A Study of Staff Development in United Sugar Company, Jeddah
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This research deals with the staff development of United Sugar Company, which will help in providing better training facilities to the employees. Read more about USC HR procedures and practices, products offered by USC, and more.
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COOPERATIVE TRAINING PROGRAM FINAL PROJECT REPORT Topic: A Study of _____________________________________________ in (SAVOLA – United Sugar Company),Jeddah
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Prepared By: Abdullah S. Bokhari ID 13110017 Specialization:(HRM) Course Code: MGT-490 YANBU UNIVERSITY COLLEGE DEPARTMENT OF MS - IMT May, 2018
Table of Contents Summary....................................................................................................................................5 Acknowledgement......................................................................................................................6 Abbreviations.............................................................................................................................7 Chapter One:..............................................................................................................................8 Overview of SAVOLA-USC:................................................................................................8 Mission and Vision:...............................................................................................................8 Corporate Values:...................................................................................................................9 Sources of the Data:.............................................................................................................10 Structure of the Study:.........................................................................................................10 Organizational Structure:.....................................................................................................11 HR Structure:.......................................................................................................................11 Products Offered by USC:...................................................................................................12 Chapter Two: USC HR Procedures and Practices,..................................................................14 USC HR Departments:.........................................................................................................14 Job Handled while Training in USC:...................................................................................15 Chapter 3..................................................................................................................................17 Designing online recruitment page......................................................................................17 Better pay than the competitors............................................................................................17 Defining the job position in a better manner........................................................................19 Chapter 4: Data Analysis.........................................................................................................20 Focus group interview..........................................................................................................20
Summary This research deals with the staff development of United Sugar Company, which will help in providing better training facilities to the employees. The company follows an efficient system of recruiting the employees so that it can help in improving the level of efficiency among the employees. The company needs to motivate the employees so that it can result in increasing the level of production among the employees. The findings of the research suggest that designing the recruitment page in an attractive manner will result in attracting more number of visitors to the page so that it can lead to recruiting the best candidates that are available in the market. The company needs to provide better pay to the employees so that it can help them in being motivated and work in full concentration without looking for alternatives in the market. The company also need to provide better description of the job so that it can result in attracting the suitable candidates for the interview. This will result in increasing the output of the company and the level of profits for the company as well. The HR department need to look after the reward system of the employees so that it can help in rewarding the employees in a proper manner.
Acknowledgement I would also like to take this opportunity to thank my professor without whose, constant support and guidance, the research would not have been possible. Firstly, I would like to thank God the Almighty in giving me the strength and courage without which I could not have completed the entire study. Secondly, I would like to thank my family and relatives who gave me constant support mentally and physically so that I can complete the study on time. Lastly, I would like to give thanks to my peers and the friends who have helped me in providing the appropriate information throughout the project and helped me in doing the in-depth analysis of the research. Without their proper guidance, it is impossible for me to complete the project. Thanks and Regards, Yours Sincerely,
Abbreviations USC- United Sugar Company HR- Human Resources CV- Curriculum Vitae
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Chapter One: Overview of SAVOLA-USC: Savola is a company that was founded in 1979 in Saudi Arabia. They startedasmallcompanywith200employees.Theirmaintaskwas importing and refining vegetable oil and sell it locally. They had a clear vision for their future of becoming the leading investment group for their region and generating high profits for their investors and shareholders. Hard-workandcommitmentlegtogrowthandexpansion.Afterthat, Savolahasenteredthesugarmarketin1994bybuildingtheirfirst refinery in Jeddah, Saudi Arabia. UnitedSugarCompanyisoperatingasasubsidiaryofSavola Company. USC is a company that handles sugar processing and trading in Saudi Arabia. After that, they decided to expand their operations of their food sector, and they reached to Egypt, Sudan, Algeria, Morocco, Iran and Kazakhstan. USC is one of the top three refineries, in terms of capacity, in the world. A few years after that, Savola made a huge decision and entered the retail sector in 1998, by the acquisition of Panda United Group of stores. They also acquired stakes in related company such as Herfy, Al- Marai and Kinan. Nowadays, Savola is one of the top companies in the Middle East. Their results speak for themselves.
Mission and Vision: USC’s vision is”We will create the most successful sugar processing and trading company”. This vision driven and inspired them every day since they established the refinery. Their mission is to be committed to provide Saudi Arabia and the Middle East with high-quality sugar and securing long-term stability of price. Corporate Values: The values in Savola are not just words, they are the blueprints for decisions and actions they take as individuals, teams and a company. All of their relationships and interactions are going through four basic ethics of Honesty, Conscientiousness, Caring Justice, and Personal Control. 1.Honesty:It’saboutemployees’responsibilitiestowards shareholders,joinventurepartnersandinvestorswhoentrusted them with their investments. Honesty involves four basic behaviors, Always tell the truth no matter what the situation is. Always keep your promises. Always honor your obligations. Be always committed to resolve conflicts and issues. 2.Conscientiousness:it’saboutemployees’responsibilitiestowards external parties, such as suppliers, customers and community as a whole. This concept represents the idea of being a abiding citizen, behavinginagoodmannerandrespectpeople.Regarding
conscientiousness, employees must make decisions based on the following criteria, Legality:makingsurethatyourdecisionsarelegalwitha proper reference. Public Opinion: stand by your decision after revealing it to the public. Personal Opinion: feel comfortable and make sure that your decision is fair, not only legal. 3.Caring Justice: It’s about employee’s responsibilities towards their colleagues. It means that everyone in the organizations must be treated with human dignity and decency. It’s about treating other the way you want to be treated. Caring Justice should demonstrate the following behaviors, Providing your co-workers and managers with accurate and clear feedback. Acknowledge and appreciate the achievements of others. Help the developing of others’ skills. 4.PersonalControl:It’swhatdrivestheemployeestowardsself- improvement to reach to their full potential. Their goal is to achieve the highest moral balance between the previous ethical values. Sources of the Data: I collected all of the data in this report by asking the employees and managers at USC, meeting managers arranged by me. I also collected some of the data by observing a few employees, bad use the company’s policy doesn’t allow me to work on it.
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Structure of the Study: Thisreportcontainsfivechapters.Chapteronepresentsthegeneral overview and background about USC as well as products offered by the company. Chapter two provides information about USC’s HR department, including procedures and practices. It also includes every task I have done at this company. While chapter three gives you the details about my MINI project, including its topic, why I came up with this project, finding and visuals of my project. Finally, chapter four represents the conclusion and recommendations. Organizational Structure:
HR Structure: Products Offered by USC: In United Sugar Company, sugar is made by extracting the sugar juicefromsugarcaneorbeet.Afterthat,itgoesthroughdifferent processes such as, cleaning, crystallize and dry the sugar and so on. From there, many types of sugar could be produced. The sugar crystal size, color and heating degree generates different types of sugar which are suitable for different food and beverages. Notice that some types of sugar Majed Badghaish HRBP Senior Manager-SugarKSA Ahmed AbdulazizKhalid Ammari Ahmad Samkari
are used only by food and beverages industries and are not for sale in supermarkets. United Sugar Company produces different types of sugar such as, 1.Fine Sugar: It’s the most common type of sugar which used by people. It’s called “Fine Sugar” because of its small crystals. Here in USC, there are typical uses for each kind. As for the fine sugar, it’s used in beverage formulations, packaging it for retail sale, and it’s used in dry product mixes. 2.Extra Fine Sugar: This type of sugar is also known as Caster sugar, and we call it extra fine because it has the smallest size of white crystals. Generally, people use it in desserts such as pudding, because the crystals are very small so they dissolve easily and quick. As for USC, they also use it in beverage formulation, packaging it for retailers as a caster sugar, and in dry mixes. 3.Coarse Sugar: This type of sugar has a large crystal size compared to the regular size. One of its characteristics is that it resists color change at high cooking and baking temperature. USC uses it in dry product formulation and packaging it for retailers. 4.Brown Sugar: This type of sugar is made by mixing the white sugar with different amount of molasses. Molasses is a dark juice comes from raw sugar while it’s been processed in the refinery. The brown sugar tends to cluster because it’s moist. So when used to bake stuff, the moisture allows the baked goods to stay chewy and
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smooth. That’s why bakers use it when they bake cookies. USC packages it for retail sale and uses it in dry product formulation. 5.Liquid Sugar: This type of sugar is made by melting the refined sugar. It’s a water-white sucrose. It most go through a serious filtration to remove color and ashes. Liquid sugar is used by factories which require liquid sugar with no color and ashes. Such as Pepsi. 6.Icing Sugar: It’s made by mixing refined sugar with modified starch, until it reaches to the desired size. The Starch is a white substance found in plant such as potatoes. It’s generally used in bakeries and confectionary products. It can be spread easily to create a wonderful design at the top of cakes.
Chapter Two: USC HR Procedures and Practices, USC HR Departments: 1.Recruitment and Training: The recruitment section in one of the most important section in the HR department. Because if done right, it will benefit the company with minimal loss of time and money. The process of the recruitment section starts with designing a man power plan for the whole company, along with a timeline to fill these vacancies. Then, identifying sources from which to get the applicants. They have different sources such as, References from current employees, web search, RCYCI fresh graduates, advertising and head hunting services. After the collect CVs from these sources, they start screening. After screening and selecting the people they see fit based on their CVs, they conduct a phone interview and set a date for the First interview. At the first interview, they evaluate his personality to see if he could adapt well at the organization or not. They will also give him a general test to evaluate his general knowledge. If he passed, they will set a second as final interview. At the final interview, the HR Manager and the manager of the department with job vacancies will conduct the interview to test his knowledge and validate his experience. If he passed the final interview, they will give him the job offer. Once he accepts the offer, they will give him the contract to sign. Then they will enter his data to the HR system and he will start working from the day they’ve set in the contract. As for the training process. At the beginning of each year, they set a trainingplanforthewholecompanyandforeverydepartment.They
conduct a meeting with heads of departments and evaluate the weak pointsoftheirdepartmentsandemployees.Aftertheymeet,theHR departmentwilldistributethetrainingprogramthroughoutthewhole year. There are two types of training in USC. The first one is in-house training.Inwhichemployeestraininthetrainingcenterinsidethe refinery. The second type is outhouse training, where employees go to training centers out of the company. After the training program ends, they check for attendance and distribute evaluation form for the trainees. They put the paperwork inside the training file and record all of the information inexcelsheet.Attheendoftheyear,theyevaluatehowmuchthe trainees have developed their skill. 2.HR Operations Section: ThissectioninvolvesalotofHRpractices.Thefirstthingthis sections deals with is Employee Relations. They start with entering the new employee in the system. They deal with vacations, handle medical insurance, they also give school fee for employees based on their grade. Theyalsocalculateovertimeandenterthedatainthesystem.They handlethepayrollsystem.Finally,theyhandleallofthegovernment relations. 3.Office Services: Thisdepartmentinvolvesalotofheadacheandresponsibilities. TheyhaveagivenbudgettohandleeverythingrelatedtoUSCfrom repairs, maintenance and buying new equipment. They have workers who
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workasmessengerstodeliverdocumentsbetweenUSCandother organizations. They also handle outsourced employees, such as janitors andteaboys.Oneimportantfunctionisthattheyworkwithsecurity companies to guard the company and its warehouses. Job Handled while Training in USC: 1.Iwasresponsibleaboutdistributing,collectingandsorting application and Coop forms from Coop Trainees. After that I entered all of their information in excel sheet. 2.Usedemployeedatasheettolinktrainingcertificateswith employees’ names and placed a copy in their files. 3.Handeladvertisingscreenswhicharedistributedintherefinery. Then recoded access cards to give to trainees. 4.Designed Pre-Assessment form for the training courses. 5.Made a number of surveys for USC (Recreational Lounge Survey, CoopTraineesEvaluationSurvey,EmployeeMoraleSurvey, Satisfaction of new employees Survey and Hiring Process Efficiency Survey) 6.Created a new excel sheet for the training section, including all the needed information for all of the employees. 7.Learnedhowtocalculateovertime,vacations,firing,attendance violations and GOSI. Then I was assigned to read Regulation of Work of USC. 8.Handled the search of new female applicants. Used BAYT.COM and my contacts to find a perfectly fit applicants. Then I called them and
arranged the interviews. Then I made an excel including all of the information needed of the applicants. 9.Designed a presentation about the annual gathering of USC. 10.Arranged and conducted interview for male applicants.
Chapter 3 Designing online recruitment page The online pages need to be designed in a proper manner so that it can help in increasing the identity of the brand in the market. The organization can help in getting the attention of the people due to the content that is available in the web page. An attractive content and visually presentable information will help in attracting the potential staffs towards the organization. It will also increase the number of visitors in the page, as people will be more attracted towards the page than to any other web pages. The visitors will be interestedinthepageandwillpurchasetheservicesthatisbeingprovidedbythe organization. The increase in the number of customers will help the organization, as they would gain a competitive advantage over the rival organizations that are present in the market as well. The details that will be available on the webpage has to be spaced in a proper manner so that the letters and the words can be viewed in a proper manner. This would help in eliminating the dangers that people may associate with the web page of the organization. It will also result in establishing a better relationship with the people, as they can communicate with the organization in a better manner. The people will be able to trust the organization in a better way by improving the services on the recruitment page as well. Better pay than the competitors Providing better pay to the staff members will help in attracting employees, as it will increase the stability of the organization in a competitive manner. The employees need to be provided with a better benefit and payment so that they can concentrate on the work and leave out the option to search for another alternatives that will provide a higher pay to them. This will help in increasing their participation within the organization so that the level of production can be increased within the organization. The stability in the payment methods of
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the organization will help in increasing the knowledge of the employees regarding the organizational policies and the opportunities that are available to them to be promoted within the system. The payment policy within the organization needs to be competitive by reviewing the payments that are being offered by the other companies within the same industry. The human resources personnel that are present within the organization needs to review the payment structure of the other organization on a periodical manner so that it can help them in providing the best payment structure to the employees. The employees will be able to accept the responsibilities within the organization in an efficient manner due to the increase in their payment than the other competitive companies that are present within the industry. It will also provide a better feeling to the employees, as they would feel motivated working within the organization with a better structure of payment. The imbalance between the work and the payment modes may lead to a lack in the structure of the organization along with no motivation for the employees. The organization will provide a better pay so that it can help in attracting the qualified employees within the organization and provide motivation to them as well. The staffs need to be provided with proper training methods so that it can help them in developing their skills and earn more incentives. These motivational tools will result in competing with the rival companies that are present within the industry so that it can result in increasing its competitive advantage as well. Paying in a competitive manner by the organization will help in increasing the equity in an external manner. It will help in differentiating between the employees who are working within the same organization at different levels in a proper manner. The jobs are mostly based on the salary that is being provided to the employees and the organization needs to take up
extra effort in encouraging the staffs so that they can remain motivated and increase the level of production within the organization. Defining the job position in a better manner Describing the position of the job in a better manner by the organization will result in finding the suitable candidates. It will help the organization in targeting the employees who are highly qualified in the employees market. The description of the job needs to be provided in a proper manner so that it can help the employees in understanding the exact position for which the company is hiring within its system. It is necessary for the organization to identify the needs of the organization so that the hiring process can be done in an efficient manner. The operations manager of the organization needs to identify the proper set of training that needs to be provided to the employees so that it can help in increasing their knowledge and skills within the organization. This can be done by providing them the training while working as well, which will provide the staffs a first-hand knowledge of the work that needs to be carried out by engaging within the work place. It will help the organization in saving the time and cost of recruiting people on a constant manner, as the proper description of the job will help in appealing to a certain section of people who are available within the market to apply for the job. The job description will provide the organization with an external tool of reference so that it can solve the disputes within the employees. It will also result in clarifying the expectation of the employees that are already present within the organization. It will allow the employees with proper points of references so that they can be provided with adequate training in those areas only for developing their skills within the organisation. It will also help in increasing the level of production of the employees within the system. The staffs will be provided with a better understanding of the role that they need to undertake within the organization as well.
Chapter 4: Data Analysis Focus group interview As the company uses basic recruitment procedure such as searching for CV’s online and considering employee referrals, it is time to improve the process of recruitment. The three methods selected for developing the recruitment process for the company are designing online recruitment page, pay better than the competitors do and properly defined key roles and responsibilities. The use of the three methods for improving the recruitment process is necessary, as this provided an opportunity for the business organizations to incur better profit and generate more revenue for the company. In order to determine the effectiveness of the three methods for improving the recruitment, focus group interview has been selected. The focus group interview included the HR recruitment manager, HR operations manager and the HR senior manager. Designing online recruitment page HRRecruitmentManager:AsaHRrecruitmentmanager,Ithinkdesigningonline recruitment page advisable. Recruiting through online recruitment page makes provides an opportunity for the company to allow hundreds and thousands of applicants along with saving time. I think the method is good because it saves time for the company, as they do not have to follow up the recruitment process manually. However, filtering the hundreds and thousands of applicants and selecting the best out of it without knowing them from beforehand is one of the bad impacts. Thus, designing online recruitment page is both bad and good for the company. HR Operation Manager:As a HR operation manager, it is my duty to ensure that the production of the company is up to the mark thereby, smooth running of the company. According to me, designing an online recruitment website is provides is good for the
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company, as the company is able to select worthy and deserving candidates from the thousands of applicants. The company gets the opportunity for selecting few from many thereby, providing them variety of options. However, considering the huge number of applicants, it is difficult to select the most appropriate one by seeing their inline application. HR Senior Manager:As the HR senior manager, I also think that designing online recruitment website has both positive and negative impact on the company. It is important for the company to have the appropriate work force in order to achieve the organizational goals and objectivessuccessfully.Thus, having acontinuousflowof applicantsallowsthe company with a variety of options. As a result, the company is able to take new applicants if there is any shortage of applicants and lack of talent in the existing workforce. Pay better than the competitors do HR Recruitment Manager:I think money attracts the candidates. That is why, as a recruitment manager, I prefer to offer higher and better pay to the applicants compared to the competitors pay in the market. This allows me to attract the talented applicants and recruit them for my company. However, spending such huge financial resources without knowing the abilities and expertise of the applicants is a gamble or risk that I have to take as an HR recruitment manager. My experiences highlight that at times this strategy of improving recruitment has paid off whereas at times it has backfired. HR Operation Manager:As a HR operation manager, I need ensure higher productivity for the company. For that, I second the opinion of paying better than the competitors pay. This allows me to the recruit the best talent in the market thereby, maximizing the productivity of the company. As I am paying higher, the experienced and talented applicants tend to come to my company first rather than availing the rest of the options in the market. However, I think
paying more than the competitors is a huge risk that we take, as the newly recruited applicants fail to deliver according to their pay. Our expectations remain unfulfilled. HR Senior Manager:As a HR senior manager, I have to ensure that the company is having the best and using the best for operating in the market. For that, I agree and support the management involved of paying more than the competitors in the market. This allows me to filter the best in the market and make them a part of the company. However, I think it is a huge risk that I have supported for taking my company higher without investigating much about the applicants. Properly defined key roles and responsibilities HR Recruitment Manager:I think it is important for the applicants to have a clear idea what they are signing in for. This is because this provides them with the opportunity of judging their suitability for the post that is advertised in the online recruitment page. As a HR recruitment manager, I personally see that the key roles and responsibilities are defined accurately and precisely for each of the positions. It is good to have properly defined key roles and responsibilities. However, there are always chances that the applicants are unable to understand and determine the specificity of the key roles and responsibilities that makes the recruitment process difficult. HR Operation Manager:Even I second the opinion of having clearly mentioned and explained key roles and responsibilities, as this allows the applicants to judge their suitability for the position we are recruiting for. This also allows me to ensure that the production of the company is maximized, as the people working for the company have in-depth understanding of their key roles and responsibilities. However, the bad of having properly defined key roles and responsibilities is that there are always chances that the applicants are unable to
understand and determine the specificity of the key roles and responsibilities that makes the recruitment process difficult. HR Senior Manager:As a senior manager, I also agree with the fact that the recruitment process can be improved by having clearly defined key roles and responsibilities. This is because the applicants are able to have in-depth understanding of their key roles and responsibilities. As a result, the company is able to achieve the organizational goals and objectives successfully and sustain in the competitive market. Conclusion The employees in USC are selected through a better planning structure so that the employees can be assigned the roles and responsibilities within their knowledge and skills. However, it was being seen that the training facilities within the organization were not sufficient. The employees are hired through proper screening of their curriculum vitae so that it can help the organization in gathering the best employees that are available in the market. The employees have to sign a contract after they have been selected in the company so that they can work in a proper manner. The training of the employees start after the evaluation of the weak points has been done by the company so that it can help in providing proper facilities in developing their skills. The employees are given all the facilities so that they can be assured of job security within the organization. This helps the employees in being motivated so that it can be beneficial for the company and the employees as well. The human resources department that is present within the organization deals with all the regulations and policies so that it can help in maintaining a better relationship with the employees. The salaries and other benefits of the employeesarehandledbythisdepartmentwithintheorganizationaswell.TheHR department within the organization is efficient but however the c0ompany is lacking in
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providing the training facilities in a better manner. The lack of the training processes has resulted in the loss of employees, which needs to be upgraded to a better method so that it can result in retaining the employees. This will lead to increasing the efficiency among the employees so that they can increase the level of production within the organization. Selecting CV from the other online sites would make options limited for the company as there are many other companies who apply the same process of short listing the CV from the online job sites. This is the reason the options become limited. The self-online page of the company will enable the company to have maximum option. The company has chosen the option of paying their employees better than the other companies, as it would enable the company to have interested and skilled employees. While recruitment the employees should be offered better scale of payment and attractive incentives that will attract those candidates who want to work seriously and they will be ready to give their full time. The last option that the company adopts is defining the key roles and responsibilities. While recruiting the concerned person should explain the roles and responsibilities to the employees so that they will have no confusion or else it would mislead the employees and they might get confused about their jobs after they join the organization. Therefore, these methods of recruitment might turn out to be an effective one. Recommendations Based on the identified problems, the suitable recommendations include: Having several steps in the online recruitment process In order to make the online recruitment process more effective, the company needs to include several steps. This will provide an opportunity for the company to filter the most appropriate applicants out of the many thereby, recruiting the best. In addition to, having several steps in the online recruitment process will also allow the company to verify the
authenticity of the details provided by the applicants. As a result, the fear of recruiting the non-deserving candidate is mitigated thereby, building and developing effective and efficient work force. User-friendly online recruitment website It is important for the company to design a user-friendly online recruitment website. Reducing the level of complexity or accessing the online recruitment website will provide an opportunity for the company to facilitate more and more applications. This is because the applicants will have to spend less time in understanding the website and the applying. As this is first time the company is using online recruitment website, the website is comparatively complex and time consuming to use. Thus, making it more user-friendly will facilitate the online recruitment process. Having 6 months’ probation period As the company is paying more than the existing competitors in the market are, it is wise for the company to use them resourcefully. As a result, having 6 months’ probation period is recommended. In these 6 months, the company and the management will be able to analyze the qualities and expertise of the candidate they have recruited. The management of the company will also be able to test the candidates’ qualities and expertise by putting them under several circumstances and judging their suitability. Providing an immediate supervisor As the company is recruiting a new candidate, it is essential to train them according to the operations of the company. In order to do so, providing an immediate guidance or supervisor to the employees to recommended. This will provide an opportunity for the candidates to seek help at any point of time thereby, identifying both their strengths and weaknesses. In addition to, thorough guidance will also allow the candidates to determine
whether they actually suit the position, they have been recruited for in the company. As a result, the company will be able to save finances in the long-term by not paying the unsuitable candidates. Providing hands-on training to the newly recruited employees Instead of providing formal training sessions to the newly recruited employees, it is recommended to provide hands-on training to the employees. As a result, the newly recruited employees will learn while fulfilling their job roles and responsibilities instead of attending training sessions only. This process is more effective, as the candidates will be able to identify the areas they need to improve within the company.