Department Of MBA in Business Administration

1st Year 2nd Semester

Course Name: - HumanResources Management

Course Code:-MBA622

Assignment One (01)

By
Tesfaye Ejeta
Id. No. Mao/10285/13

Submitted To: - Abera D. (Phd)

March 22/22
Addis Ababa
Contents
1. Introduction to National Alcohol and Liquor Factory ........................................................ 3
2. Human Resource Practices ................................................................................................... 3
3. N A L F HR Planning process Practices ............................................................................. 5
4. HR RecruitmentProcess......................................................................................................... 7
8. Training & Development ..................................................................................................... 13
8.1. Training Process of Employee .................................................................................... 14
9. Attention to culture ............................................................................................................... 14
10. Development or Mentoring Programs ............................................................................ 15
11. Employee Motivation, Appraisal, Compensation and Benefits ..................................... 15
11.1. Employee Motivation ................................................................................................... 15
11.2. Performance appraisal................................................................................................. 15
11.2.1. Steps in appraising performance......................................................................... 15
11.3. Compensation............................................................................................................... 16
11.4. Wages ............................................................................................................................ 16
11.5. Annual Leaves .............................................................................................................. 16
11.6. Working Hours............................................................................................................. 16
12. Employee Relations .......................................................................................................... 17
13. Recommendations ............................................................................................................ 18
14. Conclusion ........................................................................................................................ 19
References ..................................................................................................................................... 20

2
 RM PRACTICES IN NATIONAL ALCOHOL AND LIQUOR FACTORY

1. Introduction to National Alcohol and Liquor Factory

National Alcohol and Liquor Factory is alcoholic beverage manufacturing organization

in Ethiopia that produces pure alcohol, spirits and liquors using new technology and has
branches named Mekanisa located at the heart of Addis and Sebeta Branch 25km to south
west of Addis Ababa. Its rich experience in sole production of alcoholic beverages
together with professional skilled man power made it easier to deliver quality products
continuously satisfying customers. The company is highly profitable and produces
quality and competitive products with fair price. Currently, the organization Holds 500
permanent, 120 temporary employees. In National Alcohol and Liquor Factory
management and the employees are working together in order to compete with this new
and challenging market environment. The organization is also strived to have efficient,
effective and motivated work force that will lead to the development of the organization.
The company tries to enter to international market. National Alcohol and Liquor Factory
is an ISO 9001-2015 quality management system and EMS 14001:2015 environmental
management systems certified manufacturing organization leading the local market and
heading to compete in international market.

2. Human Resource Practices

Strategic human resource practice is defined in several aspects. (Jackson, 1987)Defined
strategic human resource practices as a system that attracts, develops, Motivates, and
retains employees to ensure the effective implementation and the survival of the
organization and its members. It is also conceptualized as a set of internally consistent
policies and practices designed and implemented to ensure that a firm’s human capital
contribute to the achievement of its business objectives (chris Rowley, 2010) viewed
strategic human resource practices a set of practices used by organization to manage
human resources through facilitating the development of competencies that are firm
specific, produce complex social relation and generate organization knowledge to sustain
competitive advantage. Strategic human resource practices relate to specific practices,

3
formal policies, and philosophies that are designed to attract, develop, motivate, and
retain employees who ensure the effective functioning and survival of the organization.
Among the main approaches to develop strategic human resource practices: universal or
best practice approach (malik, 2018); strategic human resource practices approach (
(Jackson, 1987); contingency approach (Dyer, 1985; Schuler, 1989); and configuration
approach (Wright & Mcmahan, 1992).previous studies revealed that strategic human
resource practices , which were related to organizational innovation, mainly focused on
universal or best practice approach.
Strategic human resource practice is a new paradigm in managing human resource in the
modern organization which is hinged on the understanding that the most critical resource
that any organization must provide itself of is human resource, since it is the human
resource that is responsible for coordinating the other factors of production to spur
corporate performance. Strategic human resource practices aims to achieve strategic fit. It
produces human resource strategies that are integrated vertically with the business
strategy and are ideally an integral part of that strategy. Vertical integration is necessary
to provide congruence between business and human resource strategy so that the latter
supports the accomplishment of the business strategy and helps to define it. (
(Armstrong., 2012; Armistrong, 2009)) Strategic human resource practices are also about
horizontal integration which aims to ensure that the different elements of the human
resource strategy fit together and are mutually supportive (Armistrong, 2009). It enables
strategic decisions to be made that have a major and long-term impact on the behavior
and success of the organization by ensuring that the organization has the skilled,
committed and well-motivated employees it needs to achieve competitive advantage.
(cooke et al,2005) asserted that strategic human resource practices is an efficient function
that copes with environmental changes. It directly and indirectly benefits companies
because it changes passivity into initiative, transmits organizational goals clearly and
encourages the involvement of line managers.
Marchington (2008), argue that strategic human resource practices positively influences
firm performance because it generates structural cohesion, an employee generated

4
synergy that propels a company forward, enabling the firm to respond to its environment
while still moving forward. Indeed, it becomes clear that whether the focus of strategic
human resource practices is on alignment with the external context or on the internal
context of the firm, the meaning of strategic human resource practices can only be really
understood in the context of organizational performance, whether that be in terms of
economic value added and increased shareholder value; customer value added and
increased market share or people added value increased human resource practices and
reservoirs of employee skills, knowledge and talent.

3. N A L F HR Planning process Practices

Human Resource Management is an essential part for any organization. Moreover,
development of this department is the first step, the ground on which the future of the
company depends. It is essential for every single business unit and especially for such
national company as National Alcohol and Liquor Factory. It is people, not technology
who create the company. Even though National Alcohol and Liquor Factory has different
branches it has its own policies or procedures applicable in all divisions of the company.
Every organization has its own policies and strategies by which they control the functions
of their departments. Similarly, NALF also have its own policies and strategies by which it
control all the functions of its departments. NALF’s Human Resource Management
involves HR planning and forecasting process which includes deciding the position that
needs to be filled and how to fill it. HR planning in the company is carried out by the
People Functions department which is also involved in the overall strategic planning of
the company. The HR manager engages with the other company executives and line
managers to plan for the hiring of new employees to fill vacant positions in the
organization. HR planning also involves predicting employees’ needs and the level of
productivity expected from them. HR planning in NALF also involves the management
of employees’ exit from the company. It therefore balances the demand and supply of
employees in the company so that the right number of people with the right knowledge
and skills are selected for the right jobs at the right places, time and cost. The stages of

5
 HR planning process in NALF are not well defined, but it generally follows the following
stages:
 Analysis of current staff in the organization,
 Analysis of the future employment plans of the company,
 Determination of the surplus or deficit of employees,
 Evaluation of alternative solutions to the surplus or deficit, and
 Selection of the best alternatives.
These are represented in a flow diagram as shown below.

Ana
Stage 1 Stage 2 Stage 3
Analysis of Analysis of the future Determination of the
current staff employment plans of surplus or deficit of
the company employees

Stage 5 Stage 4

Selection of the Evaluation of

best alternatives alternative
solutions to the
surplus or deficit
Flow diagram of Human Resource Planning Process of NALF

In stage one, Company examines the information about the current workforce of the
company including age and gender, job grades, duration of work, job titles, turnover
rates, working hours, and productivity rates. Depending on the findings of stage one
analysis, the company then develops plans to get the right people with the right type of
skills. Future employment plans for the company are analyzed in stage two. These plans
determine the number of staff that will be required in future. In the third stage, the
company determines the mismatch between the surplus and shortage of human resource

6
requirements. If there is a shortage, the company examines whether the shortage will
affect the company’s future success or not. In stage Four, the company identifies some
alternative courses of action. If there is a surplus of staff the company’s options include
early retirement, redundancy, retraining, part time working, and overtime ban. In case of
a shortage, the company recruits new staff, redeploys existing staff, uses temporary or
freelance staff, promoting existing staff, or existing staff work overtime. The last stage
involves selecting the best alternative from the above alternatives.

4. HR RecruitmentProcess
The recruitment process is an important part of human resource management (HRM). It
isn’t done without proper strategic planning. Recruitment is defined as a process that
provides the organization with a pool of qualified job candidates from which to choose.
Before companies recruit, they must implement proper staffing plans and forecasting to
determine how many people they will need as discussed under NALF HR Planning
process Practices. The basis of the forecast maybe the annual budget of the organization
and the short- to long-term plans of the organization—for example, the possibility of
expansion what happed NALF currently. Forecasting is based on both internal and external
factors. Internal factors include the following:
 Budget constraints
 Expected or trend of employee separations
 Production levels
 Sales increases or decreases
 Global expansion plans
External factors might include the following:
 Changes in technology
 Changes in laws
 Unemployment rates
 Shifts in population

7
  Shifts in urban, suburban, and rural areas
 Competition
Once the forecasting data are gathered and analyzed, the HR professional can see where
gaps exist and then begin to recruit individuals with the right skills, education, and
backgrounds. This section discussed under NALF HR Planning process Practices.

5.1. Recruitment Strategy

Although it might seem easy, recruitment of the right talent, at the right place and at the
right time, takes skill and practice, but more importantly, it takes strategic planning. An
understanding of the labor market and the factors determining the relevant aspects of the
labor market is key to being strategic about your recruiting processes as discussed under
HR planning Process. Based on this information, when a job opening occurs, the HRM
professional should be ready to fill that position. Here are the aspects of developing a
recruitment strategy:
1. Refer to a staffing plan.
2. Confirm the job analysis is correct through questionnaires.
3. Write the job description and job specifications.
4. Have a bidding system to recruit and review internal candidate qualifications for
possible promotions.
5. Determine the best recruitment strategies for the position.
6. Implement a recruiting strategy.
The first step in the recruitment process is acknowledgment of a job opening. At this
time, the manager and/ the HRM of NALF look at the job description for the job opening
(assuming it isn’t a new job). We discuss how to write a job analysis and job description
in Section 6. “Job Analysis and Job Descriptions”.
Assuming the job analysis and job description are ready, an organization may decide to
look at internal candidates’ qualifications first. Internal candidates are people who are
already working for the company. If an internal candidate meets the qualifications, this
person might be encouraged to apply for the job, and the job opening may not be

8
published. Many organizations have formal job posting procedures and bidding
systems in place for internal candidates. For example, job postings may be sent to a
listserv or other avenue so all employees have access to them. However, the advantage of
publishing open positions to everyone in and outside the company is to ensure the
organization is diverse.
Then the best recruiting strategies for the type of position are determined. For example,
for a high-level executive position, it may be decided to hire from inside from what

NALF calls “ተተኪ የሰው ሕይል”or Reserve man power for middle and top management
position. For an entry-level position, advertising on social networking websites might be
the best strategy. (ማሕብር, 2020)

6. Job analysis and designing

The job analysis is a formal system developed to determine what tasks people actually
perform in their jobs. The purpose of a job analysis is to ensure creation of the right fit
between the job and the employee and to determine how employee performance will be
assessed. A major part of the job analysis includes research, which may mean reviewing
job responsibilities of current employees, researching job descriptions for similar jobs with
competitors, and analyzing any new responsibilities that need to be accomplished by the
person with the position.
Job description: a list of job duties, responsibilities, reporting relationship, working
conditions, and supervisory responsibilities-one product of a job.
Job specification: a list of a job’s human requirements that is requisites education, skills,
personality, and so on-other product of a job analysis National Alcohol and Liquor Factory
HR department check its own job description and job analysis in which they get the
information about employees work activities, human behavior, performance standard, job
context and human requirements and also other information related to this conduct HR
department of National Alcohol and Liquor Factory used this information for Recruiting,
selection, compensation, performance appraisal, training, and employee’s relationship.

9
7. Selection Process
Finding the interested candidates who have submitted their profiles for a particular job is
the process of recruitment, and choosing the best and most suitable candidates among them
is the process of selection. It results in elimination of unsuitable candidates. It follows
scientific techniques for the appropriate choice of a person for the job.
The recruitment process has a wide coverage as it collects the applications of interested
candidates, whereas the selection process narrows down the scope and becomes specific
when it selects the suitable candidates.
Stone defines, ‘Selection is the process of differentiating between applicants in order to
identify (and hire) those with a greater likelihood of success in a job’.
A scientific and logical selection procedure leads to scientific selection of candidates. The
criterion finalized for selecting a candidate for a particular job varies from company to
company. Therefore, the selection procedure followed by NALF, many times, becomes
lengthy as it is a question of getting the most suitable candidates for which various tests are
to be done and interviews to be taken. The selection procedure of NALF is systematic so
that it does not leave any scope for confusions and doubts about the choice of the selected
candidate.
The details of the various steps in selection procedures of National Alcohol and Liquor
Factory are given as follows:

10
 7.1. Inviting Applications:
NALF HRM invites the prospective candidates from within the organization or outside the
organization as per needed in order to apply for the post.

11
(internal vacancy, 2022)
7.2. Receiving Applications:

NALF HRM collects Detail applications from the candidates who provide the necessary
information about personal and professional details of a person. These applications
facilitate analysis and comparison of the candidates for it.

7.3. Scrutiny of Applications:

After the applications time is ended /after application deadline is matured, the company sort
out the applications; Incomplete applications get rejected; applicants with un-matching job
specifications are also rejected.

7.4. Written Tests:

As the final list of candidates becomes ready after the scrutiny of applications, the written

test is conducted. This test is conducted for understanding the technical knowledge, attitude

and interest of the candidates.

7.5. Personal Interview:

National Alcohol and Liquor Factory conducts individual interviews to test the personality,
ability to introduce his/her selves, technical skills and attitudes of a Candidate’s through
interviews. National Alcohol and Liquor factory has its exam committee and interviewer
committee which includes all departments managers and NALF deputy manager.
They asks the candidates several questions about:
Their Experience on another job,
Their family background,
Their interests,
Their future expected plan,
What they can add to the company if they get the chance of employed
Their expectations from the said job

12
 Their strengths and weaknesses
All of these questions are used by the interviewers to identify the candidates and to take the
final decision of selection.

7.6. Reference Check:

At least two references are asked by National Alcohol and Liquor Factory HR from the
candidate which used to crosscheck for the information provided by the candidate through
their application form and during the interviews.

7.7. Medical Examination:

National Alcohol and Liquor Factory seriously ask Physical strength and fitness of a
candidate is must before they takes up the job. In-spite of good performance in tests and
interviews, candidates can be rejected on the basis of their ill health.

7.8. Final Selection:

After a candidate pass the medical examination; The Company gives the appointment letter
to join the organization as a temporary employee for 90 days and later becomes permanent
employee.

7.9. Placement:
NALF allocates to the appointed candidate so that hi/she can get the whole idea about the
nature of the job. Hi/she can get adjusted to the job and perform well in future with all
capacities and strengths.

8. Training & Development

The company has a clear staffing and training policy that is followed throughout its
branches. National Alcohol and Liquor Factory believes that education is powerful force in
employee motivation. The company has helps people make their dreams true. It has

13
innovative program for permanent employees to up grading their educational level.

8.1. Training Process of Employee

Training process is essential part of every employee without training; employee

cannot come to now the procedure of work, rules and regulations of firm,
sometimes when new technology is introduced it is also responsibility of a firm to
train its employees. (ማሕብር, 2020)

8.1.1. NALF Training Process

NALF follows a clear training policy by staffing a training as a department under

HRM. This department do the training need assessment annually for all departments
and prepare the training for the requested fields for example if ‘Environmental
audit’ training is requested by the quality department the training department
prepare and facilitates the training for them. Also After recruiting the fresh
employee the HRM of NALF train them for three months by paying them salaries
and after three months they become part of a firm. National Alcohol and Liquor
Factory also give training to already exist employee it depending upon condition for
example if new technology is introduced first of all National Alcohol and Liquor
Factory give full training to them about new technology then the factory allow them
to start their job.

(ማሕብር, 2020)
9. Attention to culture

National Alcohol and Liquor Factory HR department pays close attention to

environmental culture as well as the factory cultures. Introduction given to fresh employees
on environmental culture and factory l culture. New employees put under supervision of
old employees. Working environment represent blend of different cultures.

14
10. Development or Mentoring Programs

National Alcohol and Liquor Factory has a system of mentoring programs that include,
one-on-one mentoring, group mentoring and mentoring self-study tools. These programs
promote trusting relationships for networking, coaching, career counseling and life lessons.
Mentoring increases the flow of information across organizational lines and encourages
diverse thinking and cross-functional learning.

11. Employee Motivation, Appraisal, Compensation and Benefits

11.1. Employee Motivation
Motivated employees are important assets for a company. According to theories of
motivation, monetary and non-monetary factors remain key in motivating employees.
NALF focuses on both monetary and non-monetary factors.

11.2. Performance appraisal

National Alcohol and Liquor Factory performance appraisal is semi-annually. National
Alcohol and Liquor Factory HR appraise the employee due to their performance about
goals of the organization. NALF set the goals started the year and tell the employees about
the goal if the employees achieve this goal it appraise the employees.
11.2.1. Steps in appraising performance
The performance appraisal process contains three steps;
 Define the job
 Appraise the performance
 Provide feedback
Define the job;
Means making sure that you and your subordinate agree on his or her duties and job
standard.

15
Appraise performance;
Means comparing your subordinate’s actual performance to the standards that have been
set.

Provide feedback;
Means discuss the subordinate performance and progress, and make plans for any
development required.

Appraise Provide
Define the the
the Job performa Feedbac
nce k

11.3. Compensation
The objective of company compensation is to improve performance of employees and
convey a message that the company is loyal to employees. The company gives many
compensation – salary, bonus, medical, pick and drop, gratuity funds, social security etc.

11.4. Wages
Research shows that monetary factors leads in motivating employees. NALF provides
relatively smart wages to employees. Wages are competitive and satisfy employees. Most
employees by the company are offered competitive wages.

11.5. Annual Leaves

National Alcohol and Liquor Factory’s has different leaves days that conform to the
national labor laws. The leave days depends on the work experience of employees starting
from 14 days per year for zero experience of fresh employee and increases ½ day per
annum. (ማሕብር, 2020)

16
 11.6. Working Hours
Time management is taken serious in National Alcohol and Liquor Factory. There are three
types of workers in NALF: Staff workers, senior Technical workers and shift workers.
There are two main operations for Shift workers: Distillation shift workers and liquor shift
workers.

There are typical three shifts for Distillation:

 8:00 am to 3:00 pm
 3:00 pm to 6:00 am
 6:00 pm to 8:00 am
There are two shifts for Liquor section:
 8:00 am to 4:00 pm
 4:00pm to 9:00pm
(ማሕብር, 2020)
12. Employee Relations
Employees are the most important assets of every company so it is very important to give
them importance. The satisfaction of the employees makes the company successful. The
reason is that if the employees of the company are satisfied then they will work hard for the
development of the company but if they are not satisfied with the company’s policies and
they are not given their rights then they will leave the company which can turn into a big
loss. So employees ‘relationship is very important for every company. Every company has
its own policy. National Alcohol and Liquor Factory have also got its own policy by which
it give importance to its employees if any employee faces some kind of problem related to
his life or work then he can directly go to the manager and he can share all of his problems.
This thing should be adopted by every company because this makes the employee satisfied
with the company. National Alcohol and Liquor Factory believe that an open door policy is
the best policy for employees’ relations because due to this, its employees feel very
independent and they know that if they get any problem, they can contact directly to the

17
manager of their department. So NALF strongly believe that such policy makes its
employees satisfy with it. (ማሕብር, 2020)

13. Recommendations

- In NALF during employee recruitment process even though HRM do assessment

for each departments, the department head (middle level manager) participation is
negligible on process so, including department head or any person from the
department is mandatory for some departmental work related interview and paper
questions.

- The recruitment process takes so long time that maybe create some confusion on
the candidates so I recommend the NALF HR try to make is short.

- Even though the salary of the employees is relatively smart the salary gap between
the fresh employee and old employee is too huge and is unfair.

- Even though the performance appraisal system is theoretically available in their

programs they did not apply or put in actions.

- Detailed job disruption and job specification must be attached with the vacant post.

18
14. Conclusion
National Alcohol and Liquor Factory the oldest alcohol and beverage producing company
who applies the modern HRM practices in our country. NALF applies both Quality
management system and Environmental management system.
NALF HRM apply HR planning and forecasting by doing man power assessment for every
departments in the company. The process of HR planning and forecasting is completed by
the committee that is already formed for this purpose which include all top management
and company deputy manager. The stages of HR planning process in NALF are not well
defined. Once the forecasting data are gathered and analyzed, the HR professional can see
where gaps exist and then begin to recruit individuals with the right skills, education, and
backgrounds. NALF follows its own recruitment strategies to recruit the employee. After it
follows the recruitment strategies’ steps HRM sees the first alternative of employing by
inviting the internal vacancy. NALF also considers this alternatives as best and cost
effective alternative for the company. The selection procedure of NALF is systematic so
that it does not leave any scope for confusions and doubts about the choice of the selected
candidate. National Alcohol and Liquor Factory believes that education is powerful force in
employee motivation. It gives different trainings for its employees based on the training
need assessment collected from each departments, for example if ‘Environmental audit’
training is requested by the quality department the training department prepare and
facilitates the training for them

19
References
Armistrong, M. (2009). Armstrong's Handbook of Management and Leadership: A Guide to
Managing Results. Kogan Page.

Armstrong., M. (2012). Armstrong's handbook of management and leadership : developing

effective people skills for better leadership and management. Kogan Page.

chris Rowley, K. J. (2010). Human resouse management. Routledge.

(2022). internal vacancy. Addis ababa, Mekanisa: Nalf.

Jackson. (1987). Human Resource Management, 9 th Edition. 2014, p. 694.

malik, A. (2018). Strategic Human Resource Management and Employment Relations. springer
Singapore: Singapore.

ማሕብር, የ. አ. (2020). የህብረት ስምምነት. In የ. አ. ማሕብር, የህብረት ስምምነት (pp. 64-66). እድዲስ
ኣባባ: Ethiopian chambers of commerce.

20