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Hierarchy HR Department Human Resource Management Commerce Essay

Paper Type: Free Essay Subject: Commerce
Wordcount: 3038 words Published: 1st Jan 2015

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Human capital is the rarest resource of the company which cannot be imitated while every other resource or asset of the organization can be copied by the rivals due to the changing environment and emergence of technology.

HR Is basically a support function which helps the other imperative functions in achieving their vision which cannot be achieved without the support of HR. It’s a cost minimization and value creating source.

HR successfully linked the lower management with the top management for the purpose of achieving goals and objectives.

There is not a formula or certain procedure in human resource management, it varies from person to person and managers perceived it differently as everyone has his/her own strategies.

In this report we have covered almost each and every aspect of human resource management.

HR process starts with hiring of the effective employees and ends with the performance evaluation of the human resources.

Goals of HR Department in UMA

To recruit the most effective pool of candidates

Motivate the employees so that performance of each employee can be strengthened

Prevent and reduce the turnover rate. This is the most imperative job of HR because it helps the firm in achieving its goals

Give rewards and benefits to the deserving candidates. Deserving candidates are identified by analyzing the performance appraisal.

To give priority to the internal labor supply over the external one so that the motivation level and performance of workers could be enhanced

Resolve the conflicts among the employees so that an impressive working environment could be developed.

Develop HR related policies and code of conduct.


There is not a fixed time period for hiring. Company hires the workers according to the need of the time the first and the most imperative step in the hiring process is recruitment. Recruitment is basically the process of generating effective pool of employees. The most famous and renown tool for recruitment is newspaper and internet in united marine agency. The firm believes that with the help of newspaper and internet you can generate a huge pool of candidates in a very limited time. Besides this there is another advantage of recruiting the candidates through newspaper and i.e. “Image of the organization ” , as we all know that an immense ad in the newspaper can strongly influence the image of the company.

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Employee referral is also a tool used by the firm for the purpose of generating impressive pool of candidates. Employee referral is considered as the most trustworthy, reliable and effective tool because the employee are very much conscious in referring the candidates as this is the matter of their credibility as well as a result the most preferred and effective candidates are referred by the employees .

Employee referral is not always positive. There are some negative aspects of employee referral as well because sometimes managers has to neglect or ignore the mistakes of certain employees just because of there sound reference .

Internal Vs. External Labor Supply

The firm believes that internal labor supply must be given preference over external labor supply. Consequently when an executive position is vacant, top management attempts to fill that vacancy by promoting a deserving employee. This helps the firm is following ways

Reduce cost of hiring

Hiring is the process of human resource management which involves a lot of cost and requires a massive time for the purpose of producing effectual pool of applicants but internal labor supply is that efficient tool which can certainly reduce the cost of hiring process for united marine agency, because via promoting and enriching the job responsibility of an productive employee you can reduce huge cost of the organization for sure.

Internal employee is aware of the organization culture

An internal employee is usually aware of the organization culture therefore he does not take much time in adjusting with the work environment

Productivity increases

When an internal deserving employee is promoted to an executive position, motivational level increases thus performance of the employee enhances which results in effective organization productivity.

Emergency hiring

In case of emergency hiring, the firm does not rely on the normal procedures of recruitment but they try to go for the speediest process and usually the process is decided by analyzing the situation intensely and implementing a process according to the situation.


Selecting the Candidates

Process of selection varies job to job. Some job requires a test. Test is provided to the candidates who have been shortlisted through recruitment and the individuals who are able to clear the test are requested to appear in the interview.

In majority of the cases, employee referral is used for the purpose of hiring personnel for executive position in UMA. And there are many reasons behind this. Generally an employee is aware of the kind of the individual required for a particular position because he knows the responsibilities of the vacant position and is pretty much aware of the nature of the job therefore he refer an individual who can efficiently perform the job activities and help the organization in achieving its goals and objectives.

As Mr. Zeeshan stated that recently a sales manager was hired in UMA on the reference of general manager. The compensation package of that individual is very impressive and well-off according to MR Zeeshan but the general manager is very much satisfied with the compensation package of sales manager because according to him he has the ability of generating sales vigorously.


Candidate is selected by following certain steps which include the test at the initial stage which is design to reduce the vigorous pool of candidates, later an interview is conducted by the HR manager once short listed by the HR manager, the candidates are asked to appear in the final interview conducted by the HOD of the particular department to get the dedicated employees.


UMA follows the following criteria in order to select effective employee for the firm




Soft skills



Every company either SME or large corporations has a vigorous believe that human capital can build a strong position of company if efficiently and effectively utilized. UMA also strive in achieve the same goal. UMA strongly believe that training and development plays an important role in increasing revenues of the company either through cost reduction or increase in sales.

Trainings in UMA are done on almost every level whether a telephone operation or a brand manager of a company, all are indulge in training. As per Mr. Zeeshan employees gets motivated when such sort of activities is done in the organization.

Some training is the routine trainings which have to be given to each and every employee after certain time period. such as fire fighting, emergency exits drill and on the job trainings which is given to the new induction by the immediate boss only in the case if there is any technical work in the job description of the employee, Whereas other trainings are done as per the requirement of the job.



The frequently used training method is on the job training in UMA. Usually lead by the senior very next to the person who needs the training. Moreover other consulting companies are also outsources by the company in order to accumulate new skill in the employees.

As per Mr. Zeeshan recently UMA has organized a 15 days training session for the sales support staff and telephone operator so that the company can build good relation with the customers and can provide the exact solutions of their queries.


Off the job training is rarely done by the company and is only provided to the executive class. These trainings include seminars and workshop which is conducted abroad mostly in Singapore and Dubai.

Performance appraisal

UMA does the employee’s performance appraisal on as annual bases. Performance appraisal is done by using multi methods in order to get accurate information for the employee and its achievements.

UMA uses two performance appraisal methods at the same time, MBO and graphic rating scale. In every December before the increment of the employees performance appraisal form is distributed to the HOD’s of every department with the due date, and then it become the responsibility of HOD to evaluate the employee.

Following are the questions that are included in the appraisal form of the employee

List your achievements or tasks you have done or/and currently doing well.

What are the facilitating and constraining factors in performing your work?

Achievements of Previous Agree Targets

any training required


1 Unsatisfactory 2 Acceptable 3 Good 4 Excellent





Quality of Work


To meet targets and deadlines









Communication Skill


Interpersonal Skill


Willingness to learn


Cost conscious


Development of subordinator


every year increments is given on the bases of performance of the employees and is not influenced by personal liking or disliking

If employee performance is not up to the mark they are considered for the training and development program in order to make them more effective in achieving the task assigned to them. Training is also given if the employee thinks they need it for the better understanding and execution of the task.

Drawback of MBO and Rating Scale

The biggest drawback of appraising the performance through MBO is employee stick to the particular objectives provided to them which limits their productivity, performance and creativity to a certain level

Benefit of MBO

The most impressive benefit of MBO is providing the employees with clear and specific objectives as a result employees are aware of the fact that what is required from them therefore employees put their best efforts for the purpose of matching those objectives as efficiently as they can


UMA consider different factors in order to analyze the promotion of the employees. According to them they don’t have any fixed time period to promote an employee. It totally depends on the traits personality and hard working of the employee.

Recognizing the promotion

UMA recognizes the need to promote employee by continuously observing the performance of the employee. The main focus of the company is on the goals and targets achieved by the employees then on the factors and lastly on the time duration.

Even the Deputy Manager is promoted in 8 month of time period because of his achievements and fulfillment of the targets.

Factors considered in promotion

planning and organizing


teamwork and leadership


achieved targets

attitude and behavior of other

According to Mr. Zeeshan once an employee is promoted then they are not promoted until they develop their skills for the upper position. If the employee is about to get promoted and at that time he resigns, then as per the practices of the HR department they either promote the contingent employee or give dual responsibilities to other.


UMA provide great incentives and benefits to their employees. Other than their basic salary following are the incentives provided to the employees are based on their designations.

Fuel Allowance

Fuel allowance is given to the employees on the bases of their designation and work. Fuel allowance varies from 45 liters to 300 liters. As per the policy following is the ratio of giving fuel

Bikes 45 liters

Car (till 1000cc) 150 liters

Car (till 1300cc) 250 liters

Car (till 2400cc) 300 liters

Mobile allowance

Mobile allowance is also provided as per the designation of the employee

Medical Insurance

Every employee is covered with medical insurance which only includes hospitalization. In case of any mishap insurance company will pay all the expenses.

Vehicle and its repair and maintenance

Company provides the vehicle with the repair and maintenance to the employee as an incentives, but with the condition that car must remain clean all the time otherwise it would be taken back. Cars are inspected on daily bases


Two bonuses are given to the employee in the period of one year other than the increment in the salary. One full salary is given on eid-ul-fitr and 70% is given on eid-ul-azha

Retirement benefits

The biggest benefit of retirement policy is that there is no age constraint in retirement an employee can work till the time he is capable of working in the organization.

Gratuity is given to the employee which equal to the one salary for one year of service

EOB pension is given to the employee

Job rotation

As mentioned before, employee is rotated to any other department or job if his/her performance is unsatisfactory.

Most of the time managers also asked to their subordinates that whether they require a job rotation or not. Managers do this in order to enhance the employee motivation, performance and skills.


In UMA, employees are not terminated on the basis of their performance because termination is not the solution of the problem. If the performance of the employee is not up to the mark, management attempt to transfer that individual to another department

Termination is only occurred on the basis following cases

Misconduct Or Misbehavior

Misbehavior or misconduct of any employee is not tolerated in any case, which leads to straight termination

Violation of HR policies or rules

Each and every employee is requested to follow the HR rules and policies and if the employee is not following the rules and regulations, firm decided to terminate that individual

Sexual harassment

Sexual harassment is the case which leads to immediate termination


For the purpose of alerting other employees, deceptive or fake individuals are terminated.


360 degree of method of performance appraisal is ignored

Do not have software for online recruitment

At times, employee referral caused difficulties for the managers

HR department of UMA is almost new. So the parameters of selecting new candidates are completely different as a result the performance of new induction varies from the old one which results in the organizational conflicts.


The HR department is doing an impressive job but there are still some issues which need to be rectified as soon as possible. Following are the recommendations we suggested for the HR department of UMA

360 degree method of performance appraisal must be used. This is the most effective tool for the performance appraisal which is ignored by UMA because the performance of an individual must be evaluated by other colleagues as well

Do not have software for online recruitment which is a hindrance in the hiring process. Software should be used for making the recruitment process more effective.

Sometimes employee referrals cause problems for managers as they have to ignore the mistakes of the particular employee who has a strong reference. This issue can be resolved by providing the managers right to discipline the employee who is not performing well


By analyzing the whole HR process, we analyze that the HR department is doing an impressive job for United Marine Agency because the whole HR department consist of only five individuals who are managing more than 250 employees. Therefore we can state that HR department is doing a really efficient job.

We all know that recruitment via newspaper or internet can generate very large pool of candidates. And we were really amazed by knowing the fact the whole task of recruitment is managed by only 5 individuals in the HR department.

To fill the executive position through employee referral is a wise decision which helps the firm to hire effective individual and save the cost and time related to hiring process.

The most impressive thing is their policy of not terminating any individual on the basis of his/her performance. By doing this, UMA proves that moral values and corporate social responsibility is an integral part of the organization.

The process of job rotation is conducted by considering the opinions of the subordinates that whether they require job rotation or not. This helps the firm in enhancing high organizational performance by increasing the motivation level of employees.

Different sort of incentives are provided to the employees in order to satisfy the workers and reduce the turnover rate

Employee has to pass three interviews sometimes. This is also a good move because caliber of the candidate cannot be judged in a single interview only because organization has to make sure that it has selected the right candidate for the right job

Two methods of performance appraisal are used by the firm which is MBO and rating scale. The purpose of using two methods is just to confirm that the performance is appraised appropriately.


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