November 22, 2019

ACKNOWLEDGEMENT is the key to continue success and growth,



First we are really
grateful to Allah because we managed to complete our report. We are deeply
indebted to our lecturer, Hina Ali who
always helps us improving our knowledge.
Next, we would like to thank our group members that had always been dedicated
in making this project successful. This project cannot be completed without the
effort, support and cooperation from our group members.
Last, we would like to express our gratitude to our friends for the support and
Our thanks and appreciation goes to the people who helped us directly or
indirectly in completing the report.

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Millat Tractors Limited


We were five group
members and we visited the HR department of a giant in the tractors and
machinery industry, the Millat Tractors Limited. The topic assigned to us by
our course instructor was the selection process of the stated company.

History of Organization:

Millat Tractors
Limited (MTL) was established in 1964 to introduce and market Massey Ferguson
(MF) Tractors in Pakistan.

The company was
nationalized under Economic Reforms Order in 1972 and started assembling and
marketing tractors on behalf of Pakistan Tractor Corporation (PTC), which was
formed by the Government for import of tractors. This was the turning point in
the Company’s history and it went about the task systematically and rapidly.
The Company undertook this new role with enthusiasm and in the spirit of
national development and proved its engineering capabilities by surprising the
deletion targets set by the Government.

Just in one year’s
time, the company took a giant step towards self-reliance by setting up the
first engine assembly plant in Pakistan.

The Company made a
strategic decision right in the beginning to bring those manufacturing
facilities in-house for which capabilities did not exist in the country and for
parts, which required high precision and investment.

 At MTL, they firmly
believe that producing to International quality standards is the key to continue
success and growth, and quality control department converts this belief
into reality.

In 1992, the company
was privatized. The employees joined hands and took over the management by
winning an open bid.

To maintain its leadership role in tractor manufacturing in the
country, MTL continues to look toward future, to identify and exploit new
opportunities and to consolidate existing ones. This is the only reason that
MTL is one of the major tractor manufacturing companies of the World.

Organogram for each

Each department has its own organogram and hiring is done
according to that organogram and most of them are replacements. The ones who
retire and the ones who leave the organization for some purpose, they are
preferred for replacements. The concerned head of department makes an employee
requisition that what kind of person is required, what should be his
qualification, what should be his experience and skills for that position which
is also known as job description and job specification. Then there is a huge
data bank of CVs. There are CVs of reference, walk-ins and other CVs. Some of
them are shortlisted and the rest of them are sent to the head of department
who further shortlists them and then sends the screened CVs to the HR

And recommends them for interview calls.

Selection Process:

Interview panels are formed according to the vacant positions.
If there is a junior level post, there are two or three managers of different
departments who interview the candidate. If there is a senior post, senior
managers or deputy general managers are involved. In this way three interviews
are conducted and the final interview is done by the chief executive officer
but if there is a senior level position such as senior manager, deputy general
manager or general manager then the directors and even the chairman is
involved. Likewise selections are made and the selected candidates are provided
with offer letters on which the gross salary and benefits for which he is
entitled are mentioned. If the candidate is happy with the offer, within seven
days he would return it with either yes or no. If he joins, he is given the
appointment letter and joining report is created after which his orientation
starts. In the first half of the orientation, he stays in his own department
and in the second half he visits different departments where the concerned
people tell him about the working of the department. After that, regular
working starts. Six months probationary period is given. After five months, a
performance appraisal report is generated which is sent to the concerned head
of department who evaluates it that whether it is satisfactory or not. If it is
satisfactory then the candidate is confirmed and if not satisfactory then the
probation is extended after which extension or confirmation letter is made.
After he receives the confirmation letter he is considered the regular and
permanent employee of the organization. 




They do hiring through
replacement, replacement is creating when someone is going to retire or going
to leave the organization, and then they hire the candidates for that position.
Head of Department related to concerned department where they need employee
write Employee Recognition to the HR Department in which he writes which kind
of employee he required. In which he tells about the qualification, experience
and skills like, job description and job specification. Then they got a huge
data of CVs of both categories Walk In and Reference base. Then HR department
shortlist that CVs and send the shortlisted CVs to the Head of Department then
they further shortlist that CVs and send back us those CVs which they have
shortlisted and tell HR to call these candidates for job interview. Then we see
for which position we are going select the employee and according to that position
we make the interview panel. If it is a junior level position then two three
managers of different department and they interview the candidates. If it is a
senior level position then Senior Managers and Deputy General Managers conduct
the interview. If the position is for Seniors Managers, Deputy General Managers
or General Managers then Directors and Chairman are also involved. When they
done with CV shortlisting then they start selection process. After conducting
interview they select the employee. At the beginning they give them an offer
letter. In offer letter his salary is mentioned and the benefits and perks for
which he is entitled for that position is written on offer letter. Then
organization give him choice that if offer is acceptable then within seven days
submit the offer letter. If he says yes and join the organization then after
some days we gave him his appointment letter. When he join the organization,
after one or two days we start his orientation. Orientation means that in which
apparent department he is he will gave that department half time and other half
time he will gave to the other departments of that organization. Concerned
employees of those departments tell about the working of their departments.
After this his regular working is start. Six months is the probation period of
the organization. After five months they generate a confirmation report and
send to his Head of Department. He evaluate it and see that the work he has
done in six months is satisfactory then he confirm him and if not then we
extend the probation. Then we gave him either extension or confirmation letter.
When letter is issued then he is consider our regular permanent employee.


Application Form

don’t have application form they have only one form, which is data form. In
which they ask about the employee personal history, family history,
professional experience, qualifications, education and skills and about his
previous organization. The purpose of their data form is to check the history
of that employee whom they are going to hire. When applicants fill that form,
through that form organization get to known about his past experience what he
has done in his previous organization. They get to known about his prior
progress and growth in his previous organization where he was working. They
check applicant’s stability and livelihood of success. They ask the reason why
you are a suitable candidate for this position. Then all the information
related to him is entered to their Enterprise Resource Planning (ERP) System
and copy of that form is also attached to his personnel file.


Employment test


Employment testing and selection procedures
are aptitude tests and examination helps to predict the
success of a job candidate. In MTL interview, In-basket test and presentation
indicate which employees might have undesirable personality
traits, such as anger problems.


Just like in other
organizations, Millat Tractors Limited also conducts employment tests, which
are given very much important. In employment tests, candidate has to undergo
different kinds of tests such as brainpower tests, personality test and
interest tests. For fresh graduates there are a number of methods, which tests
their abilities. For example for a new employee, his personality is checked;
his behavior, communication skills, physical traits and personal interests are
checked. This is because obviously the employer does not know about the
person’s background and personal information so it is effective to check out
the above-mentioned features for a new employee. First of all, personality is
composed of attitude and style and best reflects one’s whole self. Secondly,
behavior tells us about how the person will be doing in the coming days and
whether he would be useful or not in achieving the organizations goals. In most
cases, the employees or workers of an organization who don’t seem to be serious
and ethical and show non-professional behavior are always disliked and in most
cases are asked to leave the organization immediately. Communication skills of
a person too play a crucial role in developing his career. In most
organizations, communication skills of a person are preferred over all other
aspects of his personality. The person having effective communication skills is
always given top priority over others who have skills but cannot communicate
professionally. Physical traits are the inborn capabilities of a person, which
are purely natural and cannot be attained with learning or experience. For
example a candidate has a CGPA of less than three but has the natural ability
to communicate effectively. This kind of person is more preferable. Lastly,
personal interests are given quite importance in the organization of Millat
Tractors Limited.


Experienced and trained
people are tested through their education, previous job performance and quality
of his work. There is a huge difference between trained and untrained people
and it depends upon the position for which he is to be hired. Work sample is
provided for both of them and there are different assessment tests, which are
different for trained and untrained employees. For trained people there are
only interviews conducted by Millat Tractors Limited and most of them are panel
interviews in which two or more people judge a candidate in which there are
more and more job related questions are asked. In this way the interviewer
comes to know that how much the interviewee has knowledge for the specific
position, which is to be filled.


Assessments tests are
also arranged for untrained people in whom there are two types of tests. One of
them is in-basket test and the other is individual oral presentation. In MTL, a
six-month probation period is granted to the new employees. The candidate gets
reports, incoming calls, emails and other resources. The contestant must give suitable
time to each item. Trained inspectors make conclusions upon the candidate’s
efforts. On the other hand, the MTL gives equal importance to recreational presentations.
Each applicant’s devotion and communication skills are tested through different



In Millat Tractors LTD the interviewer has both
types of Structured and Unstructured interview questions, which they ask from
the new candidates before selecting them for the job.


structure interview the interviewer panel asks the same questions from every
candidate because they have the list of questions written on a paper. The
structure interview is easy for every member of the panel to ask because they
already know the best answer of that question which they ask to the candidate.
The interviewer may ask same questions like what’s your past experience or tell
me about a time you failed at a project and how did you try to avoid failure?


unstructured interview the interviewer panel can ask any type of questions from
the candidates like the questions may be relevant or irrelevant to the job. The
panel can ask questions about strengths weaknesses skills or any personal
questions. Basically this type of questions is used to check that how polite,
mature the candidate is or how he can handle this type of situations.

They also ask some questions which are job
related for example:

Why do you want to work in
Millat Tractors?

What do you think will be your
biggest challenge in this job?

What qualities do you think
will be required for this job?

What will the main tasks and
responsibilities are in this job?

Background Investigation:

There are some background investigation points,
which mostly every company checks and investigate before selecting the


Former employers

Educational accomplishments

Medical certificate

Criminal records

Legal status

Past job experience

The panel in Millat Tractors also checks and
investigates the background of the candidate before selecting them for the job.
But the company only investigates few of the points like Mr. Saeed Ikram the
Deputy Manager of HR department told us that before selecting the candidate
they mostly check educational accomplishments, medical certificate and sometimes
past job experience. Mr. Saeed told us that the background investigation of a
candidate depends on the level of job for example for which level of job the
candidate is applied.

For fresh graduates they check medical
certificate, educational accomplishments like CGPA and the institute from which
he graduated is HEC recognized or not. For high level job they check
educational accomplishments, medical certificate, and sometimes past job
experience because Mr. Saeed told us that they send letters to some of the
candidate past organizations but they didn’t reply them so that’s why now they
don’t check past job experience.

Mr. Saeed also told us that they don’t check the
criminal records, legal status, references of any candidate.

Me and my group is shocked when Mr. Saeed told
that they don’t check criminal records we advise them that they should check
the criminal record of candidates because the candidate may be a murderer or a
thief and he said we don’t check this is our policy.

Job Offer   

Mr. Saeed Ikram told us that after selecting the
candidate the company provides some task some conditions to the new employee
and provide job training to the employee to check that the new employee is
capable for this job or not. The company provides task and training for 6
months to the new employee after 6 months the company issue permanent job offer
letter. After 6 months the HOD tell about the work of the new employee to HR
department if the work is satisfactory then the company issue permanent job
letter if not then the company provide further tasks and training to the new
employee. He also told us that their directors and chairman is so polite with
the employees that they keep on giving them chances to prove themselves and
they don’t fire any employee unless there is a very big issue. The average time
of employees working in Millat Tractors is 20 to 25 years.

Medical Checks

Millat Tractors performs medical
checks as part of their selection process. This is a necessary safety measure
but as a matter of fact, Millat only requires a simple medical fitness test
certificate and that is enough for the job.


All in all, it was a wonderful
experience visiting the company. Very nice people greeted us and we got to
learn a lot how a manufacturing firm works. Just like Mega Factories on Nat
Geo, it was pretty similar local version of the Mega Factories. The company is
operating on a huge scale and the technology is up-to-date and up to the mark.
Add to that skilled labour force as well as decent management teams which are
divided in respective departments and are performing their roles brilliantly.


Despite the fact that company has
been generating decent profits off late, but there is always room for
improvement as we all know. Keeping up with the market is the only way to
survive in such competition. Here are a few recommendations that we feel can
further improve the profits and reputation of the firm.

1. Medical Checks

We were told that Millat Tractors
only requires ordinary medical report test. Well, for a company like Millat
Tractors operating at such huge scale, we believe they should meet the basic
safety requirements set by international standards. Like tests for TB, AIDS and
other transmittable diseases are extremely important. Because at the end of the
day, it is not just about the organization, but the people attached to it as
well. Not just the employee who is applying for the job, but also those who are
already working, to ensure a safe working environment.

2. CGPA Checks

Mr. Saeed told us that they straightaway
throw CVs of candidates whose CGPAs are below 3. Well, the biggest companies in
the world are now focusing more on raw talent instead of useless measure of a
number CGPA. Just think about an unfortunate student of UCP, he gives his damn
best and still falls below 3 for obvious reasons (only a UCPian knows the
pain). So, I believe they should at least give 2.50 above students A CHANCE.
Who knows they have something priceless to add to the company’s fortunes.





3. Probation Period

A new employee is given a taste of
his future job in a probation period of 6 months where he gets to learn what is
needed off his job in the respective department as well as other departments.
This is kind of weird because no one is “Master of all, jack of none”. No
single person can be good in everything, unless he is a superman. He should
rather be allowed to focus his all on his respective field, so that he can give
his level best without getting his attention diverted. Also, 6 months period is
a touch too long. 3 months should be just enough.

4. Criminal Records

It is bizzare that Millat Co.
doesn’t bother to check criminal records of employees. Not doing this, they are
lucky to get away with it thus far. Well, you can’t afford to have a high level
convict working in your confidential areas and you never know how dangerous it
could turn out to be. This is something they really need to look upon and we
gave them a good stare at the spot!

5. Gender Biasness

Well, even though the nature of the
job doesn’t demand many females, but trust me, it was such a dull environment
not seeing a girl there at all. Just hire some more women, make them marketing
heads, make the VP HRs, do something at least to make it a bit gender friendly.
It’s a matter of fact they can’t be hired for labour, but get them anywhere,
like customer services why not?

Well, these are some of the
recommendations for Millat Tractors. I hope they implement at least some of
them in the future.





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