Chapter 01 1.1. Introduction Pakistan is blessed with enormous agri-resources, which may give competitive position, if adequately utilized. The dairy industry of Pakistan has experienced tremendous growth in last few years. The culture in dairy farming is improved due to new entrants of corporate players, new dairy products and latest technology installation. In this stage of agri-sector up-gradation, the policy makers have to better formulate the strategies and devise policies in the best interest of Pakistan economy. The literature across the world has taken a priority shift from land, labor and capital to human intellect, expertise and skills for better economic results. The continuous rising scarcity of resource and highly competitive market demand extraordinary human skills to efficiently utilize the resources. 1Prof Dr. Shahana Urooj Kazmi, Member Animal Sciences Division Pakistan Agricultural Research Council Islamabad, speaking on “Future of Livestock in Pakistan”, raised the following challenges for Pakistan livestock as: 1) Poor genetic & reproductive efficiency 2) Epidemics of infectious diseases 3) Lack of organized marketing 4) Small holders’ production system 5) Shortage (by 30%) of feed resources in quantity & quality 6) Unavailability of cheep credit to the livestock farmers Pakistan is rich in dairy sector, blessed with enormous dairy resources like good breed of milking animal, agriculture base, massive population and increasingly growing market. Pakistan is located at very strategic geographical place, and can exploit the mammoth export potential. Highly trained dairy professionals of dairy development department through their best HR practices can impact farmers, milk processors and performance of their own department. The wills of public sector for best HR services 1 Economic Survey of Pakistan 2006-2007 also positively signal to private sector and enable dairy development department to play pivotal role in the prosperity and growth of private sector. The effective HR planning can help the dairy officers to increase performance of private and public sector dairy industry and may contribute in overall economic and social goals of the country. Human resources in dairy sector, particularly on dairy farms of Punjab are nonsubstitutable resources. The entire sector employs both fulltime and part time employees because of less mechanization in the dairy farming. Even on sufficiently mechanized farms, competent and specialized human resource is highly needed, such as health management, vaccination, treatment, and assistance to calving cows. The passage of time and extensive developments in contemporary technologies make the machinery obsolete and demands drastic renovation. The study found that capable human resources keep the progress moving ahead, if they are regularly trained and continually educated. Progressive dairy managers often find themselves managing people as much or more than they manage animals and equipment. This dramatic change for dairy managers is very challenging, because most have little experience and no education in the management of critical human resources. This research is commissioned by Planning and Evaluation Department, Livestock and Dairy Development, Government of the Punjab to study the Human Resource Status and Practices in Public and Private Dairy Sector of Punjab. This research has been designed after a very detailed pilot-testing and thorough consultation with the stakeholders. Numbers of methodologies are opted including, focus group discussions, interviews, opinion surveys and field observations to comprehensively document the intended information. All the stakeholders, including farmers, professionals of dairy farms, professionals in dairy processing sector, L&DD officers, managers at planning level and policy makers of the dairy sector has actively participated in the entire process of the study. The five districts of the Punjab are covered in the research and field work as seemed priority areas by L&DD, Government of the Punjab. Both open-ended and close ended variables are used on self-constructed research instruments to capture the existing realities and meet the research objectives. The study proceeds with developing a strong rational for employing best HR practices in dairy sector of Punjab, highlighting the need and cause of such drastic initiatives. The research report offers extensive literary conversation of various authors of developing and developed world on HRM practices and organizational performance in dairy sector. This literature review shields light on the current situations of both part of the world, outline academic debate on the subject and critically examine the findings of different studies conducted in different point of regions. Finally, this research report develops and recommends policy guidelines for policy makers’ alongwith managerial implications and proposes future avenues of research. The study makes a significant contribution in the available literature and source of insights for the world of practices in dairy sector of Punjab. 1.2. The problem statement Due to less awareness of best human resource practices, the dairy sector of Punjab, Pakistan has been underutilized and uncompetitive in the world market. What are the best HR practices can improve the situation in public and private dairy sector, is the question, demands comprehensive research for answer. 1.3. The research The dairy sector is a labor intensive market, where human role is pivotal in all the centers of production and processes. The best HR practices, if introduced and implemented can make this sector highly productive, resource efficient and internationally competitive. The identification of current HR statues, best HR practices, gap with current practices and need for further planning related initiative raises the need of a comprehensive research. The research has tried to address the following issues: 1. What are HR policies, job descriptions and job specifications at various tiers of staffs in public private sector of Punjab? 2. What is the effectiveness and relevancy of HR policies? 3. What are the issues/limitations of HR practices and their overall impact on performance of dairy sector? 4. What are specific HR practices of dairy farmers, livestock professionals and milk processors? 5. What could be the benchmark model for best HR practices in dairy sector of Punjab? 6. What is the gap between in place and best HR practices? 7. What are the guidelines for TNA and performance appraisal system for HR practices? 8. What are the policy recommendations for making HR practices effective and efficient in public and private sector? 1.4. Significance of the research Government of the Punjab, Pakistan with the support of international agencies and local stake holders invest massive amount of money to develop the dairy sector. Livestock & Dairy Development Department of Punjab make tremendous efforts to improve the economic condition of this sector and bring prosperity to the stakeholders. Only developed human resource can ensure the valued outcome of these efforts. The analysis of the best HR practices and guidelines of implementation can help to gain the desired results. The research findings may help the policy makers to prioritize the areas of immediate concern and invest public resources in line with the local needs. The research may help the private public sector to make the dairy sector a sustainable, competitive and high growth sector by employing best HR practices. 1.5. Scope of the study This project aims to conduct a comprehensive research in dairy sector of Punjab. Due to the multidimensionality of the HR nature, the subject covers various interdisciplinary aspects of HR in private and public sector dairy organizations. In response to this variety of HR, a multi-perspective approach is planned to analyze the HR practices through various dynamics of dairy sector of Punjab. The outcome of the study will serve the multipurpose tasks of implementation and help policy makers to have holistic view the issue. The research has covered the following areas of concern: o Current HR statues The study highlights the sorts of HR practices prevail in this sector and kind of forces are driving to these norms. The analysis of current practice may help in understanding the existing patterns and overall scenario of human resource management issues in dairy sector of Punjab. o Best practices The Punjab dairy sector by following identified best HR practices model, with essential modifications can bridge the gap between local and internationally accepted model. The research has brought forward the summary of best HR practices, could be tested in the local environment of dairy sector. o Job description and job specification The best practices can bring valued results, if incorporated in the job description and job specifications of dairy professional/officers of Punjab. The study has made this significant attempt and developed job description and job specifications, which may help the officers to act on best HR practices. o Training and development The trainings of dairy professionals consume huge budgets of livestock and dairy development department, Government of the Punjab. The spending of such mammoth amount could be at risk, if training modules are launched without adequate research. This research made an effort to highlight the exact training needs of dairy professionals. The research based training programs will add high values to the training and intensify its impact on the stakeholders, especially the farmer of the Punjab. o Performance appraisal system The major aim of training is to improve the performance of human resource working in dairy sector. The performance appraisal needs to identify different performance indicators for various dairy professionals working in different capacities. It is important to develop a yard stick to measure performance of HR working in organizational hierarchy. The research has also touched the performance appraisal systems and proposed effective guidelines to formulate it. This research has proposed a research based performance management system for dairy sector of Punjab. Chapter 02 2.1. Research Design and Methodology This is an exploratory research providing in-depth analysis of HR practices in the private and public dairy sector. This design is selected to explore the insights of dairy sector and propose effective planning. Primary data is collected through survey questionnaires, exploring the best HR practices. The study also included in-depth interviews from the management of public sector dairy department, senior officers, dairy professionals and farmers. Focus group discussions (FGD) were also conducted for the sake of data collection. 2.2. Sample design Our target population is employees of public and private organizations of dairy sector of Punjab, at different management levels (higher to lower). Sampling frame constitutes list of all public and private organizations in dairy sector, dairy processors and small farmers. Respondents were selected by using two-stage cluster sampling. In the first stage an organization was targeted and then employees from different cadres were selected for data collection. Data was collected from eight key districts of Punjab, which are rich in producing the dairy products. Chart given below (also Table P1, Appendix) represents the distribution of respondents in each district and geographically sampling coverage. There were 110 of the employees were from public sector employees, and 57 respondents who were employees at private sector organizations/dairy processors. Study also collected from 55 dairy farmers. Chart in the appendix represents the respondent’s distribution from both sectors. Table P2 (appendix) shows that 29.1 % respondents had education till BA/B.Sc level and 26.4% respondents got education till Masters level. Only 2 % had educated till PhD Level. So it shows that most of the target respondents working in public and private dairy sector were graduated. Table P3 (appendix) gives figures, which show that 39.6% of the respondents having 5-9 years of experience in their respective field. While 22.1 % of the respondents are found having 10-15 years of experience in their respective field. Only 9.1 % had 1620 years experience in their field. Table P4 (appendix) shows income groups of the respondents. About 14% sampled dairy professionals earn up to 9,000/month. The largest bracket of 59.5% respondents are earring Rs.10,000 to 29,000 thousands per month, 21.6 % of the respondents are earning Rs. 30.000 to 49,000 per month. The dairy professionals, who earn about Rs. 50,000 to 79,000 per month, are 4% and only 1.4 % of the respondents were earning Rs. 80,000 to 99,000 per month. Table P5 (appendix) presents the over all age of people participated in the study. Around 60% of respondents having age range 25-36 years. Almost 25.2 % of respondents belong to 40-49 years age bracket and 7.1 % of the respondents were in the 50-60 years of age group. Analysis shows that most of the respondents belong to 25-39 years. 2.3. Research instruments and data collection Three types of instruments were used for data collection. o Survey questionnaire o Focus group discussions o Interviews Data was collected through instruments specifically designed after pilot testing and thorough consultation. IRP dedicated field teams were allocated for this core assignment. Separate teams for data collection were trained to conduct surveys in eight districts. IRP quality assurance cell ensured the quality of gathered data through different instances of time. Focus groups discussions were observed tightly for correct direction of findings. All of data collection activities were strictly monitored. 2.4. Analysis Questionnaires were coded and data was entered in SPSS version 16. Data was cleansed and cross checked. Data analysis and tabulation was generated by SPSS. As per scope of the study cross tables, exploring a sector wise comparison of facts were generated and interpreted Chapter 03 3.1. Review of Literature; HRM practices The concept of human resource management (HRM) has been paid wide attention in both scholarly and practical world. The last decade has experienced extensive expansion in the concept of HRM, emerging into many disciplines and covering numerous dimensions. The HRM literature has put great deal of concern to the HRM practices, evolved in business organizations. The set of practices (selection, training, communication, evaluation, compensation, occupational health and safety) that the managers employ to ensure quality performance is known as human resource practices (Dessler, 2003). The academics have also tried to investigate the impact of these HRM practices on the performance of business organizations. Park, et al. (2003) examines the relationship between human resource management (HRM) practices and firm performance and their affect on organizational outcomes. The performance of organizations of various sectors like automobile, petrochemical, banking and diary sector is largely associated with the best practices of HRM. The impact of HR practices is revealed positive effect on organizational performance, particularly plays significant role in performance perceived by employee (Sajid & Munir, 2008). The dairy sector performance is contributed by HRM practices, but results vary across the countries. The developed countries in dairy sector retrieved better results due to advancement in used technology, better professional qualification, more conducive working environment and friendly HR policies. The discussed scenario raises the need of comprehensive research, which may outline the comparative position of private and public sector dairy organizations. The association of competitive edge if found in the private and public sector dairy businesses may produce fruitful learning to the practitioners of dairy practices. The proposed research will also attempt to investigate the underline hindrance related to HRM practice, which negatively contribute in the organizational performance of dairy sector in developing countries like Pakistan. The most challenging areas in Pakistan’s livestock sector are lack of proper infrastructure, quality assurance, marketing system & specialized human resources (Zia, 2007). 3.2. HR in Dairy Sector; Research Findings The comparative situation of role of HRM practices in the organizational performance of dairy sector across the private and public sector will make a valued addition in the performance of Livestock and Dairy Development Department, Government of the Punjab. “The last few years have witnessed that increasing complexity in the dairy business makes it vital to have talented employees in every position to achieve strategic and tactical tasks. Although it is important to hire competent, motivated, industrious employees, but producer often do not place a high priority on HRM practices” (Brasier, et al. 2006). The skills and knowledge requisite to employment on a dairy farm are diverse. The various types of farms and employees should be specialized in different tasks, such as health care management, milking, feeding etc. Brasier, et al. (2006) suggest HRM practices like “employees training should focus on communication, supervision and employee management, problem-solving, and computer skills for managers on dairy farms to improve the productivity. It has been demonstrated in study that relationships between organizational performance and HRM practices are complex and not always positive in dairy industry” (Stup, et al, 2006). “There is call for of HRM practices including on-farm training, skill development and career development planning which ultimately lead to more stable, satisfied, motivated and industrious human resource for dairy sector” (Nettle, et al (2000) . “The use of continuing training was associated with a difference in the Return on Equity of dairy farms which is one of organizational performance indicator” (Stup, et al. 2006). “This has been reflected by study that the HR practices and firm outcomes are mediated by employee skills, attitudes and behaviors with lot of variation in different national context and finding qualified and skilled employee, is the most widespread post-expansion HRM issue”. (Park, et al. 2003; Hadley, et al.2002). “It has been observed in empirical investigations that differences in HRM practices exist in organizations operating in different countries but literature on comparison of a comprehensive list of HRM practices among countries are lacking” (Ahmad & Schroeder, 2003). “This is often taken to support the view that it is challenging for dairy managers to retain trained human resource, which is only possible through HRM practices including job security, higher compensation, and benefit packages, health care insurance and good interpersonal relationships that lead to their immobility” (Mugera & Bitsch, 2005). “Sound human resource management practices such as performance bonuses, performance reviews and feedback, and standard operating procedures allow farm managers to improve the human capital, and profitability, on the farm” (Hyde, Stup and Holden) There has been need to carry out empirical investigations to test and quantify relationship between HR practices and performance of dairy industry in both public and private sector. The above-described research findings propose many claims, to be verified in the case of Punjab dairy sector through this undertaken research. 3.3. Training in Dairy Sector; Research Findings The motivation and commitment for high performance is largely associated with training of dairy officers and farmers. This training varies in terms of lecturing, field work, on job experience with supervisor and demonstration of best practices. The training serving the common objectives of trainee and organization leads to better work loyalty and dedication. “Education is defined as systematic schooling or instruction in preparation for life or some particular task. Vocational education is the systematic instruction associated with a particular employment, trade, or profession. Training is defined as. The process of bringing persons to the desired state or standard of efficiency, by instruction and practice” (Crawford, 1987). Crawford,(1987) has carefully demonstrated the characteristics of training and development in dairy sector as; “Training programs must be carefully prepared for individual requirements but they will be prepared around one or more of the following: training in knowledge (e.g., safety regulations, legislation, product knowledge), training in manual skills (e.g., machine operating, cheese packaging, laboratory analysis), training in social skills (e.g., supervisory duties, contact with people such as milk producers), training in attitudes (e.g., developing an interest in work; developing an awareness of safety and hygiene requirements), training in systems (e.g., office procedures, production records)” The employee working in dairy sector organization deserves competitive status of care, attention, career development and growth provided in other sectors/organizations. “Employees are the most important asset on dairy farms. Employee management may represent the greatest challenge on dairy farms. Different skills are needed to effectively work with employees compared to overseeing the milking herd or cropping program. Dairy producers must possess or develop excellent communication skills to be successful employee managers”. (Bailey, 2001) The extension activities in Pakistan are not adequately effective with less emphasis on R&D performance at farm level. There is dire need of training for milk producer to impact the performance of dairy sector of Punjab. (Wynn, et. All, 2006) Chapter 04 Discussion and Analysis o 4.1. Findings; Current HR status 4.1.1. Hiring Process in private and public dairy sector Sector Table 4.1.1. Methods of Hiring Independent HR department Through owner Through admin/Management Public Private Frequency 0 26 % 0.00% 47.30% Frequency 1 23 % 1.00% 41.80% Frequency 99 5 % 99.00% 9.10% Frequency 0 1 % 0.00% 1.80% Frequency 100 55 % 100.00% 100.00% Through selection board Total Table 4.1.1. gives a picture of revealed insights that an independent HR department and owner conduct the hiring process in dairy related private sector. Almost all of the employees from public sector answered that hiring is done through admin/ Management, while on the other hand in private sector hiring is performed by independent HR department or through owner (47.3% and 41.8%). Table 4.1.2. Channels of recruitment in private and public dairy sector Sector Table 4.1.2. Various channels in recruitment Recruitment agencies Universities placement offices Newspaper job advertisements Personal references networking E_Recruitment Total Public Private Frequency 2 0 % 2.00% 0.00% Frequency 0 8 % 0.00% 15.10% Frequency 94 24 % 94.00% 45.30% Frequency 4 19 % 4.00% 35.80% Frequency 0 2 % 0.00% 3.80% Frequency 100 53 % 100.00% 100.00% Table 4.1.2 explains about the recruitment channels in public and private sector.94 % respondents from public sector replied that newspaper advertisement channel is the main channels for recruitment while 45.3% respondents from private sector had the same view. Further 35.8 % private sector respondents said personal references networking is another channel for selection, followed by university placement office. Public departments seem ignoring the importance of relationship with university offices to attract highly potential graduates. 4.1.3. Job specifications gap in private and public dairy sector Sector Table 4.1.3. Areas of gaps in job specifications Private Frequency 31 % 48% Frequency 13 % 20% Technical Skills Professional Skills Communication Skills Management Skills Total Frequency 6 % 9% Frequency 14 % 22% Frequency 64 % 100.00% As per table 4.1.3. , the respondents were inquired about identification of major gaps in the job specification. no respondent from public sector responded. This lead to the assumption that public sector has not paid attention towards gaps in job specifications and staff is highly afraid of logic behind the mentioned areas. Contrarily, 48% responses from private sector show the gap in technical skills, followed by management and professional skills. Public sector authorities need to pay attention to staff’s existing skills and written job specifications. 4.1.4. Impact of recruitment procedures on performance in private and public dairy sector Sector Table 4.1.4. levels of recruitment impact on performance Very strong Strong No opinion Weak Total Public Private Frequency 4 5 % 4.00% 9.30% Frequency 61 19 % 61.60% 35.20% Frequency 27 30 % 27.30% 55.60% Frequency 7 0 % 7.10% 0.00% Frequency 99 54 % 100.00% 100.00% Table 4.1.4. illustrates about perceptions about recruitment impact on their performance. We can see that 61.6% from public sector perceive the impact of recruitment procedure on their personal performance. In private sector, less amount (35.2%) of the employee view impact of recruitment on performance. Around 27% from public sector and 56% of private dairy sector employee provided no opinion in this context, which points out lack of recognition of impact and low interest. 4.1.5. Recruitment selection methods in private and public dairy sector Sector Table 4.1.5. Methods of recruitment Interview Test Group discussion Presentation Other Total Public Private Frequency 29 49 % 54.71% 92% Frequency 23 4 % 43.39% 7.5% Frequency 0 2 % 0.00% 3.8% Frequency 1 0 % 1.88% 0.00% Frequency 0 1 % 0.00% 1.88% Frequency 53 53 % 100 100 Total 148 27 2 1 1 153 The statistics of table 4.1.5. provide evidence of both interview and test as selection method, used in public and private sector. However, private dairy sector rely more on (92%) interviews and public sector dairy departments use mix approach of interview (55%) and test (43%) as candidate selection method. 4.2. Findings; Training and Development 4.2.1. Status of TNA in private and public dairy sector Sector Table 4.2.1 Frequency of TNA Public Private Total Frequency 39 37 76 Regularly % Frequency 39.0% 68.5% 49.4% 44 2 46 Options of off and on % responses Frequency 44.0% 3.7% 29.9% 17 15 32 No % Total Frequency % 17.0% 27.8% 20.8% 100 54 154 100.0% 100.0% 100.0% Table 4.2.1. figured out absence of TNA in 20% sampled organization/departments and around 30% do it off & on. Almost 50% respondents reported regular TNA in their job palace of diary sector. Table further illustrates the carrying out training need assessment (TNA) process in both sectors. 68.5% of the private sector respondents said that TNA is conducted regularly in their organization while 39% of the respondents from public sector revealed the same. It is noteworthy to mention that 44% of the respondents said TNA is conducted on the “off and on” basis, which shows inconsistency in TNA in public sector dairy department. It is clear from the above table private sectors have more effective and systematic process to conduct TNA as compared to public sector. 4.2.2. Methods, used in conducting TNA in private and public dairy sector Sector Table 4.2.2. Various methods TNA Public Private Employees themselves Frequency % Response options Training manager Third party assessment 24 16.0% 18.6% 16.8% 1 6 7 % 1.0% 14.0% 4.9% Frequency 18 24 42 Frequency % Total 8 Frequency % Other 16 Total Frequency % 18.0% 55.8% 29.4% 65 5 63 65.0% 11.6% 44.1% 100 43 143 100.0% 100.0% 100.0% Table 4.2.2. is an analysis of method to identify TNA in both private and public sector. 55.8% of the respondents from private sector express that third party assessment/evaluation is used in their organization, followed by employee assessment (18%) and training manager (14%). While 60% of the respondents from public sector say that some other methods; non specific are used to identify TNA, followed by employee own assessment and third party need assessment. Analysis of the table shows that most of the dairy sector organizations conduct TNA, but in public sector a non-specific methods is largely used. 4.2.3. Methods, used in employee training in private and public dairy sector Sector Table 4.2.3. Various training methods In house Training On the Job Training E-Training Simulation/ Role play Others Total Public Private Frequency 37 36 % 50.70% 49.30% Frequency 76 15 % 83.50% 16.50% Frequency 1 0 % 1% 0.00% Frequency 0 2 % 0.00% 100% Frequency 17 2 % 89.50% 10.50% Frequency 100 43 For the Table 4.2.3. the responses were collected in the favor of on job training out of which 83.5% employees responded yes from public and only 16.5% responded yes from private sector. This table shows that out of 73 responses against in-house training both sector respondents responded almost equally (50.7% and 49.3%). In public sector some of the respondent extracted that other training methods are also used. The statistics indicate the high rate of on-job training in public sector organizations in dairy sector. 4.2.4. Training areas of high need in employee training in private and public dairy sector Sector Table 4.2.4. Areas of training needs Frequency Professional Skills Personality development Management Skills % Frequency % Frequency Public Private 59 26 69.40% 30.60% 18 4 81.80% 18.20% 59 18 % 76.60% 23.40% Frequency Technical Skills Other % 74 69.80% 30.20% Frequency % Total 32 12 2 85.70% 14.30% Frequency 100 43 This table 4.2.4. presents very interesting figures of comparison between public and private dairy sectors. Private sector dairy professionals demand professionals and technical skills trainings followed by managerial and personality. High response in the areas of professional skills, Management skills and Technical skills shows that they are much needed with high response in public sector organizations. 4.2.5. Improvements in trainings in private and public dairy sector Sector Table 4.2.5. Areas of improvement in training Public Private Total Frequency 69 7 76 % 90.8% 9.2% Frequency 58 12 % 82.9% 17.1% Frequency 90 19 % 82.6% 17.4% Frequency 51 4 % 92.7% 7.3% Frequency 22 4 % 84.6% 15.4% Frequency 100 30 Duration of Training 70 Trainer's Competencies Response Training contents and Options topics 109 55 Training facilities 26 Other Total Percentages and totals are based on respondents. a. Dichotomy group tabulated at value 1. 130 This table 4.2.5. presents the areas of improvements in training conducted by dairy organizations of private and public sector. The majority of respondents recommended improvements in contents and topics of training, in which public sector emphasis is significantly higher (82%) as compared to private sector (18%). The similar trends has been observed in other response options like duration of Training, Trainer's Competencies and Training facilities, where public sector employees showed high concerns and deep interest for the improvement of trainings. Private sector dairy professionals only voted for contents and competencies of training, to be improved. 4.2.6. Sources used in trainings in private and public dairy sector Sector Table 4.2.6. Training sources Public Private Total Frequency 1 16 17 % 1.0% 28.1% Frequency 0 7 % .0% 12.3% Frequency 75 12 % 75.0% 21.1% 3 21 Multiple sources Independent training Response Options department through immediate supervisor Through external training Frequency 7 87 24 agencies % 3.0% 36.8% Through Frequency 17 0 % 17.0% .0% Frequency 4 1 % 4.0% 1.8% Frequency 100 57 157 % 100.0% 100.0% 100.0% universities/Institution 17 5 Other Total Table 4.2.6. explains the different training sources, used for employee trainings within the public and private sector. Training by immediate supervisor is reported, largely by public sector employees. In private sector, external professional agencies are hired, followed by multiple sources used for training. Public sector focuses on internal supervisor or universities as a source of training. It is very clear that most training sources in the public sector are not very much independent in nature and therefore affects the effectiveness and quality of training programs. 4.2.7. Frequency of trainings held in private and public dairy sector Sector Table 4.2.7. Frequency of trainings Public Private Total Frequency 1 1 2 % 1.0% 2.0% Frequency 25 20 % 25.3% 39.2% Frequency 2 10 % 2.0% 19.6% Frequency 10 2 % 10.1% 3.9% Frequency 61 18 % 61.6% 35.3% Frequency 99 51 150 % 100.0% 100.0% 100 Monthly Response 45 Quarterly Options 12 Biannual 12 Annual 79 Not frequently Total Table 4.2.7. explains about the time schedules of training programs conducted in both public and private sector. About 50% people reported absence of time schedules and infrequent arrangements of training workshops. However, around 30% participants reported quarterly schedule of workshop, which again more scored by private sector as compared to public sector. Very few people have told about monthly and biannual workshops. The results show that training culture is yet to be established in both private and public sector dairy organization, however, private sector is ahead of public sector in arranging training events for the employee. 4.2.7. Impact of training on performance in private and public dairy sector Sector Table 4.2.7. Levels of training impact Public Private Total Frequency 63 25 88 Very strong % Response Frequency Options 63.0% 47.2% 57.5% 35 13 48 Strong % Frequency 35.0% 24.5% 31.4% 1 14 15 No opinion % 1.0% 26.4% 9.8% Frequency 1 1 2 % 1.0% 1.9% 1.3% Frequency 100 53 153 Weak Total % 100.0% 100.0% 100.0% Table 4.2.7. shows the analysis for perceptions of respondents towards impact of trainings from private and public sector. Around 60% people said very strong and 30% said strong impact of trainings. Respondents of public sector are more convinced with the effectiveness of trainings (63% & 35%) and its impact on performance of employee. Private sector dairy employee follow public sector (47% & 24%) in their reporting of training impact. Public sector dairy staff is more concerned with trainings due to less other opportunities of personal development and growth, available in private sector. o 4.3. Findings; Job description and job specification 4.3.1. Knowledge employee about job description in private and public dairy sector Table 4.3.1. Levels of Knowledge of job Sector description Responses Yes To some extent No Total Public Private Frequency 100 51 % 100.0% 91.1% Frequency 0 2 % .0% 3.6% Frequency 0 3 % .0% 5.4% Frequency 100 56 % 100.0% 100.0% Table 4.3.1. reveals the knowledge of respondents about the formal job description. All of the respondents in public sector, and 91.1% from private sector have reported their knowledge about formal job description. The statistics indicate more HR disciplinary practices in public sector, because of established regularity procedures. 4.3.2. Providing formal job description to employee in private and public dairy sector Sector Table 4.3.2. Provision of job description Responses Yes Not yet No Total Public Private Frequency 99 26 % 99.00% 46.40% Frequency 1 26 % 1.00% 46.40% Frequency 0 4 % 0.00% 7.10% Frequency 100 56 % 100.00% 100.00% Almost all of the public sector employees were provided with their formal job description while on the other hand only 46.4% of the employees from private sector are provided with their job description. Same number of respondents from private sector said that they may get it soon, but so far they are not provided with the formal job description. The table 02 also presents good picture of HR status in public sector department of dairy sector. 4.3.3. Revision of JDs after recruitment in private and public dairy sector Sector Table 4.3.3. Revision of JDs after recruitment Never revised 6 to 12 months ago 1 to 3 year ago 3 to 5 Years ago More than 5 years total Public Private Frequency 31 30 % 31.30% 56.60% Frequency 0 8 % 0.00% 15.10% Frequency 34 11 % 34.30% 20.80% Frequency 26 0 % 26.30% 0.00% Frequency 8 4 % 8.10% 7.50% Frequency 99 53 % 100.00% 100.00% Table 4.3.3. shows the frequency of revision in the job description after recruitment of an employee in both public and private sector. 56.6% employees from private sector revealed that their job description was never revised after their recruitment while only 31.3% employees from public sector answered the same. This is worth to note that most of the employees from public sector admitted that their job description was revised in last 1 to 3 and 3 to 5 years (34.3% and 26.3%). Above table shows the frequency of revision in different back time periods for both sectors. Public sector has more tendencies of revision but after longer time of average 3 years. Contrarily private sector in dairy business observe less frequency of revision, but make revisions in shorter period of time; one year averagely. 4.3.4. Perception of employee about effectiveness of JDs in private and public dairy sector Sector Table 4.3.4. Perception about JDs effectiveness Very ineffective Ineffective No Opinion Effective Very effective total Public Private Frequency 2 2 % 2.00% 5.00% Frequency 11 0 % 11.00% 0.00% Frequency 18 8 % 18.00% 20.00% Frequency 65 27 % 65.00% 67.50% Frequency 4 3 % 4.00% 7.50% Frequency 100 40 % 100.00% 100.00% The table shows the responses from employees in both sectors. Respondents from both sector provided with varied experience of their job description. In public sector about 11% employee perceive their JDs as ineffective, while 0% of the private sector employee responded to the same option. Almost 8% of private sector people see the JDs a very effective, and in public sector this rate has dropped to 4%. The public sector, although practice more culture of JDs, but need drastic efforts to make it very effective and relevant. 4.3.5 The need of JD improvement in private and public dairy sector Sector Table 4.3.5 The levels of need in JD improvement Very much needed Needed No Opinion Not Needed Absolutely not needed total Public Private Frequency 20 4 % 20.20% 9.50% Frequency 13 7 % 13.10% 16.70% Frequency 28 12 % 28.30% 28.60% Frequency 38 15 % 38.40% 35.70% Frequency 0 4 % 0.00% 9.50% Frequency 99 42 100.00% 100.00% % Table 4.3.5 provides the statistics of felt need about job description in public and private dairy sector. 20.2 % from public and 13.1% from private sector respondents are agree with the understanding that their job description highly need improvements. The response of regarding JDs improvement as “absolutely not needed” is rated by 0% from public sector and 10% from private sector. These statistics reinforce the early findings that employee of public sector demands more improvements in JDs. 4.3.6 Perception of JDs impacts on employee's performance in private and public dairy sector Sector Table 4.3.6 Perceived impacts JDs on performance Yes To some extent No Total Public Private Frequency 87 29 % 87.00% 53.70% Frequency 13 19 % 13.00% 35.20% Frequency 0 6 % 0.00% 11.10% Frequency 100 54 % 100.00% 100.00% This table presents the data about perceived impact of JDs on employee’s overall performance. 87% of public sector employees revealed that job description impacts their performance. The comparison of both sectors shows that 87% employee of public sector and 53% of private sector agree with the impact of JDs. None of the public employee responded in “No”, while 11% of private sector showed disagreement for perceived impact. It reveals that employees performance have greater impact on public sector employees as compare to private sector. 4.3.7 Difference between JDs and actual duties in private and public dairy sector Sector Table 4.3.7 Level of Difference between JDs and duties Big difference Slight Difference No opinion No difference Absolutely no difference total Public Private Frequency 3 0 % 3.00% 0.00% Frequency 68 2 % 68.00% 4.00% Frequency 5 7 % 5.00% 14.00% Frequency 24 17 % 24.00% 34.00% Frequency 0 24 % 0.00% 48.00% Frequency 100 50 % 100.00% 100.00% According to table 4.3.7, employees from both sectors revealed totally different responses when inquired for “Difference between formal job description and actual duties and responsibilities”. Public sector employees responded that there is a difference while private sector employees were in the favor of the statement that there is no difference in designed JDs and assigned duties in actual. This fact clears an understanding that public sector employees were provided with the formal job description but they do not follow that when actually performing their duties. 4.3.8 Providing formal job specifications (JSs) in private and public dairy sector Sector Table 4.3.8 Provision of formal job specification Yes Not yet No Public Private Frequency 85 27 % 85.00% 48.20% Frequency 14 28 % 14.00% 50.00% Frequency 1 1 % 1.00% 1.80% Table 4.3.8 shows that 85% of the employees from public sector were provided with the formal job specification, while in private sector only 48.2% of the employees were provided with the same. These results show that private sector has lag in their job specification practices or pay less attention to formulization of job specification to large extent. . 4.3.9 Revising JSs after employee’s recruitment in private and public dairy sector Sector Table 4.3.9 Revision of JS after recruitment Never revised 6 to 12 months 1 to 3 years ago 3 to 5 years Public Private Frequency 29 30 % 29.30% 56.60% Frequency 1 10 % 1.00% 18.90% Frequency 34 7 % 34.30% 13.20% Frequency 25 2 % 25.30% 3.80% More than 5 years Total Frequency 10 4 % 10.10% 7.50% Frequency 99 53 % 100.00% 100.00% Table 4.3.9 reveals that 56.6 % of respondents from public sector said that JS after recruitments was never revised while 29.3 % from public sector reported that JS was never revised. Respondents from public sector revealed that their job specification was revised but most of the employees from private sector revealed about no revision. However, private sector dairy organizations experience shorter time of revising job specifications as compared to public sector dairy departments. 4.3.10 Employees perception for effectiveness of job specifications in private and public dairy sector Sector Table 4.3.10 Effectiveness of job specifications Very ineffective Ineffective Effective Very effective Total Public Private Frequency 1 2 % 1.00% 5.10% Frequency 16 0 % 16.00% 0.00% Frequency 64 23 % 64.00% 59.00% Frequency 6 3 % 6.00% 7.70% Frequency 100 39 % 100.00% 100.00% According to statistics of table 4.3.10, most of the employees from both sectors perceive their job specification effective. The slight difference exists between two sectors as private sector dairy organizations ensure more effectiveness in their job specifications as compared to public sector departments. 4.3.11 Impact of JSs on employee's performance in private and public dairy sector Sector Table 4.3.11 Level of impacts of JSs on performance Yes To some extent No Total Public Private Frequency 86 31 % 86.00% 59.60% Frequency 14 20 % 14.00% 38.50% Frequency 0 1 % 0.00% 1.90% Frequency 100 52 % 100.00% 100.00% Table 4.3.11 reports that all of the respondents from public sector and about 98% from private sector think that job specification has impact on their performance. But the intensity of improvement need lies more with employee of private sector as compared to public sector due to greater shown impact. 4.3.12 Gap between formal JSs and actual duties in private and public dairy sector Sector Table 4.3.12 Levels of gap between formal JSs and actual duties Big difference Slight difference No difference Absolutely no Public Private Frequency 4 2 % 4.00% 3.90% Frequency 68 4 % 68.00% 7.80% Frequency 23 16 % 23.00% 31.40% Frequency 0 23 difference Total % 0.00% 45.10% Frequency 100 51 % 100.00% 100.00% Table 4.3.12 shows that respondents from public sector were in the favor that their formal job specification and actual duties are different while most of the private sector employees responded that formal JS and their actual duties matches and there is no big difference. 4.3.13 Gap between university given skills and job demanded skills in private and public dairy sector Sector Table 4.3.13 Level of gap between university skills and job demanded Yes To some extent No Total Public Private Frequency 79 12 % 79.00% 27.30% Frequency 20 25 % 20.00% 56.80% Frequency 1 7 % 1.00% 15.90% Frequency 100 44 % 100.00% 100.00% Table 4.3.13 (79% + 20%) of the respondents from public sector responded that university given skills and job demanded skills are different. There is slight different in the opinion of private sector, as only 16% employees revealing that there no difference between the university given skills and job demanded skills. This may be because in public sector, employees are not working according to their job description and specifications. The statistics are quite alarming for the university administration as more 85% people of both sect view quite difference between given skills by institutions and actual skills demanded in practical life of dairy sector. 4.4. Performance appraisal and management 4.4.1 Availability of Performance Appraisal and Management in private and public dairy sector Sector Table 4.4.1 Availability of Performance Appraisal system Public Private Total Frequency 83 38 121 % 83.0% 71.7% 79.1% Frequency 17 11 28 % 17.0% 20.8% 18.3% Frequency 0 4 4 % .0% 7.5% 2.6% Frequency 100 53 153 % 100.0% 100.0% 100.0% Yes Response Options To some extent No Total Table 4.4.1 explains about the in practice performance appraisal and performance management system in both public and private sector. It is very clear from the table that majority of respondents from both public and private sector replied that they have performance appraisal and management system. Only 29% people reported that they do not find fully implemented performance appraisal and management systems in their organizations. 4.4.2 People responsible for performance appraisal in private and public dairy sector Sector Table 4.4.2 Authorities of performance appraisal Public Private Total Frequency 100 34 134 % 100.0% 77.3% 93.1% Frequency 0 2 2 % .0% 4.5% 1.4% Immediate supervisors Response Options Peer appraisal Frequency 0 1 1 % .0% 2.3% .7% Frequency 0 7 7 % .0% 15.9% 4.9% Frequency 100 44 144 % 100.0% 100.0% 100.0% Rating committee Self rating Total Table 4.4.2 describes appraising authority in both public and private sector dairy organizations. A very clear analysis shows that respondents from both public and private sector agreed on their immediate supervisors as responsible for performance appraisal and performance management. Private sector reported slight incline towards other practices such as peer appraisal, rating committee and self-rating. The planning managers should urge both sectors to introduce other approaches to incorporate opinions of other authorities in employee’s performance appraisal. Employee also be given right to report his appraisal, which could be cross-checked by other colleagues. 4.4.3 Methods for performance appraisal in private and public dairy sector Sector Table 4.4.3 Different Methods for Performance Appraisal Annual Confidential Report Response Options Performance appraisal Public Private Total Frequency 100 1 101 % 100.0% 2.4% 71.1% Frequency 0 34 34 % .0% Frequency 0 6 6 % .0% 14.3% 4.2% Frequency 0 1 1 % .0% 2.4% .7% Frequency 100 42 142 % 100.0% 81.0% 23.9% Self appraisal Others Total 100.0% 100.0% Table 4.4.3 reports different methods, used in for performance appraisal and performance management in both public and private sector.100 % public sector respondents revealed that their department uses ACR method for employee appraising. There is no other method of HR practices used in performance appraisal of dairy sector staff of public sector. Contrarily, 81% of respondents from private sector reported use of performance appraisal and 14% told about self appraisal as instrument of performance management and appraisal. Public sector departments are advised to think about other options of this area to correspond to the changing needs of dairy sector of Pakistan. 4.4.4 Departments, assigned for performance appraisal in private and public dairy sector Sector Table 4.4.4 Department for Performance Appraisal Response Public Private Total Frequency 0 21 21 % .0% 42.0% 14.0% Frequency 0 23 23 % .0% 46.0% 15.3% Frequency 100 6 106 HR department Options Owner Admin % Frequency 100.0% 12.0% 100 50 70.7% 150 Total % 100.0% 100.0% 100.0% Table 4.4.4 identifies the key operational departments, assigned for performance appraising in public and private sector dairy organizations. All of the respondents from the public sector reported that their admin departments/admin managers only conduct performance appraisals for them. 46 % respondents of private sector said that their owner conduct the performance appraisal while 42 % said that their HR department conducts the performance appraisal. The statistics clearly indicate absence of HR systems and procedures in public sector departments and organizations, owned by sole proprietors. The performance appraisal as one of the key areas in employee motivation and must be handled by HR professionals. 4.4.5 Involvement of employees in performance appraisal in private and public dairy sector Sector Table 4.4.5 Level of involvement of employees performance appraisal Public Private Total Frequency 0 16 16 % .0% 34.8% 11.0% Frequency 4 13 17 % 4.0% 28.3% 11.7% Frequency 95 16 111 % 96.0% 34.8% 76.6% Frequency 99 46 145 % 100.0% 100.0% 100.0% Involved Response Options Sometime involved Never involved Total Table 4.4.5 describes the level of involvement of employees at the time of their performance appraisal. Almost all of the respondents from the public sector said that their department never involves them in their performance appraisal. A large number of respondents (34%) from private sector also share the same culture. Almost 34% people reported their complete involvement while 28% showed partially involvement in their performance appraisal procedures. Private sector has adopted the mixed approach, which leads to further improvements and better performance in results. Public sector dairy department should revisit their strategies and give due rights of involvement to dairy staff. 4.4.6 Satisfaction with performance appraisal method in private and public dairy sector Sector Table 4.4.6 Level of satisfaction with performance appraisal method Public Private Total Frequency 12 11 23 % 12.0% 19.6% 14.7% Frequency 65 23 88 % 65.0% 41.1% 56.4% Frequency 7 19 26 % 7.0% 33.9% 16.7% Frequency 16 3 19 % 16.0% 5.4% 12.2% Frequency 100 56 156 % 100.0% 100.0% 100.0% Highly satisfied Response Options Satisfied Neutral Not satisfied Total Table 4.4.6 analyzes the satisfaction level of respondents for performance appraisal method. Only 14% people are seen highly satisfied, while majority of them 56% are reasonably satisfied. 16% people avoided response and checked neutral while 12% participants are not satisfied. Public sector dairy professionals seem more satisfied while private sector dairy professionals inclined towards neutral response. 4.4.7 Review schedule of performance appraisal method in private and public dairy sector Sector Table 4.4.7 Performance appraisal review Public Private Total Frequency 1 2 3 % 1.0% 4.3% Frequency 1 0 % 1.0% .0% Frequency 0 4 Monthly Response 1 Quarterly Options Biannual 4 % .0% 8.5% Frequency 98 28 % 98.0% 59.6% Frequency 0 13 % .0% 27.7% Frequency 100 47 147 % 100.0% 100.0% 100.0% 126 Annual 13 Not frequently Total Table 4.4.7 describes about the performance appraisal review system in public and private sector. Around 98 % of respondents from public sector confirmed that there is an annual appraisal system in place in the departments. 59.6% respondents from private sector responded that their organization had annual performance appraisal system, while rest (28%) reported no-regular review mechanism of their performance appraisal. 4.4.8 Effectiveness of performance appraisal in private and public dairy sector Sector Table4.4.8 Levels of effectiveness of performance appraisal Public Private Total Frequency 14 0 14 % 14.0% .0% Frequency 5 17 % 5.0% 36.2% Frequency 74 29 % 74.0% 61.7% Frequency 7 1 % 7.0% 2.1% Frequency 100 47 147 % 100.0% 100.0% 100.0% In effective Response Options 22 No opinion 103 Effective 8 Very effective Total Table 4.4.8 presents respondents’ perceptions about effectiveness of performance appraisal system in public and private sector dairy organizations. Majority of the both sector see their performance appraisal effective as 74% from public sector and 61% from private sector given similar responses. Number of employee of private sector checked “no opinion” option, which may indicate the less clearance of system effectiveness. Very few participants have reported current appraisal system as highly effective in both public and private dairy organizations/departments. 4.4.9 Need of improvement in performance appraisal practices in private and public dairy sector Sector Table 4.4.9 extent of improvement need in performance appraisal Very much needed Response Public Private Total Frequency 23 0 23 % 23.0% .0% Frequency 59 14 % 59.0% 28.6% Frequency 4 17 % 4.0% 34.7% Frequency 14 17 % 14.0% 34.7% Frequency 0 1 % .0% 2.0% Frequency 100 49 149 % 100.0% 100.0% 100.0% 73 Needed Options 21 No opinion 31 Not needed Absolutely not needed Total 1 Table 4.4.9 clarifies respondent’s perceptions regarding need of improvement in appraisal practices in private and public sector. A majority of respondents from the public sector said (23% very much needed & 60% needed) that appraisal system needs improvements. Employees of private sector seem satisfied with their current systems as only 28% reported the need of improvements. Around 35% respondents had no clear perceptions about the need of improvements in performance appraisal and 34% share no need of change in private sector. 4.5. Compensation Planning & Benefits 4.5.1. Modes of payments, available in private and public dairy sector Sector Table 4.5.1. Availability of pay options Fixed pay ( Basic pay Response Scale System ) Options Public Private Total Frequency 99 46 145 % 99.0% 85.2% Frequency 1 6 % 1.0% 11.1% Frequency 0 2 % .0% 3.7% Frequency 100 54 7 Pay for performance 2 Others Total % 154 100.0% 100.0% Table 01 table clearly shows availability of pay options in public and private sector of Punjab.99% respondents from public and 85.2% from private sector have told that they get fixed pay (basic pay scale system) in their departments/organizations. Few employee of private sector have reported existence of performance- based component in their pay structure. Analysis shows that fixed pay system is dominant and there is need to add more performance based features in pay design 4.5.2. Providing incentives to employees in private and public dairy sector Sector Table 4.5.2. Provision of incentives to employees Public Private Total Frequency 2 17 19 % 2.0% 31.5% Frequency 17 33 % 17.0% 61.1% Frequency 81 4 % 81.0% 7.4% Frequency 100 54 % 100.0% 100.0% Yes Response Options 50 To some extent 85 No Total 154 Table 4.5.2 provides an analysis of regular incentives, given to employees in public and private sector. A majority of respondents 81% from public sector say that their departments do not provide incentives. Almost 17% indicated some irregular incentives on special occasions of high performance. Almost 61.1 % respondents from private sector reply that their organization provides incentives to some extent and 31% reported in absolute yes. Public sector has to change their policies and incorporate regular incentive scheme. 4.5.3. Satisfaction with current compensation system in private and public dairy sector Sector Table 4.5.3. Level of satisfaction with compensation system Highly satisfied Response Satisfied Public Private Total Frequency 1 11 12 % 1.0% 20.8% Frequency 16 41 % 16.2% 77.4% Options 57 Not satisfied Absolutely not Frequency 78 1 % 78.8% 1.9% Frequency 4 0 % 4.0% .0% Frequency 99 53 % 100.0% 100.0% satisfied Total 79 4 152 Table 4.5.3 provides an explanation of employee’s perceptions about current compensations systems in private and public dairy sector.78.8% respondents from public sector replied that they are not satisfied with current compensation system and around 16% reported their satisfaction. Contrarily, 77% from private sector said that they are satisfied with the current compensation system and 20% reported their high level of satisfaction over their compensation plans. Over all analysis shows that private sector employees are more satisfied with the current compensation system as compared to dairy professionals of public sector dairy departments. 4.5.4. Provision of medical benefits /allowances in private and public dairy sector Sector Table 4.5.4. Provision of medical benefits /allowances Response Public Private Total Frequency 70 30 100 % 72.2% 58.8% Frequency 26 19 % 26.8% 37.3% Frequency 1 2 % 1.0% 3.9% Frequency 97 51 % 100.0% 100.0% Yes Options 45 To some extent 3 No Total 148 Table 4.5.4. is the outcome of employee’s perceptions, reported about provision of medical benefits/allowances in private and public sector dairy organizations.72.2% respondents from public and 58.8% from private sector revealed that their organization provide medical benefits/allowances to them. However a large proportion of participants (37% of public sector & 27% of private sector) have opted the response option of to some extent, meant by under services of their expectations. Analysis shows both public and private sector provides medical benefits/allowances to their employees, but need much improvements and revision to correspond to employees’ expectations. 4.5.5. Payment systems, prevail in private and public dairy sector Sector Table 4.5.5. Mode of payment system Response Public Private Total 2 Hourly Frequency 0 2 payment % .0% 4.1% Monthly Frequency 93 46 % 95.9% 93.9% Frequency 4 0 % 4.1% .0% Frequency 0 1 % .0% 2.0% Frequency 97 49 146 % 100.0% 100.0% 100.0% Options salary Commission based 139 4 1 Daily wages Total Table 4.5.5. depicts picture of monthly payment system in both private and public sector. About 95.9 % from public and 93.9% respondents from private sector said that their organizations provide monthly base salary. It shows that employees from both sectors are provided monthly base salary. There is no other reward system such as commission based, hourly wages and daily wages approaches in place. 4.5.5. Impact of Compensation practices on performance in private and public dairy sector Sector Table4.5.5. Level impact of compensation practices on performance Public Private Total Frequency 5 3 8 % 5.0% 5.9% Frequency 27 21 % 27.0% 41.2% Frequency 12 26 % 12.0% 51.0% Frequency 53 1 % 53.0% 2.0% Frequency 3 0 % 3.0% .0% Frequency 100 51 % 100.0% 100.0% Very strong Response 48 Strong Options 38 No opinion 54 Weak 3 Very weak Total 151 Table 4.5.5. shows the comparison of employee’s perceptions from private and public sector regarding impact of compensation practices on their performance. About 53 % of the employees from the public sector revealed that compensation practices have weak impact on their performance. A small proportion of staff (27%) views the strong impact of compensation practices on personal performance. At the other hand, 41.2 % respondents from private sector say that compensation practices makes strong impact on their personal performance while 51 % percent had no opinion that how it impact performance. 4.5.6. Need of improvement in compensation and benefits practices in private and public dairy sector Sector Table 4.5.6. Level of improvement need in compensation and benefits practices Public Private Total Frequency 61 1 62 % 62.2% 2.0% Frequency 37 30 % 37.8% 61.2% Frequency 0 13 % .0% 26.5% Frequency 0 4 % .0% 8.2% Frequency 0 1 % .0% 2.0% Frequency 98 49 Very much needed Response 67 Needed Options 13 No opinion 4 Not needed 1 Absolutely not needed Total % 147 100.0% 100.0% Table 4.5.6. provides an analysis of participants’ views regarding need of improvement in compensation and benefits practices in public and private sector. A majority of respondents from public sector expressed strong feeling (62% very much needed & 37% needed) about the need of improvement/ revision in present compensation and benefits practices. About 61.2 % respondents from private sector responded that there is need for revision/improvement in the present compensation/ benefits practices. The statistics give strong massage to policy makers to listen to the voices of employee and act upon for the mutual interest of dairy stakeholders. 4.5.7. Areas of improvement in compensation and benefits in private and public dairy sector Sector Table 4.5.7. Areas of improvement in compensation and benefits Public Private Total Frequency 94 19 113 % 83.2% 16.8% Frequency 76 23 % 76.8% 23.2% Frequency 69 16 % 81.2% 18.8% Frequency 41 7 % 85.4% 14.6% Frequency 66 11 % 85.7% 14.3% Frequency 50 7 % 87.7% 12.3% Frequency 51 4 % 92.7% 7.3% Frequency 91 19 % 82.7% 17.3% Frequency 100 34 Medical Benefits 99 Bonuses Response TA/TD/ Traveling Options facilities 85 48 Meals 77 Earned Leaves 57 Provident Fund 55 Pension 110 House rent Total 134 Percentages and totals are based on respondents. a. Dichotomy group tabulated at value 1. Table 4.5.7. illustrates the demands of dairy employee in the area of compensation and benefits. The employees from both sector (public and private) were inquired to suggest the areas which need improvements. Public sector respondents showed keen interest and demanded improvements in all mentioned areas including house rent, pension, provident fund, earned leaves, traveling allowances, bonuses and medical benefits. While dairy professionals in private sector adopted selective approach and focused on trawling allowances, bonuses, medical benefits, earned leaves and meals. 4.5.8. Type of improvements in compensation and benefits in private and public dairy sector Sector Table 4.5.8. Areas of improvement in compensations and benefits Increase in Response Public Private Total Frequency compensation Options % Frequency 74 12 86 86.0% 14.0% 82 18 100 Timely reward % Procedural Frequency improvement % 82.0% 18.0% 70 5 75 93.3% 6.7% Frequency 0 2 % .0% 3% Frequency 98 21 2 Others Total 119 Percentages and totals are based on respondents. a. Dichotomy group tabulated at value 1 In table 4.5.8, all three of the given areas/types were well responded and public sector employees showed high response. The statistics of table 00 report high demands of public sector employees. Participants of public sector departments asked for increase in amount of compensation (86%), timely reward (82%) and also improvements in procedures of paying compensation (93%). The participants from private sector showed less interest in improvements as they found their compensation according to their rights. Timely reward is the area of attention to some extent for private sector dairy organizations. 4.6. HR practices by private dairy farmers 4.6.1. Options of job descriptions and job specifications in private dairy farms Table 4.6.1 JDs and JSs in Frequency Percent private dairy farms Yes 25 45.5% No 30 54.5% Total 55 100.0% Response Options Table 4.6.1 presents data of farm houses, collected from various locations of the Punjab. The statistics show professionals HR practices to some extent, as 45% farm managers said that they make job descriptions and job specifications of their employees. But more farm managers (54.5%) reported absence of such HR practices. The policy makers may pay attention to semi-organized dairy sector in shape of dairy farms and introduce such JDs and JSs in their farm houses. 4.6.2. Options of job descriptions and job specifications in private dairy farms Table 4.6.2. Training and Frequency Percent development at farms Response Options Table 4.6.2. Yes 12 21.8% No 43 78.2% Total 55 100.0% informs about provision of Training and Development facilities, provided to employees at dairy sector farms. Only 21.8 % respondents confirmed that they were provided training and development facilities while a majority of respondents 78.2 % respondents said they have not provided training and development facilities at farms. Analysis shows most of the employees at farms are not provided with training and development facilities. There should be such programs by Government of The Punjab to train employees of dairy farmers. 4.6.3. Compensation and benefits scheme in private dairy farms Table 4.6.3. Existence of Compensation and Benefits in farms Frequency Percent Response Options Yes 24 43.6% No 31 56.4% Total 55 100.0% Table 4.6.3. explains the provision of compensation and benefits, given to employees at dairy farms. About 43.6 % respondents confirmed that their organization provides compensation and benefits to employees. But majority of participants highlighted that there is no such plan of compensation and benefits for the employee. The statistics indicate the practice of compensation and benefits scheme in few organizations. The management of dairy sector should take such initiatives to foster and penetrate these kind of HR practices. 4.6.3. Provision of medical facilities in private dairy farms Table 4.6.3. Provision of Frequency Percent medical facility Response Options Yes 6 10.9% No 49 89.1% Total 55 100.0% Table 4.6.3. gives details about the provision of medical facility to employees at private /commercial farms. It shows that only 10.9 % percent farmers provide medical facilities to their employees at farms. While huge number of 89% of respondents replied that they are not provided medical facilities. Regulatory authorities should pay attention to encourage the medical facilities to dairy farms employee as one of the best HR practices. 4.7. Best HRM Practices Focus Group Discussion (FGD) Overview of FGD Dated 26.11.2008 Wednesday Venue: UVAS (University of Veterinary and Animal Science) Moderator: Dr. Aman Ullah Co- Moderator: Mujahid Ali Size: 12 Persons Time 4.00 to 6: pm Length: 1:30 to 2 Hour The focus group discussion was conducted to explore the insights of HR practices in dairy sector and bring forward alternative solutions to the problems. The focus group was participated by stakeholders of dairy sector including HR managers of processing organizations, farmers, officers of dairy related public sectors and faculty/trainers teach dairy- related subjects. Findings of Discussion and Analysis 4.7.1. Bench-Mark model for best HR practices Question: What do you suggest as a bench-mark model for best HR practices in dairy sector of Punjab? Discussion: Majoriyt of the participants of the focus group said that we should adopt the model of Idare-e-Kisan.It is in the local context/favor of Paksitani culture .Nestle is multinational company and it is running on the commercial basis so this model is not favorable at all completely .They further suggested to adopt model like LDDB. The comunity development concept was also well appriacited and reccomneded to be practiced in dairy sector of Punjab. 4.7.2. Best practices for TNA and performance appraisal Question: What are your guidelines for TNA and performance appraisal system for HR practices? Discussion: The implementation of TNA demands HR development in the departments of dairy development. During discussion on TNA, participants emphasized very strongly to train the employees of department, starting from scratch level and including even lower and technical staff. Participants were agreed to train and upgrade the VA / technician. We should use top to bottom approach by covering lower, middle and upper management regarding training. It was also recommended that employees should be given basic cum in-depth business and market related training to compete the local environment/competitions. They suggested creating a sense of responsibility among the employees. It was revealed during the discussion that public sector dairy departments have old, conventional promotional system like ACR. It should be readdressing and appraisal should be conducted on the bases of performance, merit and in every department. During discussion, the observation was also made that focus on field staff and farmer is needed for proper and comprehensive training. Today world has become a global village. This is called age of information. Participants pointed out about use of IT for the field staff and deployment of the customized software. This process will help to keep the data up-to-date and wellformed for analysis pupose. Department should use the dairy related software to improve the output of employees and department. It can generate the research activities to make better decisions. One of the participants also suggested organizing computerized of DLO and this data should be shared/linked to other departments for better and useful. 4.7.3. Impact of HR practices on performance Question: How you feel the overall HR impact on performance of dairy Sector? Focus group feedback indicated that dairy sector needs the status of high priority industry, backed by strong and relevant policy framework. Department needs to launch extensive training programs for the staff, which enhance their performance. To get the maximum output, the department needs to start number of refresher courses. It will help them to improve their lacking skills in practices and implementation of dairy policy effectively. Further they should be taught how to use and run the new technology. Participants had the opinion that we should give very urgent and serious attention to breeding system and should make efforts to improve healthy breeding system. 4.7.4. Effective and Relevant HR policies Question: How did you find the effectiveness and relevancy of HR policies? Discussion on this question has raveled the lack of human resources in the department. They had realized and agreed to accommodate polices and procedures in the present scenario of modern world. The matter of policy implementation demands swift actions of higher management to ensure adequate execution. JD are JS are found very old and obsolete which were created in 1973 and got less relevancy in today’s modern practices. These should be revised/amend/change on urgent basis. Further they said that there is need to craft department wise polices to ensure the high level of relevance. Policies designed on the basis of Adhockism are also seem irrelevant and less effective. Government policy for contractual jobs may be revised to make effectiveness and relevancy of HR policies. Government policies should include financial incentives to the employees of department, reduction in workload of VA and continuous revision of workload to ensure proper workload management. It was also discussed that process of fake/outdated record should be removed, it is common observed that bull semen is taken from the field but this record is not kept for further analysis. Further most of the employees do their private job practices and that is why they do not pay serious attention to job tasks. 4.7.4. Attractive HRM practices Question: What are the attractive practices of dairy farmers live stock professionals and milk processors? Technical staff are in depression and anxiety Give them incentives Move over- service structure should be reformed At present there is no proper reward and compensation system in the public sector dairy department. Private sector has already proper HR system and infrastructure of HR system. Service structure needs amount of reforms along with extensive plan for employee welfare. The participants discussed diverse range of problems regarding employees. They demanded for revise/reform of services rules and these rules should be results oriented/productive. Employees should be provided fringe benefits. They are deprived of proper heath and medical facilities. Further one of the respondent discussed that technical staffs are very depressive and in anxiety due to doing low paid job. 4.7.4. HR policies at various tiers Question: How do you perceive the HR policies at various tiers of diary sector of Punjab? Participants discussed lack of HR planning and practices in the dairy sector of Punjab. Shortage of proper man power demands vacant jobs to be filled as soon as possible to run this department smoothly. More tightened regulatory framework is essential in public sector dairy departments along with up to date resource support. Some of the participants suggested revising /making JSs and JDs well- formulated for the employees of hospitals. HR performance audit followed by better reward system was also the area of concern for FGD participants. DLOs are often involved in administrative work, sparing less time for the productive and high performing areas of departments. The revised HR system should urge AVs and ATs to give attention to the matters of department employee and their productivity in the field. The HR policy of dairy sector should also ensure the record management of hospitals for further analysis and effective decision making. Continuous analysis of field-based data about staff feedback, their rendered services method of interaction with farmer is also an area of high concern for HR policy makers. 4.8. Best HRM Practices In Depth Interviews of Management 4.8.1. The perception of management about HR policies The high-ranked officers were inquired about their general perception of HR policies in dairy sector. The following is the summary of their collective conversation. 1. Few managers are of the view that policies already exist but this area is neglected for long-time and not implemented properly. 2. Most of the respondent had showed their unawareness about the human resource development policies in dairy sector. 3. Traditionally in place service rules are not very much viewed as policy-guided system of human resource development in the light of today’s advanced practices 4. All the management agreed upon vital importance of refined policy frame-work, specialized on HRM in diary sector of Punjab. 5. Among the characteristics of effective HRM policies, advised by middle and higher level management, include: a. Open and transparent framework of HRM policies b. Ensuring high level of performance and productivity of staff c. policy framework must encourage innovation and entrance of new ideas d. There should be enough flexibility to accommodate practical variation at operational level. e. the current ACR take the basis of personal likes and dislikes, which should avoided in revised policy plan f. HRM policy must encourage the merit-based performance evaluation and promotions g. Incentives be linked with performance improvement through training and development 4.8.2. Effectiveness and relevancy of HR polices The same respondent of middle and higher management in dairy related departments of Punjab were asked to chare their views about effectiveness and relevancy of HR policies. Summary of their thoughts in this area as follows: 1. The effectiveness of HR related policies is compromised at the cost of irrelevancy, built in the design framework 2. The improvement in internal procedures regarding employee problems may lead to high effectiveness 3. Pay and pension policy be revised to achieve effectiveness in overall HRM policies 4. Performance indicators must be the part of HRM policy guidelines 5. current system is not capable to quantitatively measure the performance outcome, so revised HRM policies should frame quantifiable tasks and achievements 6. The described characteristics of effective and relevant polices are as follows: a. Provide conducive environment b. Prepare employee friendly rules and regulations c. Remove their mental worries d. Improve their social-economic status e. Fulfill their basic rights/ primary needs f. Ensure capacity building of employee g. Encourage merit-based reward systems h. Capable to exploit individual human potential 4.8.3. The limitations in best HRM practices The respondents were requested to share the hurdles in the way of implementing best HRM practice in dairy sector of Punjab. The following is the summary of their responses: 1. The absence of clear HRM policies in dairy sector of Punjab is first main hurdle in implementing best HR practices 2. The lack of incentives to employee may discourage them to adopt new systems 3. The current ACR mechanism of promotion may demote the staff to believe on such best practice 4. Pay structure could be a potential problem and be revised while implementing best HR practices 5. The absence of competitive career growth is one of the hurdles, must be addressed 6. Partiality -based evaluation method discourage the staff to cooperate in new assignments 7. The irrelevant placement and working assignments stop people to use specialized potential and be addressed also 8. The communication gap based on hierarchical structure is hurdle to practice advanced HR policies 9. The politicization of public department may also cause problem and higher management must face it. 10. Absence of basic trainings of staff may create resistance to new practices 4.8.4. The status of Job Description The participants of the study were asked to share essentials of job description commonly based in various tiers of dairy sectors. The summarized form their valued suggestions include: 1. The interviewed managers are commonly agreed on the due importance of welldrafted JDs for the performance improvement and evaluation 2. The items of JDs must be quantifiable and measurable 3. Few managers appreciated the existing JDs and showed disappointment on working compliance according to JDs 4. there should be system of motivating staff to perform according to their JDs 5. the revision and up-gradation is missing component in case of public sector department, which should be addressed immediately 6. JDs must be redefined according to pervious performance 7. target orientation in JDs should be in consultation with employee and feedback 8. PERT (Project/performance evaluation and review technique) is recommended to be adopted in such cases 4.8.4. The status of Job Specification The managers are also interviewed about their perceptions and experiences of job specifications, practiced as HR tools in dairy sector of Punjab. They have shared the following views: 1. The tendency of hiring under-capacity people must be discouraged in public sector dairy departments 2. The over-qualified people are also hired which is the mismatch between skills and job specifications 3. The job specifications are stagnant and need to be updated on regular basis 4. The audit of job specifications and job skills should be carried out on annual basis 5. There is need to introduce HR audit to evaluate staff skills and job specifications for current staff and future hiring 6. Along with basic education, the personality related tests, last performance score and right attitude for the job are also areas of concern 7. The gap areas must be explored, defined and given required trainings to improve 4.8.5. HR impact on performance of dairy sector The participants of study were also asked about their perception of HR policy’s impact on performance. The purpose of this query was to judge the importance of HR policy and planning in context of dairy practices in Punjab. The summary of responses as follows: 1. Majority of the interviewees were positive about the impact of HR policy and planning in development of dairy sector of Punjab. 2. They pointed out shortage of competent HR managers in dairy departments 3. They shared the view that private sector growth in dairy sector is largely contributed by their HRM practices 4. They also argued that rising global challenges are impossible to meet without initiating best HRM practices in dairy sector of Punjab 5. The conducive environment is perceived as factor, contributes in positive impact of HRM practices 6. Continuous monitoring and assessment of trainings may increase the impact of HR practices 4.8.6. Status of HR practices in dairy sector Management of dairy departments was also asked about their experiences regarding existing HRM practices in dairy sector of Punjab. Respondents shared their views for three sectors: Dairy farmers 1. Dairy farmers are largely owned by individuals’ entrepreneurs and no focus has been given to add HR perspective in their operations. 2. Local farmers are highly rooted in their traditional practices and there is no such a positive force to encourage them for best HR practices 3. Lack of formal education is major hurdle in practicing HR and need to be addressed by Government of the Punjab 4. the concept of labor welfare and training is absent in traditional dairy farming, which demands amount of propagations and trainings 5. the sustainable growth and development of local farmer is very much attached with HR practices Live stock departments 1. HRM is one of the less cared areas in livestock and dairy sector of Punjab. 2. Employee are primarily dependent on orders of higher authorities instead of assigned duties in job descriptions 3. The HR principle of right person for right job is quite missing in dairy departments of public sector 4. The livestock department has initiated extensive trainings, which putting positive impact in overall dairy sector 5. The existing HR systems have less match with the trainings, imparted to the dairy officers and redesign of HR systems is required 6. the implementation of best HR practices, followed by trainings of JDs and JSs is the effective solution to dairy sector problems Milk processors (private organizations) 1. This sector is one of the well-organized dairy sectors in the Punjab. 2. Majority of the milk processors have proper mechanism and structure of HRM. 3. They put high emphasis on the HR management and develop their employees as competent human resource on regular basis. 4. Through their best HR practices, they adjust themselves with the changing world needs. 5. Milk processors have their own developed performance appraisal system to monitor continuous improved output. Performance based salary/pay is another plus point in the milk processors sector. 6. There should be an exchange programs of best practices between private and public sector dairy organizations of Punjab 4.8.7. Benchmark model for best HRM practices The sampled people of dairy departments were requested to share their views about potential benchmark model for best HR practices in Punjab. They brought forward following points: 1. The management, during interviews expressed diverse opinions to adopt the HRM practices in private milk processing sector 2. Management have partially agreed to take lessons from companies like Nestle Haleeb, Olper and Idare-e- Kisan. 3. These private milk processors have different types of practices, totally centered to target-based incentives. These practices might yield corporate profits on competitive edge and ignore the holistic development of entire sector 4. The HR practices like performance evaluation, communication norms, reporting patterns and goals settings are great concern of learning for public sector 5. ASPL model is recommended to ensure HR practices at grass root level 6. The discussion revealed that two things; public-private partnership and continuous training can help in implementing best HR practices. 4.8.8. Training Need Assessment (TNA) in dairy sector of Punjab In response to our question about management views regarding TNA for better HR practices, the participants came up with following recommendations: 1. The impact of TNA is largely viewed on career development of the employee, yet attention has to be paid to materialize the training effects in job performance 2. The absence of specialized institute in dairy training is major hurdle in training and assessment culture. 3. There is no experience of proper TNA in public sector dairy departments 4. Initial TNAs should take the holistic view of departments and recommend trainings to all employees of Punjab. 5. The TNE must include the assessment variables regarding personality, people handling, attitude and job commitment 6. TNA must be inspiring by reinforcing participation and realization about training 7. TNA may also include career path analysis as, people are complainants of absence of this component 8. TNA must include the assessment of people capabilities for newly taken decisions in the departments/organization . 4.8.9. Performance appraisal system in dairy sector of Punjab The last question of interview was about performance appraisal system in dairy sector of Punjab. The participants have actively responded to this question and highlighted the followings: 1. The most commonly raised issue was the involvement of employees of all cadres in performance appraisal systems. Participants intended to discourage the culture, where lower staff is excluded from performance appraisal or not given adequate attention 2. Current ACR system does not assess their performance evaluation. This system is obsolete and does not clearly mentions about the achievement of employees. 3. During the interviews, participants were observed saying that tasks closely be associated with results, followed by financial incentives and fringe benefits. 4. The work assignments and achievements should be moderated by effective monitoring system, which must have the inspiring element as a default 5. Revision of pay structure and increments be linked with the performance appraisal. 6. The achievements reporting mechanism should have quantification attributes 7. The consultative approach in performance appraisal is very much needed Chapter 05 Recommendations of Findings for best HRM practices 5.1. Recommendations about Current HR status One of the core objectives of this study is to bring forward the current situation of HR practices of dairy sector, prevails in the province of Punjab. This section presents the summary of highlights, produced in the analysis session of chapter 04, regarding current HR status. 1. The study found absence of professional HR discipline in public sector departments, which is competitive edge of private sector dairy processors. 2. Selection board is in place but seems ineffective in attracting human competence for public sector dairy departments. 3. The high dependency on newspaper vacancy advertisement limits the opportunities of attracting top level potential. 4. Public sector dairy departments seem ignoring the importance of relationship with university offices to attract highly potential graduates. 5. The gaps between job specifications and technical skills is not very realized in public sector dairy departments, while employee of private dairy processors do realize it in technical and professional skills 6. Private dairy sector rely more on interviews, while public sector dairy departments use mix approach of interview and test to select a potential candidate. 5.2. Recommendations about Job description and job specification Job description provides clear route of job functions and necessary tasks to be performed under specific job title. Outline of job description keep the employees focused, provides basis for performance measurement and help management to take remedial measures in case of low performance. Following is the brief view of findings in the area of job description. 5.2.1. Job description 1. The study found more HR related disciplinary practices in public sector, because of established regularity procedures as compared to private dairy processors 2. Job description is known to every one in public sector and to the large number of employees in private sector 3. The system of providing job description is quite strong in public sector and less cared in private dairy sector 4. Public sector has more tendencies of revision but after longer time of average 3 years. Contrarily private sector in dairy business observe less frequency of revision, but make revisions in shorter period of time; one year averagely. 5. The public sector, although practice more culture of JDs, but need drastic efforts to make it very effective and relevant. 6. The employee of public sector demands more improvements in JDs as compared to employee of private sector 7. The impact of JDs is highly perceived on job performance. The stress is given more by public sector staff 8. Public sector employees acknowledged the difference between written JDs and actual performed assignments, which indicates misuse of human resources. 5.2.2. Job specification Job specifications help the organizations to match job requirements for certain tasks with man skills and capabilities. The gap between job specifications and employee skills raises the need of training to ensure the continuous performance. Followings are the summary findings in the area of job specification. 1. Public sector employees are systematically given their job specifications. 2. Private dairy processors has lag in their job specification practices or pay less attention to formulization of job specification to large extent. . 3. The job specifications of public sector are regularly revised but most of the employees from private sector revealed about no revision. 4. Private sector dairy organizations experience shorter time of revising job specifications as compared to public sector dairy departments. 5. Job specifications seem quite effective with slight difference as private sector dairy organizations ensure more effectiveness in their job specifications as compared to public sector departments 6. Public sector employee perceive more impact of JSs on personal performance as compared to private sector 7. Public sector employee perceive slight mismatch between job specification and actual duties, while most of the private sector employees think that formal JS and their actual duties match and there is no big difference. 8. About 85% professionals of both sectors view quite difference between given skills by institutions and actual skills demanded in practical life of dairy sector 5.3. Recommendations about Training and Development Training and development is considered as core of all the functions in each department/organization. Training and development activities not only remove the existing obstacles, but also smoothen the routine operations. Regular trainings make capacity building of employee, which help them to look forward and explore new opportunities for the organizations. Following is the summary of findings, presented in analysis section of training and development. 1. TNA is conducted less on regular and more on the “off and on” basis, which shows inconsistency in TNA in public sector dairy department. Private sectors seem more regular in this regards 2. Public sector dairy departments rarely use professional HR practices like employee assessment or third party assessment for TNA. 3. Private dairy processors employ third party assessment, employee assessment and manager assessment as feedback for TNA process 4. The high rate of on-job training in public sector dairy department is reported followed by in-house training. 5. Private sector is largely limited to in-house training 6. Professional skills, Management skills and Technical skills are priority areas of training in public sector dairy departments. 7. Duration of training, trainer's competencies and training facilities need high improvements in public sector departments. 8. In private sector, the contents and competencies of training are voted for some improvements. 9. Public sector dairy departments, due to focus on “on-job-training” largely depends on immediate supervisors followed by university training of small proportion. 10. Private dairy processors use multiple sources of trainings, which make them effective and efficient. 11. The absence of time schedules and infrequent arrangements of training workshops is highlighted in both public and private sector. 12. Around 30% participants reported quarterly schedule of workshop, which again more scored by private sector, which shows that private sector is ahead of public sector in arranging training events for the employee. 13. Public sector dairy staff is more concerned with trainings due to less other opportunities of personal development and growth, available in private sector. 5.4. Recommendations about Performance appraisal and management Performance of the employee is only consistent, if rewarded timely and adequately. The assessment of performance, management of performance continuity and designing appraisal systems to appreciate that performance is fundamental to the progress of any organization. Following is the briefed version of detail findings, presented in chapter 04 regarding performance and appraisal management. 1. Large proportion of public sector employees and majority of private sector participants acknowledged the practice of performance appraisal system 2. Immediate supervisor are only responsible for performance appraisal in public sector dairy departments. 3. Large number of private organizations assign immediate supervisors and also use some other practices like peer assessment and self-appraisal systems 4. Public sector dairy departments use no option but ACR as method of performance appraisal and performance management 5. Private dairy processors uses various effective HR practices like slef-appraisal, performance appraisal and other methods to do performance management. 6. Only Admin department does performance appraisal due to absence of HR department in public sector dairy departments. 7. Private dairy processor use services of HR professionals through established departments as a competitive edge 8. Public sector dairy employees are never involved in their performance appraisals, which is an alarming tradition 9. Private dairy processors consult (about 65%) their employees during performance appraisals 10. Reasonable level of satisfaction is observed on performance appraisal 11. Review of performance appraisal is experienced annually in dairy sector of Punjab 12. Large proportion reported reasonable level of effectiveness of performance appraisal in Public sector, however small proportion also highlighted its ineffectiveness 13. Public sector dairy employee stressed more on further improvements as compared to private dairy processors employee 5.5. Recommendations about Compensation planning Compensation is the form of reward given to employee over their performance against the tasks. The well-match between tasks and compensation always ensures the high performance of employee. Therefore compensation planning is backbone of the organizational success. The following is the summary participants’ views about compensation planning in dairy sector of Punjab. 1. The fixed pay system is dominant and there is need to add more performance based features in pay design 2. Public sector has to change their policies and incorporate regular incentive scheme. 3. Private sector employees are more satisfied with the current compensation system as compared to dairy professionals of public sector dairy departments 4. Both public and private sector provides medical benefits/allowances to their employees, but need much improvements and revision to correspond to employees’ expectations 5. Employees from both sectors are provided monthly base salary. There is no other reward system such as commission based, hourly wages and daily wages approaches in place 6. Impact of compensation planning is perceived week by public sector employee 7. The revision in compensation planning is highly needed and action upon revision is essential for the mutual interest of dairy stakeholders 8. Public sector respondents showed keen interest and demanded improvements in all mentioned areas including house rent, pension, provident fund, earned leaves, traveling allowances, bonuses and medical benefits 9. The dairy professionals in private sector adopted selective approach and focused on trawling allowances, bonuses, medical benefits, earned leaves and meals 10. Timely reward is the area of attention to some extent for private sector dairy organizations 11. Participants of public sector departments asked for increase in amount of compensation, timely reward and also improvements in procedures of paying compensation 5.6. Recommendations about HR practices by private farmer The individual farmers are also given participation in the study to see their common HR practices. Due to the deep rural base of farmers, no systematic HR practices are identified. The following is the summary of results, produced from the data of farmers. 1. The policy makers may pay attention to semi-organized dairy sector in shape of dairy farms and introduce such JDs and JSs in their farm houses. 2. Most of the employees at farms are not provided with training and development facilities. 3. There should be such programs by Government of The Punjab to train employees of dairy farmers. 4. The practice of compensation and benefits scheme is very rare and in few organizations. 5. The management of dairy sector should take such initiatives to foster and penetrate these kinds of HR practices. 6. Regulatory authorities should pay attention to encourage the medical facilities to dairy farms employee as one of the best HR practices. 5.7. Recommendations about best HR practices (FGD) 1. For better HR practices in dairy sector of Punjab, the model of Idare-e-Kisan and model like LDDB may be considered 2. The comunity development concept was also well appriacited and reccomneded to be practiced in dairy sector of Punjab. 3. L&DD should use top to bottom approach by covering lower, middle and upper management in TNA and training programs. 4. Regarding training, the employees should be given basic cum in-depth business and market related training to compete the local and international competition 5. Old and conventional promotional system like ACR be readdressed and appraisal should be conducted on the bases of performance, merit and in every department. 6. In this age of information, staff must equipped with high level of IT usage, adequate IT training and deployment of customized software and dairy 7. The dairy sector of Punjab, be given status of high priority industry, backed by strong and relevant policy framework 8. JD are JS are found very old and obsolete which were created in 1973, got less relevancy in today’s modern practices and need revision and improvements 9. Policies designed on the basis of Adhockism seem irrelevant and less effective. 10. Government policy for contractual jobs may be revised to make effectiveness and relevancy of HR policies. 11. At present there is no proper reward and compensation system in the public sector dairy department. Private sector has already proper HR system and infrastructure of HR system. 12. HR performance audit followed by better reward system was also the area of concern for FGD participants. 13. The HR policy of dairy sector should also ensure the record management of hospitals for further analysis and effective decision making. 14. Continuous analysis of field-based data about staff feedback, their rendered services method of interaction with farmers is also an area of high concern for HR policy makers 5.8. Recommendations about best HRM practices (Interviews) Organizations need sustainable growth to ensure the success in long run. Human capital is one of the major resources that is used to gain competitive advantage in national and international stage. The distinguishing performance without competitive advantage in human resource is the dream, remains immaterialized. Superior HR practices always tend to be very difficult for competitors to duplicate. Therefore, research studies have identified that HRM practices have been recognized as sustainable competitive advantage. These practices consists of recruitment, performance/merit based selection, training and development, job security, communication. Face to face interviews were conducted in the month of March 2009.Indepth Interviews were part of qualitative research to get insight about the HRM. These indepth interviews provide a future dimension/direction to set HRM practices in dairy sector of Punjab. All of respondents were contacted at their premises. Formal in depth face to face interviews were conducted to identify main issues related to HRM .These interviews identified three main problems in the public sector dairy departments. HRM policy issues in public sector Lack of employee motivation and communication Lack of proper training and development Above outcomes are resulted of poor HR practices, in place for the long time. This report has explored these issues, focusing specifically/especially the HRM functions in private and public sector dairy organizations in Punjab. Research objective of qualitative nature were served through separate in-depth interviews from higher and middle level management, involved in planning and implementing the policies of dairy sector of Punjab. Twenty three (23) managers/high officials are approached successfully among the thirty (30) sampled respondents. They were assured of their names not to be disclosed and views are presented at aggregate level. These insightful interviews examined experiences and views of top management regarding HR issues. The top level management has expressed the views that HRM is not being effectively practiced in the dairy departments while second tier management believed that ineffectiveness of HRM is due to its failure to achieve desired results. In summary, dairy sector of Punjab need advanced knowledge and human capabilities to implement the best HR practices in effective manners. Chapter 06 6.1. Conclusion Punjab is considered as one of rich province for giving high yield and large variety of agriculture output. Punjab enjoys the largest area of cultivatable land, with high rate of yield. Livestock is the allied sector of agriculture, dominated by the dairy related practices. Dairy sector is the largest contributor in the agriculture output of Punjab. The public sector like Department of Planning and Evaluation, L&DD performs very efficient service to the dairy sector and tries to improve the conditions. In recent years, Department of Planning and Evaluation, L&DD, Punjab has emphasized the improvement of human resource services in the province and took number of initiatives. The management perceives human resource as quite crucial in the dairy development of Punjab. This research is also commissioned because of priority attention of policy makers and planning authorities for the development of best HR practices in the dairy sector of Punjab. This research has been designed after a very detailed pilot-testing and thorough consultation with the stakeholders. Numbers of methodologies are used in this research including, focus group discussions, interviews, opinion surveys and field observations to comprehensively document the intended information. All the stakeholders, including farmers, professionals of dairy farms, professionals in dairy processing sector, L&DD officers, managers at planning level and policy makers of the dairy sector have been actively involved in the entire process of the study. The eight districts of the Punjab are covered in the research and field work as rated priority areas by L&DD, Government of the Punjab. Both open-ended and close ended variables are used on self-constructed research instruments to capture the existing realities and meet the research objectives. The studies conducted across the world have found significant attention, given to HR issues in dairy sector. As reported in the research of Brasier, et al. (2006) that strategically dealing with rising complexity of dairy issues requires very talented and trained employees on various positions, with high emphasis on HRP practices. 2 Among the other findings of study include: Employee behavior and skills impact the dairy sector performance Implementation of HR practices for better outcome demands high degree of trainings Continues capacity building of staff is essential after HRM program Training must cater the individual needs in the light of organizational goals Training should include knowledge components as safety regulations, legislation, product and services features and service requirements Training should include manual skills like operation of machines, product packaging, services hygiene and laboratory analysis Training should include managerial skills such as supervisory role, training, promotion, people skills and dispute handling Training should include behavior skills like positive attitude, dealing with local culture, inspiring milk producers for new technologies and practices Training should include procedural skills such as document handling, record keeping, office management Dairy professionals, equipped with effective training can impact public sector dairy departments, farmers and milk processors through their best HR practices and performance. The wills of public sector for best HR services also positively signal to private sector and enable dairy development department to play pivotal role in the prosperity and growth of private sector. Dairy managers, having progressive approach can lead the sector into new horizons. Such dramatic change for dairy managers is very challenging, particular in Pakistan, because most have little experience and no education in the management of critical human resources. 2 (Park, et al. 2003; Hadley, et al.2002; Crawford,1987; Bailey, 2001) o 6.2. Policy guidelines The dairy sector of Punjab, Pakistan has been underutilized and uncompetitive in the world market due to less awareness of best human resource practices. HR practices can improve the situation in public and private dairy sector, if they are backed by well-drafted policy framework and regulatory support for human resource initiatives. The study recommends following policy guidelines for better practice of HRM in dairy sector of Punjab. Public sector authorities should consider the followings: 1. Drafting regulatory framework for conducive HR environment 2. Policy flexibility to involve private partnership in HRM 3. Selection board must be given flexibility to exercise according to real needs 4. Shift from discipline centered to human and task centered approach 5. A system of reviewing and readjustment of JDs and JSs 6. Planning for market feed-back and establishment of new HR requirement 7. developing lioson with universities and other stakholderes 8. new regulations are required for regular TNA 9. various methods for feedback may be encouraged through policy statements 10. performance appraisal also needs innovative methods according to new working needs 11. Employee participation should be encouraged through policy recommendations o 6.3. Managerial implications The study has direct relevance with real practices performed by management in the area of HR in dairy sector of Punjab. The findings provide guidelines for manger to set their operational priorities according the market demand and in the best interest of department and dairy sector overall. Followings are practices, management may consider in the HR related practices: 7. Establishment of HR departments 8. Recruitment of HR professionals 9. Public sector dairy departments seem ignoring the importance of relationship with university offices to attract highly potential graduates. 10. The advanced human judgment approaches in recruitment 11. An action plan to minimize the gap between actual duties and JDs & JSs 12. Relationship with universities for join recruitment 13. improvement in quality of training like trainer competencies, contents and methods 14. annual time schedule for workshops is essential for employee motivation 15. 3600 feedback may be practiced 16. Dependency on ACR may be reduced to accommodate changes 17. HR audit may be introduced 18. Compensation and reward based performance is mandate References & Bibliography Ahmad,S. and Schroeder,R.G.(2003), The impact of human resource management practices on operational performance: recognizing Frequencyry and industry differences. Journal of Operations Management. 21 (2003) 19–43 Brasier.K., Hyde.J., Stup.R.E., and Holden.L.A.,(2006).’Farm Level Human Resource Management: An opportunity for Extension’. Journal of Extension. Vol.44:3 3RIB3. Dessler, G. (2003). ‘Human Resource Management’. Prentice Hall, Upper Saddle River,NJ. Hadley, G.L., Harsh, S.B. and Wolf, C.A. (2002). “Managerial and Financial Implications of Major Dairy Farm Expansion in Michigan and Wisconsin.” Journal of Dairy Science, 85, 2053-64. Mugera , M.A.,and Bitsch.V.(2005). ‘Managing Labor on Dairy Farms: A ResourceBased Perspective with Evidence from Case Studies. International Food and Agribusiness Management Review Volume 8, Issue 3. Nettle,R.A., Petheram.R.J. and Paine.M.(2000). ‘Dairy Farm Employees Determining their Future- Cases from Australian Dairy Industry’.No.872. IRSA X World congress of Rural Sociology, Brazil. Park,H.G, Mitsuhashi, H., Fey,F.A and Bjo¨rkman,I.,(2003). ‘The effect of human resource management practices on Japanese MNC subsidiary performance: a partial mediating model.’ Int. J. of Human Resource Management 14:8 December 2003 1391–1406 Sajid.M.and Munir.S.,(2008). ‘Studying Impacts if HR Practices on Perceived Employee Performance in Banking Sector of Pakistan’. Proc.CICM-1,Lahore Pakistan. Stup.R.E., Hyde.J. and Holden L. A.(2006). Relationships between Selected Human Resource Management Practices and Dairy Farm Performance. J. Dairy Sci. 89:1116– 1120 Zia, U (2007). ‘Analysis of Milk Marketing Chain in Pakistan.’ Italian Journal of Animal Sciences. Vol.6,(Suppl.2), 1384-1386, The Effect of Human Resource Management Practices on Farm Profitability: An Initial Assessment Jeffrey Hyde, Richard Stup and Lisa Holden Dairy Foods Education in Member Frequencyries of the International Dairy Federation, R.J.M. CRAWFORD, Department of Dairy Technology, The West of Scotland Agricultural College Auchincruive, Ayr, Scotland, Journal of Dairy Science Vol. 70, No. 8, 1987 Opportunities for Success on Small Dairy Farms, By Ken Bailey October 6, 2001 Appendix Table P1. Sample across the districts Districtics Bhakkar Bhawalpur Chakwal Choonia Kasur Toba Taik Singh Faisal Abad Lahore Total Frequency 22 23 18 15 17 20 29 13 157 Table P2. Formal qualification of respondents Qualifications Frequency 33 Matric 30 FA/F.Sc 43 BA/B.Sc 39 MA/M.Sc/M.Phil 3 Ph.D 9 Non-Matric Total 148 % 14.0 14.6 11.5 9.6 10.8 12.7 18.5 8.3 100.0 % 22.3 20.3 29.1 26.4 2.0 5.0 100.0 Table P3. Relevant professional experience (Years) Frequency % 25 16.3 1 - 4 Years 61 39.6 5-9 Years 34 22.1 10-15 Years 23 14.9 16-20 Years 14 9.1 more than 20 years Total 157 100.0 Table P4. Monthly earnings of dairy professionals Frequency Income in Rs. 20 Up to 9,000 88 10,000- 29,000 32 30,000-49,000 6 50,000-79,000 2 80,000-99000 Total 148 % 13.5 59.5 21.6 4.1 1.4 100.0 Table P5. Age Total Age group of respondents Frequency 11 Between 18 and 24 Years 93 25-39 Years 39 40-49 Years 11 50-60 Years 1 More than 60 Years 155 % 7.1 60.0 25.2 7.1 .6 100.0