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INTERNSHIP REPORT

ON

Shamim & Company Pvt Ltd.,


Submitted To: Sir. Saeed Ahmad Submitted By: MUHAMMAD IMRAN Roll No. 231 MBA (HRM) Session 2010-14

UNIVERSITY OF EDUCATION, LAHORE (MULTAN CAMPUS)

Internship Report Shamim & Company Pvt Ltd.,

PREFACE
To dream anything that you want to dream that's the beauty of the human mind. To do anything you want to do that is the strength of the human will. To trust yourself to test your limits. That is courage to succeed. This report has widely increased my insight knowledge. Practical experience is very much necessary in order to make yourself master in any field of life. The knowledge that the students of MBA (HRM) receive from their distinctive teachers is solely theoretical as well as practical based. Some Prof. gave us some assignments to do some practical work. Practical work plays a very important role in any field that is adopted by a student.

Internship Report Shamim & Company Pvt Ltd.,

DEDICATION
TO MY BELOVED ALLAH & MY PARENTS Who always wishing and praying for My success in every sphere of life. I pray to Almighty Allah to Enable me to serve them So well and kindly as they did In my life especially in my childhood

Internship Report Shamim & Company Pvt Ltd.,

ACKNOWLEDGEMENT
All prays goes to Allah Almighty who has given me courage and confidence to complete this gigantic task. But with the noble passion of hard work, nothing remains difficult. To write an acknowledgement, after the completion of an enormous task has always been very enthusiastic for me because it's the best source to thank all those whose support enable me to complete this project. After thanking God I will thank to my parents & teachers who prayed for me and without their support I might not be able to complete this internship. Special thank to my supervisor Mr. SAEED AHMAD who helped me and encourage me a lot during my MBA. I want to thank for all those personalities, who have been a continuous source of guidance during the report. I want to say thanks to all the employees of Shamim & Co. Pvt Ltd., Their attitude towards me was really very positive and appreciable. I want to acknowledge them with thanks for their help and guidance on each and every step. I made many mistakes as I had never been confronted with the business world but they never minded. They treated mc as their younger sister and forgave all my inaccuracies. But In this regard, I particularly want to thank those personalities who have been the continuous source of guidance throughout my internship. Muhammad Imran

Internship Report Shamim & Company Pvt Ltd.,

Table of Contents
Chapter 1 1.1 Executive summary 1.2 Objective of Studying the Organization 1.3 OVERVIEW OF THE ORGANIZATION 1.4 Mission Statement 1.5 Vision Statement 1.6 Objective 1.7 COMPANY QUALITY OBJECTIVES 1.8 stock keeping units (S.K.U) 1.9 Unique features of Shamim & Co. Multan 1.10 Organizational Structure: Chapter 2 2.1 DEPARTMENTS OF SHAMIM & COMPANY 2.1.1 Research & MIS Department 2.1.2 Finance Department 2.2.3 Sales & Marketing Department 2.2.4 Supply Chain Department 2.2.5 Shipping Department 2.2.6 Supply chain Department 2.2 Delivery system of the Company 2.3 Major and Minor Competitors Chapter 3 3. HUMAN RESOURCE DEPARTMENT 3.1 General Discussion on HR Department 3.2 JOB ANALYSIS Factors and functions of Human Resource Department Involve Human Resource Planning & Forecasting Recruitment Selection Orientation & Training 07 09 10 12 13 14 17 19 20 21 23 23 23 24 24 24 24 25 25 26 27 28 29 30 30 30 33 5

Internship Report Shamim & Company Pvt Ltd.,

Performance Appraisal & Management Compensation & Benefits

35 36 40 41 41 42 45 47 49 50 53 54 56 59 59 60 61 62 63 64 65 66 67 68 71 75 76 78 81 82 6

3.5 Structure of Human Resource Management: 3.6 Human Resource Planning: 3.7 Human Resource Planning (HRP) Process: 3.8 Human Resource Management Forecasting: 3.10 EMPLOYMENT AGENCY 3.12 EMPLOYEE DEVELOPMENT 3.14 PERFORMANCE MANAGEMENT 3.15 EMPLOYEE COMPENSATION AND BENEFITS 3.16 ORGANIZATION CAREER MANAGEMENT 3.17 JOBS CHANGES WITHIN THE ORGANIZATION 3.18 SEPARATION: Chapter 4 4.1 FINANCIAL ANALYSIS 4.1.1 LIQUIDITY RATIOS: 4.1.2 Current Ratios 4.1.3 ACID- TEST RATIO 4.1.4 TIME EARNED INTEREST 4.1.5 DEBT RATIOS: 4.1.6 D/E RATIO: 4.1.7 ASSET MANAGEMENT: 4.1.8 TOTAL ASSET TURNOVER: 4.1.9 INVENTORY TURNOVER: 4.1.10 PROFITABILITY RATIOS: Chapter 5 5.1 SWOT ANALYSIS 5.2 PEST ANALYSIS 5.3 SUGGESTIONS & RECOMMENATIONS 5.4 SLOGANS THROUGH TIME 5.5 REFERENCES: 5.6 ANNEXURE
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1.1 Executive Summary


According to Richard D. Brown and George J. Petrol (1986), the history of the Beverages industry start from 1886, when Atlanta chemist Doe Pemberton developed a reddish brown syrup with a smidgen of cocaine (for medicinal purposes) to compete with the many patent medicines and cure - all elixirs of that time. His company recommended it for the relief of hangovers headaches, menstrual pains, and a host of other problem. One warm summer day Pemberton took some syrup down to will is venerable at Jacob's Drug Store in Atlanta. An ounce of the mixture was put into a glass, which was then filled with water and ice, creating the first Cola. The Beverage industry has undergone a revolutionary change during the last couple of decades. The form of processing and the machinery used these days has developed and is very sophisticated. Automatic and computerized plants have been installed in the industry thus making it an industry which is dealing in million of gallons of beverages yearly. Pakistan Beverages, the bottlers for Pepsi, and Coke bottlers National Beverages claim that their primary goal is not to undermine the competition but to expand the market as a whole. Market expansion, in fact, seems to be the buzzword these days in the beverage industry. Analysts believe the potential market in Pakistan is though to be enormous because the country's per capita consumption is as low as 14 bottles per year. Compare this with a 120 bottles per year in the Philippines, and the scope for expansion becomes more than obvious. Pepsi Cola is among the most successful consumer product companies in the world with annual revenues of $24 billion and approximately 140,000 employees. Some of Pepsi Cola's brand names are nearly 100 years old but the corporation remains relatively young. Pepsi Cola Inc. was founded in 1965 through the merger of Pepsi-Cola Company and Frito-Lay Inc. Pepsi Cola divisions operate in two major domestic and international businesses: beverages and snack foods.

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Pepsi Cola's brand names are some of the best known and most respected in the world and our restaurants are named as favorites by millions of people. Pepsi Cola has achieved a continuing record of growth. This record is based on high standards of performance, distinctive competitive strategies which are superbly executed, the personal and professional integrity of our people, business practices and products. Shamim & Co was established in 1967 under a franchise agreement with 7-UP to bottle 7-Up Soft Drinks. In 1973 Shamim & Co. started to bottle Pepsi Cola as well. This was the first Pepsi franchise in Pakistan. Mr. Allah Nawaz Khan Tareen was the founder of the franchise and also the first Managing Director. It is a great honor of "Shamim & Company" that it was Second Beverage Company of Pakistan that time and currently one of most famous Beverages Company of South Asia. Shamim & Co. products are manufactured under strict quality control and conform to international quality standards set by Pepsi Cola International. Shamim & Co. bottles over 500 million drinks per annum which have earned Shamim & Co. the distinguished status of being classified as "Mega Plant" in the PEPSI system. Shamim and Company being the largest territory in Pakistan covers the following areas. Multan A Zone, Multan B Zone, Multan C Zone, Multan District, Khanewal, Mailsi, Vehari, Muzafar Garh, Leiah, D.G Khan, Sahiwal, Okara,Bahawal Pur, Ahamad Pur, Bahawal Nagar, Haroon Abad, Rahim Yar Khan.

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1.2 Objective of Studying the Organization


Shamim & Co. has been working in the field of Beverage in Pakistan. The purpose of studying the organization is to have practical demonstration over business principles especially to know the Human Recourse Management department. The real objectives of studying the organization are based on following facts; I have a comprehensive knowledge about different section of Human Resource Management department. I have a great opportunity to make critical analysis of this theoretical concept relating to practical experience. Practical study of the training and development and other activities of this department. Understanding / Comprehension of the role played by a Human Resource Management department in any organization. Learn interaction of a beverage company and comparing with other firms of the same industry to make the compressive knowledge of Human Resource functions and activities Furthermore it was also my aim to update the current information about organization.

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1.3 OVERVIEW OF THE ORGANIZATION


1.3.1 Brief History of Shamim & Co. (Pvt) Ltd Multan
Shamim & Co was established in 1967 under a franchise agreement with 7-UP to bottle 7-Up Soft Drinks. In 1973 Shamim & Co. started to bottle Pepsi Cola as well. This was the first Pepsi franchise in Pakistan. Mr. Allah Nawaz Khan Tareen was the founder of the franchise and also the first Managing Director. It is a great honor of "Shamim & Company" that it was Second Beverage Company of Pakistan that time and currently one of most famous Beverages Company of South Asia. Shamim & Co. products are manufactured under strict quality control and conform to international quality standards set by Pepsi Cola International. Shamim & Co. bottles over 500 million drinks per annum which have earned Shamim & Co. the distinguished status of being classified as "Mega Plant" in the PEPSI system. There are 9 franchise of Pepsi Cola international in Pakistan, Shamim & co. is one of them that is situated at District jail road Multan. Other franchise of Pepsi Cola are Peshawar and Quetta that are described above. The company's 1st production was in 1967, that time the brand offered was 7-up 270 ml that is why it is also known as 7-up factory. Shamim & Co. primarily deals in CSD's (Carbonated Soft Drinks). Pepsi Cola international franchise Shamim & company covers 17 districts & 134 stations. Shamim & Co. Multan has very committed staff and this is the reason that Shamim & Co. Multan is currently enjoying 80% market share in the franchise which is the highest for any Pepsi Cola Franchise in the world. Shamim & Co. was declared "Bottler of the Year" in the region for outstanding performance.

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Company is currently passing through the phase of hiring new experienced '& more competent sales staff in order to increase the share to 90% and above. As far as distribution is concerned company has a very well-established distribution network covering whole of the franchise areas.

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1.4 Mission Statement


Our mission is to be the world premier consumer products company focused on convince beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive to act with honesty, fairness and integrity.

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1.5 Vision Statement


Their vision statement is "We were number 1, we are number 1, and we will be number I". Our collective success depends on our effective strategies, the organization's needs and the needs of our employees and their families like enhanced career opportunities, Education and development, Medical, dental and prescription coverage Flexible spending accounts, Retirement, Life insurance, Vacation time, Disability, Tuition reimbursement, Scholarships, matching charitable donations.

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1.6 Objective
The ultimate objectives of our business strategy are to increase volume, expand our share of worldwide nonalcoholic ready-to-drink beverage sales and maximize our Long-term cash flows. Pepsi-Cola International has keen focus on enhancing value for the customers and helping them grow their beverage businesses. We strive to understand customer's needs and demands in order to increase their satisfaction level.

1.6.1

Nature and Profile of Shamim & Co.:

Shamim & Co. has an extensive network of Distributors and well-trained sales staff to market and distribute the products in whole of the southern Punjab, a territory that covers almost 150,000 Sq. k.m. Shamim & Co. caters the needs of over twenty million people through more then 22000 outlets out of which 14,000 are exclusively Pepsi Cola retail outlets. We provide a complete business package to our retailers including horizontal and vertical bottle coolers, point of purchase advertising, cash credit, etc.

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1.6.2
offering:

Product Line of Shamim & Co.:

The first product of Shamim & Company was 7-up. But currently the Company is

Pepsi Cola

Diet Pepsi

7-up

Diet 7-up

Mirinda

Mountain Dew

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1.7 COMPANY QUALITY OBJECTIVES


Corporate objective of Shamim & Company is to continue to build a strong company which provides value to its all stakeholders. Company will accomplish this mission through its commitment to the following four key components.

1.7.1

CONSUMER FOCUS Shamim & Company focus CPQ (Consumer Perception of Quality) Benchmarking Up-gradation of Quality Measurement System Sensory & Appearance Testing

1.7.2

SUPPLIER APPROVAL

To strive for continuous improvement in the quality of Incoming Raw Materials and Packaging by: Vendor Certification Approval

1.7.3

PLANT AND TRADE

To upgrade technological capabilities by the acquisition of latest tools & technology recommended by PCI to drive Quality Evolution: Statistical Process Control Standards, Methods and Manuals Trade Age Management Laboratory Validation & Up-gradation

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1.7.4

PEOPLE AND ORGANIZATION Training Process Ownership Empowerment

To share ownership for Quality with everyone at all levels through:

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1.8 Stock keeping Units (S.K.U):


S.K.U is the different packings of the brands. Like if we take Pepsi as a brand, availabale S.K.U are 250 ml standard, 1 litre glass, Buddy pack, Can 330ml, 1 litre pack, Half litre pack etc. The available S.K.U of the company are 54.Further categories are as: SSRB This stands for Single Serving Returnable Bottle (Regular) We are offering Pepsi, Mirinda, 7-Up & Mountain Dew in this group. LRB This stands for Liter Returnable Bottle this includes Pepsi, Mirinda & 7-Up. We are not offering Mountain Dew in this class. Pet Bottle (1.5 Liter) o This includes Pepsi, Mirinda & 7-Up. This group also does not have Mountain Dew in their family. o Here Diet Pepsi & 7-Up are also available to enlarge the range of group. NRB This stand for Non Returnable Bottle. It can also be called as Deposable o It has 300ml quantity. This group includes Pepsi, Mirinda, 7-Up, Diet Pepsi & Diet 7-Up. Cane Packing, we are offering cane packing of all that brands that are offered in SSRB. Including Pepsi, Mirinda, 7-Up and Mountain Dew.

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1.9 Unique Features of Shamim & Co. Multan:


The Company has following distinguishing features: Shamim & Company covers the largest area/territory among all Pepsi franchises in Pakistan. Shamim & Company has won quality awards at international level. Also declared It enjoys 80% market share which is the highest for any Pepsi Cola Franchise in the world.

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1.10

Organizational Structure:

Managing Director, Mr Alamgir Khan Tareen General Manager Sales & Marketing, Mr Amir Hameed General Manager Technical, Mr Asmat ullah Baig General Manager Finance, Mr Sohail Butt Manager Sales Information System & Research (SIS), Mr. Kamran Ahsan Manager HRD, Mr Ahmed Abdi Manager Shipping, Mr Major Farooq

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2.1 DEPARTMENTS OF SHAMIM & COMPANY


There are seven main departments of Shamim & Company. Sales & Marketing Department Production Department MIS Department Research & SIS Department Finance Department Cash Department Human Resource Department

2.1.1 Research & MIS Department


MIS department of Shamim & Co. is playing in this regard. The department is working with a small setup & satisfying the information requirements of the organization with a small staff and developed a setup, the department has eliminated much work load, paper work and saved a lot previous time.

2.1.2 Finance Department


This is one of the most important departments of this organization. This department made the financial plans of the organization, they analyze their resources and then concise other reports and gives the whole budget the organization can afford. Another job of this department is to make the complete record all financial and non-financial transactions made inside as well as outside the organization.

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2.1.3 Sales & Marketing Department


Sale and marketing is the most important department of any beverage company. To maximize the sales and profit, this department should be proper planed and managed. Shamim & Co. Pvt. has a very aggressive and hardworking Sales and marketing department.

2.1.4 Human Resource Department


Human Resource Department is responsible for all activities regarding recruiting, selecting, hiring, training, compensation etc. Human Resource Department ensures that the job vacancies are filled by appropriate persons. Human Resource Department deals with every matter regarding workforce

2.1.5 Shipping Department


Shipping is a very critical area for any beverage organization. It serves the role of coordinator or middleman between production and sales. Ensuring appropriate quantity and on time availability of empty & liquid stock is utmost important. Any malfunction in empty receiving, storage, and supply to plants, liquid stock and distribution directly affects sales. This is a complete chain or cycle and any weak link, bottleneck or disturbances will slowdown the whole operations.

2.1.6 Supply Chain Department


This department proves to be back bone for the company. It performs various functions that are: Generates Inventory Reports Policy making Contacting with suppliers Planning for future activities regarding inventory
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2.2 Delivery System of The Company


The company is following two types of delivery systems.

2.2.1: Direct Delivery System:


The Company spends its own resources to sell directly to the retailers. The company uses its own distribution system.

2.2.2: Indirect delivery System:


Most usable system of NBC that is they sell to distributors and then distributors uses its own resources to sell the products. The company sales products on low prices and also commissions are there.

2.3 Major and Minor Competitors:


Coca Cola Gourmet Cola Muree Beweray Shandy Cola Shezan Red Bull Kooler Cola Boomer Cola Other Local Made.

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3. HUMAN RESOURCE DEPARTMENT

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3.1 General Discussion on HR Department:


FIRM department plays a vital role in each organization. The department of Human resource is working efficiently in the company from approximately 4 months. The basic functions of this department are Job Analysis Preparation and collection of applicants information Recruiting Selection Placing Specifying jobs and roles Training Evaluation Feed Back Career development Out sourcing Preventing violence in the workplace Ensuring safety at the workplace Transfer and promotions

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3.2

JOB ANALYSIS

Following steps should be taken by the SCL: Step1: Obtain Documentary information such as procedure manuals and written instruction. Step 2: Ask about more general aspect such as the job purposes, the main activities. Step 3: Ask the jobholders about the job. Step 4: Observe the jobholders to see what they actually do. Formulation of Job Specification and Job Description: 3.2.1 Job description

Human resource Division analyze each job and the it's required Out comes. Job analysis is done by analyzing the past experience and emerging trends. SCL holds documents about terms, duties, responsibilities, and specifications about each job. SCL clearly defined everything that the applicant face no difficulties for application to see the criteria defined he lies are not. 3.2.2 Job specification

SCL also has well developed criteria for each job in term of the job specification. In all the area of the jobs the pre- requisite for the job arc defined for example: Qualification required for a job Skill required for a job Experience required for a job Age Limit

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3.2.3 Factors and functions of Human Resource Department Involve:


Human Resource Planning & Forecasting Recruitment Selection Orientation & Training Performance Appraisal & Management Compensation & Benefits Career Development

Roles of the Human Resource Department include Strategic Role, Operational Role, Administrative Role and employee's advocacy Role. Out of these roles only strategic and operational role is exercised in SCL HR department, where as the administrative role is exercised by the personal department.

3.2.3.1. Division of HR Department in SCL


The Human Resource department is divided in two Sections. I. II. Team Tracking Department The Personnel Department (Strategic & Operational Role)

Functions of Team Tracking Department include: Planning & forecasting Recruitment & selection Orientation & training

Performance appraisals & management Compensation & benefits

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Functions of Personnel Department include: Retirement benefits

(Administrative Role)

Liaison with govt. Agencies regarding legal matters HRIS of permanent employees Salary structure Bonus schedule Gratuity plans Annual routine increments Labor force management system Planning of direct & indirect labor Recruitment & Decruitment of Labor Division of labor among different department

3.2.3.2. HR Planning & forecasting in SCL


HR Planning is the process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing their tasks, It helps avoid sudden talent shortages and surpluses resource planning. Forecasting is the process of deciding what positions the firm will have to fill and how to fill them. Assessing Current Human Resources Assessing Future Human Resource Needs (forecasting) Developing Action plans to meet the HR needs

3.2.3.3. Recruitment & Selection in SCL


Recruitment is the process of seeking & attracting pool of people from Labour Force Population to short listed applicant pool, out of which qualified candidates for job

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vacancies can be chosen. It is the process of locating, identifying, and attracting capable applicants. Identification of vacancies to be filled. Internal recruitment External recruitment: Job Posting in News Papers Job Postings at employment sites such as www.Rozee.pk Campus Recruiting (Job Fairs) By Promotion By Transfers New Vacancy Replacement Vacancy

Company Own Data Bank Physical Filling Record of Dropped Applicant C Vs. (External) Company Employees Data Bank, HRIS (Internal) Company Data Bank, HRIS (External) References based applications which have been tested Internship Candidate CVs CVs from Previous Advertisements (not selected in past) Internal Recruitment: is done by evaluating the current employees Data Base. Potential candidates (employees) are short listed depending upon their skill, knowledge and experience and then referred to concerned department heads for final interview. On Successful Interviews candidates are promoted or transferred. Internal Promotions and transfers play very important role in boosting morale and motivation level of existing employees as the team members become clear that in case of any opportunity, priority will be given to the best available in house source, and work with more dedication.

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Steps of Internal Recruitment include: Selecting Suitable Candidates based on the data available in CVs Preliminary Interviews by Team Tracking Department. Aptitude Test. (Focus on IQ & Team Working Capabilities) Panel Interview Job Offer. After Final Interview selected candidate's profile is sent to the MD (along with recommendation and proposed Salary Package) for Appointment Approval. External Recruitment: In case of Middle Management Recruitment preference is given to well known employment Agencies (like Abacus Consulting or KPMG). In Case of Line Managers and support staff recruitment SCL uses its own Team & Tracking Department for recruitment. Steps of External Recruitment & Selection include: Employee Requisition is send to HR Department. HR Department than issue a form to the department from which requisition is raised. This form is required to fill by the requested department, contains particular information required for that job such as JDs, salary offered, Education, Experience, specialty area, employment status. 1st Preference: On the basis of information supplied, the HR Department gather the application population from the HRIS, if application population is not available in HRIS then advertized in news paper and on employment websites to gather the applicant pool. 2nd Preference: Job Posting by External Agency on Behalf of SCL _ 3rd Preference: HR Consulting agency such as abacus Consulting mdip3iV&r~ Screening of Applications for Interview Calls " Preliminary Interviews according to Job Specification Tests according to Job Specification

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HR Department than recommends Potential Candidates to concerned Department for Final Interviews by SCL Management depending upon the acceptance of the offer by the applicant and availability to fill the vacancy within specified time. Panel Interviews by Department Head along with AM Team & Tracking Dept. for final Selection. Selection ratio is very limited that is around 5% and acceptance rate is 100%.

3.2.3.4. Orientation in SCL


As far as concerned SCL, Orientation is mainly informal by assigning the job to any senior member to introduce the newly appointed employee: Introduction to department peers and seniors Key members of other departments Product line of the company Role and functions of department Organizational chain of command Administrative policies Cultural orientations Working styles of departments

3.2.3.5. Training in SCL


It is the process that involves the acquisition of skills, concepts, rules and attitude to enhance employee's performance and maintain the organizational competency to attain competitive advantage over the industry. In order to analyze the need of training, employees and departments are appraised for GAP analysis. These performances GAP are then categorized as: Resource GAP Competency GAP Motivational GAP

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Effort GAP Constraints GAP On these bases trainings are planed which cover training assessments (GAP Analysis), design of trainings (Contents), Delivery of Trainings (Scheduling and Arrangements) and evaluation of trainings (Trainings tests and Performance Measurements). In SCL the frequency of performance appraisal is quarterly which give the employees assessments and helps in recognizing the need for trainings. Training initiatives could also be raised from any particular departmental head for their subordinates. After finalizing the need for training, the company then analyzes the option of internal trainer or external trainer. In case of external trainer than training contents and modules are finalized against the trainer fees. On the spot customization of contents could also be exercised subject to negotiations with trainer on fees issues. HR department is responsible for all arrangements, resources, availability of trainers and trainees and scheduling. After one week of training, HR department circulates a form required to fill by the trainees covering the trainee's satisfactions, training effectiveness, re-producability, ambiguities and need to revise the training etc. This form only covers the employee feedback and collected formally. Additionally, Sr. Manager of the concerned department is asked by the General Manager about the effectiveness of training. This is just verbal practice and will never be the part of evaluation record. Beside all these short term trainings, there is a provision in Govt. Labour Department that if an employee is working with same organization for certain time and he/she want to upgrade academic profile by taking advance studies, then the company may apply on behalf of that employee to grant the scholarship. Some time companies also grant scholarships covering whole or partial financial aid to that employee for long term trainings or up gradation of academic profile, but in case of SCL there is no any practice.

Training in SCL Include:


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In House Training Seminars, training through the expert management staff within the departments (Mentoring) and at Manager Level, inter departmental trainings sessions are also conducted to improve the horizontal communication and coordinations. Technical and Job Based Training are also organized from Reputed Consulting Firms, where new level of training is required than trainers are outsourced and they are highly paid. This type of training is much more expensive than in house training. Job Rotations these are by virtue of working with other department culture and understanding the working ethics and enhance knowledge. This could also be carried out for inter departmental compatible jobs.

3.2.3.6. Performance Management System in SCL


Performance management is a process used to identify, encourage, measure, evaluate, improve, rewarding employee performance on the basis of quality and quantity of work assigned and achieved, time variances, absenteeism and duty hours completions and over all conduct of employees such as competiveness and attitude within organization to establish and evaluate an individual's job performance to achieve goals and objectives. Different Methods are used in Different Department for Evaluation of Employee Performance: Sales & Distribution Department Achievement of Targets Supply of Products as per demand Production Department Yield Percentage (Productivity) Quality of the Product

Finance Department Management By Objectives (MBO) 360 feed back

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Job Description Performance

Role of performance appraisals includes compensations (money rewards), promotions (uplift in hierarchy), warnings before dismissals and downsizings. In SCL only administrative role of performance appraisal is practiced. Whereas organizational role of performance appraisal is also important which include HR inventory strengths, identify areas of growth and HR development plans. Appraisal sources include self evaluations, subordinates, supervisors, managers and coworkers or peers. Frequency of this performance appraisal system is quarterly but only three quarters are implemented as one month is consumed in each quarter for data collections. In case of 360 appraisals: co workers, subordinates and supervisors appraise within the department at offices level and executive level evaluations. While in case of Assistant Managers and Sr. Managers, additionally interdepartmental evaluation is also exercised. In case of MBO appraisals: quarterly objectives are set by the respective supervising Manager in term of objectives and job descriptions. At the end of each quarter, a meeting is held in which competency and skill form of respective employee is filled which includes self evaluation, cross checked by the supervisor and finally variances are discussed with the employee in meeting. 360 appraisal forms are already collected for that employee before MBO meeting and also discussed weak areas of 360 appraisal report.

3.2.3.7. Compensation System in SCL


It is define as what employees receive in exchange for their work. The synonym of the compensation system is reward system. There are two types of reward systems Intrinsic (intangible, psychological, social effects) and extrinsic (tangible and money matters). Components of reward system include: Direct Reward Indirect Rewards

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Base Pay (individual) Wages Salaries Bonuses Variable Pay (individual, dept., org) Stock options Incentives

Insurance Paid time off Retirement Pensions Worker's compensations

Objectives of Compensation Include: level Employment benefits includes: benefits and services that employees receive as indirect compensation; these benefits are of different nature such as Legal Benefits, Retirement related, Insurance Related & others. Legal benefits include: Social Security, unemployment compensation and workers compensations. Retirement related benefits include: Pension plans & Preretirement plans Insurance related benefits include: Health Insurance, Dental Insurance, Life Insurance and Accident & Emergency Insurance. To attract and keep the desired quality and mix of employees To ensure fair and equitable treatment To motivate employees to improve their performance continually To ensure compensation is maintained at the desired competitive

3.3

Benefits in SCL:
For Higher Management Company Provided Transportation Pick & Drop Facility Free Accommodation

For All Staff Members


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Medical Benefit Life Insurance Paid Holidays Paid Medical Leaves

LEGALLY Social Security

INSURANCE Life Insurance Health Insurance

3.4

Labour Union Relations in SCL

In SCL there no labor Union exists. However all the labor related issues are handled by Personnel Department and play advocacy role on behalf of Labour to the Top Management.

3.4.1 Preparation and collection of applicant's info:


Resumes are collected from applicants. Already present resumes are also collected which are resulted from walk ins and write ins.

3.4.2 Evaluation:
Evaluation of employees is done by using software. This software helps the HR department in evaluation of employees. Evaluation is done on monthly basis.

3.4.3 Feed Back:


For feed back company uses the 360 degree rule. This enables the HR department to get feed back from every level and every side. Further feed back is provided and received by each employee.

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3.4.4 Career development


Career development is the important function of the HR department because all the training programs are initiated by this department and therefore it plays a vital role in career development.

3.4.5 Outsourcing:
HR department also outsource employees which are above manager level. For this purpose this department gets services of a recruiting agency named "Abacus Recruiting Agency Lahore". So Shamim and Co. acts as a client of this agency for hiring of staff members above manager level.

3.4.6 Ensuring safety at the workplace


Providing safe working environment to the employees in the responsibility of the HR department and it has a check over it. Particularly employee's safety is ensured in tile production department in order to avoid the loss.

3.4.7 Transfer and promotions


All the transfer and promotion decisions are made by the HR department. But in case of senior manager a meeting is conducted and the decision is made whether to promote or not.

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3.5

Structure of Human Resource Management:

The structure for Human Resource Management starts from Executive Inchgarge of HR and then Assistant Executive Incharge for HR and then coordinator. The post of coordinator is of two types which include Region Vise and Branch vise. The structure is as under:

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3.6

Human Resource Planning:

The processes by which management ensures that it has the right personnel, who are capable of completing those tasks that help the organization, reach its objectives. Human resource planning refers to the planning of human resource functions, or in other words, planning how human resource management will be executed.

Recruiting Selecting Hiring Orienting Training and retraining Motivating Coaching Mentoring Counseling Recognizing achievements Empowering Communicating Evaluating Promoting Laying off Dismissing

3.7
a)

Human Resource Planning (HRP) Process:


Determine the organizational mission

It states Shamim & Co,s overall purpose and basic business scope and operations it provides information.

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b)

Scan the organization environment: This is known as SWOT analysis

through this process Shamim & Co,s HR department identifies opportunity, threat, strength and weakness that can be faced by the Shamim & Co. c) d) S e t s t r a t e g i c g o a l s : Set specific long term and short term goals and Formulate a strategic plan: Course of action is designed to meet strategic goals objectives. These goals are specific, challenging and measurable. and departmental goals are selected at this step.

3.7.1

These are steps of HRP process. Determining the objectives Defining skills required to meet objectives Determine additional human resources requirements in light of current HR. Develop action to meet the anticipated HR needs

3.8

Human Resource Management Forecasting:

Shamim & Co. uses different techniques to determine the human resources required that involve identifying the jobs, skills and knowledge required by those jobs and the performance level of the current workforce. Using this data, it can forecast hiring or reorganizing needs for both the short and long term. Forecasting methods typically includes using past data to predict future staffing. Additionally, Shamim & Co. can use survey, benchmarking and modeling techniques to estimate workforce staffing numbers. Use several methods and cross-check your findings to obtain the most accurate results.

Step 1
Analyze work operations. Conduct a detailed job analysis for each function by company and list the policies and procedures required to complete each task. Document the

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standard output per hour per person. Determine the desired level of output in order to calculate the number of people you need to produce that volume of operations.

Step 2
Conduct a series of online surveys using the Delphi technique--asking several experts in Shamim & Co. their opinion on forecasting needs based on their experience managing the employees in your organization who directly contribute to the creation of products or services. Experts typically do not share their opinions with each other. Create and distribute the survey using a tool to gather data. Examine the input and prepare a forecast. Send the forecast to the original participants to get their new input. Repeat the survey process until all participants reach consensus that the forecast appears accurate.

Step 3
Use calculators available from the Society of Human Resource Management to calculate metrics such as the average length of service and 90-day turnover rates based on its current human resources data. Use this information to help predict future staffing needs.

Step 4
Read reports available from the Department of Commerce on workforce planning needs to help you learn about trends and forecast your budget for hiring, training and paying staff required to compete in a global marketplace. For example, the Department of Defense estimates it spends huge amount annually to support workforce foreign language needs.

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Step 5
Document the forecasting process and follow it consistently throughout the company so that all managers align their forecast to your strategic direction, identify skill gaps, create action plans to address shortages, implement plans to hire and retain skilled personnel and evaluate forecasts on an ongoing basis. Using this model, Shamim & Company can more accurately guide workforce planning efforts for all skill areas such as information technology and knowledge management.

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3.10 EMPLOYMENT AGENCY


Shamimn & Company does not consult any employment agency for its recruitment process.

3.10.1 ADVERTISING MEDIA


Advertisement is done through print media as Newspaper in order to attract applicants. Especially daily Jang will be preferred for advertisement.

3.10.2 APPLICATION FORMS


Almost all organization requires job candidates to fill out an application. The application might be a form on which the person gives his or her name, address, and telephone number. Or it might be a comprehensive personal history profile, detailing the persons activities, skills and accomplishments.

3.11 EMPLOYMENT SELECTION PROCESS


All of the process from recruitment to training is done in the main head office of Shamim & Company in Lahore. Selection process consists of following procedures.

3.11.1 POLICY
It is the Companys policy 1. To lay down procedures for recruitment and promotion of employees. 2. To lay down procedures to select right men for the right jobs on merit in order to attain optimum efficiency and productivity

3.11.2 OBJECTIVE
The objective of the policy is: - To establish a fair & rational system for recruitment and promotion of employees.

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3.11.3 SELECTION BOARD/COMMITTEE


The Competent Authority may constitute the selection committee for recruitment of employees. The recommendations of the selection committee shall be referred to the competent authority for final selection and approval, as laid down in the Recruitment Procedure for Council Employees attached as Annexure to regulations. 1. All employees of the Shamim & Co. will be appointed through advertisement in the Press except grade S4. 2. The quorum for selection board will be 50% of the total member of selection board including HR Manager. 3. If President of selection board can not chair due to any reason, he may request any member of selection board to chair the Board.

3.11.4 WRITTTEN TEST


In Shamim & Co. written test of all applicants is conducted by the HR Department. The test includes almost all areas depends upon nature of the job. Those applicants who qualify are invited for an interview. The criteria of written test are change upon nature of job

3.11.5 INTERVIEW
Short listing is done on the basis of academic record and written test and these short listed candidates are called for an interview. Interview process is done in the main head office Shamim & Co. at Lahore.

3.11.6 EMPLOYEES PLACEMENT


Selected employees are appointed to the position for which they are selected at desired of Shamim & Co near to his home station etc.

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3.11.7 APPOINTMENT OF TEMPORARY (Daily Basis)


The Production Manager with permission of HR Manager and Director may appoint any person on temporary basis depending on the requirements. Such appointments vary with the variations in season.

3.12 EMPLOYEE DEVELOPMENT


3.12.1 WHAT IS EMPLOYEE DEVELOPMENT?
Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done. Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain inexperience and knowledge. Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain inexperience and knowledge.

3.13 WHY SHOULD EMPLOYEE SKILLL & ABILITIES BE DEVELOPING?


Employee development programs make positive contributions to organizational performance. A more highly skilled workforce can accomplish more as the individuals gain in experience and knowledge. In addition, retaining an employee saves the organization a great deal of money. One method of retention is to provide opportunities to develop new skills. In research conducted to assess what retained employees, development was one of the top three retention items. 1. Improve Employee Performance 2. Develop New Managers 3. Recognizing and developing high-potential employees
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3.13.1 IMPROVE EMPLOYEE PERFORMANCE We can create a customized, in-depth developmental plan for each of your employees by pinpointing their abilities, motivations and growth opportunities. When individuals have clear expectations and learn specific strategies for maximizing their potential and improving performance, they feel valued, motivated and invested in their own professional development, as well as in the growth of the company 3.13.2 DEVELOP NEW MANAGERS Most people in managerial positions have had little or no management experience or training before taking on their current roles. And problems often occur because the individual's initial expectations, as opposed to the real responsibilities of the position, are entirely different. When people are promoted to management positions for the first time, it is vital that appropriate tools, techniques and guidance are provided to make a successful transition from being a member of the team to leading the team. Caliper can help new managers hone the skills required for making decisions, managing priorities, developing others, communicating effectively and getting projects completed through delegation. 3.13.3 RECOGNIZING & DEVELOPING HIGH POTENTIAL EMPLOYEES Pinpointing and developing high-potential employees is the main ingredient to ensuring your organization's continued success. Whether it's preparing them for a high-level role or helping them take on more responsibilities, acknowledging your top performers will help you retain valuable employees and set themand your companyup for future success. Caliper can work with you to discover the competencies necessary for success in your organization, to conduct Three Sixties to determine who has leadership potential and to begin development programs so your high-potential employees are ready take on more responsibility when you need them to.

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3.14 PERFORMANCE MANAGEMENT


3.14.1 SETTING PERFORMANCE STANDARD & EXPECTATION
The success of your business is directly related to the commitment and productivity of the people who work in your business. And yet it is generally recognized that 60% of employees, or more, are underutilized in their role sat work. So what are the factors that contribute to low performance standards and expectations?

Communication, or miscommunication, is one of the major sources of low productivity. The messages that move between the owner, employees, managers and even customers are not understood in the same way. One classic example is that business owners tend to assume that employees and managers see things the same way they do. Managers tend to lower their expectations (unconsciously) so that they will not have to confront employees. Most people dislike discussing declining performance with their employees, and so actively avoid having to do so by reducing heir expectations of whats required. Employees have a tendency to protect themselves from possible failure by pushing back on what is expected. They will often negotiate/bargain the job down to a more comfortable level

3.14.2 PERFORMANCE REPORTS WRITING PROCEDURE


Every employee will be appraised on the basis of his / her performance, achievement of goals, general conduct, communication skills, pear relationship, teamwork, and academic and professional qualifications. 1. Appraisal shall primarily be done by the immediate supervisor on prescribed Performas. 2. The appraisal shall be done on yearly basis for the period ending June30 for each employee.

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3. The process of performance appraisal shall be initiated by the Administration / HR Department of Shamim & Co. and shall be completed within 3 week of receipt of performance appraisal forms by the respective in charge. 4. While rating and employee on two extreme positions in outstanding or bad (unacceptable) the appraiser will justify by recording his comments giving particular instances for arriving at such conclusions. 5. Competent Authority will finally approve the recommendations.

3.15 EMPLOYEE COMPENSATION AND BENEFITS


3.15.1TYPES OF COMPENSATION AND BENEFITS
These are the following types of compensation and benefits are in Shamim & Co..

3.15.1.1

ANNUAL INCREMENT IN THE SALARY

The Chairman will issue increment policy for each year (1st July 30 June)and appointing authority for the various posts will sanction annual increment to the employees as per increment policy issued by the Chairman for that year. The increment annual shall accrue on 1st July each year subject to the condition that the employee will be entitled to the increment if he/she has rendered at least six months continues service on 30th June. The annual increment will be given to all employees as per increment policy for the year. The increment of an employee may be withheld on account of unsatisfactory performance or on account of disciplinary action based on misconduct and the employee shall be informed accordingly.

3.15.1.2

PERFORMANCE INCREMENT

The Chairman will issue increment policy for each year (1st July 30 June)and appointing authority for the various posts will sanction performance increment to the employees as per increment policy issued by the Chairman for that year. The performance increment shall accrue on 1st July each year subject to the condition that the employee will be entitled to the increment if he/she has rendered at least six

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months continues service on 30th June. The performance increment will be give to the selected employees base on the overall performance evaluated of the employee during the year as per increment policy for the year

3.15.1.3

SPECIAL ADDITIONAL MERIT INCREMENT

The Chairman may grant special additional merit increment to any employee based on his/her exceptional services / performance beyond the call of the duty

3.15.1.4

PROVIDENT FUND

An employee after confirmation in service shall be entitled to become the member of the employee provident fund scheme of the Council. A deduction@ 10% of the basic pay shall be made from the salaries with equal contribution for Shamim & Co. secretariat Employee from Shamim & Co. account to Employees account. The administration of provident fund will be done by the trustees house in Human Resource Management Department in accordance with laid down provident fund rules /regulations approved by the Council and as permissible under income tax laws.

3.15.1.5

Group Life Insurance Scheme

All permanent employees will be insured under a group life scheme for the amount prescribed from time to time by the management, payable in the event of his/her death during service in accordance with the terms & conditions of Group Life Insurance Scheme approved by the Council. Premium under this scheme shall be fully paid from Shamim & Co. accounts to all employees respectively.

315.1.6

Group Health Insurance Scheme

Under the Group Health Insurance Scheme hospitalization and other charges for treatment at a hospital other than food shall be provided to all permanent employees and their families through a health insurance scheme in accordance with the terms & conditions of Group Health Insurance Policy.

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The Chairman is authorized to frame the health insurance policy and approved the terms and conditions of health insurance with reputable insurance companies subject to Council ratification.

3.15.1.7

Leave Fare Assistance

Permanent employees shall be eligible to leave fare assistance equal to one month gross present salary in a calendar year for completed year of service provided the employee is granted earned leave for not less than 10 days at the time of availing the LFA. Leave fare assistance is to be availed in the same year it is granted. However, it may be accumulated for two years incase earned leave is refused due to exigency of service. The period of earned leave in any will not be less than 10 days.

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3.16 ORGANIZATION CAREER MANAGEMENT


Career management/planning are the process of making and implementing career decisions. Ideally you should start the process well before your final year, but you can start at any stage. An effective career plan requires all the elements in the career planning. You may find you have already explored some of them. It really does not matter where you start as long as you cover all the elements. You should find the process helpful whether you have a clear vision or no ideas what you want to do and you should be able to apply this process throughout your working life .Careers service staff are keen to help, but the commitment to tackle the process must be yours. If you are unsure where to start we suggest you begin with 'What I want and what I have to offer'

3.16.1

TEN STEPS TO PLANNING YOUR CAREER

1. Develop a career plan. Think about what you want to do and find out more about the kind of training, education, and skills you will need to achieve your career goal 2. Assess your skills and interests. Think hard about what you enjoy, are good at, what kind of personality you are, and the values you hold. 3. Research occupations. Find out more about the nature of the jobs that interest you, such as educational requirements, salary, working conditions, future outlook, and anything else that can help you narrow your focus. 4. Compare your skills and interests with the occupations youve selected. The career that matches your skills, interests, and personality the closest may be the career for you. 5. Choose your career goal. Once you've decided what occupation matches up best with you, then you can begin developing a plan to reach your career goal. 6. Select a school that offers a college degree or training program that best meets your career goal and financial needs. 7. Find out about financial aid to help support you in obtaining your career goal. If you haven't already done so, begin saving for college. what you

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8. Learn about job hunting tips as you prepare to graduate or move into the job market. 9. Prepare your resume, and practice job interviewing techniques. 10. Go to your career guidance center (at your middle school, high school, or college) or local library for additional information and help on career planning, or check out our Other Internet Resources.

3.16.2

EMPLOYEE JOB CHANGES

Employee attitudes toward job changes, Management enforced job change and employee perceptions of the psychological contract examine employees contractual responses to enforced job change. Some job changes may be voluntary. You may be unhappy with your present employer. Any two appointing authorities may authorize a lateral job change or voluntary demotion for an employee between organizations. In Shamim & Co. the employee may be moved from Main office to sub offices and from Head Office to Multan Office into other department regarding same position and same scale.

3.17 Jobs Changes within the Organization:


These are the following points be capable to a person for promote, transfer and enforce for job changes;

Abilities (aptitude) Skills Interests Values (what motivates you) Personal qualities Preferred lifestyle

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3.17.1
1. 2.

Promotion:
Promotion is the discretion of the management and cannot be claimed as a matter of right. Vacant posts of Council will be filed with existing employees as possible who fulfill the eligibility criteria (Both Qualification and Experience) of that post to which one is being promoted.

3.

Employee may be considered for promotion in the next grade based on performance / circumstances provided they have completed a minimum of 3 years of service in the existing grade.

4.

Chairman will be the competent authority to approve cases for accelerated promotion of employees based on exceptional performance / circumstances by relaxing condition of 03 years service.

5. 6. 7.

Employees if promoted will get promotional increase of up to 10%or minimum of new pay scale which ever is higher to the promoted employee. Proposals for promotion of eligible employee will be considered once in a year. Total process is completed by 1st October of each year. The proposal for promotion of employee will be forwarded by the immediate supervisor to the Competent Authority of that post in which one is being promoted on the basis of his / her performance. The Competent Authority will constitute a Promotion Board to review the promotion proposals on the basis of employees annual appraisal, performance, results of in house examination/test, qualifications achievement and make of goals, general conduct, for his communication skills, pears relationship, and team work, academic & professional recommendations consideration/approval.

8.

If an employee has reached the maximum limit of his / her present pay scale and has not been promoted to the next grade, he will continue to receive increment in salary according to increment policy for the year subject to the condition that total emoluments do not exceed the maximum limit of next higher grade w.e.f. 01.07.2007. As an example date, month and year.

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3.17.2

Transfer:

Moving employees either laterally or downward; usually does not reduce costs but can reduce intra organizational supply demand imbalances. Every employees shall be liable to serve anywhere within the province against any post. Transfer occurs when an employee is moved from one job to another position that is relative, equal in pay, responsibility or organizational level. Employees can be transferred from one station of Shamim & Co. to any other station and head office(Lahore).

3.17.3

Demotion:

Demotion occurs when an employee is moved from one job to another position that is lower in pay, responsibility and/or organizational level. Demotion is used as a tool of punishment, but it is temporarily. The Competent Authority will be authorized to initiate disciplinary action against any employee on the basis of his own knowledge or on information placed before him, in accordance with Rules / Regulations and the provisions of any law for the time being in force, applicable HR Department. The following types of punishments or any other punishment as the competent authority may decide on recommendations of the inquiry committee depending upon the nature of each offence/charge may be imposed

3.18 SEPARATION: 3.18.1 Lay off

Temporary involuntary termination; may last only a few days or extended to years. The Competent Authority will be terminate/dismiss any employees in accordance with Rules & Regulations after giving one month notice. It is applicable over all the employees.

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3.18.2

Termination:

Every employee will be entitled to a service certificate on resignation /termination from service as per noted as indicated in appointment letter. An employee whose services are terminated on account of misconduct shall not be entitled to be paid any pay and other benefits. Employment of any employee who is on contract basis can be terminated on the completion of contract or contract period

3.18.3 Resignation
Every employee will be entitled to a service certificate on resignation /removal from service as per noted in appointment letter. Resignation of employee can terminate employment; similarly attrition can terminate employment permanently. Employees sometimes need to leave their job temporarily. The reasons may include medical or educational purpose

3.18.4 Retirement:
According to rules & regulations designed by HR department for the employees service, all employees of Shamim & Co. shall retire from service on attaining the age of 60 years.

3.19 Labor Management Relationship:


The field of labor relations looks at the relationship between management and workers, particularly groups of workers represented by a union. Labor relations is an important factor in analyzing "varieties of capitalism", such as neo corporatism (or corporatism), social democracy, and neoliberalism (or liberalism).Labor relations can take place on many levels, such as the "shop-floor", the regional level, and the national level. The distribution of power among these levels can greatly shape the way an economy functions. Another key question when considering systems of labor relations is their ability to adapt to change. This change can be technological (e.g., "What do we do when an industry employing half the population becomes obsolete?"), economic (e.g., "How do we respond to globalization?"), or political (e.g.," How dependent is the system on a

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certain party or coalition holding power?").Governments set the framework for labor relations through legislation and regulation. In Australia labor relations is the commonly used term, though in recent years the term workplace relation has also become common. This was a prominent issue in the defeat of the centre-right Howard Liberal government tat the 2007 federal election, who with a Senate majority had introduced the Work Choices policy. The academic discipline of labor studies is closely related to and often studied and taught in conjunction with the study industrial and labor relations in English language universities

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4.1 FINANCIAL ANALYSIS


4.1.1 LIQUIDITY RATIOS:
These ratios are important in measuring the ability of a company to meet both its short term and long term obligations. Working Capital Working capital is an indication of the short run solvency of business Working Capital = C.A C.L. Year CA CL Working Capital 2005 2006 34317964 390387892 0 28025363 326286103 5 62926005 64101789 2007 46846547 0 37522901 8 93236452 2008 2009 562158564 674590277 431513371 496240376

130645193 178349901

L IQUIDITYR AT IOS
7 00000000 600000000 500000000 400000000 values 300000000 200000000 1 00000000 0

CA CL WorkingCapital 2005 2006 2007 2008 2009 year

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4.1.2 Current Ratios Current Ratio


Years CA CL Current Ratio

=
2005 34317964 0 28025363 5 1.2

C. A C. L

2006 39038789 2 32628610 3 1.2

2007 468465470 375229018 1.25

2008 562158564 431513371 1.30

2009 674590277 496240376 1.36

C urrent R atios
7 00000000 600000000 5 00000000 400000000 values 3 00000000 2 00000000 1 00000000 0

C A C L C urrent R atio 2 005 2 006 2 007 2 008 2 009 Years

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4.1.3 ACID- TEST RATIO


This ratio is like the current ratio but excludes current assets such as inventories and prepaid expenses that may be difficult to quickly convert into cash. Quick Ratio=Quick Assets / Current Liabilities Years CA CL Q Ratio 2005 42218250 280253635 0.1506430 1 2006 49449960 32628610 3 0.151554 2007 57856450 37522901 8 0.1541897 2008 67692050 431513371 2009 79876619 496240376

0.15687127 0.16096356

DEBT MANAGEMENT This is the most common measure of the ability of a firms operations to provide protection to the long-term creditor.

ACID - TES TRATIO


5 00000000 400000000
values

3 00000000 2 00000000 1 00000000 0 2 005 2 006 2 007 2 008 2 009


Y ears

C A C L Q Ra tio

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4.1.4 TIME INTEREST EARNED


TIE = EBIT /INTEREST EXPENSE YEAR EBIT Interest Exp TIE 2005 13130022 1644312 8 2006 15544100 1061878 15 2007 18432038 1536003 12 2008 21643604 1812483 11 2009 25539453 2138730 12

TIMEINT E R E S TEAR NED


30000000 25000000 20000000 Values 1 5000000 1 0000000 5000000 0

EB IT Interest Exp TIE 2005 2006 2007 2008 2009 Y ears

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4.1.5 DEBT RATIOS:


This ratio measures what portion of a companys assets is contributed by creditors. DEBT RATIO: TD / TA YEAR TD TA Debt Ratio 2005 28127523 5 38516561 9 73% 2006 32730770 3 43979560 4 74% 2007 37640385 8 52775482 0 71% 2008 2009 43286443 7 497794102 63330578 5 759966942 68% 65%

DEBT RATIOS
800000000 7 00000000 600000000 500000000 Values 400000000 300000000 200000000 1 00000000 0

TD TA D ebt Ratio 2005 2007 Y ears 2009

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4.1.6 D/E RATIO:


This ratio indicates the extent to which debt is covered by shareholders funds. It reflects the relative position of the equity holders and the lenders and indicates the companys policy on the mix of capital funds. D/E = TD / TE YEAR TD CE D/E 2005 28127523 5 10389038 4 2.71 2006 32730770 3 11248790 1 2.9 2007 376403858 151350962 2.5 2008 432864437 200441348 2.2 2009 497794102 262172840 1.9

D/ERATIO
5 00000000 400000000 Valu es 3 00000000 2 00000000 1 00000000 0 2 005 2 006 2 007 2 008 2 009 Y ears
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4.1.7 ASSET MANAGEMETNT


These ratios are important in measuring the efficiency of a company Days sales in receivable Shows both the average time it takes to turn the receivables into cash and the age, in terms of days, of a company's accounts receivable.

Days sales in receivable =


YEAR A/R Sales DSO 2005 16881442 84995292 6 7

Gross Re ceivables Net Sales / 365

2006 15527617 885258201 6

2007 20156759 106230984 1 7

2008 23180273

2009 26657334

1274771809 1529726171 7 6

AS S ET MANAGEMETNT
2000000000 1 500000000 Values 1 000000000 500000000 0 2005 2006 2007 2008 2 009 Y ears
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4.1.8 TOTAL ASSET TURNOVER


A company's effectiveness is generating sales revenue from investments back into the company. The higher the Total Asset Turnover is the more effective use of the company's investments. Total Asset Turnover can be very useful if you watch what actually makes up the Total Assets of the company. A company with low inventory and strict credit policies to keep Accounts Receivable low will help the Total Asset Turnover look even better. Of course it depends on all of the company's Total Assets.

TAT = SALE / TA YEAR Sales TA TAT 2005 84995292 6 38516561 9 2.21 2006 885258201 439795604 2 2007 106230984 1 527754820 2 2008 127477180 9 633305785 2 2009 1529726171 759966942 2

TOTALAS S E T TUR NOVE R


1 600000000 1 400000000 1 2 00000000 1 000000000 Values 800000000 600000000 400000000 2 00000000 0

S ales T A T AT 2 005 2 006 2 007 2 008 2 009


66

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4.1.9 Inventory Turnover


This ratio measures the number of times merchandise is sold and replaced during the year Inventory turnover: Cost of goods sold/ Average Inventory YEAR CGS A Inventory ITO 2005 58722774 0 30096139 0 2 2006 644574970 340937931 1.9 2007 74126121 5 38866924 1 1.9 2008 2009

852450397 980317957 443082935 505114546 1.92 1.94

InventoryTurnover
1 000000000 800000000 Values 600000000 400000000 2 00000000 0 2 005 2 006 2 007 2 008 2 009 Y ears C GS A Inventory ITO

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4.1.10

PROFITABILITY RATIOS:

Profitability Ratios show how successful a company is in terms of generating returns or profits on the Investment that it has made in the business. If a business is liquid and efficient it should also be Profitable.

4.1.10.1

RETURN ON EQUITY (ROE)

The Return on Equity of a company measures the ability of the management of the company to generate adequate returns for the capital invested by the owners of a company. Generally a return of 10% would be desirable to provide dividends to owners and have funds for future growth of the company

ROE = N.I / C.E YEAR NI CE ROE 2005 11485710 10389038 4 11% 2006 14482222 11248790 1 13% 2007 18102777 151350962 12% 2008 22628471 200441348 11% 2009 28285589 262172840 11%

RETURN ON EQUITY(ROE)

3 00000000 2 5 0000000 2 00000000 Va lues 1 5 0000000 1 00000000 5 0000000 0

NI C E ROE 2 005 2 006 2 007 2 008 2 009 Years


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4.1.11

RETURN ON ASSETS:

The Return on Assets of a company determines its ability to utilize the Assets employed in the company efficiently and effectively to earn a good return. The ratio measures the percentage of profits earned per dollar of Asset and thus is a measure of efficiency of the company in generating profits on its Assets.

ROA= N.I / TA YEAR NI TA ROA 2005 11485710 38516561 9 3% 2006 14482222 439795604 3.30% 2007 18102777 527754820 3.40% 2008 22628471 633305785 3.60% 2009 28285589 759966942 4%

RETUR NONAS S ETS


800000000 7 00000000 600000000 500000000 Values 400000000 300000000 200000000 1 00000000 0

N I TA R OA 2005 2007 Y ears 2009


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4.1.12

NET PROFIT MARGIN:

The Profit Margin of a company determines its ability to withstand competition and adverse conditions like rising costs, falling prices or declining sales in the future. The ratio measures the percentage of profits earned per dollar of sales and thus is a measure of efficiency of the company.

NPM= NI /SALE
YEAR NI Sales NPM 2005 11485710 849952926 1.35% 2006 14482222 885258201 1.64% 2007 18102777 1062309841 1.70% 2008 22628471 1274771809 1.80% 2009 28285589 1529726171 1.85%

NET PROF IT MARGIN


2 000000000 1 5 00000000 V alues 1 000000000 5 00000000 0 2 005 2 006 2 007 2 008 2 009 Years
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5.1

SWOT ANALYSIS

The over all evaluation of the company's strengths, weaknesses, opportunities and threats is called SWOT Analysis. In general a business unit has to monitor key macro environment and significant micro environment factors that affects its ability to earn profits. The business unit should set up a marketing intelligence system to track trends and important developments.

Market Opportunity
A marketing opportunity is an area of buy need in which a company can -perform profitably.

Environmental Threat
An environmental threat is a challenge posed by an unfavorable trend or development that would lead in the absence of defensive marketing action to deterioration in sales -or profit.

Strengths
The marketing financial manufacturing and organization competencies of an organization and its resources a considered its strengths.

Weaknesses

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The extent to which an organization is failed to get competitive advantage in a dynamic environment.

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5.1.1 Strengths

Quality (product service, systems) Quality of people (trained, motivated, committed) Better sales planning because of systems Dominance in National / Local Accounts Ideal distribution mix The confidence of public and good repute that attracts the investor. High profit rate. Strong financial position. Well organized network of business operations. Cooperative and team oriented. Excellent Workplace. Efficient management that can take the heavy risk. Vital role in economic development. Standard product and consistent quality. Good consumer perception about product. Knowledge of market and consumer demand. Rapidly increasing market share. The best marketing strategy. Latest and consistent production technology. Awarding the hard work staff. Motivation to the staff. Best interaction with suppliers and buyers. Interaction with internal resources. Communication system in place as e-mail, fax, internet.

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Easy access through internet. Heavy tax Payer Company in Pakistan.

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5.1.2 Weaknesses
Weak infrastructure at distributor level for market coverage Outlet level secondary sales data in indirect market Insufficient salaries low level employees No more motivation and encouragement for employees in form of incentives and entertainment program. High turn over of employees. Unable to fulfill the demand requirements

5.1.3 Opportunities
Growth prospects in new brands like Mountain Dew Sales expansion through improved brand equity Coverage improvements Cooler and deepfreeze injections Loyalty of retailer and wholesaler can create loyal consumer. Contract with good suppliers can enhance the market share. Social responsibilities. New style management. New brand introduction. New technology emergence. Trading term legislation as no price for creating customer loyalty. Efficient managers hiring. Low cost skilled person availability.

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5.1.4

Threats

Heavy discounting, free sampling and monthly incentive to the trade (even ill general markets) Empty lifting Emergence of B-Brands (Amrat cola etc) and high growth in spurious drinks Strong competitors (Coca-Cola). Increasing investment of competitors. Rapid changes in demand due to seasonal reasons. Inflexible and rigid environment. Inflation. Low-income level. Growth of lemon industry. High distribution cost to reach for off areas. Long and complex documentation for issuing of chiller. Changes in consumer purchasing power.

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5.2

PEST ANALYSIS

5.2.1

Political Pakistan despite all internationals & public perceptions today is a functioning

democracy & gradually there is a change in completion & composition of legislatures with more educated people exerting into politics, similarly it helps in designing best strategies to implement that could support the rivals of that companies. Some governmental issues impact as there should maximum 7000 salary of every worker. 5.2.2 Economical There are no as such economical issues in shamim & Co. limited. 5.2.3 Societal There are so many societal issues in SCL. He major issue is that due to heavy traffic there are let of problems create in distribution, in day timing, so distribution takes place in evening timings. 5.2.4 Technical There are no as such as technical problems of technology or experts. Senior trains the unexperienced people. SCL performs computerized work due to latest technology.

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5.3

SUGGESTIONS & RECOMMENATIONS


The domain of Human Resource Department is limited to only Finance Division. It should be centralized Human Resource Department, so that departmental integrated Human Resource practices can be practiced, as HR department only exist in the form of team tracking department under the Finance Division. It should also take up the recruiting, selection, training, appraisals and compensations functions of other departments such as Operations, Sales & Distribution, Productions, Accounts, Administration and research Departments. There should be centralized roles of Human Resource Departments, as team tracking department is just performing operational role and other branch of HR department known as Personal Department is performing administrative role. Only two roles are functioning out of four important role of Human Resource Department, other two roles are Strategic Role and Employee Advocacy Role which are not in practice. In Recruitment process, the short listings of the candidates are done by human resource executive on the basis of vacancy requirements provided by the departmental head or Sr. Manger. These requirements should not consider as benchmark and short listings should carry out with the consent of Manger of respective departments. There is no any management trainee program which should be started to encourage young blood and fresh graduates. In Selection Process, preliminary testing is carried out which consists of IQ, academic and written ability test. In this connection there is need to induce other portions as well such as social aptitude, integrity and decision making test. Additionally the applicant should also be investigated about background history such as drug test, police record and affiliation to political activities etc. All these records should be collected before the panel interview so that question could be raised.

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There is only informal orientation practice of newly appointed employees. This should be formal orientation, so that the newly inducted employee obtain max knowledge in minimum time span and start functioning at a required pace. Training brings the specific competencies in human capital and turn organization more competitive in the industry, so there should be object oriented appraisals to assess the need of trainings. Training initiatives should be taken by the HR department based on critical GAP analysis. Trainings should be evaluated on the basis of employee testing & performance and recorded in formal way, not only on the basis of employee satisfaction. The trainings are conducted for organizational satisfaction i.e. performance, efficiency, cultural and cost benefit analysis. The appraisal system is quite frequent but there is need to revise the chain of evaluators in certain levels of hierarchy, such as incorporation of distributor feedback for sales staff appraisals and department to department evaluation about communication and coordinations. The purpose of appraisal system is not only to reward the employees and make them encourage or warn, other aspects of appraisal system is to assess short comings of organization human capital and develop the training programs. Additionally companies also practice to count human intellects as asset and develop annual strengths reports about human capital inventory. The Human Resource Department should update their knowledge about the candidates requirements for particular departments, such as Chemical Engineers are inducted in production department where as PET Bottling is related to Polymer Engineering field. In this context a Chemical Engineer would not be capable over Polymer Engineer. The academic specialties should be encouraged otherwise discrimination arises.

5.4

Slogans through Time


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Pepsi-Cola has different slogans through its history. They remained much known. These are given below. This is also an important part of Pepsi-Cola.

1898 1903 1906 1908 1915 1919 1920 1928 1929 1932 1933 1934 1938 1939 1943 1947 1949 1950 1954 1958 1961 1963 1967 1969 1973

Brad's Drink Exhilarating, Invigorating, Aids Digestion Original Pure Food Drink Delicious and Healthful For All Thirsts - Pepsi: Cola Pepsi: Cola - It makes you Scintillate Drink Pepsi: Cola - It Will Satisfy You Peps You Up! Here's Health! Sparkling, Delicious It's the Best Cola Drink Double Size Refreshing and Healthful Join the Swing to Pepsi Twice as Much for a Nickel Bigger Drink, Better Taste It's a Great American Custom Why Take Less When Pepsi's Best? More Bounce to the Ounce The Light Refreshment Refreshing Without Filling Be Sociable, Have a Pepsi Now It's Pepsi for Those Who Think Young Come Alive! You're in the Pepsi Generation Taste that Beats the Others Cold, Pepsi Pours It On. You've Got a Lot to Live, Pepsi's Got a Lot to Give Join the Pepsi People Feelin' Free

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1976 1979 1981 1983 1984 1987 1989 1992 1993 1995 1997 1998 1999 2000 2003 2005 2007 2009 2011

Have a Pepsi Day! Catch That Pepsi Spirit Take the Pepsi Challenge Pepsi's Got Your Taste for Life Pepsi Now!

The Choice of a New Generation America's Choice A Generation Ahead Gotta Have It Be Young, Have Fun, Drink Pepsi Nothing Else is a Pepsi Generation Next Same Great Taste The Joy of Cola The Joy of Pepsi Pepsi. It's the Cola Dare for more Dil hai to mango or Dunya hai dil walon ki Dunya hai dil walon ki

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5.5 References:
http://www.scl-pepsi.com Stepehn P Robins Principle of Management 10th Edition by National Book Foundation Islamabad, chapter 10 David, Human Recourse Management, National Book Foundation Islamabad John H Jackson Training & Development 9th Edition By Commission on the Future of Worker-Management Relations. 12th Edition. Annual Publications of Shamim and Co.

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5.6 ANNEXURE
5.6.1 Annexure

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5.6.2 Annexure

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5.6.3 Annexure

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