This sreport will help you to set the HR Policies for new company.

1. Proposal for M/s. Spinning Mills
Yarn Manufacturer
By: Group Three 1st Semester MIBF May 04, 2014
Submitted to: Sir. Naveed Ahmed

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Libra HR Solutions
About Us
Libra HR Solutions is Human Resource Management Consultancy Firm, incorporated in 2006. We are a premier provider of Executive Search, Contractual Employment Outsourcing, Business Process Outsourcing (BPO) and Corporate Training. For nearly 8 years, we have focused on providing quality HR services and built strong relationship with our clients and job seekers national and Internationally. Since our inception we have screened over 30,000 CVs and hired over 6000 professionals for renowned national and multinational companies in Pakistan. We have the resources to conduct Recruitment, Headhunting, Payroll outsourcing services, HR Outsourcing, Employee Outsourcing, Business Process Outsourcing and Training services in all over Pakistan. These expertise and experience enable us to serve diversified human resource needs of our clients. Partnering with Libra is a truly collaborative experience for all your HR organizational needs- Our team consists of experienced professionals that implement methods and practices based on thorough understanding of the business issues affecting organizations today. It is our purpose to be a value-adding human resource firm and we measure our own success by the impact of our services on your performance.
Regards,
Majid Aziz
CEO, Libra HR Solutions

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Libra HR Solutions
Contents
About Us ......................................................................... 1
Little Brief of the Client .................................................. 3
Organizational Structure of the Firm .............................. 4
Roles & Responsibilities of Various Departments .......... 5
The Role of Finance Department.................................... 5
Role of Operations Department ..................................... 6
Role of Human Resource Department ........................... 7
Role of Marketing Department ...................................... 9
JD’s of Key Position Holders ......................................... 10
JD’S of Marketing Manager .......................................... 10
HR Policies ........................................................................
Hiring & Staffing ........................................ 16
Search Methodology .................................. 17
Assessment Methodology .......................... 18
Separations ................................................. 19
Training & Development ............................ 20
Performance Appraisal ............................... 21
Work Environment ...................................... 22
Compensation and benefits ......................... 22
Motivational Strategies ............................... 23
Promotions ................................................. 24
Choosing an outsourcer .............................. 24
Recommnedation……………………………………………………….25
HR and TD budget for the 1st Year ............................... 26

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Little Brief of the Client
Industry: Textile Spinning
Size: Medium
XYZ are quality yarn manufacturers, our main products are 100 % cotton yarn, Polyester Viscose (PV) blended yarn and Polyester Cotton (PC) blended yarn. We principally use finest quality raw material sourced from our local and international partners. The machinery setup is a combination of European, Japanese and Chinese origin. Our product is marketed worldwide with China and Korea being major destinations.
We take the responsibility of minimized cost and offer highly competitive Products. We exhibit high spirit of Innovation in the industry of blended Yarn Manufacturers as to meet the Tomorrow's Objectives.
With modern Management techniques, most advance Control System and Quality Professionals We have a confidence and tendency to become an Apex class Blended Yarn Manufacturer and will ordeal our self in the International Industry of Blended Yarn Manufacturers.

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Organizational Structure of the Firm
MD
CFO
Finance
Manager
Finance
Manager
Accounts
Director
Operations
Manager
Production
Manager
Purchases
Director
Human Resources
Manager
Recru & Select
Manager
Training & Dev
Directo
Marketing/Sales
Manager
Marketing
Maketing Officer
Manager
Sales
Sales Team

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Roles & Responsibilities of Various Departments
The Role of Finance Department
The role of a finance department is a complex one, requiring both an understanding of how the business functions as a whole and specialized financial knowledge. The head of the financial operations is called the chief financial officer (CFO).
The manager is responsible for figuring out the financial projections for the business. The development of a new product, for example, requires an investment of capital over time. The finance manager is responsible for knowing how much the product is expected to cost and how much revenue it is expected to earn so that he can invest the appropriate amount in the product. This is a lot tougher than it sounds because there is no accurate financial data for the future. The finance manager will use data analyses and educated guesses to approximate the value, but it's extremely rare that he can be 100% sure of the future cash flows.
Figuring out the value of an operation is one thing, but it is another thing to figure out if it's worth financing. There is a cost to investing money, either the opportunity cost of not investing it elsewhere, the cost of borrowing money, or the cost of selling equity. The finance manager uses a number of tools, such as setting the cost of capital (the cost of money over time, which will be explored in further depth later on) to determine the cost of financing.
At the same time that this is going on, the financial manager must also ensure that the business has enough cash to pay upcoming financial obligations without hoarding assets that could otherwise be invested. This is a delicate dance between short-term and long-term responsibilities.
The CFO is the head of the financial department and is responsible for all of the same things as his subordinates, but is also the person who has to sign off that all of the company's financial statements are accurate. He is also responsible for financial planning and record-keeping, as well as financial reporting to higher management.

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Role of Operations Department
An operation involves overseeing and having responsibility for all the activities in the organization which contribute to the effective production of Yarn. Depending on the organizational structure, the exact nature of tasks that are classified under the operations function, the following activities are done by operations
 Understanding strategic objectives: Head Operations must clearly understand the goals of the organization and develop a clear vision of exactly how operations will help achieve them. This also involves translating these goals into implications for the operation's performance, objectives, quality, speed, dependability, flexibility and cost.
 Developing an operations strategy: Due to the numerous decision-making involved with operations, it is critical that operations have a set of guidelines that are align with the organization’s long term goals.
 Designing the operation's products, services and processes: Design involves determining the physical form, shape and composition of products, services and processes.
 Planning and controlling: This involves deciding what the operations resources should be doing and making sure that it is getting done.
 Improving the performance of operation: Operations Head are expected to continually monitor and improve the overall performance of their operation.

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Role of Human Resource Department
A typical Human Resource Department is carries out the following functions:
Manpower Planning
It involves the planning for the future and finding out how many employees will be needed in the future by the business and what types of skills should they possess.
It depends on the following factors:
 The number of people leaving the job
 The projected growth in sales of the business
 Technological changes
 Productivity level of the workers
Job analysis
HR Department is also involved in designing the Job analysis and Job description for the prospective vacancies.
A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job.
Determining wages and salaries
HR Department is also involved in conducting market surveys and determining the wages and salaries for different position in an organization. This decision may be taken in consultation with top management and the Finance department.
Recruitment and Selection
One of the most important jobs HR department is to recruit the best people for the organization. This is of crucial importance as the success of any organization depends on the quality of its workforce.
Performance Appraisal
Once the employees are recruited, the HR Department has to review their performance on a regular basis through proper performance appraisals.
Performance appraisal is the process of obtaining, analysing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

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Training and Development
HR department is constantly keeping a watch over the employees of the organization. In order to improve the efficiency level of the employees they have go undergo regular trainings and development programs. All trainings and development needs are carried out by this department. Training might include on the job or off the job training.
Employee welfare and motivation
Happy employees mean a healthy organization. HR Department conducts various employee welfare activities which might include employees get together, annual staff parties etc. HR department also reviews organizational policies and its impact on the motivation of the employees.
Addressing employee’s grievances
HR department is the link between the workers and the management. Employees grievances related work environment are usually entertained and resolved by the HR Department.
Labor management relations
For the smooth operation of any organization, it is crucial to have good labor management relations. HR department has to ensure that these relations are cordial. In case of any labor-management conflict the HR Department will play a vital role in bringing both management parties to the negotiation table and resolving the issue.
Implementing organizational policies
HR Department has to coordinate with line manager and see that the organizational policies are being implemented in a proper manner. Disciplinary action can be initiated against employees who are not following organizational rules and regulations. All these actions are conceived and implemented by the HR department.
Dismissal and redundancy
HR Department has to take firm actions against employees who are not following the organizational code of conduct, rules and regulations. This can result in the dismissal of the employee. Sometimes, an organization may no more require the services of an employee. The employee may be made redundant. HR Department has to see that organizational and government regulations are being followed in this process.

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Role of Marketing Department
The marketing department must act as a guide and lead the company's other departments in developing, producing, fulfilling, and servicing products or services for their customers. Communication is vital. The marketing department typically has a better understanding of the market and customer needs, but should not act independently of product development or customer service. Marketing should be involved, and there should be a meeting of the minds, whenever discussions are held regarding new product development or any customer-related function of the company.
The marketing department studies the market and the customers, determines the best way to reach those customers, and works with the rest of the company to help determine the new product needs of the market and represent the company in a consistent voice.
This process involves four stages of action:
1. Researching and analyzing your business and the market
2. Planning and writing the plan
3. Implementing the plan
4. Evaluating the results

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JD’s of Key Position Holders
JD’S of Marketing Manager
Depending on budget availability and the skills of the team, you may choose to outsource certain elements of the marketing process (such as market research) or decide to do these jobs in-house. Key responsibilities of the marketing manager / director vary according to the business but can include:
 Instilling a marketing led ethos throughout the business
 Researching and reporting on external opportunities
 Understanding current and potential customers
 Managing the customer journey (customer relationship management)
 Developing the marketing strategy and plan
 Management of the marketing mix
 Managing agencies
 Measuring success
 Managing budgets
 Ensuring timely delivery
 Approving images
 Developing guidelines
 Making customer focused decisions

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JD’s of Manager Recruitment
 Maintains the work structure by updating job requirements and job descriptions for all positions.
 Maintains organization staff by establishing a recruiting, testing, and interviewing program; counseling managers on candidate selection; conducting and analyzing exit interviews; recommending changes.
 Maintains a pay plan by conducting periodic pay surveys; scheduling and conducting job evaluations; preparing pay budgets; monitoring and scheduling individual pay actions; recommending, planning, and implementing pay structure revisions.
 Ensures planning, monitoring, and appraisal of employee work results by training managers to coach and discipline employees; scheduling management conferences with employees; hearing and resolving employee grievances; counseling employees and supervisors.
 Ensures legal compliance by monitoring and implementing applicable human resource federal and state requirements; conducting investigations; maintaining records; representing the organization at hearings.
 Contributes to team effort by accomplishing related results as needed
JD’s of Manager T & D
 Prepares employees for assignments by establishing and conducting orientation and training programs.
 Maintains management guidelines by preparing, updating, and recommending human resource policies and procedures.
 Maintains human resource staff job results by counseling and disciplining employees; planning, monitoring, and appraising job results.
 Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies
 Maintains human resource staff by recruiting, selecting, orienting, and training employees
 Maintains employee benefits programs and informs employees of benefits by studying and assessing benefit needs and trends; recommending benefit programs to management; directing the processing of benefit claims; obtaining and evaluating benefit contract bids; awarding benefit contracts; designing and conducting educational programs on benefit programs.

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JD’s of Manager Finance
A financial manager is responsible for providing financial advice and support to clients and colleagues to enable them to make sound business decisions.
Following are the key responsibilities:
 Providing and interpreting financial information;
 Monitoring and interpreting cash flows and predicting future trends;
 Analyzing change and advising accordingly;
 Formulating strategic and long-term business plans;
 Researching and reporting on factors influencing business performance;
 Analyzing competitors and market trends;
 Developing financial management mechanisms that minimize financial risk;
 Conducting reviews and evaluations for cost-reduction opportunities;
 Managing a company's financial accounting, monitoring and reporting systems;
 liaising with auditors to ensure annual monitoring is carried out;
 Developing external relationships with appropriate contacts, e.g. auditors, solicitors, bankers and statutory organizations such as the Inland Revenue;
 Producing accurate financial reports to specific deadlines;
 Arranging new sources of finance for a company's debt facilities;
 Keeping abreast of changes in financial regulations and legislation.
JD’s of Accountant
Accountant Job Purpose: Provides financial information to management by researching and analyzing accounting data; preparing reports.
Accountant Job Duties:
 Prepares asset, liability, and capital account entries by compiling and analyzing account information.
 Documents financial transactions by entering account information.
 Recommends financial actions by analyzing accounting options.
 Summarizes current financial status by collecting information; preparing balance sheet, profit and loss statement, and other reports.
 Substantiates financial transactions by auditing documents.
 Maintains accounting controls by preparing and recommending policies and procedures.
 Guides accounting clerical staff by coordinating activities and answering questions.

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 Reconciles financial discrepancies by collecting and analyzing account information.
 Secures financial information by completing data base backups.
 Maintains financial security by following internal controls.
 Prepares payments by verifying documentation, and requesting disbursements.
 Prepares special financial reports by collecting, analyzing, and summarizing account information and trends.
 Maintains customer confidence and protects operations by keeping financial information confidential.
JD’s of Manager Purchase
The Purchasing Manager will form an integral part of the Purchasing function in the achievement of Operational objectives. With a strong, solid background in purchasing and supply chain management, the candidate will take a proactive approach in reviewing current systems and procedures, making recommendations and implementing changes. The role is key to leading the Company forward in securing quality suppliers of materials and components covering price delivery and quality targets.
 Managing and controlling all the company’s external suppliers with particular emphasis on the purchase of Materials and finished parts for production.
 Ensure parts and materials are bought at the most competitive price and delivered on time for production.
 Establish strategic relationships with key suppliers (probably turnkey including design) who are aligned to the company's needs.
 Identify new suppliers, agree terms and negotiate supply agreements where appropriate, including discount structures and volume rebates.
 Foster close working relationships with associated departments eg. Sales, Engineering and Production, Business Development.
 To carry out a comprehensive review of the Purchasing function and its methodology and identify and implement improvements

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JD’s of Manager Sales
 Determines annual unit and gross-profit plans by implementing marketing strategies; analyzing trends and results.
 Establishes sales objectives by forecasting and developing annual sales quotas for regions and territories; projecting expected sales volume and profit for existing and new products.
 Implements sales programs by developing field sales action plans.
 Maintains sales volume, product mix, and selling price by keeping current with supply and demand, changing trends, economic indicators, and competitors.
 Establishes and adjusts selling prices by monitoring costs, competition, and supply and demand.
 Completes national sales operational requirements by scheduling and assigning employees; following up on work results.
 Maintains national sales staff by recruiting, selecting, orienting, and training employees.
 Maintains national sales staff job results by counseling and disciplining employees; planning, monitoring, and appraising job results.
 Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; participating in professional societies.
 Contributes to team effort by accomplishing related results as needed.
JD’s of Manager Production
A production manager is involved with the planning, coordination and control of manufacturing processes. They ensure that goods and services are produced efficiently and that the correct amount is produced at the right cost and level of quality.
The scope of the job depends on the nature of the production system: jobbing, mass, process, or batch production. Many companies are involved in several types of production, adding to the complexity of the job. Most production managers are responsible for both human and material resources.
 overseeing the production process, drawing up a production schedule;
 ensuring that the production is cost effective;
 making sure that products are produced on time and are of good quality;
 working out the human and material resources needed;
 drafting a timescale for the job;

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 estimating costs and setting the quality standards;
 monitoring the production processes and adjusting schedules as needed;
 being responsible for the selection and maintenance of equipment;
 monitoring product standards and implementing quality-control programmes;
 liaising among different departments, e.g. suppliers, managers;
 working with managers to implement the company's policies and goals;
 ensuring that health and safety guidelines are followed;
 supervising and motivating a team of workers;
 reviewing worker performance;
 identifying training needs.

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HR Policies
Hiring & Staffing
Each department at the beginning of the year will be required to submit a comprehensive manpower plan in line with the objectives set by the leadership team. These projections will be reviewed & approved by the Finance Department & MD
HR will ensure all hiring is within the approved HR budget. Any hiring over and above the approved budget will be treated as an exception and will require Board’s approval.
Policy for hiring
 Company will provide equal employment opportunity without any discrimination based on religion, sex, race, color, marital status, social class, etc.
 All appointments shall be made in accordance with the policy approved by the Board.
 Selection and appoint of new employee member with appropriate qualifications / skill set and experience through a methodical, merit-based, non-discriminatory selection process.
 The company will hire employees on its payroll only management and Engineering cadre. Non-management/Engineering jobs will be outsourced.
 A person appointed or selected on pay roll shall be governed by the terms & conditions of his / her Letter of Appointment and the terms mentioned / parameters approved by Director HR and MD
 The recruitment and selection process will remain a specialized function of the Human Resource Department or may be outsourced , with an active input from user departments who require such employee members.
Job Description
 Every job should have a title and its next level of management reporting.
 Every job should have specific objectives mentioned on the job description form.
 Every job description must indicate the purpose of the job, its scope and duties and responsibilities in a very precise and clear manner.
 Every job description must entail the required level of education, job knowledge, experience and training so that the applicant / incumbent's eligibility could be measured against the requirement of the job.
 job descriptions should be submitted to HR to ensure that they are complete and signed by the respective managers and are in line with set standards and procedures.

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Search Methodology
All requests for new hires will be dealt by and coordinated through the HR department. The search for suitable candidates will be conducted through the following channels.
Internal Job Announcements / Advertisements
The goal of the internal job advertising policy is to ensure that employees are given a fair opportunity to be considered for positions available within the organization. A key objective of the policy is to communicate a standard and consistent framework towards filling vacant posts and allowing the placement of employee based on their demonstrated performance and qualifications.
Unsolicited Application / Database
Where internal search has proved to be an insufficient method, search may be carried out externally. HR will carry the process forward by searching for potential candidates through the updated database, referrals, market exploration and / or conducting assessments of the identified candidates.
Advertisements
This medium of attracting talent may be used as and when deemed appropriate, employer branding initiatives, hiring for specialized skills etc. The cost of the advertisement will be borne by the concerned segment.
Search Consultants
For hiring at senior levels or for areas where there is dearth of quality resource and specialized skills, services of professional head hunters may be engaged. However the services of the consultant will only be engaged by HR and the cost will be borne by the concerned department.
Online Recruitment Facility
By encourages career oriented individuals to directly post their CVs for the vacant positions listed on our official website under Careers section. In addition to the above-mentioned methodologies for search of talent, the HR may use other sources and methods of identifying talent for the organization. Further, HR may also engage services of outsourcing firms through service contracts with management’s concurrence.
Age Limit
A candidate shall not be less than 18 years of age, and as such no child labor is allowed in any circumstances considering the heavy machinery.

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Assessment Methodology
HR is committed to attracting and bringing on board the top talent available in the market. To ensure quality induction at all levels, the Human Resource Department may use various assessment tools / techniques to best suit the organization’s requirements, cultural fit and branding initiatives.
These assessment tools techniques may include (but are not limited to):
Competency Assessment (interviews, presentations)
Aptitude Test
Behavioral Assessment (group discussions, interviews)
Personality Profiling
Psychometric Testing
Written test

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Separations
The separation covers three areas i.e. (1) Voluntary Resignation, (2) Superannuation and Retirement (3) Termination of Employment
1. Voluntary Resignation
An employee who wishes to leave the organization on his own shall provide a 60 days’ notice in writing regarding his / her intention to separate from the organization. However, it’s the sole discretion of organization to agree to relieve him earlier provided the employee voluntarily forgoes his / her salary and benefits for the period for which he wishes to reduce the notice time.
2. Superannuation and Retirement
Every employee shall retire from service:
 On attaining the age of 60 years, the employee shall retire from the service.
3. Termination of Employment
The services of an employee may be terminated by the organization on 60 days’ notice or on payment of a sum equal to the payment of 60 days basic salary in lieu thereof, with or without assigning any reason.

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Training & Development
Training is the systematic development of the attitude, knowledge and skill pattern required by a person to perform a given task or job adequately, development is 'the growth of an individual in terms of ability, understanding and awareness.
We learned that is committed to an employee development practice that enables all its employees to reach their optimum potential thereby creating a high performance organization. This belief is supported by the comprehensive approach towards performance management, career development and management training.
Training is a planned effort by a company to facilitate employees learning of job- related competencies. These competencies include knowledge, skills or behaviors that are critical for the successful job performance.
Policy
 To invest in our employee/staff and in their continuing career development that allows achieving maximum flexibility in meeting its current and future skills requirements.
 To commit organization’s resources to creating and fostering an environment that facilitates and enhances the skills, training and career development of its staff.
 The focus of our training activity shall be to identify, in conjunction with the all departments for the right development needs, and provide the core / functional / technical training and skills training opportunities to our employees.
 Timely and relevant from an individual’s perspective; firmly linked to both today’s business needs and the long-term business plans.

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Performance Appraisal
Performance appraisal at our company is used to evaluate the job performance of employees. HR department use the information gathered through performance appraisal to evaluate the employee. According to this system employees are assigned SMART job goals at the start of the year then mid-year and final evaluation is made at the end of the year on the basis of these set targets
 Further employee evaluation is done by his immediate boss regarding his motivation and behavior, and then employee report is prepared with his consent to eliminate biasness. The comparison of the actual level of competency and the expected competency level which is also defined as meeting the success criteria gives a true picture of where these employee stands. The strength and weaknesses are analyzed and according to that, a training program is arranged to overcome the problems.  The rating system will be against competencies  Demonstrate a low skill /knowledge level in most of the core priority areas for the job. Highly intensive or re-education regarding approach is required.  The appraisal process aims to improve the effectiveness of the organization by contributing to achieving a well-motivated and competent workforce.
 All directly employed employees who have completed their probationary period are required to participate in the appraisal process.
 The appraisal process will be used to identify the individual’s development needs and support the objectives of the Training and Development Policy.
 The appraisal process will be a fair and equitable process in line with our Equality Policy.

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Work Environment
We wants to create a superior, congenial and efficient work environment in which the employees are assured a non-discriminatory, transparent and respectful atmosphere, a clearly defined system of working and reporting, a disciplined approach to work, and courteous and efficient service to customers.
It is the responsibility of Management to help promote such a work environment by creating, following and enforcing the highest standards of work procedures and enforcement mechanism.
Compensation and benefits
We consider its employees not just as a cost but as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force. Direct Benefits:  Salary & Wages  Car Allowances ( where applicable)  Housing allowance for every employee  Commissions

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Libra HR Solutions Indirect Benefits Extra Pay for Overtime: If a worker works for more than nine hours in any day or for more than 48 hours in any week in a non –seasonal or seasonal factory, he shall be entitled in respect of overtime worked to pay at the rate of twice of his ordinary pay. Group life insurance Company will provide group life insurance of each employee either they are in permanent cadre or working on contract.  Medical/Hospitalization facility  Educational refund plan  Retirement Plan
Motivational Strategies
We pay more attention on motivating the employees to give their ways, as a policy not to use only money as a motivational factor but they offer training and different certifications to grow up their skills. They also offer Hajj Visit on good performance or some time they offer to switch another department to polish their skills on different areas.
Building morale of people and creating a winning culture continues to be the foremost objective where ordinary people can achieve the extra-ordinary by performing willingly to the best of their abilities. The cross culture team continues its efforts towards integrating the various cultural element of the organization. Some of the activities that would further cement efforts in the plan to achieve excellence through a highly integrated and fully committed team include
 Employee of the month award
 Hall of the fame for top performances
 Spot Cash Awards:
 They are awarded for extraordinary counter service or adopting precautionary measures to prevent frauds/ forgeries

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Libra HR Solutions Promotions A promotion is usually a move by an employee to a vacant position at a higher grade level either within the current department or in a different department. Changes to a higher grade level obtained through intradepartmental/interdivisional promotion, job audits or career paths are covered in other policies. Promotions generally result in a salary increase at the time of promotion. The general guidelines for these increases are covered in this policy
Criteria It's important to determine the minimum criteria for advancement and make employees aware of the standards they need to meet to earn promotions. Therefore we have set the minimum of two years of services in current position.
Further all promotions in the company will be subject to availability of vacancies and suitability
Outsourcing:
Outsourcing involves transferring responsibility for carrying out an activity (previously carried on internally) to an outsourcer for an agreed charge. The outsourcer provides services to our company based on a mutually agreed service level, normally defined in a formal contract.
Choosing an outsourcer
Criteria for selecting an outsourcer shall be defined and documented, taking into account the
 company’s reputation and history
 quality of services provided to other customers
 number and competence of staff and managers
 financial stability of the company and commercial record
 retention rates of the company’s employees

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Recommendation
The HRD function in the manufacturing industries is often concerned with payroll, administrative work and mediating between the management and the workers. Mostly, the manufacturing companies lean on the HRD function in times of labor unrest and strikes. On the other hand, the HRD function is pivotal to the success of the service sector companies as they are seen as enabling and empowering the employees in the services sector.
The point here is that in the manufacturing sector companies, the HRD function plays a more important role as the chief sources of competitive advantage in these companies are the human resources. In the services sector like the financial and technology companies, the brand value is measured according to the level of intellectual capital which is a derivative of the contribution of the human resources in the company.
Finally, the manufacturing companies have classification of employees into blue collar and white collar roles which creates a barrier to the way in which they are treated and they in turn demand their rights. On the other hand, the services sector has only white collar roles which mean that labour arbitration and mediating between organized unions and the management is virtually non-existent. This is an important and crucial distinction which often determines the differing perceptions of the HRD function in these sectors.
In conclusion, contemporary management theory has evolved to a point where the HRD function is being crucial in all sectors and the coming years might see a paradigm shift in the way human resources are conceptualized with the advent of knowledge worker in both manufacturing and services.

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HR BUDGET for the First Year
S.No. Description No. of Employees Amount in PKR
Management Director
01
2,2500,000
Working Directors
03
3,600,000
CFO
01
1,500,000
Managers
08
7,000,000
Engineers
06
6,000,000
Sales Officers
07
5,000,000
Office Assistant
14
3,300,000
Technicians
25
6,500,000
Guards & Other
30
4,000,000
95 38,150,000

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Budget for the Training and Development for 1st Year:
Description Amount in PKR
Employee Travel Expense
1,000,000
Professional Fees
2,222,000
Outside Training Prog Participation Fee
1,600,000
Food and Tea
1,500,000
T & D Expense
1,000,000
Material cost
50,000
Printing
20,000
Award Expense
20,000
Supplies
50,000
Events and distribution Expense
100,000
Miscellaneous
50,000
Total
7,590,000