Human resource practices in pakistan a case of adamjee insurance company limited

FIAZ AHMAD, CENTER FOR RESEARCH AND DEVELOPMENT MINHAJ UNIVERSITY LAHORE 1

Fiaz Ahmad
Center for Research and Development
Minhaj University Lahore
fiaz.crd@mul.edu.pk

ADAMJEE INSURANCE COMPANY LIMITED (AICL)
INTRODUCTION:
Adamjee Insurance Company Limited (AICL) is one of the largest insurance companies in Pakistan incorporated
as a Public Limited Company on September 28, 1960 and is listed on Pakistan Stock Exchange Limited.
A Truly Dynamic Business Setting.
Adamjee Insurance is broadly involved in underwriting the following Classes of Business:
Fire and Property
Marine, Aviation and Transport
Motor
Health
Miscellaneous Insurance

MISSION & VISION:
Being the leading insurance company of Pakistan and second best in Asia, our aim is to be a significant percipient
in developing Pakistan’s image by providing maximum insurance protection at the most competitive in highly
efficient manner for industrial and economic growth.
Our will is to explore, innovate and differentiate, Our passion is to provide leadership to the insurance industry.

CORE VALUES OF ADAMJEE:
Integrity: Transparency and honesty without compromise.
Humility: Empathy, self esteem and respect in all relationship.
Fun at workplace: Work with balance.
Corporate Social Responsibility: Service to Humanity.

ADAMJEE HR AND CHANGE
MANAGEMENT:
HR department is all about recruiting, training and monitoring employee performance; it has a key role to play in
any change management program.
The HR department has to ensure that employees are motivated to undertake the change and participate in the
change management program. For this to happen, they need to recruit the right people who can think out of the box
and can bring a fresh perspective to the table.

RELATIONSHIP BETWEEN
EMPLOYEES AND MANAGEMENT:
The boss and employee relationship is important to Adamjee Insurance Company’s productivity. A relationship that is
built on trust and understanding can make the employee and manager more efficient.
A poor relationship that lacks cohesiveness will dampen productivity and can lead to high rates of employee turnover.
In Adamjee Insurance Company both the boss and employee commit to the concept of teamwork.

HR ACTIVITIES:
HRM consist of several interrelated functions. These activities are performed in Adamjee insurance.
HR planning, Equal Employment Opportunity, Staffing, HR development, compensation and benefits, Health,
Safety and Security, Employee and Management.

CHALLENGES TO HR:
Adamjee Insurance faces their share of challenges and issues. With the constant internal and external pressures, HR
of AICL need to constantly respond to such changes and need to build suitable model and strategies to cope up for
effective management.
Technology
Workforce
Market Conditions
These are the main challenges to not only Adamjee but in entire Insurance industry.

ETHICAL GUIDELINES TO AICL:
Conflict of Interest
Protection and proper use of company asset
Fair dealing
Confidentiality
Compliance with Laws, Rules and Regulations
These are the Ethical guidelines in Adamjee Insurance Company.

CORE COMPETENCIES OF AICL:
Core competencies of Adamjee Insurance Company are:
Under Mian Mansha (synergies within businesses)
New Workforce (with double productivity)
Only Insurance Company Dealing with crop insurance
Low Cost Referral Sales Teams.
Changes in external environment
Increase in cars / increase in trade

HR DEMAND & SUPPLY
FORCASTING:
Demand Forecasting Method:
Executive Judgment.
Statistical Techniques.
Supply Forecasting Method:
Head count.
Inventory of skills, experience, values and capabilities.
Inventory of past performance and future potentialities.

MANAGING HR SURPLUS OR
SHORTAGE:
Adamjee Insurance Company mostly use two ways to reduce surplus:
Freeze Recruitment/Hiring
Early Retirement
AICL use two way of overcome HR Shortage:
Recruiting new employees.
Reanalyzing job process and redesign process.

CUSTOMER SERVICE AND HR
A customer service mentality in HR requires all HR staff members to deal with employees of the company as
internal customers and to see the mission of the HR department as a customer service mission.
The HR department can also play a role in improving service toward external customers. HR is often responsible
for conducting training and incentive programs. It can share that skill with employees by holding customer service
training sessions with incentive programs to reward employees who excel at making customers happy.

MOTIVATION LINKED TO
PERFORMANCE:
Motivated employees are the need of any organization for our changing work place. Motivated employees are
more productive so they always help organization to survive in every field.
Adamjee Insurance Company provide performance based rewards, respect, better salary packages and better
organization culture to motivate its employees.

ABSENTEEISM CAUSES:
There are some causes of absenteeism in AICL:
Lack of interest.
Low morale.
Childcare or eldercare.
Disengagement.
Illness, Injuries.

STEP TAKEN TO REDUCE
ABSENTEEISM:
Attendance Policy.
Good attendance reward system.
Provide employee support.

RETENTION:
How Adamjee retain its Employees:
Offer a competitive benefits that fits your employees’ needs.
Provides some small perks.
Use contests and incentives to help keep workers motivated and feeling rewarded.
Foster employee development.
Create open communication between employees and management.
Offer financial rewards.

EEO LAWS IN AICL:
The laws related to EEO in Constitution of 1973:
Freedom of Association: Article 17 provides fundamental right to exercise the freedom of association and the right to
form unions.
Equality: The article 25 of the Constitution provides following guidelines for the equality of citizens:
All citizens are equal before law and are entitled to equal protection of law.
There shall be no discrimination on the basis of sex alone.
Nothing in this Article shall prevent the State from making any special provision for the protection of women and
children.

EEO LAWS IN AICL:
Discrimination: Article 26 says no person otherwise qualified can be discriminated against in the matter of
employment on the basis of race, religion, caste, sex, residence or place of birth (Exceptions: specific services can
be reserved for members of either sex if such posts/services require duties which cannot be adequately performed
by the members of other sex, e.g. Lady Health Visitor). The article 27 puts complete ban on discrimination on the
basis of sex in appointment in “the service in Pakistan”, provided that the performance and functions of the job can
be carried out by, and is deemed suitable for, both sexes.
Security: Article 38(a) of the constitution commits the State to secure the well-being of the people, irrespective
of, inter-alia, their sex by raising their standard of living, by preventing the concentration of wealth and means of
production and distribution in the hands of a few to the detriment of general interest and by ensuring equitable
adjustment of rights between employers and employees, and landlords and tenants.

LABOR POLICY 2002:
The Federal Government introduced new labor policy in 2002, the key points of this labor policy are:
This policy also calls for extension and up gradation of vocational and industrial training programs to meet the
changes of globalization, this is expected to be a right step towards affirmative action and equal employment
opportunity.
The policy pledges equal opportunities for all and categorically bans child and bonded labor, and discrimination
on the basis of gender, sex, race etc.
Strengthening bilateralism with least legislative and state intervention. This is expected to result in good
employer-employee relationship.

RATIFIED INTERNATIONAL
INSTRUMENTS:
ILO Discrimination (Employment and Occupation) Convention, 1958 (No. 111) (ratified on 24/1/1961).
ILO Equal Remuneration Convention, 1951 (No. 100) (ratified on 11/10/2001).
UN Convention on the Elimination of All Forms of Discrimination Against Women, 1979 (ratified on 12/3/1996).
ILO Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159) (ratified on
25/10/1994).
ILO Underground Work (Women) Convention, 1935 (No. 45) (ratified on 25/3/1938).
ILO Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87) (ratified on
14/2/1951).
ILO Night Work (Women)(Revised) Convention, 1948; and Protocol, 1990 (No. 89) (ratified on 14/2/1951).
ILO Right to Organize and Collective Bargaining Convention, 1949 (No. 98) (ratified on 26/5/1952).

DIVERSITY MANAGEMENT:
Diversity management is very important to AICL, it leads to:
Mutual respect: Workplace diversity fosters mutual respect among employees.
Conflict resolution: Conflict inevitably occurs in the work environment.
Business reputation: Diversity in the workplace is important for employees because it manifests itself in building
a great reputation for the company,
Job promotion: The importance of workplace diversity cannot be overstated when it comes to an organization’s
ability to reach markets in foreign countries.

WORKFORCE AGING:
Minimum age limit: 18 years having CNIC.
Maximum age limits: 26-30.

SEXUAL HARRASMENT
COMPLAINTS & ACTION:
AICL follow the law of which is passed in Pakistan the Criminal Law (Amendment) Act amended the Pakistan
Penal Code. According to this they provide secure and protect work environment to their employees. Monitor their
workplace.
If someone complains about sexual harassment, act immediately to investigate the complaint. If the complaint
turns out to be valid, their response is swift and effective.

DEVELOPMENT OF JOB
DESCRIPTION:
While developing Job description, AICL follow these steps:
Perform a job analysis: This process of gathering, examining and interpreting data about the job’s tasks will
supply accurate information about the job
Establish essential functions: Once the performance standard for a particular job has been made, essential
functions of the position must be defined.
Organize data concisely: This include, Job title, salary grade, objective, work environment, responsibilities,
physical demand, education & experience required, EEO statement, etc
Add disclaimer:
Add signature lines:

HR PROFESSIONAL ROLE IN JOB
ANALYSIS:
HR professionals play a key role in job analysis. They help managers determine the functions the organization
requires and the best organizational structure and market price for such functions.
Typical HR responsibilities in the job analysis process include:
Coordinating the job analysis process.
Drafting job descriptions and specification for management review.
Reviewing job descriptions and specifications periodically.
Reviewing managerial input for accuracy.
Seeking advice from outside sources for difficult or unusual analyses, if needed.
Acting as a job analyst or panel facilitator as needed.

JOB ANALYSIS METHODS:
While analyzing job in AICL these methods are used:
Gathering Background Information
Internal Observation
Performa Method

LABOR MARKET ANLYSIS:
Labor market analysis is the process of:
Identifying the appropriate labor market for various types of positions.
Surveying the market to determine the salaries that are being paid for like positions.
Identifying market trends such as: ancillary pay, and merit and pay practices.
Establishing, adjusting, and/or recommending salary changes and/or structures for staff positions.
Consulting with management on their workforce needs.

RECRUITING:
AICL recruit and develop a talented, determined and skilled workforce which contributes towards the
organization's success.
Both internal and external method are used for recruiting in AICL

SELECTION PROCEDURE:
Selection procedure consists of several methods of collecting information about the candidate qualification,
experience, physical and mental ability, nature and behavior, aptitude and knowledge to judge whether the
applicant is suitable for job or not in Adamjee Insurance Steps in selection are:
Job analysis
Recruitment
Application form
Written examination
Preliminary interview
Test
Medical examination
Reference check
Line manager’s decision

SELECTION RESPONCIBILITIES:
The HR selection process is the strategically planned procedural approach developed by human
resources professionals and implemented by organizations when recruiting, evaluating and hiring new employees.
The employee relations specialist is responsible for investigating and resolving workplace issues, the human
resource manager has ultimate responsibility for preserving the employer-employee relationship through designing
an effective employee relations strategy.
An effective employee relations strategy contains specific steps for ensuring the overall well-being of employees.

PREDICTORS FOR SELECTIONS:
In Adamjee for selections process some predictor are being used.
Experience
Past performance
Physical skills
Education
Interest
Salary requirements
Personality measures
Tenure or previous jobs
Police record

PROBLEMS DURING INTERVIW:
Here are five common problems that can play havoc with your interview process:
Asking the wrong question
Inconsistency between candidates
Favoritism
Interview fatigue
Interviews are inherently dishonest
It’s often said that the interview is the gateway to finding the perfect person that might even make or save your
business £1m – but it is littered with pitfalls. Getting the interview process right is essential for the long term
future of any business.

◦ Training make organizations more competitive
◦ Training helps retain valuable employees
◦ Training is no longer the first casualty of a business downturn.
◦ Develop employees capabilities
◦ Encourage change
◦ Promote continuous learning
◦ Facilitates communication
STRATEGIC TRAINING AND AICL
COMPETITIVENESS:

E-LEARNING AND ON-JOB
TRAINING STAGES:
E-Learning is also used for training in AICL.
On-Job training stages are:

WHO CONDUCTAPPRAISAL IN
AICL:
In AICL:
Supervisors who rate their subordinates
Employees who rate their supervisors
Team members who rate each other
Outside sources
Employees’ self-appraisal
Multisource

PERFORMANCE APPRAISAL
METHOD IN AICL:
In AICL Behavioral and Comparative methods are being used for performance appraisal:
Appraisal criteria based on job analysis
Absence of disparate impact and evidence of validity
Training of supervisors in conducting appraisals
Review process to prevent undue control of careers
Counseling to help poor performers improve

COMPENSATION PROGRAM:

COMPENSATION LAWS IN
PAKISTAN:
The Workmen's Compensation Act, 1923 (applicable in ICT, Sindh & Balochistan)
 The Workmen's Compensation Act, 1923 (adapted by the province of Punjab through Amendment Act of 2013)
The Khyber Pakhtunkhwa Workers’ Compensation Act, 2013
Provincial Employees Social Security Ordinance, 1965 (applicable in ICT, Sindh, KPK, and Balochistan)
Provincial Employees Social Security Ordinance, 1965 (adapted by the province of Punjab through Amendment Act of
2013)
Industrial and Commercial Employment (Standing Orders) Ordinance, 1968
Industrial and Commercial Employment (Standing Orders) Ordinance, 1968 (adapted by the province of Punjab through
Amendment Act of 2012)
The Khyber Pakhtunkhwa Industrial And Commercial Employment (Standing Orders) Act, 2013
The Sindh Terms of Employment (Standing Orders) Act, 2015
The Sindh Workers’ Compensation Act, 2015

SPECIAL INCENTIVES PROGRAM:
Bonus
Awards
Recognition Awards
Service Awards

EXECUTIVE COMPENSATION
COMPONENTS:

EMPLOYEES' RIGHTS IN AICL:
All employees have basic rights in the workplace
right to privacy
fair compensation
freedom from discrimination
A job applicant also has certain rights even prior to being hired as an employee. Those rights
include the right to be free from discrimination based on age, gender, race, national origin, or
religion during the hiring process.

RIGHTS TO EMPLOYEES:
Right to be free from discrimination and harassment of all types;
Right to a safe workplace free of dangerous conditions,
Right to be free from retaliation for filing a claim or complaint against an employer
Right to fair wages for work performed.

AGE DISCRIMINATION ACT:
Age Discrimination in Employment Act of constitution of Islamic Republic of Pakistan
Prevents employers from giving preferential treatment to younger workers to the detriment of
older workers.
Only applies to workers 40 years of age and older, and to workplaces with 20 or more
employees.

FAIR LABOR STANDARD ACT:
Fair Labor Standards Act of constitution of Islamic Republic of Pakistan
Provides regulation as to the duration of work days, and breaks an employer must provide.
Governs applicable salary and overtime requirements set out by the federal government.
Employees have a variety of rights in the workplace, established under both federal and state law.

DISCIPLINE AND GUIDELINES TO
EMPLOYEES:
Conflict of Interest
Protection and Proper Use of Company Assets
Fair dealing
Confidentiality
Compliance with laws rules and regulations

CONCLUSION:
There are many HR related challenges and Adamjee is efficiently overcoming these challenges.
The relationship between employees and managers is friendly and have helping nature towards
each other. Customer service and quality product are directly linked to strategic HR.
In AICL HR planning is termed as basic and beneficial planning. Motivation techniques are
excellent and directly linked to individual performance and organizational growth.
In AICL the employees are loyal and their services make their customers loyal to them. The way
they manage retention is excellent.

CONTINUED:
Diversity management is really important task to a HR manager, in AICL there is no
discrimination on the basis of color, religion, caste or nationality just a friendly environment. On
unethical behavior there is quick respond from higher authorities.
EEO has basic role in AICL and all the national and international laws are implemented.
They have valid methods for recruitments, interviews, selections and placements for jobs.
They have efficient training programs for their employees and their compensation strategies
are making their employees more satisfy and loyal to organization.
Employees have all the basic rights and work under specific guideline provided by organization.

51FIAZ AHMAD, CENTER FOR RESEARCH AND DEVELOPMENT MINHAJ UNIVERSITY LAHORE

52FIAZ AHMAD, CENTER FOR RESEARCH AND DEVELOPMENT MINHAJ UNIVERSITY LAHORE

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Human resource practices in pakistan a case of adamjee insurance company limited