be as given below:

HR Manager

Assistant

Assistant

The cost of this qualified serving staff this organization has to bear will be Rs.50000/- per month approximately. Our goal is to show a positive cost-benefit analysis of this department to the managing partners and upper management of the company. Before we come to the departmental functionalities of this new HR department in the organization, we would like to take the bold step of bringing the management of Sadaqat Corporation to the point accepting with open heart and organizational faith and harmony an independent and transparent HR department with full approach and authority. Personal influence and pressure of the two managing partners and their beloved and privileged higher management and senior employees should not interfere with the departmental procedures of the HR department. The hiring and firing, benefits and compensation and other functions should be on merit and according to the standards set by the HR department. If this interruption and interference,

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direct or indirect, remains in practice as it is in other departments then there is no single benefit of establishing another department whose cost is an addition to the firms day-to-day increasing budget. The senior management should rather inject the advantages and benefits of the just and fair procedures and practices, and there necessity and importance to the last employee in the organizational chain of command and authority. The mentality needs to be changed from the very grass root level because we think it is compulsory to prevail interdepartmental harmony and coordination. Otherwise, a prejudiced environment will be created and HR department will become a point of hatred and criticism for every employee working in different departments of the organization. It is the duty of administration to develop a positive and brotherly approach and attitude in the minds and behavior of all the employees towards the newly introduced and established HR department.

Functions of HR department
Recruitment & Selection

The basic purpose of HR department in any organization is the recruitment and selection of employees. The department should follow the company policy while recruiting and selecting a new employee. Advertisement using proper and required platforms should be done by the HR department, as the company wants them to hire new employees in a particular department. The merit of qualification and eligibility should be set in coordination with the experts from that particular field or department and the owners of the firm. Then a systemic chain of selection procedure should be followed i.e. selection test, interviewing, tracking and verification of the information provided by the employee regarding any personal background and experience. The selection procedure must involve the experts from that particular field or department to ensure the authenticity and experience the reality of the facts. The successful candidates should be referred to the managing partners for induction. Recommended candidates should be preferred but not privileged and merit should never be sacrificed particularly in this regard. Job description and job analyses should be done gradually and in case the company opens new ventures, the induction should be based on job specifications in written form from the very first day. Training & Development

Another important job of the organization is to train and develop its employees. HR department plays key role in this procedure. HR department designs the training strategies for employees according to their nature of job and perform these training activities through and with the involvement of respective departments, both. As we have mentioned above the modes through which employees could and should be trained and developed in this organization, the presence of an Independent HR department with qualified staff is necessary. If the employees are sure that the HR department of their firm is working for their development, they will accept and own it for their benefit. HR department can play role in
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employee development by taking and approving special grants for them in their urgent needs, providing them with guidance and counseling at any time regarding their personal and professional problems and by ensuring good care of their physical and mental health. Performance Appraisal

Performance appraisal of every employee should be made on monthly, three-months, sixmonths or annual basis. Awards and rewards should be based upon performance appraisal and not upon someones personal will and choice. The reporting should be fair and unbiased. HR department should ensure the fairness by involving itself in depth of the procedure. Then the employees performing not up to the mark should be punished in a sophisticated manner in which the organization did not lose their loyalty and motivation and the employees performing below the level of standard the firm needs out of them, should be fired in way there moral values are not hurt. Compensation & Benefits

The job of HR department in this regard is to develop compatible and comparable benefit and compensation packages for its organizations employees. The compensation and benefits currently the company is offering to its employees is a bit lesser than its employees are and it needs improvement. Bonus and performance based incentives should be introduced and appreciation should be in financial terms too. Employee Relations

In the presence of HR department, the employee relationships should prosper in positive and not in negative sense. The relationships between seniors and juniors in the organization should be brotherly and compromising. The purpose of HR department is to bring the organization and its employees closer to each other and to minimize the information gap between them. The company can prosper much speedily if the information gap is reduced between labor, the managerial staff, managers, and the owners. However, employee relationships should flourish according to the chain of authority and command and indiscipline in this regard can promote jealousy, biasness and corruption. There should be a mother-child relationship between the organization and its employees. Positive attitudes, healthy working behaviors should be promoted. Personnel Management

Personnel management is the job of HR department but is being performed by I.T. department in Sadaqat Corporation. To keep the personal and performance records of its employees and to treat according them accordingly is the fair procedure of managing personnel. Facilitating their financial and professional needs includes its functions.

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Conclusion
In the light of our limited knowledge and effort, we strongly recommend the establishment of Human Resource department to Sadaqat Corporation Pvt. Ltd. according to our suggestions and recommendations. Further logical reasoning can be done in this regard according to the demand and situation.

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