Professional Documents
Culture Documents
Submitted By:
Khalil Ur Rahman
Internee, IR
ACKNOWLEDGEMENT
First of all I would acknowledge ALLAH ALMIGHTY whose blessings are always
there to guide me and lead me towards successes and accomplishments in
life.
Before starting my report I would like to thanks the officials and management
of Packages Limited, who provided me a wonderful opportunity of learning in
such a big organization. I would also acknowledge the support and guidance
that my supervisors provided me throughout my internship period.
I would like to express my sincere gratitude to, Mr. Akram (IR Manager), and
Mr. Imran Ellahi (Assistant Manager) who provided me opportunity to work in
the practical environment and His constant encouragement, sincere advice,
suggestion and import ant discussion to valuable accomplish of my training
program. Without their guidance, I would never be able to gain the
confidence and precision in my work. I would also like to pay my gratitude to
all the people, without whose input this report could not have been
completed. And, of course, I am most indebted to my parents without their
support, encouragement and prayers this work would have never been
possible.
EXECUTIVE SUMMARY:
This Internship report will be describing the industry profile of Packages Ltd,
that in which industry they are in and how that industry is working. This
summary also comprises of Packages Ltd.s company profile describing all
the information of the company that what it is about what it does, where it
functions and how well it is going. The report also shows the way the
business process happen in the Packages Ltd. What are the different
departments in Packages Ltd.? And how they work with each other. The
SWOT Analysis will tell the strengths of company which get laden due to
some weakness. As we are in Pakistan there are many threats to a business,
hence Packages capitalizes on the opportunities to defeat all the threats to
make everything go their way. Hence its a comprehensive view of the
strengths overcoming the weaknesses and the threats minimized by using
the opportunities.
Atlas but not least, the report tells the problems that company faces. And
how can they solve them, as no business can work wonders without finding
gaps and helping themselves to attain and maintain a better position in the
industry. Hence the report mentions many tiny problems which need
attention in order to further best in the industry.
Established in 1956 as a joint venture between the Ali Group of Pakistan and
Akerlund and Rausing of Sweden, Packages Limited provides premium
packaging solutions for exceptional value to individuals and businesses in
the most efficient, profitable and sustainable way. We offer a complete range
of packaging solutions including offset printed cartons and flexible packaging
materials to individuals and businesses world-wide. Our clientele includes
illustrious names such as Unilever and Pakistan Tobacco Company, who have
been our customers for over 50 years. We employ over 1500 people and had
sales of over US $ 141 million in 2013.
Listed on all three stock exchanges in Pakistan, Packages Limited has
maintained a long-time credit rating of AA. Our joint ventures and business
alliances with some of the world's biggest names reflect our forward-looking
Packages Limited was established in 1956 as a joint venture between the Ali Group
of Pakistan and Akerlund & Rausing of Sweden to convert paper and paperboard
into packaging for the consumer industry.
Over the years, Packages has continued to enhance its facilities to meet
the
growing
demand
of
packaging
products.
In 1968, with IFC participation, Packages integrated upstream by
establishing a Pulp and Paper Mill with a capacity of 24,000tons per year
based on waste paper and agricultural by-products i.e. wheat straw and river
grass. With growing demand the capacity was increased periodically and in
January 2003, total capacity was nearly 100,000 tons per year.
In 1981, Packages modified a paper machine to produce
response to growing awareness and demand for hygienic
tissues. The Rose Petal brand name was launched with facial
later expanded to include toilet paper, kitchen roll, and
tissue paper in
and disposable
tissues and was
table napkins.
PM-7, De-inking Pulp Plant, 41MW Power House, Steam Turbine and
Secondary Effluent Treatment Plant was completed in the year 2009.
In 2008, the Company embarked upon capacity expansion in its tissue
division through installation of a new tissue paper manufacturing machine
PM-9 with production capacity of 33,000 tons per annum. With this capacity
expansion, the Company is now in a position to take benefit from export
potential of tissue products in the international market, particularly the
Middle
East.
technological
developments
in
the
Packaging
business.
The Joint Venture Agreement with Stora Enso OYJ Group, signed in 2012, was
implemented in 2013 and Packages completed the transfer of assets and
related obligations of Paper & Paperboard and Corrugated business
operations to Bulleh Shah Packaging (Private) Limited along with cash equity
injection. Packages now holds 65% equity in Bulleh Shah Packaging (Private)
Limited. The joint venture partner, StoraEnso OYJ Group, is actively involved
in providing technical expertise to further enhance the Paper &Paperboard
and Corrugated business operations.
CORPORATE STRUCTURE
Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.
Packages Lanka is a joint venture between Packages Limited and the Print
Care Group of Sri Lanka, and DIC Pakistan a joint venture between Packages
Limited and Dainippon Ink and Chemicals, Inc. of Japan.
10
ORGANOGRAM
11
Commercial Manag
Marketing Manager
Store Manager
I.R Manager
12
13
VISION
Position ourselves to be a regional player of quality packaging and consumer
products. Improve on contemporary measures including cost, quality,
service, speed of delivery and mobilization. Keep investing in technology,
systems and human resource to effectively meet the challenges every new
dawn brings. Develop relationships with all our stakeholders based on
sustainable cooperation, upholding ethical values, which the shareholders,
management and employees represent and continuously strive for.
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MISSION STATEMENT
to
set
even
higher
standards
for
our
products.
growth,
rewards
initiative
and
performance.
fair
returns
to
its
investors.
15
CORE VALUES
Good Governance
We are committed to running our business successfully and efficiently,
providing long-term benefits to our employees and shareholders, and
enriching the lives of those whom we serve by fulfilling our corporate
responsibility to the best of our ability. We expect excellence from all
processes, whether they relate to policy formation and accounting
procedures or product development and customer service.
Work Environment
We are committed to running our business successfully and efficiently,
providing long-term benefits to our employees and shareholders, and
enriching the lives of those whom we serve by fulfilling our corporate
responsibility to the best of our ability. We expect excellence from all
processes, whether they relate to policy formation and accounting
procedures or product development and customer service.
Good Governance
Our policies and core values are aimed towards creating an informal yet
stimulating team-oriented work environment with a culture of sharing and
open communication. We cherish the diversity of viewpoint of every
individual; we realizes this encourages innovation and develops character. All
employees have the right to a stress and injury free work environment. We
ensure our employee health and safety by providing various in-house
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facilities such as a gym and making sure that all staff understand and uphold
our safety policy.
All our employees are permitted and encouraged to afford time and attention
to personal concerns.
Our People
The success of any organization is largely dependent on the people working
for it. Each member of our team is considered equally important and
provided constant training, motivation and guidance. We possess a
dedicated staff of the highest caliber committed to making our business a
success. We ensure that every employee has the opportunity for maximum
professional development. To achieve this goal, we seek to provide
challenging work prospects for all employees. Each person is compensated
and rewarded for his or her performance and hard work on a strict merit
basis.
Conservation
We expect and encourage our employees to actively participate in
community service and to take care of the environment entrusted to us as
citizens sharing the earth resources.
Customer Satisfaction
We are customer-driven; we go the extra mile to make sure our clients
expectations are met and exceeded on every issue. We partner with leading
companies to arm ourselves with the latest technology and provide
customers with innovative solutions in the most cost-effective manner
available.
Ethical behavior
We make it clear that being a sincere, honest and decent human being takes
precedence over everything else. In the Packages family, there is an allround respect for elders, tolerance for equals and affection for youngsters.
Managers are expected to lead from the front, train junior colleagues through
delegation, resolve conflicts quickly, be visible at all times and act as role
models for others.
WHISTLEBLOWING POLICY
We are committed to high standards of ethical, moral and legal business
conduct. In line with our commitment to open communication, this policy
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Our people are our greatest asset. We seek and retain people who feel there
is no compromising on excellence, and a corporate culture in which our
family can grow and thrive. Heading our multi-talented team is our
leadership of experienced senior management. Together, we know how to
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EXECUTIVE COMMITTEE
COMPANY SECRETARY
Adi J. Cawasji
AUDIT COMMITTEE
Muhammad Aurangzeb
19
20
BUSINESS ALLIANCES
One of the best ways for a business to leverage its products and increase
growth is through association. Our business alliances help us manage our
business more effectively, as well as helping us and our partners develop
and diversify our interests. Customers also benefit from the increased
knowledge base, as we transform our market awareness and shared
technology into innovative and cost effective solutions for customers.
Our community efforts reflect our corporate culture by building strength and
value through mutual assistance and good will.
Packages Mall
Packages Construction (Private) Limited is a wholly-owned subsidiary of the
Packages Limited. Packages Construction is undertaking the development of
enclosed high quality shopping mall with food court, cinemas and retail
outlets - Ground + 2 floors at the land available at Packages' site at Lahore.
The built up area is 1.2 million Sq. Ft. The design and layout of the mall is
22
Website: www.tripack.com.pk
TECHNICAL EXPERTISE
Computer-to-plate, laser cutting, creasing die making system and support
hardware was added and upgraded to maintain the competitive edge.
Another synergetic business that evolved and grew over the years is paper
cups both for drinking and ice cream. A full-fledged department in the
business unit equipped with European best cup making machines convert
our own food grade cardboard, polycoated in-house, printed and cut creased
into different shapes and sizes of paper cups. Another unique and
environment friendly activity of this department is 100% re-cycling of the
planned and process waste of board, i.e. the basic raw material.
Keeping up with the growing demand of specialized and high quality tobacco
packaging, two new roto gravure printing machines with cutting, creasing
and embossing facilities have been added. Both the offset and rotogravure
lines have an annual conversion board capacity of 30,000 tons. Business Unit
Folding Cartons with a strong back integration, state of the art hardware, and
in-house press facilities, dedicated, qualified and professional trained
manpower is geared to provide high volumes, consistent quality and value
addition at a competitive price.
INDUSTRIES
Food and Beverages
Soap / Detergent
Pharmaceuticals
Match
Electronics
Shoe
Tobacco
Paper Cup
26
TISSUE PRODUCTS
Facial Tissue
Tissue Roll
Kitchen Roll
Rose Petal Hi-jeen Hand Towel
Rose Petal Pocket Packs
Rose Petal Party Products
27
Wet Tissues
28
INCONTINENCE PRODUCTS
We Market TENA Adult Diapers locally under a licensed agreement with SCA,
Sweden. SCA is the worldwide leader in the management of incontinence.
Providing products and services for individuals and healthcare services in
over 100 countries. TENA Adult Diaper promises unmatched quality in the
areas of leakage protection, comfortable fit, outstanding dryness, excellent
retention and odor control.
INDUSTRIES
Agriculture
Textile
Food & Beverages
Paper & Board
Printing (Roto, Offset & Flexo)
Inks Oils & Chemicals
Leather & Sports
HVAC
Pharmaceutical
Packages Limited has been producing high quality paper and board since
1965 using environment friendly manufacturing processes. They specialize in
making a variety of duplex boards and paper. Their products are tested for
high performance in terms of strength, stiffness and gloss. From coffee cups
to books we read, from Tetra Pak juice containers to huge shipping
containers, paper and board products touch our lives in a thousand ways
every day.
Paper:
Board:
Soap
Tobacco
Tea
Food
Diary Ice-Cream
Milk powder
Confectionery
Shampoo
Pesticide
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Pharmaceutical
32
Hierarchy of IR Department
INDUSTRIAL
RELATIONSHIP
LAW
ESTABLISH
COMPENSATIO
INCENTIVE
TIME
MANAGEME
WELFARE
SALARY
WAGES
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Establishment Wing:
Mr. Abdul Gaffar ( Assistant Personnel Officer Establishment)
Mr. Waqas Khan ( Assistant Personnel Officer Establishment)
It is the important wing of the department and is performing important
functions. It keeps the records of the employees. It plays an important role
between the employee and management.
After test and interview file is passed to this section. Employee personal file
is kept by this section right from their hiring till end of their service.
The file is consisting of the test which employee gives for the job,
appointment letter, personal information, medical fitness report, copies of
educational documentation and joining letter. The file documents keep on
increasing and updating like transfers, allowances, termination, resignations,
increments and many more.
All the information of employee is entering into the system, the software
they are using is SAP than software allocates the employee number.
Identity cards are prepared for all the employees either permanent, contract
or temporary.
Internee card are also prepared by this section.
If an employee is absent for ten days or more than ten days without leave
then he is issued a letter of charge which follow in the different category
an absence report is delivered than a letter of charge so after that an inquiry
is conducted against that member after the result of that he may be
terminated or dismissed or a warning letter will be issued. The employee is
given the 4 warnings against its absent.
34
Incentive Wing:
Mr. Tariq Saeed (Personnel Officer)
Mr. Shafqat Ali (Establishment Assistant)
35
sending
to
their
Employees working on hourly are X1 and on salary are X2, X3, and X4.
X1
A, B, C, D (WORKERS)
P, P2, P3
X2
1 To 5 (WORKERS)
JE, JE1 (EXECTUIVES)
E, E1,E2,E3
X3
M
M1
M2
X4
M3
M4
GM, MD
TECHNICAL
TE, TE.1,TE.2,TE.3,TE.4,TE.5,
TE.6,TE.7,
PROCESS SPECIALIST
S1, S2, S3
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Temporary Workers:
Workers on hourly basis get their wages through a card that contains the
starting time of work and ending time. The work is noted through punching
machine. The total working hours of employees are calculated and payments
are made to them.
Monthly Staff:
A gate pass is issued to the employees if they go out of the factory for any
personal/official work. They submit the gate pass to gate office; than a gate
pass is sent to the time office so over there data is enter into the system. A
gate passes are set into three classes i.e. are short leaves, officials and
overtime. If the gate pass time exceeds 8 hours, a leave is deducted from
the employee record of that employee who is paid on monthly bases. On
daily basis gate passes are checked and enter in system.
Employees are given different types of leaves which have different codes, so
a code helps when the data is transferred to the system. Daily the data is
enter into the system, the section is using the SAP and Time Wizard
softwares. The following are the leaves which company is offering to their
employees.
Leaves
Annual leave
Casual leave
Medical leave
Special leave
Rest
Tour
Leave w/o pay
Social security leave
Absence
Medical leave full
Medical leave half
Special leave 25% Gross
Special leave 50% Gross
Code
0100
0200
0300
0400
0500
0600
0700
0800
0900
1000
1001
2000
2001
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2002
5000
When all three leaves (annual, casual and medical) of the employee will be
nil, if he want medical leave then he will be given the special leave 25%,
50% or 100%. If the employee who is on contract does not inform about his
leaves then he will be consider absent and his salary would be stopped. All
types of leaves are checked before running the salary of employee.
Clearance Certificate:
Is also issued by this section when the employee service is over, he got
terminated or he resigned and transfers to the accounts office after the
completion of procedure. Basically this document required the clearance of
dues or documents from following departments:
Welfare department
Fair price shop
Gate office
Telephone department
Store
Electrical
Workshop
Final Settlement:
It is also prepared by this section. When employee is retired from the job he
is paid the salary of next three months. All the allowance are also paid like
house rent, conveyance and many more except the telephone allowances.
The total numbers of annual leaves left are also paid to the employee by
calculating through this formula i.e.
Pay Slips:
Before transferring the salary to employee accounts pay slip is deliver to
each employee on which all the detail is mention that how much they have
earn and what are their deductions and the quota of leaves they utilized and
left are also mention.
For monthly workers no. of days they worked and for hourly workers no. of
hours they worked are mention.
The both section is performing different work on daily, weekly, monthly and
yearly basis.
Daily:
On daily basis they are performing the following work like:
Weekly:
Monthly:
Rest and tours of employee are checked.
Absent reports are sent.
Over time of employees are checked.
39
Yearly:
40
RESEARCH:
This section is directly responsible to the Production Manager about his research. In
Research, work is done with on the idea, experiment is divided into parts and on each
part attention is focused and conclusions or suggestions are given. Packages Limited
tries to get as many information and technology which is possible and beneficial to the
organization. All such information is collected for research. Some time they receive
reports of customers problems and complaints from Marketing Department and advice
to them through the same channels.
DEVELOPMENT:
Development is a continuous process in any organization. A lot of development is the
result of feasibility studies, study of new production methods and new products.
Packages Limited has a Paper & Board Mill, so it uses largest number of chemicals. The
Environment Protection Agency has some standards for reducing pollution. The R &D
and Control Department developed new way of reducing pollution and always tries to
meet EPA standards.
CONTROL:
Packages Limited R&D & Control Department divides term CONTROL into two areas:
Quality is synonymous with Packages limited. Every package made by Packages
Limited guarantees the use of quality materials and processing. This is all due to the
strict quality Control Standards, observed at every stage of the production, from raw
materials to dispatch Department. This department makes stringent requirements on
quality control, which help in working consistently towards attaining better results for
customers. To ensure constant quality and improvement this department managed by
qualified scientists. Quality Control section has satellite laboratory in every
department, which constantly monitor and report. There is on the spot checking and
corrective treatment is given to the operators. If the percentage of defective material
41
goes above the permissible limit, the supervisor and machine operator is given a
signal to take corrective action.
CONTINGENCY PLANNING
There is always a need for a backup plan in case of sudden changes in any factor. In
our visit to the factory of Packages limited we talked to the Logistics Manager, Finished
Goods and this is what we found out about the contingency planning in the logistics
department.
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LOGISTICS DEPARTMENT
Each department of Packages Limited operates under its own rules and regulations
and has control over the planning of their own departments. The logistics department
is basically responsible for transferring the goods from the factory to the customers. At
times the transportation is unavailable due to the drivers not being present or the
vehicle not in a position, in such cases the logistics have back up vehicles ready to
ensure that the products reach the customers on time.
ORGANIZING
The organizing of each department is done separately as each department is
responsible for their own unit. The division of work in Packages Limited is done by
allocating the right human and financial resources to the right department. Being an
organization of as high a stature, there are departments to cover all aspects of the
business. From production, planning, marketing to human resource departments as
well as Industrial Relations, Logistics, Legal and procurement. The specific design
elements of the formal structure of the organization chart depend upon the
departmental technology in Packages and vary from department to department.
ORGANIZATIONAL STRUCTURE
FORMALIZATION
Formalization is high in departments with routine technology like sales and production.
People carry out their specialized tasks that are governed by formal rules, whereas in
Research and development, strategic planning, and human resource and development
departments, structure is less formal. These departments have o perform activities
with a lot of variety so lesser number of formal procedure is followed.
STANDARDIZATION
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ISO 9000 certification also indicates that the manufacturing procedures adopted by
the organization are standardized. Initially due to the size of the operations, it was
decided to seek individual certifications for each product line, instead of
organization as a whole but by the year 2000, the whole organization was certified
under ISO9001.Packages was the 6th organization in Pakistan to have ISO
certification. To maintain the standardized quality, Packages, to the date has 57
Quality Improvement Teams (QIT) working in the various departments of the
company on the Japanese Principle of Continuous improvement, called Kaizen.
This edge of standardized procedures makes Packages leading Printing and
Packaging Company of Pakistan.
SPECIALIZATION
Each employee in Packages has specified task to perform. For these tasks, people in
each department are specialized and have to perform only the related activities.
For example a Production Engineer has to supervise people like Shift in charges and
lower staff supervisors and has to ensure efficient working of the machines.
Similarly all employees in other departments have to manage their own work and
allied activities. IT and Manufacturing departments of the organizations are epically
equipped with highly specialized personnel, hence ensuring quality management
and products. So it can be rightly said that the specialization in the organization is
extensive
CENTRALIZATION
The decision making in the organization is rested mostly with the manager of each
department. For corporate decisions, top management is involved. But for day to day
decisions, General Managers, Finance, Commercial executives, Technical mangers and
supervisory staff take decisions as per requirement and urgency. Hence the
concentration of power is at top and Middle management levels therefore a moderate
level of Centralization is there.
DECENTRALIZATION
The departments where work is in routine such as production and sales, decision
making authority lies with management. Whereas in Research and development,
human resource and development departments the power is delegated to employees
and decision making authority is granted to employees.
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SPAN OF CONTROL
Span of control also varies from department to department depending upon the
departmental technology, since in production departments span of control is wide and
HRD department span of control is very narrow.
LEADING
LEADERSHIP
The leadership of any organization reflects the smooth performance, increased sales
and overall success of the organization. If the leaders are compassionate about their
45
job and responsibilities to achieve the goals and objectives of the organization to the
best of their ability then their leadership is valued and appreciated.
LEADERSHIP STYLES
The styles of leadership in Packages limited can be observed from the various tiers of
leadership each department practices. The hierarchy of authority can shed some light
on the leadership styles practiced in numerous different departments.
HIERARCHY OF AUTHORITY
The hierarchy of the organization is somewhat tall but the Top Management is now
trying to reduce the tiers in the vertical structure. At present, there are several levels
in the hierarchy. Span of control in the organization varies from department to
department. It ranges from narrow to moderate. Accountability is transparent,
perpetual and both vertical and horizontal.
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Production
Manager
Production
Engineer
(3)
Planning
Engineer
(1)
Staff
Incharges
(4)
Supervisor
s (12)
Workers
(70)
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Manager
R&D
Incharge
Quality
Control
Incharge
Chemical
Lab
Incharge
Pulp Lab
Incharge
Rubber
Engineer
Lab
Technicians
Supervisor
Supervisor
Technician
Workers
Supervisor
Research
Engineer
R&D Cell
Lab
Assistants
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CONTROLLING
TYPES OF CONTROL
Each department of Packages Limited works under its own management and has its
own finances and management to control. The company uses the System Application
Procedure (SAP) system to organize, control and communicate within the department
and outside each department. This system software enables all of the departments to
coordinate with one another in a computerized system. All of the data about the
production, the orders, inventory, customers, logistics and all the details are entered
into the system. The managers and other personnel have their own system log in that
gives them the access to the information in the system. Each person has their own
level of clearance to the system depending upon the job requirement.
FEEDBACK CONTROL
There are two areas where Packages Limited adopts the feedback control in order to
better the management of their organization.
Customer Feedback
Staff Feedback
Customer Feedback
Packages Limited inquires about their products and services from their clients in order
to measure their satisfaction and to find out about any improvement required in their
management and efficiency. Most of the customer base of Packages limited has been
loyal for years and therefore quality is not something to compromise over. When each
new contract is entered or each delivery is made any issues faced by the customers
are informed to the subsequent department immediately to rectify the problem.
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Staff Feedback
Through the use of the System Application Procedure (SAP) system throughout
packages the managers can easily communicate and coordinate with one another and
the feedback of each department is recorded within the system. This way any changes
that need to be made can be acted upon accordingly.
FINANCIAL CONTROL
Financial control in any organization can be adopted by reviewing and analyzing the
financial statements of the organization. The cost, profits, expenses and revenues can
all be evaluated and kept under check with the help of financial statements and also
allocating the budget.
Budgets
In Packages, managers use budgets to plan for future and to reduce uncertainty about
the availability of human and material resources to perform departmental tasks. The
operating budgets are used to set the financial targets for a specific period for each
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department in Packages Limited. Managers also use budgets to allocate the resources
to each departments to perform and attain objectives and operating goals of the
organization.
DEPARTMENTS
In the company, there are various productions, service, support divisions and
their respective sub-departments, which are as follows:
Finance Department:
Packages Limited has established its own Finance Department on
professional basis. Packages Limited has different financial managers who
are responsible for the financial aspects of the Packages Limited. This
department plays a key role in organizations performance. Finance
department is responsible to maintains accounts of all departments within
the organization. For solving the complex and difficult problems
Marketing Department:
Like all other departments the Marketing Department of Packages Limited
shows a good performance. The marketing department plays a key role in
the operations of the organization. The marketing manager is responsible for
all the marketing operations in all three offices in Lahore, Karachi &
Islamabad. The marketing department of Packages Limited is responsible for
sale of industrial & consumer products. Packages Limited has divided into the
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three regions i.e., Lahore, Karachi & Islamabad. Each is assisted by the Area
Marketing Manager who is second in line of authority under the Marketing
Manager. Each region is responsible for the sale of its area. All area
marketing managers are assisted by a team consisting of Regional Sales
Manager, Senior Sales Officers, Sales officers and sales supervisor. There are
two Regional Sales Managers under the area marketing manager. Then there
are senior sales officers and sales officers. The Deputy General Manager who
is among the Board of Directors of Packages Limited is often consulted by the
Marketing Manager for important managerial decisions concerning Marketing
Department. The Area Manager advice is especially taken while developing,
launching and pricing of new products or amending the prices of existing
products and so on.
Production Department:
The role of production department in a manufacturing concern is very
important. In Packages the production department is also an important one.
The goods for the customers are manufactured according to the desired
standards in this department. This department is responsible to plan and
organize the allocation of jobs to various machines in a waythat their
maximum capacity is utilized and that the delivery is given to the customer
by stipulated date. The head of the production department is the production
manager. The planning department also assists the department. The working
procedures are based on week basis i.e. the total no of weeks in a year. The
Production Manager looks after the production while the Planning Manager
supervises the planning section.
Planning Department:
We know that if we want to increase our efficiency, we should plan with
excellence. Planning department is one of the most important departments
in an organization. Its main functions are to plan huge operations. In
Packages the planning department is also playing an important role. The
Planning Manager controls the department. The two main functions of the
Planning Department are following:
Link between marketing dept. And production dept.
Optimizing the available capacity
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Art Department:
Packages limited have an art department in which qualified, efficient and
talented artists and designers are working. The artists and designers in the
department are very creative and for most of the time are involved in
designing the new packages. Art department gives attention to the advice of
the marketing and of the customer.
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Lamination Department:
This department has two machines which laminates the paper on single side
or double side. This lamination process is started after printing, as the
customer requirements.
54
Dispatch Department:
This department dispatches the goods produced by Production Department
to the respective clients. The motivation of this departments workers is
enhanced due to the incentive scheme.
Technical Department:
This department is responsible for the repair and maintenance of machines
and construction of building and roads in the factory. There are 130
employees in this department. It works in two shifts. In case of emergency
third shift is carried out. It provides the necessary spare parts and machinery
to different departments. Technical Department is responsible for making
tools and spare parts. Some time it works for other industries. It normally
accepts the orders of Roll Grinders. These orders are accepted only on cash
basis.
Camera Department:
Camera Department is to color separation from the mechanical by using
cameras. Earlier this whole process was done by manually but recently
Packages Limited ha bought a sophisticated fully computerized color
scanner. Then with the help of scanners and manually, it is found out that
how much quantity of each color is required in the design. The
department has increased its efficiency and quality of films. In the Camera
Section, there are four colors use to get the negatives: Magenta, Yellow,
Cyan, and Black. The number of negatives is subject to the number of
colors used.
Corrugated Department:
For large scale packaging, Packages Limited has been manufacturing
Corrugated Carton since 1971. These cartons produced in different sizes,
are used for transporting consumer products from manufacturer to retail
outlets. The share of Corrugated Department in Packages Limited total sales
is almost 20%, which is second after the Off-set department. Corrugated
cartons are of great value for the export of fresh fruits, garments and shoes a
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wide variety of gum tapes for sealing corrugated cartons are also
manufactured
Medical Unit:
Packages Dispensary, 23-Gulber-III, Lahore
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Adult education classes are held regularly for the workers' benefit.
LOCAL ASSOCIATION
Packages has entered into partnerships with both local and foreign training
institutions.
Packages makes full use of training facilities provided by reputed local
institutions such as LUMS (Lahore University of Management Sciences),
Pakistan Institute of Management (PIM), and Management Association of
Pakistan (MAP). Recently, Packages entered into a learning partnership with
LUMS and jointly developed a unique in-house training program called
Diploma in Business Management (DBM). The program comprises 13
modules on traditional management such as HR, production, finance, and
contemporary trends such as customer service, and lasts from 15 to 18
months. This program represents the first partnership of its kind in Pakistan
between an educational institution and a business enterprise.
These training opportunities also send an important message to all aspirants
in the company - that personal growth is only possible through professional
development.
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Your job is an important part of your life, and to do it well, you need an
appropriate environment for your mind as well as your body. We like to make
sure that you do: our corporate culture emphasizes people, and the need to
satisfy their potential.
The attractiveness of any company's corporate environment can be gauged
by the employees it hires and retains. An impressive 42% of our employees
have been with us for more than 10 years, and almost 26% for more than 20.
This is just one of the reasons why you would consider Packages as a
prospective employer.
Another is the technical excellence of our employees. 33% of our employees
working as technical personnel have a bachelors or advanced degree. We
take pride in the diversity of our staff, with chartered accountants, MBAs,
engineers and even qualified lawyers on board.
For us, the resources running Packages are not the machines, but the people.
We do not seek employees. We seek people who will think, feel, express
themselves, learn, teach, and grow with us. Their growth is the company's
growth. That's how personal it is, for us. We have designed an impressive
range of facilities and services to free our people from worries and allow
them personal and professional freedom. These are just a few of the benefits
we provide for employee welfare:
Bonus - A cash bonus is paid annually to all employees.
Conveyance Allowance - This is also paid to all employees.
Employees are also offered the option of buying vehicles at reduced
prices.
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Although the fact that trainee engineers' leaving frequently was not
highlighted by the company itself, but I got lucky to observe the
department's working for a few hours and get a better know how about the
working condition of the department. While interviewing the Flexible Unit
employees I discovered that it's not the labor class which is into leave the
company that frequently but the Engineers who are leaving rapidly.
On knowing this fact, I conducted several interviews with the present trainee
engineers and held telephonic conversation with trainees who left the
company in the past one year and gathered useful information to form the
basis of my research which will be discussed later in the study.
reference for further study in research. Secondly with time and further
research in study, we might bring in new innovative schemes that can
resolve turnover problem in companies. Moreover this research will be based
on various other worldwide researches carried out on employee turnover
problem, so it will also sum up those researches.
Literature Review:
The issue of employee turnover all over the world has been widely discussed
in the empirical literature. Researchers have reported various reasons for
why employees leave an organization. This section summarizes some of the
research studies that have been done on employee turnover and is arranged
in an ascending order according to the year it was done in.
Employee turnover is a much studied research topic. There is a vast amount
of literature available on the causes of employee turnover dating back to the
industrial revolution. Researchers have developed multivariate models to
study various factors contributing to it and have empirically tested them to
find out the major reasons behind it. Price (1977) in his research defined
turnover as the cessation of membership in an organization by an individual
and their movement out of an organization.
Allen & Meyer (1990) investigated the nature of the link between turnover
and the three components of attitudinal commitment: affective commitment
refers to employees' emotional attachment to, identification with and
involvement in the organization; continuance commitment refers to
commitment base on costs that employees associate with leaving the
organization; and normative commitment refers to employees' feelings of
obligation to remain with the organization. Put simply, employees with strong
affective commitment stay with an organization because they want, those
with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to.
Allen and Meyer's study indicated that all three components of commitment
were a negative indicator of turnover. In general, most research has found
affective commitment to be the most decisive variable linked to turnover.
Griffeth (2000) re-examined various personal characteristics that may be
linked to turnover. They concluded that there were no differences between
the quit rates of men and women. They also cited evidence that gender
moderates the age-turnover relationship (i.e. women are more likely to
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remain in their job the older they get, than do men). They also found no link
between intelligence and turnover, and none between race and turnover.
Hence there is little evidence of a person's gender being linked to turnover.
Griffeth also noted that noted pay and pay-related variables have a modest
effect on turnover. Their analysis also included studies that examined the
relationship between pay, a person's performance and turnover. They
concluded that when high performers are insufficiently rewarded, they leave.
Tang T. L. P., Kim J. W. & Tang D. S. H (2000), examined the relationship
between attitudes towards money, intrinsic job satisfaction and voluntary
turnover. One of the main findings of this study is that voluntary turnover is
high among employees who value money (high money ethic endorsement),
regardless of their intrinsic job satisfaction. However, those who do not value
money highly but who have also have low intrinsic job satisfaction tended to
have the lowest actual turnover. Furthermore, employees with high intrinsic
job satisfaction and who put a low value on money also had significantly
higher turnover than this second group. The researchers also found that
placing a high value of money predicted actual turnover but that withdrawal
cognitions (i.e. thinking about leaving) did not.
Elangovan (2001) examined that the notion of job satisfaction and
organizational commitment being causally related has not been incorporated
in most turnover models. His study indicated there were strong causal links
between stress and satisfaction (higher stress leads to lower satisfaction)
and between satisfaction and commitment (lower satisfaction leads to lower
commitment). He further noted a reciprocal relationship between
commitment and turnover intentions (lower commitment leads to greater
intentions to quit, which in turn further lowers commitment). In summary,
only commitment directly affected turnover intentions.
Abdul Rahman, S. M. M. Raza Naqvi and M. Ismail Ramay (2008) studied the
issue of turnover in IT firms of Pakistan in detail because they have seen a
high turnover during the past few years. The study revolves around three
variables including job satisfaction, organizational commitment and
perceived alternative opportunities. The study revealed that both job
satisfaction and organizational commitment had negative effect on turnover,
whereas perceived alternative job opportunities had a positive correlation
with intention of turnover. The study suggested that managers need to
increase job satisfaction to increase loyalty of the employees with the firm.
Martin C. (2003) in his paper "'Explaining labor turnover: Empirical evidence
from UK establishments", detected a complex relationship between turnover
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Research Question:
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Sub Questions:
Are there any internal factors related to this high attrition level?
Is the attrition prevailing because of low monetary benefits?
Is the turnover increasing because of the work environment of this
department?
Will fringe benefits play any role to reduce the level of turnover?
What are the employee's expectations with the job in this department and
how they can be fulfilled so the turnover can be reduced?
Research Methodology:
To get the answers for my research questions, this is how I went about the
research:
Firstly, I collected data from the internet regarding the employee turnover
issues all around the world, this helped me forming the background of the
research and I came to know about various reasons why employees leave an
organization. I read various articles and researches done by various authors
to get an idea about the reasons that have been identified till now by the
researches on this very important issue. Secondary data was collected from
various websites including Jstore and various other online research resources
that will appear in the references at the end.
The literature review helped me in gathering all such causes but at the same
time I never remained stuck to them, I was always aware of the fact that
there can be more to it, perhaps there might be some issues which were
never previously addressed that can emerge in my research.
Then I had an in-depth interview with the HR Assistant Manager Miss Fatima
Mehmood to identify what she feels about this problem. From there I
collected some factual information and got an idea about issues prevailing in
the department. Even though she was not so sure about the reasons behind
the turnover issue but was concerned over this issue.
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Then I carried out a focus group with 3 trainees and 3 engineers to get an
open idea about their problems and got a better know-how about why their
colleagues left the organization. I also conducted telephonic interviews with
some of the engineers who recently left the department.
Sample Size: From these unstructured interviews, I made a structured
questionnaire entailing various questions about the work related issues,
monetary benefits, motivation, job satisfaction etc. I floated the
questionnaire to all the trainees, engineers and the managers of the Flexible
business unit and got it filled by 30 respondents in total.
From the filled questionnaire I tabulated the data and analyzed the research
results and came up with various interesting findings which will be of great
interest to the company in general and the HR department in particular.
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Intention to stay
Care for Employees rights
Exposure of other departments
Fringe Benefits
Health and Safety at work
Intention to leave:
Overload of work
Late sittings
No time management
No technical work for engineers
No application of the studied degree
Low salary
Calls from office even after going home
Stuck in packaging field
(Source: Focus Group with 6 Engineers of Flexible Business Unit at Packages
Limited)
Independent Variables:
Pay Satisfaction
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Work Load
Fringe benefits
Outside Career Opportunity
Job satisfaction
Dependent Variable:
Intention to leave
Analysis:
This question was particularly investigates if all the employees of flexible department
were there from the start or has there been rotation amongst them. It revealed that
Flexible business unit has more freshies in it as 67 percent of respondents fell under the
category of less than 1 year, which means a few of them are recently shifted to the flex
department, hence more trainees in this department. Again none of respondent fell in
the category of 7 or more than 7 years working, and a very small 30 percent above 1
year.
Analysis:
This question produced a mixed response, but the weight fell towards the positive side.
It indicated that respondents are satisfied working at Packages limited. Although 26
percent fell in the negative category but majority were satisfied working at Packages
Limited, which can be taken as a positive sign for the company as a whole.
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Analysis:
The result to this question further clarified the issue, a heavy majority responded that
they are not satisfied working at Flexible Business Unit, now this can be a cause of
concern, where at one point majority indicated that they are satisfied working at
packages limited, on the other hand the majority was dissatisfied working at flexible
business unit of the same company, which indicates that something is certainly wrong
with the department's working.
Analysis:
When asked about the monetary benefits importance, that 87% considered it either
very important or important and only 13% considered it somewhat important but none
of the respondent went for not important or not at all important. This can be very
beneficial for the HR department as they can motivate the employees with monetary
benefits which are considered important by them.
Analysis:
When questioned on non-monetary benefits, it produced a mixed result. But again the
majority 58% fell under the band from very important to somewhat important, whereas
42% didn't consider it important. This indicates that while choosing between monetary
benefits and fringe benefits, the company should give more weight to monetary
benefits.
Analysis:
After getting a clasp of the weights attached with monetary and fringe benefits, the
respondents were questioned ons the level of satisfaction with the monetary benefits of
their current job which produced interesting results. Although majority of the
respondents attached a high weight to monetary benefits but the level of satisfaction
with the monetary benefits of Flexible business unit is low, as 60% were either
dissatisfied or very dissatisfied with the monetary benefits. This is a major cause of
concern when respondents attach a high weightage with monetary benefits.
Analysis:
When questioned about the fringe benefits of Flexible business unit, the percentage of
dissatisfaction was lower than that of monetary benefits, but still the weight age fell
towards dissatisfaction. 60% were not satisfied or not at all satisfied with the nonmonetary benefits. But this might not be a major problem as importance attached to
fringe benefits by the respondents is low.
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Analysis:
When asked about the workload at Flexible unit of Packages 87% of the respondents
considered it as a heavy workload. This can also be referred to the focus group findings
where the respondents complained about late sittings and remaining in touch with office
work even after office time. This issue certainly needs attention of the HR department
as well as the management of flex department.
Analysis:
This question was asked to judge upon the job satisfaction associated with the
respondents current job at flexible business unit, the results showed that 75% of the
respondents disagree or strongly disagree with the statement which means the job is
not up to their expectation and they are also not satisfied with their current job.
Throughout the business education, we study the importance of job satisfaction, if it's
low then the motivation will also be low and employees are likely to leave, so the issue
of job satisfaction should be addressed immediately.
Analysis:
This question was asked to measure the 'Intention to leave' of the employee which
showed positive results, majority of the respondents have an intention to leave as 86%
of respondents agree to the statement that they think about quitting their job and only
14% disagree to the statement, which is a dangerous sign for the department and the
company as a whole.
Analysis:
When asked about opportunity of finding a better job, the response was
mixed, 40% considered it likely to find a job and 60% considered it not likely,
which means a heavy percentage fell towards the 'Not Likely' category. This
can be attributed to two factors, either to the economic conditions of
Pakistan and referring to the focus group where respondents said 'Stuck in
packaging field' whereas Packages is the largest packaging company in
Pakistan, so they might not be able to find a better job than the current job.
Analysis:
100% of the respondents were males. And 93% fall in the age bracket of 2130, which means a very high percentage is youth, who have an urge to earn
more and more, hence if not loyal and satisfied with their job, they are likely
to leave. Hence corrective actions are instantly required.
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Although as much as 60% are dissatisfied with the fringe benefits, but the
importance attached to the fringe benefits is less compared to that of
monetary benefits so the company should also give more weight to
monetary benefits as 42% respondents didn't consider it important.
A majority of the respondents i.e. 60% took a negative view regarding an
outside career opportunity, which means they are pessimistic in finding a
better job but at the same time they are not very satisfied with their current
job, not only that the company has to think about these 60% but more
importantly they have to think about the remaining 40% who are of the view
that they can find a better job in the time to come.
My research also supported and negated various studies done on this topic
before, for instance it supported the study done by Naresh Khatri (1999)
which concluded that employee turnover is prevalent more due to poor
management than bad attitude of employees, this was very much seen in
the case of Flexible business unit of Packages Limited.
It supported Elangovan (2001) research who found out that there are strong
causal links between stress and satisfaction, so was the case in Flexible
business unit where heavy workload was leading to lower job satisfaction
and high intention to leave.
My study also supported Tang & Kim's (2000) research as they investigated
that voluntary turnover is high among employees who value money
regardless of their intrinsic job satisfaction, employees at Packages also
valued money and were dissatisfied because of lower monetary benefits
offered by the company.
It the same time my research negated Change E. (1999) study which proved
that role of career commitment was stronger in predicting turnover and when
individuals are committed to an organization they are less willing to leave,
but in case of Packages where although employees were satisfied working
with the company but not satisfied working in a particular department i.e.
flexible business unit, hence my study doesn't support his findings.
My research also negated Meenakshi Gupta (2000) research results which
showed that turnover perception and outside career opportunity were major
independent factors responsible for intention to stay in a company, but this
was not the case in Packages, as respondents didn't consider outside career
opportunity as a major factor behind their intention to leave the department.
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To sum it up, all this explains that a very important element of the company
i.e. the Human Capital, which can be considered as the major strength of
Packages Limited is not very much satisfied with their jobs at Flexible
Business Unit, it presents an alarming situation as the loss might seem little
at present but can turn out to be a major disaster if the department keeps on
loosing employees at this pace.
RECOMMENDATIONS:
During my internship in your reputed organization I observed that following
changes may be lead your department to the better internal environment
Having analyzed the policies and procedures, I inferred some
recommendations which are as following:
First of all, the human resource management has not assumed its
mature shape in true sense of the word. The activities are limited only
to payroll and record keeping. While HRD department has limited roles
and responsibilities which should be enhanced.
Career ladder for each employee should be well defined.
Steps should be taken to improve the network system which gets too
slow due to uneven networking. Server gets more strikes at one time
which create hindrances in the smooth work flow of organization.
Training need assessment methods should be applied for the accuracy
and precision of such a large workforce.
Provision of computer to each person working in incentive and
establishment sections.
Proper filing and storing cabinets for incentive section.
Detention of payment for one week in case leaves are not sent in time.
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